Evening star., 1919-08-30
Six Per Cent Deemed Fair.

The commission also was of the
opinion that the burdens imposed by
the war should be divided by the
utility and the consumer, and that
until normal conditions are restored,
gas rates which wou}0r yield a return
,of per cent on the fair value of the
property would be reasonable and in
no sense confscatory.
As a year has nearly passed since
the signing of the armistice and de-
mobilization about completed states
the petition filed today, "the COM
pany feels that it is now entitled to
have fixed a reasonable rate of re-
turn on the fair value of it's prop
erty.
The private consumer expects and
has the right to require adequate and
satisfactory service for the commodity
furnished by the company; and in
plants received, the company feels
justified in stating that the service
now furnished to the consumer is
satisfactory. In order to continue the
lowed rate of return on the fair
value of it's property that will provide
it with revenues sufficient to meet its
bills with promptness. to pay interest
on its bonded and other Indebtedness.
and to pay reasonable dividends to it's
shareholders"
1919 Earnings Estimated.
Attached to the petition is an ex-
hibit showing the total estimated net
year 1919 to be $54O,221.S IS Ton the as
sumption that the present 95-cent
rate will be continued through the
year,. This amount, it is stated. is
finding of fair value on the two COM
panies, amounting TO sl0,162.000.
which does not include any amount
for the increased value of materials
and supplies and working capital
The exhibit also shows that if the
rate should be automatically reduced
to 80 cents a thousand cubic feet. the
rate of return on the fair value of the
companies would be but 4.52 per cent.
In fact, it is contended. had a rate of
81 per thousand cubic feet of gas been
fixed by the commission. effective
with the month of April last, when
the 95-cent rate was established. the
estimated net earnings for the year
turn on the fair value of the proper
ties.
Cost of Gas Goes UP, Is Claim.
At the outset in its petition the
company states that the cost of gas
at the burner for the seven months
en6ing July 81. 1919. was 1918 cents
or approximately 10 cents more per
thousand cubic feet than for the cor
responding period of 1918. Concern
ing the quantity or gas SOLD, the petl-
tion continues:
The total sales for the seven
months were 2.39S. .640.55T cubic feet
which is an increase over 1918 sales
of 1.96 per cent: the sales to George
town by Washington have, however
been considerable greater this year
than last year, and, if eliminated. the
Washington sales show an increase Of
only .22 of / per cent. or practically
the same as last year.
..Ea1aS nriVatH nnl lv
that is, gas sold at 80 cents and 81
cents. show a loss Of a of per cent
as compared with the first sever
months of 1915
Reference is made by the company
TO the inequality and injustice of the
District and government rate of II
cents paid for gas used by them
which is less than the cost OF gas a.
the burner
Cites Cost Of Manufacture.
AS to the outlook concerning cos
of gas manufacture. the compan,
says:
THE gas company docs not antici
pate any decrease in the cost of labor
and there are no present indica ton.
looking to a reduction in the cost OF
coal and. in the opinion of the com
pany. the price IL is now paying fol
oil is about normal.
with reference to expenses fol
labor. the company has been able, II
various departments. to reduce thu
number OF men employed: but. on tn,
other hand. wages are higher nov
than they were at the time that tn,
S5-cent rate went into effect and de
mands are being made upon the com
pany for increase In wages, and fur
ther demands in this respect are an
Sicipated.
with reference to the cost of coal
this company In April made contract
with various anthracite coal com
panies for years supply of ceal
contracting In the neighborhoed O
10000 tons at price of about eSS
for the west station and $3.50 for tn
east station. The cost Of aHthracit
coal for the year 1919 and up L
April. 1920. win be In excess OF pre-
CONTINUED On Second Pass.)