Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-09-12
LAST HEARING ON
qlcE|NT GAS RATE
Operations Of companis
dicate Shortage for Past Two
Years, Commission Is Told.

Indefinite continuation Of the pres-
emit 95-cent gas rate in the District
was urged upon the Public. Utilities
Commission at public hearing today
by the Washington and Georgetown
gas light companies. .. y, ;. ;
The rate automatically returns to
30 cents september 20. unless other
wise ordered by the commission Testi4
mony today showed that even with
the 95-cent rate the companies are
earning but S per cent on their val
uations as established by the utilities
board. ~
Attorney Benjamin 8. Minor, for the
companies, stated that their earnings. for
the year will be short more than 500. 600
OF producing per cent return. For
the past two years earnings. he said.
cent return by about $225.o00.
II the figures presented at the hear
ing are substantiated by the commits
sion's experts, who will examine. the
companies books, there 10 little doubt
tits Indicated. that s6 cents will con-
tinue, for the present at least as the
charge for gas in the District.
The commission expects to dispose
Of the case in the next few days.
This will be comparatively easy. rs
it has checked up from Month to
month figures submitted by the gas
concerns as to their operations.
Today's hearing apparently attract
ed little public attention. but one pro-
test against granting 5of the petition
being presented. This was from the
Columbia Heights Citizins' Association.
Former District Commissioner
Oliver p. Newman sat with the COM
mission for few minutes during the
proceedings. CorDoration Counsel Con-
rad H. Syme appeared for the COM
mission. Howard S. Reeside. president
of the Washington Gas Light Com
pany, was present. as were other ofn-
Gals Robert o. LuQueer. the COM
pany's expert. was the principal wit
Mr. Minor stated that. while the
company sought to have the 95-cent
rate continued without interruption,
it desired also. that the commission
should give consideration at TINS time
to the establishing Of permanent
It was indicated this should be not
less than z per cent, which the COM
mission already has ruled is a fair
rate of return allowed corporations
furnishing electric service. 1880
The War Cost Item.
The attorney for the gas companies
pointed out that they have been
struggling along under an insuffici-
ent rate of return and doing 1T cheer
! fully because the commission held
that they should divide with the pub
| lie the abnormal costs produced by
war conditions.
But conditions which appeared to
be abnormal two years ago are nor
NAL today he continued, and there is
no prospect that costs,-particularly
labor costs-will come down In many
years, If at all.
The time has come. he urged, when
the companies must be given fair
rate of return that will enable them
| to function properly. Financing will
become necessary in the near future,
he said, but money for improvements
| cannot be borrowed at and 8 Der
cent il the companies are earning but
6 per cent.
It was estimated by Mr.. Minor that
| II the old ninety-cent rate should be
restored September 20. the rate Of re-
turn the companies would receive for
| the year would be about ~ per cent.
He called attention to the fact that
with the ending of the war the COM
panies are losing an annual income Of
about $4,000 from the sale of tolurol,
a by-product, to the government.
He also emphasized the injustice
of the fedral and District governments
paying but 10 cents a thousand cubic
| feet for gas, when private consumers
are required to pay 95 cents.
Mr.. Minor said the cost Of labor,
materials and coal has advanced since
| the ninety-dve-cent rate went into Of.
feet, and that tbs companies have not
earned under this rats what the COM
mission estimated they would