Evening star., 1919-03-08
HIGHER GASRATE
DEEMED CERTAIN
Utilities Board Takes Into
Account Percentage of Com
pany's Earnings Last Year.
EXPECT EARLY DECISION

That authority Will be given the
Washington Gas Light Company by
the District Public Utilities Commits
sion to increase the s9-cent gas rate,
in effect in the District, appeared all
but certain today
This conclusion is based on the fact
that the commission has verified the
company's claims that it earned last
year only asa per cent on the valua-
ton established for II by the commits
sion; that there is no prospect OF a re-
duction in the cost of wages or ma
terials entering into the cost of manu-
facture of gas, and that representa-
tives of the public appearing at yes
terdays hearing did not contest the
accuracy of the companys financial
staten ent as submitted to the copmis-
sion.
It is indicated that the commissions s
decision will be rendered in A few
days. Already the commission has
waited three months since the filing of
the rate application to determine
whether there was any prospect OF
wages or materials recording a re-
duction in price this year. Testimony
at yesterdays hearing indicated that
the cost of manufacturing gas rs IN
creasing.
Earnings on $4,000, 900 Valuation
fact that the conpany's earning of
4s4 per cent last year was on the
commissions valuation of $10,000.teo,
and not it's own valuation OF sI4,oee,-
coo. The commission Topped of $4,000
900 of the amount the corporation
it's property.
The suggestion of the bureau of
standards that investigation be made
of the desirability of changing the
con1pany's gas-manufacturing process
is a matter for future consideration,
it is indicated. The question at pres
ent is one of imm ediate relief for the
company. 1t would take several years
a system for the water-gas process
in use here. But the possible ultimate
economies in taking such a step Will
be considered by the commission in
the near future. it is understood:
Statements made at yesterdays
hearing revealed the fact that gas is
now sold in Richmond, Va, for 81 a
thousand cubic feet. At recent
meeting of the Federation of Citi-
zens' Associations when the gas mat
was made that the Richmond gas rate
was only 80 cents a thousand cubic
feet.
William Nick. Clayton. the only citi-
the afternoon session of the hearing
yesterday, clashed with the commits
sion when he accused it of having
been dilatory.
Mr.. Brownlow Takes Exceptions.
Mr.. Clayton said that since the
commission has been in existence
citizens here have seen prices for
utility service constantly advance.
Commissioner Brown1ow wanted to
know if Mr.. Clayton blamed the COM
mission for the ultimatum served by
Austria Hungary upon Serbia in
1914, which started the world war
and prices generally on a skyrocket
tour.
Chairman Kutz asked sharply IL Mr..
Clayton meant TO infer that the com
ings with the public. The fedora
tion representative denied any such
imputaticn, but said the commission
had been dilatory in its methods
Chairman Kutz then told Mr.. Clay
ton that if he wished to make any
TCHdE ne WpUiu nave TO
confine them to the case under con-
sideration.
Mr.. Clayton analyzed statements
carried in the company's report to
Congress. He said that if the present
9o-cent rate had been in effect all last
year it would have given the COM
pany surplus of s407,12o instead of
s251,196. the amount reported as sur
plus after operating expenses and
fixed charges had been met, but he
fore the payment of dividends.
Suggests an Addition.
To this amount Mr.. Clayton would
have added the sum of s333,67S.S2.
mentioned in the company's report as
having been paid out of earnings for
extensions and betterments. Mr.. Clay
ton thought extensions and better
ments should have been taken care of
by a bond issue. If this had been
done, he said. and the 90-cent rate
had been in effect the entire year: the
company's earnings. he claimed,
would have been s740,793, sufficient bs
more than 100000 to meet it's divi-
dendS.
Chairman Kutz told Mr.. CLAYTON
that an analysis made of the COM
pany's books by the commissions own
experts showed that its actual earn
ings last year amounted to but 4S4
per cent of the valuation which the
commission has established on the
companys property.