Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-26
GAS C0MPANY ASKS
CONTINUED RATE0F
$l.25A THOUSAND
Attorney Says Increase Is
Needed to Insure s Per
Cent Return.

Continuation of the present rate of
s1.25 per thousand cubic feet for gas
in Washington, which expires at the
end of this month. was requested by
the Washington Gas Light Company
today through Attorney B. S. Minor,
at a public hearing in the District
building. g..ss-...s d. !, .,..sgs.. d, /,
In presenting the case. Mr.. Minor
pointed out that il per cent return
on the investment of the company was
to be allowed. an increase IN rate to-
s1.a2 should be made, starting on Sep
tember /, and that if the commission
deemed a return of per cent fair.
the rate should be raised to $1.35.
More Than s4,O0O.0 600 Needed.
During the past three months the
company's return has been $1.o50.000.
he declared. More than 100000 is
needed for the balance Of the year to
bring the amount of return to the s
per cent figure of $5,939,000, he. said.
More than five million dollars would
be needed for Z per cent return, it
was said.
During the concluding stages of his
argument Mr.. Minor declared that the
company was of the opinion that at the
present time s. per cent return was
rather low and that Z per cent re-
turn seemed reasonable. But, he
pointed out, continuation of even the
| present rate would not make the re-
| turn of the company reach the s per
cent figure.
| He also asked that the commission
set definite and permanent figure
| for the rate of return, instead of
announcing at what rate rulings were
based each individual time they were
issued. He declared that this would
facilitate the company in preparing
| its figures for presentation to the
the company know where it stood"
! in the matter. e. -.
Urges : Per Cent Return.
| After mentioning. the necessity for
an adequate rate of return, he an
! nounced that to place securities on
the market successfully a rate of
return must he fixed which was as
market. To, do this he said. per
cent rate of return would be looked
| upon as fair by the company.
William NICK Clayton. representing
| the Federation of Citizens Associa-
tions. asked whether the, company
had any stocks or bonds to float. Mr..
| Minor replied: NO, and we could
not il We did, -''E -
President Howard S. 5Reeside of the
company interrupted with the state
| AuCAt tAdl IHC company Will nave 10
| sell securities in the7next six months"
| Got to get some money ito keep
running" added Mr.. Minor. - -.
Estimates on the additional cost of
manufacturing gas were presented in
| tabulated form. prepared by Robert
Luqueer. 1t was pointed out that
! the increased cost Of coal stnce June
had amounted to $4,000 alone.
Could Abroeate Contraets.i-
! Mr.. Minor declared that the con-
! tracts for coal which the company
| held at the. present time could vir-
account of the incorporation of
clauses which declare that the con-
! tract will be fulfilled dependent upon
! the dealer obtaining the coal
! The estimates on the increases on
all lines were declared. to have been
sible, and the presence of any error in
| the preparation would fall to the
benefit of the public, it was stated!
In concluding his opening argument,
Mr.. Minor said:
1--WE will go deeper in the hole on
| account of the increased cost of coal.
Where we had 5000 tons shipped to
us this year. last year we had $4,000
tons.
essary to continue the present rate
and figures show that to make the z
! per cent return on our capital rate
Of $1s5 for the following nine
months must be allowed.
! ''It will be at least necessary to sell
gas for the nine. months following at
s1.32 to secure enough to pay only s
per cent on our investment"
Proposes Ten-Year Survey.
| Mr.. Clayton presented two general
principles for the consideration of the
commission. The first was that before
deciding on the proposition of an in
ian, In, Nslfn fh4
mission should take into consideration
the returns made. not in the past year
or in any one year. but on the average
for a number Of ears past. A survey
of ten years was opposed. before decid-
ing on the rate.
The second proposition was that it
should be shown that rates in this city
should be comparable with those for
the same public utility in other COM
parable cities. He declared that the
company in this city should serve the
public with profit both. to itself and to
lCnntjnuk1 on PAGE g, Col1uRsA