Evening star., 1920-10-21
HENDR|CK REMAINS
0NUT|L|T|ES BOARD
TO HEAR GAS CASE
Testimony of Experts Before
Commission as Plea tor
Raise Ends.

announced at lH6
gas hearing at the District ou'u's
TODAY that he intends to sit as mem
her of the utilities commission IN oe-
Gliding the petition of the washington
and Georgetown Gas Light companies
for higher rates
Mr. Hendricks right to act in the
gas case on the ground that he neio
stock in the company was questioned
at the hearing Monday by william
Nick CLAYTON. attorney for the Fed
Grafton of Citizens Associations.
1t was brought out in the testimony
Monday that Mr.. Hendrick disposed OF
. SIS shares of gas stock at loss OIL
approximately 100000 before he took
rbe oath as a member of the comHis-
sion.
Issues a Statement.
when the hearing opened TINS morn
ing Commissioner Hendrick mace 'h's
statement:
Ar the hearing on October IS coun.'
sci for the Federation OF Citizens
Associations of the District OF Colum-
hia expressed the opinion that even
though I had complied with every
statutory requirement., l should not
participate in the findings in this case.
I'm accepting appointment as
member of the Board of Commission
ers of the District of Columbia and IN
subsequently, taking the oatn OF OF
fee as public utilities commissioned.
I complied fully with the letter and
spirit of the law. When l took that
oath l believed myself to be quallheo
legally and ethically to act as MEM
her of the Public Utilities Commission,
and nothing has occurred since that
date to change my opinion.
1T is my intention to sit in this
case"
No Further Objection.
Mr.. Clayton then told the commits
SION that even if the Commissioner
had not made his statement he proba-
bly, would have made it clear that he
had no further objection to Mr.. Hen
drick acting in the gas case.
The representative of the federation
recalled that he made two challenges
Monday. One. he said, was a special
challenge as to the competency OF MI
Hendrick to sit in the gas case. the
second general question as to
whether he should take part in view
of his former holdings in the COM
pany.
Ton said he accepted fully Mr.. Hen
drick's statement Monday that he dis
posed of the stock before becoming
Commissioner.
AS to the second challenge" he
continued. Il accept his statement
today. If he feels that he can sit in
this case and help determine it, we
acquiesce. There is no coin OF the
realm which to me has truer ring
than the word Of a southern gentle
man
Gas Expert Testines- Il
The first witness on the stand today
was Leon B. Eichengreen, an expert
from the United Gas Improvement
Company of Philadelphia, who was
questioned by Chairman Kutz as to
tthe relative costs of making gas by
coal and oil. At present Washington's
ras is made from oil. otherwise known
as water gas.
Eichengreen testified that while gas
| could be manufactured cheaper from
icoal than from oil, he does not be-
SIIeve the present an opportune time
ITO build a coal plant. because OF high
,prices and uncertainty of getting ma
: rerials.
! IF you were asked now to recon-
mend to the local company how it
should extend it's plant, what would
, be your decision?" asked Chairman
J Kutz
Il would say. add one or two
water sets to tide the company over
the next two or three years. and at
that time, by all means, build a coal
plant" was the reply.
The witness admitted in answer to
a question from Col Kutz that even
at present high prices coal gas could
.be manufactured cheaper than water
gas in the holder. He added, how
ever, that he did not believe this a
proper time to undertake such a
project.
Depends on Interest.
Mr.. Eichengreen said the amount
that would be saved on the making OF
coal gas. as compared with water gas.
lar0elv the rate OF
interest the company would nave 70
pay for the money to build the plant.
The present output of gas in Wash
ington. according to the testimony, rs
between four and nVe biillon CUBIC
feet year.
Mr.. Eichengreen testified that a coal
plant to manufacture 2.0O0,000.O0O feet
a wear would cost now between four
and FIVE million dollars.
The witness said the saving on a
coal plant also would depend to a
considerable extent upon the com
pany's ability to sell the coke. which
is a by-product of coal gas.
1t was apparent from the questions
that Col. KutZ is giving thought to
the advisability of coal plant at this
tune to keep down the retail price
Of gas.
Questioned by Kutz.
Chairman Kutz questioned Sanford
y Whitwe ell, auditor of the company
in making allowances for replace
ment of worn-out equipment
The witness stated that all replace
ments that are made to restore an
existing engine, water-Set or other
implement to full efficiency are treat
I'd as maintenance charges.
Chairman KutZ took the view tha,
by such course the company is
building up it's capital out of earn
lngs, since the cost of implements re-
placed is much higher now than the
original implements were.
He said the commission does no,
feel il is proper to charge such re.
placements to maintenance and thai
il no doubt will consider changing
,the rule of accounting in that respect
Urges Accounting CnanEes.
The witness then stated that he also
felt there were changes which shoulG
he made in the present rules of ac.
the Interstate Commerce Commission
and which have been followed by the
local commission.
AS an example. he cited the fact thai
the company is not permitted tt
capitaiize typewriters, adding ma
chimes and similar mechanical devices
hut is allowed to capitalize the ia BILE.
or desks on which they rest
Taking of testimony was concluded
al IL 30 O'Clock, after which the com
mission heard the arguments o,
counsel.
william NICK. Clayton of the fedora
ZION urged the commission not tc
grant the companys request for az
increase from 25 to sl.44 per thou
! eand cubic feet for gas sold to privat,
consumers and corresponding In
crease to wholesale users.
The increase is being sought by tn,
+ company in order to increase the rat,
. of return on the value Of its property