The Washington times., 1920-05-20
WOULD PRICE GAS
ON COST OF OIL
Kutz Favors Changing Scale
Monthly If Control Stays
With Utilities Board.

| Lieut.. Cob Charles w. kutZ, cnair-
man Of the Public Utilities Commits
| sion. believes "A sliding scale in the
price OF gas, changeablc eacn month
aS the price of oil goes up or down,
| is reasonable. provided. however, the
| commission does not lose control CT
| the price.
| When he made this statement at
hearing in the District Building to-
day, Howard Recsidc. president OF the
| Washington Gas Light Company,
made IL clear to Colonel kutZ that his
| company had no desire II regulate
| the price itself and that il was satis-
ned TO leave the setting OF the price
| to the commission.
| Colonel kutZ made this statement
| in a discussion over the sliding scale
az proposed in an Application or the
| company to the commission. The
company seeks to have the gas price
changed monthly 1t states that 1t
can only contract for oil for one
month ahead and that the cost is likely
| to differ each month.
The company now charges 30 cents
per thousand cubic feet for gas. This
rate expires June /. The company
proposes basic rate OF Sl.oS per
thousand cubic feet, based on the cost
Of oil being ~ cents per gallon. 1t
|
cents for every cent the price OF oil
goes up.
| President Reeside said the company
| has contracted for oil at l2la cents "A
gallon for the month of June. Under
| the sliding scale the public would pay
| 81 30 per thousand cubic feet for gas
lduring June. an increase or % cents
over the rate now charged.
The company officials admitted they
Nf
cost of oil at this time. 1t is more
! likely to increase. they said. This
means Washington. after July ]. may
paw higher than Sl.3O If the sliding
| scale is allowed.
| Decided opposition was voiced by
| representatives of the public today
against the sliding rCtle. William
Nick. Clayton. chairman OF the PUB
| lie Utilities Committee of the Fed
Grafton of Citizens Association, led
| the opposition.
All during the hearing Clayton
questioned the Company's witness. At
| one point he forced President Rec
side and Benjamin S. Minor, the com
panv's attorney. to admit that the
standard oil Company the company
| which Will furnish the oil for Wash
! ington for June, could, If it desired
| Indirectly regulate the price of gas
| in Washington, provided the sliding
! scale became effective.
| President Rceside stated he had
| made an excellent deal with this COM
pany. He declared the price of 12h
| cents for oil was several cents lower
| than the market price. He said also
| that the company was under no obli'
| cation to deal with Standard OIL and
| could make contracts with other con-
| Germs if it could get lower price.
| "TTowever, l have been unable to
find any company that will sell oil as
| cheaply as the Standard Oil Com.
| pany." said Mr.. Reesids.
| suppose the sliding scale should
become effective" said Clayton, land
| the public was made to pay for every
| increase in the cost of oil. Wouldn't
IL then be possible for the oil COM
many to say: Here, well increase oil
. or 2 cents. Your company won't
| lose n cent. The public will pay it?"
| At this point in the hearing Reeside
| would not admit this was possible.
| However, when Frank stephens, coun-
sci for the commission, put the same
| question, he reluctantly admitted 1t
was possible.
| "This company has always been
fair with the public" said Reside,
81 think the public has confidence in
MS and knows that we will make the
best oil contract possible. We have
| tried fourteen oil companies, and
they all want to charge us more than
| i3 or II cents a gallon. We have
| made a bargain in getting 1t from
the Standard Oil Company
1--WE have made no contract for
July. We intend to buy oil from the
company that sells II to us cheapest
II the Standard OIL Company offers
the lowest price, we will buy there.
They are not anxious to sell us oil
They are only doing II to help us out
in the present situation.-
| The company Is now paying ~
cents for its oil The company states
the price OF gas will have to increase
| N the company expects to earn n fair
| return on the value OF its property.