Evening star., 1921-02-26
w. R. & E. PETITIONS
FOR CONTINUANCE
OF PRESENT FARE
CONTINUED from First Page. ,

907-24 for capital expenditures of the
kind stated. and it will be necessary
to continue expenditures in this ratio
for some years to come for which ex-
penditureS it will be necessary to is
sue bonds. the saleabiiity of which
Will largely depend upon the showing
OF satisfactory neat earnings.
S5,OOO.0oO to BE Needed.
'.it least S5,o00.000 will have to be
raised to meet the requirements of
1921, 1922 and 1928. in addition to
which the applicant has maturing in
1923 S5.00o.000 of its said general
mortgage ) per cent bonds, all en-
phasizing the most urgent need of
maintaining the credit of the COM
pany through satisfactory earnings
if it is to meet its obligations. and
properly provide for the demands
upon it for service.
"Referring particularly to schedule
G wholesale cOusumers,. the use of
electrical energy Hereunder is such
as heretofore stated, as to constitute
a very large part of the output and
by very small number of wholesale
consumers who contribute but rela-
lively small percentage of the appli-
cants revenue from current, as fully
brought out at prior hearing. The
great bulk of the cost OF furnishing
such service is in the cost of coal,
the rate prevailing under said sched-
ule had become and was at the prior
hearing Inadequate, non-compensa-
tory and discriminatory. Under the
rate prescribed by said order. No. 3SS.
the use OF electrical energy has in
creased. the applicant retaining not
only prior consumers. but adding to
the number thereof. the said con-
suiners receiving said electrical en-
erSy at less cost than they could
generate power at present price of
coal.
''Other demands are now pending
for an extension of service there
under. all of which, as well as in
other respects, justifying the reason
ableness of the present rate"
The commission announced that
hearing on the gas application will
be held in the boardroom of the Dis
trict building on the morning of
March II. The companies filed this
petition to prevent the rate for gas
from returning to 95 cents per 1000
cubic feet on March IS. as provided
for in the present order of the COM
mission.
The rates which the company asks
to have continued are: For less than
1000; 100000 to 100000, sl.27 per
1000: 100000 to 100000, $I22 per
1000; 100000 to 100000, sl.17: from
$50, 900 to 100000. S1.12, and for more
IMAM l.DU0,UH0. Sl.Oi.
The company states that during the
calendar year 1920, with three differ
ent rates for gas, the rate of return
on fair value, with no allowance of
amortization. was 4.44 per cent. The
petition states that it is expected that
the return on fair value for twelve
months ending May 81 will be $50 per
cent
Say Present Rates Fall Short.
The petition states that while the
companies believe they are entitled to
per cent on fair value they call at
tention to the fact that the existing
rates have failed to yield even a per
cent return. In contending for con-
tinuation of the present rates they
further point out that the period from
April TO September represents low
consumption of gas.
1t is also argued that from De-
cember 1, 1920, to date there has
been a falling -off of 100000, 900 cubic
feet, as compared with the same ne.
riod of last year.
1t is stated that the price of oil.
which is large factor in the man
ufacture of gas. probably will aver
age 10 cents per gallon during the
period from May to September. The
fact that the price of oil went up to
12A cents per gallon last year was
the main factor in the increase of
from $1.25 to S1.32 in the price of gas.
Summing up the question of cost of
manufacture, the petition states:
With reference to the cost of coal,
oil and labor. the prices of these COM
modities are not fixed and uncertainty
exists as to what they will be during
the period for which the company
asks an extension of the selling
rates"