Evening star., 1921-03-16
LOWER RATE FOR GAS LIGHTING
SEEN AS RESULT OF HEARING
Testimony Before Utilities Commission
Shows Nearly IL Per Cent Return.
Company Contests Figures

A reduction in the rate of $1.32 per
thousand cubic feet for gas sold TO
private homes seemed likely today
from the testimony brought out al
the hearing before the new Puplic
Utilities Commission yesterday.
At the morning session Engineer
Commissioner kutz announced that
his accountants had found that IL the
present rates are continued and the
company should be able to buy oil for
the rest of the year at 9.91 cents per
gallon, the return on talr Vaiue OK
the property would be nearly II per
cent. The commission heretofore has
held that 6 per cent is a reasonable
return on fair value for the gas COM
pany.
Exceptions Noted.
At the afternoon session Robert q.
Luqueer, engineer of the company
took issue over several items or reFe-
nue. and expense used by the commis-
sion's accountants in arriving at the
l1.T4 per cent as the probable return
for 1921.
He testified that according to his
method of figuring, the return would
be 10 per cent, granting that the com
pany would sell as much gas TINS
year as in 1920. that oil would remain
at 997 cents, and that the value or
the gas property would remain at the
present ffgure-$11 500. 600.
But the engineer doubted IL any OF
these conditions would MAINTAIN.
First. he said, there already are signs
of a decrease in the consumption or
gas from last year; second, ne po'nted
to the lack of stability in the oil
market. and. third. he estimated that
the value of the gas property for lS2l
will he close to s12, 100000, instead of
$11,S03 200.
Reesidc's Figures on Oil Cost.
Although the commissions account
ants used 997 cents per gallon as the
price of oil in estimating the com
pany's return at 11.14 per cent Tor
1921, the testimony of Howard Rec
side president of the gas company.
disclosed that some oil has been
bought as low as So cents. and an
other supply ordered at IA cents.
The president of the gas company
contended. however, that he could
not RELY on the independent com
panies from which he has ordered
the present fall in the price of oil is
due to the general business slump,
and not to permanent readjust-
ment of the market.
In answer to question from Cha1r-
man Kutz. Mr.. Reeside said he did
not believe the price of oil has
reached a point where it would be
advisable to make yearly contract.
He now is buying from month to
month.
Col. Kutz then asked the witness
if he would make a year contract
for oil at cents, and 'he answered
that he would not like to make a
contract now that would tie the gas
company up and cause a loss of
money if the price should go lower.
Then you must feel in your own
mind that oil is going lower than
8 cents?" the colonel continued.
MIR. Reeside answered that he did
not feel it would go lower. but that
the entire oil situation was uncer-
tain.
Questioned on Coal and Labor.
Members of the commission than
questioned Mr.. Reeside about the
prices paid for coal and the cost of
labor.
william NICK. Clayton, represent
ing the Federation of Citizens As
sociations, asked Mr. Reside If there
has been any. increases in pay for
the general officers of the company
The Witness replied that there