Evening star., 1921-07-22
OFFER TO REDUCE
GAS LIGHT RATES
10 CENTS A 1000
Local Companies Make VOL
untary Proposal to Utili-
ties Commission.
WOULD EFFECT SAVING
OF $3.50, 900 ANNUALLY
Statements Presented Show That
Corporations Now Earn Less
Than 6 Per Cent.

The Washington and Georgetown
Gas Light. companies went before the
Public Utilities Commission today
with a voluntary proposal for cut
of 10 cents per thousand cubic feet IN
the price of gas sold in the Dlstrlct,
ut the same time presenting ngures
showing that they are earning lesS
than per cent on their valuasoh.
Present rates range from 81 per
thousand cubic feet, when the con-
sumption is a million feet or more
per month, to $1.25, when the con.
sumption is one hundred thousand
feet or less. The latter rate, Wnlcn
affects a majority, if not ALL OF the
householders of the District.
No Formal Petition.
The companies did not present a
formal petition. but laid before the
commission an analysis OF their earn
ings and operating expenses
we can submit to a reduction of
10 cents. but beyond that We cannot
go il we are to earn an amount that
will enable US to operate efficiently
and pay a reasonable return on the
Investment" Benjamin F. Minor, at
torney for the companies, told the
commission.
a 10-cent cut in the price of gas would
save gas users about $450.000 per an
mum.
He said earnings during the year
ended May 81. last. gave a rate of
return of but 5.97 per cent on the fair
values of the properties, as determin-
ed by the commission.
Earnings s7Os.Os0.67. =
Robert o. Luqueer, gas engineer of
the firm of Humphreys & Miller of
New York. who has made a careful
study of the companies books, was
the principal witness introduced. He
said that net earnings during the
O70.67. which gave the 5.97 per cent
rate of return referred to by Mr..
Minor.
Mr.. Luqueer stated the output of gas
during the first five months of the
year. fell off more than Z per cent.
He estimated the full year. 1921 will
show loss in sales of nearly 4 per
cent.
Asked by Chairman Kutz if the pro-
posed cut in price would not, In his
replied he did not think the reduc-
ton would be sufficient materially
to altar the situation.
William NICK. Clayton. representing
the Federation Of Citizens Associa-
tions, injected the question of sal
into the hearing. He referred to the
bill of Representative Woods. which
would give the Public Utilities Com
mission the right to pass on the rea-
sonableness of expenditures.
Chairman Kutz stated that. while
the commission has no authority to
compel salary reductions, it may take
Into account whether the manage
nr9nt of utility Is efficient and eco
nohical when 1t IL determining what
rate or rates may be charged for the
service performed by the utility.
Inquiries of Salary.
Mr. Clayton said he had been in
formed of a straight 10 per cent re-
duction in the salaries Of officials and
employees of the gas company in Bal
timore, which. he understood. would
produce an annual saving of 100000.
In his. opening statement for the
companies. Attorney Minor reviewed
previous rate hearings and the policy
of the companies to lay all the facts
upon the table" He said the man.
agement of the corporations has been
along good. bust ness lines. It is the
desire of the companies, he said. to
reduce the price of gas to the lowest
point possible consistent with eff
eient management and the rendering
of good service to the public.