Evening star., 1921-03-15
SEE GAS PROFITS
# COMPANY KEEPS
UP PRESENT PRICE
Utilities Commission Experts
Report Return for 1921
Will Be lila Per Cent.
TIN CHARGES TO PUBLIC
DEPENDS ON COST OF OIL
Attorney at Hearing Sees No
Chance of Reduction in Retail
Rate Now,

Accountants of the Public Utilities
Commission have estimated that II the
present price of gas should be con-
should be able to buy oil for the bal
ance of the year at the FEBRUARY
price, which was 9.97 cents per gallon.
the company's rate of return for 1921
would be 11.74 per cent.
Col Charles w. Kutz. chairman OF
tho commission, made this announce
ment at the hearing today on the ap-
plication of the Washington Gas Light
Company, for itself and the George
town Company, for continuation OF
the rate of $1.32 per thousand cubic
feet for gas, with lower rates for
wholesale users.
The Engineer Commissioner said the
estimate Of the District accountants is
based on the assumption that the
company will sell the same amount
Of gas as in 1920 and pay the same
for labor and all other items OF ex-
pense except oil. which since Febru-
ary has been declining in price.
Col. Kutz, before adjourning the
hearing until o'clock this afternoon,
requested Robert o. Luqueer. consult
ing engineer for the company, to
study the estimate of the commits
sion's accountants that he might re-
ply 10 IL thIS AFTERNOON IL ne uSSii CO.
Hinges ON Price OF Oil.
1t became evident before adjourn
ment for lunch that the commissions
decision in the gas case will hinge
largely on the price of oil. Of which
II takes about four gallons to manu-
facture a thousand cubic feet Of gas.
Mr.. Luqueer. in his testimony. stat
ed that the average price of all the
a. HfNp
the twelve months ending this May
will be a fraction more than IL cents
per gallon.
In view of the fact that the new
commission has only two days left in
which to decide the gas case-the
present rates expiring on Friday
William Nick. Clayton asked that the
morrow be postponed until next week.
street Car Hearing Tomorrow.
Chairman Kutz announced at noon
that the commission considered the
request and decided to proceed with
the street car case tomorrow.
Testimony taken at the opening of
the hearing disclosed that the Wash
ington Gas Light Company does not
expect to pay more than ~ cents per
gallon for oil to be bought between
now and May for gas-making pur-
poses.
This is 4 cents cheaper than the rate
OF 12A cents per gallon which the
company was paying when the COM
mission fixed tfe price of gas to pri-
vate consumers at $1-s2 per thousand
cubic feet
Attorney Benjamin A. Minor, in
enening for the Washinxtop and
0e6fEetown Gas Light Companies. de-
ciared he saw no hope for q reduction
in the retail price Of gas IL the COM
panies are to earn a fair return on the
value of their property.
Later in the session. when Mr..
LuQueer was testifying for the gas
company, he estimated that for the
twelve months ending with May of this
year the companies will earn $751;
S42.:1, or 5.S6 per cent on the value
Of the property
Needs 100000 Gallons Of Oil.
Chairman Kutz asked the witness if
the Washington company. which appears
also for the Georgetown company. has
purchased all Of its oil for the period
from now until June /.
Mr.. Luqueer said there is still about
1,S00. 900 gallons to be bought
: The chairman asked the witness what
Is the average price the company ex-
poets to pay for this unpurchased oil.
average price Of this oil would be g. 425
cents per gallon.
What is the lowest price you have
paid for oil?" the colonel continued
Seven and one-eighth cents per gall
lon" said tine witness.
IF the commission last year had
adopted the suggestion for a sliding
scale of gas rates the price of gas
would have gone down with<th drop
in oil. would it not?' the chairman
continued.
Mr. Luqueer replied that it would if
the company should buy any large
amount Of oil at ~ cents per gallon.
kut1 Comments on Reduction.
Chairman Kutz then said it seemed
odd that there should be no possibil-
fly for areduction a. in the price of gas
with the price of oil declining.
At this point Howard Reeside, pres
ident of the Washington Gas Light
Company, told Commissioner Kutz
that he would take the stand later
and explain the oil situation. He add
ed that the company has not yet re-
ceived any oil at rs cents per gallon,
but has ordered some at that figure
for this month.