The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-10-22
HEARING ON
DESPITE
PLEA
Companies Attorneys vainly
Urge Delay Until Court De-
cides Valuation Case.

An unsuccessful attempt to
postpone the hearing called by the
Public Utilities Commission to con-
slider q reduction in gas rates was
made in the District Building to-
day when the hearing opened.
Cite Case in Court.
Taking advantage Of the Court Of
Appeals decision in the Potomac
Hlectric Power Company valuation
case. BENJAMIN S. Minor and George
Hoover, attorneys for the Washing
ton and Georgetown Gas Light
Company, asked that the hearing
be deferred until the gas companies
valuatIon case is finally settled.
The lawyers contended to that in
aDmuch AT the decision in the cleo
trio case was virtually a victory
also for the gas companies that II
would be unfair, unjust, and un'
reasonable to disturb existing rates
af this time"
Attorney Minor informed the COM
naission that he had recently been
81 conference with Frank H.
Stephens. general counsel of the
commission, regarding an adjust.
ment of the valuation, but that no
agreement would be reached.
The attorneys stated that under
the Court of Appeals decision, val
uation OF the gas company would
be Increased between $2.60O.OOO and
81, O0O, O0O
eff this is added to the Com
missions valuation, the two gas
companies return for this year
Will be reduced below what the
commission has indicated Is q r@sl-
eOnable return" Minor said.
Minor also declared that since
1918 the companies had been operIt-
ing under an erroneous rate base.
and that with the exception OF 1871
the companies had operated with
a return below what the commits
sion has said was reasonable.
Commissioner J. Franklin Bell,
chairman of the commission, after
hearing the arguments Of the at
torney, asked Walter c. Allen,
executive secretary Of the commits
sion, for an opinion.
''In 1917 or 1918 the companies
agreed to accept the commissions
valuation Tor revision of rates up
ward" Allen said, and I feel that
Be willing to consider the valuation
for revision downward"
Commissioner Bell then announced
that since the hearing had been adj
vertised, and since the commission
had a legal right to proceed, that
the hearing would go on.
Statement by Warner.
The companies filed with the COM
mission a petition asking for defer
ring of any change or of rates until
nyoHr
posed of.
Secretary Allen was the first wiz
ness placed on the stand, represent
ing the commission. Allen said that
for the first seven months of this
year the gas companies earned re-
turn Of 9.73 per cent. He said that
for the entire year, with five months
estimated, the company would earn
alightly over a 10 per cent return.
"In view Of this condition, the COM
mission decided to call a public hear.
ing to consider rate reductions"
Allen added.
The commission then announced
that present rates were as follows:
For $4,000 or less cubic feet, $1.05
per 1000; for $4,000 to 200 900, 81;
500. 900 to SOC, 900. go cents, and for
more than 100000. IS cents.
b. H. Warner, jr., Of Montgomery
county, Nd, who said he was ap.
pearing at the request of Senator
Weller Of Maryland. made the fol-
lowing statement to the commission:
I'm the interest of the public
health and the general welfare Of
the National Capital, 1t Is deemed
imperative that, in the planning for
public improvements and in the con-
alteration Of utility problems, that
territory IN and about Washington,
70 include al suburbs within a reas-
Onahe committing distance shall be
Regarded and % treated an q metro
poNtan district.
when problems of a public
character are presented to the
Commissioners Of the District of
Columbia, or to the Federal au.
thoFities. the earnest cooperation
Of the respective State and county
authorities Of Maryland and Wiz.
ginia be solicited before any def.
mite action IN taken"
Robert o. Luqueer, a consulting
engineer. was the principal witress
Of the company. He had made a
careful and detailed study Of the
financial condition Of the company,
he said. and declared a lower rate
would mean an actual loss.
The company's representative
pOlnted out that the company was
unable to set aside a sufficiently
el1Argo amortization fund.