Evening star., 1925-04-04
CUT IN GAS RATES
ASKED FOLLOWING
|. REPORT ON INCOME
Clayton Declares Companies
Have Earned in Excess of
9 Per Cent.
SAYS REVENUE GROWS
WITH EACH REDUCTION
Cites Figures of Washington and
Georgetown Utilities in Plea
to Commission.

Asserting that the Washington and
Georgetown Gas Light Companies
earned a return of approximately .
per cent in 1924, the Federation OF
Citizens Associations today applied to
the utilities commission for a reduc-
ton in the price OF gas. In the
federation's petition William Mex.
Clayton contends a return OF per
cent would be fair.
Mr.. Clayton attacks as discrimina-
tory the sale of gas to the United
States and District Governments at a
lower price than is fixed for private
consumers.
The present price for gas sold TO
households is 81 per thousand cubic
feet, with a sliding scale downward
for large private consumers. There
is an act of Congress fixing a rate of
70 cents for the Federal and District
Governments.
Asks Public Hearing.
The gas companies also should have
a ready to serve" charge as an item
of revenue, Mr.. Clayton tells the
commission. The federation asks that
a public hearing be called as soon as
possible 20 take up gas rates. The
petition read in part as follows:
LAS a matter of practical business
operation, the companies should well
come every reduction in the price of
gas-for with the reductions made by
the commission in 1922 and 1923 higher
rates of return were enjoyed by the
companies.
Counsel for the companies in his
opening statement 20 the commssi
at the hearing on october 22, 1873
said: During the year 1922 we have
had a fair return, something over 4
per cent. This year. 1928. think 1t IS
per cent and over-a little over
per cent The commissions figures
in both cases being higher. Counsel
could now add TO this statement or
1923 that the companies during 1924
earned a return of per cent and over
Increase Comes with Cut.
1T appears from the record that
every time the commission cuts down
the price of gas the rate of return to
the companies goes up.
The federation believes that rate
of return of per cent Is fair. just
and equitable as between the people
and the companies, and that every
argument adduced in support or
per cent rate CT return in former
years has added power and potency
when applied to the current year.
1925.
The companies sold 5.o1s.11S,oOO
cubic feet OF gas in 1y23-5.216.233.0 900
in 1924, an increase of 200.000.000 feet,
or per cent, in the past year
The Washington Gas Light Co.'S
net operating income for 1928 was
s1,0S2, ,s20.31, with added rent and
interest revenues s1.126.91S.02. For
1924 the comparable figures were
S1,260,S26.90 and $1,3oS.19I 2S.
Surplus Is Increased.
In 1928. after paying dividends on
$4,000, 900 stock a the rate of Is per
cent and interest amounting to $685.
$40, the company carried to surplus
SSs,371.
For 1924, after paying dividends
of s46S, 900 and interest of $507,066,
the company carried to surplus s29S.-
1874, an increase of surplus of 1924
over 1923 of s2S9,473.96."
Mr.. Clayton also gave figures of
the operations of the Georgetown
company, owned and operated by the
| Washington company.
The federations spokesman also
expresses belief that the price at
which the local companies sell gas
to the companies of nearby Maryland
and Virginia is lower than to do
complete justice to the gas consum-
ers of the District of Columbia.
Earl V. Fisher, secretary to the
commission, said today that ae-
countants of the commission have
been at work for several weeks on
study of the financial condition of the
gas company, with view to deter
mining whether there should be
rate hearing at this time.