Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-11-07
FLEHARTY "OPENS
GAS HEARING FIRE
Peoples Counsel Lays Basis
for Attack ON Valuation
Claims.

Peoples Counsel Ralph B. Fleharty
today began to lay the foundation for
his forthcoming attack on the valua-
ton claim of the Washington Gas Light
Co., when hearings we're resumed be-
fore the Public Utilities Commission on
the animated valuation case.
BY croSS-examination of r. Q,
Luqueer, Fleharty is assembling COM
prehensive picture of the theory on
which the company engineer construct
ed his reproduction cost of $4,000, 600
for the Washington company. The
peoples counsel expects to finish with
Luqueer by the close OF the hearings
tomorrow.
Theoretical Status Explained.
At the very outset of the proceedings
today Fleharty asked Luqueer under
what conditions he produced the prop
erty of the Washington company the
oreticaliy and the factors. assumed at
the time. The engineer replied that he
assumed the District to be as 1t Is today,
accustomed to the use of gas, but, hav-
ing no gas system, and with the further
exception that some streets we're paved,
but most of them unpaved and the
company having no experienced person.
mel.
Using this formula as basis, Luqueer
calculated the cost Of building new a
complete gas and distribution system.
In reproducing gas mains he charged.
however, only for paving actually cut
into and repaired. This drew from
Fleharty q remark that since he had re-
produced all property why had he failed
to include all paving over mains. why
make a Distinction" he asked.
In connection with buildings, Luqueer
admitted in response to Fleharty's ques-
lions that he might award contracts for
them by competitive bidding, although
he had not figured their reproduction
cost that way.
Fleharty subsequently questioned Lu-
queer about various items of labor costs
and the prices of general equipment
and materials that he had used in his
inventory. BY this he developed that
several items of equipment had been
purchased secondhand when originally
installed, but had been included in the
company's appraisal at the cost new.
Among these were three large cranes,
several small engines and coke sepa-
rator, for which the company paid
$500 and which Luqueer valued at
S11 900, ncludmg a ~ per cent over
head on a price new of $4,000.
Attacks SI,50O,OOO Estimate.
Fleharty then prepared to tear down
LuQueer's estimate of $1,500,000 for the
of service pipes. He got
an admission from the engineer that
steel pipe costing little more than 8
cents foot, or slightly less than one
half the cost of wrought iron pipe, could
be used just as satisfactorily, although
the reproduction of service pipes was
calculated chiefly on the basis of the
cost of wrought iron pipes. The gas
company, Luqueer pointed out, has been
using steel instead Of wrought iron pipes
since 1925.
The cost Of excavation was gone into
in detail by Fleharty, who had put into
the record the names of the firms from
which Luuueer obtained the informa-
ton on which he based his estimate
for this item. The prices used by the
engineer ranged from 50 to $3.50
cubic. foot. the latter being for deep
excavations.
Fleharty also had placed in the rec
ord the names of the firms which fur
nished Luqueer with the prices on which
he based his estimate of the cost of !e-
producing structures.