Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-23
Bachman Reports Increases
on Soliciting, Salaries and
Supplies Items.
MAINTENANCE COSTS
PUZZLE BY DECLINE
Utilities Body Awaits Woods Re-
ply, Engineers Data and
Keech's Findings.

With an investigation under way into
the ramiflcations OF Washington's gas
service to determine the cause OF the
unprecedented flood OF complaints over
excessive bills, the Public Utilities
Commission, it was disclosed today, has
now turned its attention to the mount
ing overhead expenses OF the Washing
ton Gas Light Company.
Data prepared for the commissions
use by B. NICK. Bachman, its chief &C
countant, shows large increase in
the expenses of the company. In 1880,
the accountants report revealed, the
company spent $128,96206 more than
it did in 1929 on canvassing and
soliciting. salaries of additional en-
ployes, advertising and supplies.
The companys expenses arc being
closely watched by the commission, it
was said, because these items are all
deducted from operating revenues which
constitute an important factor in the
determination Of rates.
Soliciting Cost Rises.
Mr.. Bachman's report discloses that
the compsny's records credit $156,-
460.59 in 1880 to canvassing and solicit
ing, an increase of $50 ,400.14 over the
same item for the preceding year. For
advertising and supplies, the company
last year spent $65.277.52. compared
with S45.84230 in 1929. Salaries for
new employees, according to the report.
amounted to $52,099.20, an increase of
$40, 1869 over 1929. At the same time
there was an increase of Sill .238.05 in
the salaries of administrative officials.
In his statement, Mr.. Bachman called
attention to the fact that the change of
management of the gas company took
place last March, and that the full
effect of the increase in personnel and
the accompanying increase in cost Is
not reflected in his compilations. The
same is true. he said, as to the new
business department.
Mr.. Bachman also called attention
10 an apparent decease in the general
and miscellaneous expenses Of the COM
pany. This is partly due" he said, Ito
reserve for depreciation (due TO the
commissions order) and in part to q
different method beng followed in dis
tributing transportation expenses. By
this I mean that a larger part of these
expenses were distributed to construc-
ton work, and thus capitalized, than
has been done heretofore.
Maintenance Decreases.
There was also a very marked de-
cline in maintenance costs. The reason
for this I do not know. and I cannot
state whether such has been required in
order to make better showing in earn
ings for the year or whether the
property is in as good shape as it was
a year ago."
The companys operating revenues in
1880. as shown by the report, amounted
to 1892 ,579.75, an increase of $14,-
896.15 over 1929 The net income, less
taxes, however, was $13,052.14 under the
previous year.
Mr.. Bachman's statement together
with reports from engineers of the COM
mission who were assigned to various
phases of the situation in the gas
pressure investigation, are expected to
occupy the attention of the commission
when it meets tomorrow in semi-weekly
session.
Woods Reply Awaited.
BY that time the commission also
hopes to have reply from George A.
G. Wood, president of the gas COM
pany, in response to its special order
last week directing that steps be taken
Immediately to bring gas pressure with
in the new 3-inch maximum.
Richmond B. Keech, peoples counsel,
also will go before the commission with
various information he has gathered in
connection with his independent inveSti-
cation into the cause of the high gas
bills.
The report which the commission is
anXiously awaiting is that of Elmer G.
Runyan, its gas engineer, who was
directed to make a test to determine
what effect varying pressures had on
gas consumption. This test, the COM
mission believes, will show definitely
whether increased gas pressures pre-
vailing generally throughout the Dis
trict are responsible for the high bills
complained of by gas consumers.