Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-09
Bill Has Another Chance of
Consideration in Senate
Tuesday Night.
NEBRASKAN WOULD BAR
GOING CONCERN WORTH
Fate of Measure Hangs on Pos
sibility of Agreement on Pro-
visions in Conferences.

Although the bill to authorize q
merger of the Washington and George
town Gas Light Cos. may have another
chance for consideration when the Sem
ate meets Tuesday night to consider
miscellaneous bills, Senator Howell, Re-
publican, of Nebraska is adhering firmly
to his contention that the measure
should include further concessions TO
the public.
The Nebraska Senator agreed recently
TO drop that part of his amendment
requiring the merged company to ac-
cept his schedule of reduced rates, but
he said yesterday he has not changed
his view regarding the elimination OF
going-concern value as factor in de-
termining the rate base.
The provision which Senator Howell
Is seeking to insert sets forth that IN
arriving at the value of the plant Tor
rate-making purposes nothing shall be
included on account of franchise or
going value and that the rate of re-
turn on the valuation thus determined
shall not exceed 7l2 per cent.
Depends on Agreement.
With the close of the present Con-
Eress only a few weeks off, there will
be slight chance for the passage Of local
measures on which there is disagree
ment. On Tuesday night, for instance,
the Senate will be working on unob-
jected bills, which means unanimous
consent will be necessary for final
vote. 1t would appear, therefore, that
the prospects for the gas merger bill
hinge on whether the Senators for and
against the measure in its present form
can reach an agreement in conferences.
In support of eliminating the item OF
going concern value from the rate base,
Senator Howell contends that for long
period of years the earnings were such
that the development was provided by
the consumers rather than the stock
holders. The Nebraska Senator has
given no indication that he will yield
on this amendment.
The gas company has arranged re-
Gently to use some natural gas here in
place of crude oil as a means of en-
riching the manufactured gas. In set
ting forth the inadviSability of using
straight natural gas, one Of the claims
Advanced recently is that If a modern
plant we're constructed here gas could
be produced cheaper than the cost OF
piping natural gas to the city. 1t has
also been said that the construction of
such a plant at present is contingent
on the enactment of the merger bill.
Would Aid Employment.
Senator Howell, discussing the prob
lem, said that if the company is sure
it can make gas cheaper by building
a new plant it ought to be possible to
determine what the schedule would be.
Senators Golf of West Virginia and
Copeland of New York. in urging action
on the merger bill recently, argued its
passage would lead to the employment
of a large number of men in laying
mains and other betterments. Senator
Howell has joined in conference with
the supporters of the measure, but there
have been no developments in the past
few days indicating an agreement.
The bill would enable the company to
issue additional capital stock to provide
for extensions and improvements. The
Washington company already owns the
stock of the Georgetown company, but
from an operating standpoint charter
provisions confine each company to
operations on opposite sides of Rock
Greek.