Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22
PREPARES
TO FIGHT GAS CASE
Utilities Head, in Statement
to Press, Denies Violation
of Merger Plan.
(continued Prom First Page.l

CONTINUED From First Page.)
sistant, participated in the conference,
and near its close B. Mex. Bachman,
the commissions chief accountant, was
invited to take part.
When the gas official left, Harleigh
H. Hartman, acting chairman Of the
commission, announced that PIERCE and
his group had made an argument for
revocation Of the commissions recent
order forbidding the gas company from
turning over any money to the Central
Public Service Corporation without
formal approval. The commission, he
said, fatty rejected the proposal.
PIERCE Issues Statement.
After the conference. Mr.. PIERCE
issued . typewriter statement, quoting
himself as to the reasons why the COM
mission had been urged TO rescind the
order. It read as follows:
I'm connection with the order re-
Gently passed by the Public Utilities
Commission, foTbldding washington
Gas Light Co. to make any payments
for natural gas the following facts were
laid before the coEnnission -
"That Central Public Service Corr
poration had originally planned 70
build a pipe line system 70 transport
natural gas from gas fields, which It
owned or was about to acquire. in Ken
lucky and West Virginia. 70 various
points in virginia, Maryland, the Dis
trict Of Columbia and Indiana. and 70
supply gas to distributing systems con.
trolled By It In Virginia and Maryland
and Indiana, as wen Is to various dis
trfbuting companies along the line, and
to the Washington Gas Light Co.
"It developed. however, that Column
bia Gas & Electric Co. had q consid-
erably more extensive project under
consideration, which would serve AL OF
the territory that the proposed sys-
tenn Of Central Public Service Corpora
ton contemplated serving. and although
Central Public Service Corporation had
already made very substantial expendi-
lures in connection with its project, It
decided not to proceed with 1t, be-
cause an opportunity was presented TO
obtain q supply Of natural gas from
the Columbia Gas a. Electric System
on very advantageous terms, both as TO
certainty Of supply and price.
Able to Offer Large Market.
This was due to the fact that Gen.
tral Public Service Corporation was N
q position to offer Columbia Gas q
u q AGt 8uF4
its own subsidiaries in Virginia, Mary
land and Indiana. On account Of Col.
Peirce's relations with Central Public
Service Corporation, and the large mar
ket for gas which he controlled. he wa
able TO obtain q supply Of natural gas
on very attractive terms for Washing
ton, which at that time was badly In
need Of an additional supply Of gas
Due to these arrangements Washington
was saved from making important cap
ital expenditures that would have
otherwise been necessary.
"A definitely natural gas contract has
not yet been worked out for the Wash
ington Gas Light Co.. and 90 far 1t has
been billed for natural gas at the same
price paid Maryland Gas Transmission
Corporation "a subsidiary Of Columbis
| Gas 81 Electric Coz, plus an allowances
estimated TO cover operating cost, In
terest and amortization Of the branch
line necessary to bring gas from the
main lines Of the Maryland Gas Trans
mission Corporation, near Rockville
Md, to Washington.
This difference in price does not
| constitute an increase OF 4 cents pei
| thousand cubic feet as has been erro-
| neously stated In the press, but has
amounted to $1,000 per month, which
| is less than cent a thousand cubic
| feet Of gas delivered The title to the
transmission line IN the District OF
| Columbia was vested In Washington
Gas Light Co, and there Is not now
and never has been any intention OF
transferring title to that line TO any
other corporation.
Paid $4,000 as Penalty.
Natural gas could not be delivered
by Maryland Gas Transmission Cor
| poration on the date set, and Mary
| land Gas Transmission Corporation
paid the sum OF $4,000 as a penalty
| This payment was turned over to this
Central Public Service Corporation and
has been credited against the cost Of
the transmission line built In the Dis
| tFict for Washington Gas Light Co
The cost of the portion OF the trans
mission line within the District was
approximately S6e, 900, and Washington
| Gas Light Co. has not as yet paid thG
balance due.
For the purpose Of effecttng econ.
oTnies In operation, the Washington
/ Gas Light Co. has awaited itself dur.
| ing the past few months Of the serv.
ices Of various experts in the ennplo,
Of Central Public Service Corporation
and has paid these experts for thetl
services on reasonable per diem basis
These experts have turned over tn
| sums so received TO the Central PuhIiI
Service Corporation as Reimbursement
for their time which was devoted x
Washington matters.
"Coi. Peirce reiterated his belief tina
his ownership Of the beneficial interes
IA the Westfleid Trust, IN which til
ultimate control of stock Of the wash,
ington Gas Light Co. lies, does not Il
any way violate any laws. He stated
i however. that iraarut1eh A the corn