Evening star., 1932-02-19
GAS COMPANIES
EARNED RETURN OF
1925 PCT. IN 1881.
S211,OOO, Offered as Reduc-
ton, Would Cut Figure
by ! Per Cent.
RATE FOR SEVEN YEARS
REVIEWED BY BACHMAN
Commissions Action on Proposed
New Schedules Is Ex-
pected Shortly.

Testimony was offered today at the
public hearing on the proposed rate re-
duction of the Washington and George
town Gas Light Cos, showing that IN
1881 the companies earned 1923 per
S19.SOO,O 900, and that the s2l1,Ooo
offered as a reduction would serve to
reduce this earning l per cent.
The testimony came from ByerS
NICK Bachman. chief accountant OF
the Public Utilities Commission, before
whom the hearing was being he.d: he
was introduced as a witness for Wlll:aln
Nick. Clayton, representing the red
Grafton of Citizens Associations.
Arthur Dean and Wilton j. Lambert,
lawyers for the gas companies. oojecleo
strenuously to BachmanS testlmCn7 OIL
the ground that Bachman was no. ex-
pert enough on the subject, and that
valuation figures had no place IN ths
hearing, but the commission overruled
these objections.
Based on Revised Figures.
MIR. Bachman stated that at the
original valuation proceedings on inc
companys properties in 1916 the VaIue
found for the Washington Gas Light
Co. was $4,000 900 and for the George
town Gas Light Co., s775,0OO. Taxing
these figures as a starting point ana
revising them from year TO year py
the addition of all net betterments lhe
values have increased up TO the ngure
stated at the end of 1881, without
making anv allowance for depreciation
beyond that found IN the 1910 'aiu
ationS.
A prospect that gas rates In the ~
t,Ire might be arranged by some such
automatic device as now controls elec-
trio rates made an appearance toward
the end Of the hearing, when Chairman
Mason NJ. Patrick of the commission
asked President George A. q. Wooo Oh
the company whether his company
would looll with favor on such a scheme
Mr. Wood promised to take the matter
up with his board Of directors
The hearing closed shortly after noon
and the commissions action on the
propcsed new rates is expected 10 pe
announced in few days.
Mr.. Bachmar's testimony showed
that the rate of return enjoyed by the
companies in the years 1928 to 1881
We're as follows: Nineteen hundred ana
twenty-five, 758 per cent; 1926, 8.67;
1927. 1853; 1923, 794; 1929, 8.7l; 1880,
$50 and 1881, 1925.
After the evidence was in, lawyers
frcm IT, companies moved to strike 1t
all out They argued that valuation
was not a part of the call on the hear
ing and that it was most unfair 20
inject it at time when engineers are
engaged in validating the property prior
to another valuation proceeding, and
at time also when the commission has
petitioned the District Supreme Court
for instructions relating to valuation
Mr.. Dean pointed out that this was an
offer of a rate reduction made in ad-
vance of the valuation proceeding, and
that the two things should not be con-
fused The commission, nevertheless,
allowed the evidence to stay in the
record.
Forfeited Discounts Gain.
Prior to Mr. Bachman'5 appearance
on the stand the hearing was occupied
with testimony by Walter NJ. Russell,
chief engineer, and Richard A. Ennis.
controller of the companies, relating
to the various new rates and certain
changes in the rules offered by the
companies.
Mr.. Russell testified that the time
during the year when the heaviest de-
mand is made upon the capacity of the
production plant is on Thanksgiving
dav. between l and o'clock in the aft
ernoon, when the annual crop OF turkeys
is being prepared for Thanksgiving din
ner.
Judging from the line Of questions
put to Mr.. Ennis by William A. Roberts,
lawyer for the commission. there is a
scheme under way to reduce the penal
ties incurred by the larger consumers
when they do not pay their bills within
the IS days time allowed by the COM
pany.
Mr.. Ennis testified that forfeited dis
counts earned by the companies in
creased from S83,566 in 1880 to S9l,-
38285 in 1881.