Evening star., 1933-05-17
Committee Agrees to Meet
Again Friday to Seek
Favorable Report.
WEIDEMAN AND O'BRIEN
PREVENT ACTION TODAY
Mrs. Norton Presents Statement of
Washington Gas Light Co.
on Construction Needs

The House District Committee, lack
ing quorum, refused today to report
favorably the bill recommended by
Chairman Black Of the Public Utilities
Subcommittee for . merger Of the
Washington and Georgetown Gas Light
Companies. However, an agreement was
reached to meet again Friday morning
in an effort to get favorable report,
after several new members have had
an opportunity to study the bill.
While the committee was endeavor-
ing to reconcile this disagreement.
Chairman Norton announced she had
just received word from Speaker Rainey
that If the bill Is promptly reported it
can be brought up for consideration IN
the House next Monday as part Of the
emergency program.
Favorable Action Prevented.
Favorable action today was prevented
by Representatives Weideman OF Mich
igan and O'Brien Of Illinois. The for
mer protested that he wanted to be sure
that the Washington consumers and
stockholders are properly protected be-
fore giving this measure his support.
OBrien insisted that he cannot see this
measure as emergency legislation, and
is doubtful If it will result in any con-
siderable relief OF unemployment, as
has been promised.
Chairman Norton presented to the
committee a statement prepared by the
Washington Gas Light Co. regarding
its construction needs during the pres
ent year, with an estimated total "of
new construction advisable and neces-
sary Of $1.747, $50"
OF this total the company figures ap-
ta1 ho
for labor In the metropolitan area and
that this would represent employment
for between 200 and 500 men.
The largest item in the proposed I'M
provements Is $783. 700 for installation
Of approximately 270,000 feet Of new gas
main and service pipe for the purpose
OF replacing certain existing pipe not Of
ample size, for reinforcing and distr1bu-
ton system, supplying meter facilities
for new customers and improvements
to existing mains.
S775,ooo for New Holder.
The next largest item is SITS, 900 for
a new holder Additions and improve
ments In generating stations, such as
apparatus, tanks, for recovering and
handling tar, additions and improve
ments to purifying equipment and fuel
cost $121 500. Plant distribution, trans
portation and miscellaneous equipment
are estimated to cost $57 1850, and build
ing construction, $4,000.
M. L. Sperry, president Of the COM
pany, was questioned by Representative
Weideman regarding the salaries paid
officials and admitted that his own
salary of $25 1000 is the highest paid.
Representative Weideman also ques-
toned Mr.. Sperry, Gen. Mason M. Pat
rick, chairman Of the Public Utilities
Commission, and William A. Roberts,
assistant corporation counsel assigned
to the Public Utilities Commission.
regarding whether the new stock pro-
posed to be issued would be all voting
stock as Is the present stock.
Both of the District officials empha-
sized that the Public Utilities Com
mission has absolute control over the
issuance Of stock, and that 1t recognizes
only preferred and common stock. and
none Of the other grades or subdivisions
for manipulation purposes.
Ask Delay In Action.
It was emphasized also that the
Georgetown company Is 100 per cent
owned by the Washington company
but that the maintenance of separate
organizations and accounting means a
cost of about $50,000. Chairman Norton
said that the only objections to the
proposed measure comes from the Chevy
Chase Citizens Association and the Fed
Grafton of Citizens Associations, who
ask that action be delayed until the
revaluation now In progress Is COM
pleted.
Representative Black pointed out that
the peoples counsel desired to have
made part of the legislation an agree
ment by the company to waive the con-
stitutional right of having valuation as
a going concern included in the valua-
ton by the Public Utilities Commission
for ratemaking purposes in the future
as q concession for granting the request
Of the company for authority to merge.