Evening star., 1934-02-11
citizens Point Out I'm
fair Competition Of
fered to Merchants.
EALLED ILLEGAL TAX
Reduction in Rate.Fixing
Total Is Asked of
p. i. C..

The Public Utilities Commission
has been asked by the Sixteenth
street Highlands Citizens Association
b eliminate from the valuation total
fpr the Washington and Georgetown
Gas Light Companies, for rate-making
purposes, all items for gas appliances.
The association has just sent the
commission resolution prepared by
Arthur E. Cook, chairman of the as
Sociation's Public Utilities Committee
and secretary OF the association, call
ing for elimination from the valuation
figures items which it Is estimated will
amount to s1,OOO,oOO or more The
resolution was unanimously adopted
by the association at its last meeting
Mr.. Cook pointed out that recent
bearings of the Public Utilities Com
mission disclosed that the gas COM
panies claim as items of investment,
apon which return is demanded in the
gas rate to be charged in the District
of Columbia, Sl,038,000 invested in
gas-using appliances held for sale.
Differentiation of Equipment.
The sale of gas-burning equipment,
such as stoves, furnaces and other
appliances, as distinguished from the
gas itself, is not vested with public
Interest, such as should be protected
by monopoly, Mr.. Cook declared in
his resolution.
Such business puts the gas COM
panies in direct competition with nu-
merous merchants and dealers in
Washington who handle gas-burning
equipment, and who have large in
vestments in merchandise of this
character, which is private and not
In any manner protected as is the gas
company, it was pointed out
"The obvious purpose of including
in the investment statement of the
said gas companies before the Pub
lie Utilities Commission" it was stat
ed, "is to seek a gas rate which will
pay an investment return on the
amount invested in said merchandise,
other than gas, which is the equiva
lent of tax upon the citizens of the
District of Columbia who are users
Of gas"
1t was pointed out that there is
nothing whatever in The nature Of
public utility which could associate
the sale of gas and of gas-burning
equipment in such a manner as to
make it lawful to tax the public of
the District of Columbia to maintain
o merchandise department within the
public utility Of gas production and
BALE
Called illegal Tax"
The association has notified the
Public Utilities Commission, the peo-
pies counsel and the Federation of
Citizens Associations that it regards
She inclusion of said alleged invest
ment in gas burning equipment as an
item of Investment by the Washing
ton and Georgetown Gas Light Com
panies in determining the gas rate
10 be charged as an illegal tax upon
the gas consumers of the District of
Columbia, unfair competition with
private enterprise and an unwarrant-
ed attempt at monopoly at the ex-
pense of the public"
The Public Utilities Commission is
requested in the resolution TO dis
regard, in fixing the valuation of the
aforesaid gas companies for rate pur-
poses, each and every item represent
ing investment in merchandise. other
than gas, held for sale, and that 1t
also deduct from its total valuation
for gas price fixing that portion of
the capital items which fairly rep
resents the value of display rooms.
equipment, etc, normally used in the
sale of similar equipment"