Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-14
GAS RATE BATTLE
IS TAKEN TO COURT
Companies Appeal Decision
of CommiSSion-Cut in
Charges Held Up.

A long expected court fight over
the valuation fixed for the Washing
ton and Georgetown Gas Companies
by the Public Utilities Commission
was started yesterday when the COM
panieS appealed to court to override
the commission decision.
The commission last March set the
values of the two companies for rate
making purposes at $l6,S93 600,
whereas officials of the companies
claimed approximately 100000.
The valuation decision is destined
to face a double barreled attack, for
Peoples Counsel William A. Roberts
already had prepared an appeal OBJ
own, to be filed promptly if the gas
companies appealed. He is contend
ing the commission erred in favor OF
the companies in some instances,
while the companies claim the valu-
alton decision was contrary to evil
dence, unreasonable and inadequate"
Rate Cut May Be Delayed.
The effect may be a protracted
legal battle which will defer for two
or three years an expected large re-
duction in gas rates. When valu-
alton proceedings were started in Au-
gust, 1882, the commission ordered
temporary 8.5 per cent discount on
bills. This has been continued since
then.
After the valuation case was de-
cided by the commission it was in
dicated the permanent rate cut might
amount to considerably more than
twice the present one.
Meanwhile, there is another posi-
bility. The peoples counsel recently
proposed that a short cut" be taken
with an agreement between the COM
mission and the company on a rate
cut, based on data now in hand, and
that present rate proceedings and the
past valuation case be abandoned.
He said he was prepared to submit
proposed rate cut, but as yet has not
made public his suggestion. He said
he would not enter into secret negoti-
ations" on this proposal and that If
the companies failed to accept, he
would fight any other agreement.
Willing to Consider Plan.
Marcy L. Sperry, gas companies
president, said yesterday after the ap-
peal was filed his concerns still were
willing to consider Roberts proposed
agreement on rate cut.
The commission is scheduled to re-
sumo the pending rate case on July %.
The valuations fixed for the ccm-
panies, which are in joint owner
ship, at $1,954,O00 for the Georgetown
company and $15,039,000 for the
Washington company. In the appeals
the companies contend the commits
sion did not properly consider nu-
merous items of value, including the
original cost, and that it omitted en-
tirely certain valuable useful prop
erty. The latter was not described.
Many Figures Cut.
In hewing down the valuation
claims of the companies, the COM
mission slashed amounts claimed as
working capital, disallowed other
sums set up for conduct of the COM
panies' appliance business. did not
grant all that was claimed for going
concern" value, and increased some
depreciation allowances.
The plaintiffs say they are unwill-
ing to have the valuations stand for
fear they might be used as a rate
making basis and serve as a dangerous
precedent.
Peoples Counsel Roberts, n his brief,
yet to be filed, contends that the
commission has refused to accept tes-
timony as to facts offered at the hear
ings by its own staff and also has
accepted claims of the companies
which are not proper.