Evening star., 1935-12-29

OF a sliding scale plan for annual cor
rection of the rates Of the Washing
ton and Georgetown Gas Light Co.'S,
under which an immediate net reduc-
tion Of $305,000 was granted con-
sumers. The plan was proposed by
the companies after Peoples Counsel
william A. Roberts initiated the move
last August.
Under this plan the companies were
granted rate base totaling $2l, ,000.-
600, plus an allowance for working
capital, and were allowed basic rate
Of return on that investment of 6la
per cent. AS the actual rate Of re-
turn may rise or fall certain degrees
from 61a per cent there is provision
for lowering or raising consumer rates.
The commission earlier in the year
had fixed the value Of the two con-
panies at $16,993 900, as of June 80,
1892, and In the sliding scale decision
left indefinitely open the record on
more recent valuation.
The old problem, foreign" control
of the Washington and Georgetown
Gas Cos. again bobbed up sev-
eral times during the year. They are
controlled by Washington g. Suburban
Co.'S, o Massachusetts common law
trust, created several years ago to
avoid conflict with the La Toilette
anti-merger ast. District Supreme
Court has required the trust to notify
it and the commission of any changes
in ownership. Thirty per cent Of the
5000 shares Of beneficial interest in
the trust were "auctioned" late in the
year and the commission started in
vestigation to determine the real
buyers" During this furry the COM
mission threatened to reopen the
ownership case before the court.
Uniform Zone Fares Fixed.
The taxicab situation came forcibly
before the commission during the
Shrine convention in June, when q
large number Of drivers invoked q
strike for higher fares. This issue
was compromised and shortly there
after the commission fixed uniform
zone rates for all cabs, under au-
thority which had been given by
Congress at the past session. This
order fixed the rates at 20-30-50.70
for the four standard zones. At the
same time the commission announced
1t favored legislation to restrict the
total number Of cabs and compulsory
taxicab liability insurance.
The North American Co., giant
utility holding concern, created SEN
sation when it filed with the Securi-
ties and Exchange Commission q plan
for divesting itself Of control OF the
washington Railway & Electric Co.,
holding concern which owns out
right the valuable Potomac & Elec-
trio Power Co., as well as half Of the
stock in the Capital Transit Co. The
District commission promptly made in
quiry to determine details, and soon
thereafter North American an
nounced through the Washington
Railway g. Electric Co. o change In
details. Later, 1t applied to the Sc
curities and Exchange Commission for
withdrawal Of the plan.
The North American plan proposed
substitution Of new shares at the rate
OF 70 to ! for the outstanding stock
OF the Washington Railway & Elec-
tric Co. and utility experts figured
the proposed subsequent public sale
OF the new shares would bring to
the North American something In
excess Of 22.0o0, 900, II they sold at
o maximum Of $50 q share, as pro-
posed.
Pepco Return Probed.
About this time the District COM
mission announced an investigation
into the rate of return to be allowed
the Potomac Electric Power Co. on
its agreed rate base under the aiding
scale plan which annually governs its
consumer charges. Public hearing on
this subject is scheduled for early
January. The power company is now
allowed q basic return Of per cent.
The commission during the past
year killed move by the Capital
Transit Co. to buy the properties Of