Evening star., 1936-08-11
%7,237 GAS RATE
SLASH ORDERED
FOR SEPTEMBER |.
$4,000 Domestic consum-
ers to Share $24,204
~ of Benefit.
s23,o33 FOR 80 PCT.
OF BUSINESS USERS
Keech Announces Decision at
Close Of All-Day Hearing.
Record for Briefness.
BY DON S. WARREN.

Gas rates will be reduced Septem-
ber / by $47,237, with slightly more
than half of the cut going to selected
domestic customers and the remainder
to commercial consumers, under de-
cision by the Public Utilities Commits
sion on the sliding scale plan for the
Washington and Georgetown Gas
Light Cos.
Only So per cent of the 122,5S1 do
mestic consumers. or about $4,000,
will share in the ALLEGATION of S24,204
of the total reduction to them, while
about 80 per cent Of the commercial
users will benefit by division OF the
remaining s23,033.
In the case of domestic consumers,
those using the general average OF
$500 cubic feet a month will find
their bills reduced by cent a month.
Those using 1000 cubic feet will get
O reduction Of cents month.
The decision was announced by
Richmond B. Keech, acting commits
sion chairman, at the conclusion OF an
all-day hearing, which set record for
u
Ing prepared today.
Serious Competition"
ALLEGATION of a large share OF the
total cut to commercial consumers
was defended by E. j. Boothby. vice
president and general manager of the
Washington company, who said the
whole cut really should be so applied
because of the serious competition"
faced by the gas industry.
However, he recommended the ap-
plication of $24,204 to domestic Gus
toners as a matter of maintaining
their good will. His argument was
opposed by Peoples Counsel William
A. Roberts, who declared commercial
customers had received the larger
portion of rate reductions effected
since 1880. Boothby replied that do
mestic rates here are among the low
est, If not the lowest, of any city on
the Eastern Seaboard using manufac-
tured gas and lower than some using
natural gas.
The new domestic schedule will
be the same except that the second
step in the consumption level is low
cred. Those using 300 cubic feet or
less per month will pay a minimum
net bill of rs cents, as at present.
The next bracket, costing 8 cents per
100 cubic feet, now applies to those
using up to 1000 cubic feet. This
will be lowered to $500 cubic feet.
and 6.6 Rates Remain.
For the next 4,500 cubic feet the
rate will remain at cents per 100
cubic feet, and for consumption in
excess of 5000 cubic feet the rate
will continue to be sc cents per 100
cubic feet.
The new commercial schedule will
be: For the first 900 cubic feet or
less, rs cents a month, the same as
the present rate; for the next 9100
cubic feet used per month, 79 cents
per 100 cubic feet, reduction from
8 cents; for the next 10000 cubic
feet, 6.5 cents per 100 cubic feet, a
reduction from 81 cents; for the
next 100000 cubic feet, So cents per
100 cubic feet, reduction from So
cents, and for consumption of more
than 100000 cubic feet a month, As
cents, the same as the existing rate.
The rate cut was based on calcula-
tions Of profits made by the COM
panies in excess of the basic return
of SIS per cent, fixed in the sliding
scale plan, on a rate base calculated
at approximately $21,049,00
B. M. Bachman, commission chief
accountant, showed that during the
period ending June 80, the tax bill of
the companies had increased by
nearly $4,000. to reach a total of
S503,501. Had there been no increases
in taxes the amount of excess profits
available for the September / rate
cut would have been increased by
about S26,s9s.
Greatest Tax Increase.
The greatest increase in taxes was
shown in the Federal corporate in
come levy, which is on a graduated
basis under the new tax law.
The income tax on the Washington
company at rates in effect on July l,
1895. was $123,6 $50. For the year end
ing June so, 1886, this was figured to
be f1161, ,410, or an increase of $37, 7,730
The study showed also the Washing
ton company has paid s9,o62 in the
pay roll tax for unemployment COM
pensation insurance.
Roberts raised sharp protest against
the expenditure by the companies of
CSC, 1868 for institutional advertising"
The company spent $37,345 in CO.
operative advertising for builders who
install heating and other appliances
Of the gas company. He charged this
system was discrimination against
the private gas consumer. 1T has got
to stop sometime" he declared.
Roberts also protested against
maintenance of charge of $1.50 for
reconnecting services which have
been stopped because of non-payment
Of bills.