Evening star., 1942-09-26
Utilities Commission
Studies Demand for
Gas Rate Increase
Company Counsel Holds
OPA Spokesman Errs
In Interpreting Case

Members of the Public sJJtilities
Commission today considered action
on demands by the Washington Gas
Light Co. that It's conSun1er rates
be boosted under operation of the
sliding-scale agreement, and de-
mands by the OPA that If any
change Is made, the rates should be
reduced.
Lengthy briefs were filed on the
deadline by both the company and
representatives of Price Admin
istrator Leon Henderson, whose
spokesman at the recent hearings
was Harry R. Booth, OPA utilities
counsel. These clashed on many
grounds considered at the hearings.
In a last-Gitch fight to prevent
the threatened rate hike OF be-
tween $326,000, as figured on the
basis of PUG staff calculations, and
S3o3,O00, on the basis of company
figures. Mr.. Booth filed motion to
DENY the increase and broaden the
case to include current economic
conditions"
Accounting Error Charged.
The OPA brief charges the COM
missions staff was in error in Its
method of accounting for retire
ment of properties worn out in gas
company service and in handling
the depreciation account. He cited
court decisions to demonstrate that
the methods used now are regarded
as ''unsound and improper as a
matter of law"
I During the hearings Mr. Booth
had demanded that economic condi-
tions and the Government effort to
prevent price imitation be matter
of major consideration. James H
Flanagan, PUG chairman, told him
the OPA views would be given full
consideration but that the commits
sion's first responsibility was to find
whether the sliding scale agreement
had operated to justify a rate
change.
The company brief denies that
/ the rate increase would be infla
tionary, asserting that the effect on
the cost of living in Washington
would be less than one-twentieth
of l per cent" 1t cited the famous
Little Steel cases in which the
National War Labor Board said thai
such wage increases" did not have
a vital bearing on the vast inf1a.
ton problem since the additions tc
the purchasing power make but az
insignificant change" in the tota
problem.
Increased Costs Cited.
Increases in cost of labor and fue
have been cited by the company a
among major reasons for showin|
that 1t was entitled to rate boos
for the first time since the slidin,
scale was adopted in 1885. On thi
point it said that the company, how
ever, was not even asking for allow
ance by the commission for tn
maximum price fixed by OPA TO
fuel which is used in gas manufac
ture> here.
The company brief. filed by Stod
dsrd M. Stevens, jr.; E. Barret
Prettyman and c. Oscar Berry, de
clared the OPA counsel "completel
overlook the fundamental differenc
between rate making by the ordinar
method and that under the sliding
scale method"
The company contended that
the PUG is to consider some condi
tions that probably will exist mex
year. such as taxes, the commissio
f must consider all of them. 1t argue
T that the PUG would have to allo,
e wages at 120 per cent instead of 10
e per cent, as was the case in the slid
4 ing-scale calculation.
!, Whereas Mr.. Booth argued tha
!. abnormal war taxes" should
j borne by the company rather tha
Y by its consumers and that this woul
? remove most Of the claim to a rat
! boost, the company insisted the raj