Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-11-04

For Court Action
On Gas Rates
Counsel Quits Effort
To Present Evidence
Before PUG
BY DON S. WARREN.

ny DON .. WAhhEN.
The battle between the OPA and
the District Public Utilities Com
over the $500 900 increase in
rates of the Washington Gas Light
Co., which the PUG granted October
13, apparently is headed for the
courts.
Harry r. Booth, counsel for the
OPA, today abandoned presentation
of additional evidence as to the
'inflationary effect" of the rate in
crease order, because the commits
sion refused to permit a review of
the entire rate structure and COM
pany values, and announced OPA
will file petition for reconsidera-
ton.
Under the Districts utility law.
petition for reconsideration is the
first step in an appeal to court from
a PUG decision. Mr.. Booth did not
specify whether the reconsideration
petition would apply to the COM
missions recent rate order. or to the
PUG decision rejecting OPA mo-
lions that the rate order be vocated
or at least stayed pending a full re-
view OF company valuation and rates.
Consulted With Superiors.
The proceeding reopened Mon
day on petitions by the OPA, was
adjourned yesterday to permit Mr..
Booth to consult with his superiors
as to what additional evidence it
would submit or what other position
1t would take.
Monday session - COMPANY
spokesman declared the clear legal
situation" was that with the OPA
motions denied, the increased rates
could be put into effect November
IA, 30 days after the company had
notified James F. Byrnes, stabiliza-
ton director, of the prospective rate
boost. The PUG order permits rates
to be retroactive to September l.,
beginning of the new rate year un-
der the sliding scale plan. How
ever, company officials said they had
not determined when the rates
would be increased or whether they
would be applied on service back to
September /.
At the outset of today's session,
Gregory Hankin, minority member
OF the commission, read into the
record his dissent from the rulings
by Chairman James H. Flanagan
and Commissioner Kutz rejecting
the OPA motions to vacate or stay
the order. He charged the PUG
majority had made errors" in the
proceedings and that they had "as-
signed an impossible task" to the
OPA in limiting its latest interven-
tion to additional evidence relating
to the infiationary effect, if any, Of
the rate increase order.
Mr.. Booth then called Robert C..
Overs, company vice-president, for
discussion of tax accruals and
tax payments, but was challenged by
Corporation Counsel Richmond B.
Keech as to whether this examina-
ton was in keeping with the COM
missions order for reopening the
case. Some figures were adduced,
but when challenge was made to
similar examination of the commits
sion's chief accountant, v. A. Nc
Elfresh, the OPA attorney said:
"All right, won't 60 ahead with
any more evidence"
Calls Rate InfiatiOnary.
During debate over this point,
he declared, I'VE think the COM
missions (rate) order is infla-
tionary"
The OPA counsel then read a pre-
pared statement which included
these declarations:
I'VE believe that Congress lin the
amendment to the Price Control
Law intended that utility rates
should not be increased over those
in effect on SEPTEMBER Is, without
complete reconsideration of utility
rates in the light of the new Price
Control Act and policies of the
Office of the Director of Economic
Sterilization and the OPA -.
This Office is still very anxious
to aid the commission in arriving
at proper decision in this case.
If the commission desires our fur
ther assistance, it can only be given
under the conditions laid down by
Congress. Until the commits
sion conforms to the spirit and
letter of the Act, the public inter-
ests would not be served by the
presentation of further evidence to
the commission =.
Door Remains Open.
Under the law, however, the
door still remains open for the
commission to correct its decision
to conform to the law. That can
be done now or upon review of q
petition for reconsideration which
this office will file within the time
permitted by the Public Utilities
| Act"
In his statement, Mr.. Booth
quarreled with earlier decisions by
the PUG majority restricting the
scope of the case to the terms OF
the order of investigation which
had been issued last March. The
basis Of which was the sliding scale
agreement. Mr.. Booth commended
the PUG should have considered this
plan In the light Of the Govern
Hent's anti-inflation program.
The position of Mr.. Booth was
buttressed by statement issued last
night by OPA Director Henderson In
which he said, in part:
Il also believe that in order prop.
erly to carry out that policy it il
necessary to insist that the order Of
the commission authorizing the in.
crease in gas rates should be re.
scinded and the case opened for un.
limited Intervention by the director
Of economic sterilization.
TN my opinion, the company anc
the commission. should review tn,
entire case in the light Of the con.
gressional policy laid down In tn,
Act Of October 2. It Is not possibl,
adequately to present evidence OF
the issue Of the need Of the com.
pany for higher rates, under thu
restrictions imposed by the commits
sion In its order"
lMiIitiu Unit Formed
WINCHESTER, Va. Nov. I tSpe,
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