Evening star., 1942-12-24
Gas Rate Ru|inq
Expected Within
Three Weeks
OPA Position Hit @
BY PUG Counsel as
Hearing Closes

Charging inconsistency in the
Governments position on what con-
stitutes "inflationary" prices, Lloyd
B. Harrison, special assistant to the
corporation counsel, observed in
District Court yesterday that the
Once OF Price Administration saw
f1t to object to a 2.28 per cent in
crease In gas rates though it had
Increased fuel oil rates approxi-
mately 19 per cent.
Mr.. Harrison's objection to the
OPA position was voiced during the
concluding arguments on the 5000 900
rate increase granted the Washing
ton Gas Light Co. by the Public
Utilities Commission.
Justice F. Dickinson Let's took
under advisement the voluminous
mass of testimony in the case. during
which Federal Government and con-
sumer representatives appealed that
the court set aside the increase and
counsel for the PUG and the gas
light company argued the increase
Is fair, reasonable and complies with
the strict letter of the law
Decision In Few Weeks.
A decision in the case, considered
important as test of Government
control over utility rates during war
time, probably will not be ready for
two or three weeks" Justice Let's
granted Government counsel per-
mission to file a memorandum on
the arguments before December 81.
The defendants will be allowed one
week in which to answer the mem
orandum.
Mr.. Harrison followed his COL
league, Corporation Counsel Rich
mond B. Keech, to the bar in de-
tending the rate increase yesterday.
After telling the court that the
Government and consumer repre-
sentatives have mo legal standing to ;
bring suit In this case" because their
legal rights have not been in
vaded," he said:
Between February and June OF
this year the tank wagon price OF
No. 2 fuel oil was boosted from rs
cents to 102 cents by the Office of
Price Administration. In August
the price was cut to 81 cents per
gallon. This represents an over
all price increase-from February
to August-of approximately 10 per
cent. Is this inflationary?
The Washington Gas Light Co.,
on the other hand, is asking for a
rate increase of approximately 2.2s
per cent for period which extends
back two years. The increase in
gas rate cost to the average CON-
sumer is approximately 3 cents per
month.
Moreover, the fuel oil increase
affected approximately $4,000 con-
sumers in the Washington area and
the gas company increase affects
approximately $4,000 consumers.
How is it that the Government
can consider one price boost infa.
tlonary and the other not 'infa-
tionary'?"
Claims Findings Binding.
Mr.. Harrison identified the Gov
ernment and consumer representa-
tlves as "intervenors" in the pro-
ceedings. He observed that their
legal rights had not been invaded.
"lntervenors," he said. have no
right to enlarge the issues, which
were resolved by the Public Util-
ltles Commission on evidence pre-
sented before that body. The COM
missions findings, If there is evil
dence to support them, are binding
on the court"
E. Barrett Prettyman and Stod.
dard M. Stevens. jr.. counsel for the
gas company, concluded arguments
Tor the defense, which consumed
tne entire day, the same amount of
time allowed Harry r. Booth, OPA
attorney. and Charles A. Horskv
and William NJ Aiken, consumer
representatives, on Tuesday.
Mr.. Prettyman confined his re-
marks to what he considered four
salient features of the case: The
statutes involved, the much-dis-
cussed sliding scale" rate plan, the
Government appeal before the com.
mission and the so-called 'infa-
tionary" aspects of the 5000, 900
increase.
He reafflrmed the position taken
previously by Mr. Keech that the
company lived up to the letter of the
law in applying the new rates, that
the October 2 amendment to the
Emergency Price Control Act called
ior 30-day notice preceding the
increase and consent to allow Gov
ernment intervention and that both
OF these requirements were satisfied.
Rates Lowest on Seaboard."
He characterized the sliding scale
plan as the most progressive method
yet devised in the fixing of utility
rates" and told the court that the
rates of the Washington Gas Light
Co. are among the lowest in the
Nation and the lowest on the East
ern seaboard."
The basic elements Of the plan.
ne said, were fixed by the PUG after
many years of investigation. He said
that the company had submitted to
many reductions In rates. but had
not enjoyed an increase up to thi,
year.
Mr.. Prettyman reviewed the OPA
objections before the PUG and said
the commission had discussed every
feature OF the case, but declined to
reopen certain issues pertaining to
rate base" rate return" and
depreciation" because these issues
mad been settled after lengthy in.
Vestlgation through the years.
Mr.. Stevens concluded defense
arguments with the observation that
Tor the court to set aside the PUG
order would level deadly and
staggering blow at the administra-
ton OF utility rates in the District
under the sliding scale plan"
The plaintiffs - Nathaniel T..
Nathanson and Mr.. Booth, repre-
senting the Government, and Mr..
Horsky for the consumer group
were each allowed five minutes of
rebuttal.
Fuel Applications Lost
ST. LOUIS tR.-The st. Louis