Evening star., 1942-08-15
BY DON S. WARREN.


at 10 am. Tuesday.
BY DON S. WARREN.
A threatened increase of 1928, ,488
in Washington Gas Light Co. con-
sumer rates, under the normal op-
Grafton of it's sliding-scale plan, has
been deferred at least for 60 days
as representatives of the company
and the Public Utilities Commission
squared off to meet issues raised by
Commission Chairman Gregory
Hankin at a pre-hearing conference
yesterday.
The hearing on annual rate ad-
iustment had been scheduled for
next Tuesday, but a postponement
of at least 60 days was granted by
the commission after Mr.. Hankin
had outlined questions to be raised
at the hearing. The company said
it would need two months or more
to prepare answers to some of Mr.
Hankin's questions.
Among other things, Mr.. Hankin
wants to know why the gas COM
pany consumers should pay the en-
tire amounts of some high" salaries
for company executives and counsel.
He said yesterday he wanted to ex-
anime at the eventual hearing
salaries of all company officials
making more than $4,000 year. He
mentioned that Marcy L. Sperry is
paid $32,500, and that other top
executives are paid $4,000 and
$l5,500 He also plans to question
payment of $4,000 to Hewes,
Prettyman g. Await as company
counsel.
Cites Cabinet Salaries.
In this connection, Mr.. Hankin
called attention to the $12,0OO-a-
year salaries of members of the
Presidents cabinet, of $4,000 a year
for members of Congress and $4,000
for members of the Board of Com
missioners. He did not mention
that the salaries of civilian mem
bers of the Public Utilities Commits
sion are only $500.
In reply, Mr. Prettyman assert
ed that the company paid salaries
1t deemed justified by the services
of its executives and as a sugges-
ton, said that while it could en-
ploy a $1,000 president, it had de-
cided it wanted a $32, ,500-a-year
president who, he added. could get
that sum elsewhere on the (execu-
tive) market. He argued that this
and other executive salaries were
reasonable" and were properly
charged against operating expenses
of the gas concern.
AS to the legal fee paid his law
firm. Mr.. Prettyman said that its
value was worth considerably
more" than the $4,000, but that
that was the price the company
had agreed to pay it.
Mr.. Hankin had made clear that
he had no idea of attempting to
limit salaries paid by the company
to its executives, but that he ques-
toned whether the entire salaries
of those in the higher brackets
should be charged to the consum-
ing public rather than, in part, to
the stockholders. He explained
later that he did not mean, neces-
sarily, to challenge all salaries over
$4,000, but that he proposed to ex-
anime into the qualifications and
services of those getting this much
or more.
Remains Issue for Debate.
Mr.. Prettyman argued that under
no conceivable authority" could the
commission sustain such charge
off on high salaried officials, and so
this remains an issue for testimony
and debate at a hearing sometime in
October.
The commission chairman also re-
vealed he planned to inquire into an
outlay of $216,000 for promotion of
gas sales, $4,000 for advertising,
and into relatively minor costs such
as $542 for a quarter century"
banquet for gas company employees
and officials and $3.50 spent for
company representatives in a bowl
ing league, as we'll as expenses for
disqualification and other costs of
maintaining the welfare and mo-
rale' of gas company employees. AS
| to the latter, Mr. Prettyman argued
! that such costs were justified on the
| basis of sound business judgment" :"
| that it aided in maintaining an
esprit de corps which made residents
pleased to deal with company
like the gas company"
On the question of expenditures
for promotion of gas sales and ad-
vertising, Mr.. Prettyman insisted
these expenditures had aided the
concern in increasing gas sales,
thereby helping establish the low
est rates on the Atlantic Seaboard
and that the surest way to cause a
rate increase was to prevent such
expenditures. In response, Mr.
Hankin said it was not so much a
question as to whether such ex-
penditures should be made, as to
whether they should be charged
against stockholders instead of the
consuming public.
Number of Issues Up.
At the end of the prehearine
conference, it was announced that
parties to the case had set down
the following as issues to be de-
veloped at the October hearing:
Contribution by the company tc
the Greater National Capital Com
mittee of the Washington Boaro
of Trade, depreciation on appliances
on display and loan. transfer from
sales promotion to merchandise anc
iobbing of certain costs, treatmen,
of expenses of financing plans MOI
carried out. payment to the United
Service Organizations, treatment O.
the excess profits tax and adjust.
| ment on account of rise in cost O.
fuel, the issue here being as tt
what inventory figure to use il
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