Evening star., 1942-09-11
Gas Rate Case
Snagged on 0PA
Intervention
Ruling Delayed as
PUG Members
Fail to Agree


before the Public Utilities Commits
sion, in the current question of
whether consumer rates of the
Washington Gas Light Co. should
be boosted, on the extent to which
the OPA is permitted to intervene
in the case.
Today's argument followed move
made yesterday by Senator Norris.
Independent of Nebraska, to clothe
the Off1ce of Price Administration
with the power to halt utility rate
increases here or elsewhere. The
Price Control Act now exempts
utility rates subject to control by
regulatory powers.
The Norris bill, referred to the
Senate Banking Committee, was in
troduced with the charge by the
Senator that when Price Admins
traitor Hendersons representatives
interviewed in the gas company rate
proceedings, they we're politely
shown the door,"
Intervention Causes DISPUTE.
James H. Flanagan answered these
charges today when he told re-
porters: The record in this case
Will show no evidence of disrespect
TO or the f1outing of the OPA. or a
lack Of desire to be benefited by
thelr views on matters in which they
and we alike are interested"
Meanwhile, the extent to which
the OPA Is permitted to intervene
IN the current rate question was the
subject of an Argument before the
PUG and determination of the issues
was left until after the noon recess.
In the beginning of the hearing
on the annual adjustment of gas
company rates under the sliding
scale plan, Harry Booth, utilities
counsel for the OPA, asked and was
granted the right to intervene.
But arguments developed later as
TO whether he was limited to con-
slderation only of issues stated bv
the commission In it's call for the
nearing on the sliding scale plan.
or whether the OPA Intervention
made imitation and the price-con-
troll effort issues in this case.
Different Views Presented.
Different views were voiced bv
Mr.. Flanagan, Gregory Hankin,
PUC member and former chairman:
E. Barrett Prettyman, gas company
counsel, and Mr.. Booth.
Mr.. Booth and Mr.. Hankin argued
that the granting of the right to
intervene to the OPA had expanded
the issues in the otherwise normal
consideration of the sliding scale
plan to include consideration of
price control and imitation.
Mr. Prettyman stoutIv insisted
tnat this was not so, that under
the Commissions rules of procedure
an mtervenor may not expand issues
unless such issues are expressly
stated as request and are expressly
granted by the Commission, and he
argued these steps had not been
taken.
chairman Flanagan did not see
reason for the argument, stating
tnas the issues were very clear in
MS mad. He said that first the
commission must consider whether
the company is entitled to a rate
BOOST In strict accord with the exist
ing sliding scale agreement. and
tnat, second, the Commission would
consider the questions of imitation
ana price-control when the Com
mission decided whether or not tn
oroer the threatened rate increase.
Asked for Advice.
He said the commission specificaI-
iy was asking the OPA to give the
commission its advice on economic
conditions and imitation and that it
had specifically asked Mr.. Booth for
OPA views on the question of excess
profits taxes which might result in
part due to a consumer rate in
crease.
AT the same time he said the
commission had the responsibility
OF considering the financial prob
lens of the company.
During this argument, various
spokesmen discussed the necessity
Of maintaining the integrity of the
commission.
In discussing the PUG hearing
yesterday, Senator Norris said: at is
true Mr.. Henderson has no author
ity to fix gas rates in Washington,
but, as I have said, his representa-
tives were there to try to convince
the commission that an increase in
gas rates in the City of Washington
meant that all the prices which he
had fixed after investigation, ex-
pense and time would all be knocked
into cooked hat.
"As read the reports in the news
papers, I do not think the repre-
sentatives of the price administra-
tor were treated with very great
respect"
Opens Wide Field.
Although Senator Norris used the
local gas case as an illustration, his
bill opens up a far-reaching new
angle of the price-fixing problem,
The present Price Control Act.
passed in December, excluded pub
lie utilities, which are regulated
either by the ICC or by State COM
missions.
The bill Senator Norris offered
yesterday states that rates charged
by any common carrier or other
public utility shall not be increased
without the consent of the price ad-
ministrator."
The Nebraskan told the Senate
this follows the Canadian plan. It
would, however, enable OPA to
countermand any rate increase
ordered by State commission.