Evening star., 1942-10-23

cause 1T is not, ana IN view OF the
proceedings heretofore had in this
case, cannot be sufficient compli-
ance with your petition or with the
act of october o.
Plans Further Statement.
He continued that he had not had
an opportunity to see the order for
more than about 10 minutes" be-
fore it was finally issued and there
fore had had no time ito set forth
my views in writing" He said he
would do so "as soon as time
permits.
The order appears to limit the
scope of the new hearing to the
question of whether the order is
"inflationary,' for it says that the
case is being reopened to receive
from OPA additional evidence re-
lating to the inflationary effect, if
any, of the increase in rates.
In this regard the commission Or
der recites that the petition to va
cate the order and reopen the case,
filed by Harry R. Booth, OPA utili-
ties counsel, stated the purpose was
to present evidence or arguments
concerning the comprehensive ma
tional economic policy"
Officials of the gas company
maintained today that the october
act aready had been obeyed. E.
Barrett Prettymane counsel for the
company, said: In my opinion the
act of October 2 already has been
complied with exactly.
This act requires the utility to do
two things: One, to serve notice on
the director of economic stabiliza-
ton regarding any rate increase,
and this we did on October ID; two,
it requires the utility to consent to
the timely intervention by the
designated agent of the President,
and this is Price Administrator
Henderson under designation of Mr.
Byrnes following his appointment as
the agent of the President. We
consented to his (Mr. Henderson's)
Intervention as the first order of
business on the first day of the
hearing. We are of the view that
the act of october has been COM
piled with literally"
Action Undetermined.
Mr.. Prettyman said the company
had not determined what action it
would take regarding the new order.
OPA agents have maintained that
the order is inflationary and in the
petition to vacate and reopen, they
maintained the PUG order was is
sued without notice to the director
OF economic stabilization. The ap-
pointment of Mr.. Byrnes was an
nounced shortly after the PUG order
OF October 49, The OPA contended
the order was invalid and con-
stituted denial to Director Byrnes
OF his right to appear in the pro-
ceeding.
The 100000 rate increase was far
less than the company contended
should have been granted under the
sliding scale agreement. The COM
pany claimed it was entitled to an
increase of $685. Members of
the PUG staff found rates might be
increased by $326,310, but the PUG
reduced allowances for wartime
taxes to bring the rate hike down
to 100000. -
MIR. Booth claimed there should
oe reduction in rates by at least
S47,00O. and MIR, Hankin, in his dis
sent. claimed rates should be re-
duced by more than s617yOOO. and
that mo injustice would be done
II the rates were reduced by
$1,009, POT.
Commission Reviews Increases.
The PUG majority explained that
the rate increase would amount tn
s cents month on the bills of the
average domestic consumer. They
said domestic consumers using $500
cubic feet or less per month would
sustain no increase. It was COM
puted that space heating customers
monthly bills would be increased on
an average. of 81 cents. They added
that the average increase for all
commercial and industrial customers
would amount to 46 cents per
month, and that the total for all
customers would amount to 2.28 per
cent over rates of the preceding
year.
The order concluded: 1--WE cannot
conceive that such an increase would
have material inf1ationary tenden-
cies," reporting that the cost of gas
constitutes but LII per cent of the
average cost OF living in Washing
ton, and that the cost of living index
would be increased, by the gas rate
boost, by about one-thirty-seventh
of l per cent.
The new rates were to have be-
come effective as of September /, in
keeping with past practice. but the
company has delayed application of
the higher rates due to the issue
that developed following amend
ment of the Price Control Act.