Evening star., 1942-10-20
PUG Considers
Call 10 Rescind
Gas Increase
Petition by Byrnes
And OPA Prompts
Purley With Keeeh

Petition by Economic Stabiliza-
ton Director James F. Byrnes and
Price Administrator Leon Hender-
son that the Public Utilities Com
mission rescind it's order of last
week granting a 100000 rate in
crease to the Washington Gas Light
Co. was being considered today by
PUG members.
After receiving the petition. filed
by Harry R. Booth and David Gins
burg, PUG Chairman James H.
Flanagan said he had no comment
except that he would consult with
Corporation Counsel Richmond B.
keech for legal advice before any
further PUG step was taken.
Something of an air of mystery
was thrown about the case yester-
day when announcement of the
petition was withheld two and one
half hours after it was filed with
the PUG by agents of the OPA and
Mr.. Byrnes.
Delay Not Explained.
The document was filed shortly
after noon and reporters had been
told an announcement would be
made for the OPA by the Office of
War Information. This was not
Forthcoming until 2:45 pm. and it
was not until this time that the
PUG revealed its copies of the peti-
ton. Just why this delay occurred
was not clearly explained.
The OPA petition alleged that the
PUG order of October 13 granting
the gas company rate increase was
issued without notice to the di-
rector of economic stabilization'
and without according him the op-
portunity of timely intervention u
as provided in the amendment to
the Price Control Act adopted by
Congress October 2.
The petition also charged that the
increase in rates was invalid" and
that 1t denied Director Byrnes a
right to appear to present evidence
or argument concerning the COM
prehenslve national economic pol
lcleS' developed in accordance with
the new price control law.
Ihe PUG gas rate case was begun
before Congress acted on the amend
ment to the price control law. and
anticipating the new measure. the
OPA was permitted to intervene, and
lts evidence was received and con-
sloered. One of the questions in the
new legal move is whether it is
necessary for the PUG to grant
further Intervention by the OPA as
the agent of Economic Sterilization
Director Byrnes.
HerndOn Statement.
In a letter covering the OPA peti-
tlon yesterday Mr.. Henderson said :.
1t is my judgment that the ac-
tlon OF the commission in issuing
an order, without prior notice by the
company to the director of economic
sCaolllzatlon, authorizing the COM
pany to charge rates higher than
those In effect on September IS. is
vlolaelVe OF both the letter and the
spirit OF the act of October 2.
10 deny the director of economic
staolllzatlon an opportunity to in
terVene to the entry of such an order
is effectively to destroy his ability
to demonstrate why proposed in
crease in utility rates may conflict
with the program of the National
Government to prevent further in
creases in the cost of living. NV
legal staff has been directed to take
appropriate measures to have this
order rescinded."
RESOLUTIONS favoring the rescind-
ing OF the gas rate increase and
asking the Public Utilities Commis-
sion to reopen hearings on the boost
were adopted last night bv the
washington Industrial Union Conn
Gil OF the CIO. The council also
urged that labor and consumers be
given an opportunity to appear in
opposition.