Evening star., 1942-08-15


ment of the gas rate case. The
hearing will be held beginning
at 10 am. Tuesday.
BY DON S. WARREN.
A threatened increase of 1923 ,488
in Washington Gas Light Co. con-
sumer rates, under the normal op-
Grafton of its sliding-scale plan, has
been deferred at least for so days
as representatives of the company
and the Public Utilities Commission
squared off to meet issues raised by
Commission Chairman Gregory
Hankin at pre-hearing conference
yesterday.
The hearing on annual rate ad-
justment had been scheduled for
next Tuesday, but postponement
of at least so 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 $1,000 a year He
mentioned that Marcy L. Sperry is
paid s32,500, and that other top
executives are paid $4,000 and
$500. He also plans to question
payment of $4,000 to Hewes,
Prettyman & Await as company
counsel.
Cites Cabinet Salaries.
In this connection. Mr.. Hankin
called attention to the $4,000
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 men,
bers of the Public Utilities Commits
sion are only $500.
In reply, Mr.. Prettyman assert
ed that the company paid salaries
it deemed justified by the services
of its executives and as sugges-
ton, said that while it could EN-.
ploy a $1,000 president. it had de-
ciJoI II u,oy,taJ n go En0 n uao
president who, he added, could gel
that sum elsewhere on the (execu.
tive) market. He argued that this
/ and other executive salaries were
reasonable" and were properly
charged against operating expense.
OF the gas concern.
AS to the legal fee paid his Law
firm. Mr.. Prettyman said that it!
value was worth considerably
more than the $4,000. but tina
that was the price the compan,
had agreed to pay it.
! Mr.. Hankin had made clear tina
he had no idea of attempting tt
limit salaries paid by the compan,
to its executives, but that he ques
toned whether the entire salarie
of those in the higher bracket
should be charged to the consum
ing public rather than, in part, t.
the stockholders. He explainet
later that he did not mean. neces
sarily, to challenge all salaries owe
J 5000, but that he proposed to ex
anime into the qualifications an
services of those getting this mucl
or more.
Remains Issue for Debate.
Mr.. Prettyman argued that "unde
no conceivable authority" could tn
commission sustain such a charge
off on high -salaried officials, and S
this remains an issue for testimon
and debate at hearing sometime i
October.
The commission chairman also re
vealed he planned to inquire into a
outlay of $216,000 for promotion c
gas sales, $4,000 for advertising
and into relatively minor costs sue
as $542 for "Quarter-century
banquet for gas company employt
and officials and $50 spent fc
company representative in a bow!
ing league, as we'll as expenses fe
disqualification and other costs
maintaining the welfare and me
rale" of gas company employees. A
, to the latter, Mr.. Prettyman argue
+ that such costs were justified on tf
. basis of sound business Judgment
r that it aided in maintaining a
= esprit de corps which made residen
= pleased to deal with a compar
like the gas company
On the question of expenditure
r for promotion of gas sales and ae
vertising, Mr.. Prettyman 1nslste
4 these expenditures had aided II
( concern in increasing gas sale
s thereby helping establish the loV
: est rates on the Atlantic Seaboar'
h and that the surest way to cause
s rate increase was to prevent sue
expenditures. In response, M
f Hankin said it was not so much
- question as to whether such e,
- penditures should be made, as
whether they should be charge
q against stockholders instead OF II
9 consuming public.
It Number of Issues Up.
7, At the end of the prehearn
conference, it was announced tn
parties to the case had set dow
the following as issues to be d
veloped at the october hearing
Contribution by the company
the Greater National Capital Cor
z, mittee of the Washington Boa
is of Trade, depreciation on appliane
,e on display and loan, transfer fre
l. sales promotion to merchandise a.
m jobbing of certain costs, treatme
of expenses of financing plans r
ID carried out, payment to the Unit
N Service Organizations, treatment
3 the excess profits tax and adju'
I'd ment on account of rise in cost
Il fuel, the issue here being as
,e what inventory figure to use
making the adjustment.
l. While the above were listed
W issues to be raised at the hearil
It, as a result of the prehearing &C
" | fnraooo Mr. Hopkip Soid this uuo,