Evening star., 1942-09-12
Hankin BaIks
Rush toCIose
Gas Hearing
OPA Aide May
Present Figures at
Monday Session
BY DON S. WARREN.

Co under the sliding scale plan are
to be resumed at am, Monday
with the idea but not the promise
that the case will be closed that
day.
The weekend adjournment was
granted at the behest of Gregory
Hapkin, member of the PUG, and
Harry r. Booth, representing the
OPA, over the protests of company
spokesmen that the record should
be closed without further delay. In
this connection there were obvious
suggestions, though not direct
charge from the company. that both
Mr.. Hankin and Mr. Booth delib-
erately were indulging in dilatory
tactics in hopes of forestalling the
threatened rate hike
The hearing already has had ad-
1ournments to permit the OPA
representative to prepare his case.
This was to have been ready yes
terday, but yesterdays session was
given over mostly to cross-examina-
ton by Mr.. Hankin, former commits
sion chairman.
Night Session Baked.
E. Barrett Prettyman, company
counsel, urged that there be night
session last night, but Mr.. Hankin
objected, and he also opposed ses-
sion today since he had planned to
take the day off as part of his va
cation. When Mr.. Prettyman urged
that the Monday session be opened
at m. instead of 10 am, objec-
tions came from Mr.. Booth, who
said he could not get to the Dis
trict Building that early
After James H. Flanagan. COM
mission chairman, announced 9
am. Monday as the next session, Mr..
Booth came up with compromise
suggestion for $50 am, but this fell
on deaf ears.
Mr.. Booth said his cross-eXamina-
ton would be brief and that little
time would be needed for him to
present his evidence (about the ef-
fects of rate boost in relation to
the Government effort to prevent
price inflation), but he served no.
tice that he might have other ques-
tions or motions.
In opposing delay, Mr.. Prettyman
declared there was serious ques-
ton of the future financial stability
of the company. since the sliding
scale plan constituted the major
basis of the company's financial
prospects, and therefore no undue
delay should be tolerated.
May Increase 1857 900.
Back of it all was the campaign
by Mr.. Hankin and Mr.. Booth to
prevent rate increase, under the
sliding scale plan, of between S325,-
900 and S357000. This would be the
first year since the plan was adopted
in 1885 in which the plan would op-
crate to bring about rate boost,
there being rate decreases hereto
fore, except for last year when net
profits showed sufficient decline
In the background also was the
fact that Senator Norris, Independ-
ent, of Nebraska had asked Con-
greSs to pass a bill which would
clothe the OPA with power to halt
Qb1llVy ldlC 11lS1CaoC 1iNlC z VI SloS-
where over the country, though the
present price control law exempts
utility rates subject to control by To-
cal regulatory bodies.
Politely worded insults were pass
ed yesterday between Chairman
Flanagan and Mr. Hankin, and be-
tween Mr.. Prettyman and Mr..
Booth.
Normally the sliding scale formula
calls for an ALLEGATION of operating
expenses between the Washington
company and its Maryland subsidi-
arN on the basis of the percentage
of total cubic footage of gas sold
in the past test year, But, it de-
veloped yesterday, Mr.. Hankin had
asked the commissions chief ac-
countant, V. A. McElfresh, to figure
this ALLEGATION on the basis of merely
the increase in company business in
the past year-which showed that
thereby $4,000 more would be
charged to Maryland than under
the sliding scale formula, thereby
lessening the demand for the threat
ened rate boost.
Hankin Requested Figures.
When Mr. McElfresh submitted
these figures. by request of Mr.
Hankin, Chairman Flanagan, askec
him if he had made such calcula.
tions as an individual or as com
. mission chief accountant. He re-
piled he had done so as chief &C.
countant-at the request of Mr.
Tankin.
Most of the Gay, however wa
taken up by the cross-examinatiof
of Robert c. Overs, company treas
urer and vice president, by MI
Hankin, although yesterday wa
supposed to have been the day whel
the OPA spokesman presented hi
case against the rate increase OF
the grounds that it was inflationary
Mr. Hankin demanded answers Il
O long series of questions as t.
whether it was proper under tn
sliding scale plan for the compan
to make charges to operating ex
penses for gas company activities 70
sale of appliances, or for advertisin
VI plUitlOGlOll vi dpDlidl1CC ociSo;
supervision of such activities.
Also, he demanded to know VIII
there should be charges againS
operating expenses, chargeable
Washington consumers. for the cost
of sales. reports on sales, and {
transfers of gas company stock
which he argued should be levie
against the stockholders instead {
consumers, Also, he wanted to kno
why the gas company was not
partnership instead of corpora
ton,
Grows Annoyed by Questions.
Mr.. Overs during the first fe
hours of such cross-examinatio
calmly answered that the corpora
form of utility operation had bet
accepted for years, that stock sal
transfer and similar reports ther
fore were in the interest of gas col
sumers. But during the late afte
noon he displayed considerable Al
noyance over the continued Hank
attack, at times turning his bat