Evening star., 1943-02-01
Gas Rate Boost
Is 0verru|ed
ByD.C. Court
Case Sent Back to
PUG to Find ifIt
Is Influtionury

DlStrlct Court Justice F. Dick
lnson Let's today ordered the
Washington Gas Light Co. rate
case returned to the Public Util-
tiles Commission, directing that
the PUG afford the Presidents s
representatives the opportunity
to fully test the inflationary
trend, if any. which the pro-
posed increase in rates may por-
tend"
Justice Let's decision followed an
OPA appeal from PUG order
which permitted the gas company
to increase its rates by approx
mately 100000. Notification Of the
rate increase was given the Govern
ment October IS. The rates were
increased November Is.
The effect Of today's ruling is to
vacate the commissions order rails
ing the rates.
Legal counsel for the gas COM
pany, however, indicated it is pos
sible that the present rates may
remain in effect pending an appeal
of the District Court decision to the
United States Court of Appeals
In addition to the Government
price e-fixing agencies, the Washing
ton League of Women Shoppers
and various civic bodies attacked
the PUG order increasing the gas
rates.
Justice Let's ruled that the league
and the civic groups are voluntary.
unincorporated associations and are
without capacity to sue, and ac-
cordingly may not prosecute this
appeal" The court therefore granted
the PUG motions to dismiss the
complaints of these groups.
Certain Actions Held Illegal.
Branding certain commission ac-
tions in the hearings as arbitrary
ard illegal" Justice Let's wrote:
True, some of the evidence offered
by the appellants to broaden the
scope of inquiry was received.
think upon the record it is clear that
the commission regarded the in
ouiry within narrow limits and
within the scope of the order OF
March 20 as interpreted by the
commission and that the commits
sion closed its ears to the insistent
of appellants to give con-
sideration to the new factors re-
quired by the Act of october Q, 1912
Ga Price Control Act Amendment.
I'm that respect, find that the
action Of the commission was ar
bitrary and illegal" i
Justice Let's observed that the |
right conferred on the President !
and his representative was not
mere formality.' The privilege OF
intervention" is one of substance
and has direct relation to the avowed
purpose of Congress to stabilize
prices, wages, and profits, the Justice
said.
Justice Let's cited provision OF
the October price control amend
ment, that no common carrier Or
other public utility shall make any
general increase in its rates or
charges which were in effect on
September Is, 1912. unless it first
gives 30 days notice to the President
or such agency as he may designate
and consents to the timely interVen-
ton by such agency before the Fed
eral, State or municipal authority
having jurisdiction to consider such
increase"
Il think the Commission erred in
It's belief that it could proceed in ac-
cordance with the 1885 sliding scale
arrangement alone and in the face
Of the congressional act OF October
2. 1912" Justice Let's said.
The company and the commission
had argued before Justice Let's that
the rate increase was lustfiable
under the sliding scale" rate plan,
Company counsel said the increase
was due the company under this
plan and argued that the increase
would cost the average consumer
only cents per month.
The October amendment required
that the commission give the Presl-
dents representative a reasonable
opportunity to present his case so
the commission might determine
whether the formula agreed on
under the sliding scale arrangement
was inflationary, under known con-
ditions, Justice Let's wrote.
Must Consider Imitation Angle.
THE record does not show that
such opportunity was afforded the
court said. Accordingly the case Is
returned to the commission with
direction that an inquiry be made TO
determine whether an application OF
me sliding scale formula is imitation
arv in view Of the changed economic
and war conditions
The justice observed that the ga;
rate argument is not so much
question Of whether the commission
should enlarge or broaden the scope
Of its hearing under the order o!
March 20 as what it should do 10 fl
reasonable and just rates as re-
uuired by the act of october 2, which
seeks to prevent imitation.
such question may not be dis
missed, but must be met, and The
cnlv way TO meet it is TO hear fully
such evidence as the President
representatives may produce anC
otherwise make searching lnVesti'
cation in the light Of present eco
nomic and war conditions TO de
termine whether the proposed in
crease in rates Will be inhatlonar,
IN character and so contrary 10 th'
declared policy Of Congress- th'
justice said
Justice Let's wrote that the slid
ing scale arrangement is not con
tract. certainly not one WhlCi
tSee GAS RATE, Page 2-X)