Evening star., 1943-03-02

ization director and the price ad-
ministrator to intervene in the case
doing this without consulting
with the commission.
Mr.. Hill said the Government
objected to the case being limited to
considerations under the sliding
scale plan.
Mr.. Hill asked that the issues be
broadened and that the Govern.
ment be permitted to show ''funda-
mental errors in the sliding scale
plan and to question whether the
plan should be continued. However,
Mr.. Hill said, Treasury Procure,
ment would have no. objection II.
the PUG can enter an interim order,
for a rate reduction and proceed
thereafter with consideration Of
fundamental issues. He asked that
q date be fixed for hearing on these
broader issues. :
(. Chairman Flanagan responded
that the commission recognizes the
Governments interest as con-
sumner, but said the commission ma
jority feared 4 protracted delay
would result In rate reduction If the
fundamental issues were permitted
to be injected in the present case.
Cuts for All Sought.
John H. Connaughton, counsel for
the Federation OF Citizens Asso-
Citations, voiced fears that II rate
reduction was ordered for the Fed
eral Government 1t would mean no
rate reduction for private consumers
or perhaps even an increase in their
rates. Mr.. Hill assured him this was
not the case, that the Treasury
sought reductions for all consumers
alike.
Mr.. Booth, who was asked by
Mr.. Hill to speak for Treasury pro-
curement as well as OPA and the
sterilization director, challenged ar
guments of Company Counsel S. r.
Bowen that 1t would be illegal for
the commission, under the notice
for the present hearing, to go into
fundamentals Of the sliding-scale
plan.
He said rates should be drastically
reduced for one reason, because
the cost Of living here is about the
highest in the United States. He
argued that rate reduction of at
least 10 per cent. or by $4,000, 900 a
year, still would permit the COM
pany an adequate return.
IN
in answer to the company's objec-
ton to permitting the OPA to enter
the case as an intervenor, insisting
there was no merit In the company
claim, that OPA had no right in
the case on the grounds there was
no proposal for a rate increase.
Mr.. Booth declared regulatory COM
missions were bound by the emer-
gency acts of Congress to support
the price-control programs.
Average Return 81 Per Cent.
Mr.. Booth argued that the COM
pany In the worst year of the de-
preston had had a return of per
cent and that the average company
return between 1924 and 1910 was
ga per cent. To this he added the
claim that the company's rate base,
or value for rate-making purposes,
was admitted to have in it" more
than $1,000, 900 above the original
cost of company properties.
Whereas the company has insisted
a real valuation proceeding would
require many months of study and
costly employment of engineers and
accountants, Mr.. Booth declared
this was not the case. He argued
that a value could be arrived at
simply and quickly by merely taking
the original cost data, as may be
found in reports to the PUG and
the Federal Powe~ Commission
Company counsel, in rejecting such
views, suggested a revaluation would
be a very much longer, complicated
and serious matter.
Mr.. Booth turned also to diyi-
dends paid on common stock to SUD-
port his claim for full OPA inter-
Ventlon. He recited that in the past
10 years common stock dividends
had ranged from $50 to $65-on the
basis OF par value. He insisted that
customers had been overcharged on
depreciation accruals, on operation
expense charged for replacement of
properties worn out in customer
service.
The OPA spokesman declared the
commission should allow no more
than a 10 per cent tax rate as