Evening star., 1943-01-12
S34,524 Counsel Bill.
10 Gas Firm in Rate
Case Hit by Hankin
PUG Majority Permits
Account Shift but
Reserves Judgment

The size of bills paid by the Wash
ington Gas Light Co. for legal serv-
ices at the recently-ended rate hear
ings ($34,52426) yesterday caused
new fireworks at the Public Utilities
Commission, set off by Gregory
Hankin, minority member.
James H. Flanagan, chairman, and
Col. Charles w. Kutz, Engineer
Commissioner, approved a request by
the company to transfer the bills
from suspense account to operating
expenses, while reserving Judgment
as to the "reasonableness or propri-
ETY." of the items to the next rate
| case.
Mr.. Hankin promptly issued a
sharply-worded dissenting opinion.
attacking the "hasty action" and
questioning the motives of the COM
mission majority, suggesting that
the move was to save the company
from paying higher incomes taxes
for 1912.
Flanagan Explains.
Later. Chairman Flanagan, asked
by reporters for comment, said:
Sometime ago the commission
established suspense account to
which should be charged expenses
before regulatory agencies. There
were two purposes: One. to earmark
this type of expense, and, two, to
permit amortization of extraordinary
expenses of this character when i'm
mediate write-offs of such would
result in distortion of the company's
accounts. -
The fees and other expenses
now involved were approved by
the management of the company.
At this point, our commission does
not take jurisdiction. However, in
the rate case which will be held
in 1943, the reasonableness and
propriety of these particular items
will be considered as will all other
operating expenses of the company
for the test year ending June 80,
1913.
Restricts Hankin Copies.
"The commission has disapproved
the mimeographing at Government
expense of Commissioner Hankin's
dissenting opinions. 1t feels that
dissenting opinions should 60 only
to parties who receive orders from
which the dissent is taken. In the
instance case, our order concerns
only the Washington Gas Light
Co. and they are the only parties
to whom the order was directed"
Mr.. Hankin announced copies
of dissenting opinion would be
sent to Harry r. Booth, OPA utili-
ties counsel, to Charles A. Horsky,
counsel for the Washington League
of Women Shoppers, the Fort Davis
Citizens Association and other as
sociationS.
The bills were s18,O2O26 for the
New York law firm of Sullivan &
Cromwell $4,000 for the services
of the Washington firm of Hewes,
Prettyman g. Await; S1,016 for
Renah F. Camalier, associate coun-
sci, and $487.15 for B. C.. Combs
for expediting the transcript of
hearings before the PUG and the
District Court.
Questions $4,000 Sum.
Mr.. Hankin recalled that he had
questioned, during the last rate case,
the reasonableness of charging to
the consumers all of $4,000 paid
Hewes, Prettyman g. Await; that he
thought perhaps $1,000 would have
been quite sufficient" He said from
the company's request it appears this
$4,000 was only retainer "and that
now the public is to be charged an
additional $4,000 for the services
rendered"
If this is reasonable, Mr.. Hankin
wanted to know, why the $t8,02026
to Sullivan & Cromwell?" He con-
cluded this discussion of multiple
counsel by saying he had observed
no need for employment of the New
York lawyers.
Also, Mr.. Hankin said he did not
think it was the function of the
commission ito help the company
avoid paying excess profits taxes,
He concluded that the effect OF
the PUG action was: at operates as
warning to the public that they
shall not question the propriety of
the charges of utility. The COM
pany can, in effect, say to the pub
lie: If you question the propriety
Of our charges, you will Immediately
be met with additional extraordi-
nary charges, which we need not
justify. All we need to do is to pay
out the money. put the amount in
suspense account, as required by
order No. 1919, and then ask the
commission for authority to transfer
the amount to operating expenses,
which will be done Immediately and
without question"
men," the report stated, "this would