Evening star., 1943-03-02
Power
Continued From First Page.)

commission be consolidated into one
proceeding. but when Chairman
Flanagan said this question already
had been passed on, Mr.. Elliott
agreed that such a motion would be
''fruitless.
just before lunch hour adjourn
ment there was a f1areup over the
ruling with Attorney Nathan Lubar,
representing the Mid-City Citizens
Association. declaring the action IL
legal since the PUG majority had not
invited Mr.. Hankin to sit with them
when the action was taken.
Action Called Legal.
PUG Attorney Lloyd Harrison
sharply retorted the action was
entirely legal.
The commission is admitting as
intervenors spokesmen for the
Treasury Procurement Division, the
Public Buildings Administration, as
big current users and spokesmen
for the price administrator and
stabilization director-with a spe-
cit1c statement that the present pro-
ceedings are to be confined to the
notice of hearing for adjustments
under the sliding scale agreement.
Chairman Flanagan said the OPA
and Mr.. Byrnes were not interven-
ors "as a matter of right" or law
but nevertheless their agents would
be heard under the limitations
stated.
Thurman Hill, procurement divi-
sion counsel, has demanded heavy
rate reductions for the Govern
ment and other customers, threat
ening public ownership or use of
war powers, or use of "other RENE
dies" unless satisfactory rates could
be achieved otherwise.
In response to Government de-
mands for broadening of the present
case, Chairman Flanagan announced
for the commission majority that
since it feels there can be a rate re-
duction under the present proceed
ings, and since the PUG has planned
an investigation of abrogation OF the
sliding scale plan and return OF the
orthodox method of rate-making
and changes in the fundamental ele-
ments Of the plan. the present case
should continue as announced.
He brought out that the plan, in
use since 1925, brought rate reduc-
tions each year until 1912 and that
the basic rate of return had been re-
duced from the original IN per cent
to per cent.
Record Called Unparalleled.
1T is believed that this record is
anywhere else in the
country" Chairman Flanagan added.
In addition, the existing rates for
current in the District compare more
than favorably with those in any
other Jurisdiction.
Both the consumers of the Dis
trict and the United States Gov
have been the beneficiaries
of the annual rate reduction and as
the result Of the reduced rate Of
return allowed the company. The
abrogation of any agreement
through which such results have
been obtained is a matter of Sc
rious concern to the consumers,
and the majority feel that this step
should not be taken until 1t can
offer consumers some arrangements
which will be distinctly better than
those now in effect"
He added that the PUG major
ity was strongly Of the opinion that
abrogation or fundamental changes
of the plan should be made only
after a thorough investigation and
complete hearing and that there
should be no delay in the hearing,
which may result in an immediate
rate reduction.
Mr.. Hankin questioned whether
the ruling was taken as an action
of the commission, declaring 1t came
as a surprise to him and perhaps
others. He said the commission
never had held a meeting on the
subject and that he would write a
formal opinion dissenting from the
ruling.
Action Called Justified.
Mr.. Flanagan met this challenge
by declaring the action of the COM
mission majority was justified and
made necessary by the action taken
by Mr.. Hankin February Is, in send
ing urgent requests" to the stabil-