Evening star., 1949-09-23
P|umbersHit
Competition by
GasCompany
Spokesman Calls Sale
OfAppIionees Unfair
At PUG Rate Hearing

At PUG Rate Hearing
The Washington Gas Light Co
is engaged in unfair and unjust
competition" in its sale of appli-
ances. George c. Webster, chair
man of the Public Utilities Com
mittee of the Master Plumbers
Association, testified today at the
Public Utilities Commission gas
rate hearing.
The company is seeking a 71a
per cent rate increase.
Although Mr.. Webster finished
his direct testimony shortly before
noon. he failed to tell about
charges of intimidation" by the
company as William A. Roberts
lawyer for the Gas Consumers and
Independent Appliance Dealers
had promised earlier he would.
Mr.. Webster told the PUG that
notices advertising the sale of ap-
pliances. placed by the company
with its monthly gas bills sent to
consumers, places the company
at an unfair advantage" over other
sellers.
Conferences Held.
Stoddard Stevens, chief counsel
for the gas company, taking over
cfoss-examination of Mr.. Webster
shortly before noon, charged that
the whole motive in this phase OF
the case was a selfish one on the
part of the Master Plumbers to
drive the gas company out OF
the equipment business"
On direct examination, Mr..
Webster testified that various con-
ferences were held with the gas
company regarding its unfair
trade practices. He declared the
main purpose Of these meetings
was to build good will between the
company and the trade members
and foster cooperation. He as
serted there was no attempt to
gain advantage for the trade
members in these gettogethers. He
told the commission: I'VE have
continually fought to get fair
practice in these conferences with
the gas company but in every
specific instance we did not get
an answer"
Mr.. Webster testified he was
concerned" over the jump from
$355,000 to over 100000 in over
three years in the company's
budget connected with gas appli-
ances; expansion of the company's S
gas appliance advertising and
personnel increase because "it
would mean an increase in gas
rates"
Free Service Cited.
The witness informed the COM
mission that the free service"
given customers by the gas COM
pany was used as a weapon" on
buyers in the firms sales depart
ment. Mr.. Webster declared that
talks with Potomac Electric Power
Co. officials showed they are "ex-
tremely well satisfied" at having
gotten out of the business of
merchandising appliances.
PUG Chairman James H. Flana-
gan broke into this line of ques-
tioning to comment that this
does not help us in this question. :"
But Attorney Roberts contended
that it showed that another large
utility has been successful, al
though it dropped its appliance
business.
Mr.. Roberts stated yesterday
that some persons in a position
to join the opposition withdrew
after they were approached by the
gas company" He said he had
sworn testimony to that effect: he
later told reporters Mr.. Webster's
testimony would deal principally
with the charges.
He said the gas company had
the influence and control over in
dependent appliance dealers Ito
take retributive action" against
those who opposed the rate in
crease.
And I think they would" he
added.
It was then he made the charge
some individuals and groups al
ready had been approached.
Mr.. Roberts made his accusa-
tions against the gas company as
he sought unsuccessfully to bar
from the record a list of the per-
sons or firms belonging to the ap-
pliance dealers group.
After considerable discussion,
admission of the membership list
to the record was allowed by
James H. Flanagan, PUG chair
man.
George Harbaugh, executive
secretary of the Associated Pro-
fessional Services was questioned
closely by Mr.. Stevens concerning
differences" between some fig
ures in the company's 1948 report
and Mr.. Harbaugh's analysis of
the company business for the
same year.
Group Made Analysis.
The analysis was prepared by
the Associated Professional Serv-
ices in behalf of the appliance
dealers. Several of the conclu-
sions differ from figures offered
In the company report.
At one point. Mr.. Roberts said,
the analysis showed the gas COM
pany could have paid all debts
and operating costs and retired
the cost of conversion to natural
gas If they had not voted such
large dividends over the last 10
years.
Mr.. Harbaugh. who was on the
stand all day yesterday. was to
resume his testimony after Mr..
Webster finishes.
Further examination of some
of the analysis figures was pre-
dicted by Mr.. Stevens, who said