Evening star., 1949-09-22
sCompany's S
App|ianceSa|es
Hit al Hearing
Opponents Charge
Unfair Competition,
" Fight J Pct. Rote Rise

An attack on the WASHINGTON
Gas Light Co.'S practice of SELL
ing and servicing gas appliances
was resumed today by one of
several groups opposing a 7 per
cent rate increase asked by the
company.
William A. Roberts, attorney for
the Gas Consumers and indie
pendent Appliance Dealers, which
has long been in opposition to
the company'S sale of appliances.
charged the company with "un-
fair discrimination" at a Public
Utilities Commission hearing on
the rate application.
Mr.. Roberts specifically charged
the company with underselling
independent dealers and "discrim-
mlnating against the poor con-
sumer in favor of large users of
gas appliances"
He called on the PUG to order
the gas company lend this dis
elimination" should it be proven
the cost of merchandising and
servicing is detrimental to the
consumers.
$1,0O0,000 Involved.
He said the more than 81 ,000,-
000' annual cost of merchandis-
Ing and servicing appliances was
included in the company's annual
report of operating costs.
Mr.. Roberts said there were
enough jobbers in the city willing
to take over the merchandising
and servicing of appliances should
the company withdraw from this
business.
The first witness called by Mr..
Roberts was George Harbaugh,
executive secretary of Associated
Professional Services, a research
firm of which Mr.. Roberts is a
partner. The firms services were
retained by the Appliance Deal
ers, MIR. Harbaugh said.
Mr.. Harbough introduced sew
eral charts showing amount of
business done by plumbing firms
in the area. Included in them were
reports by the plumbers questioned
that they would enlarge their
merchandising operations if they
did not have to compete with the
gas company.
Right to Object Reserved.
After a discussion as to whether
the charts were directly related
to the problem a gas-rate increase,
Stoddard Stevens, chief counsel
for the gas company, said he
would allow testimony to proceed
but might object at a later date
to inclusion of the charts as evi-
dence. e
Mr.. Harbough refused to ret
MIR. Stevens examine the question
naires from which the charts were
drawn on the grounds they were
"just like tax returns and were
obtained with the promise ell in
formation would be confidential"
In yesterdays. testimony an
official of the Federal Govern
ment declared the gas company
could continue to operate at a
profit, if its additional annual
operating revenue were increased
by $545,000, instead of the $780,
900 yearly increase the company
seeks.
Under this proposal, gas rates
would be increased by a little
more than 4 per cent.
Amortization Discussed.
James K. Macintosh, assistant
chief of the public utilities divi-
sion of the Bureau of Supply, said
the lower figure would be ade-
quate, if the gas company would
amortize the cost of its CONVEX
sion to natural gas over a 15-year
period. The company now is au-
thorized by the PUG to amortize
ever a 10-year period.
He suggested that the COM
pany's investment in installations
no longer used because of the
conversion be amortized over a
reasonable period" However, he
said, the unamortized amount
should not be included when fig
uring the rate to be charged gas
consumers.
Outlines Plan 7
Under his plan, he said, the
company, in a normal" year
would show a profit on depre-
ciated property after the first
year, if the rate basis remained
the same. This would be over and
above the 6 per cent fair re-
turn" profit allowed the gas COM
pany by the PUG.
Mr.. Macintosh figured this
profit would be $1,260,000 after
is years. He recommended re-
bates to customers after $100, 900
of this was accumulated.
He also said the PUG should,
in case Of an authorized increase
at this time. specify the rate raise
as a temporary one.
After the amortization is COM
pleted." he said, customers
should not have to prove their
right to recapture what was taken