Evening star., 1949-09-24
Star Staff Photo.

IIyWCS VI VPPVnCIIN
To Gas Rate Rise Held
Misleading by PUG
Figures presented by a group
fighting a requested 7 per cent
rate increase by the Washington
Gas Light Co. and bearing on the
firms income were rejected by the
Public Utilities Commission yes
terday as misleading because Of
errors in calculation.
The commission gave Attorney
William A Roberts. representing
the group. the Gas Consumers and
Independent Appliance Dealers
an opportunity to present new fig
ures when the hearing resumes
Monday.
Commissioner James w. Lau-
derdale at the hearing in the Dis
trict Building told Mr.. Roberts
he was utterly amazed and sur
prised" that he presented the fig
ures, giving an untrue picture OF
the company's financial setup.
Mr.. Roberts accountant wit.
ness. George Harbaugh, executive
secretary of Associated Profes-
sional Services, an engineering
and accounting service. changed
his previous figures on the witness
stand.
PUG Chairman James H. Flana
gan declared he was Thoroughly
confused" by the figures. At one
point. Mr.. Flanagan said there
was an error of $4,000, 900 in the
figures Mr.. Roberts had vouchec
for.
Both Are Amazed.
Mr.. Lauderdale declared: IT an
utterly amazed and surprised, Mr.
Roberts. You say this company il
charging more than it should bt
allowed. You have wasted time
and money and I am utterly
amazed"
| Mr.. Roberts, looking at Mr.
Lauderdale. retorted:
II am utterly amazed"
Chairman Flanagan then de.
clared the commission feels ar
exhibit. offered by Mr.. Roberts
designed to show the computation
Of the rate OF the conpany's re-
turn as Of December 81 last, "is
so full of palpable errors" that II
could not be accepted.
This paper is not Of any value
to the commission in the decision
it is required to make" the chair.
man said.
Company counsel pointed out
that Mr.. Harbaugh testified or
Thursday the company was max.
ing a IA per cent return on its in.
vestment. Yesterday, Mr.. Har.
baugh testified on the basis of fig.
ures he revised that it was II pei
cent.
Conflict Denied.
Then, when Stoddard Stevens
chief counsel for the company
had Mr.. Harbaugh make calcula
tions on the stand on the basis OF
figures supplied by the company
the accountant obtained the rat,
of return as 4.079 per cent. The
company contends it made
rate of return of 4.25 per cent OF
its 1s48 investment. Mr.. Har,
baugh stoutly maintained ther.
was no conflict in his testimony
The company contends that Mr.
Harbaugh's figures presented ear.
lier in his testimony yesterday
were in error and that he failed
to take into account certain prop.
critics Of the firm in the District
such as the West Station anc
other items in reaching his re.
suits. He also duplicated some
figures. the company said. Com.
pany lawyers advised the com.
mission Mr.. Harbaugh failed tt
include large investments in prop.
erty and facilities within the Dis.
ftrict used here to supply gas te
consumers.
Mr.. Harbaugh testified $21,.
592, ,021 should be used as the tota,
value of the company's investment
in the District for rate-makine
purposes as Of last December 81
But the company contends its rate
of return Of 4.25 per cent average
return was based on a total in.
vestment in the District oi
$32, ,594 800.
Procedure Opposed.
Attorney Roberts objected te
Mr.. Harbaugh being required tt
make calculations on the stane
about things to which he did not
testify, but the witness was al.
lowed to proceed.
Mr.. Stevens put into the recors
an excerpt of the minutes of e
meeting of the board Of directors
of the Master Plumbers Associa.
ton, dated May "a, 1e49. Thi.
showed the law firm Of Robert.
g. McInnis and Associated Pro.
fessional Services were engaged tt
prepare accounting. engineering
and other data and appear before
administrative agencies and the
courts here toward the end thai
the Washington Gas Light Co
shall terminate its merchandising
business In gas heaters, gas re-
frigerators. gas ranges and watel
heaters"
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