Evening star., 1950-12-21
Ban on Gas Rate
Increase Is Upheld
By Appeals Court
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Continued From First Page.)
evidence on the subject of depreci-
alton allowances charged the
consumer in the abandonment of
the plant.
Judges Henry w. Edgerton and
Charles Fahy joined Judge
Bazelon in the unanimous deci-
sion.
Inadequate" Record Cited.
Regarding the "inadequacy" of
the PUG record in the case, the
appeals court had. this to say:
Despite the broad limits al
lowed the commission, it remains
imperative that its findings, under
whatever formula adopted, be
based on substantial evidence in
the record"
The court pointed out that
although the commission made
findings on such points as the
company's rate base, estimated
operating expenses and probably
revenues under the proposed rate
increases. the commission made
no inquiry whatsoever into the
issues necessary to the determine
ton Of fair rate of return"
The court pointed out that the
only reference to rate of return
appearing in the PUG opinion was
that a return of less than 4 per
cent would be obviously made
Quate to maintain the company
in a sound financial position
Although PUG listed this state
ment as a finding" the appeals
court found that there was mo
evidence on this essential issue"
Rebate Awaits Company Action.
Whether the "overcharges" COL
lected by the gas company in the
last year under the rate increase
will be distributed to the con-
sumers Immediately depends on
whether the company decides to
appeal to the Supreme Court. The
estimated 100000 collected to
date has been frozen under an
earlier Appeals Court ruling pend
ing disposition of the present
appeal.
AS for the present status of this
fund, Judge Bazelon stated fatty
that the sums will be distributed
to rate payers"
Everett j. Boothby. president
of the company. said he was un-
able to say at this time whether
the firm would appeal.
We've just gotten word of the
decision" he explained. I'VE will
have to wait until we read the
opinion before deciding what to
do"
Mr.. Baker. on learning the ap-
peals opinion said it was a nice
Christmas present" He said that
if the gas company took the case
to the Supreme Court. he would
defend it. He said he felt the
Supreme Court might not review
the case because of the nature of
the issues, but said that was only
his first reaction.
Mr.. Baker is chairman of the
Federation of Citizens Associa-
tions' public utilities committee.
He has been named for The Star
award this year for outstanding
civic work.
Baker Aided by Lawyers.
When he won the first bout, the
decision from Judge Goldsborough,
last June. Mr.. Baker revealed he
had spent $11.
AS the case went to the appel
late court, Mr.. Baker had on his
side William A. Roberts of the
law firm of Roberts & Ennis.
I'm sitting it out as a client"
Mr.. Baker said. Although he is
in the case as a private citizen,
Mr.. Baker actually is the voice"
Of the Federation in the case.
The civic body entered the case
originally, but was ruled out be-
cause it was not a consumer of
gas. Mr.. Baker had put his name
in the suit in case this happened.
Mr.. Baker estimated the appel
late court case added another 5000
to the cost of the fight. The
money expended almost exhaust
ed the funds raised by the Fed
Grafton in appeals to the public,
Mr.. Baker continued, and if a
Supreme Court case has to be
prepared, more money will have
to be raised.
He said that he had an agree
ment with Mr.. Roberts only for
the Court of Appeals case. Who
will handle the case if it goes to
the Supreme Court will be settled
later, he added, and he is unable
to discuss it with Mr.. Roberts
because he is out of town. Mr..
Roberts handled the case with
out compensation.
Mr.. Baker. an examiner for the
Interstate Commerce Commits
sion. is member of the bar. How
ever, it was his first appearance