Evening star., 1951-03-27
Lengthy DeIoySeenin$ lion
Refund to Gas Consumers
Company Must Woit
End Of Legal Processes
After High Court Acts

After High Court Acts
Washington Gas Light Co. off,
lcials today forecast delay of at
least several weeks in distribution
of more than 81 million in refunds
to 176,600 District customers.
The company must wait out
legal processes following yester-
days Supreme Court refusal to
review a lower court reversal of
increased rates which began in
1949. Then follows a mountain
GUS bookkeeping job, officials said.
The refunds will amount to
about $13.25 on the average gas
home-heating bill or $3.40 on the
average domestic cooking and ap-
Ipliance bill for the II month, ac-
Icording to rough estimates of the
company.
1t is not known whether the
refunds will be applied on bills or
distributed separately. 1t also had
not been determined today when
gas bills, which go out daily,
would revert back to the old rates.
Limited to District.
The coure decision represented
a near one-man victory for Ver-
non v. Baker, chairman of the
Public Utilities Committee of the
Federation of Citizens Associa-
tions.
Both the gas company and the
PUG could ask the Supreme Court,
within Is days, for reconsideration
of its refusal to review the case.
But it appeared unlikely that
either would. Such reconsidera-
ton, at any rate, is seldom given.
The company's 54,7O0 consum-
ers in Maryland were not covered
by the increase.
In upholding Judge T. Alan
Goldsborough's order setting aside
the rate increase, the United
States Court Of Appeals had or
dered funds from the boost dis
tributed among the customers. 1t
left undisturbed Judge Goldsbor-
|ough's order that the question of
rate increases be handed back to
the PUG for new and more de-
tailed hearings.
Single Handed Fight.
Mr.. Baker, as a private citizen,
pushed the suit against the rate
increase single e-handedly until it
reached the Court of Appeals,
where he was Joined by William A.
Roberts, former Peoples Counsel
for the District. BY then it had
cost Mr.. Baker a total of S11 in
cash.
Mr.. Baker got into the case as
Ia private citizen because the fed
Grafton is not a gas consumer
and therefore could not figure in
the suit.
Informed of his victory by a
reporter for The Star shortly after
the decision was announced, Mr..
Baker said, II feel very relieved
lit is all over. There was always
the possibility that it might 60
against me and that I might be
assessed some substantial costs
by the court"
Stockholders Get News.
News of the court decision
reached gas company stockholders
at the end of their annual meet
ing.
The refund figure, it was
learned, will include $415,0 re-
|ceived prior to May 81. 1850, an
other $412.000 received during the
rest of 1850. and more than $780,
900 received from the rate in
crease since the first of this year.
The rate increase. designed to
bring the company an additional
$750,000 a year. was approved in
November. 1949, by the Public
Utilities Commission.
Income Off 81 Cents . Share.
Observers estimated the re-
funds would reduce the company
net income for 1850 some 81
cents a share of common stock.
The decision came just as the
company was beginning negoti-
ations with underwriters to fix
the price for an offering Of ad-
ditional shares to stockholders.
No sales in company stocks were
reported on the Washington stock
exchange yesterday, but one in
New York was reported at S26 a
share, down half a point.
If the Supreme Court decision
had gone against him, Mr.. Baker
said, the costs assessed against
him might have mounted to more
than $4,000.
As it is. he said he believed the
funds raised, largely from contri-
buttons from citizens associations,
will cover the printing and filing
costs of something over $1,000.
Mr.. Roberts said his firm, Rob-
erts 81 Ennis, was representing
. L@.1 ~1l ~