Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1899-07-08

and that contract, either express or
implied. to pay for gas in 1893, sum
in excess of the appropriation therefor
was void. Every member Of the City
Council Is probably familiar with the
two recent decisions of the Supreme
Court ia the Mcdonald AMI the Rogers
Park Water Company cases, I'm the
first of which the right of tax payer
to enjon the city from mourning an in.
debtctlness not appropriated for and
in excess of the constitutional limita-
ton Is sustained. and in the second the
doctrine Is announced that water
company can charge no more than a
reasonable price for what II furnishes.
From these two cases and from the
facts above stated. your committee il
satisfied that the Corporation Counsel
might have made defenses to the suits
above named. and 1t would seem from
the Mcdonald case that a taxpayer can
yet enjoin the payment of these judy
ments. The natural Inference Is that
IL tax payer can stop the payment of
these judgments. there Is some way by
tut Ni's Nuu sup tuCHs
Your committee would also call at.
tention to the following facts: The
gas company Is required to pay into the
city treasury 3la per cent. on the gross
sales of gas for the year. During the
year 1898 II paid or credited to the city
s245.219.43. liz an article published In
the Economist Feb. II, 1909. IL Is stated
that the gross receipts of the gas com.
pany were S7.265, 526: it's operating ex-
pcnses S3.I05,3O1. and net profits So
4IO.225; 3ia per cent on the gross re-
ceipts would be 1854, 293.41. an excess
of $4,000 on what was paid or credited
to the city. What would he a reason.
able price for gas can be deducted from
the above figures. The company, after
paying operating expenses. Is entitled
to reasonable profit. and in the pres.
ent state Of the money market pei
cent. Is good profit. Fifteen million
dollars would probably replace the
plant Of the company. and 3 per cent
on that, added to the operating ex
penses, would amount to about 5000.
900, leaving about $2.25O.O 900 excess on,
of the gross receipts; that IL, about two
seventies of the gross receipts of the
company for the year 1903 was In ex
cess Of what would pay Its operating
expenses and good profit on Its In
vestment; consequently, its charges
might he reduced by two.sevenths ant
still leave 1t good profit; In othcl
words, the rate Of 81 per Thousand
cubic feet should be reduced to abou
- cents.
Your committee finds that In the yen
1903 the city paid to the gas company
including the 3h per cent. which wa
credited by the company on Its bill
included in the above mentioned jude
ments. $415,336; that the city Is en-
titled to an additional $1,000, a. abov
stated, on the percentage Of gross re
celpts. and that total bills rendered b.
the company for the year were $01S
247.00. II q cents for one thousan
cubic feet be o reasonable compenss
ton. then the company has been abou
, paid In full.
Your committee would, therefore, re,
ommend that the Corporation Counse
Ike directed to lile q bill to Get asid
these judgments and for nm accountin
with the gas company, and that tn
Comptroller be directed to Withhold
payment Of the judgments until tn
city or some taxpayer can get the ma
ter to q hearing In court, and subm
herewith q draft Of o resolution to thu
: effect and recommend Its passage.
Respectfully submitted.
WILLIAM SCHLAKE,
/ WILLIAM G. L. ZIEHN.
y, JOHN +. NEAGLE.
WILLIAM MAYOR,
Il A. w. BEILEUSS,
WILLIAM T.. MAYPOLE.
Resolved, That the Corporation Coui
sci be and he IL hereby directed to al
a bill In chancery to set aside all judi
ments against the city In favor Of tn
,, Peoples Gas Light and Coke Compan!
, and for an accounting between the cit
. and said company, and
Resolved further, That the ComptrO
, ier he and he IL hereby directed to will
, hold payment Of such judgments fc
, one month after the passage hereof.
The report and resolutions Wei
: adopted unanimously.
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! THE NEW STREET CAR MANAGE