New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-04
CIRCUIT NOW ENJOINED.
INCONSISTENCY SHOWN.
s;pnsd a Report Last Year adverse
tn the Gas Com paraaes.

,..,or by william R. Hearst and the
AZ 80 light Of report signed by Mayor
controller Grout and President Fornes
i. -laces the Controller in position ircon-
-. with his attitude a year ago were the
-.os, important DEVELOPMENTS Yesterday in
W. -. AGAINST alleged excuses by the Gas
Trust ,or,.a6 ,-,+h an o-5er
-. hv Justice Marean. in Brooklyn, restrain
" ~, from certifying TO the bills of the va
ZIG . I,ghting companies for light served to the
...r IN 1908 The order is returnable on Dec g.
ca. rustice Marean will hear arguments.
Hearst is the complainant in the appli-
...,on m Justice Marean- Through his attorney.
~1a-sn,e J. Shearn, he declares the prices
snaroo5 bv the gas and electric lighting COM
~a-,er sxorbitant and the proposed payment
against public policy.
w Grout declined to discuss the order served
nm, him beyond saying that he did not believe
q. vrould be made permanent when the court
had the facts.
n 1898 the bills Of the lighting companies
,rsrs held I'D because it was maintained that
the prices charged were TOO high. After hight
that lasted a year the Tammany Board OF ks-
innate and AppoTGonment gave in ana the city
agreed TO pay the bills in full with the interest.
II the course taken by Mr.. Hearst as tax
MAYER. should result in forcing the companies
to sue for their bills it might relieve the COM
panies from the concessions made TO the city
and would leave their claim for SZ0o'Voo inter
est as Il was before the agreement was maze put
at the same time it might result IN radical
changes in the relations between the Gas Trust
and its patrons.
Mr. Grout also said that in case anything
should occur which should stop the consumma-
he foh+i Y,rr
NAMES and the Controllers Office 1t would re-
store the case 10 statu quo, in which event the
companies would have the right to SIZE the
city for the full amount of their bills. Plus the
interest Of little more than $250000. That
interest, under the agreement just arranged. the
companies have agreed to forego.
Controller Grout finds himself in an extremely
embarrassing position by the revelation that
contracts opposed by himself year ago are ac-
ceptable 10 him now. a year ago he fight
ing the Gas Trust. Now he finds no occasion
to fight 1t. A year ago he found ample justin
cation. he said. for holding up the Consolidated
company's bills. He was then Fusion Con-
troer. Now he is a member of the Tammany
Board Of Estimate and Apportionment.
Al the meeting of the Board of Estimate and
Apportionment on December 4. 1903. the fol-
lowing report, signed by Mayor Low. Controller
Grout and President Fornes. was submitted and
adopted by a unanimous vote, with the excep-
ton Of Borough President Cassidy of Queens:
We are firmly of the opinion that a city official is
not justified IN accepting a bid merely because the
statutory requirements as to public advertisement
hare been complied with. The theory that the
what is fair and reasonable price falls to the
ground when there is real competition. When
fair price for article cannot be reached or
es ~ % @ ~ h se}fIad afte jnWestgaton
o. and n hp
Under section l4s of the Greater New-York Char
ter the Controller has power 10 settle and adjust
al claims against the city, and through his ability
correctness OF any claim which may be fled with
lighting during the current year should file their
claims with the Controller. Any company feeling
aggrieved by his decision can doubtless by
scit what 1t may reasonably be entitled to receive.
The more the so-caIled compromise made by
the Mcclellan administration with the Gas Trust
is studied the more discussion it provokes. In g
nutshell, the compromise amounts to this:
The trust had bill for 81. 229. 40 43 against
the city for unpaid lighting bills. The interest
on this unpaid bill amounted to S242 Dos 81.
This interest the company waived on the city's
agreement TO pay the old account. At the same
uIre II secured a contract for 1900 new
Welsbachs at an increased yearly rental yielding
the trust a net increase in revenue as compared
With the previous yearly rate on each lamp, OF
Hloo, 10. To the casual observer this was a
good stroke Of business for the trust as 1t OBJ
tanned new contract with an increase in price
which in a little over two years will make up for
me RENTED interest. This deal was arranged
follows:
The city was using 5000 Welsbachs at an an
nual expense Of $50 each On the compromise
this rental was reduced 10 S24 70, Welding the
city net apparent saving Of 81 % per lamp, or
sZI'Zoo The same compromise provided for an
increase OF 1900 in the number OF Welsbachs
az ga 40. the same number of open fame lamps
having previously cost S17 30. While the Wells
oacAs are superior the cost Of the city's lighting
because OF the change was S126,375 a year, or a
1900 lights ''4t