New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-12
MISTAKEN, SAYS CIRCUIT.
.No,r Doubts Right Of Trust to
Demand Interest.

Controller GrOlit last night faced aooul III i0
gard to the contracts for city lighting. Desert
ing his Tammapy fellows, who have SHOWN
dfsposirion 10 give the Gas Trust about all it
could ask in the way Of terms, he declaIeu ms
determination to aid those who are fghting to
obtain fairer price for lighting the streets
NJ C,rort saws that IN approving the action
If for7n,issioner Oakley IN entering into a con-
+-ac+ far lighting he was under the impression
.ra+ the Gas Trusts bills were carrying inter
%, l,,5t he has since seen court decisions that
raise the question OF the possibility OF such la
biljty on the part Of the city. The benefit which
he supposed he was getting when the uus,
agreed a "comproase" to charge 10 interest
mus may disappear, he aserts- Mr. Grout also
frankly states that the Duhlic wants the issues
with the Gas 9rust fought out not compro-
niscd
Il vas told in The Tribune exclusively last
Friday that the city had no written assurance,
according TO information obtained at the Office
of Commissioner Oakley. that the Consolidated
would waive its claim for interest on the unpaid
bills. The company simply wrote to Mr. Oakley
that # the city would pay all back claims the
company would reduce the price from $l46 to
$40 for underground" and from $146 10 Sl3o
ior overhead lights
Mr. Grout's statement follows:
determined last Friday evening TO abandon
lie proposed settlement Of the gas and electric
lighting bills, for the following reasons
Firet: AT the tire ! negotiated the settle
rent ] did not understand that there was any
possibility that the bills were not carving IN
Ieres, ] informed that in a similar dis
pute IN 1899 1ne city paid such interest on the
advica Of the Law Department and l examined
The opinion then rendered. The liability for in
teTest is now questioned by competent attor-
neys who cite decisions of the courts which.
upon reading them, ] believe and am advised
ty my counsel. Mr.. Carr. 10 raise a question OF
he possibility of such liability. If The city is
lot liable for interest the benefit, which l sup
posed I was getting for the city disappears and
Iheregore the consideration for the compromise.
second: The fact which Influenced me IN the
fFst place % consioer an adjustment and com
J-onase o. these bills was the making Of the
t@D4 contracts. The validity OF these contracts
s nog attacked ia court by suit begun last
Thursday. and T do not consider that ought
% base any act OF mine upon contracts. whose
Validity is not questioned. The effect of such
contracts. II valid. is best illustrated by one of
'he allegations in the suit 10 set them aside. that
IS thar such contracts MAKE standard or
market price for the citv.
Third. IT has become very evident that the
general public prefers 20 have these claims
fought out by the city 70 the end. whether the
ci,y wins or loses IL Tnonev by making such
nght Every consumer in the city seems TO
have his grievance on account cf his own bills.
end 10 look to the prospects of litigation over
1he citys bills as likely to help the community
at large. There seems to he a desire that the
city should fight not only because OF the hope
of saving the city money. but the champion
of al private consumers
a Ct s to %s t2 into qs these nf 5 naR % f6 o
producing distributing gas and electricity and
fhe capital actually employed In the business, and
thaH ask NJ Henry YOngc. as my personal adviser
toanci Robert trTieT Monroe, who. COmmissiGneT,
FIRST questioned these bills and Mr.. Clarence j.
htesrn who. Tr HearsTs counsel, has brought the
laeSfio1s into "ouTt, "a with the Corporation
facnsel = represent in making such inquiry, so
A. 10 maEe II exhaustive the Controllers powers
permit
: have no interest % serve except the public
iRtf'est, and ] sought TO adjust these claims be
cause, On the EaCts and law as | understand
Them. such adjustment seemed to me TO De for
the CitE's interest Now. as such facts and
law are questioned. and the public evident
y, wishes these issues thoroughly tried out, at
whatever cost, ! viii 90 what my Official powers
permit 10 sift out thoroughly the unreasonable
hess Of these lighting charges. Whatever pride
OF opinion one may have in his own matters
and desire TO adhere to position once taken
such considerations cannot be permitted where
one IS acting as the representative Of others
besides which contest Of these bills TO the
end is the course which 7 would ALWAYS have
preferred and which ! was Influenced not to
adopt. heretofore. only by the belief that city
money might he saved by settlement.
EDWARD NJ. CIRCUIT.
When Mr. GroUt's statement was read to Cor
poration Counsel DeIany last night he said that
he had not been asked for an opinion and that
until that was done he must decline to discuss
the matter IN G1y way.