The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-08
LIGHT COMPANIES SUE CITY
on UNPAID BILLS AND REFUSE
TO ANSWER CIRCUIT.
He Had warrants for Edison Oniclals
Had They Refused TO Appear and Now
Threatens Proceedings for Contempt
Their Refusal 10 AnaMe r.


Had They Refused to Appear and Now
Threatens Proceedings for Contempt
on Their Refusal 10 Answer.
II came out yesterday that the lighting
companies have at last begun suit against
tho city to recover on their bills for the
light supplied TO the city for the period
for which the bills were held up. Counsel
for one OF the companies announced that
these suits had been begun, and he made
point OF it as reason why the lighting
men should refuse to answer questions
In the Comptroller's investigation OF the
cost of electricity supplied to the city
Mr.. Grout heard the assertion with sur
prise He had not heard that the com
psnies had begun proceedings for the
recovery OF the claims involved in the in
vestigadon.
II was afterward learned at the Corpora
ton Counsers Office that out OF the twenty
seven companies which have claims against
the city sixteen have instituted recovery
proceedings. These companies include
practically all the larger corporations
doing business with the city, and the amount
they seek TO force the city 70 pay Ia proba-
bly, moro than 100000. II has frequently
been asserted that the companies, know
ing that they had overoharged the city,
would never go into court, but they have
gone into court.
In order to recover the companies Will
be called upon TO show that their claims
are Just and reasonable. The trial of these
sults. II was said yesterday, would more
| effectively bring out the information Mr.
| Grout Is seeking than his investigation
can. At any rate the plaintiffs are IN a
1 position to object TO answering the de-
PENDANT 8 questions before trial
Those called yesterday refused, although
| Mr.. Grout threatened to ask the Supreme
! Court to commit them for contempt MT
Grout even went to the extent of having
warrants prepared for the arrest OF the
| Edison officials if they had not recognized
| his subppnas These warrants were sub
mitted to Supreme Court Justice on Friday
! and the COMPTROLLER was informed by the
! judge that the warrants were properly
| drawn and that apparently the Civil Code
! gave the authority to him TO execute them.
| Such a sensational turn to the invest iga-
ton was avoided by the appearance OF
/ the Edison representatives at the hearing
Yesterday But appearing and answering
| are two things and the Comptroller now
/ proposes TO apply to the courts Tor the
| oommittal OF tho witnesses who dehed
| him Yesterday for contumacy. Then VIII
| begin a course OF litigation that can easily
) be continued until long after Mr circuit
! term has ended Comp.rolleT Grout him
! self. expects that the companies VIII
necessary. carry the point TO IT, nlted
| States Supreme Court. 1t Il apparent
! therefore that 40 far as 'ir. Grout Is con-
! cerned he will have TO deperd uDor me eH-
perts he has called from half a dozen large
cities TO determine whether or ot the prlces
charged by the companies are eStortionate'
The first witness called at the hearing
Yesterday WAS II NJ. Edwards. auditor OF
| the New York Edison Company. Before ne
was permitted to testify Henry d. hem
| mems and Samuel A. Beardsley. counsei LOT
the company, objected to the proceedIn gs:
! They coutended that the Comptroller had
no authority to pry into the private an AIRS
of the company that the bills rendered 10
the CITY we're based upon contracts which
| had been made with the city and that the
INQUIRY might be prejudicial to the SUIT
| which the company had begun TO recover
the money from the MUNICIPALITY ne
COMPTROLLER refused to heed the protests
Henry NJ. Yonge. the Comptroller per
sonal counsel then began to ask the que,s-
tions that upon advice OF counsel the VII
| nesses refused to answer.
What Mr. Yonge particularly trleu 10
get at was whether the company III piutiiHH
for public lighting contracts had taken into
account merely the cost Of the production OF
It's lighting or had made prices based on
the Capitalization of the company It's
bonded indebtedness and other obligations.
in order to pay Dividend. upon wateTed
stock. To al questions Of this kind Mr.
Edwards would make no reply Precisely
similar was the ending OF the eKamlna-
ton of Joseph Williams, assistant secre-
tary and treasurer of the New York Edison
Company ,...
as he called him. whom Mr. Grout has beer
after for two or three days past Is Ni &c oias
r Brady. first vice-president of the Edison
company. Mr.. Yonge called a subpoena server
to show that Mr. Brady had evaded ser e wee I :
but the witness after testifying that he hao
made several efforts TO see Mr. Brady
at his office and house, said that he had az
never once mentioned. in trying 70 reach
Mr.. Brady. that he had subpoena to serve
Mr.. Hemmens said that MIR Brady would
attend the next hearing now that 1t was
known that the Comptroller wanted him e
appear. An adjournment was taken unit
next Tuesday. at 230 p Nj.