New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-14
TAMNANY AT GAS TRUST.
ELECTION DAY COMTNG.
DeIany asks $50 900 to Fight Pay
n1ent of City'S Bills.

Mayor Mcclellan. Charles F. Murphy and the
Corporation Counsel suddenly discovered yesterday
that It was about time to say and do something
severe about and TO the Consolidated Gas Com
psny- After solemn consultation was decided
ask the Board OF Estimate and Apportionment
and the Board Of Aldermen for special appro-
priation Of $4,000 with which to hire experts TO
fight the payment Of the city's lighting bills which
the Mayor says will soon aggregate $l50ooOoo
This Is the favorite Tammany method Of fighting
an abuse these days-get an appropriation and an
point commission. and then forget about e. all
IN the Hearst camp this method is unfeelinglv de-
scribed as the hot air. treatment. The Hearst
men last night made merry the solicitude OF
the Mcclellan administration for the ctys rights.
and ordered their young men to work on Mavor
McClellan's record on the East River Gas hill ana
the Murphy contract for the Astoria gas works
The solicitude OF the City Hall for the rights OF
the city was solemnly set forth at length yester-
day IN letter by Corporation Counsel DeIanv IN
the Mayor. M. Delany says.
Since the last provisional estimate of +bi. d.
pafunent was acted upon by the Board Of Esti-
mate a situation mas arisen to meet which the
c!iy vii nave 10 incur an additional expense not
otherNVIse provided for and therefore submit the
facts 10 you for appropriate action.
Tho claims against the city for the service OF gas
and electric light for 1903 1903 and 1906 exclusive
has refused payment OF these claims, and suits
have neen brought 10 enforce It, and these suits
Some Of the cases will soon he reached for trial
gd pc CT me nature Of the cys defence it
ness for expert Witnesses As the CHIEF SoaIrca Of
sroloxr,eDT If such men Womb ,a+-rs1I bs ~
gas and electric lighting companies small diftl
The position taken by the city will mark de-
parture from the attitude heretofore generally
vice and it Is therefore of the great
tsred from the outset To do 50 Viii involve
long and determined struggle in the courts
any additional expense. and Mr.. Burr, my as
sistapt, is now PREPARING them fer trial, but the
and VIII explained. have to employ this ndis-
The questions raised by the answers which I
have interposed will show the necessity Of the
course / propose
hnauon for the purpose OF controlling and regu-
lating. and did control and regulate monopoly,
common use for light and other purposes and that
such combinaton or consolidation is against public
second--That becatse of such monopoly there is
gas or electricity In the city of New-York. and
that the only manner in which such market value
duction and distribution, adding thereto a sum
10 the hazard involved
several years prior thereto. there has been no com
and that the prices BID or CHARGED tbeFefGr b
been in all cases the same for similar service
Fourth-That the prices charged by the companies
above the fair and reasonable value of such com
Fffth-That no contract existed between the com
panies and the city during the year 1903 to the
said companies That the proposals issued 10 ali
bidders for such year contain the following para
''30. The Commissioner reserved the right to re-
Jet any and all bids estimates If the Board of
Estimate snd Apporlonment shall determine 1t for
The best interest of the city so to do"
u me Teco1nme e Of the Commssio3er Of
L. 1893 DID determine that all bids for public light
ing should be rejected. and so resolved on or
sloner did thereupon reject the companies bids
on OF about December S, 1903, the ground that
sonabIe and excessive
Sxth-That the Commissioner of Water Supply.
Gas and Electricity had and has no power to exc
cute contract on behalf Of the city OF New-York
commodity and service rendered. during the Year
IsE or at any other time; that because of the
and the combination which existed to control and
recton of the Mayor ali bids FOR 60 oL,S$ iSo+
lighting fer the -!ear 1905 were rejected.
go!I9uons were and are bound to furnish light and
Igntlng service TO the city and are entitled TO re
settle claims duly fled for services rendered and
coTnmodit;es supplied at the reasonable and fair
We compelled these companies to continue to
serve the city with gas and electric lighting, and
refused TO pay them the bills rendered for such
where the question will be finally determined as to
utility corporations in their relations the city.
and what IS fair and reasonable compensation for
public utility corporation is a creature of law
and has no rights except those conferred upon 1t
~ the people, and that the people have the right
10 so control 1t as to make ii subserye the public
interests.
Before these questions are finally determined in
the courts the claims of these companies
will probably amount. with interest, about S5.-
"1l,1o So that this whole situation IS Of the
most concern 10 +he people Of the city.
There are pending at the present writing more
than twenty actions brought by these companies
against the city in each of which expert testimony
will be required.
This department will therefore need appro-
priation Of $1,000 to properly defend these actions
md secure the best and highest character of eS-
pert testimony all the subjects involved in or
der TO sustain the position taken by the city III
this most important litigation.
Mayor Mcclellan in answering the letter, says
Re will lay the matter before the Board Of Esti-
mate at once.