The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-15
MAYOR ON STAND IN GAS SUIT.
TESTIFIES THAT OAKLEY AND
CIRCUIT ACTED IN coon FAITH,

High for LIghtlnG-Juttice Kelly
says the Court Cant Fix the Price OF
Gas-Argument over Producing Books
Mayor Mcclellan, Comptroller Circuit and
Commissioner Oakley Of the Department
Of Water Supply, Gas and Electricity we're
the star witnesses yesterday In Congress-
mans Hearst's suit before Supreme Court
Justice Kelly in Brooklyn to restrain the
payment Of 81 200 900 Of back bills for public
lighting TO tho Consolidated Gas Company
and the electric lighting companies.
The Mayor testified that he regarded
the price Of gas and electric lighting as
excessive In this city and that he had talked
the matter over with Mr.. Oakley several
times last April when the subject OF new
contracts came up. He did not know that
the Commissioner had entered into negotia-
tions for new contracts and had thought
that nothing was being done In the matter
between April and November.
when / learned that the new contracts
had been certified continued the Mayor,
Il sent for Mr.. Oakley and he explained in
detail just what he had done. He told
me that he had done the best be could
under the circumstances and believed
sincere. Nevertheless / questioned him
closely. as certain newspapers had stated
that his motives in making the contracts
were such as to furnish cause for removal
After you had investigated the matter,
did you not think that Mr.. Oakley had acted
In bad faithl' asked Lawyer Shearn.
i certainly did not replied the Mayor.
Had known all tho circumstances con-
corning the new contracts he might not
have sig ed them, but believe that what
he did was for the best interests Of the
city. l have known Mr., o kley for fifteen
years and | have never known him to do
a wrong thing"
do you believe that Comptroller Grout
also acted In good faithy'
In the best of faith. My opinion OF
his action is also based on what / know
Of him as a man..
In what way are you trying 10 prove
bad faith on the part of the Mayor?' asked
Justice Kelly Of Mr.. Shearn.
None Of the citys money could have
been paid without the approval OF the
Mayor replied the lawyer, sand he should
have stopped the proposed payment OF
the bills that were held up. He should
have refused TO sign the warrant and should
have begun an action TO annul the contract
on the grounds Of collision and bad faith
Then this suit Is Inherent IRON any
Otner taxpayer dCtlOn nave ever ntdiu
Of" said the Court. Suits Of this kind
are usually brought TO prevent city officials
from doing some wrong act and not be-
cause the Mayor failed to institute a suit
TO prevent some subordinate from doing
wrong act
Comptroller Grout testified that in his
opinion Mr.. Oakley acted In good faith In
signing the contracts. The prices charged
for gas and electricity seemed 10 him eX-
oessive then and he still thought those
prices Unreasonably high. As far as the
Mayor was concerned h was not a party
TO the settlement, In fact he had nothing
10 do with the matter at all.
Commissioner Oakley, who was on the
stand Monday, finished his testimony
yesterday. He said that one Of the reasons
why he had signed the contracts was be-
cause he believed II was unbusinesslike
matters Of such importance as public
Most Of the afternoon session was taken
up with an argument as TO whether the
plaintiff should be allowed to establish
from the books Of the various companies
concerned whether an eIorbitaTh price
was charged for gas and electricity. As
there are thirty-one companies concerned
and as their books would All several vans
former Assistant Corporation Counsel Carr
that life was TO short to allow
Of such an extended fishing excursion.
Of the Comptroller 20 make such an inves-
tigation before he certified the contract and
as he had not done 1t, it was for the Court
10 hear evidence as 10 the cost Of pro-
duction and the price charged for the SER
vice and 10 decide whether the disparity
was great enough 10 warrant the assump-
ton Of bad faith on the part of the officials
He said II would also be proper
for the Court to nass upon the reasonable
ness Of the rate charged.
You can't expect the Court 10 FIX the
price Of gas interposed Justice Kelly.
u would like 10 do II, but II isn't possible
Mr.. Shearn put Benjamin Whitley treas
urer Of the Standard Gas Lipht Company
and OF the United Electric ] light and Power
Company on the stand and attempted TO
show through him the cost Of maintenance,
distribution and production for the year
1908. He also wanted 10 20 back TO 1884,
the year that the Consolidated company
WAS formed and show just what each con-
stituent company had received for capital
stock and what It had spent on its plants
Justice Kelly held that such evidence was
not relevant TO the case. The matter was
still under argument when the court adj
journed. The hearing will go on to-day.