New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-30
THE ATTACK.
Trust VIII Declare Bill Unconstitu-
tionaIL Recommendations in Brief.

Should the recommendations OF the Stevens
commission be drafted into general bill. coun-
sci for the lighting corporations will probably
attack its constitutionalty the ground that
it is local in It's effect and should thus be sub
mitted to Mayor Mcclellan. This was the in
tImation given to Tribune reporter yesterday
by c. J. Hemmens. one Of the electric corpora
ton lawyers.
Charles F. Mathewson. Of counsel for the
Consolidated. told the reporter that the rec
concentrations were impossible; that they
amounted to the absolute confscation OF a great
part Of the corporations investments in the
gas business. and that the passage Of any such
measure would be achieved only over the most
earnest protests of the corporations involved.
On every hand. in this city. and aside from
the obstructive tactics apparent at Albany yes
terday, indications were not wanting that the
corporations will contest the passage OF any
such measure to the last desperate inch and
that the bill along present lines will. metaphor
icaIly only crystallize into law over the bodies
Of the corporations counsel
If passed as general bill. attacks on it's con-
stitutiOnality; II a local BILL submission to
Mayor Mcclellan. with his signature to bill
favoring the gas corporations. not so long ago. as
precedent for his possible veto on bill which,
counsel say. would virtually chloroform the cor
porations-this Is the alternative held out
STATEMENTS OF LIGHTING COUNSEL
Radical and Objectionable was Mr.. Hem
mens's comment on the proposed reduction in
the price of electricity from 10 cents to 10 cents
a kilowatt. This reference was pale. however.
contrasted with the Incredible impossible and
astounding which Mr.. Mathewson's char
acterization of the contemplated reduction in
the price Of gas from 81 to 70 cents. Mr.. Math-
ewson said:
I have read parts OF the report and also the
recommendations They are incredible and
astounding, and amount to the absolute
fScatiOn OF a great part Of our investments IN
the gas business. The cost Of gas in 1904, in
Guiding interest on debsntures was shown TO De
6464 cents a thousand feet
The output about thirteen billion feet.
and if the company had received 20 cents
thousand it would thus have made about 10
cents every thousand. That would make
about 81 100000 the total net profit in the gas
business. This would H;San about 212 per cent
on the amount invested IN the gas business
Put it another way: The amount invested in
the gas business exclusive of what we have in
Astoria was on December 81 last. over SIS
100000, and if we were allowed 10 per cent on
that to cover dividends etc, it would amount TO
tora. our gas investments on December 81
amounted almost to S52.OOOOOO; 10 per cent OF
that would be $5,2O0OO0 These figures, mind
you. fully exclude the capital in stocks and
bonds of other corporations.
l cannot imagine that the legislature would
draft such a bill If il sought to pass such
measure it would be only over our most earnest
protests. / don't think even the committee.
when il studies its recommendations side by side
with the costs of gas making and other COndt-
tiOns, would seriously advocate the framing Of
such measure
CENSURE FOR OAKLEY
In the committees report Commissioner Oak
ley is severely censured in the following words:
The action of the Commissioner in signing the
contracts for 1904 deserves strong condemnation,
and has resulted in greatly embarrassing the
city in it's opposition to the payment Of exOrbi-
tant prices. The Mayor has disapprOved the ac-
tion of the Commissioner and by his orders
the bids for similar prices for the year 1905
have been rejected.
THE COMMITTEES RECOMMENDATIONS
The committee in it's report recommends in
brief:
That the price Of gas sold in Manhattan, Brook
be. AT most. 75 cents thousand.
That the the gas pressure @ @ IN AMY AMY street & ma9 should
That the standard of purity and the illuminating
That a proper system Of inspection be provided
the enforcement Of the law with reference
That the price Of electric current for. heat. light
and power purposes in the same localities should
be fixed n maximum OF 10 cents per kilOwatt
hour of current actually consumed.
the i city s" should be- Ied at 3O5 lamp year for
single lamps OF 2So0 candle power sonsuInins ms 45o
lamps. consuming 80 watts each, at the arc, should
That the city Of New-Yorz be given authority 10
utilize water power. now owned or hereafter ac-
use of the municipality, provided that additional
water shall he used that would otherwise be
quired by the city.
The final recommendation is, in effect, for
public service commission, appointed by the
Governor. with the Senates consent. to have
complete control of electric light and gas COM
panies the commissions orders on conhrma-
tion by the Special Term of the Supreme Court
to be enforcible by punishment for contempt in
case Of disobedience.
ENOUGH PROFIT IN 10 CENT GAS.
In its conclusions the committee declares that
it is satisfied that tho 80 cent gas rate Will af-
ford the companies a reasonable return on capi-
tai investment in the gas making business. The
investigation IL SAYS has shown clearly that by
increased pressure a quality below standard
may be made to furnish required degree of il
Elimination. entailing increased consumption at
increased cost.
The evidence. it says has shown likewise
that there is now no official inspection outside
Manhattan. where 1t is too infreQuent- II de-
clares that such an inspection should be made
by city officials at the city's expense, thereby
apparently throwing the inspection on the De-
partment Of Water Supply. Gas and Electricity.
As TO the price of electric current, the com
mittee declares that the 10 cents kilowatt rate
will permit proper return 10 the companies.
and that there should be such system OF In
spection TO assure a charge only FOR actual
current furnished.
As To municipal lighting. the committee de-
Continued second page.