New-York tribune., 1906-04-04
CHEAP GAS NOW LAW.
Governor Signs 8O-Cent Bdl-A Re-
publican Triumph.

Albany, April 3.-ExpTessly denying the coi-
fscation" argument on which the gas companies
based their case. Governor Higgins signed TO-
dav the Page-Agnew SO-cent gas bill This bill.
he explained was merely another part OF the
recommendations of the stevens committee
which the Legislature did not heed when "
passed the bill creating the gas commission anu
desnite the declarations that by IL the Lessla-
ture was usurping the powers Of its COMMISSION
the duty of all good public servants was ciear.
The enacting of this law. the Governor noius'
is distinct rebuke TO the grasping corporations
Incidentally in his memorandum or approval
he administers sly jab at the municipal oNhei
shin neople on the score OF ''confiscatton, per-
r,itted by political expediency which looks no
further than the next campaign.
By signing the hill. the Governor has COM
pleted the work which he himself urged IN ms
arruaI message TO the Legislature. and which
two Republicans, Senator Page ana MI Asre"'
in their respective houses aided strongly IN
,,,,o 20 nerfection The measure is regarded
here as diatinct achievement for the hepu'-
iican administration.
Governor Higgins in approving the DILL set
forth his reasons at length In his memorandum
he said:
The cornorate interests affected by this lesis-
Iation contend that iaasmuch as the Legislature
of 1905 created gas commission with power 70
regulate the price of gas after invesusauon' II
is inconsistent now to fix such price oy law n
brief reference to the history or gas lessid'ioii
refutes this plea. The joint committee ol tiio
Senate and Assembly was appointed 10 ih'e|"
gate the lighting question only so far Do eoi,
cerned the city of New York. After TAXING Hlu0ii
testimony on cost of production value OF plant
and possible income of the gas companies 'ho
committee reported number of bills. lnciua-
for NeW YORK C1Iy. anu
also n state gas commission bill the latter lot
the purpose of dealing with the question geneI-
a!Iv with sueciaI reference to other munlclpali-
ties where no legislative investigation haa oeei
had to guide the action of the LEGISLATURE. 49,
Its findings sustain this Dill and JUSTIFY tns
conclusion that present rates are excessive nau @
All its hills become law no action by the gas
commission would have been necessary IoL ~
York City. and no such action was oIiS S, a.
contemplated The Legislature Is now only car car
rvins into effect the original recommendations
of its committee. The SO-cent Dill haVlhE peeIl
defeated last winter. it became necessary 10 re-
sort To the commission to obtain the desired re-
lief which the committee sought TO give 1orth-
with But the Consolidated Gas company not
only questions the constitutional power OF lne
legislature to delegate to commission the au-
thority TO regulate rates. but challenges IN tne
courts the fairness of the So-cent rate ar 60 go
established by the state commission TOT the Dol
Ough of Manhattan. 1t is therefore entirei!
consistent and proper for the Legislature 10 oeal
with the matter directly and as enecuVeH as
nossibc rather than to abandon the original
scheme of legislation recommended oy the Ooii4
mittee
Distrust of democratic institutions prevails
where the self-interest OF the few is potent ana
the self-interest of the many IS poweriess;
where wealth rather than manhood deteIIIiiIes ne
who shall enjoy the choicest privileges IN the
community and where public service corpora
tions flourish while consumers suner Distrust
of democracy likewise prevails where wealth is
constantly threatened with confiscatton by uTl-
tust and unequal laws The hope of democracy
lies not wholly in municipal ownership, where.
the fair incentive of personal gain being Win
drawn. public utilities may perhaps De operated
in a shiftless manner and at a loss, so that
taxation Of property must be resorted 10 IN
order that such utilities may be enjoyed at less
than cost. 1t lies rather In the careful restric-
ton of companies to fair return on the value
of their investment Confscation, II permitted
than the next campaign for the rule of right to
govern its action. is prohibited by the constttu-
tions of state and nation.
When one devotes his property 10 public
use he grants the public an interest in that use.
and must submit TO be controlled by the public
for the common good. The state has the power
TO make reasonable regulation of the charges
for services rendered by corporations engaged
in the business of manufacturing and selling
illuminating gas To what extent may this reg
ulation gO2 The authorities must fix upon
price which is reasonable. The power to regu-
late is not a power TO destroy. The property OF
a corporation cannot be wrested from it for the
benefit Of the public Its stockholders should
receive some compensation for the of the
money they have invested Yet the courts have
held that judicial interference should not
unless the case presents clearly and beyond all
doubt such fragrant attack upon the rights of
property under the guise of regulation as to
compel the court to say that the rates pre-
scribed will necessarily have the effect to DENY
Just compensation for private property taken
for public
All laws regulating rates subject to Judi
cial review. Judicial inquiry may best deter
mine where regulation ends and confiscation he
gins. but the power and the duty Of the Legfs-
lature in this case seem clear. and the example
of prompt and vigorous action should be q re-
straint on eXtortiOn and greed and welcome
evidence of the loyalty of public servants to the
interests Of the people
There was heavy trading in Consolidated Gas yes
terday on the New York Stock Exchange the sales
aggregating about 55,00 shares a larger volume of
business than IS sometimes handled I'm this stock IN
the course of an entire month. The price touched
137}s in the morning trading the lowest level FOR
many years but after the announcement that the
Governor had signed the SO-cent gas bill an active
purchasing movement began. the stock advancing
TO l4li+ late In the day and closing at I43k Its
highest price last year pa on March 8 and its
lowest price 175, in November II is commonly he
Heved in Wall Street that the yearly dividend rts
Will he reduced from to per cent and N il re-
ported tnat the company is preparing to test the
consttutiOnality Of the new law