New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-21

Says Eighty-Cent Rate Is Fair
Com paRes WI Fight.

Mayor Mcclellan YESTERDAY approved the Page
Agnew eighty-cent gas bill and returned it to the
Governor with memorandum giving his reasons
The bill provides that the companies shall not
charge more than the eighty-cent rate i'm NIanhar-
tan BROOKLYN with the exception Of Coney Islaudl
and in certain parts OF The Bronx
The companies viii fight the bill being conhs-
catory in IFS nature and therefore unconstitution-
al The Mayor says this contention OF the compa-
MES is overthrown by the report Of the legislative
committee and the ctty's experts
During Mayor NcClellan's first term he signed
the Remsen gas bill, which would have granted
valuable privileges TO the companies Governor
Odeu vetoed IT, but the Mayors action was used
against him I'm his second campaign Last year.
however. ne supported bill reducing the price Of
gas but he states in his memorandum, 1T
failed, unfortunately, through the opposition Of
some of the citys own representatives"
A letter sent by c. F. BaImanno the vice-presi-
dent and cashier Of the Mechanics Bank.
Brooklyn. 10 the Mayor asking him 70 disapprove
the bill. was made public yesterday. II declares
that the bill is equivalent % per cent tax on
the industry OF a large number Of working people
in Brooklyn"
". \. Dykman. representing the Brooklyn Union
Gas Company. said AT a hearing on the bin last
week that his company had its back UP against
the wall and would fight the new rate 70 the LAST
ditch. The memorandum of Mayor Mcclellan fol-
lows, m part
The enactment OF this measure will IN my judg-
mea5, serve as a PTo1ffS5'on TO l99 Pu9ng asSinsJ
furnishing illuminating sas tn the city OF New
fair 10 the public Both producer and consumer.
under such circumstances are entitled justice.
awaiting sdiudfcation in its contests OF All the
cams q b tlS gST 63 ts I {5r '' lngTe
peCted. will silence every question on this point
Of the gas companies, I would withhold my APP
prevail OF II under an CIR Bul II IS not
representatives OF the companies 10 thar effect are
overthrown BY the report 81 the legislative COM
mttee which last year examined the subject.
Wei as ny M '47 ~ ~ 80
who have been engaged IN the clt3 oehaL IN the
IRs poSJ I r {5 i Iias S NOR l Is g 10 9
eminent. 1t is no declaration Of new rights or du-
the common law ana is in fact promottve of every
interest involved either public or private
Although # is generally assumed that the Gov
ern0r will sign the SoCent bill. counsel for the
Consolidated Gas Company are admitting no such
assumption-publcly. at least They intend TO fight
every step.
we do not assume that the Governor Will sign
the bin until he has heard all the facts We have 90
present said Charles r. Mathewson. last nlZht
"He will undoubtedly grant "a hearing on the bin.
at which time We viii show that to- force TO
furnish gas for 50 cents is according to the undis
franchsesl. presented before the legislative inves-
tigatlon committee a practical connscstio our
Gas Commission admits We are entitled to per
NIr Mathev-son said it had not been determined
Just what form an action 70 test the constitution
IL might come up In the form OF stockholders suit
to restrain the company from furnishing gas at 10
cents. alleging waste OF the stockholders money.
This is the the Income Tax law was brought
before the courts.
The new rate goes into effect on May D. n the
Governor signs the bin. aud the lawyers for ,he
Consolidated Gas Company are Worrying about the
possible tanEle that the thousands of accounts
get into while the question of consttutionaHtv Is
being determined
-Tbs apDaaI from the 81 cent order or the Gas
Commission must be filed With the Appellate III
vision by about April I. the same arguments that
pauies since the agitation began Will form the
basis Of tine appeal