New-York tribune., 1906-04-05
FTGHTY-CENT GAS.

Governor Higgins has brought 10 a conclusion
the fight for lower gas rates which he has been
waging ever since he took the executive office
In a special message 10 the last Legislature he
recommended the passage Of the S0-cent gas
bill, but the corporation lobby was too strong
for him. He also favored the creation of the
Gas Commission, which fixed the SO-cent rate
as an administrative measure FOreseeing that
the companies would contest the constitution
ality OF the delegation by the Legislature of its
power over rates 10 a commission, he recon-
mended in his annual message this year while
the commission was still giving hearings the
passage Of the law which he has Just signed
Meanwhile the Gas Commission has finished its
hearings and has ordered the establishment of
the SO-cent rate. So the gas companies are con-
strained by two separate authorities TO lower
their rates.
The new law makes the question raised about
the powers OF the Gas Commission academic
with respect 10 rates here at this time though
its authority elsewhere and in the future ought
before long to be determined beyond disuute
The attack by the Manhattan and BrookIvn
companies must be upon the reasonabIeness Of
the rate fixed by the Legislature, which has m
questioned direct power in the premises The
manufacturers say that so cents IS an impossi-
Die price. They might be able to make a small
proht at 30 cents but so cents amounts IN con-
hscation. II they prove this the act will
undoubtedly be invaldated but in the absence
OF convincing proof the presumption is I'm favor
OF the state, which has an undOubted RIGHT IN
regulate the prices exacted by a public service
cOi iPorauon so Iar as the regulation is reason
aple ana does not amount TO the taking OF pri-
Nate property without just compensation. The
Legislative committee, at the head of vvbicb
was Senator Stevens himself q nracticsI Gas
manufacturer thoroughly investigated the sub-
Ject listened 10 all the arguments AMI focts ra
sIectlng the cost OF production and distribution
presented by the companies and came IN tho
conclusion that 80 cents was fair rate The
state Gas Commission gave independent hear
ings and came 10 the same conclusion In Man
hattan, where the gas and electric interests are
identical there is no incentive 10 lower prices.
out In Brooklyn the competition OF electric light
is such that the gas companies would probably
before long have fixed voluntarily n 9ocent
rate 10 avoid losing business
II does not seem If the companIes which
could not convince two bodies that the SOcan+
rate was confscatory would find II easv 10 os-
iablish their contention in a court which he's no
better facilities than the committee or the com
mission for getting at the truth OF n connI,-
cAteu question OF finance and bookkeeping II
is TO be remembered, however that tho go,
are inclined 10 be more conservative tba, Ial,,I
iahve and administrative bodies. though on tbo
other hAhd' The burden Of proof is upon those
VINO dispute the validity of legislative act II
""ulu neel 10 be reasonably shown that q foir
proht on the money actually invested couId no.
be earned before the courts would he iusttsoS
+ III se''ihS aside the law. If that can be shown
OF course the law should be set aside.
ne Stale must not, as Governor Higpins
points out In his memorandum on account 80
any ciamor or supposed political expediencv oo,,
hseale private property. AT the same time 90
I tle Governor Justly says. when one devotes prI-
an interest In that and must submit, - ,',,
reasonable regulation Of his charges lie sbopId
Indeed be glad 10 submit Reduction OF rates 70
the lowest figure compatible with a fair prost