Los Angeles herald., 1906-08-08
Gas COMPANY
MUST ANSWER
PEOPLES COLLECTOR UNDER
ARREST
Fieurehead Called Upon to Explain
Why He Charged in Excess of
s5 Cents Per Thousand
Cubic Feet

Legal action was begun against the
Peoples Gas company yesterday in
the police court, which may ultimately
decide the right of the corporation to
do business in the city, in the opinion
of the city prosecutors.
S. Weatherholt, one of the collectors
for the gas company, was charged with
collecting from consumers more than
the rate OF S5 cents per 1000 cubic feet
fixed by city ordinance.
He was arraigned before Police Jus
tice Rose yesterday afternoon and the
case was set for pleading tomorrow
afternoon.
The collector is merely a figuehead.
the city prosecutors saw, as the COM
plant is directed against the corpora
tion itself
According to the city prosecutors.
Professor loves company charges but
20 cents for 1000 cubic feet Of gas hut
tacks on an additional charge of 25
cents per 1000 feet for delivery.
When the city council fixed the max
imum charge of S5 cents per 1000 feet,
the other company is said to have
promptly complied with the ordinance.
Makes 1t Dollar Gas
The Peoples Gas company, with ap-
parent generosity. reduced the rrice
of its gas from 81 to rs cents, but there
was a little joker attached the citv
officials say, to the effect that con-
sumers must pay for the delivery of
the gas. making the total cost to the
consumer 81.
If the contention of the cornpanv is
correct the property owner might send
his children tn the gas works and take
nome with them six bits worth of gas.
provided the ILLUMINATING vapor could
be conveyed in such a manner. AS 1t
is not. the consumer must pay for the
delivery of the alleged cheap gas
through the pine lines Of the COMPANY.
1t is believed the Peoples Gas COM
pany consulted legol counsel before.
instituting It's system Of rates and is
prepared TO put up a determined legal
battle before the case is finally con-
cluded If Weatherbolt. the collector
of the company, is fornd guilty of
technical violation Of the city ordi-
nance 1t is believed the case will be
Immediately appealed and perhaps
start litieation that will extend over a
long period of time
Worker Is Arrested
City Prosecutor Frederickson, who
drew the complaint, said the city was
prepared to show the employe of the
gas company was guilty of charging
an Illegal rate for gas. and that con-
exceeding s5 cents per 1000 cubic feet
Detective w. A Ingram. detailed to
serve the warrant upon Weatherholt
said he found much difficulty in locat-
ing his man, but finally was able to
serve the warrant upon him.
Weatherholt was released on his own
recognizance. He appeared in court
alone and immediately intimated a
desire to consult with his employers
and with counsel before entering q
plea.
Ever since this company has been
doing busin ess in Los Angels. under
various names, the city authorities
say they have had more or less trouble
with it,
Says Company Avoids City Tax
There is a law on the city ordinance
books compelling gas companies to pay
$1D0 month license for the privilege
Peoples Gas company and its prede-
cessor, the Lowe Gas company, have
steadily refused to pay. Efforts on
the part of the city to collect the
money through the courts are said to
have been futile, as no property of the
company has been found that can be
attached. The Los Angeles Gas and
Electric company paid this fee without
even a murmur of protest
Not only does this company refuse to
pay anything into the city treasury.
but its assets are so well concealed
that the city assessor says he has
never found anything to tax. The COM
pany is careful to keep all it's prop
erty outside the city limits. The as
stssor cannot tax this company on it's
franchise, because he has no means of
learning the value of the franchise.
This company does business in Los
Angeles and receives its revenue from
the residents of Los Angeles, but does
not pay one cent into the city treasury
in any FORM