The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-09
GAS LAW INJUNCTION STANDS.
oaDCR rONTTNCED A0AINST nv.
FORTINO No CENT RATg.
NJ Judss tseombe says He WIN Tahs
s,sp, ~ Fspedite q FtHai DsteftiHas
uon NJ Inc issues -Ftperta tSHsUmefs
Nm vat fvrtHa . tuIiiptirity NJ suits,

- ,r,f.iIph ~ tho N cent gaa Law The
49,, ~ .br decision II ~ restrain tho A.
,,,cy 0onrfal and tho District Attorney
nom enforcing my penalties against thu
consolidated Oaa Company tor char ginR
.I,n,r , thousand ~ consumers N prac.
,.oIty makaa this tho lawful rata 10 the
n,,s,IdaicI'a customers until. tho United
S,o,es Supreme Court paaaoa upon tho
.onstrripnnliv ~ tho m cont Law,
Az tho question involved Ia n conatitu-
,,,sl ms. n Ia understood that an appeal
oom mo Injunction can Ia carried direct 10
40 court ~ highest resort. THIS would
hri,s , nnal decision on tho restraining
ordor Nv January or February, 1901,
Judge IacombH indicates that he will
have mo suit NJ the Consolidated impuEn-
Ins tho constitutionality ~ the M cent
lac ne cnnHaratnry definitely decided In his
cour, hy November or December. This
decision will undoubtedly be appealed,
vhirheycr party wins. The case will then he
carried direct 10 the Supreme Court. where
Indigo Lacombe has no doubt II will obtain
a speedy hearing. Final decision by this
bodv should he given within eighteen
months from to-day.
The most interesting passages In Judge
Iacombe's opinion are those in which he
refuses the gas %company's request sum-
marilv to command the consumers to pay
the dollar rate and those commenting on
the Oft mooted question Of whether the
connany's franchises should or should not
be taxed.
Az to the first, Judge LAcombe notes the
request OF the company for an enlarge
ment Of the original order granted last
month 40 as to enable it "to collect the
20 cents difference by summary measures,
such as refusal to supply gas to customers
unwilling to pay It," The court decides,
however, not to RESTRAIN the actions Of
individual customers who are not parties
10 the suit and have not been served with
~process.' But Judge Lacombe anticipates
that the great bulk Of consumers will prefer
10 make the small additional payments
rather than bring a multiplicity Of suits
to prevent the company from making its
usual collections.
The Court holds that the franchises,
even though all but a few have expired,
are still property. II scores the State
authorities for appraising the franchises
at more than $50, oO0, 900 when assessing
taxes but deeming them Of no value what
ever in fixing the 80 cent rate.
VuikC HdNoiIipV lpSiiA' OAN NiioN NiS iH'iNA"
mental contention OF the complainant
company is that the 80 cent law is con-
fscatory and unconstitutional and there
fore the Federal Court is the appropriate
forum for the suit; but he declares, as in the
original order, that he must give no de-
cision before a full hearing as to the con-
fscatory or unconstitutional nature Of the
law. Every precedent commands, how
.uo. thot ba ra,troi, tho apforoapaapt ~
the enormous penalties Of the law until
the company has had its day in court.
After refusing to give the company any
thing more in the way Of sustaining the
old rate than the legal right to collect a
dollar a thousand, Judge Lacombe says
that the company's fear that it will suffer
great loss through the refusal Of customers
to pay more than 30 cents. and its inability
TO collect the difference in the event Of ulti-
mate success from thousands Of irresponsible
customers are exaggerated.
'On the contrary runs the opinion;
1t seems quite likely the great bulk OF its
customers will prefer to pay the small
amounts Of excess rate demanded each
month, when assured that the sums thus
paid will remain secure and intact to be
repaid upon the determination Of the case,
rather than begin a multiplicity of suits"
On the question of assigning value to the
franchises the Court says:
The proposition that some of the franchises
have expired or lapsed in some way need not
be considered. because 1t Is not asserted that
all Of them have lapsed. SO long as a sub
ttantial part Of these still remain the argu-
ment is not affected.
The reason assigned by the comm issioner
for not including the value of the franchises
Is that they were granted by the people
without compensation" That Is so. These
franchises were granted very many years
ago at a time when there seems 10 have been
no intelligent appreciation OF the fact that
they might become enormously valuable:
when reckless improvidence was the rule and
all sorts of franchises were given away with
out any provision for securing to the State
It's fair share of unearned increment thereon.
Nevertheless. when the State offers a fran
chise TO whomever will take II without re-
curing any money return thereon. and for
the sole consideration that the taker shall
promptly, continuously and fully develop it
by the expenditure of his own money, and
such offer is accepted and the terms OF the
agreement carried out by the taker, there
results a contract whiCh-with due considera-
ton Of all proper conditions and limitations
Inherent in the nature OF the particular con-
tracts as much within the protection OF
'N ''7' ar w w oNilN 'Vii' "NNS'
Judge Lacombe then declares that the
greatest possible expedition will be used
by hin in bringing the suit to a final de-
cision.
This Court fully appreciates the importance
Of a prompt disposition of this cause, which
not only presents questions of grave import
ancc, but which also Cncluding the other
causes heard at the same timel effects the
Interests OF nearly half a million of households.
liner" is no apparent reason why a dnal hear
ING on the merits should not be reached with
reasonable expedition. In the event OF de-
mnrrer or exceptions to any pleading being
Med by either side this Court will hear and
dispose Of the same at any time during vaca-
uon, upOn a " weeks notice.
As soon as the cause is at issue, upon re-
quest Of either side and upon four days
notice, the Court will apportion the three
months which the rules allow for taking the
testimony. Promptness on the part OF COM
%plainant, which evidently has large interests
al stake, may fairly he assumed. but 1t may
oe insured by the insertion in the order OF a
claus" providing that in the event OF any
Unreasonable delay application may be made
suspend the Injunction.