The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-04
80 CENT GAS BILL now A LAW
HIGGINS HGNS 1T AND ANSWERS
CORPORATE CRITICISMS.
No Doubt That the Legislature Has the
Power 10 Fix the Price -Upholds state
Control OF Public service Corpora
tons, but Not Their Destruction.

tons, but Not Their Destruction.
ALBANY, April s.-Gov. Higgins to-day
signed the 80 cent gas bill for New York
city aud 1t became Chapter 1875. In an ac-
companying memorandum the Governor
say
This dill is commonly known az the Eighty
cent Gas Bill, as, subject TO certain exceptions.
IL fixes the price for gas in New York city
at 81 cents per l 900 cubic feet.
The corporate interests Affected by THE
legislation contend that inasmuch as the
LIE legislature of 1905 created q gas commission
with power, to regulate the price OF gas after
investigation, 1t 10 inconsistent now 10 fix
such price by law. A brief reference to the
history OF gas legislation refutes this plea.
The Joint committee OF the Senate and As
sembly was appointed to investigate the light
ing question only 90 far as concerned New
York city.
After taking much testimony on cost of
production. value Of plant and possible in
come Of the gas companies. the committee
reported a number OF bills, including an S0-oent
gas bill for New York city and also a state
| Gas Commission bill. the latter for the purpose
OF dealing with the question generally, Wit
special reference to other municipalities
where no legislative Investigation has been
made to guide the action OF the Legislature.
It's findings sustain this bill and Justify the
conclusion that present rates are excessive.
Had all its bills become law. no action by the
Gas Commission would have been necessary
for New York city and no such action was origi-
nally contemplated. The Legislature Is now
but carrying into effect the original recon-
mendations of its committee.
The S0-cent gas bill having been defeated
last winter. it became necessary to resort
to the commission in order to obtain the de-
sired relief. which the committee sought to
give forthwith. But the Consolidated Gas
CompaDy not only questions the constitutional
power OF the Legislature TO delegate to a COM
mission the authority to regulate rates, but
challenges in the courts the fairness OF the
Sn-cent rate already established by the state
commission for the Borough of Manhattan.
1t is, therefore, entirely consistent and proper
for the Legislature to deal with the matter
directly and as effectively as possible, rather
than to abandon the original scheme OF legis-
lation recommended by the committee.
Distrist of democratic institutions pre-
walls where the self interest of the few Is
potent and the self. interest Of The many is
powerless, where wealth rather than man
hood determines who shall enjoy the choicest
privileges in fine community, and where
public service corporations flourish while
consumers suffer. Dlstrust OF democracy
likewise prevails where wealth Is constantly
threatened with contiscatlon by unjust and
unequal laws, The hope of democracy lies
not wholly In municipal ownership, where.
the fair incentive of personal gain being
withdrawn. public utilities may perhaps be
operated in a shiftless manner aud at a loss.
so that taxation Of property must be re-
sorted to in order that such utilities may be
enjoyed at less than cost. It lies rather in
the careful restriction of companies to u fair
return on the value of their Investment.
Conhscation, if permitted by political ex-
.I.-l l~.l-. ... ft,-f 40. than thA
next campaign for the rule of the right TO
govern its action, IL prohibited by the Con-
stitutions of the State and nation.
When one devotes his property to public
uses 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 corr
poralions en- ged in the business of manu-
featuring and selling Illuminating gas. To
what extent may this regulation go? The
authorities must Ak upon a price which Is
reasonable. The power 10 regulate II not
a power TO destroy. The property of a cor
poration cannot be wreSted from il for the
benefit of the public. Its stockholders should
receive some compensation for the use OF the
money they have invested. Yet the courts
have held that judicial interference should
not occur unless the case presents, clearly
and beyond all doubt. such a fragrant attack
upOn the rights Of property under the guise
Of regulation as 10 compel the Court 10 say
that the rates prescribed will necessarily
have the effect TO deny Just compensation
for private property taken for the public
use.
All laws regulating rates are subject to
judicial review. Judicial inquiry may best
determine where regulation ends and con-
fscat ION begins. but the power and the duty
of The Legislature in this case seem clear.
and the example of prompt and vigorous
action should be a restraint ON eNtortion
and greed. and welcome evidence OF The
loyalty of public servants TO the interests of