New-York tribune., 1906-08-16
RIDERS GAS At so CENTS
grPREuE COURT DECISION
Tgsfice Gicgcrich Says Lac Is Com
sfifutioadL- UW appeal.

--.ira fsiegeliCh. in the Supreme Court, YES
%, granted an application hy Clarence J.
-s..rn for pcremptory writ Of mandamus to
So the Consolidated Gas Company to supply
- nioneei Robecchi, Mr.. Shearn's client. at
= .a,,,;ors rlte OF 80 cents a thousand cubic
-. AT the same time Justice Giegerich al
.'rai TWO days notice for the settlement Of the
and there wiil be an immediate appeal
spm his decision
- granting the motion for the writ. Justice
,.,ertch swept aside the contention of the
r,soidated cas- Companys counsel that the
ea-,snt rate Fixed lag The new law would prevent
- company from paving dividends on its stock.
- that. therefore. the law MAS unconstitu-
.l,nal because If would deprive the company's
-ockholders Of their property. Justice Gieger.ch
sid:
.sI constr,le This defence taken as a whole,
~ company does not allege that the SQ-cent
-.s nerlnitted - statute will not enable it TO
I'm enough 10 cover all the amounts referred
! m The second paras sraph. TO Wit: the cost Of
-1snufscure and distribution; reasonable al
.--a,ce 10 offset depreciation; cost of changes
:. -1sefiuery aTsI TO make good the loss arising
s-,n abandonment Of portions of its plant: and
.oaeona hle profit on the fair value of the prop
--v owned and used 10y il in its business; but
raj such rate IS not enough TO cover the
--1o,,nts lust enumerated. together with return
- The original capitalization which it apparent
r claims the right To pay in perpetuity under
--,,,ract with the state. although the value or
=, rroperty then IN existence. and even Of that
-onsrtv and the franchises and rights all COM
lined. may have deprecated very materially
since 1881
.s Allegations Of fact in part upon such al
isrs5 right the respondent. in my view OF the
'sw fails 10 present any question of fact. hold
srrnsf the contention that the respondent is
sT,jiied - charge such rate as to pay in per
rstuis- return upon an original capitalization.
which So far is alleged. may no longer be
tased upon either tangible or real value: its
sorkhol6ers being entitled to a easonable profit
mon the actual value Of the plant and prop
s-ty Of the company. but not on such value plus
me amount Of some former capitalization
Jnbr A. Carver. Of counsel for the Consoli-
dated Gas Company, said an appeal would be
taken and he had no doubt that Justice Giege-
-shs decision would he overruled by the higher
courts The questions Of fact to establish the
rnconsltutionalty Of the new law. he said,
were being tried out before Arthur H. Masten.
the referee appointed by Judge Lacombe.
Before Mr. Masten yesterday Robert A. car
ter. secretary Of the Consolidated Gas Company.
continued his testimony. replying 10 questions
BY Assistant Corporation Counsel Burr. Asked
about the rate cutting by the competing gas
Companies in the city in 1883. he said he was
SIRE the price Of gas to consumers never went
s. las as - cents for 900 feet but it may have
bsn go cents or ~ cents. An the gas manu-
.s,turing companies in New York took part in
he fight The lowest price asked by the Con-
Eaiated company was ca cents. The fight con-
azuel about year.
-Was it only ended b. the absorption of the
'aureting companies by the Consolidated?"
ased Mr. Burn
That may have had something to do with it,
vas Ire reply.
Mr Burr took up the various items of the
stl-et lamps 81 So 80 year and replying 10 his
questions Nr. Garter explained that the contract
Voe docs moi include repairs TO lamp posts, al
though IL does include repairs and maintenance
Of The lamps and naniles. He said that the Con-
soilsted company is suing the city for $2SS,0OO
Gu 1he repairs account.
The theory Of the opposition TO the gas COM
PanyS appeal from the So-cent law is that the
company charges 10 its manufacturing account
many items nf expenditure that do not properly
belong there II is in defence of that theory that
counsel Set The expert accountants To examine
and anaHze The operating ledger. The COM
Tanys statement shows for 1@l5 contingent ex-
Ielses and depreciation S1.114 ..2lG }i. and Mr.
Bur- yesterday wanted Nj Garter give him
an ANALYSIS of The account. Mr.. Carter promised
20 have one prepared. H said the company esti-
mated a- contingent expense 10 cents for every
ihoesaIa feet Of gas manufactured and distrib-
utei AsiN