New-York tribune., 1906-06-12
GAS MEN PREPARE CASE
Defence Also Getting Ready for
SO-Cent Rate Fight.

Counsel for both the complainant and the de-
PENDANTS in tho suit by the Consolidated Gas Com
pahy against the city. county and state gas com
missions have not yet received official notice of
the opinion handed down by Judge Lacombe of the
United States Circuit Court last Friday. In spite
OF ths however. they busy preparing their case
ior presentation this summer Under the opinion of
'uoge Lacombe special master will be appointed
10 take testimony during the three summer months
ana nave II in proper form for the trial term Of the
United States Circuit Court in November 1t is
1hought probable that John A Shields. United
o'ates Commissioners and clerk the United
states Circuit Court. will be appointed
Assistant Corporation Counsel Burr is busy pre-
pairing the city's evidence. Attorney General
Mayer has returned TO this city from Albany. and
Is also busy with the states case. and Charles
l. hughes. counsel for the state has conferred
With Mr. Mayer relative 10 the evidence Officials
OF the Consolidated Gas Company stated that
evidence such the court will deem admissible
VIII be handed in something. they said. that
never been done Yet by the company. The
pahY' II was pointed out. has always been dis
advantage before. but now facts will be offered
which will show II in better light.
Several bankers Of Wall Street have prepared
affdaVits for the Consolidated Gas Company show
ing that industrial stocks must pay larger divi-
dends than municipal and bonds. Among
those who have prepared the afidavits Emer
son McMillin. Allen B. Forbes and Walton Clark.
These men say that state county and municipal
bonds seldom bring more than 312 to per cent.
DH1 lhuuslrlal bonds must always pay from 10 ~
per cent On the rate of sO-cent gas they argue.
1t would be impossible TO pay such dividends.
The Consolidated Gas Company made reply yes
terday to published statements that Boston gas
is sold for s. thousand cubic feet. 1t was
pointed out that Boston pays only & ton for
coai, while here s. . is paid Boston gas com
pahles have a contract in Canada and Cana
clan coal, while the Consolidated uses Pennsyl-
Vana coal The latter is said TO be much superior.
In spite OF the fact that justices of the Supreme
court some weeks dismissed motions for in
functions against the Consolidated Gas Company
IN two private suits counsel has obtained from
cases. One is that of DR. Alexander r. Grossman.
VINO obtained a temporary injunction restraining
The other was that of Nathan Cohn who made
hl9Ion LOT peremptory writ OF mandamus COM
SLOT machine at the soenP rs gas oy means oi
The state and county officials fled a long
yesterday with the United States Circuit Court in
The suit instituted by the Central Trust Company
against the New Amsterdam Gas Company. the
Attorney General. the District Attorney and the
state gas commission The suit was begun by the
plaintiff TO protect the bondholders of the gas
peny.
e Hughes and Howard S Cans. II denies that the
value OF the various properties merged in the Con-
soldated fixed the value Of the properties at about
5000 900. 1t further contends that the total value
OF the defendants plants, exclusive Of the fran
chises. does exceed Sl3.ocoODO The So-cent
would give, the answer AYERS, ample return on
the defendants investment. That the law is
constitutional is denied, that the cornpany's
franchises should be considered In estimating the
The answer of the New Amsterdam Gas Company
will probably be filed IN few days, and IT is said.
will differ from the answer filed yesterday saying
that sO-cent gas rate is confsca unjust and
say that If the law is enforced the conpany's en-
tire plant and investment would soon be wiped out