New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-22
Broadway & Nineteenth Street
is s234SSs9 according TO the experts OF the
city, and S3.37S.410. according TO the appraisers
of the company

is s2.s4s.Ss9. according TO the experts OF the
city and ss.S7S41o. according to the appraisers
of the company
COMPANY USED CITY'S APPRAISERS.
Master Masten accepts the value of the plants
made by the company's expert (S15.532. 4S9).
whereas competent experts employed by the city
valued them at not more than S9.34S.692.
Mr.. Burr points out that IN rejecting the ap-
praisement OF the real estate by Messrs. AIcHale
and Thompson. the city's experts, Master
Masten said: They appear 10 have made a
speciality Of appraisng rather than dealing in
real estate brokers. Their experience has
been in condemnation proceedings for the city,
and In certioraH proceedings for reductions OF
taxes" Now. II these very who
employed by the gas company TO appraise it's
property some years ago when 1t was trying
to get reduction OF its taxes. and for that
reason were presumed to have special knowledge
about the property
William n. Dykman. special counsel for the
Brooklyn Union Gas Company. whose suit to
test the constitutionality of the SO-cent gas
bill. will not come up until the fall. said yes
terday that il the decision OF Master Masten
that gas companies are entitled TO reasonable
return on their special franchises Is upheld by
the United States Supreme Court. his company
would be sure 10 get Judgment from the courts
that the S0-cent rate did not yield fair return
CONSUMERS MUST PAY FOR NEGLECT.
Mr. Masten's report did not take into consid-
Grafton the question Of the ownership OF fran
chises. he held that II not IN his prov
ince 70 do In effect however. IN what,
from his own words, must be considered as al
most academic discussion OF the subject he
says that the consumers must pay in gas
charges for the failure Of the city to get proper
terms for these franchises. Elsewhere he says
that as under the new city charter franchises
can be granted for not more than twenty-five
years and must provide for valuable return
to tho city. the franchises obtained long ago
from the city without any, such terms must be
regarded much the more valuable. and
this was Il factor in his franchise valuation Of
S20OO0.00O.
The franchises of the company. according to
Mr.. Masten were IN many cases granted for
limited periods, but he holds that as they have
never been attacked. and the city made no re-
quest for applications for renewals 1t Is too late
to consider this phase OF the matter.
The question OF the cost Of reproduction arises
here too for Mr.. Masten takes into considera-
ton In the franchise estimation. what IL would
cost a company DESTROYS OF taking up the
work abandoned by the Consolidated TO obtain
the right to operate from the city. He says that
it could not possibly obtain the franchises for
anything like their cost to tho Consolidated
Whatever may be the defects IN these franchises,
the fact remains that the complainant has their
full use and enjoyment to-day and no evidence
whatever appears in the that its right to
else them has been attacked OF even questioned by
either state municipal authorities.
1t therefore remains only 70 determine the value
to be ascribed to such franchises The record con-
tains but little direct evidence the subject.
There is proof showing their original cost to
the constituent companies.
And then, showing his reasoning as TO increas-
Ing values of franchises. Mr.. Masten says:
OF the assets thus included IL is clear that the
franchises and good will have increased enormously
In value since 1884 from the growth Of the city with
the attendant increase in population and develop
ment of business. Their value is further enhanced
by the fact that under the present law such fran
chises may only be granted for the period OF
twenty-five years, and onerous conditions i'm
posed for their procurement
Mr.. Masten refers at great length to gas sta
tistics of other Glitch, drawing from them con-
illusions favorable to the company. after saying.
however, that they are of little value apparent
ly to tho city. on account OF differing condi-
lions.