New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-22
CITY SURE TO FIGHT.
GAS PRICE MAY RISE.
RISE.
Burr Says Masten Report You'd
LeaUe Com pany Unrestricted.


fair interest on the unearned increment on its
property the Legislature would never be able
to reduce the price of gas. On the other hand,
the value of the real estate is bound to con-
tnue to increase. Mr. Burr does not see why II
this contention is upheld the company could
not ask the Legislature for permission to in
crease the rate In order to get a fair return"
1t is most important question, and undoubted-
ly will be carried to the United States Supreme
Court. whether the report in its final shape Is
approved by the Circuit Court not. Mr.. Burr
is confident that the highest court would never
sustain the conclusions of Master Masten.
1t will probably be October before the report
is presented for such approval. as the summer
vacation recess begins after next month. Mr..
Masten has asked the Corporation Counsel and
Attorney General and the attorneys for the
gas company to present by Saturday any OBJ
jections or corrections TO the tentative report.
On Tuesday at II o'clock he will listen to oral
argument by both sides. after which he will
take up the consideration Of changing the
port along the lines suggested to him. He viii
then frame the final report and file II for con-
firmation It is not thought likely that he Will
make any fundamental changes in his findings.
Charles F. Mathewson of counsel for the COM
pany. did not want say yesterday that he and
his associates would not ask for any important
changes or additions 10 the document, although
so far none had occurred TO them.
ELLISON WATCHING CONSOLIDATED.
Corporation Counsel Ellison will watch with
great interest to see whether the company will
be willing 20 stand on the report of the master
as 10 the value Of it's franchises. which he
places at S2OOOOOOO. IF that is 10 stand he
said yesterday, II will be glad know it. for
then we can proceed against the company under
the franchise tax law TO recover taxes on this
valuation
The company has been evading its taxes for
some years. the ground that its franchises
rated too high, although the state fixed a
lower figure than $4,000 900
1t goes without saying that the counsel for the
gas company were joyful yesterday.
Truth Is mighty and will prevail" said Mr..
Mathewson. we are gratifed with the re-
port, because It represents what my client and
it's counsel believe TO be the facts. and makes
findings that always believed n Just de-
termination would produce We have never
asked mora than exact and equal justice, and
we are not willing to stop short of it.
Assistant Corporation Counsel Burr says in
his statement that the burden Of proving that
the rate fixed by the Legislature is Condscatory
undoubtedly rests on the company, and in con-
sdering the problem it must be borne in mind
that the company has a monopoly in supplying
gas where the consumption OF gas per capita Is
greater than In any other place in the world,
and that the investment in such company. If
properly managed. is safe an investment
in government bonds,
COMPANY GUARDED ITS BOOKS.
Mr. Burr calls attention to the attempts made
by the company to block the city and state from
getting at its books and after referring to the
careful way in which the property OF the COM
pany was appraised by the defendants (Which
appraisement was rejected by the mastery he
adds:
In arriving at his conclusion the master has
taken the valuation placed on this property by the
experts Of the company. The city commended that
the original cost Of the real estate The master has
held it is entitled a return upon the cost OF re-
The consumer of gas is by this decision. should
dement's OF the company which might arise in tho
future He must bear all the burdens beyond all
question The benefits for the stockholders
sInne and as the value of the property increases
of course the benefits 20 the stockholders do like
There never be any reduction in the price OF
gas by act of the legislature under these tondl
tons and so 1t would seem 10 me OF 'le u'Ipt
Importance that this serious question should be
passed upon speedily as possible by the highest
"V We believed we had demonstrated from previous
particular that increased consumption resulted
from reduction In price and we believe tha a Ine
OF this situation
Mr.. Burr gives synopsis of the questions
passed upon by the master as follows:
FIrst-The value of the assets employed in the
production and distribution of the gas sold by
complainant. .,-, -
second2The cost to the complainant OF the pro-
ductlon and distribution of gas to the consumer
This he finds to be practically as claimed by the
Observation-Disclosures or not the rate allowed by said
statutes ana order afford to complainant fair
and reasonable return upon its Investment
He holds II does not.
FOurth-The possibility of maintaining at every
nont and at all times In conplanants mains
pressure within the limits prescribed py the stat
AS to this he says that under the distributing
system as existing and in operation, 1t is not
possible to fulfil the statutory requirements as TO
pressure.
Regarding the franchises he states:
las | do not find II practical to dtferentiate the
value in figures of complainants franchises and
good Will / have concluded to consider all OF the
intangible assets together single item, the
rea sonable value of which. think. may be fairly
fixed az the sum of s2o.00O,OO0.''
According to Mr.. Burr a crucial point in the
whole question is the contention by the city that
the company does not many of the fran
chises which 1t claims The master held that
he did not have TO pass this point. but at the
same time adds the mpany's valuation of the
franchises to his total of property which a
fair return is demanded. This will be one
of the strong points made by the Assistant Cor
poration Counsel In opposing the confirmation
of the report He will also point out that the
master has agreed with the contention of the
company that II should be allowed TO charge
up its capitalization considerable lot of land