The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-29
CITY TO SUE THE GAS TRUST
ACTIONS AGAINST CONSOLIDATED
REGUN ny ELLISON.
His suits Directed Against the validity Of
the Franchises Granted by the City
Referee Masten Says Judge Lacombe.
Not lie, Fixed the $40. 900. 900 Value.


Suits that arc intended to sottle forever
the question whether the franchises OF tho
Consolidated Gas Company and the COM
panies which II controls have expired or
arc void have been begun against the light
ing trust by Corporation Counsel Ellison.
The complaints have been prepared and
process servers were at work yesterday
serving summonses on the officials Of
the Consolidated itself and the companies
which it controls.
The main trouble in the gas situation
mere has been the question Of the franchises
the Consolidated holds or controls, The
trust has commended all along that the value
II Its franchises, being taxed by the State,
should be included in the actual capital
employed In the manufacture and dis
tributiop Of gas. II was on this ground
principally that the action was brought
by the corporation in the United States
Court to declare the 80 cent gas law I'M
that the law makers at Albany excluded
entirely the value of the franchises in the
estimates on which they based the right
to reduce the price OF gas to sooents. /
The corporation contended that the Law
was coniscatory, mainly because the value
Of the franchises on which the corporation
il assessed, or was assessed $50, 000, 600
by the State, is left out. Arthur Fl. Masten,
who was appointed by Judge Lacombe
to take the testimony, allowed a valuation
for the franchises OF $40, OOo, 900 TO be added
10 the estimated capital invested. II was
thought at the time that Mr.. Masten had
done this on his own initiative. but when
the matter was up before him again yes
terday he explained that 1t was Judge
Lscombe himself who fixed the value OF
the franchise, and declared that he did not
intend to override the decision Of the court.
At the hearings before Mr.. Masten the
contention Of both the Attorney General
and the Corporation Counsel has been that
these franchises or most OF them have
lapsed. and therefore have no value that
could be estimated.
Mr.. Ellison says that he did not purpose
interfering with the suit brought by the
Attorney General to annul the charters
which were granted by the State. The
Attorney General lie also seeking in this
action, however. to have the franchises
granted to the company by the city
declared null and void. and the Corporation
Counsel does not believe that he has the
power to do this. In order. MIR. Ellison
said. that there may be no slips in determin-
- L ---El.A- - 49, Naa0hfaAA he hAa
stepped in with suits in which an argu-
ment about jurisdiction cannot be raised.
What we want to know" said Mr.. Ellison
Yesterday, lis have or have not the privi-
leges given to the Consolidated and the
other companies to use the streets expired
or lapsed for any other cause? This matter
is the source OF constant argument and il
ought to be settled once for all. II the
franchises are alive and legal let the Con-
solidated company proceed with its BUSH
ness under them; but II the franchises have
lapsed let us find it out and then the COM
pany can go TO the BOARD OF Estimate for
new terms"
Mr.. Ellison was not willing to say yester-
day Just how many Of the franchises the
law department considered as having
lapsed, but he was sure that a majority
Of them at least would be declared worthless
by the courts.
The suits" continued the Corporation
Council, should have the hearty approval
Of Mr.. jackson, as the city does not have
to get permission to bring them. There
is'no doubt as TO the right to sue, thus elm
mating the question already brought up
by the application OF the Attorney-General.
Any effective method that Mr., jackson
may take will be welcome, and l am con-
WINGED that by cooperation all the rights
NJ the public can be protected. / have no
doubt OF the right Of the Acknowledgement
to bring suits for the annulment Of the oom-
panies' charters, but there is a grave doubt
about his right to sue for the annulment
OF the city franchises
Special Master Masten sharply rebuked
Deputy Attorney General De Ford and
Assistant Corporation Counsel Burr when
they appeared before him yesterday TO
ask for a further adjournment to prepare
the amendments they are going TO file
to his preliminary report. He accused
them virtually Of bad faith In making public
parts Of the report which at that lint
made him seem to uphold the gas company
in all lite contentious. He finally gave them
until June 3 TO submit the amendments
and Get the arguments on them for June s.
One reason why this case should re-
ceive despatch said Mr.. Masten, "is that
counsel for the defence has seen ft to give
out disjoined extracts Of this report, which
think was a very improper thing 70 do In
advance Of the completion and confirma-
ton Of the final report. Counsel for the
defence are loud in their protestations
Of diligence in the public interests, but In
this case they are always asking for ad.
journments, as the record will show.
We have never asked for adjournments
without proper reasons and in the interests
OK the people said iir. Burr. pointing 10
the sixteen volumes OF testimony that were
taken at the hearings.
If you had spent the time you wasted
IN giving interviews In preparing your
amendments and corrections you could
have all the work done by this time re-
torted Mr.. Masten. you nave spent alto
ecther too much time talking 70 reporters
Then Mr.. De Ford wanted to know II
argument could be put In on tho $40, ooo 90
valuation OF franchises added 10 the valuR-
ton Of capital invested by the Master.