New-York tribune., 1907-05-24
TO PROBE GAS PERMITS.
CITY AFTER COMPANIES.
Ellison Says He Thinks ConsoE-
dated Franchises InUalid.


ei him to take the necessary steps to deter
mine the validity of the franchises of the con-
stituent companies Of the Consolidated Gas
Company.
The decision of Referee Masten IS generally
regarded being adverse 10 the city. 1t will be
appealed, and meanwhile the Mayor and the
Corporation Counsel are going force TO a
conclusion. If possible. action which will de-
termine the status OF the gas and electric light
ing companies. Mr.. Ellison is confident that
many Of the Consolidated Company's franchises
have lapsed. Corporation Counsel Rives began
sn action determine the status of the fran
chises under the Low administration but the
companies have fought the city to a standstill in
that suit.
With more adequate information brought out
by the Stevens committee and by the investi-
cation before the referee in the federal courts
Mr.. Ellison and the Mayor are confident that
the city is in far better position to fight tba
companies thar formerly. The city owes the
lighting companies all told more than $40 600
600. and the bill is growing bigger all the time
Tie city has set aside the money to nav the
bills. but the Mayor is opposed TO a full SET
tlement unit. il is determined to a certainty
that the Consolidated Company's franchises are
valid. The action probably will frnplicate the
companies in all the boroughs After cons,,Ita-
tion with the Mayor, and with his approval Mr
Ellison said:
The decision Just rendered by Mr. Masten in the
gas compsny case now leaves the city free to test
Gas Company has any franchises Whatever under
which II IS fIased to CONDUCT its business Pend
advisable not 10 raise this question. | have now
tSese alleged franchises % and 6aGo 10 @
and void all of those that do legally exist at
Ny. information is that almost all. if not all. of
the franchises under which the Consolidated Gas
ever
had legal existence, expired years ago The most
regime Esc Of the alleged franchises W will now mo%
BE- su6JeGted & to careful investisation and proper
sct status OF the Consoidated Gas Company in its
1t appears that in the case just decided by Mr
Masten The question as 10 the validity invaldity
10 decide IL He valued the franchises at S9oop0G00
quarrel with the referees decision in This regard I'd
because am convinced that the validity Of these
other and with that in view it is aEihs nav Rten no
non 10 nave these alleged franchises Immediately
investigated and such action taken the facts
Office for some time. and so far as We have been
able 10 learn. the facts such to call for
the question rest. Mr. Burr has been requested
to give the matter his immediate attention ana
an ma king arrangements give him such ad-
ditonal help as a litigation OF this nature will re-
The franchises Of the following companies are
involved by the action TO be begun by the Cor
poration Counsel: Consolidated Gas Company
New York Mutual Gas Light Company. New
Amsterdam Gas Company and the Standard
Gas Light Company. Data collected by Mr.. Eli
son shows that the Consolidated owns or con-
trols the three others. The Consolidated was
formed September 20. 1884. by a consolida ton
agreement with the New York Gas Light Com
psny. the Manhattan Gas Light Company. the
Metropolitan Gas Light Company. the Harlem
Gas Light Company, the Municipal Gas Light
Company and the Knickerbocker Gas Light
Company. The total capitalization of these COM
panies S17,0o00o0 which was increased
Immediately 10 normal capitalization of $50
10000. This led to legislative investigation
beginning October ID, 1885, and the committee.
on March !. 1856 recommended that the price
Of gas should be limited by restricting the divi-
dends of gas companies to 10 per cent Of the
actual mot fictitious capital invested.
In this report the Consolidated charged
with violation Of the provisions Of the law Of
1884 which was drawn by it's own counsel, |
Henry Day and Henry II. Anderson. for the
specific purpose of permitting the consolidation.
When the committee Of 1856 endeavored TO push
the investigation into the history Of this act,
Henry Day absented himself from the city
and remained absent until after the committee
had reported. Much interesting matter de-
reloped. Of all Of which proofs are in the hands
Of the Corporation Counsel.
In this investigation II was charged that the |
Consolidated Gas Company stated TO the State |
Board OF Tax Commissioners in the special |
franchise tax cases that no record had been |
kept and distinction made as to the source |
of its title TO any particular gas main, thus
showing that it considered its property inter
ests in the gas main without reference to any |
imaginary franchise right.
Commenting on the franchise of the New |
York Gas Light Company, Mr.. Ellison said:
This company was incorporated under the act of |
acts Of 1888 Chapter 81. 1868. Chapter Its
territory was south of Grand street, and it's fran
TElse MAS an exclusive one granted by the city In |
7. ~ u expired In 1853 and have found no record
ported 1866 that the franchise had expired and |
Thomas X Lees. vice president OF the Consolidated
what right the New York Gas Light Company had |
10 occupy the street with its pipe.
The Manhattan Gas Light Company. incor-
porated by the act of 1890. held a charter which
seems 10 have expired IN 1868. il is said The
Nsfopoitan Gas Light Company. Incorporated
uhofr 'he act OF 1855. got It's charter in 1853 |
over over the Mayors veto. This charter expired in
4o"o- The Harlem Gas Light Conpany incor-
p"rated on February . 1850 received a charter
'eseiNihg the right TO the city 10 buy its plant
al cost plus 10 per cent. and also the right 10
'Ae 'ie franchise failure 10 comply with
""E oi me conditions. This franchise probabIv
"s statutory Limitation in 1905. The
- :, uoneo at the time Of consoida-
re,aoa - ia rights. If II ever had any de-
,iss,., - %, 'iis permit issued by Street Com
expire on November G. 1873 ,r. ~
Gas Light Company. incornora, al - 80
an oHer Tor franchise IN Decep,ho. ,o-e
subsequently claimed All ~ c., -, '' "''u