New-York tribune., 1907-06-24
GAS REPORT. FILED.
.4G4INST 8O-CENT RATE
Nr. Masten Still Holds Com pany Is
IN the RIGHT.

The final report of Arthur H. Masten. master
IN chancery. has been filed with the United
States Circuit Court. and in it he clincheg and
fortihes his preliminary finding that the Con-
soAdated Gas Company cannot be compelled to
furnish gas al the S0-cent rate for private con-
sumers and at 10 cents a thousand feet to the
city. He had made it clear that his final report
would not differ in esse-tials from his prelim-
mary one. 1t does not.
His final report is amended to favor still fur
ther the contention Of the gas company. The
companys lawyers filed fifteen amendments,
and Of these only one was thrown out entirely
The amendment thrown out had to do with the
finding Of the master that the franchises and
good VIII Of the Consolidated should be esti-
maied at S20,000,000. and be made part of the
capital which dividends must be paid. The
gas company's lawyers wanted the master to go
still further and say: There is no doubt that
tile franchlseS or complainant relating to public
highways are Of themselves worth not less than
(amount to be inserted by master)'' But he dis
missed this with the remark ''Disallowed."
The objections and amendments of the state
and the city appended to the report were as
fun Of "disallowed" and "overruled'' as a melon
is Of seeds. Attorney General Jackson filed
forty-six amendments and objections. OF these
only twelve We're allowed. Only four OF the OBJ
3ections made by Assistant Corporation Counsel
Burr, representing the city, were allowed The
master, IN commenting this, writes:
on behalf Of the defendant, the City Of New
York. there was presented a memorandum, evil
IDENTIFY prepared to a considerable extent by the
expert witnesses instead OF by counsel" He
filed the memorandum with the report and
takes up only such objections "as are deemed
pertinent for the information of the court"
Among a multitude of technical objections,
both state and city took exception to the mas
ter's S20,o00.000 figure on the goodwill OF the
Consolidated, but he overTules them.
The amendments suggested by the gas COM
pany's lawyers are in many cases addition
70 his finding. For instance, he allows 10 be
added 10 his report the statement that there IS
''no satisfactory evidence that any Of the ex-
penditures Of complainant for material labor or
otherwise IN the manufacture and distribution
Of gas have been improper, unnecessary or un-
reasonable At another point he allows the
amendment that he insert in his report the fol-
lowing: IF franchises and goodwill be included
together at the aggregate value Of $4,000 900
above found by me. in lieu Of the item fran
chlses and rights the actual cost to complainant
Of its tangible property, plus the value OF it's
franchises and goodwill, is at least So, ,433 600
TWO Of the most important amendments are
allowed. One OF these IS: Il also find Just
and reasonable rate Of return upon the value Of
The investment in complainant's gas business is
not less than the legal rate Of per cent per
annum." The conclusion. which is cut out, Is
that without such compensation the gas COM
pany would be deprived OF the use Of its prop
erty and Of part Of its property without just
compensation"
To the consumers who have been complaining
OF the grim joke about New York is the only
city where you could get S0-cent gas for dol
lar" il is interesting TO note the apprehension
Of the gas company's counsel at possible penal
ties for overcharge- They suggest and the
master accepts as an addition TO his report, the
following:
I find that the complainant has about $4,000 Gus
toners in the city OF New York TO whom bills are
cent monthly that the penalty imposed by Chapter
20 of the laws OF 1906 Is 81 90 for each charge for
gas in excess Of 50 cents q thousand feet, TO
customers other than the city Of New York. and
that the penalties accruing against complainant
If II charged more than so cents would amount in
the aggregate TO about S390,OO9.000 d month. and
over S55S0,J1l0J0 year, fifty times much
the value OF the entire assets employed in
pIainant's gass business found by
also find that the penalty of $1,000 for each
offence violating Chapter 1856 Of the Laws of 1908
Rnd Chapter 125 OF the Laws OF 1906, which provide
that the pressure of illuminating gas in any
vice main in the city Of New York at any distance
from the place Of manufacture shall be less
than inch more than two and one-half
inches would aggregate 5000 per diem upon evi-
6ence recorded each OF the FIVE city testing sta
tons. OF only single violation per diem Of said
laws or at the of S, 10000 a year under
planant's distributing system, now existing and
ln operation. which amounts are liable TO be
Increased by additional more frequent tests.
The company's lawyers wanted to add that