New-York tribune., 1907-11-08
ATTACKS GAS LAW.
Beck, for Consolidated, also De-
nOunceS Recent GOUernme ent ActiOn.

In answer to Senator Pages contention that the
constitutionality OF the SO-cent gas law mat
ter for legislative and not for judicial determina-
tion. James NJ. Beck. ex-Assistant Attorney Gen
eral of the United States and counsel for the Con-
solidated Gas Company. declared yesterday after
his belief that the present financial and bust
ness conditions were due solely unwarranted gov
ernment interference.
I'VE have to-day" said Mr.. Beck. "the spectacle
of the corporations of this country being ground
between the upper and the neither mlstones of
federal and state power" Should the alleged ten
dency to squeeze the corporations continue popu-
lar, said Mr.. Beck, it would soon be impossible to
get capital for enterprise Of any kind.
Mr.. Beck's declaration came after Judge HouSh'
who IS hearing the argument on the confirmation
of Referee Mastens report had remarked that
the tendency of the times was distinctly toward
constant supervision of corporations on the part OF
legislatures and courts. With such a tendency, he
said. it a question of the greatest Importance
for the courts to determine the distinction between
what constituted reasonable regulation Of public
utility corporations and what amounted TO practi-
cal confscation of their property. The difference
between the two terms, said the court was aim
cult to understand and Ill defined
Mr. Beck insisted that the matter Of regulation
including Just compensation. was at base a ques-
ton of fact and not of law Should Senator Page ;
view of what constituted proper regulation be
taken, said Mr.. Beck. the Consolidated Gas Com
pany might be left with profit of $40 a year on
its entire investment, II the Legislature. az the
final authority, concluded that such a sum meant
n fair compensation THE question of regulation"
said the gas companys attorney. rs one that must
decided by the laws of the business world These
laws are Infinitely greater than constitutions and
governments However, may extol the latter,
they nothing more than glortfed police SER
vice. When large part of the earnings of a pub
lie utility corporation taken from 1t. 1t is alb
surd 10 say that because some little portion Is
left only regulation has been exercised. Under
Senator Pages definition the Legislature might
regulate the earnings OF the company and set a
ten-thousandth Of one per cent as reasonable re-
turn it's investment and yet 1t would not be
cOnfscaton."
Judge Hough. further commenting on Mr. Beck's
distinction between regulation and conlscation.
agreed with the view that there would be nothing
10 prevent the Introduction OF another bill placing
the legal OF gas IS cents should the SO-cent
law be found unjust. No form of industry closely
connected with the daily life Of the people, he said
might be considered 10 be safe from supervision
by the Legislatures. The tendency to do away
with judicial review and to enact legislative stat
utes disposing OF such review could not be over
looked. He instanCed the Hepburn BIZ for the
regulation of railway rates and the immigration
bills which practically took the decision OF all
questions such matters out of the courts
Mr. Beck in upholding Referee Masten's opn-
ion that the penalties prescribed by the new
law in more than so cents should be
charged for gas were stupendous pointed out
that should the company be found guilty of
a single offence IN the of each Of its 100000
consumers at S1.O00 offence the aggregate fine
would make that recently imposed by Judge Lands
on the Standard OIL Company OF Indiana small in
comparison
Mr.. Beck will resume HIS argument to-day. after
which ex-senator David Il. Hill. for the state and
Edward r. Whitney. for the Public Service Com
mission viii be heard IN answer