New-York tribune., 1907-11-09
GOODWILL VALUELESS.
Not an asset. as Consolidated Has
Monopoly, Contends Mr. Hill.

In criticising the failure OF Arthur II. Masten,
the referee. TO apportion the S3o00o0O under each
of the items. when he allowed that amount 20
the valuation of the franchises and goodwill of the
Consolidated Gas Company ex-senator David Ben
nett Hill said yesterday at the gas hearing that the
proof of the existence Of goodwill in the OF
the company absolutely impossible. Although
the Consolidated Gas Company ready TO
produce witnesses to establish the great value OF
this goodwill said Mr.. Hill. the existence of such
asset was out OF the question, when the cor
poraton claiming 1t had obtained a monopoly
The people do not patronize such organiza-
tioR because they love it to such extent that they
will not go elsewhere. but only because they are
compelled to it for gas. The people find no com
petitor OF the corporation 10 which they may have
recourse
Mr.. IIi who closed the argument for the people
as special counsel for the Attorney General said
It entirely improper for the referee to give
the franchises claimed By the company a valuation
simply because he found the company continuing to
them. In view OF the fact that the counsel
the Attorney General and for the city contended
that the gas company taking refuge behind
the alleged franchises and placing fictitious value
upon them to defeat the sD-cent gas law. the peo-
Pies representatives were entitled 10 a specific
appraisal of each franchise that its legal status
might be questioned before determining values.
Ex-senator Hill said there doubt tho
company possessed franchises in the streets years
ago, but he contended that every OF them
had expired or lapsed- In such the COM
a
ing over. and had no ground whatever for placing
valuation them. Not dollar according to
the evidence. said Mr. Hill, had been paid out by
the companies for these franchises. Mr. Hill de-
clared that the evidence OF the State Franchise
Tax Commission to the valuation Of the fran
chses should never have been admitted at the
hearing before the referee. That they placed
valuation upon the franchises which 10 levy a
tax is proof Of the legality of these franchises
AS Governor Hughes. the counsel for tho Stevens
Committee, has well said: You cannot create
franchises by taxing them
In reply to the plea of the gas company. which
upheld by the referee, that the penalties i'm
posed under the law enormous Mr.. Hill
declared that they must be so to compel adherence
to the law by the corporations. "Our corporate
friends do cheeTfuy obey the law. Were II
otherwise, would we have seen the imposition Of
large penalties throughout the country during the
last few months? The penalties large only to
enforce observance of the law. They are rightly
made So for the individual who is affected by
its transgressons has not the means to contest
these infractons"
James NJ. Beck. counsel for the gas company
attacked the Public Service Commission I'm con-
cluding his argument yesterday morning Should
the authority Of such body, appointed BY the
Governor to set the price Of gas. be upheld there
why thousand other tribunals
should not be appointed with full powers to set
the prices to be charged any and every sort
Of commodity. he contended.
Edward B. Whitney, for the Public Service Com
mission. denied that the law discrimnative
because Il applied TO all gas companies in the
state AS to the fair rate Of return obtained by
the company its investment, he argued that
in the absence Of the company's books It might bo
presumed that its profits were actually or per
cent higher than could be proved.
At the close OF the afternoon session Judge
Hough said he would listen 20 one OF the Consoii-
dateds attorneys for hour Monday morn
ing. before closing the argument the confrma-
ton OF the report.