New-York tribune., 1907-06-04
GAS WAR GETS A START
FIRST R-4TTLE DR4WN
Forces Of City and State Rest litter
IndeciSiUe Shirmishing.

IH0eC21Cc Oh1rM2ShlnG.
The war on the Consolidated Gas Corora,v ,ros
| advanced on all sides yesterday but bv nigbtfaIl
no definite victory had been gained bv the forces
"a u!t CIV ana the state. Deputy Attorney Cen
efal DE Ford argued with counsel for the comDaDv
IN Part of the Supreme Court on the application
or Attorney General Jackson TO be permitted TO
o'''s SUIT TO dissolve the company and annul its
oui po'd'e existence. Mr.. De Ford now has till
Monday to file brief stating his reasons as the
gas companys counsel presented q brief which con-
| tained their objections to the application
harIy in the day both Mr.. De Ford and Assist
ant corporation Counsel Burr had filed their vou-
hlIlous lists of objections and exceptions TO the
report of Master Masten. Attaches of the Cor
porauon Counsels office busy hunting up
oHcers OF the gas company and serving them with
summonses in the actions that Mr. Ellison has in
shtNted to deprive the Consolidated and its con-
sutuent companies Of their municipal franchises
These suits will come to trial In few weeks as
the summonses are answerabe in twenty days after
service.
In the argument before Justice Mccall Mr.. De
Ford was opposed by James NJ. Beck and Charles
r Mathewson, Of counsel for the Consolidated.
Mr.. Beck indicated plainly that he considered the
present application the Attorney General to be
que TO the fact that the state had been defeated
III It's attempt TO enforce the S0-cent gas law "A
more monstrous application than this" said Mr..
Beck. has never been made by the Attorney Cen
efal 10 this or any other court. L comes on the
heels Of a litigation To which he a party and
III Niltn ne was defeated. The master appointed
by the United States Circuit Court holds that the
franchises are legal. and after the Attorney Cen
erals office has slept for seventy-fve years-a Rip
Van Wrinkle seep-he comes here TO test the valid
ity OF the franchises
Mr.. De Ford took more than an hour n state
his contentious He first took up the matter of
expired franchises. He said that franchises OF
the New York Gas Light Company expired in 1853:
Manhattan Gas Light Company. IN 1864 Metropoli-
tan, lSSS; Harlem. 1905 and Municipal in March
lie he Yrfra Of
he said, the Consolidated continued to do business
in the city. Justice Mccall here interrupted and
asked that Mr.. De Ford quote the place and ex-
press language in the statutes stating the Ilmita-
tions OF such franchises. Mr.. De Ford said that
the limitation OF the franchises was stated in the
franchises themselves.
Mr. Mathewson broke in with a question as 10
whether the Deputy Attorney General meant that
the city could limit the duration of a franchise
granted by the state.
That Is exactly what ! want TO find ont e, said
Justice Mccall.
Mr.. De Ford explained that he believed the city
IN doing so was exercising powers conferred upon
it by the Legislature
Mr. De Ford then took up the matter Of alleged
monopoly. declaring that the Consolidated held all
the gas and electric lighting companies in Man
2attan and The Bronx except the Bronx Gas and
sodated had violated the STOCK roDSna1as e9 in Ior
pNFaton law that prohibits the securing OF a mon
Section T. Atiee o PGSnf Of fhe necsSsfy bo
continued, says the Legislature shall not pass a
private or local bill In any granting a cor
Poration or individual any exclusive privilege or
He said that the Consolidated bought up the New
Amsterdam, Standard and Mutual companies with
~ and that for this violation Of law It should for
charge he Went ON 81 SuihariTing undfr 'h,s
me to say that the laws which have been Violated
l68 o. the Penal Code and Chapter $50 OF the Laws
Ir. Beck commenced hig argument by pointing
or th.E Ia wIaakecs had realized the seriousness
mat Of dso4eo 6F he orsy 2g aea 9eea It } mot o
This means he said. THAT the Legislator,
recognized that the mere COMMENCEMENT Of
copoaon h at east et aaa and an f9sF eest ff t
corporate purposes for which In the public interest
ton may exhaust It's franchises by some neglect or
derect, i does not follow that for any trivial or
would fGiy tustaed in pTonoancing jadgmeny jaTsy
OF corporate death. on the contrary, the judiciary
t:usL ,, detetInine Whether the case Is one which
sJaie d gaze me companies the right TO lay mains
aned from 6otR boards Of the 9 9ommn Ge Ho
the. expiration Of the time Of such municipal fran
up its mains cease to maintain them in working
order. He said that New York city the only
gas company and ne wanted 10 know why the At
torney General had not started proceedings against
He mentio4sd the gas eompa9y's victory II the
Justice Mccall should refuse the Attorney Cen
erals application until the case was decided in tho
"T7ropriety also should suggest" said Mr Beck
that the Attorney General has standing here
What Is the matter Of city franchise to him2 Tho
The CORPORATION Counsel has taken it to the courts
and It Will be adJu6icated there"
The lists Of exceptions filed by Mr. De Ford and
Mr. Burr with Master Masten covered about every
conceivable point in the masters report Mr.. Burr
in his exceptions said: Reduced TO It's ultimate
effect. any value of franchise and good will pos
seesed by a monopoly virtual practical, de-
pends upon its ability 10 extort more than fair
profit fixing the price of what It sells. AS for
good will there can be such thing a good will
In the case Of "A monopoly. Good will be OBJ
tained In a competitive business by superior service
and ability"