New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-12
Gas PAPERS SERTED.
Consolidated officials Not Fright
ened by JackSOn's Second Suit.

Service Of the papers in Attorney General Jack
sons second suit against the Consolidated Gas
Company was made yesterday Robert A Car
ter secretary Of the company. The officials OF the
company announced yesterday that they as
confident OF winning they when Mr.. Mas
ten the special master. handed down his famous
"s0-cent report in the hearing held before him as
part OF the gas company's suit prevent the en-
forcement OF the So-cent gas law.
Mr.. Jackson's second action is narrower In scope.
as was told In yesterdays Tribune than the first
which he argued on June before Justice Mccall.
and IN which he asked permission 10 bring suit 10
annul tho corporate existence OF the Consolidated
on tho ground that It had formed a monopoly and
that the charters OF most OF its constituent COM
panies had lapsed.
The decision of Justice Mccall has not yet been
handed down, so the ever working Attorney Cen
eral has been kept guessing to whether he
would be allowed to bring such action.
In discussing the yesterday Mr.. Jackson
said: Even II permission is granted me TO bring
suit under my application l can reason
why 1t should be supposed am 10 drop this second
suit have heard nothing from the Corporation
Counses office regarding its suit against the gas
company. We would be perfectly willing. how
ever. to assist that office in any way should we
be requested. There has as yet been no coabora-
ton. My stand regarding the gas company is
fully set forth in the papers on file.'
Corporation Counsel Pendeton said that he had
not yet had time master the details of the
various gas actions. There will be no change -
he said. IN the personnel OF my assistants who
l.
our relations with the Attorney Generals office
on this matter. l know nothing yet
An official Of the Consolidated seemed cheerful
enough yesterday. and pointed TO the Masten re-
port. II in this that tho master. appointed bv
United States Circuit Court. decided after hear
ing ten encyclopaedia sized volumes of evidence
that the gas company could not he forced to sell
gas at the legal rate because II could not thus nav
dividends its capitalization. including the 500
600 600 worth OF franchises and goodwill he
termed II.
Master Masten." said the gas official seems 10
have decided the question the Attorney General
raises regarding the validity of the franchises of
the subsidiary and constituent companies The
master said, for example: Whatever NAV no the
defects IN these franchises, the fact remains that
the complainant has their fun use and enjoyment
to-day, and no evidence whatever appears in the
that its right to exercise them has been at
tackled even questioned by either state or mu-
nicpal authorities The proof shows that the Con-
solidated Gas Company has actually placed and "a
now maintaining and operating its mains in every
street in the Borough OF Manhattan. with the pos
sible exception of few unpaved ungraded streets
In the upper end of the island. There is no sup-
gestlon that any one OF its constituent companies
whose municipal franchises claimed TO have
lapsed, did not do the work Of digging into the
streets and laying It's mains within the period
named in it's municipal grant that It did not per
form its duty TO the public by supplying gas there
from
"Whyr continued the Consolidateds official. "tbs
master In his report. says also: Furthermore al
though since tho greater New York charter went
into effect in 1887 the municipal authorities have
been permitted to grant franchises only for TWEEN
ty-fve years. and on conditions reuuIrirp CT
stantial return to the city. there is no suggestion
that the right to enforce such requirements as
against the Consolidated Gas Company has ever
Dteh asserted by the city. In shorts far as the
present record shows. the municipal authorities
have fully acquiesced in the continued use and &c
cupauon o. the streets by the Consolidated Gas
Company ~
This upholds our contention" sa,d tna oe,,,o,
that our franchises have been acknowledged valid
ioi many years by the city and the state"