New-York tribune., 1908-02-08
ARGUE on GAS RATE.
Public Service Comm mission Counsel
Pleads for Rebeoring of Case.

Judge Hough. in the United States court. yester
DAY heard motions for rehearngs his de-
cision in the al-cept- gas case. Counsel for the
Consolidated Gas Company asked an increase Of
the capitalization and a reduction OF the income
of the gas company used by Judge Hough in
his decision. while the Public Service Commissions
proposition is in effect TO decrease the capitaliza-
tion and increase the income used as ha isis for
the decision.
Judge IIough has held that Rs 90 crD rea-
soma HE capitalization and that the valde of the
franchises owned hz the company should be placed
s12eao,eo Under these valuations the contcn-
ton OF the company that so-ceut rate is un
constitutional because the company
4 rca asona hle profit was upheld hy Judge Hough,
+ r. Whitney, who made the principal argu-
nrent for the Public Service Commission. said It
was assumed in Judge Hough's decision that the
company would have TO pay large special
franchise tax for the year beginning May. 1866
under the eo-cent Law il did the year before
under the 81 rate. lie showed that this
was based net earnings the companys tax
would be less. lie contendcd that the plea of the
company that the provision of the new law re
curing s2-candle power would entail added
tense of s3aGl9 not well taken. as 22-candle
power had always been required under the law,
and the company had been derelict if such power
had not been furnished il the past.
Nj Whitney argued that these and other changes
in the basis of decision would make the in
come Of the company 81 per cent the sso,eo0..o
capitalization allowed by the decision. Even on
that basis, he said, Scent gas would be constitu
tional-
AS TO the value OF franchises. Mr.. Whitney said
that the companys own statements contradicted
the values placed them by Judge Hough- IN
1854 the company contended that its franchises
were worth s. Isl 0HD the judge reckoned that
the increase in value since then would bring them
up 10 sl210H0. Mr.. Whitney cited a petition flied
by the company a franchise tax case when in
: sworn statement the secretary stated that the
value of the franchises had not increased since
1an and that ali the franchises together including
mains and services would sell for more than
.1A nsDu The Judge, however, found that the
,,alre Of the mains and services sl5.0to.0o
N- Whitney also stated that the s1,76100 Valua hn
niaced on the franchises in 1854 included S2,S1ep
for natents which since have expired Not on>
<bo,,1d that amount deducted. he said but also
tho 20 ner cent of this amount which had been
edde5 t II as an increase In valuation in the inter
xenirr time Making these deductions. Mr. " MT
rev argued the rate OF return on the captalzatlo
1yo,,id he increased per cent, which "ould
make the law constitutional
Finally Mr Whitney argued that II the judge
found that 81 or s4 cent gas was constitutional ne
e,ouI6 inform the company that II 1t did not re-
d,,cs its rate 20 that figure its suit would De os-
tssed except as an Injunction against the penalty
ord .ba pressure provisions. The Public service
Commission could then get retrial of the case III
,ba s+a,e courts through suit to enforce the pro-
visions OF the law.
r.risf arguments on behalf OF the stcenf gas Id"
,,ere also made by ex-Judge Alton B. Parker on
,ah.,s of the city and Senator Alfred H. Fa e anu
", he Ford for the Attorney GeneraIs ohce'
Counsel will hand In briefs next week