The San Francisco call., 1908-12-24

creased cost of oil 1t has been stated
that the company has sold gas as low
as e5 cents a thousand and has de-
livered it at an average price of 81
cents. This is a competitive matter
and entirely aside and incidental TO the
bearing. The value and rate must be
determined without reference to what
the company may do in voluntarily re-
linquishing part of the income to which
it is entitled.
COURT CAN NOT FIX RATE
1T viii probably not be necessary to
repeat that the court has no power
to fix rates; still, if an unconscionable
rate be imposed the court may take
notice thereof"
The gas company was represented in
the litigation by Attorneys Garret Nc
Enerney and Joseph H. Mayer AS
sistant City Attorney Haven appeared
for the city and presented an array of
facts showing that the company was de-
irving an unusually large income based
on the value of the plant as figured by
the city's experts. In speaking of the
decision yesterday, Haven said:
THE decision is a disappointment to
u.s. The presumption is in favor of
the city on a rate fixed by the super
visors, but the court takes the position
that that presumption has been over
come by the showing of the gas COM
pany."
TESTIMONY TO BE TAKEN
City Attorney Percy V. Long said
yesterday that the taking of testimony
would now be begun on the final hear
ing. This evidence will be given be-
fore a master in chancery and will af-
ford the city attorney an opportunity
to cross examine the witnesses of the
company.
Il believe that in the main features
of the case we can establish our posi-
tlon," said Long. This hearing has
been on affidavits, but in the final hear
ing we will be able to go more deeply
into the matter to establish the values
fixed by the board of supervisors.
We belieye the valuations of the
officers of the company to be much ex-
sggerated. For instance, the price at
which shares were sold practically
within the company itself was taken as
basis of value. The fact that the
money must be impounded will tend to
hasten the final hearing. This decision
means only that the court believes
there is a probability that the COM
pany can establish its contentious on a
final hearing"
The ruling of Judge Van Fleet con-
tinues in effect the restraining order
sented.
FIGURES AGAINST CUSTOMERS
That figures never lie in favor of the
customers of the California gas and
electric company was brought out yes
terday morning before Referee in
Bankruptcy Milton J. Green. The
trustees of the Mechanics foundry COM
pany, bankrupt. had appeared to file
their first account and declare divi-
dend.
During the hearing a claim from the
gas company was presented for $774O
The charge was made for electric power
furnished the foundry from June Is
TO July 2S. An objection TO paying the
bill was made by Attorney Alfred Su-
tro, appearing for the trustees. as the
foundry had been closed the entire
time, the fuse leading into the building
having been removed the day the
charge commenced.
The gas company was represented by
a boy who had come from the Office to
file the claim. The lad was unable to
offer satisfactory explanation why
the charge had been made. referring
those concerned to the higher ups of
the corporafion