The San Francisco call., 1908-07-15
Judge Van Fleet Temporarily
Enjoins Enforcement of
IS Cent Rate
Company Gives Bond to Re-
fund Difference If Suit
Goes Against 1t

the enforcement of the rate of So cents
per 900 cubic feet adopted by the
board of supervisors The consumers
interests are protected pending the final
settlement of the controversy by
bond of $15O,O00, given by the San
Francisco gas and electric company All
bills of the company will provide for
a refund should the court rule against
the 81 rate. The interests of the rate
payers will be protected by the court,
Judge Van Fleet stated. The restrain
ing order may be terminated on days
notice should. its terms be violated.
The suit Of the gas corporation to
restrain the city from the enforcement
of the fixed rate came up before Judge
Van Fleet yesterday morning. City
Attorney Percy V. Long and Assistant
City Attorney Thomas D. Haven ap-
peared for the city and Garret W. Nc
Enerney for the company. John A.
Britton, president of the company, was
in the courtroom. Haven presented to
the court an affidavit by the city at
torney to the effect that the city's case
was not ready for presentation as the
chief assistant city attorney, Haven, had
been occupied with the Spring Valley
water case, and could not prepare the
answer to the gas company and, fur
thermore, that a. NJ. Hunt, one of the
city's experts, was out of the city.
Long asked that the matter go over
until some time subsequent to August Is.
WANTS COMPANY PROTECTED
McEnerney asked that the interests
OF the company be protected pending
the hearing of the case. He contended
that unless the court restrained the
collection of the So cent rate the COM
pany would lose heavily if it should be
decided later that the legal rate was
higher. Long could not agree to a re-
straining order being issued, but en-
tered no protest, asking. however, that
the consumers be protected by a suf-
ficient bond. The bond of $150OOO was
agreed upon, on the statement of Nc
Enerney that the difference between
the fixed rate and the 81 rate would
amount to between $4,000 and $3.50
month. Should the proceedings be
continued to such length that the $780,
600 bond would not be sufficient to
protect the rate payers, it was stated
that a supplemental bond would be
furnished by the company.
The session of the court was not en-
tirely devoid of profit, for it was the
occasion Of the introduction of a new
word into the western vocabulary. Nc
Enerney was the innovator, but he
modestly denied being primarily re-
sponsible for the term he invoked
The word came up during a discus
sion of the amount that might be al
lowed a company for depreciation.
I'VE understand it is the contention
of the company that much of its ma
chinery is put out of use by the intro
duction of new methods" said Long
"and that the company demands an
allowance on that account for depre-
ciation."
That is called 'obsolescence.' Nc
Enerney commented, proud of his new
word.
COURT WANTS DEFINITION
will you kindly accompany that
with glossary?" suggested Judge Van
Fleet
When court adjourned McEnernev
explained to the assembled philologers
that the word was introduced by a.
public service corporation of New York
After he had read longs affidavit
Haven added that it was absolutely
impossible for the city to prepare its
case and answer the long complaint of
the gas company in a short time. He
stated that A. NJ Hunt, the civil en-
gineering expert, would not return to
the city from the east until July 27.
The other city's expert is C. D. Stew
art, public accountant, with whom
Haven Will also have to confer
McEnerney took occasion TO refer to
the act of the supervisors in fixing
the rate by saying that they had a
false notion of the meaning of the San
Diego water case decision of Judge Van
Fleets in its reference to deprecia-
tion. They believe that depreciation
is not a just subject for allowance.
while the privy council OF London has
decided that depreciation is included
in the primal cost" said the attorney
for the company.
The view in the San Diego case
was that the rate should not fiuctuate
with the values" explained Judge Van
| Fleet. THE investor should get an
! income on the amount he had invested
! The trouble is that the supreme court
of the United States has never walked
| up to the trough and eaten out of it;
that is, it never took up this problem
and decided it."
! In agreeing that the gas company
would not charge more than 81 per
| thousand cubic feet Of gas, McEnerney
stated that the contention of the com
pany was for $1.23 rate. The com
plant against the city merely asked
| for a reasonable rate.
CORPORATIONS RIGHT CONTESTED
John s. Partridge, who was assistant
city attorney under Long during the
latter's previous term in office, and
who handled the suits between the
Spring Valley water company and the
city, stated yesterday that he did not
believe that a corporation had a right
| to set a rate pending the adjudication
of rate fixed by the board or super
visors.
Neither a water company nor a gas
company has a right to collect from
consumers pending the settlement of
rate litigation" Partridge declared
yesterday afternoon. THE courts have
ruled decisively that they cannot fix a
rate and it is my firm belief that the
authorities do not permit corpora
tion to establish a rate
City Attorney Long stated last
evening that he was not decided on
the point taken by Partridge that a
company could not collect a rate while
/ the rate question was before a court.
There are many questions involved in
both the gas and the water suits which
will be settled definitely wnen they
are decided" he said, "and that mat
ter is one of them. I would not like
J to advise any one on the right of the
company to collect a rate. The re-
straining order of the court ties the
city's hands from interfering with any
rate which the company might fly and