The San Francisco call., 1908-11-07
INJUNCTION LIKELY
IN GAS RATE CASE
Judge Van Fleet Seems Dis
posed to Permit ST Schedule,
Pending Final Hearing
Garret McEnerney Makes Clos
ing Argument and Matter
Is Submitted

The gas case was submitted to Judge
Van Fleet yesterday in the United
States circuit court after Attorney Gar
ret McEnerney had made the closing
argument for the corporation. The
judge announced that he would render
a decision as soon as possible He
added that he would make an oral rul-
ing and not take the time to write out
an elaborate opinion.
The principles are so well estab-
nshed, said Judge Van Fleet. that all
one has TO do is to apply the prin-
ciples to the concrete facts. An opin-
ION that entails a detailed statement
suDSerVes no special purpose"
An agreement was reached between
the representatives of the gas COM
pany and the assistant city attorney.
by. which the money in excess of that
provided for under the 50 cent rate
viii be impounded to await the final
adjudication of the case. The sum for
each month viii be deposited on the
10th day of the following month.
Judge Van Fleet stated from the
bench that he was not disposed TO put
the company to the expense and trou-
bic of filing a a-duplicate list of its
excess collections, and asked that it
Keep the record available at all times.
Haven raised the point that the city
should be provided with a duplicate.
but the judge thought that il would
be sufficient TO keep the one copy where
1t would be available both to the COM
pany and the city attorney.
The tenor of the judges remarks in
dicated that he was disposed to grant
the Injunction against the enforcement
of the S5 cent rate as requested bv
the company. This would mean that
1t would be empowered TO collect on
the 81 schedule pending the final hear
ing.
McEnerney occupied a little more
than an hour yesterday in his closing
argument He stated that the action
or the board of supervisors in restrict
ing the company's income TO the lowest
level removed all incentive for i'm
provements or economical methods. He
asserted that the company was forced
to put into effect a nonremunerative
rate to meet competition.
Suppose" inquired Haven. "the com
pany was compelled, by reason of COM
petition, to make a 10 cent rate
throughout the city. although the su-
pervisors had allowed an So cent rate,
would the company still claim that the
50 cent rate was confscatory2"
Not feazed by the reductio ad ab-
surdum. McEnerney replied in the af-
firmative.
Inc gas company representative
contended that the right of profit was
guaranteed by the constitution of the
United States He then emphasized the
fact that no allowance had been made
by the supervisors for depreciation.
In conclusion. he urged the point that
II the injunction were granted the con-
sumers and the city would be safe
guarded against injury by the impound-
ing of the money, whereas. II the in
junction were not granted the cou,-
pany would be unable to collect the
excess in case the final judgment should
be in it's favor.
During the hearing reference was
made to the Boston system of fixing
gas rates and the method was COM
mended by Haven. Under that plan the
company is allowed an extra dividend
of l per cent for every reduction of
cents in the cost of gas to consumers.