New-York tribune., 1909-02-05
GAYNOR. COURTS CRITIC
PILLORIES GAS REPORT
And JUDGES.
Justice, an Portia Club address,
Praises Presidents Expression
of Opinion.

OF OUn1On.
Speaking before the Porta Club at the Hotel
AstOr yesterday afternoon on the SO-cent gas
law, Justice Gaynor said that in his opinion the
country had reached a danger point, and he was
exceedingly apprehensive when the decisions of
the lower federal courts declaring the law
constitutional went to the United States Su-
preme Court. IF the decisions of these lower
courts. that the law was unconstitutional had
been allowed to go through" he said, II believe
the confidence OF the people in institutions
would have been so impaired that the founda-
tions of the country would have been shaken
Proceeding the hypothesis that the courts
of the land were open to fair and honest criti-
cism, Justice GaynOr, speaking in general terms
On the issuance of ex-parte injunction, such
as was done in the S0-cent gas case, said that
such injunCtions being issued all the time.
and some of them by Judges whose mental and
legal attainments would not entitle them to
membership in the Portia Club. He reviewed
the history of public service corporations nad
the right conferred on them by the so-cled
franchise, which. he said, simply permit
to the public streets and do business for the
people. Bringing up the decision of the special
master in the gas case, that the company was
entitled to a g per cent return on the value of
the right granted by tha state, he said:
Why should we pay per cent on this value?
Why should pay anything? They say this
franchise-this permits valued at $1S,OO,-
600. Something like that. AS the city grows
this permit to DO business with the people will
be more valuable, and they will want TO pay
more for gas. in order to keep up the per cent
return. Is this thing going to last forever? No!
The United States Supreme Court cut the valua-
ton of the franchises In two. l surprised
that they did not cut them all out. Mark my
word, the next time they viii do It"
PRAISES THE PRESIDENT.
I'VE have heard a lot Of silly nonsense about
the sanctity of the courts" he continued. (which
was brought out by President Roosevelt who
gave expression TO an honest opinion that many
desirable things in this country had been
thwarted by certain court decisions. The gas
question is allied TO the railroad question. We
ought TO be thankful that the country at last got
a President who fought this question of favorit-
ism and discrimination in freight rates.
"A great many little people with heads the
size Of a pin. legally speaking have been say
ing: Why this meddling with our business: It
is not private business; it is public business
The abuse that had grown up IN the way Of
discrimination in freight rates was the greatest
crime of our day and generation.
"All blessings should be invoked on tha P-esI-
dent and others who have fought against it.
Don't chime in with those who say lha: this man
is unsafe that he has lost button They said
that about Frederick the Great I find that
ordinary men always have thought every big
man in history crazy. That is because they
cannot think the same way.
1T got bad that a few years ago we found
that every staple article 90 life had passed into
the hands Of a trIst because Of the discrimna-
tion in favor OF big interests. I have no hard
feelings against the trusts but against the gov
ern1nent and those in the government who al
lowed the abuses to go on"
Having stated that all public service corpora
tions did business under permit Of the state,
which expressly reserved the right to regulate
the rate at which the service should be furnished
to the people Justice Gaynor asked what right
the United States courts had to interfere.
NO REDRESS FOR PUBLIC
How did it happen he asked, that just as
soon as the Legislature had fixed the rate of gas
at 80 cents the company filed suit in the
United States Court and got an injunction which
prevented All enforcement of the law? It was
because of a provision in constitution which
says that property cannot be taken except by
due process of law. They say that to fix the
price of gas SO low that the investor cannot get
a fair return On his money is a confscation of
his property. But, on the other hand if the cor
porations declaring dividends beyond what
they have right to expect, they taking
not? Did you hear of a court coming out
against this form Of abuse? But the Legis-
lature is attending to that for us"
Describing what happened after the passage
OF the SO-cent law, the speaker said:
The company filed its bill in equity. 4 re-
spectacle gentleman in plain clothes signed
ex-parte injuncton-a very respectable gentle
man-without having gone into the thing at all
The committee of the Legislature had made
most exhaustive investigation as to the price
which the company could afford to sell gas.
Their work was all tied up by the stroke Of
quill pen Then they appointed master to in
vestigate Did that investigation equal that of
the legislative commission? Emphatically. no.
The company began TO pile up its property on
the table of the master. on top of all they put
what they called their franchise, and valued it
at something like $1SO00GOO And the master
handed down a report swallowing everything.
hook line and sinker. 1t all slid through in the
courts here but it all came tumbling down in
the Supreme Court of the United States"
Justice Gaynor was introduced by Mrs Frank
H Cothren president of the Portia Club, as one
Of the few men on the bench who stood for the
people and by the people and against the laws
delays. which made us the laughing stock Of
other nations
FIRES COST U. S. $50OOO0.O0G A YEAR.