Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-06-11
GAS COMPANY
MUSTFACE SOME
GRAVE CHARGES
ACCUSED OF REBATlNG AND
OFFERING BRIBE
CITY PROSECUTOR PREPARES TO
PUSH CASES
Complainants Make Daily Visits t
Police Headquarters to Invoke
Law Against Light
ing, Company

Ia VeSUSaJlOn by the OIIlCeIS OL Ile
"A prosecuting attorneys office, evil
dence has been unearthed tending to
show the Los Angeles Gas and Electric
company has for over year and is at
the present time violating two city ord
inances by a system of rebating. AS
result of these Investigations COM
plants are being prepared in the office
of Prosecuting Attorney Guy Eddie,
and will be filed next week, in which
fourteen members of the board of di-
rectors of the Los Angeles Gas and
Electric company are named as de-
PENDANTS.
The evidence was brought out by
daily visits to the office of the prosecut-
ing attorney of scores of women, one OF
whom, when interrogated by reporters
Yesterday admitted that she had filed
a complaint against the rebating she
alleges is practiced by the Los Angeles
Gas and Electric company. Further IN
ouiry revealed the fact that over fifty
complaints of a similar nature had Deen
filed in the last two weeks.
When the subject was broached to
CITY Prosecutor Eddie the latter did
not wish the matter to be made public
at present, but when informed that sew
eral of the complainants acknowledged
they are to be summoned as witnesses
when the cases come to trial, admitted
an investigation was under way and
that proof of the violation of the laws
had been found.
Bribery Is Charged
According to the story of a number
of the persons who complained OF the
alleged rebates, the Los Angeles Gas
and Electric company has for year
endeavored by every means to drive tne
People's Gas and Coke company, for
merly the Lowe Gas company, out OF
business. To accomplish this purpose,
1t is said, they have offered rebates to
persons who have been using the Peo-
pies gas, and in number of cases
cash In amounts varying from s. to
s100 has been offered users of the Peo-
pies company gas to discontinue with
that company and have the meters OF
the Los Angeles Gas and Electric COM
pany installed.
The further allegation is made that
officials of the Los Angeles Gas COM
pany, becoming cognizant of the fact
that an investigation was under way
had attempted to bribe one of the at
taches of the prosecuting attorney
office in an effort to have him desist IN
his efforts to obtain damaging evil
dence.
According to the story, this officer OF
the prosecuting attorneys office-whose
name will not be divulged until the re-
hate cases come to trial-waS ap-
preached by an official of the gas COM
pany under investigation. and offered q
lucrative position with the company II
he would withhold what information
he had gathered and cease his efforts IN
further Investigating. The matter was
reported to the prosecuting attorney
and a tran was laid to catch the person
who offered the bribe, and the oft1cef
who was approached was instructed 70
act his part, and appear favorable TO
the offer. - -
nosition with the Los Angeles Gas
company at a salary of $40 day. Ex-
nerience in the business would not be
necessary, he was told; all he would
have to do was to look wise and draw
down the money.
Plans Go Awry
plans were completed to such an ex-
tent that a meeting was arranged be-
tween the gas officer and the attorney
at a saloon near police headquarters.
The officer of the prosecuting attor-
ney's office was on hand and also the
official of the gas company.
Several curious loungers were also
about the place who were to be wit
nesses if a bribe was offered. In some
cious, and just as one weeks pay was
about to be handed over he smelled a
rat and refused to give the money in
advance.
The name of the official and the de-
tails of the transaction will materialize
in court it is promised, and only the
intuition of the gas official saved him
from having an additional charge of
bribery against his name. The attempt
ed bribery will be thoroughly threshed
out.
Among the various ordinances on
the law books of Los Angeles are two
that apply particularly to the rebate
cases. The first ordinance regulates
the regular maximum rates to be
charged for every 1000 feet of gas con-
sumed. The city council fixes this rate
yearly The second ordinance makes
it unlawful for any person to take,
receive or accept remuneration or a
sum of money as a rebate, drawback
or otherwise from any other person
for it's gas less than what is charged
any other person, firm or corporation.
The rebate provision is copied from the
old federal laws and inserted in the
city ordinance.
AS the result of numerous complaints
investigation was begun along the
main lines of the Peoples Gas COM
pany. and it was found that the Los
Angeles Gas company had been offer
ing inducements to the Peoples sub
scribers to change to the Los Angeles
Gas company. 1t was found further
that inducements had been offered to
others not on the Peoples main lines
to take Los Angeles gas. The induce
ments varied from So to 800, and an
additional inducement in some cases
was made of supplying free electricity
If Los Angeles gas was used.
Find Fifty Instances
AS a result of this system the con-
sumers were anxious to change and get
the benefit of the cash bonus. About
fifteen cases were found where free
electricity had been promised and over
fifty cass where cash inducements had
been given, it is said.
When questioned the gas officials Of
fered the excuse that in cases where
money had been offered it was for
services rendered and not a rebate.
They claimed they paid certain per-
sons to watch out for their interests
Continued on Page Five'