Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-07-01
GAS COMPANY
CHARGES MADE
REBATES AND RATE CHANGES
ALLEGED
WARRANTS ISSUED FOR OFF,
GERS AND DIRECTORS
City Prosecuting Attorney Guy w.
Eddie Says He Is Going After
officials of Los An-
geles Concern

Two complaints charging the officials
and directors of the Los Angeles Gas
and Electric company with giving re-
bates and with lowering the price of
gas and then increasing the rate with
out authority from the city council as
provided by law, were issued by Prose-
cutting Attorney Guy W. Eddie yester-
day afternoon, and sworn to before Po-
lice Justice Rose Warrants were placed
| in the hands of the police to serve.
The directors and officials who are
made defendants in this action are W.
Is. Cline, William NJ. Van Dyke, Will
| liam Bduerhyte, William A. Cheney, S.
w. Garretson, r. Nj. Adams and A. B.
Day. A. b. Foreman a collector for
the company, also is named as a de-
fendant i'm the two complaints
The action taken by Prosecutor Eddie
yesterday is the result of a systematic
investigation of the methods of the Los
Angeles Gas and Electric company Nj
merous complaints had been made by
residents in certain districts where the
Peoples Gas and Coke company has
mains, and rebates, it is alleged. rang
ing from IS to 500, were offered users
of gas to quit the Peoples company and
take the gas from the opposition con-
Germ. In some cases it is said free
electricity was promised if the person
using gas from the Peoples company
would discontinue that service and
have the meters of the Los Angeles
corporation installed.
Misdemeanor to Change Rate
officers working under the direction
of Prosecutor Eddie have been busy on
the case since the matter first was re
ported, and more than fifty persons, it
is thought, will be summoned as wit
nesses for the prosecution.
The city council fixes the rate to be
charged for gas, and makes it a INSIDE
meanor for any person or persons to
change the price per 1000 feet unless
authorized to do so by the council. The
council fixes the rate yearly
Another ordinance regulating the
price of gas prohibits the giving of re
bates, and makes 1t unlawful for any
person to receive or accept such remun-
GRAFTON, or a sum of money as rebate,
drawback or otherwise.
The first complaint alleges that A. 3.
Foreman, an employe of the Los Ange-
les Gas and Electric company, supplied
gas to Fl. g. CastanadO from January
l. 1909 TO June 5, 1909 and installed
the meter by giving a special rate and
rebate to Castanado. This complaint
also alleges the Los Angeles Gas and
Electric company supplied certain resi-
dents of this city with gas at reduced
rate-a price less than certain others
We're charged.
The second complaint charges the
Los Angeles Gas and Electric company
with lowering and then increasing the
price of gas, and names the case of J.
p. Hall of 1876 South Hill street. who, it
is. alleged, was a patron of the gas
company from July s, 1909, to April 6,
1903.
we are going after these people, i"
said Prosecutor Eddie. "Tf they can
afford to decrease their rates for a ia
vored few, We want the public to know
about il, and we are going to prosecute
the directors from the heads of the
departments down to the employee who
was an agent i'm the transaction.
"I believe i'm going after the officials,
as they undoubtedly are responsible for
the alleged rebates and should be pun
ished."