Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-01-14
TO BAR
HEPPENHEIMER AS
GAS CASE JUDGE
Record Moves He Be DisquaI-
flied Because of His FL
nancial interests.
ERRORS COURT DENIES
UNUSUAL APPLICATION
Public Service Counsel, Sur
prised, Says He Never Heard
the Like.
Special to the Evening Star.

Special To the Evening Star.
TRENTON, Jan. 14.-Claiming that
Judge Ernest j. Heppenheimer, of
the Court OF Errors and Appeals, Is
financially interested In the outcome
of the application for a reargument
of the ninety-cent gas rate. George
L. Record, special counsel for Pater-
son and Passaic, today moved that
Judge Heppenheimer be disqualified
for sitting with the court in the
case. The court, after a conference,
however. denied the application.
Judge Heppenheimer was one OF the
six jugdes of the court who voted to
reverse the 90-cent gat rate.
The whole court Immediately went
into conference on Mr.. Records mo-
ton. Mr.. Record related to the court
the fact that Judge Heppenhelmer Is
president OF the Colonial Life Insur-
ance Company, receiving salary of
$4,000 a year, that he Is also a di-
rector and presumably stoc'lholder.
Mr.. Record also said Judge Hep
penheimer Is a director of the Trust
Company OF New Jersey and is
brother of General William c. Hep
penheimer, q director of the Public
Service Corporation. Mr.. Record next
recited that the two companies, in
which Judge Heppenheimer Is con-
nected, own stock in the Public Ser
vice Corporation. Mr.. Record next
quoted from the testimony of Thomas
n. McCarter, of the Public Service
Corporation. that an adverse decision
to the company in the ninety cent
gas rate would be detrimental to the
subsidiary corporations holding stock
| in the Public Service.
After reciting his reasons Mr.. Rec
| ord challenged the right of Judge
| Heppenheiner to sit with the court
! In the argument to he made.
| Robert H. McCarter, counsel for the
| Public Service Corporation, said that
| he was entirely surprised at Mr.. Rec
ord's motion, and said he was un-
aware that such action was contem-
plated. Mr.. McCarter declared that
1t was the first time he had ever
heard 1t suggested that, because a
man held stock in a corporation he
would be preiudiced in a decision in.
vo'ving such a corporation
The Court of Errors and Appeals, in
conference. unanimously decided tc
permit Judge Heppenheimer to sit
| with the court in the application for
reargument. Chancellor Walker. pre-
| siding Judge of the court, after re-
| viewing the allega tions OF Mr.. Record,
said that, in the courts opinion. the
Colonial Life Insurance Company was,
in fact. a creditor of the Public Ser
vice. and that Judge Heppenheimer,
therefore, in the opinion Of the court,
under the statute, should not be dis
qualified from hearing the applica-
| ton.
| Lawyers in attendance said that this
was the first time the disqualification
] of a Judge had ever been asked be-
| cause of financial interests IN the
| case.
Argument for Reargument.
The court then proceeded to hear
| argument on the application to re-
| open the case Mr.. Record re-
| viewed the ninety-cent gas lit
| igation in detail, and cited
precedent for the reargument.
| He pointed out that under the
decision of the court, If 1t is allowed
to stand, all possible remedy to cities
and other consumers against any rate
| fixed by the company would be de-
MED. He declared that 1t would be
| impossible to read the decisions of
courts and commissions without feel
| ing that the whole subject of intangi-
| BILE values has yet to be cleared UP,
| and if this is q fact, he said, it is a
| powerful argument why this whole
case should be reopened and an at
| tempt made to arrive at some clear,
| definite and final expression of au-
thority which shall clarity this whole
subject of intangible values.
No Separate Value of Franchises.
"The truth is," he continued, "as
we see 1t, that there is no such thing
as a separate value of the fran
chises, which is capable OF being
be termed goodwill, going value,
the company has beyond reproduc-
ton value of its physical property is
| the value of the business, which can
be termed goodwill, going value,
| franchise value or business value, or
any other appropriate term. A fran
| chise as a franchise has no value
any more than key OF a house has
| value. You cannot use the house
without the key, but the value of tho
| key is nominal"
Mr.. Record held that the true pol
lev and the one that fits In with
every requirement of justice is to
consider all expenses of every kind,
! such as are supposed to be reflected
| in going-concern value, as operating
expenses, where they are, according
to universal practice entered, and
| <1.s..a -. page II CnIrsun A.