The sun., 1918-08-14
CLASH OF DECISIONS
IN GAS RATE FIGHT
Hughes's Judgment Is Filed,
but Justice Benedict VIII
Grant Injunction.
BOTH SIDES TO APPEAL
Lawyers for Brooklyn Borough
Company and City Are
Rebuked in Court.

These were the developments In tho
Brooklyn Borough Gas Company case
yesterday, to which the other gas com
panes have been looking forward az
giving them a chance to increase their
rates:
Counsel for the company filed the
findings OF former Justice Charles f.
Hughes. the referee, with County Clerk
Schneider In New York county and OBJ
tained a Judgment declaring that the
so cent law OF 1906 was oonfiscatory and
that the s5 cent rate fixed by the Public
Service Commission IN 1918 had been
rendered null and void by later legisla-
ton, and declaring that the Public Ser
vice Commission was enjoined perpetu-
ally from enforcing such rate,
Two hours later after hearing argu-
ment Justice Benedict in the Supreme
Court. Brooklyn. announced that to-day
he would grant the order asked by the
Public Service Commission permanently
restraining the gas company from put
ting into effect it's announced rate OF
s125. or in fact any rate In excess OF
95 cents.
The Justice said he would stay the
execution Of the judgment and severely
censured Wilson w. Thompson OF Bas-
sett Thompson & fitzpatrick, counsel for
the gas company, for entering the md
inss and the judgment in the face OF his
temporary injunction.
Appeal Waits Until October.
Counsel for the company announced
they would appeal from the order OF
Justice Benedict. il granted to-day. as
announced. No hearing can be had until
the Appellate Division reconvenes In
October.
Counsel for the Public Service Com
mission expressed their determination to
take an appeal from the findings and
Judgment of Referee Hughes They also
will ask the Appellate Division, First De-
partment. for n stay Of the operation
OF the judgment pending n hearing on
their appeal in October.
From the argument and the evidence
now before me-" said Justice Benedict,
IT think shall sustain the petition of
the Public Service Commission. l be-
lieve that the learned referee. for whose
legal ability we all have the highest
respect, has fallen into error"
Mr.. Thompson expressed deep regret
that he should be considered to have
committed contempt Of court in fifing the
Hughes judgment.
After the Justice had assured the
lawyer he did not think there was any
wilful disregard Of the courts order he
said the incident would have no bearing
on his handling Of the case.
Justice Bars Out Politics.
John r. o'Brien. Assistant Cor
poration Counsel. said:
I'VE deem the action OF this company
in trying to charge rate higher than 95
cents Is highhanded. Their moves in
this case are being closely watched by
| other gas companies whose attorneys
are in court. and who are seeking TO put
their hands in the consumers pockets,
| and
81 cannot permit such statements"
said the Justice. We haze no politics
to discuss here. simply question Of
law"
The Public Service Commission con-
CURED yesterday in a series of recon-
mendations made by Commissioner
kracke to the gas companies look
ing TO preventing this winter a
| recurrence of the shortage OF gas
, during the severe cold weather.
He found that all the companies
failed to keep up the standard OF
their gas not because of the cold
weather, but because they had failed to
| make proper preparation. having too
small stocks OF coal and oil. and in the
case Of some companies because they
were short OF equipment.