New-York tribune., 1918-08-02
City Will Join Public Ser
vice Commissions Test
of Hughes's Decision
Hearing Called To-day
Greatest Efforts Being Made
to Protect Citizens From
Arbitrary Increases

The city government will join with
the Public Service Commission in op-
posing, IN the courts of last resort if
necessary, the recent decision of
Charles Z. Hughes, as referee, which
permits the Brooklyn Borough Gas
Company to charge whatever rate it
pleases in the Coney Island district
and the parts of Flatbush served by the
company. The company now charges
a 9o-cent rate and mas announced,
through its counsel, that it intends to
raise the rate to SIPS.
Mayor Hylan, yesterday, instructed d
corporation Counsel Burr to oppose
the findings of Referee Hughes
=, wish you would vigorously oppose
the findings of Charles L. Hughes in
the Brooklyn gas case the Mayor said
IN his letter to the Corporation Coun~
sci.
The people should be protected and
nope those that are in sympathy with
this administration and under my
jurisdiction will give the best that is
IN them in behalf of the cause of the
people. | want to thank you for the
good work you have done since the first
OF January, 1873
Smith Promises Fight
Speaking for the Board Of Estimate,
Pres dent Alfred Z. Smith of the Board
OF Aldermen, issued the following
statement:
The decision of the Hon. Charles
4. Hughes. acting as referee in the mat
ter OF elghty-cent gas in South Brook
lyn, comes as a very great disappoint-
ment to the people of that section of
our city. The price of eighty cents
was fixed by the Public Service Com
MISSION and at its request was ratified
by the Legislature. The Hughes de-
clslon nulllties the work and labor of
the Public Service Commission and the
Legislature. His finding that neither
the Public Service Commission nor the
courts can fix rate and that the com
pany is free to charge what IL pleases
SHOWS that something is wrong some
place, and, speaking for the city and
the Board of Estimate and Apportion-
ment. desire TO say that the city will
promptly, and with all the resources
that 1T can bring to its command, fight
the decision Of the referee to the court
OF last resort"
The Public Service Commission an
nounced yesterday that it would hold
public hearing on the Brooklyn gas
case at its Offices, 40 Lafayette Street
at 1880 this morning. The representa-
tlves of various civic organizations in
the Coney Island district will partici-
pate in the hearing. The resolution
for the hearing directs an investigation
and examination "as to the condition
affairs, operations and finances" of the
company and also directs an inquiry to
fix the maximum price which the com
pany may hereafter charge for gas.
No Doubt of Boards Power
1t was said at the office of the COM
mission that even under the findings
in the decision of Referee Hughes
there could DE no doubt or question Of
the commissions power to hold such an
investigation, and thus to ascertain
what would be a reasonable rate for
the company to charge during the war
period.
Judge Ransom, chief counsel for the
commission. said that he had conferred d
with Deputy Attorney General Alfred
l.. Becker, as well as with the Mayor
and Corporation Counsel, in regard to
the matter and expected the co6pera-
ton of both the state and city author
tiles in resisting any construction of
the Public Service Commission law
which would free the local gas COM
panies from public control as to their
rates.
1t is not expected that the BROOKLYN
company will attempt 10 increase its
rates until the commission has closed
its hearing. Should such an attempt be
made the commission stands ready to
seek an injunction restraining the com
pany from making any "overcharge'
above the present rates