New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-11
Court T. orlbiids
ST.. 40 Gas Rate
For Brooklyn
Charge Called Exorbitant
and Right of p. S. C. to
Fix Price Is Denied i'm
= Justice Scudder's Ruling
Action by City Urged
Company's Failure to Reply
Is Taken as Admission
of Excess i1p Schedules

The Brooklyn Borough Gas Company
was enjoined from charging $1.4o per
1000 cubic feet for gas in a decision
rendered by Justice Scudder in the
brooklyn Supreme Court late yester-
day afternoon. He held this rate exor-
bltant and insisted the Public Service
Commission had no right to fix rate
higher than the statutory maximum.
In dealing with the application for
an injunction made by Gerald Morrell,
of 2011 East Thirteenth Street, Brook
lyn, Justice Scudder restrained the gas
company from making the charge of
$l.40 against Morrell, or it's customers
in the Thirty-hrst Ward, Brooklyn, en-
bracing Flatlands and Coney Island.
The company also was restrained from
entering Morrell's home to adjust the
meter as means of enabling it to COL
lect the difference between the previous
rate of S1.15 and the increased rate
which the company attempted to assess.
p. 8. C. Ruling Assailed
In his decision Justice Scudder held
that the Public Service Commission
had no authority to fix either the
S1.15 or the $1.40 rate, despite the
fact that the S0-cent gas dispute has
been discharged by the higher courts
on the ground that the law was con-
fiscatory and unconstitutional.
At the same time he granted per-
mission to the City of New York to
intervene as a party plaintiff and sug-
gested that the city bring action as
trustee to have the gas rate fixed. He
held that the courts have the right to
fix the rate.
THE rate the defendant is intending
to enforce" said the justice, in his
written opinion, "is not supported by
statutes or Judgment of any court. The
ogler of the Public Service Commits
sion was void. The rate has not in
any way been allowed by law, and
there is no presumption that it has
been reasonable.
IF gas corporation may maintain
suit to establish a higher rate, where
the statutory rate is confiscatory,
there seems to be no good reason why
consumers Of gas may not do the same
to establish a lower rate, where the
rate of the gas corporation is excessive
Sufficient facts are alleged in the COM
'tothI ~ tutlIle the plalntlIl TO eQul-
table relief by way of injunction"
Price Fixing Reviewed
The justice cited that on July 2, 1920
the Public Service Commission for the
LIST District made an order that the
maximum price to be charged by the
Brooklyn Borough Gas Company should
be as follows:
On and after July 2, 1920, to and in.
GLIDING July 81, 1920, s1.15 thousand
cubic feet of gas; on and after August
|, 1920, to and including July 81, 1921
s1.40 thousand cubic feet.
ut is my conclusion," said the JUS
tice, chat the Public Service Comm is
sion had no power to make the order
fixing rate for the defendant in ex-
cess Of The statutory maximum, al
though the statutory rate was ad-
judged confiscatory and void"
The gas company failed to file an an
swer to Morrell's petition, merely de-
murring to the complaint, and Justice
Scudder advanced the opinion that in
the company's failure to answer it ad-
mitted that it was attempting to exact
From the plaintiff and other consumers
an excessive charge for it's gas,