The New York herald., 1921-03-01
CONSOLIDATED GAS
IS RAISED TO $3.50
BYORDEROFCOURT
U. S. Judges Learned Hand,
Ward and Mayer Also
Enjoin State Officers.
CHANGE BEGINS TO-DAY
Excess Over Old Rate of 80
Cents Is Impounded,
Pending Appeal.
LEGISLATURE COULD ACT
Company Promises Reduction
if Gas Oil and Coal Drop In
Cost In Future.
LEGISLATURE COULD ACT


haitian and The Bronx will be in
creased to $3.50 per 1000 cubic feet
beginning to-day. according to an an
nouncement made by officers OF the
Consolidated Gas Company last night.
The money collected by the company
in excess OF 80 cents per 1000 cubic
feet will remain impounded by the
court, however. 80 that It can be re-
paid if the present Judgment. which
was handed down yesterday In favor
Of the company, Is not affirmed by the
United States Supreme Court on the
pending appeal.
Permission to increase the rates was
granted to the company when Judge
Learned Hand. with the concurrence
OF Judges Ward and Mayer. filed an
opinion in the United States District
Court. The opinion denied the motion
made by the defendants that after
March matters be allowed to con-
tinue as at present until the question
of the constitutionality Of the State
Gas law has been finally passed upon
by the Supreme Court OF the United
States. The defendants are Charles D.
Newton. State Attorney General; !;
Lewis Nixon. Public Service Commits
sioner, and Edward Swami. District
Attorney.
The court, however. continued the in
junction OF last August, enjoining the
official defendants from interfering with
tho gas company from collecting sl.2o
from its consumers and until the new
Public Service Commission IS vested
nth jurisdiction the duty rests upon
the company OF fixing reasonable rate
now and of changing It as conditions
permit.
Provision Made for Refunds.
The third important point IN Judge
Hands decision is that when a new rate
Is finally fixed by the Legislature or the
new Public Service Commission any diff
ference between the rate actually
charged by the company and the rate
which II is finally determined the COM
pany should have charged during the
period will be ordered repaid to all con-
sumers by the court
In continuing the injunction the court
extended the period for irnpounding OF
the money until three months after the
appeal is decided, unless the Public Ser
vice Commission has put in force new
rate. temporary or finai
In discussing the excess money fund
Judge Hand said
las I conceive II, the court is free by
any means 1t can within the limits of
equity procedure to distribute the fund
in the closest practicable conformity
with the action OF the State authorities
when made The court has such latitude
as may be necessary to accomplish that
result
Some way should be found. / think.
10 prevent the plaintiff from enjoying a
long period during which 1t may charge
any rate II chooses. Certainly that is
contrary to the long standing policy OF
the State
Insists Cost Exceeds s1.20.
In reply 10 the defendants argument
that the present gas rate be continued,
which was presented in court Saturday.
the gas company insisted that the costs
or manufacture and distribution have
greatly increased Ia seven months and
that II any limit was 10 be fixed IL must
5c In excess OF sI.20.
statement issued by the company
last night follows
The rate at present fixed by the COM
pany will be $3.50. This rate viii be
decreased when and az the operating
costs decline The company frankly does
not expect to decrease the rates Of pay OF
rs employees. II and as the cost OF gas
oil. generator coal and gas coal comes
Gown. decrease In this rate will be
promptly made.
THE company believes that a rate OF
si25 per 1000 cubic feet. plus service
or consumer charge OF sixty cents per
month per meter, would be preferable
fa,-y,, ~ rata