The New York herald., 1922-05-16
Supreme Bench Confirms
Lower Courts Ruling Rate
Is Confiscatory.
SAVE S1O,0OO,OOO PAID IN
Special Masters Fees Criticized
and Cut-Public Shoulders
Heavy Costs.

Special Dispatch to THE New YORK HrRALp.
New York Herald Bureau.
Washington, ID. c., May Is. I
The United States Supreme Court
to-day handed down decisions in the
cases of seven gas companies affili-
ated with the Consolidated Gas Com
pany of New York, in which it was
held that tie 80 cent gas rate is con-
! fiscatory. The decisions confirmed
those handed down by the lower courts
in New York.
The effect of the decisions is that
about s1o,ooo.ooo which had been laid
aside by tie companies pending the
decisions, representing the excess
rates for gas. will be retained by them
and gas consumers in the future will
have to pay the price now being
charged. This represents the differ
ence between the cid rate of so cents
and SIPS and more.
The decisions were In the cases OF
the Nav York and Queens Gas Com
pany, the Central Union Gas Company
| the Northern Union Gas Company, the
New York Mutual Gas Light Company.
the Standard Gas Light Company. the
New Amsterdam Gas Company and the
East River Gas Company of Long ISL
and City.
Cut Special Masters Fees.
The Supreme Court also handed down
a unanimous decision in which 1t re-
duced the compensation allowed to
Abraham S. Gilbert as special master
in the Consolidated Gas Company's
case which was decided on March 6 and
who also took the testimony and rem
| dered the decision in the cases Of the
seven companies mentioned. In the
case of the Consolidated alone Judge
Julius NJ Mayer of the United States
District Court in New York. Who ap-
pointed Mr.. Gilbert special master. al
lowed him sils.oOo for services. which
has been paid by the Consolidated.
In the decision the Supreme Court
reduced that fee to a sum not exceed
ing SOS. $50, and in each Of tho other
seven cases Mr.. Gilbert is allowed a
sum not exceeding one-third OF the
amount heretofore allowed. Altogether
his allowances must not total more
than 1880. Referring to the gas cases,
the decision said:
Concerning the merits little need
be said I'm each cause as contro-
verted questions OF fact we're re-
ferred to a master who took evil
dence and made reports supporting
the gas companies claims, and these
were confirmed by the Court. We
Z are entirely satisfied with the ulti-
mate conclusions and none of the
( points relied upon arc sufficient to
/ Justify general reversals
! In its comment on the masters fees
\ the Court said that if the time de-
voted TO the entire service-2S2 days
be accepted as equivalent to one year
the total allowance is fifteen times the
/ salary OF the trial Judge and eight times
that received by the Justices of this
court"
Public to Pay Heavy Costs.
/ With the decision the rate cases OF
the New York city gas companies es-
tablished two records. The case of the
/ Consolidated Gas Company alone was
/ the bulkiest I'm records ever submitted
TO the Supreme Court and probably the
] most expensive II ~ DeHeNtu NlAl lne
! Consolidated Gas Company's case cost
about 81. 600 oco which included the mas
ter's compensation. the employment Of
| counsel and experts In the manufacture
OF gas and its distribution. or that
100000 probably $4,000 was spent by
/ the Corporation Counsel who had been
retained In the case by the District
Attorney.
Col William Hayward who was re-
taIned by the Public Service Commits
sion. received $4,000 for his services
out OF an appropriation OF $4,000 made
by the Legislature.
The bitterness with which the Cor
poration Counsel and the Attorney-G
! eral contested the case forced the gas
company to enormous and unlocked for
| financial expenditures. Naturally all
these expenses eventually will be met
! by the taxpayers and the gas con-
sumers.