Report submitted at annual meeting

(New York :  [s.n.]  )

Tools


 

Jump to page:

Table of Contents

  1923: Page [No Page Number]  



SUPPLEMENTAL NOTE.

Since the annual meeting was held, the Special Master has
filed his report and opinion in the suit brought by the New York
and Queens Gas Company to enjoin the enforcement of the doUar
rate and the 650 British thermal unit standard. He finds un¬
equivocally that the dollar rate is unconstitutional and is not suffi¬
cient to cover even operating expenses. The opinion deals with
many questions of the utmost importance to the gas and electric
industry and definitely recognizes the right of a gas company to
earn a return upon the full present value of its property. The
Master finds that the Queens Company is entitled to earn a re¬
turn of not less than 8 per cent. The Master recommends that
an injunction should issue against the 650 British thermal unit
requirement until such time (estimated at about nine months) as
the Company can readjust all appliances to the former anti¬
quated standard; and he holds that it would be dangerous to
persons and property for gas companies to supply 650 British
thermal unit gas forthwith, as required by the statute. The
readjustment of appliances will involve a heavy expense both to
consumers and taxpayers; and the highly carbureted gas will not
only be "uneconomical and inefficient", as the Master holds, but
will result in an additional cost to the consumer of more than six
cents per thousand cubic feet over gas of the 537 British thermal
unit standard fixed by the Commission.

The Special Master is of the opinion that the Legislature had
the power to abolish the service charge, though he recognizes that
it does not have the power to prevent the Company from increas¬
ing the general charge to the extent that may be necessary to give
an adequate return to the Company on the value of its property.
  1923: Page [No Page Number]