Posted on 12/29/2005 5:54:17 PM PST by festus
Atty. General tells station owners to be charitable or be sued
SPRINGFIELD — Illinois Attorney General Lisa Madigan says 18 gas stations across the state either can donate $1,000 to the American Red Cross or risk being sued for price gouging in the wake of Hurricane Katrina.
The options are detailed in letters from Madigan’s office that began arriving at the stations this week.
Officials said gas prices at some stations rose as high as $3.63 a gallon virtually overnight after Katrina hit.
"When we’re in an emergency situation, such as we were, retailers have the obligation not to increase their prices to the general public over what wholesalers are charging them," said Deborah Hagan, chief of the attorney general’s consumer protection division.
But one targeted station owner said his pump price only jumped 46 cents, to $3.25 a gallon, because that was the amount his wholesale costs increased.
"I did nothing wrong," said Richard Schwarz, president of Roberts-based Trimble Oil Co. "I can sleep at night, let’s put it that way."
The letters say station owners have until Jan. 5 to accept the offer to donate or Madigan’s office will consider filing suit. State law allows the attorney general’s office to negotiate before taking consumer fraud cases to court, they say.
Hagan said the office based the approach on a state lawsuit settlement that allowed a gas company that ran prices up to more than $5 a gallon after Sept. 11, 2001, to pay $25,000 to Red Cross.
"We understand in choosing one charity over another, there’s always going to be the fact that we made a choice," Hagan said. "The only reason I think that we did that here is because we had the precedent of doing it and the Red Cross are first responders."
Did they not contribute to the right campaigns I wonder ?
Any relation to Ed Madigan?
um....supply and demand ring a bell? capitalism? How about the definition of "DONATE"? maybe we should try and elect literate people into office for a change.
I believe this is called blackmail. Don't we have laws against this?
No, but she's the daughter of Illinois House Speaker Michael Madigan, who's been the 'Rat leader for many years.
Spitzer fined each station $65,000 (11 of them)
Your theory of contributions is more than likely correct.
Additionally she is running for relection in '06. This sends an important message to businesses. Make sure you have supported Madigan in case she wins.
Another publicity stunt by corrupt prosecutors.
The technical term is extortion under color of law.
The gas stations should do what Mel Gibson's character did in Ransom.
Be funny if one of the owners filed a RICO action against the state and the Red Cross.
The proper word is extortion. Lisa must be channeling Al Capone and his protection rackets.
I need a money for a new house. If 20 gas stations
don't make a charitable donation to me of $20,000
I'm going to sue them! Damn those money-grubbing
gas stations!
And she gets headlines for "helping" the little people. It still doesn't put the gouged amount back into the pockets of the people that she thinks paid too much.
Welcome to Illinois politics.
When I much younger, I got married and moved out of the city to a northwest suburb. I thought I left that all behind, but within a month of me moving in, two local village council members were indicted for various things. There's corruption in the small places as well, it just shows up more in Chicago.
"When we’re in an emergency situation, such as we were, retailers have the obligation not to increase their prices to the general public over what wholesalers are charging them," said Deborah Hagan, chief of the attorney general’s consumer protection division.
or should it be:
"When we’re in an emergency situation, such as we were, GOVERNMENTS have the obligation not to increase their TAXES ,"
No - says the voice of sunny optimism - it's not just you.
Indeed.
The other way you can read that quote is "only wholesalers can gouge".
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