Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1909-12-15

and that the generous exercise of it
within the constitutional limits, as laid
down in the Consolidated Gas Company
and Knoxville Water Company case.
may result disastrously to our business
without redress in the courts. Within
the limits above referred to, the legis-
lative discretion will be controlling.
1.-THE Consolidated Gas Company is a
large corporation furnishing gas under
most advantageous circumstances to an
enormous and congested population,
and it may we'll be that it will emerge
from this decision with substantial and
satisfactory profit, but without critics.
ing the legal principles which justify
the decision, [ am of the opinion that
the business principle involved is vital,
and if generally put into effect by legis-
lative sanction would retard and stag
nate the development of the public
service business throughout the coun-
try, and consequently react on the very
prosperity of the country itself. 1t is
beyond my comprehension that any in
weston should put his money into the
stock Of a new and undeVeloped pub
lie service enterprise, bearing with
fortitude it's early years, with its GUS
tomary drought of earnings, only to be
limited by legislative action, when the
property has at last become success
full. to 6 per cent. annually on his then
investment, regardless of the lean years
through which he has passed. Certain
it is that if the necessary funds are
to be obtained from year to year to
properly develop these enterprises and
t1n F1r,.;farrr rrr1tot,E ,1pY,l - 49,.
be upon the confidence of the American
public that these properties will not be
disseminated against by legislative
caprice. Did I not ave enduring faith
in the ultimate common sense of the
American people, and in the resultant
attitude of their law-making repre-
sentatives, l would unhesitatingly rec
ommend allowing one money to re-
main in a savings bank, drawing 4
per cent. interest, rather than in an
investment of the character of which
I have spoken.
ut is true. and properly so, that the
day Of exploitation of this class OF
property is over; that we shall never
again see connected with them gross
abuses of over-capitalization, resulting
in the amassing of large individual for
tunes over night, to the scanda of
the community. 1t is probably true, al
though 1 am not entirely sure of its
wisdom, that we shall never see any
more over-capitalization or water con-
nected with any of our public service
enterprises. To my mind the investor
who has the courage to risk his money
in a new and untried public service
enterprise, which the majority of pru-
lent men would hesitate to embark
upon, but which is manifestly
to the advantage of the public
is entitled to receive a return
upon his investment proportion
ate to the hazard involved, and ]
do not see that it makes so very much
difference whether it is done by the
payment of very moderate dividends
upon a capitalization in reasonable ex-
cess of the actual cost of the property
or by larger dividends upon it's actua
cost. BY way of Illustration, take
the case Of what is commonly knowr
as the McAdoo tunnel system. l an
not familiar with either it's cost o.
construction, nor with its capitalization
but I do know the constructor of thai
system has been one of the creates
boons for the convenience of the public
and especially for the public Twins
within New. Jersey, ever created
in these parts; and | know further
that 1t was a most hazardous under
taking from a financial and engineerin;