The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1909-01-26
MORE LIGHT ON
ELECTRIC co.
IooNrINUED prom FIRsr PAeE.l

to repair it was the only thing which
we could attempt /; and full examina-
tion of the conditions of the circuits.
transformers, ETC., demonstrated that
the repairs necessary in order that the
whole town could be properly served,
would call for a much larger sum Of
money than was at our disposal.
We nevertheless attacked the prob
lem with all the resources at our COM
mand, and have now succeeded in rem
edying a number of defects: but in so
doing have incurred heavy indebted
ness, which have only within the last
few days been temporarily financed.
We shall continue on the same lines
until we have completed the task, and
to that affect shall use every financial
resource within our power: but in
view of the lack of general popular
support, of which we have spoken, the
entire work cannot be completed for
some time and not until it is completed
will MOrriStown have the satisfactory
private lighting service which it is en-
titled to, and which it is our ambition
to give.
But when the existing service is
compared with that which existed be-
fore we came into the ffeld-and especi-
ally when it is compared with that
which would have existed had it not
been for our coming into the field, we
believe that it will be apparent TO all
fair-minded men that we are entitled
not to captiouS criticism, but to the
thanks of the citizens for what we
have up to the present time succeeded
in doing under most adverse condi-
lions, and to their cooperation in the
work remaining to be done.
v. AS to the necessity for raise In
rates.
The rates the Public Service corpor-
alton charged for several years back
are as follows From January LIST,
1902, to January 1st, 1907, l24 cents to
stores and Is centS-1S cents to resi-
dences. From January 1st, 1907, to
January 1st, 1908, 10 cents to stores
and IL cents to residences. After jan
uary 1st, 1908, to August 1st, 1908, 10
cents fiat rate to all. We call particu-
lar attention to these facts so that the
ciUizens may not forget that the low
rates in force during 1908 have been of
but recent origin. Our current rates
are 10 cents and downwards for light
ing, and 7 cents and dOwnwards for
power. f
Our experience during 1908 while
operating both the Public Service
plant and our own has made it abso-
lutely certain that this company can
not continue to do business ia Morris
town and charge ten cent rate.
An increase is absolutely unavoida-
BILE for three reasons:
/. In the first place unless we lay aside
a depreciation fund amounting to at
least $4,000, per annum, the citizens
of Morristown will in few years be
compelled to undergo similar exper-
fence with the new plant to that
which they underwent in connection
with the Public Service plant. An
electric lighting plant must be con-
stantly renewed both as TO it's central
station and as to it's circuits in order
that adequate service may be main
tained. The policy that. the Public
Service Corporation pursued in Nor
ristown, of laying aside no deprecia-
ton fund and of simply leading hand
to mouth existence, possesses no ad-
vantages either for this Company or
for the citizens of Morristown.
2. In the second place the constant
ly increasing demand for electricity
in M0rriStoWn will make it necessary
to add from time to time additional
units to the plant, additional circuits
to the out of doors installation, and
all of the other apparatus such as new
transformers, meters, etc. Funds for
this purpose must be provided and
certainly will not be forthcoming un-
less reasonable basis of earning pow
er is demonstrated by the company.
3. In the third place, those who
have SO far subscribed to our stock,
and those to whom we hope to sell
stock in the future, must be assured
not merely from estimate but from ex-
perience, of a fair return Of their in
vestment. Our experience has shown
us that public spirit will not alone
suffice in Morristown as basis on
which to finance an electric light COM
pany. Dividends are, in addition, re-
quired. k@ts
Under present conditions this COM
pany can neither lay aside an adequate
depreciation fund, buy new machin-
cry, nor pay dividends. In order to be
able to do any of these things it must
secure an additional net income. This
can only be accomplished by increas-
ing the rates now charged.
From the foregoing it will, we think.
be clearly seen that the two alterna-
tives which exist are, in the first
place, a repetition OF the former disaS-
trous experience, or in the second
place, a larger income for the company.
AS between these two alternatives it
seems to us clear that the interests
not only of the company but of the
citizens imperatively require the adOp-
tion of the second.
vi. AS TO the reasons for a service
charge instead of a direct increase In
raIes.
We have been subjected of late to
special cri0iciSm based upon the meth
cd OF raising rates which we have
adopted. A portion of this criticism
we believe to be not unfair for we see
that the explanations which have,
hitherto been given to consumers have
not been sufficiently ample or clear to
enable them TO understand the pre-
else operation of the service charge,
or the reasons for adopting this meth.
odof raising revenue.
AS to these reasons, we desire to say
that they may be summarized in the
statement that we believe it is fairer
to the citizens of MOrristown TO adopt
a service charge than TO make such a
general increase in rates as would give
the company the income which it
needs.
Conditions in Morristown are such
that the methods of charging that are
proper in some other localities would
not be fair in Morristown since large
part of the population of Morristown,
is of transient nature and since a