Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-07-01


There is a statute which pre-
vents the sale of bonds at a less
price than so per centum of their
par. but 1t in no way prevents the
capitalization of futures OF of COM
binations in the same line of busi-
ness. The law should be clear and
stringent against any attempt at
the merger of public utility COM
panies, or the Issuance of bonds or
stock by such companies, except
upon the approval of some State
board.
THE burdens which the people of
the State now bear LIE the outcome
of consultations and mergers
which have frightfully over-capi-
talized these public utility enter
prises, and which make it essential,
In order to meet their fixed charges
and pay even small dividends on
their stock, that much higher prices
be charged Tor gas and electric
light than a fair, or even liberal,
capitalization would have required.
The people should not be compelled
to suffer for this.
Pub~iic-Serving Corporations.
"If the public-serving corpora
tons of the counties of Essex,
Hudson and Passaic, and other
parts of the State, had not been
over-capitalized, in excess of any
reasonable theory of the outlay nee
essary to construct them, it would
have been possible, ven allowing
for a large profit to the stockhold-
ers, to have long ago had eighty
cent gas and a great reduction in
the cost of electricity. Every dollar
of exploitation, In the way Of ex-
cessive bond or stock issues. is SIM
ply adding to the burden Of the
people who use the street cars, the
electric light and the gas. The
same thing is equally true of the
telephone service and the charges
for express matter. Each of these
public-serying companies now con-
ducts. these public matters in its
own way, and in its own time and
under II rate it chooses; and the
people are helpless. The consumer
has no place to go for relief against
any ~exactions, inequalities or neg
lect, and a long-suffering public
must submit and allow all this to
continue unless a commission, with
ample power to protect and relieve
the people, IS created.
1T would seem that a law so adj
vantageous to the people would be
easy of enactment; yet it is discour-
aging to undertake to accomplish
anything in this direction. The
whole power of these corporations,
their officials and lobbyists, are ar
rayed against the proposed legisla-
ton, anG the use of their money,
gotten from the people, is felt in
the elections, if not in other direc-
tions, and, up to this time, it would
seem to have been potential.
Touches Every Household.
This question touches every
householder and tenant in the State.
1t affects every home. Ii IS a vital
issue and will not down. The fall
ure to enact this legislation during
the past two years has been a
fragrant violation of a most honor
able and specific political pledge.
1.-THE Republican party in the
State platform, on which the pres
ent Governor was elected, declared,
we pledge ourselves to enact a law
providing for a commission with
ample jurisdiction and powers to
enable. 1t to regulate public utility
corporations effectively and authori-
tatively.' There is no ambiguity in
this language.
THE platform of the Democratic
party was equally clear.
There is absolutely no excuse for
not keeping this pledge, except that
the corporations to be regulated
oppose it. At the last session of
the Legislature their lobbyists were
about the State House. In a most
and ~audacious
they entered the Assembly chamber
and tried tosdefeat any public utili-
ties bill. They opposed even the
reasonable and fair act known as
the Pierce BILL then pending in
the House of Assembly.
1T is often stated that no one Is
coming to the Legislature demand
Ing the passage of a public utilities
bill. Why should they come? Did
the party, which now has a
working majority in the Legislature,
promise the people to enact such a
When a platform promise is
do we expect the people, after
they have elected us upon it, to keep
coming to the executive and the
and demanding that we
keep 1t? Such a suggestion is a re-
Fiction upon our honesty, not only
as representatives, but as men. No
pretext can disguise 1t: no subter-
fuge evade it. There have been two
years within which to fulfill this
promise. We shall stand s~elf-con-
of a breach of faith with the
If we fail to keep it in this the
third year.
Whatever bill is enacted should
provide for the consolidation of the
present railroad commission with
the new commission created by it.
and thus the question of expense
has been raised (not by the
people, but By the interested ones)
would not avail as an objection.