Perth Amboy evening news., 1911-06-02
GAS DECISION
SATISFACT0RY
Utilities Commission Gives
Company Exclusive Right.

Atlantic Highlands. June q
Judge John E. Foster, counsel tor
the Atlantic Highlands Gas Com
many. in commenting on the decision
Of the State Board of Public Utilities
! Commissioners, in which it denies
the Atlantic Highlands company the
right to extend its lines to compete
with the Consolidated Gas Company,
of Red Bank, in Shrewsbury town
ship. said in substance, that the de
cision is entirely satisfactory to his
clients as 1t established the COM
pany's rights to the franchise which
the company now holds in Monmouth
county.
The decision is the most import
ant yet announced by the board and
states its policy to be followed in the
future. Approval if the franchise is
refused because 1t is not necessary
for the convenience Of the public and
does not properly conserve the pub
lie interest.
The Consolidated Gas Company of
Red Bank already has a franchise
to serve the territory covered In the
application of the Atlantic company.
The memorandum of the board says
that experience shows that services
afforded by public utilities tend
eventually to be rendered under
conditions of monopoly. The COM
petition is said to be short lived and
the two competitors are Influenced
by the considerations of securing
higher prices by the mutual cancel
lation of their competitor. The
commission holds that the evils of an
ill-judged competitive experiment in
a field unsuited will prove a burden
to the consuming public.
The decision does not dispose of the
important collateral question as to
whether In charging $1.50 per thou
, sand cubic feet for gas the Consoli-
Mated Gas company is exacting an ex-
Mtve and exorbitant rate. This
i6p the board has determined to
take up independently under the addl-
tional power conferred upon 1t by the
new law. 1t has fixed Tuesday, June
IS. as the time for a public hearing to
determine whether the rate is unjust
and unreasonable. AS this Will be the
first case of its kind before the board
its outcome viii be closely watched.
III It's DlbLllOl llil ltllSLhS " Pei
NIT the Atlantic Highlands company
to enter the field as a competitor Of
the Consolidated company the board
reviewed the facts brought out at the
several public hearings. These show
ed that the proceedings which culml-
mated in the passage of the ordinance
granting the new company a franchise
were regular In every respect. The
proposed franchise was s~afeguarded
so as to protect the public interests
and was in full compliance with the
law.
1t further appeared, the board said,
that the Consolidated company is now
laying pipes and appliances for the
ton of Shrewsbury township as the
Atlantic Highlands company desires
to-supply under the franchise granted
it-Nov. IT, 1910. The situation, there
fore. resolved itself. in the Judgment
of the commission, into a question as
to- whether the board should approve
the ordinance as necessary and proper
for the public convenience and as
properly conserving the public inter
est. The question, 1t said, Is one to
be decided In the light Of a concrete
situation where another company has
a franchise and Is exercising or about
to exercise the same for supplying the
same region with essentially the same