Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-02-16

cash. He went on to say that New
Jersey has not In twenty years fur
nished securities in which a bank can
invest and feel sure that they can be
easily turned into cash. TO get such
securities the banks have to invest in
the securities of companies located in
Illinois, New York and other States.
One reason why IT is so, for at least
part of the time. he added, is the limit
ed franchise act. Capital is afraid of
utility securities under such limitations
and will not invest in them.
Mr.. Corbin criticised the limited fran
chise act further, saying hat 1t usually
takes such a company twelve or fifteen
years 70 begin earning profits and at
the end Of twenty years IL loses its
property. The speaker also discussed
briefly the impossibility of scientifically
fixing physical values because of the
changes In equipment and roadbed and
the varying prices for materials which
enter into every railroad and utility
plant.
Insurance Companies object.
Morrison C. Colyer objected on be-
half of the Firemen's Insurance Com
pany of Newark, whose 200 stockhold-
ers. as a company, has 1884, lao invested
in stocks and 81, 900, 900 in bonds of
utility companies.
Edward D. Duffield spoke for the
Prudential Insurance Company. He
said the company was trustee for
1900, 900, poIicy-holders and had
$125, 900, 900 of its funds invested In
the securities of railroad. water, gas
and other utility companies. This
mone was invested under assurances
given by State Law and he urged the
committee no to take action which
would jeopardize or affect the earning
power Of the company's investments.
Vice-President William S. Jenney, Of
the Lackawanna Railroad. said the
railroads were being efficiently ouer-
ated In New Jersey and It would be 8
mistake to hamper them with restrict
i've conditions.
Senator Silzer replied that the COM
mittee would be glad to hear in detail
the objections of the railroads. Chair
man Bradley suggested that any
amendments. which might be offered
would be given consideration.
Following a discussion as to the form
of amendments MIR. McCarter offered
IS a suggestion an amendment to the
law of last year covering rate regu-
lations. The amendment reads as fol-
lows:
Upon complaint In writing fled with
the said board by the governing body
OF any municipality, the people of
which are affected by any rate, fare
or charge imposed by any public utility
as herein defined, for service wholly
within this State, or upon formal appli-
cation Of any such public utility, to
direct any such public utility to make
such change or changes An said rate,
fare OF charge as may be just and
reasonable, and in determining what is
Just and reasonable, said board shall
consider the fair value Of the property
devoted to the public use, physical and
otherwise. and all the financial, phyBi-
cal and economic circumstances of the
business"
II. A. Taylor, OF the Erie Railroad;
William D. Edwards, for the Raritan
River Railroad and a number of small
companies, and John l.. Sway2e. for
the Bell telephone system, objected to
a commission which would manage OF
direct the details Of a business.
Senator Gaunt spoke for his bill. en-
ate No. 8. which would give to the
present commission the right to regu-
late rates and to fix standards of serv-
ice.
Frank Bergen, general counsel OF the
Public Service Corporation. referred to
a previous appearance on the same
kind of legislation three years age. In
five years, he declared, not a company
has been started in New Jersey which
would come under the Public Utilitlei
Commission.