Perth Amboy evening news., 1912-12-27
80 CENT GAS
/ RECOMMENDED
Public Utility Commission
Fixes that Rate for Passaic
in Important Decision.
HITS THE PUBLIC SERVICE
Thorough Investigation in
II hich Valuation of Plant
Is Taken In Consideration.
(From the NEWS Correspondent.)

H
Trenton, Dec. 27.-Declaring the
existing rate of S1.10 per 1000 cubic
feet of gas, with a discount of ten
cents per 1000 cubic feet for
prompt payment, charged by the
Public Service Gas Company in the
"Passaic Division" to be unjust and
unreasonable, the State Board OF
Public Utility Commissioners today
handed down decision fixing the
rate in the division at ninety cents
per thousand cubic feet and reQuir-
ing the company to put such reduc-
ed charge into effect on and after
February /, 1913. -
The decision Is one of the most i'm
portant yet announced by the Public
Utility Commission, involving, as 1t
does, an arbitrary fixing of a rate.
This rate making power was given
the board by the legislature of 1911
after memorable legislative fight,
which extended through three or
four. years, the proposition being
bitterly opposed by the corporations.
The question was one of the leading
features of two or three state politi-
Sdl Cdiii PHDliC ubillty UOdi u
with ample rate making powers hav-
ing been strenuously advocated by
the Progressives. Public opinion so
strongly favored the proposition that
the legislature of 1911 passed the
act, giving the power and it became
q law.
Exhaustive Investigation.
The present decision is rendered
after an exhaustive investigation into
the gas service supplied by the Pub
lie Service Gas Company in the
fassaic Division" Voluminons
testimony was taken, various experts
were examined and valuations were
compiled, including the land occur
pied by the company's buildings, the
buildings used by the company, the
machinery and the mains required
for manufacturing and distributing
gas. The full report OF the board
comprises sixty-five type written
pages and reviews In detail the tes-
timony as to the values estimated
by the experts examined. The evi-
dence was carefully reviewed as we'll
as the numerous exhibits, such as
maps. drawings and original docu-
ments. The board states that It's
decision is based largely ON it's con-
clusions as to the results of the val
uations.
The municipalities included in the
"Passaic Division" and effected by
the order are the cities of Paterson
and Passaic, Acquackanonk Town
ship, Hawthorne Borough, Saddle
River Township, Prospect Park Bor-
ough, Haledon Borough, Garfield
Borough, Lodi Borough, Nutley
Township, Little Falls Township,
Ridgewood Village. Glen Rock Bor-
ough, Wallington Borough and Tot
owa Borough.
Apply to All Divisions.
The board recommends that the
company set the same reduced rate
of ninety cents per thousand cubic
feet throughout all of the other d.
visions OF the state where now 1t is
exacting the rate OF 81 net per thou
sand cubic feet. 1t makes this rec
ommendation as to territory outside
the "Passaic Division because un-
der the statute 1t can only issue an
order fixing rates "after hearing,
upon notice." 1t is also recon-
mended that the schedule for guam
tative discounts be readjusted in ac-
cordance with the newly ordered rate
of ninety cents per thousand cubic
feet.
The State Commission rejected a
proposition made at the outset of the
proceedings, which were initiated by
the commission, by the Public Ser
vice Gas Company and the Public
Service Electric Company, both of
which are subsidiaries OF the Public
Service Corporation. This PROPOSE
tion contemplated in the case of the
gas company the putting into opera
tion uniform flat rate of $1.00
per 1000 cubic feet as OF January
1, 1912, and on January /, 1914, the
rate to be reduced to ninety-fve
cents. and on January 1, 1916, a
further reduction to ninety cents.
1t further contemplated in the case
of the electric company the adop-
ton, as of January 1, 1912, the same
schedule OF discounts from the base
rates as put into effect in New York
by the Edison Company. The prop
sition because it tied up two rates.
with regard to the. two properties,
gas and electric. The state board
says it did not act upon the propo-
sition becaus cit tied up two rates,
one for gas and the other for cleo
tricity, having no relation, and be-
(COntinupd on Dapa 12l