Perth Amboy evening news., 1912-10-28
GET CLOSER TO
CORPORATIONS
State to Take Another Step
First of Year.
CFrom the NEWS Correspondent

(From the NEWS CorreSpondeHt.)
Trenton, Oct. 28:-After January
/, 1912, New Jersey will take another
step IN the regulation of public util-
ity corporations. This Will be the
establishment of a uniform system of
accounting and bookkeeping for each
class of the public utility companies.
Public conferences on this question
have already been held with repres-
entatives of the water companies and
gas companies and two other such
conferences are scheduled for next
week. Tomorrow representatives of
the street railway companies will
meet with the Public Utility COM
mission, and Wednesday the confer
enCes will be with representatives OF
the electric light and power COM
panies. Other conferences will be-
held until all classes of public utility
corporations have been given a hear
ing on the proposed new regulation.
The State Board is moving in this
matter under the authority confer
red by Paragraph II ID, of Section
IL of the public utility act of 1911.
This provides hat the State Board
shall have power, after hearing, upon
notice, by order in writing, to re-
quire every public utility to keep it's
books, records and accounts so as
to afford an Independent understand
ing of the conduct of its business,
and to that end to require every such
utility of the same class to adopt a
uniform system of accounting. 1t is
further provided thai such system
shall conform, in so far as in h
Judgment of the board is practicable,
to any system adopted or approved
by the Interstate Commerce Commits
sion of the United States. At such
conference held by the board a ten
tative system of accounting is sub
mitted and these are discussed and
criticised with the view of determ-
lining what notifications are needed,
to suit the conditions generally of all
the companies. After the conferences
shall have been held, the State Board
will give due consideration to the
! whole proposition anC will then pro-
molgate an order to become effective
on January /, putting the new sys-
TENS of accounting in force.
These uniform systems of account
ing will bear an important function
in the future action of the State
Board with reference to complaints
against UNJUST rates, INADEQUATE Sel'-
ice and other alleged Irregularities
of public utility corporations, for
example, the State Boar1 is empow-
cred under the law to appraise the
property of any public utility COM
pany as a step toward determining
the rea~sonableness of any specified
rate for service. The Board is also
required to get from each public
utility company a detailed report OK
its finances and operation, also to re-
quire each company to carry, when
aver in the judgment of the board IL
may reasonably be required, a proper
and ADEQUATE depreciation account
for the protection Of stockholders
hondholders or creditors. The uni
forms Of accounting will enable the
state Commission to regulate these
matters in a much better way tnar
has been possfft41se-~yi ach p9oil,
utility corporation keepYts Us &c
counts according to it's own ideas. each
set Of books. therefore, being differ
ent from those of all other corpor-
ations.