Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-12-27
NINETY CENT GAS {
RECOMMENDED BY
/. P. u. Commission
Sweeping Suggestion
In Order to Pub
lie Service.
MUST REDUCE PRICE
FOR PASSAIC DIVISION
State Board Willing to Allow
8 Per Cent. Dividend
Upon Assets.
LFrom stan correspoadeas.1

: II
TRENTON. n. J.. Dec 27-4,e
Public Utility Commission TO-DAY ia
report comprising sixty-hye tvne-
written pages handed down decision
directing the Public Service o.aa
Company after February l. 1a1s to
supply gas to consumers in the PAS
sale division of that company AZ the
rate of ninety cents per thousand
cubic feet. This is reduction from :
rate now charged of sl.1O per fbo,,z
sand cubic feet, with a discount OF ten
cents per thousand cubic feet Tor
prompt payment.
me Passaic division includes the
cities of Paterson and Passaic and 4
number OF surrounding townships and
boroughs. =
The commission also recommends.
although it issues no specific order to
that effect. that the Public Services
Gas Company reduce its price Of eas
throughout all of its other divisions ii
the State to ninety cents per thou
sand cubic feet, where the company
now charges 81. This action with re-
spect to divisions other than Passa7c
is put in the form of a recommended
ton rather than an order. because
there has been no hearing of any
complaint coming from thoas
divisions, and the law only gives the
Public Utility Commission power 10
fix rates after hearing upon notica-H =
Case brought Eighteen Months Ags.
The case decided by the Public
Utility Commission has been before
that body for eighteen months. on
January 8, 1911. Mayor Andrew =.
Mcbride, of Paterson, flied a com
lplsipt with the Public gtility Ceas
mission against rates charged In Pat
erson for gas. electric, water, trolley
and railroad Communication rates.
These complaints were separated. 10
be taken up individually Subse-
quently, in August. 1911. the city Of
Passaie filed a complaint against the
gas rates charged in that city. The
Public Service Gas Company then
| filed a proposition for the Public
Utility Commission to fix a uniform
gas rate from January 1, 1912, of 81
per thousand cubic feet. the rate to
be reduced to ninety-f1ve cents on
January /, 1914, with a further reduc-
ton to ninety cents on january I.
1916.
Reject Public Service Plan
The proposition of the Public Serv-
ice Gas Company was rejected and
then began a series of hearings and
Investigations. Testimony TO the ex-
tent of 2,541 pages. not including ex-
hibits. was taken. The hearing or
testimony began January 3, 1912. and
ended September 13. The case was
then argued before the State board.
and with an array Of counsel that in
cluded Thomas n. McCarter. Frank
Bergen. L. D. H Gilmour and E.
Amber Armstrong, for the Public
Service Gas Company; Frank H
Sommer, for the Public Utility Conn
mission: Thomas F. McCran and Ed
ward F. Mercy, for the city of Pat
erson, and George L. Record, for the
city of Passaic.
The Public Utility Commission IN
the investigation of the subject found
the value of the tangible property OF
the Public Service Gas Company in
the Passaic division to be SO. .725. 600, to
which was added 81. .025, 600 for fran
ohise and cost of organizing and
esta blishing its business. This made
a total value, as found by the board.
of s4,75O, 900, as against figures of
81. sos, ,4s1 as submitted by the com
pany. In determining the value OF
the property the commission made no
allowance for good Will" on the
ground that there Is no such thing as
good will" where a company has no
competition.
Not Guided by Securities.
The Public Utility Commission In
fixing the value of the property of
the Public Service Gas Company in
the Passaic division refused to be
guided by the par value Of securities
originating in the merger of six dif-
ferent gas and electric companies IN
that district. The commission found
that the capitalization resulting from
the consolidation was IN excess OF
real assets.
In fixing the rate of ninety cents
the Public Utility Commission states
that it does not wish to go on record
as favoring any particular rate OF
return on investments in public
utility corporations as applicable in
I'll cases. 1t declares. however, that
(Continued on Second PaRe1
J