Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-10-11
PASSA|C GAS RATE
ARGUMENT IS ON
State Board of Utilities Hears
Public Services and Two
Cities Counsel.
CORPORATION SAYS PRICE
IT CHARGED, SI.l0, IS FAIR
Compliments Contend That
Good Profit Could Be Made
at IS Cents.

Afs uIIltH IN COuIISti 1nIO tut
reasonableness of the rates charged
by the Public Service Gas Company
in the Passaic district was heard by
the State Board of Public Utilities
Commissioners, in session at the
Court House today.
With the exception of the opening
argument, which was made by I'd
ward @. Mercy, city counsel for Pat
erson, the session was given over ex>
c%lusively to argument by the cor
p~oration's counsel. Tomorrow George
L. Record, counsel for Passaic, will
argue for the improvements,
At the previous hearing counsel for
the corporation suggested that the
municipalities be called upon to fsr-
nish the outline of It's argument. This
was finally agreed by counsel, and
as a result Mr.. Merry opened the ses-
sion this morning with a brief outline
of the points that will be raised by
George l.. Record in his argument OF
the municipalities tomorrow.
Mr.. Mercy in his opening argument
laid particular stress upon that sec
ton of the experts report which set
forth that the Public Service could
furnish gas in the Paterson-Pasaic
district at seventy-five cents per
thousand cubic feet and still make a
reasonable and fair profit. The pres
ent rate is s1.10, with 10 per cent. dis
count if paid within five days after
submission OF bill. The fact thai the
experts agreed on this point, Mr..
Mercy declared. shows co~nclusively
that an overcharge is being made at
the present time. He also made q
point of the franchise held by the cor
poration. This, he said, has no value,
lnasmuch as it is only a general frau
ehise. To be of any particular value,
he declared, ii would have to he
backed by a special franchise.
Quite a notable gathering listened
attnetiVely to the arguments. includ-
ing Mayor Mcbride, of Paterson, and
city officials of both Paterson and
Pasaic. There was also a number OF
men of local prominence at the ses-
SIGN held in the freeholders' room.
Frank Bergen, general counsel for
the Public Service. took up the
ment for the corporation. He laid
particular emphasis on the fact that
in this hearing the burden of proof
rests upon tho compliments. Both the
cities Of Paterson and Passaic have
thought that the present rate charged
in that district is unreasonable. 1t
is up to the cities in question to prove
this assertion. 1t is not the duty of
the company to show that the pres
ent Charge is a reasonable one, he
said, but rather a burden on the COM
plainants to prove its unreasonable
ness.
Mr.. Bergen went into the value of
The properties of his clients at some
length. He declared that the valua-
ton as estimated by consolidation
agreement and subsequent expendi-
lures, Including overhead charges on
subsequent expenditures and includ-
ing '~.idgewood, is $S,21S, 1905 the
same, including overland charges and
Ridgewood, S. $780, 50. 80; value esti-
mated by witnesses. including Ridge
wood. $751; 09, 491: value estimated sby
market value of securities, excluding
Ridgewood, 81, 1886, 994. "a; the same. in
Guiding Ridgewood. $S.177. z7S.60 esti-
ilatth Ny GdpilhiiHih6t hNtiiS
ut > per cent, including Ridgewood,
$40, 648. 1906.
Taking up the question of rates Mr..
Bergen declared that it is a we'll
known fact that in bringing about
q reduction some of the properties of
the corporation We're both to be
taken. in direct violationeof the con
stitution OF the United States. He
on further to show that the
present rate is a reasonable II and
introduced figures of expenditures,
etc, to suhstantiate his arguments.
This was the principal point of the
argument advanced by the corpora
ton. .He said that it was impera-
tive that the franchise and property
values be taken into consideration in
the making of a rate.