Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-20

y sk least 90 per cent Of the con-
surners should be over ninety cents
per thousand cubic feet
The Utility COMMISSIONS letter 70
the Jersey City Commission, which
undoubtedly will have an important
sffect on Newark, says:
UtiIity Boards Letter.
To the Honorable Board of City Com
nlissioners, of Jersey City, New
Jersey.
Gentlemen am instructed by the
Board Of Public Utility Commission
eys to inform you that on August rs,
1911, this board was notified by the
mayor OF Jersey City that Jersey CITY
entered complaint, charging unrea-
sonahIeness and injustice in tie rates
there charged by the Public Service
Gas Company for gas, and inquired
when the matter might be expected TO
come on for hearing. The price at
hat time was one dollar per thou
sand cubic feet.
Answer was returned that this
board on its own initiative had COM
inenced an inquiry into the reasona-
bieness and justice of rates for gas
charged by the Public Service Gas
company; that the so-called Passaic
division OF said company had been
selected for tie first detailed investi-
ration; that the investigation ss-
volved comprehensive inventory and
valuation of the gas property In that
division, and that upon completion of
tfis investigation the board proposed
10 take up next in order a similar In
Vestigat!on of the gas property In
Hudson county.
AS the outcome of the inquiry into
he reaeonableness and justice Of the
zee %rv-. In hA ,lixiefnr1
this board made an order reducing
the base rate in said division from
one dollar to ninety cents per thou
sand cubic feet. Incorporated in the
same order was a recommendation
TO the Public Service Gas Company
to establish the same rate OF ninety
cents per thousand cubic feet In all
of the other divisions OF the State.
This recommendation of the board
WIS complied with by the company
and since May OF the present year
the base rate for gas throughout the
State IN the entire territory served by
the Public Service Gas Company has
been ninety cents flat. AS O. result
the reduction of gross revenue to the
company and in the aggregate cost
10 consumers Is estimated at between
100000 and $l,0o0Oo0 year.
Unique Problem.
Tire adoption by the company of the
boards recommendations materially
changed the general situation. The
rate for gas WAS reduced, not only
in the Passaic division, by reason of
the boards order but throughout the
State. including, of course, Jersey
City. The company indicated Its in
tention of maintaining Statewide
rate throughout all the divisions
served nv ii Differences I'm the cost
of manufacture In different divisions
indicated, however, that there might
be equitable ground for setting differ
ent rates In different sections. Ac-
cordingly tho board sent to all the
municipalities served by tie Public
Service Gas Company, 132 In number,
notices of q hearing to be held on
March II. 1913, on the advlsability OF
maintaining q Statewide rate.
This hearing was attended by rep
resentat.ves of many of the munich
palities and of the Public Service Gas
Company. The proposition discussed
was not that any particular price,
such as the current price of ninety
cents per thousand, should prevail
throughout the territory served by
the company. but concerned the pro-
priety of Il uniform price as against
varying prices for different localities,
proportoned to tie respective costs
in the various localities served. De-
cided differences of opinion on this
question were shown to exist among
the representatives of the municipali-
ties. These seemed To be governed by
the ideas of the representatives as to
the effect of the uniform rate as com |
pared with system of varying rates
in the several gas divisions, as the