Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-20
LOWER GAS RATE
FOR JERSEY CITY
IS NOT FAVORED
Utilities Board Finds Larger
Consumption Is No Reason
for Reduction.
RECENT DROP TO NINETY
. CENTS PER M SUFFICIENT
Bases Policy on Experts Re-
port, but Offers Consumers a
Chance to Dispute It.
IspeciaI to the Newark star.I

TRENTON, Nov. 20.-That the peo-
pie of Jersey City would Ultimately
be put to a financial disadvantage
should the uniform gas rate of ninety
cents be lowered there, was the policy
of the Board of Public Utility Com
missioners announced today in an
open letter to the city commissioners
of Jersey City.
The larger municipalities Of the
State have objected to the ninety
. cent gas rate. operative where the
Public Service Gas Company fur
nishes gas, on the, ground that a
lower rate should prevail because OF
the much larger consumption.
The Utility Commission after inves-
tigating the reasonr bleness of the
rates charged in the Passaic division
of the Public Service Gas Company
ordered the company to reduce its
price from 81 to 80 cents At the
same time the ninety cent gas rate
was extended throughout the state.
Jersey City i3 the next municipality
to have its rates tested as to their
reasona bleness. The boards letter to
the city commissioners is expected to
have dampening effect upon the
hopes of Jersey City to secure gas
at q rate cheaper than ninety cents
, per thousand feet. The Utility Com
mission, however, recognizes the
right of Jersey City to prosecute an
inquiry through the commission to
test the reasonableness of the pres
enG rates. The commission, however,
thinks the complainant III such an
iaquiry should bear the expense of
the investigation rather than the
commission.
The Utility Commission says that
advices from an independent and
well-qualifled expert that an attempt
to establish an equitable rate, ap-
plicable to the Hudson division con-
eidered Independently of other di-
/ visions, could not be reasonably ex-
pected TO result in lowering the rate
now charged in that division, but
that on he contrary the change In
the principle of charging would lead
logically to increases for the ma
jority of users
Statewide Effect.
The commission also notices the
fact that division of the Statewide
rate would lead to increases in a
number of municipalities, including
Newark, now served at the ninety
cent rate.
Mr.. e. Forstall, of the firm of For
stall e Robson, employed by the
Utility Commission to make an in
Vestigation of the subject, has sub
snitted a report analyzing from the
standpoint of an expert in making
and selling gas the position of the
Public Service Gas Company. He
reaches the conclusion that the base
price cannot equitably be reduced In
the Hudson division, below the ninety
cents now In effect. Mr.. Forstall
concludes that If the board proceeds
on the theory that the uniform rate
should be applied and that the
charges for gas should be based on
the costs of supplying service in the
municipalities served. this would
logically lead to different rates for
different classes of customers In each
community. The result, as he shows.
would be to increase very notably the
rate per M. to customers toking less
than 1000 cubic feet per month. This
would include the large majority of
consumers in Hudson and Essex
counties.
Cont nuing with reference to the
future price in Essex and Hudson
counties, Mr.. Forstall says:
From the study of a close
analysis of the conditions in other
companies 7 am sure that, with the
conditions obtaining in the Essex and
Hudson divisions in 1912, the price
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