Newark evening star and Newark advertiser., 1914-12-10

body was divided on the subject. The
opinion is twenty pages in length.
History of the Case.
DR.. Andrew F. Mcbride, former
mayor of Paterson, started the move
ment which reduced the cost of gas.
On January 8, 1911, he filed a petit
tion with the Board of Public Utility
Commissioners protesting against the
alleged high rates for gas, electricity,
water, trolley and railroad transpor-
tation in Paterson and Passaic.
He was asked to separate the pro-
tests and early in August filed pro-
test against the alleged high gas rate
in Passaic county. The commission
started taking testimony on the for
mer mayors petition on January 8,
1912, and finished the following Sen
tember. Then the commission
listened to arguments from the
lawyers representing the gas COM
pany, the Utility Commission, and
the municipalities of Paterson and
Passaic.
After considering the testimony for
three months, the commission, on De-
cember 26, handed down a decision
favoring a substantial reduction In
the gas rate in the Passaic division,
as divided by the gas company, rec
ommending that the same rate be
made applicable throughout the en-
tire StNte.
The gas company took the report
of the commission into consideration,
and on January 7, 1913, announced
that the rate for gas in the Passaic
division, after February l, 1918, would
be ninety cents a thousand feet, with
no discount for cash. The previous
price had been S1.10 thousand, with
discount for prompt payment,
which brought the rate down to 81
a thousand.
At the same time the company ex-
planned that the recommendation OF
duced rate to all parts of the State
would be concurred in and announced
that on May ! the fiat rate of ninety
cents would be effective in every
division.
The commission issued statement
following the company's announce
ment and declared the State would
save $1,000, 900 annually by the conf
pany's decision.
In making the announcement of tho
reduced rates. the gas company re-
served the right to appeal from the
commissions ruling. Accordingly,
early in February, the company
placed the matter before the Supreme
Court. During the September term
of court that same year a decision
was handed down upholding the
findings of the Public Utility Com
mission.
The commission did not recognize
the gas company's franchises as
property and thus did not attach any
value to them. The commission also
ruled that there was no value to the
company's good will" 1t declared
that there could be no good will
where there was no competition. On
these two points, particularly the for
mer, the company based its appeal.
The company also contended that
the commission erred in not allow
ing value to the company as a going
concern or for organization expenses;
In not considering the electric light
ing rate in fixing a gas rate, and In
holding that securities issued in g
merger are not a proper basis fol-
fixing rates.
The company alleged that its prop.
erty was worth $8909, ,491. The com.
MISSIONS figures were $4,750, 900.
/ The company Immediately carried
the matter on further appeal to tht
Court Of Errors and Appeals, whicf
has just made known its findings
This court is the highest in the State
Further appeal must go to the United
States Supreme Court.
Before the commission started Il
take testimony, the company Offered
a compromise. It's proposal was u
establish a fiat rate of 81 per thou
sand on January 1, 1912; 95 cent
per thousand on January 1, 1914. an'
80 cents per thousand on January
1916. Neither the commission or tn
petitioners, however, would Accep
the compromise.
John L. O'Toole. publicity agent o
the Public Service Corporation, sal
today that no statement relative +
yesterdays gas rate decision by tn
Court OF Errors and Appeals woul
be made by officials of the compan
until after the meeting of the boar
of directors next Tuesday.
Frank H. Sommer, counsel for tn
Board of Public Utility Commission
ers, was equally as mum. He hadn'
seen the opinion, he said. He though
1t unlikely that anything in the forr
of a public statement from the boar
would be Forthcoming before tomoT
rows conference Of the utility com
missioners.