Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-03-04
P. s. c. DIVIDENDS
TO Be LIMITED TO
EIGHT PER CENT.
All Profits Over That viii Be
for Improvements and
Rate Lowering.
M'cARTER RETURNS TO
BAR AFTER IL YEARS
Cites U. S. Supreme Court to
Show Gas Franchises
Have Values.

Special to the evening Star.

Special to the Evening Star.
TRENTON, March 4-Thonas N.
McCarter, president of the Public
Service Corporation. appeared as a
lawyer today for the first time In
twelve years.
He came before the Court of Errors
and Appeals to argue for his COM
pany in the ninety-cent gas case. In
cidentally he made an announcement
that will be of interest to stockhold-
ers of his concern and patrons alike
that the Public Service Corporation
will not allow any of its underlying
companies-gas railway or electric
to pay more dividends than per
cent.
Mr. McCarter, who appeared be-
cause neither Richard V. Lindabury
nor Robert H. McCarter could be
present, told the court it was with
reluctance that after twelve years
he was compelled to come to the courl
and don his counse.or's toga~
Referring to the dividends, he said
the electric company is earning an
8 per cent dividend, but that the
railway company is not, and that the
gas company has not been earning
that amount since the rate was or
dered cut to ninety cents.
Hereafter, he said, when any of
these companies earns more than 8
per cent. the excess earnings will be
used first to accumulate reasonable
surplus and then the excess will be
used to reduce rates.
In his argument. Mr.. McCarter as
serted thai the 90-cent gas case is as
important q legal and economic case
as the court has ever considered. al
though he did not want the judges to
over-estimate its importance.
Mr.. McCarter emphasized upon the
court two points: One that the fran
chises Of the company are properly
Of substantial value that cannot be
ignored in rate-niaking case, and
second, that this value was ignored
by the Board of Public Utility Com
missioners and the Supreme Court in
the 90-cent gas decision.
He cited the lase as the decision of
the United States Supreme Court in
Wilcox VS. the Consolidated Gas CON-
highest tribunal In the land had
special franchises Of the company
alone. s.
why should they be worth $7.7Sf,
900 In New York and nothing on ths
other side? (meaning New Jersey.
What we are all searching for is the
true tolution of this problem lie
said. st
Mr.. Mccarter pointed to. the fact
that If the United States Supreme
Court is to be the final arbiter in Ill
cases we should not, he said. cribble
with. its declarations Of law.
The interest displayed by the OPP
losing counee. was again evidenced
v hen Frank Sommer, counsel for the
Board Of Public Utility Commits
S oners, questioned the right of Mr..
McCarter to read to the court a state
ment Of a member of the Board of
Public Ct.'itv Commissioners on the
gas rate decision.
Commissioners Statement Ruled Out.
Chancel or Walker, for the court,
sustained Mr.. Sommer in his objec-
tron. Although Mr.. McCarter had the
statement incorporated in his brief.
lie was not permitted to read it to
the court The statement said:
prior to the fling OF the opinion
n this case by Mr.. Justice Parker q
prominent member of the commission
made publ C address. in which, rely
ing upon the opinion In the Supreme
Court, he proclaimed that not one
penny would be allowed In that or
any other rate investigation by the
commission for the value of special
franchises.
u suppose later on we may antici-
pate a ra lway investigation. 1t is
high time that principal was settled.
The men who are managing and
directing this great enterprise of our
State are not exploiters. They are
men of repute throughout the State.
They are engaged in the lofty work
If developing the resources and popu-
lation Of the State through the
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