Newark evening star and Newark advertiser., 1916-01-27
BEGIN HEARINGS
ONP. S. c. VALUES
TO DECIDE RATES
Utility Board Starts Task of
Determining ReasonabIeness
of Company's Charges.
From a staff Correspondent.

Public Utility Commissioners today
began the first hearing in the pro-
ceedings to determine the value of
the properties of the Public Service
Electric Company for rate-making
purposes. An appraisal of the COM
panv's holdings nas been completed
and the various hearings the board
will hold will be for the purpose of
introducing testimony to enable the
three utility commissioners to agree
upon a valuation of the company's
properties and enable them to de-
termine the reasonableness of rates
now charged
The first witness called today was
d. c. Jackson, of the firm of d. c.
and William b. Jackson. electrical
engineers, of Boston. The Utility
Board contracted with this firm to
inventory and appraise certain prop
critics of the electric company. Frank
Sommer. of Newark, counsel to the
Utility Board, questioned Mr.. jack
son as to his work.
Mr.. Jackson, on the stand, related
10 the commissioners his experience
In Valuing the property of utility
corporations i'll different States for
tho purpose of rate making. This
testimony was read into the record
in order to qualify Mr.. Jackson as a.
competent engineer
He testified that he had made
valuation of the physical properties
of the Public Service Electric Com
pany as of July l. 1915. The corpora
tion is divided into six main divisions,
those of Bergen, Passaic, Hudson,
Essex, Central and Southern. He
placed the valuation upon the aerial
properties in these divisions, and
also fixed a value for the nineteen
generating stations and siXty-three
sub-stations, and also upon the four
teen thousand miles of overhead wires
of the electric company. Mr.. Jack
son said that the company has 900
commercial customers.
McCarter Clashes with Donges.
Counsel for the electric company
did not cross-eXamine Mr.. Jackson,
although the utility board offered
them that privilege.
Thomas n. McCarter, counsel for
the Public Service Electric Company,
entered a protest to the commission
against proceeding in the case at this
time. Mr. MeCarter said that the
company is undertaking to complete
an appraisal of its properties and this
" IL NV ll1 llIllSiibN DtlOIt July /. lie
requested a postponement of the hear
ing until the appraisal made by the
company is ready for submission as
testimony.
Il want to make a protest against
being crowded" Mr.. McCarter said.
THE board does not feel the COM
pany has been crowded." replied Pres
1dent Donges of the Utility Commits
sion.
Il can't help how the Utility Board
may feel about it," Mr.. McCarter an
swered.
And the board cant help how you
may feel about it, President Donges
said
City Counsel Spaulding Frazer, of
Newark, was present at the hearing
and will act as counsel for the League
of New Jersey Municipalities.
Explains Scope of Appraisal.
Explaining the scope of the ap-
praisal undertaken by the board,
President Ralph w. Donges, of Cam
den. said:
THE inventory has involved an
enumeration of the company'S aerial
line property, consisting of overhead
line conductors with their supporting
poles. cross-arms and hardware,
transformers on the poles and arc
ldlHDS OIl lIlt pOltS. Inc bDdIu HAS
been furnished with field records
showing the locations of this prop
erty, and with a report in the form
of a summary of the quantities and
giving an appraisal of the value of
the property. subdivided in accord
ance with municipalities in the State.
AN inventory and appraisal has
been made also of the machinery,
apparatus, instruments, electrical
comprising all of the machinery and
equipment of the company's generat-
ing stations and sub-stations included
in such stations located in it's Essex,
Hudson, Passaic, Bergen, central and
southern divisions, and a report has
been made to the board in the form
of a summary of the inventory items
and an appraisal of the value of the
property, subdivided in accordance
with municipalities in the State. An
appraisal has been made also of the
buildings housing the generating sta
tions and sub-stations.
Real Estate Experts TO Testify.
"Real estate experts have been en-
ployed by the board to appraise the
land on which buildings owned by the
Public Service Electric Company are
located. Testimony of these experts
will be submitted i'm the course of
hearings to be held i'm this investiga-
tion, and the reports of the boards
engineers will be introduced in evil
dence. Copies of the reports will be
available for examination in the Of
fees of the board at the State House
and in the city of Newark and copies
of the testimony taken at the hear
ings may be examined also at the
same places.
'fThe appraisals referred to above
have been completed. In addition to
the above and to make the inventory
and appraisal complete an inventory
and appraisal is being made of the
company's underground conduits.
underground cables. furniture in of
fees, materials and supplies, horses
and vehicles, customers meters and
other equipment on customers prem
ises and general equipment in shops
belonging to the company. The re-
port on this will be subdiYided in ac-
cordance with the municipalities and
will be introduced as testimony later
in the investigation. The board will
not restrict the taking of testimony
as to the value of the company's prop
erty to that submitted by the experts
employed by it. This will give but
one opinion of the values. and it is
the boards duty to hear and consider
other opinions If the same are Of
fered.
Expect Municipal Cooperation.
1.-The company will probably call ex-
perts to testify as to their opinions
of the value of its property. The
board caused notices to be sent to 1863
municipalities served by the Public
Service Electric Company of this
hearing, and has stated that the board
desires and expects the municipali-
ties to cooperate with it. The board
has received in response to this a
number of offers of cooperation and
requests for advice as to how this can