Perth Amboy evening news., 1918-03-26
Public Utility Commission Has
Hearing on Application for
7-cent. Fare Today.
AMBoY is REPRESENTED
Attorneys for municipalities IS
sue Statement as to Their
Aims in the Fight.
By Special Correspondent.

~ SpecfdJ correspondent
TRENTON, March 26-That Lthe
proposed seven cent and other fare
increases. announced by the Public
Service Corporation will not be put
into effect by the company until af-
ter the utility board has reached a
conclusion upon their reasonableness
was the understanding reached here
this morning by the interested parties
at the resumption of the hearing be-
fore the board upon the companys
increases.
Corporation Counsel Jerone T.
Congeiton, of Newark, and George L.
Record for the city Of Passaic. today
filed with the utility commission OBJ
jections to the proposed increases on
the ground that the Public Service by
ordinances has certain contractural
relations with these two municipali-
ties to charge no more than five
cents.
Former Judge Francis Scott for the
city Of Paterson, announced that he
would file similar objections and was
MarnhaiI Van Winckls, oounsel OF
fA9 NtW Jersey LeaSua of Municipali-
tlNG t,qk NJ with the utility commits
6loH t2te 4n4gtlon Of the Public Ser
vice submitting all 1ts records and ac-
counts. He served notice that the op-
ponents Of the increases would insist
upon seeing the company's books and
other data bearing on the fare ques-
ton. and II they were not forthcoming
would ask for subpoenas to have them
produced.
Frank Bergen, of counsel for the
company. said 1t would be willing to
produce any information bearing on
the issue, including city ordinances.
Following this Thomas N. McCar-
ter, president Of the Public Service
took the stand AS the first witness,
son of his connection with various
national organizations of public utili-
ties he was In a position to tell of
the situation generally throughout
the country. He then proceeded to
quote figures showing Investment,
bonded debt. and gross earnings of a
group of selected companies and
showed that in spite of increased
gross earnings Of forty-two millions
the country, operating expenses for
the same period were greater than
the increased gross earnings. Evil
IDENTIFY Mr.. McCarter had included div
tdends at eight per cent in the oper-
ating expenses because he said that
the deficit would have then further
increased. has an eight per cent divi-
dend been included on new capital
invested in the companies during the
past few years.
The president of the Public Service
Corporation laid great stress on the
close connection that public utilities
have to the carrying on Of the war.
He read at length from statement
Of John Shelton Williams, comptrol-
Ter of the United States treasury,
which states that many public util-
to- 10
and that In view OF increased operat-
Ing costs it was often necessary to
grant increased revenues in order to
maintain the companies in q state of
eolvency. A letter from Secretary of
the Treasury McAdoo to President
Wilson. in which Mr.. McAdoo stated
That added war burdens often neces-
eitated increased revenue, was read
" Mr.. McCarter. The reply of the
Adoo's thoughts.
The great length at which Mr.. Nc
Garter dwelt on the close connection
OF public utilities to war work and
the increased cost of materials indi-
Gated that this would be the main
basis on which the Public Service
would rest. In order to support its
claim for increased gates.
by Van Wihlkle and Record,
The following statement was issued
today by Marshall Van Wrinkle and
George l.. Record, OF counsel with the /
Associated Municipalities in this mat
ter:
'Since the adjournment of this case
on March IL we have been busy with |
the preliminary preparation of the
side Of the case. Wei
have engaged Delos F. Wilcox, of New
York. as expert in chief, to have charge
Of the preparation OF the proofs to be
submitted on behalf of the municipal
tiles. He will undertake under our
direction to ascertain from the books
Of the company information which we
deem necessary for the presentation Of
the municipalities side of the case
That information will. in general terms,
be aimed to sustain our contentionI
that the capitalization Of the company
Is far IN excess Of any money actually
Invested in constructing the companysi
plant, and that therefore the five cent
CONTINUED on page ~
I p. A. Hardware for good paint.
17920-3-25-3ts