Perth Amboy evening news., 1918-07-15

The Gas Rate Decision

The decision of the Public Utility Commission on the application
Of the Perth Amboy Gas Light Company, denying the request of the
company that it be permitted to raise its rates, uphelds the conten-
ton of the EVENING NEWS that the gas company was putting its
money into dividends and surplus instead of charging its plant and
Increasing its facilities 10 as to keep abreast with the growth of the
community which the company serves.
It has been a notorious fact that while Perth Amboy, Wood
bridge and Roosevelt have almost doubled in size within the last
ten r fifteen years, the gas company has done little o r nothing to
meet the increased demands that it knew would be made upon it. 1t
was not until a year IT two ago, after complaint had been made to the
Public Utility Commission by the city and that body had ordered the
gas company to enlarge its plant, that any steps were taken in that
direction
Yet, the facts brought out in the investigation as to the neces-
smy of increasing rates show that from 1912 to 1914 inclusive the
COMPANY paid dividends of ten per cent. a year, while from 1915 to
1917 more than $4,000 was added to the eompanys surplus, al
though the dividends during this latter period were reduced to four
per cent.
Being closely affiliated with the Elizabethtown Gas Company
through the Kean interests, the Perth Amboy company came to de-
pend upon the Elizabeth concern to help out in an emergency. But
bring its own plant up to the requirements of the territory, the ia
vorable terms made with the Elizabeth concern caused the local com
until the present situation has arisen.
increase its rates a short time ago, the utility commission refused per-
mission, giving as one of the reasons that the rate it was selling gas
to Perth Amboy was too low and unfair to Elizabeth consumers.
In the meantime, through the shortsighted policy of the gas
company, local consumers must suffer. During the past few days
enough to suggest a coincidence between the decision of the utility
commission and the sudden deterioration of the gas in this city. The
gas company, however, blames the poor gas of the past few days on
Be that as it may, it is certain that Perth Amboy is not getting
the service that it is entitled to in the way of gas. While the utility
commission has refused permission to increase rates based on the
casoh given ny III SS company, II mas suggested d a 70 gel nc
increase through a valuation of the property used in serving the
public.
that under ordinary conditions, ninety cent gas ought to be very
profitable. The fact that the company was able to pile up a surplus
and still pay a dividend, although reduced, proves that ninety cent
gas is feasible. For a monopoly in a growing territory like this it
ought to pay handsomely provided the company will keep abreast
with the growth of the community so as to take advantage of the
developments. As stockholders cannot expect the same return ON
their money these days that they received in peace times it would
seena+Aat the company ought to be able to get along without any in
crease in rates. at least for the present Perth Amboy certainly OBJ
jects to paying more for such service as it is now receiving and has
been getting for the past two or three years.