Perth Amboy evening news., 1918-07-12
PLANT HAS BEEN
INADEQUATE To
MEET DEMANDS
Says Concern Has Been Run
Economically But Method of
Finance Is Criticized.
FIGURES ARE QUOTED
No Warrant for Emergency
Relief Is Found In the
Application.

The application OF the Perth AM
boy Gas Light Company to increase
its rates has been denied. City Attor-
ney Leo Goldberger today received a
copy of the decision handed down by
the Board of Public Utility Commits
sioners. The company asked permis-
sion to increase its rates ten cents per
1000 cubic feet. The decision de-
clares that although the company has
been economically managed Its meth
cd of finance is subject TO some Just
criticism and the plant has been In
adequate to meet the requirements for
several years and Its service is admit
tedly not what It should be. The In
creased cost of which the gas company
complains are not disputed in the de.
cision. The dismissing of the Perth
Amboy Gas Light Company's petition
will mean that ninety cent gas VIII
continue here. The application was
for an increase of ten cents, making
the net rate 81 per thousand cubic
feet.
The application of the gas company
for permission to increase its rates
was made early in the spring. Judge
G.. @. Hommann represented the gas
compang In the case; Leo Goldbergor
the city of Perth Amboy. and J. H.
Thayer Martin tie townEH'p of Wood
bridge.
The decision follows:
Application Is made by the Perth
Amboy Gas Light Company TO In
crease the price of gas ten cents per
tion was amended making the same Q
war emergency measure" The need
is based on the present increased cost
to the company for labor, materials
and supplies
This company was Incorporated
under special act of the legislature
March 8. 1861, to supply Perth AM
boy and vicinity with gas.
It has been economically managed
but its method of finance is subject
to some just criticism. Also the COM
pany's plant has been inadequate to
meet requirements for several years
and its service Is admittedly not what
It should be.
The increased costs of which the
company complains are not disputed.
However, whether the application be
treated as an emergency or perma-
nent rate increase, no relief could be
granted in the present proceedings.
On April 1, 1918, the financial con-
dition OF the company was:
Capital ................ $150, 100000
Surplus .............. 126,ob2.SS
UndiVldeu pronts s.'.''. 1'oiS.VV
$277,981.SS
In 1912, 1918 and 1914 the COM
pany paid dividends OF 10 per cent.
In 1915, 1916 and 1917, per cent,
and 1t earned considerably more.
Some of the earnings after payment
of dividends went to the surplus and
= part to pay for capital expenditures.
A little more than 100000 was added
to the company's surplus in both the
years 1916 and 1917.
+ The financial affairs of the COM
pany do not warrant the granting OF
emergency relief. The company,
however, Is entitled TO have Just and
reasonable permanent rates fixed by
this board. The petitioner is entitled
10 Just and reasonable rates. Such
rates must be predicated, not on the
capital and surplus of the company.
but on the value of the utility's prop
erty used and useful in serving the
public requirements.
For the ascertaining of the value
of its property O complete inventory
and appraisal is necessary and this
has not been furnished.
The petition Is therefore dismissed.