The sun., 1919-06-23
1854 JERSEY TOWNS
FACE GAS INCREASE
Public Service Company Makes
Application to Boost
Price to S1.15.
PRESENT RATE Is 30 CTS.
President Of Company Gives
Reasons for Demanding
More.

Residents OF 1s4 municipalities OF New
Jersey may have to pay a high rate for
gas In July. The Public Service Gas
Company will make application. proba-
bly, tomorrow, before the New Jersey
Public Utility Board to charge a new
gas base rate Of s1.15 per 1000 cubic
feet, according to an announcement
made yesterday in Newark by President
Thomas N. McCarter.
The present rate is ninety cents per
1000 cubic feet with an additional war
surcharge of seven cents which was al
lowed by the utility board In March.
1918. Tho proposed new rate includes
the war surcharge rap.
The 1874 municipalities affected are
spread through twelve of the twenty-one
countiea The company supplies nearly
all of the gas in Essex. Hudson, Bergen
and Passaic counties and partly in
Union. Middlesex, Morris, Somerset,
Mercer. Burlington, Camden and Glor-
cester.
Among the cities affected will be New
ark, the Oranges, Montclair. Jersey City.
Hoboken, Bayonne. Hackensack. Ruther-
ford, Englewood. Paterson, Passaic. Ellie
abeth. Railway, Westneld. Plainfeld.
Morristown, Dover, Madison. Chatham,
Summit. New Brunswick. Perth Amboy.
Trenton, Burlington. Mt. Holly. Bound
Brook. Somerville, Bernardsville ana
Camden
Increases in the cost Of oil. which the
company will now have to pay because
Of the renewal of its oil contract and
al mr. hn n auaa IN, N nf (no1 and
labor are also given as causes for the
advance. -
Mr.. McCarter's announcement Is adj
dressed to patrons of the company and
b as follows:
Public Service Gas Company takes
this means of informing Its patrons that
It is face to face with conditions which
make II necessary for the company to
increase its price for gas.
BIames OIL Cost.
THE expiration of a very favorable
oil contract which must be renewed at a
materially higher price level, together
with other increased costs OF production,
leaves no other course open to the COM
pany.
This oil contract was entered into
Eve years ago, before the European war
was thought possible. when oil was
plentiful and prices at their lowest ebb.
"Oil plays an important part in the
manufacture of gas and the price Of oil
bears directly and to a marked extent
upon the cost Of producing gas.
"were It not that the company was
In an exceptionally favorable position
due to this long term, low priced oil
contract It could not have continued n
long as II has selling gas at the present
rates, even including the moderate wal
surcharge approved last year.
Costs have been going up In the gas
business just as they have in every .othes
business. Prices charged to the gas
consumers by the Public Service das
Company have not been increased ir
anything like the proportion that tht
cost of other commodities has increased
This is in large measure due to the fore
sight of the gas company in entering
into the long term oil contract abov'
referred to, which, because OF It's low
rate a gallon enabled the company Il
make gas cheaper.
while the contract lasted the com
pany's patrons had the full beneft of th'
low oil price. With the contract ex
piring the company has been forced Il
make new terms. The war 10 ended, bu
the era of war prices is still with us.
EVERY kdS company III inc ChhNc hai
found II necessary to increase It's rates
Some of these companies are receiving
s1.65, Sl.S5, and even as high as s2.1'
thousand cubic feet, with an extrs
meter service charge of IS cents or NOR
each month. And the sections of thu
State served by most of these compante!
are entirely comparable with much o
the territory served by Public Servic'
Gas Company, as the latter supplies
customers in 164 municipalities.
Asks Only Just Rate.
"Public Service Gas Company is no
seeking any such rates as those abov'
quoted. reasonable as they may be. Thi
company will base its new schedule o
rates upon what the Board of Publ
Utility Commissioners. after a long ant
thorough investigation in the Pascal
gas case, determined to be Just ant
reasonable rate. plus the actual. prov
distributing gas that has taken plac
since the decision was rendered.
an the Passaic case q 30 cent rat
was fixed 1t was accepted by the com
pany and paid by the consumers.
has been in effect some flve years o
more. To-day It Costs about 25 cent
more a thousand cubic feet to make an,
distribute gas than It did when tn
| 90 cent rate was declared to be pus
and reasonable.
For the last i've months this com
pany has been losing money. 1t ha
been deferring the filing of new rate
in the hope of a favorable change Il
conditions, which hope has not bee
fulfilled. II can wait no longer. T
enable 1t to continue properly servin
| tie patrons and meetinR its lust OhliRa
tons the company is reluctantly force
| TO the decision TO file with the Board o
Public Utility Commissioners n new bias
rate of $1.15 a thousand cubic feet O
gas, effective with July sales the bill
Tor ,uhich will ha sent ON or ahnn