The Penn's Grove record., 1919-01-24
UTILITY BOARD
EXPLAINS RATES
Declares Municipal Franchise;
Afforded No Protection Against
Exorbitant Charges.
COULD HAVE MULTIPLIED.
Companies Serving Numerous Towns
Had Power to Clap on Burden-Mioht
Be Double Fares-Must Improve the
service-CouId impose Burdens.

Trenton.-An effort is made by the
State Public Utility Commission, in its
annual report for 1918, to Justify the
fixing of rates independent Of the
terms of contracts between utility COM
panies and the municipalities in which
they operate. The board holds In its
discussion of this question that 1t is
not a novel one in this or any other
state. 1t says that the policy was de-
clared in a decision filed as early as
March "a, 1914, upon the rates of
the Wildwood Waterworks Company,
which decision was 'ater upheld by the
Supreme Court. 1t has been during
the past year, however, that he prin-
ciple enunciated in the Wildwood case
has led to considerable discussion and,
the board feels, misunderstanding. In
its discussion of this principle the
board says: Most of the franchises
granted to the public utilities now OPP
Grating In New Jersey were by munich
pal ordinances passed many years ago.
These grants, except in rare cases,
were perpetual. Each municipality
made It's own terms, driving the best
bargain 1t could without regard to its
~neighbOrs.
when street railway, gas and cleo
iris companies were given the right to
use the streets and highways Of a mu-
nicipality no one thought a future de
velopment would extend the activities
of the utilities until many different mu-
inequalities would be served from one
central station and one gas plant and
that through these municipalities and
across their borders one street railway
would operate.
Might Se Double Fares.
at has been necessary in a number
Of instances to Increase as an emer-
gency measure fares of the street rail-
ways beyond the 5 cent limit fixed in
municipal grants. If the terms OF
these grants had been strictly adhered
to and the companies, while limited in
some direction, had taken the full ad-
vantage of all the conditions favorable
to them In the grants it is believed that
In many cases there would have been
much more dissatisfaction thar has re-
suited from the uniform emergency ia
creases allowed. Frequently the mu-
nicipal boundary line Is not the limit
of a fare zone. The franchise rate
charged in each of two adjoining mu-
inequalities would result in a double
fare, where a single fare would be far
more equitable and less disturbing to
traffic conditions.
THE economies which have been eff.
fected In the manufacture and distri-
button of gas and the generation and
distribution of electricity have been
such as to make the rates specified in
many Of the municipal grants much
higher than would be regarded as rea-
sonable under normal conditions and
In excess of the rates allowed as emer-
gency increases TO meet the abnormal
expenses caused by the war. The
larger utilities, in order that the num-
Der of their Gu toners might be in
creased or to preserve uniform rates
throughout territories served by them,
voluntarily fixed rates much lower
than those specified in the franchises
of many of the municipalities in which
they operate.
The rates so fixed by them cannot
now be increased against the prohibit
ton of the Board of Public Utility
Commissioners. If, however. the legis-
lature should declare that these grants
must be regarded Gs contracts with
which orders of the Public Utility Com
mission shall not interfere the public
utilities would be free TO exercise their
own judgment as to what rates they
would impose provided they kept with
b the limits set forth in the fran
chiseS.
Could Impose Burdens.
ut seems to us that with such a con-
dition existing the utilities, In many
cases, could so increase their existing
rates as to impose a decided burden
upon those who have adapted them
selves to the use of their services.
Having, to use a commercial express
sion. their trade established, they
would be, II not subject to regulation,
In q position while acting within fran
N ~ Ahdhc lAtICdSSc
that would be neither necessary nor
reasonable, but which their customers
would pay rather than suffer the loss
and Inconvenience resulting from dis
continuance Of the service.
ut may be argued that the law can
be 30 framed that the board should
have power to tx any rate deemed by
It to be Just and reasonable notwith-
standing the fact that a higher rate Is
dxed In the franchise, but that the
board should at no time fx a rate be-
yond the franchise rate. This Involves
a question OF equity we do not feel
called upon to discuss. We feel that
we have performed our duty In point
ing out what may be the practical eff
feet Of a legislative declaration that
municipal grants accepted by utilities
be regarded as being beyond al
teration by the commission"
Must Improve Service.
The report states tat, judged by
tie standards reasonably applying to
- All n u rTV n@~