Perth Amboy evening news., 1920-07-13
Local Gas Rate
Increase Now
Up To Court
By Special Correspondent.

BY Special Correspondent.
TRENTON, July 13.--The question
whether the trolley. gas, electric,
water and other utility companies
serving the people of the state are
to obtain increased rates based upon
a valuation of their property typical
of the abnormal prices of the day
or representative of the prices pro-
viding at the time these companies
paid for their equipment is now
squarely before the supreme court
of the state. L. Edward Hartmann,
counsel for the Public Utility Com
mission has obtained an order from
Supreme Court Justice Swayze
uniting cases which have been
brought before him by the gas COM
pany serving Elizabeth, Perth AM
boy, Woodbridge. Metuchen and
Linden and these respective mu-
nicipalties in which the question of
the value of the companies property
is the subject of dispute.
The outcome of the proceedings
will be watched with marked interest
all over the state as upon the result
hinges the question of higher or
lower rates in New Jersey for some
time to come, at least until normal
times are returned.
In it's recent decision giving the
Elizabethtown Gas Company. the
Perth Amboy Gas Company. the Me-
tuchen Gas Company and the Gran
ford Gaslight Company permission to
increase their rates to consumers in
these communities from ninety cents
a thousand cubic feet to $1.15 per
Thousand, at the utility board based
this rate upon the value of the
property of the companies as of 1916
and the average for the five years of
normal prices prior to that date. To
this result the board adds the cost
of any new equipment which the
companies have acquired from 1916
to date.
The Elizabethtown Gas Company
and the three others, which are its
subsidiaries, had asked for a rate
of $1.35. They now come before
the supreme court in certiorari pro-
ceedings asking that this action of
the Utility Board be set aside ana
a new and higher rate be granted
upon the grounds that the Utility
Board fixed the value of their re-
spective properties, for rate pur-
pose too low.
They think it should be based
upon the average cost of equipment
from 1915 10 1871.
On the other hand the cities serv-
ed by these gas concerns have asked
for writs upsetting the action of the
Utility Board in fixing the rate at
$1.15 upon the ground that 1t Is
too high. They claim that the board
fixed the property value at an ex-
cess figure and want reduction
which would produce a lower rate
for gas.
BY the action of Mr.. Hermann
both sides to the controversy have
been joined in one issue through
Justice Swayze's granting of the ap-
plication to have the separate suits
made one. If the court finds that
the valuation fixed by the board was
too low. Elizabeth, Perth Amboy.
Crawford and Metuchen will proba-
bly, have to pay still higher gas
rate based upon a valuation for
property bought in the normal days
before 1916, but figured on the soar
ing prices, since that year.
If such is the outcome of the pro-
ceedings, it is regarded here that
every utility company in the state
will Immediately demand new val
uation of its property at current
prices and new rates in keeping with
the appraisement. 1t is also said
that this inflated valuation would
remove the issue of whether the
appraisement on today's figures
would fully represent the price OF
all stock issued.