Perth Amboy evening news., 1920-05-04
TELL Of EXPERTS
IN UTILITY CASE
Governor Allows Testimony at
Utility Board Trial Despite
Objections by the Attorney
By Special Correspondent.

By Special Correspondent.
7 TRENTON, May 4:-Governor
Edwards continued the pro-
ceedings of Jersey City against the
members of the Public Utility Com
mission hearing today, hearing
George l.. Record. counsel for the
city. Record elaborated on charge
three of Jersey City to the effect that
| the Public Service Railway Company
| has been permitted by the utility
| board to divert 100000 from its de-
| probation fund to pay dividends on
what Record said was "watered
| stock" He quoted from the report
| of the board in July which said that
| the Public Service had violated its
| paramount duty as a utility in failing
| to take care of its depreciating prop
| erty by reserving money for It's up
| keep.
Charge four was next considered
| by the counsel. 1t read that the
utility board still neglects to compel
| the company TO look out for depre-
| citation. Another charge was that
the board allowed the Public Service
| eight per cent. on stock and other
and less influential companies" were
| only permitted six per cent. He cited
| seventeen cases in support of the lat
! ter, all being smaller gas companies.
l.. Edward Hermann, counsel for
| the board, objected to this on the
ground that 1t could be smaller COM
| panies more to manufacture gas than
| a big concern like the Public Service.
| William /. Lewis, of counsel, con-
| tended that these cases might not ap-
| ply to all the present members of the
| board and Record replied that his
opponents could produce the utility
| boards minutes to show how each
| member voted in these cases.
1 ho nrf In Of iG
| jackson, whom George l.. Record de-
clared had valued the property Of
| the Philadelphia Electric Company
| at $50. 100000 and later the company
| itself consented to reduction TO
,, S30,000,000.
Governor Edwards SAID he would
allow Cook to testify because he
wanted all the light possible in order
to render a proper decision on Jersey
Citys application for the dismissal or
the board members.
George l.. Record, counsel for Jer-
sey City. questioned Cook, who sub
stantiated the lawyers charge that
Mr.. jackson had made the appraisal
mentioned and later it was reduced.
Cook was an official in the admins"
tration of the late Mayor Blanken-
burg, of Philadelphia, and was d.
rectly mixed up in the valuation pro-
ceedings of the Philadelphia Electric.
|
subject of public utility regulation,
as we'll as lectured on the topic. He
is now q consulting engineer and
manager Mr. Record said yesterday
that he would be the only witness
called by Jersey City. The trial Is
being continued today.
Mr.. Hermann questioned Cook at
length on his lecture and his Dook on
the public utility question and con-
tended that the governor should not
permit his testimony. as 1t would
prolong the trial because the Utlllty
Board would have to bring experts 10
offset Cooks testimony. Most OF the
day was taken UP with discussion
of this witness and when he had
Mr.. Record during the hearing
charged that the Public Utility Com
mission had paid $4,000 of the states
money for Jackson to make an ap-
praisement of the property or the
Public Service Electric Company. be-
ginning Il. 1911, and yet on June p
Of last year, President Slocum, of the
utility board had declared that the
valuation of the company's 3o-called
Overhead costs had never been
finished and that the board had never
even discussed the matter.
Experts have been hired by THIS
board" declared Mr. Record. who
have also been extensively employed
by corporations elsewhere. For In
stance. A. s.. Ritchie was employed
by the Public Service Company in
tile emergency fare case and later
by the utility board in the zone fare
roceeding. r. NJ. Fuestel was an
other and Randall Morgan. of Ph''a-
delphis., companies. with which MIR.
Fuestel had been connected, was pres
ent at the hearing at which Mr.. Fue-
stel testified for the board by strange
coincidence and Mr.. T. M. McCarter
endorsed the witness.
This board has hired men who
have been biased by years of fat fees
from corporations. That is my
charge. They never ought to have
hired men who worked for years for
these companies and that is malfeas-
ance in Office"
Counsel Herman during his exami-
nation of Cook read a letter from the
let-er to Mark NJ. Pagan. when mayor
OF Jersey City. in which he declared
that Expert Jackson always followed
the corporations and that when New
Jersey employed him, 1t had made
serious mistake
Each member of the utility board
has special counsel at the tr al. Josh
tah Stryker represents Commissioner |
John w. Slocum. and Andrew Gs.ul, |
Jr.. former Judge William I. Lewis,
for Commissioner George F.
Wright, and V. c. Palmer. is repre-
senting Commissioner Harry L. |
Knight.
The utility board members them |
selves did not attend yesterdays ses- I
sion and there were very few spec |
tators. outside the newspapermen, es- |
pecially In con ps.rison with the hear. |
Ing last fall before Acting Governor |
Dr. I...-