Perth Amboy evening news., 1920-01-05
UTILITY BOARD FOR PROBE
IN ANNUAL REPORT TODAY
Continued from page ~

There are those who urge in effect
that the efforts of a public utility
commission should be directed, nov
to dealing fairly with the people ano
the utilities who serve them, and to
seeing that both are protected in
their just rights but to ascertain
what those who claim to speak for
the public demand, and allow it with
out question or consideration of the
effect upon the utility"
The Utility Board then states hat
the latter policy would lead to disas-
ter and d~isinteGration Of companies
serving the public. Rather than
adopt that plan, it would be far bet
ter to discard private control, through
private capital and provide as speed
lily as possible for public ownership
and operation.
THE arguments that greater ef1l-
cheney, more economical operation
and a more satisfactory service can
be obtained with private ownership
subject to public regulation, have no
force If the serious problems it in
wolves are not to be fairly considered
and reasonably determined with JUS
tice to all; but are to be regarded as
something to be juggled with to gain
the applause of those who give no
heed to their true significance n
Importance, and fail to appreciate
the ultimate effect of ill considered
action" the Utility Commission in this
connection.
On the question of independent APP
praisals of property like that of the
Public Service Railway Company for
the purpose of fixing a just fare,
which idea was advocated in the re-
cent g~ubernatorial campaign, ays
this proposition is unfair to its work
of this character in the past. and asks
hat if the Legislature moves in this
direction the law be so framed that
those who make the Independent ap-
praisal may not be prohibited from
giving due consideration to invento-
ries and ~appraisals already made.
IF a law is so Worded as to preclude
such consideration" the report states
lit would lead to an unnecessary and
very expensive repetition for work
already DONE
In this connection the Utility Board
~recites that it has maintained an APP
praisal department with an expert at
its head, the latter and his assistants
appointed after a thorough examina-
ton by the Civil Service Commission
In addition special experts have been
engaged from time to time.
The report contains an interesting
discussion concerning the competition
between the regulated street railways
in this state n the practically I'M
controlled "j~itneys." IF the electric
must depend upon, in the future as
in the past, for local transportation,
plans should be devised which will ad-
mi of reasonable regulation of Jit-
Ineys' as well as street railways" says
the Utility Board. and result in the
progressive development of both in
the direction in which such develop
,ment fairy and legitimately leads"
In many states motor bus lines and
automobiles used for passenger traf-
fc are regarded as public utilities and
so regulated. They are not so re-
lgarded in New Jersey and local regu-
Ilations appear to be Inadequate, the
report Y
| The report contains a comparison
of operating revenue and operating ex-
lpenses and taxes of the gas companies,
electric lighting companies. water
companies, sewers, street railways and
telephone companies of h state in
the years 1914 and 1918. This COM
parison shows hat while the total in
Grease in operating revenues in 1918
over 1914 has been $~24,901,7l9, the
increase in net revenue has been but
S5O6,190; hat for each dollar of add
Itional operating ven received, ap-
proximately 90 cents were paid out In
Operating expenses n taxes; that
during the period from Jan. l., 1918,
to Dec. 81, 1918, additional capital to
the amount of $26,450.0Oo was in
vested to provide additions to any
changes in plant, to take care of in
creased business and provide improved
facilities and that the increased net
earnings from 1914 provide approx
mately two per e upon the add
tional securities.
With respect to street railways
while increased travel and higher
fares resulted in 1918 in increased OPP
Grating revenue to the amount of $4,-
541,1S6 over 1914, the net return was
|$7S2,481 less than in that year when
fewer cars were in service and the In
yestment of capital smaller.