Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1920-01-24

weary of the continual litigation over
fares and rates, because of the great
expense involved and Of the unsa"s
factory nature Of the results thus far
obtained.
The rate-making legislation of 1911
grew out of the public belief that the
utility corporations of the State were
charging excessive rates for the serv-
Ice they rendered, and that COMPETE
ton as means of relief was prac-
teal impossibility. That act was ex-
pected to result in the prompt fixing
of rates by the Commission which
should be fair both to the public and
to the corporations. At that time 1T
was supposed that one Of the essential
elements in the fixing of rate was
the value of the utilities property.
Little progress, however, has been
made in the past eight years, In the
valuation of the property of these pub
lie utilities. The gas plant of the
Passaic district of the Public Service
Corporation. and the property of the
Telephone Company and Of tie Street
Railway Company Of Trenton have
been valued, but the remaining i'm
mense properties of the great Public
Service Corporation of the State have
not yet been valued. Under the pres
sure OF the exigencies Of the war, the
Public Utility Commission began to -
crease rates without any valuation,
but based upon emergency conditions.
This action led to court decisions justi-
flying the fixing of rates without
valuation, and wiping out all Of the
contracts limiting rates and Sc
curing other municipal advantages
which had been solemhly agreed to
by these corporations as fundamental
condition upon which their franchises
were granted. The Public Utility Com
mission has further aggravated the
public mind by trying crude expert
ments with the zone system, without
first determining how much money the
company is entitled t. earn. and these
experiments have aroused intense OPP
position among the patrons of the
road and the public generally. For
these and other reasons the whole sub
ject of the proper control of these pub
lie utilities is now back again in the
politics of our sStatel and it is my
duty and yours to face this problem
and to find final and permanent solu-
.tion.
I therefore recommend the follow
ing:
The present members of the Public
Utility Commission have lost the con-
fidence of the public, and no settle
ment or attempted settlement adminir-
tered by them will satisfy the public
mind. These men should be removed
from office and new Comr,ission es-
tabllshed. l recommend the i1nmedi-
ate passage of law abolishing the
Public Utility Commission and pro-
viding for an elective commission of
three members to be elected next No
vember. I further recommend that
the act provide cor the creation OF a
temporary commission of three men,
bers, to be appointed by the Governor
with the advice and consent of the
Senate. to act until the elective COM
mission is organized.
Valuing the properties of such COM
panies is an arduous task 1t should
not be placed upon the shoulders of
the Utility Board, inasmuch as that
Board, in order to give efficient servs
ice to the people, should be left free
to hear and act promptly upon COM
plants laid before II.
The problem of valuing the proper
CHI la
ton commission, the creation of which
will be provided for in bill to be
introduced at this session. To accom-
plish such task that commission, of
course, will require an appropriation,
and l earnestly urge upon your APP
preparations Committee immediate in
vestigation Of the subject so that it
will be able to include a provision for
the necessary moneys in the annual
appropriations bill.
Opposition to the fare increases by
the Public Service Railway Company
does not rest alone upon the failure
of the Public Utility Commission to
ascertain the value of the companys
properties. 1t is the result as well of
the belief of the public that the COM
pany has been permitted to earn
moneys for dividends upon stock and
for interest upon bonds for which
no consideration was paid at the time
of their issuance. In. other words,
such stock and bonds are water"
The facts should be finally and
definitely ascertained; when known
some solution should be determined
upon.
The Valuation Commission should
not only value the physical properties
of the company, but also find out how
much water" there is so that some
plan may be devised to get rid of 1t.
State Highway Reorganization.
The reorganization of the State
Highway Commission is of urgent i'm
portance.
There is no board or body in the
State OF New Jersey that has received
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