Perth Amboy evening news., 1921-06-11
UTILITY BOARD
ATTACKED IN
CAR FARE CASE
Attack of McCarter Features
Hearing in Supreme Court
on 10 Cent Fare
HE CRITICIzES SYSTEM
Management of Railroad Left
to Three Members of the
Board, He Says
ARE MEN OF INTEGRITY
Ignorance of Business Which
they Undertake to
Control
HE CRITICIzES SYSTEM
ARE MEN OF INTEGRITY

TRENTON, June 11:-An attack
by former Attorney General Robert
II. McCarter upon the Board of
Public Utility Commissioners feat
ured the hearing before the supreme
court yesterday afternoon in theSap-
pication of the Public Service Rail-
way Company for permission to
charge ten cent rate of fare. Mr..
McCarter said the modern trend of
legislation has left the management
of the Public Service in the hands
of three gentlemen, the utility COM
missioners, who are men of unques-
toned integrity and ability but
whose ignorance of the business
which they undertake to control is
supreme"
The Public Service was before
the court on review of the
Public Utility decision denying ten
cent fare, the board holding that no
wartime emergency exists and a
permanent fare will be decided with
in a month.
Mr.. McCarter's resume of utility
legislation took place following the
argument of Frank Bergen, general
counsel for the railway company,
pointing out that the utility board,
under the statute, acts as complain
attorney general said he was not
quarreling with the situation in
which the company finds its business
subject to regulation, but pointed
out to the court that other enter
prises are permitted to fix the prices
for their commodities. Referring to
the increased cost of operation for
trolley corporations, he said the gen.
eral trend of prices has been up
wards and everyone has felt the
pinch.
Newspapers have been compelled
to raise their prices and even judges
have been granted additional COM
pensation, said Mr.. McCarter, illus
trating his point that the Public
Service also needs additional money.
We are simply asking the new man
ayers of the company, the Board OF
Public Utility Commissioners, i'm
posed upon us by law, for what
everybody else is getting, argued
Mr.. McCarter. Reviewing the his
tory of the Public Services several
applications for increased rates since
1916, he paid his respects to the old
Board of Public Utility Commission
ers in glowing sarcasm and LOUD
tones. His brother, Thomas N. Nc
Carter, president of the Public Ser
vice Corporation, sat at the table of
the counsel. The Public Service
president, a few years ago. referred
to the old Utility Commission, which
Governor Edwards removed from
office, as "a bunch of political horse
thieves" Time has proven that the
managers of the Public Service
know better than the old utility COM
mission how to manage its own
business. argued the attorney gen
eral. He referred to the enforced
fiasco of the discarded Zoning sys-
tenn and how, after prolonged en-
treaty, the company was permitted
to restore the seven-cent fare. III
the Public Service had not been able
to call upon it's friends in 1920 to
help it out of the financial difficult
ty," said the lawyer, land those 10y
al friends had not gone down into
their pockets, it would have been
necessary then for the Public Service
to go into bankruptcy"
Mr.. McCarter said that in the
case in which the ten cent fare was
denied, the new utility commission
adjourned the case for three days
awaiting the receipt of the report
of Ford, Bacon and Davis, which
valued the property of the Pubic
Service at S125, 100000, Then the
rev utility commission discarded
the report and announced that 1t
would deny the increase In rate.
You can not expect inexperienced
utility commissioners to have the
same experience as the managers OF
the Public Service. he continued.
These managers want to see the
company succeed. We have the ex-
perience of Philadelphia, Brooklyn
and Connecticut. he continued. ana
remarked that trolley corporations
in those cities We're starving.
shall we starve?" queried Nc
Carter. at is only through the
bounty of our friends that we have
been kept alive" McCarter cited
the instance of a widow, holder of
Public Service securities. attempt
ing to find out if she was financially
ruined. He declared those securl-
ties should be properly protected.
"Am I ruined % said Mr.. McCarter,
repeating the query of the Public
Service security holder. That is
what you seem to want, Mr.. Rec
ord, shouted McCarter. as he turned
to George l.. Record, counsel Tor
Jersey City.
Even assuming that the new Pub
tic Utility Commission disposes of
the company's application for per-
manent rate the middle of July, Nc
Carter said it contains only the
promise from Public Service OPP
ponents of protracted litigation.
Mr.. Record, he said. has stated that
an increased rate would be carried
through the courts.