Perth Amboy evening news., 1923-05-17
UTILITY BOARD FLAYS
MIDDLESEX WATER co.
(Continued from page ID

of their president. 1t is admitted by
him that the present sources of wa
ter supply should be increased to
meet the growing needs of the COM
munities served and that failure TO
| do this makes imminent water FAM
inc.
He also admits that nothing has
been accomplished toward financ-
ing the Raritan and Milestone source
of supply of towards financing the
construction of the transmission
main from South Plainfield to Wood
bridge. The problems to be solved
/ are not essentially legal problems.
Upon such problems the advice OF
The president of the companies would
be of great value.
THE more important problems,
however, are of engineering, eco
Monies and finance. The existence of
these problems calls for a manage
ment possessed of energy and sound
business judgment. which would well
come the cooperation of every agen-
cy that may aid in their solution.
/ Such solution is not aided by public
indifference to the difficulties which
confront the companies, on the one
hand, or, on the other, by refusal
to recognize the conditions under
which public utility enterprises must
be conducted in modern times, and
the duty of the management to re-
cognize and respect the authority of
duly constituted agencies of the gov
! eminent.
The president of the Middlesex
and Plainfield- Union Water Com
panies submits as an explanation of
their failure to finance the necessary
developments that so long Is the
companies are subject to regulation
by the state they cannot borrow the
necessary capital. This would not be
regarded as worthy of discussion,
but for the position of the president
of the companies, and the effect of
so narrow a viewpoint upon their
welfare and that Of the public. 1t is
true that under regulation there is
not the opportunity to enjoy specu-
lative profits incident to the issue
of securities bearing no relation to
the value of the property of a utility,
the character of its service, or the
business and reasonableness of its
charges. On the other hand. the SUI
pervision exercised over capital is
sues and expenditures by a regulat-
Dry commission, its duty to require
proper maintenance of the property,
and to fix rates just and reasonable
to the utility as well as to its GUS
toners, give to the bona fide inVes-
tor a security he did not enjoy when
service to the public, for a reason
able return on Investments honestly
made, was subordinated TO the spec
ulator's greed for excessive prof1ts.
"A practical and effective answer
to the statement that because of
regulation money cannot be borrow
ed is found in the record of APPROX
ais given by this board for issues OF
securities by public utilities, totaling
many millions of dollars, for plant
extensions and developments.
Apparently public utilities oper-
ated under a capable and progressive
management experience no great
| difficulty in obtaining capital for
such purposes.
1T is evident that if the Raritan-
Milestone source of supply is to be
| developed by the Elizabethtown, the
| Middlesex and Piainheld-Union COM
| panies there should be cooperation
between them in financing it. 1t is
evident, Furthermore, that when the
president of the Middlesex and
| Plainfield- Union companies publicly
proclaims that the credit of these
companies is ruined, and that SO long
as they are subject to regulation by
the state, it is hopeless to expect 1t
to be restored, investors will hesitate
TO loan money to them. Such inves-
tors naturally will prefer to place
funds where there is a continual and
increasing demand, in the securities
of public utilities, the arrangements
of which appreciate the safeguards
of regulation, respect the authorities
| that administer it, and express con-
fdence in the future of the compa-
| MES under their control"
The board referred TO the laws
passed at the last session of the
legislature which authorized cities
either to condemn and acquire water
plants, or to contract with water
companies with long term agree
ments for their water supplies.
The board declared that If the
companies and the towns involved
really wished to get the develop
ments ordered by the board under
way, they would decide as quickly as
possible whether the matter SHOULD
remain in the hands of the board or
whether the concerns and the towns
will take advantage of the new laws
and take the matter out of the
boards hands entirely.
IN the former event., the DOaru
declared it was willing to re-oper
the cast for further hearing.
The board asserted it will do moth
ing to order the Elizabethtown Com.
pany TO carry out the instruction;
of the board with regard to the i'm
provements demanded of that com
pany alone, until the rate case il
settled in the supreme court. The
board will keep in touch with the
situation and upon the conclusion O.
the cas- will decide what further &C,
ton should be taken.
With regard to the transmission
main from South Plainfield to Wood
bridge, the board stated it woult
hold a further investigation to as
certain whether such a main woul'
be justified or lead to improved ser
vice without the development of al
additional source of supply. TIL
board will inquire whether this mai
should be constructed Independent
of the development or the Raritan
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