Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1924-07-10
CONFLICT OVER
WATER RATES
WILL END SOON
Public Utility Board Decision
Will Be Made Some Time
This Month
COUNTER CLAIMS MADE
Municipalities Claim Middle
sex Water Company Make
Much with Present Rates
COUNTER CLAIMS MADE

The Middlesex water rate case,
which has been bitterly fought by
the municipalities, is soon to be
brought to a close. During the past
week the Middlesex Water Company
fled a rejoinder brief attacking the
position of practically everyone con-
nected with the municipalities side
of the case from the counsel down
to individual witnesses and at the
same time taking pot shot at the
previous board of Public Utility
Commissioners, claiming that the
water company had been starved by
the rates permitted.
There now remains but the de-
cision OF the Board of Public Utll-
ftv Commissioners which is expected
during July. The final brief of the
Municipalities answered all the al
legations of the Middlesex Water
Company.
Statement was made in both briefs
Of the Middlesex Water Company TO
the effect that the company had peen
Starved by the Board Of Public Jul
ity Commissioners through 1nsuin-
cient rates. 1t alleged that 1t was
due to these rates that 1t was unapie
to give adequate service and CLAIMED
that its petitions for increases III
rates heretofore had been cut down
Nv the BOARD of Public Utility Com
rnissioners. The municipalities an
swered this by pointing. out that IN
the first rate case in 1920 the Mid
dlesex Water Company got the iden-
tical schedule of rates proposed py
a. 70 the Board of Public Utility Com
noissioners. This brief further states
that the second increase allowed IN
1920 by the Board of Public Utiilty
Commissioners was to meet the re-
ouest of the Middlesex Water Com
many for additional revenue to cover
suddenly increased costs in operation
primarily due to the jump IN tne
nrice of coal. 1t was pointed out
that while the commission did not
allow the surcharge asked by tne
Middlesex Water Company, 1t did
nut in a sliding scale depending upon
fhe price of coal delivered at the
Middlesex Water Company's pump
ing plants. 4ha
Here the municipalities made the
point that the second rate allowed
in 1920 by the Board of Pubic Jul
ftv Commissioners must have peen
sufficient because the Middiesex
Water Company has been aple To
meet the increased cost OF operation
for the past four years, pay IL ponoeo
obligations. pay seven per cent on i.s
preferred stock, eight per cent on lts
common and add something 10 sur
plus each year.
In the second brief of the Middle
sex Water Company much was mace
OF the testimony of FRANK bersen'
president of the Middlesex Water
that he had
been making speeches for a number
of wears regarding the development
Of the Raritan- Milestone source of
supply for twenty-six municipalities,
mostly in Union county. In the COM
pany's brief it put forward this ac-
fivity as an effort on the part of the
Middlesex Water Company to rem
edy the present inadequate service.
In the answering brief, the towns
pointed out that the Middlesex Wa
ter Company has had at all times
plenty of water to supply It's con-
sumers, but that it has lacked SUM-
cient transmission capacity, particu-
larly a twenty-four inch pipe line
from Oak Tree to Woodbridge. 1t
was pointed out that due to this lack
1of a sufficient transmission system,
tthe Middlesex Water Company has
0been selling its water to other COM
panies In Union county which are
supplying water to other municipan-
ties in that county. The municipah-
ties pointed out, too. that there
never has been any question of the
adequacy of the supply, simply the
question of building this main which
the company recognized as necessary
even years ago.
The opponents to the proposed in
crease claim that the Middlesex Wa
ter Company at no time attempted
to build this main nor did 1t ever go
before the Board of Public Utility
Commissioners and ask for an in
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