Evening star., 1927-04-10
BY 8. M. RUKEYsER.

grind for gas versus electricity, or for
buses versus trolley cars. Mr.. Nc
Carter's comprehensive enterprise
uses all these competitive tools, and is
in a sense a neutral observer In the
intensified competition among the
various means of giving the public
what it wants. For that reason, Mr..
McCarter's views on the position of
these different types of utilities are
those of an impartial insider.
1.-THE outlook for the public utility
industry generally" Mr.. McCarter
told me as we chatted in the executive
offices of his company at Newark, N.
J., 'is generally good, especially for
the electrical end.
"The gas business is not so good,
| particularly because in the case OF
our corporation the rates are not ade-
| Quate for the amount of capital in
vested in gas properties. Last year
| (the Winter Of 1925-26) the gas busi-
ness was unusually good, however, on
account of the anthracite coal strike,
| which stimulated the use Of gas in
stead of coal by householders. This
year, however, there was no anthra-
cite strike, and the weather was I'M
usually mild. Moreover, gas is to an
increasing extent feeling the compe.
tition of electricity. In our section it
is now being used by householders
| primarily for cooking, but electricity
| is beginning to get even into that
field.
New Uses for Gas.
"On the other hand, new uses for gas
are always being found, and within Is
years / predict that gas will be quite
| generally used by householders for
| heating instead Of coal, despite the
| fact that it will cost one and half to
two times as much. However, the
added comfort will induce increasing
numbers of people to use gas. We
are already installing gas appliances
| in considerable numbers, but the
movement is hardly yet under way.
| Gas is clean and automatic, and there
are no ashes. Gas appliances for
heating may obviate the need OF a
| servant.
LAS part of the rising standard of
| living in the United States, the people
| turned from the candle to gas and
| then to the electric light, in spite of
the fact that each new Improvement
entailed added expense
Mr.. McCarter said that he saw some
| improvement in the ill-fated traction
situation, which has been citadel of
| gloom since the war. In the case of
his own company, the net from the
transportation side of the business in
creased 81 200. 900 last year.
1--WE have been taking the leader
| ship" Mr.. McCarter said, ''in co-ordi-
mating busses and trolleys. Our enter.
prises constitute the biggest operators
of busses in the United States. About
six years ago wildcat jitneys came into
our territory and paralleled our troll
1 1axP AA1 .e-1~~ +l.A.sA
| surfeit of service-an uneconomic sit.
uation. Our subsidiaries gradually
got into the field and obtained bus
| franchises. Now we are trying to give
adequate service throughout the ter
ritory, but not more than is needed.
In some places, as in Newark, we are
using both busses and trolleys; else
where we have eliminated one or the
other.
Newark Is an Example.
I'm a large city like Newark, there
will always be place for trolleys, To
use busses exclusively would unduly
congest the city streets. However, in
a smaller city, Paterson, we substitute
ed busseS for trolleys because there
| was only a single track, and that re.
| suited In delays. In general, we are
| expanding by means of busses, but
there are exceptional cases in which
we are extending our trolley lines.
From the company'S standpoint,
there is no great economy In running
buses instead Of trolleys, which, with
| the same labor costs, carry from two
to four times as many passengers.
| Our busses and trolleys receive ap-
proximately the same fare, and we are
planning to ask the Public Service
| Commission m 20 n
around.
/ There is no question but that the
public likes busses, especially because
they come right up to the curb for
| passengers
The corporation and its subsidiaries
supply electric light and power. gas,
and street railway transportation to
all of northern New Jersey and to
the principal cities in the remainder
Of the State.
The corporation has been a leader
| in the customer ownership movement,
and is now engaged in the fourth
campaign to sell preferred shares to
the public in its territory. The COM
pany is offering S3.000,000 of per
cent cumulative preferred shares at
par, and, according to Mr.. McCarter,
$4,000 900 was subscribed in the first
lcouple of days of the campaign which
will continue until the end of April
1t costs the corporation So share
to sell the stock, Mr.. McCarter said,
which is less than bankers would
charge to market the stock in the con-
ventional way.
/ Enthusiastic About Popular
Ownership.
ar am very enthusiastic about these
popular ownership campaigns" Mr..
McCarter said. "They are good all
around. They give the employees who
receive commission for selling the
stock q chance to make extra money
an opportunity which they welcome.
Moreover, the new stockholders be-
come friends of the company, instead
of corporation baiters. When those
who are now paying for their shares
on the partial payment plan get
through, we shall have 10000 share
holders"
Mr.. McCarter, a former attorney and
judge, has been head of the big utility
combination since it was first con-
ceived and organized in 1908. Under
his direction, the gross revenues
have expanded seven-fold, increasing
every year with the growth Of the
territory.
Mr.. McCarter is robust looking,
ruddy faced individual, rotund and
good natured in appearance. He looks
! more like a politician than a captain
of industry. His eyes are blue and
friendly. and his hair is tinged with
gray. He will be so years old in the
Fall.
A lawyer by profession. Mr.. Nc
: Carter was active in public life earlier
in his career. He is a native of New
ark, a graduate of Princeton College
: and of the Columbia University Law
! School. After practicing law, he
served as Judge of the First District
Court of Newark for three years, then
: served two years in the State Senate
and then held the position of attorney
general for FIVE years. He resigned