Reader's Forum. / Utility Would Use Half Its Rate Bid To Pay Its Taxes (From Page 38) million. The rates currently in effect do not recognize this investment in additional facilities — this is one important reason behind the drastic decline in earned return. Bate of Return — The Company is requesting an increase in the authorized return from 10.15% to 13.52%. The latter Consisting of an average cost of debt of 10.2% and 19% return to the Company’s shareholders. The increase in the average cost of debt is due to the tnuch higher level of interest rates which have persisted since 1960 combined with the need to borrow additional funds to (a) support a portion of the added rate base and (b) provide funds to pay off at maturity 30 year mortgage bonds issued in the late 1940’s and early 1950's when interest costs were only about 3%. THE INCREASE IN RETURN ON EQUITY from 13.75% to 19% requested by the Company is what we believe our return on equity must be to be able to sell additional common stock at book value. Since 1974 the Company and its shareholders have not earned the returns found to be fair and reasonable by the New Jersey Board of Public Utilities, and the Company has consistently sold additional common equity at prices below book value. Thus, the shareholders of the Company have been consistently subsidizing the Company’s rate payers. In order to continue to attract investors to provide the funds required to pay for a portion of additional plant and equipment, the Company must provide a return on investment which is competitive in today's market. Currently, fixed income investors are demanding, and receiving, returns of 16% to 17% and equity investors who are exposed to greater risk are demanding a higher return commensurate with their greater risk. The price of our slock in relation to its book value confirms this \ fact. 3) Adjusted Utility Operating Income — As previously indicated, these expenses represent the cost of operating and maintaining our facilities for providing service. These increases are due mainly to irtflation and the operations and maintenance of additional equipment. SUMMARIZING the above, our instant proceeding can be summarized as follows: Revenue Requirement to support rate base at the previously allowed rate of return 130 million Revenue Requirement to support an increase in the allowed rate of return from 10.15 # to 13.52* S34 million Revenue Requirement to support increased expensesSU million Subtotal SSI million In order to net Wljnillion to cover the above items, it is necessary to receive more than $61 million to allow for the payment of additional taxes. These taxes are in the form of additional federal income taxes of $69 million and additional gross receipts and franchise taxes of $22 millioh that must be paid. I trust the above provides an overview to your core statement. Although our rates are higher than the national average, they compare favorable with rates of other companies in our general geographic area and within the State of New Jersey. Brian Parent is vice president and treasurer of Allan tic Electric.

Anyway, Martin Had a Chauffeur

by Richard McCarsey Jr, In response to the article on Mr. Martin Z. Mollusk; I will have you know that he was not ’’carted over the boardwalk in a chauffeured limousine last year,” rather on the back of a 1948 Harvey Davis (Harley Davidson). I know, because I chauffeured him. Just to clear the air a bit. ('thought I’d let everyone know. Richard McCarsey Jr is a resident of North Cape May Editor's Note: The investigative reporting team of theHerald and Lantern is checking into the cause of this ap pareht misstatement. It has been suggested that Mr Mollusk may have been so caught up in the dazzle of his yearly appearance as to be unaware of his means of transportation.

viewpoint On the Road to

Cape May

by Jane Ann Cunningham The seasonal deluge of tourists on Cape May County has begun anevy.'and with it the reoccurence of all the familiar inconveniences and potential highway hazards. Riding the roadways, Which are adequate for the year-round population, now becomes a frustrating, often dangerous endeavor, i Here areja few examples and observations; the reader undoubtedly can pinpoint others: •There should be a more forceful warning of the Crest

When the sp^S limit on the Garden State Pkwy and the Atlantic City Expressway was lowered to 55. drivers found they could make the same time — and save mdnev - by using the reads to Buena to the Black Horse Pike and then to the North-South Freeway. Manuevenng through this six-point interchange at Cross Keys - with four reads having stopsigns, and two with none - is always a heart pounding experience. On a Friday evening, with both local and shore-bound traffic, it is awesome It mast be high on the list of the state's most dangerous intersections

It’s that time again when the song of the road is often filled with expletives

Haven Rd; traffic light on Ihe southbound Garden State Pkwy, Drivers who have traveled over 100 miles without stopping for a light are often somewhat hypnotized by the Ipng stretch; especially in rainy or foggy wealhbr. this light appeirs suddenly. •For summer only, couldn’t there be turn signals on the Garden Stite Pkwy. at Stone Harbor Blvd. for westbound vehicles turning south and eastbound motorists going north? •What cin be said about Rts 9 and 47? They probably should be labeled Dangerous Road—proceed at your own risk! Avalbn Blvd and Rt. 9.cou!d be helped with a traffic light for the summer onslaught. « • • • IT SEER IS WHEN THERE IS A FATAL or serious acci dent on the heavily traveled two-lane highways, it is noted the driver lit a utility pole. Many of these poles are quite close to narrow lanes where cars are going the legal limit. This may lot have been a problem when they were first installed a id traffic proceeded at much lower speeds, but today the xiles are death traps. We realize suggestions they be m >ved back would meet with the regretful news from the u ilities that such a project would result in higher rates <whi :h is the standard reply.! •An espjcially frightening intersection, which isn’t in Cape May County but is being used by more and more local peop e and tourists, is in Cross Keys

The Corrections System shmtr Beet, si. k,„ Some Prisoners Won’t Reform

1

Fox

The success rate of prisoner rehabilatation, or perhaps a more accurate term I would be reformation, has never been too rewarding. But sincere attempts are an f obligation jail administrators have order to salvage whatever good they can, I and this is as much in the interest of the |

taxpayer as for the prisoner.

The size or type of institution apparently has little effect on the overall success of such efforts. It is true, however, that in the

larger systems dealing with inmates serving longer sentences, the potential for rehabilitation does exist because such efforts, if they are to succeed at all, cover a

considerable amount of time.

The county jail is at a disadvantage here as its inmates are either temporary pre-trial detainees or short-term prisoners. True reformation requires specific and carefully planned programs which consider each inmate as an in-

dividual case.

STAFF EFFORTS MUST BE directed toward moving the prisoner away from both his negative thinking and his prior problem-producing environment. This can often be accomplished by positive persuasion, prodding influence and a fair consistent punishment/reward system, along with well-planned programs and cooperating social agen-

cies.

Perhaps changing of the inmate's poor habits is one of the most important areas needing enlightened treatment. Creating a healthy attitude toward the traditional work ethic, and encouragement for the inmate to expand his education are two more rehabilitation goals. All types of men and women pass through the portals of our jail systems - some with education who cooperate, serve their time well, and are never seen again. OtherjL

are on a one-way track, their Qchi against society's stan dards continuous. STILL OTHER PASS THROUGH the system as pro ducts of ajlifestyle over which they had little control and which directly contributed to events leading to their imprisonment. Some will ase this same background as an excuse for their criminal behavior It is obvious, then, that prisoners manifest a wide range of emotioris regarding their conflicts with society — a lack of respectj for people, property or self; hostility, resentment, cynicism, defiance and doubt. Persons with such attitudes present a tough challenge to correctional administrators and their staffs. A prisorjer’s experiences while serving time, especially a younger 1 prisoner, has an important bearing on future behavior. Therefore, the good penal system will^t while carrying out its lawful castodial responsibilities, seek effective ways to at least lay the foundation for prisoner reformation. IN THE FINAL ANALYSIS, the main reason for the general failure of rehabilitation programs may lie in the fact that dome prisoners choose to remain as they are no matter what motivating techniques are sincerely applied, nor how much time and money are spent. Unfortunately many of our "social crusaders” just won’t accept this I do, bul I also believe there are meaningful things that can be done to modify prisoner attitudes and behavior. They may|not constitute “true reformation,” but they certainly can help bring a prisoner to some new realization, and influence him to make necessary adjastments to insure his current incarceration will be his last imprisonment. This continuing series by Cape May Coupty Sheriff Beech Fox has been condensed.

Since it's doubtful any roads in the county will be any safer than they were last year, we can only advise our readers to remember-that the season Is beginning and to be more careful than usual. Be patient with drivers un familiar with our roads Jane Ann Cunningham is: former publisher of the Herald Gypsy Fight Worth Half-Million More

by Senator Jamec •turlry I^ist year, gypsy moth caterpillars defoliated a rtcord number Of trees in New Jersey And this year the damage could be just as bad, state agriculture officials say That is why I have co-sponsored legislation to provide additional, state funds for muncipalities to control gypsy moth in festation. The bill would provide an extra $500,000 so municipalities would be reimbursed for half the cost of spraying to guard against gypsy mofh damage These funds would make up for cut backs in federal aid Some 100 communities around the state* are spraying or plann ing to spray over 75,000 acres during the next few weeks THE ADDITIONAL STATE ASSISTANCE will enable those municipalities hard hit by gypsy moths to go ahead with the spraying and perhaps even to expand it spraying is expensive, costing as much as $30 an acre But it has been provep to he effective in curbing damage to trees The spraying program is voluntary Gypsy moths pose a serious threat to New Jersey's woodlands Last year the ihsects devoured Boo.ooo acres, nearly twice as many acres, as the year before The defoliated area roprcsents'abdut 75 percent of the state's

...there is one way to check its spread—spraying

12 million of acres of hardwood forest No area of the state, including heavily urbanized Hudson Coiinty, escaped the gypsy moth. WHILE THE WORST DEFOLIATION was in the nor thorn part of the state, Cape May gnd Cumberland coun ties also were hit hard. . Although most of the damaged trees have since grown new leaves, many are in 0 weakened condition and are more susceptable to disease. The gypsy moth first appeared in New Jersey in 1966 and has been damaging trees ever since. Although state officials say there is no way to eradict the insect from New Jersey, there is one way to check its spread - spraying That is why 1 it is essential to invest another $500,000 in gypsy moth spraying before thousands of additional acres of New Jersey's valuable hardwood forests are destroyed Senator fames Hurley of Millville represents Cape Mdy and Cumberland counties in the N.J. Senate.