New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-07
PRICE THREE CENTS.
NEW UTILITIES BILL In
is MADE MORE DRASTIC.
FiUe additional amendments Applu
to Regulation of Corporations.
IBv rslegraph % The Trihrna. I

\
changes in this draft OF the bill were made
after Governor Hughes. Senator Page and As
semblyman Merritt had consulted over the re-
prints made last week after the Assembly Rail-
roads Committee had held an open session. at
which representatives Of various corporations
opposing the measure were present. Five amend
ments have been made TO the bill as 1t was
amended them and all in the direction of
more drastic regulation of the corporations
which will come under the scope of the bill. OF
these the most important closely regu-
latng the issuance of short term obligations
for extension Of railroad facilities and one re-
moving that restriction in the previous draft as
to the granting of permission for the establish
ment of lighting plants in cities already having
we'll regulated facilities. This is especially appli-
cable 10 New York City. as under the previous
form of this section. many lawyers considered
that the Consolidated Gas Company and its
associated gas and electric companies would
have a complete monopoly of the lighting facili-
ties Of New York City.
The other changes provide that no act of the
commission may revive a laPsed or invalid fran
chise straiEhten out the provision as to PEN
aities during suit over an order Of the commis-
sion. and govern the procedure for contempt
when refusal has been made 10 answer ques-
tions
CHANGES IN THE MEASURE.
A digest of the changes in the measure sum-
marizes them follows:
The sections as TO the approval of issues Of
stocks. bonds and other forms of Indebtedness
nave been changed they now provide that
q common carrier, railroad corporation, street
railroad corporation. gas electric corpora
ton may issue such obligation. payable at
periods of more than twelve months when nee.
eSsary for the acquisition OF property the con-
struct1On completion, extension Improvement
or It's facilities, or for the Improvement main
tenance of its service for the discharge or
lawful refunding of its obligations. provided
anu not OtherWlSe, that there shall have been
secured from the proper commission an order
authorizing such issue and It's amount and stat
ing that in the opinion of the commission the
use of the capital be secured is reasonably
required, and for the purpose of determining
this the commission shall make such inquiry or
investigation, hold such hearing and examine
such witnesses, books, papers. documents or
contracts as II may deem of Importance in en-
abling IT to reach a determination.
The bill drafted further provides thar
such CORPORATIONS NAV issue notes for prSDer
| corporate purposes and not in violation OF any
provision OF law payable in less than twelve
months without such consent; but such notes
| shall IN whole in part directly or Indirectly
De refunded by any issue OF obligations running
| for more than twelve months without the con-
sent of the proper commission.
| Sections 54 and 20 of the bill require the ap-
| proval or the proper commission to the assign
ment, transfer. or lease If any franchise
| rights This Is strengthened by the addition OF
a provision that the permission and approval
OF the commission 10 the exercise of a franchise
or 20 the assignment, transfer or lease OF a
| franchise shall not be construed TO revive OF
validate any lapsed or invalid franchise or to
| enlarge add 20 the powers and privileges con-
! tanned in the grant of any franchise.
| The penalty for q violation OF any provision
/ Of the act for failure 10 comply with an order
| Is reduced from $4,000 To $1,000.
! Under the bill as originally drafted the penal
/ ties against a corporation would be cumulative
| even during the tendency of suit in court over
/ the order OF the commission. and action to
/ recover such cumulative penalties could have
/ been brought This is now modified so IF the de-
/ lendant In such action shall prove that during
any portion OF the time for which it Is sought to
recover penalties or forfeitures for a violation
| OF an order OF the commission the defendant
was actually and in good faith prosecuting a
suit. action or proceeding in court set aside
such order. the court shall remit the penalties
or forfeitures incurred during the pendency Of
suit, action or proceeding"
CONSTITUTIONAL OBJECTION RAISED.
AT this modification Senator Page stated that
a constitutional objection had been raised with
considerabl force TO the form Of the bill as
originally drafted. and that the change has
been made to meet the decisions in the cases OF
Farmers. Loan and Trust Company vs. Riegan
A provision has been added as to contempt
proceedings which says that if person in at
tendance before a commission or a commits
sicner refuses without reasonable cause TO be
examined or to answer legal and pertinent
question or produce book or paper when
dered so to do. the commission may apply to
any justice of the Supreme Court upon proof
by affidavit for order returnable in not less
than two more than five days. directing such
person 10 show cause why he should not be
committed To iaiI Upon the return of such
order the justice shall examine under oath such
person whose testimony may be relevant and
he shall be given an opportunity 10 be heard, but
if the Justice shall determine that he has re-
fused without reasonable legal excuse
u be examined to answer legal pertinent
question or to produce book paper which
he ordered bring. he may forthwith by
warrant commit the defendant To Jail TO remain
until he submits To do the act which he was so
required TO do or is discharged according to law.
The section relating 10 the approval OF incor-
poration and franchises of gas and electric
poratiOns. which criticised in its first form.
has been considerably changed As IL originally
stood il secured a practical monopoly In New
The provision that the commission, before it
issued a certificate allowing gas or electric COM
or privilege under franchise. should first In
quire into the good faith Of the corporation
and might refuse TO grant certificate II an
ample and we'll constructed system existed, has
been stricken out.
The provision that no municipality shall build
maintain and operate for other than rnunicipai
purposes gas or electric systems remains IN the
bill
At a meeting tonight of the Rules Committee
of the Assembly of which Mr. Merritt is men,
amended bill viii be printed. hut there Is little
likelihood that II will be reported by the Rules
Committee for debate this week.
CONSIDERABLE TALK OF Caucus.
There has been considerable talk to-day OF a
caucus of Republican Assemblymen on the buI
Immediately after the Rules Committee reports
It, Some warm supporters of the Governor even
/ have suggested that he held the
bill as win stand after these amendments have
been added. 10 prevent any further amendments
in the Rules Committee which might not suit
| the Governor.
| Senator Hooker. who was one of the warmest
supporters of Superintendent Kelsey. because