The sun., 1907-03-28
BEARING ON UTILITIES BILL.
COUNSEL FOR CORPORATIONS SUG-
GEST AMENDMENTS.
The lnterbOr0uGh Company says II the Bnl
Is Passed AglthOut Change IL VIII he
Powerless ito Remedy frame Evils
Objections Of the steam Railroads.

THIS AFTERNOON the members OF the senate
Judiciary Committee and the Assembly
Railroad Committee listened to representa-
tives Of the big steam railroads operating
in this State and Of the more important
street railroad corporations explain their
objection to certain sections of the public
utilities commission bill. Every interest
effected by the bill was represented in
some way. To-day was practically only a
skirmish and the steam and street railroads
had the entire time TO themselves. Next
Wednesday the hearing will be resumed
and contanus the remainder of that week
II necessary to finish it.
Those representing steam railroads to- day
were: Edward NJ. Shepard, for the Penn
sylvania and Long Island railroads, Albert
II. Harris and William p. Rudd, for the
New York Central and leased lines; George
=. Brownell, the Erie; W. s. Jenny, the
Lackawanns: Frank H. Platt the Lehigh
Valley; W. $. Opdyke, the Delaware and
Hudson William II. Greenough, the New
York. New Haven and Hartford; Walker d.
Hines, the baltimore and Ohio and Adams
Express Company, and Joseph +. Keany,
the Long Island Railroad
Paul D. Cravsth and De Lancey Niooll
represented the Interborough- Metropolitan,
and the United Traction Company Of Al
bany was represented by Lewis f. Carr
Amendments to the bill we're suggested
by all the speakers, and all were a unit in
demanding judicial review of the decisions
al the commission; that restrictions should
not be placed on stock and bonds issues
that the commissioners should have a fixed
tenure of orioe and that their salaries
should be commensurate with the ability
Of tie members needed for the commission.
Edward NJ. Shepard made the chief
argument on behalf of the steam railroad
men. He said that at a conference Of the
steam railroad representatives various
amendments were suggested which they
thought would make the bill more work.
able. He assumed that the Legislat ture
did not care to assist in spoliatpn, yet that
was what the present bill contemplated
He emphasized the fact that the bill has
practically left the railroads with nothing
TO do except to meet assured deficits.
The present bill. said Mr. Shepard
enables a commission 10 determine for
the owners Of a railroad how many EN-
ployees they shall have. how their COM
petency shall be tested. how they shall
be governed and supervised and perhaps
the wages they shall receive. The COM
mission is 70 determine what shall be the
equipment, what the motive power, what
the train service, what the time schedules
what the regulations for the receipt and
handling of freight and the like. While
the power is thus given to the commission
TO compel the owners of the railroads
peremptorily to make enormous sxpendi-
tires, they are, on the other hand, de
prived Of the right TO determine the Charac-
ter and amount Of their securities, by the
issue Of which they alone can raise the
capital thus made necessary.
-,
No commission, however high its character
or ability, is competent to take the place
Of a large body of highly trained and ex-
perenced practical men in charge Of these
properties. The proposal of the bill in
these respects is absolutely inconsistent
with either efficiency or safety, And while
the bill, unless amended, in effect transfers
tho ultimate power Of administration 60 the
commission, it does not eXonerate the di-
roctors and officers of the railroads from
the responsibilities which go with that ad-
ministration.
1pnless the amendments shall be adopted
proposing judicial review and preserving
20 the officers and directors Of the railroads
critics, the result Of the bill, if enacted,
would be in effect destruction of existing
property, for property in its essence in
wolves the right OF control and admins
tration. When that right is by legislative
act transferred ultimately and finally to
OF the property they are in effect de-
prived OF their property"
Mr.. Cravath followed, and said:
The Interborough Metropolitan interests
are not here to oppose the Public Service
Commissions bill. which has been prepared
20 carry out the recommendations Of Gov
Hughes 8 message, nor are the amendments
which we have to suggest intended to defeat
the bill have in view. On the contrary, We
welcome legislative action conferring upon
the proper public authorities wider powers
to deal with the difficult problem of provid-
ing adequate transit facilities for the people
Of the city OF New York.
SThe corporations comprised within the
lnterborough Metropolitan system have an
aggregate Investment of upward Of $780,
00,00O, and their securities are held by
over 5000 investors. The protection Of
ion Of the public at large, Is involved in
this legislation. We earnestly urge, there
fore, that the new laws confer upon the
commission which it is proposed to create
sufficiently broad powers to enable them
70 carry through measures for relief in any
form which it determines to be necessary.
1T happens that all OF the local surface
elevated and subway lines of Manhattan
and The Bronx are lawfully controlled by
one group Of corporations. Whether that
control u wise or unwis ise It exists, and for
the next generation, in all human prob
ability, the greater part Of the local traffic
IN New York will be carried upon the lines
Of those corporations, so that what they are
able to do and what they can be required
to do or permitted to do will count for
more than all other factors put together
Ia relieving the conditions which now
cause such serious complaint.
SThoee corporations cannot increase their
facilities, buy new equipment and improve
the service on their existing lines, much
less build new lines, without additional cap
ltAl. They cannot raise additional capital
without Issuing new securities and Offering
to investors a fair chance Of return upon
their investments.
SUndef this bill our principal company
would be tied hand and foot. Il could not
ACQUIRE the balance Of the stock Of the
oorporations, a ma jority Of whose stock it
already controls. II could not buy or guar
antee further issues of the stocks and bonds
Of those corporations. II could not acquire
the stocks and bonds Of other corporations
which it might be- necessary TO organize
to operate connecting lines OF extensions,
and In view Of the prohibition Of this Jaw
there would be no authority except the
Legislature which could remove those
disabilities.
we are not suggesting that the Legis-
lature should continue our present free
dom OF action in these regards, but We do
ask that you give your oomrniBsion the
power to permit us, In their wise discretion,
10 take such measures as shall be necessary
70 enable US TO carry our. share OF respon-
gIbilty on improving the transit facilities OF
New York ...-......,...