The Washington herald., 1907-03-08
Ncw orl's Proposed Corporation Law


With the fun approval Of Gov. Hughes.
there has been introduced in the two
branches OF the New York legislature a
comprehensive bill for the State regula-
ton and control of public-service cor
porau0us. The bill creates two public
service c0mmissions-one to deal with
public-service corporations in and about
New York City, and the other 20 have
supervision over those operating in the
remainder Of the State. The two COM
missions. though operating in separate
jurisdictions, have practically identical
powers. some of the more important of
which are enumerated in the subjoined
statement made by the authors Of the
bill.
The biz rrascrIbcs the duties Of transportation
companies including railroads. express companies
car companies sleeping companies. freight com
pauies, freight line companies. and pipe line com
pauies, and Of gas aud electric companies and
gives 90 the commission power 90 regulate the
operations Of such companies. Il provides for ade-
qUate side track and switch connections equitable
distribution Of ears. and requires the filing with the
commission and publication Of an tariff schedules
Joint tariff rates. and verified copies Of all con
iI
prohibits an unjust discrimination by whatever de-
vice and all discrimination or preferential treat
msnt in any respect whatever. Free passes are
prohibited save III certain excepted cases
The bill further provides that the franchise Of
a public service corporation shah not be assigned
transferred CT leased without the approval Of the
commission having jurisdiction. II forbids a rail
road or street railroad coronation, domestic for
eign. to purchase acquire take or hold any Of
the capital stock Of any other similar corporation
unless authorized b. the commission, and similar
provision is made as 90 gas ard electric cc7ora-
tons. II further forbds the transfer to any stock
corporation except as collateral security only Of
more than 10 pcr cent Of the total capital stock
of any railroad street railroad. gas. OF electric
corporation. but TINS does not prevent the holding
Of stock heretofore lawfully acquired
The powers affecting railroads sought
10 be conferred on these two commits
sions are much more extensive than those
now possessed by the Interstate Com
merce Commission. They may regulate
both passenger and freight fares and re-
quire "a service adequate 20 the needs Of
the public. They have control over the
issue of stocks and bonds, but cannot
authorize the capitalization Of franchise
values or the capitalization of merger
beyond the original capital Of the COM
bined corporations. thus making it i'm
possible 90 organize holding companies
Nor may corporations acquire the stock
of other corporations save by permits
sion Of the commissions or transfer 10
any stock corporation more than 10 per
cent of their capital stock. The pro-
visions of the bill have been made &c
conform 10 the interstate commerce act
where a similar duty would be imposed
by each law, so that there will be no con-
fiiot with Federal authority.
The authors of the bill say they be-
lieye the commission has been given pow
ers adequate to prevent the repetition
of many Of the abuses Of corporate man
agement OF public-service companies. and
TO remedy most Of the evils of which COM
plant has been made" They express the
opinion that the proposed legislation is not
only in the interest of the public, but also
OF those who invest in securities. It can
not be doubted that, if honestly and in
diligently enforced, it would so operate.
From the point of view of corporation
managers, the new legislation viii appear
radical, drastic. and cOnnscatOTy. As
Senator Depew would say, Il general
scare" has Overtaken the corporations.
and they are preparing 10 marshal all
their forces to defeat the public-service