New-York tribune., 1907-01-03
PUBLIC SERVICE CORPORATIONS.

PUBLIC SERVICE CORPORATIONS
Proper means for the regulation of the opera
uons OF railroad corporations should be supplied.
7 or want OF II pernicous faVoritism has been
pFactised. Secret rebates have been allowed.
ana there have been unjust determinations in
rates and in furnishing facilities for transpor-
tation. Those who have sought to monopolze
trade have thus been enabled to crush competi-
ion and TO grow in wealth and power by crowd
ing out their rivals, who have been deprived Of
access TO markets upon equal terms. These
legisla ted upon the subject with reference to
interstate commerce. where naturally the evil
has been most prominent But domestic COM
merce must be regulated by the state, and the
state should exercise its power to secure impair
tai treatment to shippers and the maintenance
Of reasOnab BILE rates. There is also need of reg
ulation and strict supervision to insure ade-
quate 5ervice and due regard for the convenience
ana safety OF the puohc. Inc most pracuctDie
way of attaining these ends is for the Legisla-
ture TO confer proper power upon a subordinate
administrative body
We have now a Board of Railroad Commits
sioners of five members 1t is charged specih-
cally with important duties. The execution Of
mortgages and the increase or reduction of cap
ital stock subject to it's approval, its cert1h
cate that public convenience and necessity re-
quire the construction of a projected railroad is
required before construction can be begun ana
it deals with changes in highway grade cross
ings and various other matters in dehnitlve
The law also provides that the board shall
have general supervision of all railroads and
shall examine the same and keep informed as to
their condition and the manner in which they
are operated for the security and accommoda-
tion of the public and their compliance with the
pro- isions of their charters and of law If in
the Judgment of the board it appears that any
change of the rates of fare for Transporting
freight or passengers or In the MODE OF operauis
the road conducting its business is reasonable
and eXpedient in order to promote the security,
convenience and accommodation of the public,
II may after notice and hearing fix a time within
which the changes shall be made.
But the action of the board in the exercise or
this general power of supervision amounts to a
,g1off,, ion
piled with the law provides that the matter
shall be presented to the Attorney General for
his consideration and action and shall be re-
ported to the Legislature SO. II IL appears that
any railroad corporation has violated the law or
uuiustly disCriminates In its charges, and the
wrongful conduct is continued after notice, the
matter is to be brought to the attention of the
Attorney General, who shall take such pro-
ceedings thereon as may be necessary for the
protection Of the public interests
The present scheme of regulation IS made
quate There is a lack Of precision in the dehni-
tion OF the powers Of the board and an absence
OF suitable means To compel compliance win its
decisions No penalties are provided FOR DIS
obedience 10 orders OF the board made "lthln
its proper authority. Nor is the board authorlZed
to institute and conduct legal proceedings for
the purpose Of enforcing its requirements.
II is also provided that the expenses os the
commission shall be borne by the railroad cor
porations upon the apportionment of the CON
troller This plan of reimhursing the state Is
wholly iudefenshle. The supervision of rail-
roads is in the interest Of all the people and
should be borne by the people AS any other ex-
pense Of administration. Such board should
he established in public confidence as an inde-
pendent governmental body receiving no support
from the railroads save as they are duly taxed
for the general support Of the government
We have also n Commission Of Gas and Elec-
tricity with broad powers with reference to cor
porations engaged in supplying gas and electric
current.
It is my Judgment that there is no need OF two
separate commissions 60 deal with these sub
laCts There row corporations which are
subject TO the jurisdiction Of both commissions,
and in some cases the same questions are pre-
sented for tho decision OF both. Similar prln-
ciPles are applicable 10 the decision in many
cases within the jurisdiction Of each and har-
mony of administration would be promoted by
having "A single body II is plainly In the in
terest OF economic administration In order to
avoid the unnecessary multiplication Of officers
and clerical force that there should be but one
commission. In the two boards we have now
eight commissioners A board of less than this
number would answer both purposes.
therefore recommend that the present
Board Of Railroad Commissioners and the Com
mission Of Gas and Electricity be abolished and
that a new commission be constituted. with
powers of regulation and supervision, within
constitutional limits, Of the corporations now
subject 10 the existing commissions. The com
mission should have all the powers possessed by
powers rs may be needed 20 insure proper man
agenent and operation. It's powers should be
clearly defined and should embrace the power
to act upon It's own initiative as well as upon
complaint: to pass upon the issue Of stocks and
bonds to examine properties. books and ac-
counts; 10 require detailed reports in prescribed
form: 70 prescribe reasonable rates; to require
adequate and impartial service: TO provide for
the safety Of employees and for the protection of
the public, and generally 10 direct whatever
may be necessary or proper to- safeguard the
public interests and to secure the fulhlment OF
the public obligations Of the corporations under
its supervision. Provision should be made Tor
suitable inspection that the commission may
be advised all matters within Its purview
and be in a position to take action on behalf OF
the people without the formal institution OF pro-
ceedinGs by cOmplainants. prescribed quorum
should be entitled 70 decide all questions. and
IN. 11Y1oiCE q
make examinations and Investigations, and the
proceedings and decisions OF one, when approved
by the board. should stand as its proceedings
and decisions.
The corporation guilty Of disobedience to its
orders and all officers and other persons re-
sponsible for such disobedience. should be Wis
tied with appropriate penalties The commits
sion should also be entitled to institute legal
proceedings for the enforcement of Its orders,
and all such proceedings should be expedited by
suitable preference in all the courts of the state.
The Legislature should thus provide. within its
constitutional power adequate means for the
entirely just and impartial regulation of these
important public enterprises.
CONDITIONS IN GREATER NEW YORK.
The problem of transportation in the terri
tory of greater New York demands special,
prompt and comprehensive treatment. The con-
nguraton of Manhattan Island and the concen-
tration OF business at it's lower end, together
with the rapid growth of population, have pro-
duced an extraordinary congestion. All the eX-
isting lines surface. elevated and subway, are
overburdened, and the people suffer in mind,
body and estate. The worst congestion Is found
at the Brooklyn Bridge, due to the conYergence
at that point of the Brooklyn traffic. The peo-
pie of Brooklyn who do business in Manhattan
are subjected morning and night not only 10 eX
asperating inconvenience. but to such maltreat-
ment and indignities incident to their disgraceful
boJ1 1iyTt baf practicable n