The sun., 1908-08-13
FARE DISPUTE JURISDICTION
FEDERAL JUDGE PASSES TT
OVER TO THE STATE COURTS.
Instruets Receivers to Assist in Haying
Transfer Issue Determined Promptly,
but Questions the Feasibility OF Joint
Rate-Belt line Makes an Oner.

Dut QuesuOns ne Fensibihty Oi So"'
Rate-Belt line Makes an OTer.
l. Judge Lacombe Of the United States
Circuit Court handed down yesterday
decision which in effect removes the con-
tention Of tho Public Service Commission
with the receivers Of the Metropolitan
Street Railway Company as to Ffty-ninth
street transfers from the United States
Court and turns the matter over to the
State courts. which alone. he says. have
Jurisdiction.
The Circuit Court Judge seems TO sx-
press an opinion as to the principle involved
adv verse to the Public Service Commission.
The decision says:
Tho receivers Of the Metropolitan Street
Railway Company have applied FOR further
instructions as to transfers.
They have carefully conformed to the
general instructions contained In opinion
filed october 3. 1907. to operate tho road In
accordance with the requirements OF iaw'
State and local. When they took possession
Of the property the Metropolitan company
was operating the Fifty ninth street orosstown
line under lease. The statutes OF the state
provide that In such case transfers should Dc
exchanged. and this was done. On August o.
1908. operation under the lease ceased ana
the line was returned to It's owner. an inde-
pendent corporation. No statute. ordinance
or regulation. State or local. required the
exchange Of transfers In such q case. and such
exchange was therefore terminated
Thereafter the Public Service Commission
issued an order to show cause why transfers
were not continued and why some Joint tarih
should not be established. with a resolution
requiring separate sooounts TO be kept for
thirty days. The receivers replied toNt
resolution Offering TO keep any accounts or
records which the commission might wish
They did not appear to show cause FOR reasons
set forth In an opinion Of this court. filed
June 10. 1908. az follows:
1T has been suggested that the Public
Service Commission under section 20 OF the
act which created 1t might require the road
to sell and honor these transfers. Whether
that section or any other one gives the Public
Service Commission power to compel TWO
Independent roads 10 exchange transfers Is
question Of State law. tho construction OF q
State statute which may more Appropriately
be left to the State courts In the event OF the
receiver being calledupo by the commission
to take and give such transfers he will fur
nish all the information Which he. as operator
Of the road. may be able 10 procure and he
will notify the owners and security holders OF
the sev everal roads now In his hands and will see
that they are given the opportunity TO present
whatever arguments they may wish to make
In opposition. In the ultimate analysis 1t 10
the owners OF and lenors on the property
whose interests would really be affected by
such a construction OF the statute. The Court
and It's recelveS are custodians merely and are
not concerned with It's future"
The commission has now made an order
requiring the receivers and the company
operating the FIT y-ninth street line to estsb-
lish through routes and put In force Joint
rate OF fare by the use OF transfers over their
In view Of the information now on record.
in this court as to the financial condition 9f
to the commission showing that Of twenty
millions OF passengers carried by the Fifty
ninth street line Gus Oysr Thirteen %o5s hods
to see how the operators Of the two roads can
succeed in agreeing upon joint rate OF the
~ The extent OF the authority of the com
mission under section 20 10 not exactly de-
since The new act has m po ys, been con
In which such construction might be secured
and and % ceoperate in every % way TO secure prompt
determination OF any questions presented.
The directors Of the Belt Line announced
yesterday that they are willing to follow
the order OF the Public Service Commits
ropolitan lines. Their proposal was that
each company should take half Of each
FIVE cent through fare. 1t is certain that
the Metropolitan system will not agree
to suoh a division because OF its greater
volume Of business. 1t Is understood that
some OF the commissioners do not consider
and the probability is that II 1t should
come to a point where the commission
would Ak the Joint rate, that rate would
not provide for an equal division.
The average haulage Of the Metropolitan
lines is much longer than that on the Fifty
ninth street route, there aye great diff
ferences in the fixed charges OF the two
companies and. as has BEEN demonstrated
comparatively little cash traffic on the
Fifty-ninth street road. All these facts
will be considered by the commissioners.
There is reason to believe that the Met
ropolitan reoeivers will .,Ie respond to ~ the
mission by expressing a willingness to
sell transfers to the Fifty-ninth street
route for an additional fare Of two or three
cents, which would be a similar arrange
ment to that which existed for several
and the elevated company. II is under
stood, however, that the Public Service
Commission would not listen to such
proposition. 1t is the purpose Of the COM
mission to insist on one joint rate OF five
cents.
The announcement was made yesterday
at the offices OF the commission that should
the companies come TO an agreement which
would involve the payment OF two or three
cents extra for transfer steps will be taken
to have a complaint lodged with the board
that the extra fare Is unreasonable. The
commission then will hold a public hearing
on such a complaint. will hold that the
complaint is justifable and will order that
the Joint rate shall not be more than Ave
cents. In the event Of this order not being
obeyed theprocedure which Is being mapped
out by the commission is to impose the
S5, 900 day penalty. and It will then be the
burden Of the Metropolitan receivers TO
prove In the courts that the order Of the
commission Is conhscatory.
Henry Thompson, counsel for the Belt
Line. said yesterday:
-We are willing to get together with the
Metropolitan receivers to agree on joint
rate that will allow the giving out OF trans
fers between the two lines. But we think
that It would be only fair that there should
be an equal division Of fares, that Is that
each company should be credited with ~
cents on each transfer We do not intend
to dispute the jurisdiction OF the commits
sion and we VIII obey the order issued on
Tuesday directing us and the Metropolitan
receivers to get together and agree upon
joint rate
DECLARE FOR LOCAL OPTION.
Texas Republicans Oppose Statewide Pro-