New-York tribune., 1909-05-31
EXPLAINS HIS VETOES
.NR. HUGHES COMES HERE.
Railroad Bill Might Hare PreUented
Two-Cent Rate Order, He Says.
ERy Telegraph to Tho Tribune. ]


Albany, May sa-Before going TO New York this
evening for the Memorial Day observances to-mor-
row Governor Hughes completed memoranda on
various bills vetoed By him last night, when hs
ceased signing thirty-day measures
Concerning the veto Of the bill relative TO the
consolidated railroad laws, the Governor says the
measure could not have been signed without run
ming the risk of makng serious and inadvtsaole
change in the railroad Law relative TO rates Of fare
and freight charges Had the bill become Law, it
would have practically made il Impossible For the
Public Service Commission to order 2-cent fare on
any railroad in this state, because it re-enactAd
section of the old railroad law prohibiting change
in rates below 3 cents 4 mile unless the profits or
the corporation exceeded 10 per cent a year IN the
capital actually expended. provision that hah
been frpHedly repealed by the Public Service COM
missions law, which provides that all charges must
he "tust ard reasonable"
The inclusion OF this provision" says the Gov
ernor in the consolidated statute is important
only es ii provides rule fo- the future. And such
a rule is clearly inadvisable The criterion or rates
and charges should be whether they are Just ana
reasonable, and whenever any question arises 4s
to this point opportunity should be afforded for
fair and impartial examination as provided unner
the Public Service commissions law A rule that
there should be change IN rates ana charses
unless It leaves the corporation net income Oh AZ
per cent upon the capital actually expended "oulu
in many cases clearly unjust to the public ire
Quently large part OF the capital expended is rep
resented by bonds bearing a rate of interest unner
per cent, and a rule that would give the com
panv a ne; annual income Of 10 per cent upon the
capital expended might be found 10 provide l. OF
Il per cent for returns upon stock investment
The policy defined in the Public Service COM
missions law providing for due inquiry to ascer-
tain what rates under the various circumstances
OF particular cases really just and ressonsDis
should be maintained
In view OF the fact that this bill was disapproVeo
the Governor says he deemed it best 10 disapproVe
the Public Service Commission consolidated Jaws
bill until they can be together incorporated IN the
consolidated statutes.
The Governor refused sign an amendment TO
the Public Service lew relative the issuance OF
stocks bonds and other forms Of Indebtedness
making considerable changes in the commissions
powers In that regard, because 1T Is deemed pref
erabIe TO refer the matter to the LEGISLATURE for
their consideration In the light OF the recommenda-
tions Of the Public Service Commission
The Governors handling OF the three platoon bill
sor hrSt and second class cities vas much 10 the
point.
TT Is simply question OF local government
said he. land I unable TO see upon What srouHo
the state should undertake TO dictate TO the ihu-
nicipalty the manner in which its police IoTce
should be divided for tours of duty. As said last
year I do not deal with the merits OF the three
platoon system. but simply with the question as 10
the authority under which such a chnnse. II ue-
sirable, should be effected"
The Phillips bill providing for the issuance OF
said presented an important departure which had
received the approval OF public spirited students
OF corporate problems but it technically
defective instead Of being worked out I'm an en-
rirelv practicable way leave question OF
It's results Also il Was opposed by the Controller
f,acarlye ne believed II could be adjusted in
q suitable Tsy t. the present plan OF annual
franchise assessment" The better way Of hand
ling that situation, the Governor thought. to
parfect the plan and 20 provide for such adjust
ments as may be necessary" before the bill
approved
Apart from the grounds urged by labor unions
Grattan bill. which would permit insurance COM
panies 10 issue policies at reduced rates TO such
organiza tons Governor Hughes says the bill has
a most important bearing. In effect. he says, II
Introduces a definition OF Industrial Insurance
as involving either weekly monthly payment OF
premiums. I'm view of other provisions OF law
bearing upon Industrial insurance" says the Gov
ernor such a definition should not re adopted by
= phrase appearing in an amendment OF this sort.
The Lewis bill dealing with the organization
and continuance Of the board OF veterinary medt-
limitation OF the appointing power 70 persons noni
mated hy private organizations
The Governor vetoed two bills permitting tho |
Of assessments against ST Nalachys
Catholic church. in Brooklyn and the Catholic I.
Church Of Corpus Christi, In Mauhat ttau. because
general bill affecting all such enacted this
year, under which these two churches might find
relief and the special laws applying TO them
would be unnecessary.