Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-08-03
UTILITIES BOARD
WILL NOT RATIFY
TUNNEL COMPACT
Pennsylvania Railroad Will Have
to Operate Terminal With
out States Consent.
[specIal 10 the Newark star.l

- @N0sF
TRENTON. Aug. 3-The petition of
the Pennsylvania Railroad Company to
the Board of Utility Commissioners re-
questing the commission to ratify the
agreement entered into between the
railroad company and the Pennsylvania
Tunnel and Terminal Railroad COM
pany, whereby the railroad company
was TO operate the tunnel properties,
has been refused on the ground that
the commission believes that it has no
authority in the premises. The refusal
of the commission not to ratify the
agreement, 1t is understood. VIII not
interfere with the putting into effect OF
the agreement entered into by the com-
panies whereby the tunnel properties
are to be operated.
The petition was filed by the Tunnel
and Terminal Company and sets forth
that the Pennsylvania, New York and
Long Island Railroad Company was or
ganized in 1902 for the purpose OF oper-
ating the tunnel between New York
and New Jersey. It also recited that
the ines and routes of the several rail-
roads formed a continuous line from a
point In Hudson county under the Hud-
son river and through the borough OF
Manhattan to u connection with the
tracks of the Long Island company. In
the borough Of Queens. 1t showed fur
Their that on June 6, 1907, a consolida-
t1ti agreement was entered into be-
tween the companies under which all
their property was to be transferred to
and vested in the consolidated corpora
ton. This agreement was filed in both
the. States Of New York and New Jer-
sey.
Cannot Get stoclkhoiders' Consent.
1t was also shown that upon the COM
pletion Of the system 1t was contem.
plated that 1t should form q part of
the system of the Pennsylvania Rail-
road Company, which promoted It's con-
struction and financed the entire ven
ture. The expectation was that the
tunnel railroads should be operated by
the Pennsylvania company under a
1ong-term lease. In order TO effectuate
this lease 1t would be necessary to OBJ
tain the consent of the stockholders of
the Pennsylvania Railroad Company,
which. according to the petition, could
only be done at an annual meeting of
the company. The next meeting will
not be held until March, 1911.
Attached to the petition was a draft
of the proposed agreement between the
Pennsylvania Tunnel and Terminal
Railroad Company and the Pennsyl-
wants Railroad Company providing
that the latter should take over all the
property of the tunnel company. as
agent, for a period of ten months, be-
ginning August 1. This agreement has
already been approved by the Public
Service Commission of New York fol
h first district. and to avoid possible
complications the Pennsylvania Rail-
road Company sought q similar APP
prevail from the New Jersey commits
SIGN.
Reasons for Refusal.
In giving It's reasons for refusing the
request the commission pointed out
that under chapter 29s of the laws of
1910 the Pennsylvania Tunnel and Ter
minal Company was given leave to
lease its franchises and property to the
Pennsylvania Railroad Company for
suc:a time and upon such terms and
conditions as should be agreed upon
between the companies and embodied
in the contract of lease. The lease,
however, was not to become effective
Until approved by the holders of at
sleast two-thirds of the capital stock of
4 the Pennsylvania Tunnel and Terminal
Raiiroad Company, nor until the lease
hal been approved by the Board of
Public Utility Commissioners.
Under chapter Al OF sthe laws of last
wiuter It Is provided that no lease of
T%rorerty. rights and franchises by n
public utility shall be valid until ap.
proved by the Board of Public Utility
Commissioners. Both statutes provide
for a lease. but say nothing about IN
operating agreement.