Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-07-13

and must be considered separately and by
itself. 1t Is Of no assistance to the com
mission ia such a matter to CONTEND tnal
the law will take into consideration only
those rates that exceed the ameuht neaS
tofore decided to be within the Ia" as la
as single fare passenger rates are con-
cerned. IL 1t shall be c~ontended DnaL Ihe
commission. although 1t has ample 1uIls-
djction over the subject of commutatlon
rates. has. nevertheless, determined al
ready the standard of the charge. or the
rule by which II will be guided IN uIuSI-
taking an Investigation into tne enasse ~
passenger traffic, and that Il has decided
that when a rate comes withfn the iniina-
tons say, of practically two cents a mllS,
the Commission will not Interfere, Such
contention would be manifestly unfair,
because the subject matter OF TINS o1sputS
is a passenger traffic OF an entirety dat-
ferent nature from the ofdlnsIy passsn Sc
rate. The rates here under discussion are
In the nature OF street railway passenger
rates, and these rates have been anuss-
taken by the railroad company ana lrain S
has been offered under these rates OWLS
to the special inducements held out by tne
railroads and in order to build up their
business and to increase their genera
freight. traffic and other business by Duil1-
ing up the suburban communities surround
ing the city of New York, on these rates
as a foundation.
Affects Thousands of Persons Daily.
Half the population of the greatest city
In the world goes to and from JUS uailS
WORK on THESE IdllIOl1 N-hA VI
rates. This aft amounts to about "a
million persons daily. This great city OF
Now York is builded upon a long. narrow
ringe of rock, extending for some ten or
nfteen miles in a north and south dlrec-
ton and is almost entirely surrounded Ply
water. This land has been. completeiy
covered by q compact mass of tronpounu,
rock-rooted, towering buildings, deyoteo
entirely to the conduct of a whole nation 5
business. Every floor In every one 81
these buildings. reaching up into the ar
from ten to forty stories each, 10 niieo
with busy offices, humming with lie ana
excitement, and the busy and anxious aeI
tivities of men burdened with i1nanclal
and business responsibilities.
At night, when railroad trat1c IS ae-
voted to this in particular, and wnen tn nus
weary mass of humanity aeeks a place
of refuge and rest from. the exhausting
cares of the day. it is obliged, OF. neceS-
sity. TO pour itself out from this con-
centrated' heated and compact centre of
trade and commerce across the surround
ing rivers and harbors to the adjoining
suburban districts, and the homes OF these
people almost literally cover the whole
district lying adjacent to the city, OF Ne"
York within a radius Of fifty miles.
To permit the railways TO charge any
thing they like within the conventional 2
cent \ mile rate for such traffic as TINS
would produce an income SO enormous as
to practically double the whole passenger
traffic income of the Lackawanna road and
would bring about a condition OF pros
dreams Of the Lackawanna stockholders.
So that fhe further we examine into
the question the more clearly 1t appears
that this Is the very kind of traffic In
tended by the statute for the consideration
n control of the commission. The rate
under consideration Is a general rate,
offered to everyone alike. and the question
Is whether under all the circumstances OF
this peculiar traffic and the Length OF time
these rates have been established and the
conditions which have grown up around
Thorn and the communities bnilded upon
them. a general increase should now be
permitted.
va oiofpo TINT. those r1fpS are cle1TlX
within the Jurisdiction and authority Of
this commission, as IN any other general
and in this case, where the change Is so
funda mental and far-reaching and of such
a disturbing nature. the commission vii.
Investigate end REQUIRE a justihcation CT
ths same before 1t will permit them TO be-
come operative. It is necessary for an
original Investigation to determine both
the fairness of the rate and the elements
by which that fairness may be determined.
The question Of the cost of transporta-
ton. the regularity of the traffic. Its
amount. present facilities. earnings of the
comnany. incidental profits accruing by
rea son of the passenser raffic. conditions
rnder which the rules were established.
etc. must he Investigated before the com
mission viii be In y position to Understand
the Question III, vo y &c smd Whe6ner , the
fnaliv. whether the increase may be justi-
fcd.
cornrniSsicn that the earnines of the Lack
awanna rriiroad COMPANY. which pro-
poses 70 make tl7ese Increases In rates,
was for the year 1904 large enough to per-
NIT 4 conservative dividend on its carithl
stock over and above all charges OF II
per cent.
Lncknwnnnn Dividends.
In 1905 It Maid out to its stockholders IN
IT paid In dividends on It's then capital
stock 20 per cent. and In 1907 20 per cent.
as.'n .na nh II NJ as'S 20 per cent. r sgain' s snd
dends were declared not only above fixed
CHARGES and q rea sonable reserve to be
s1aed to the surplus snr Sr,n but II 'n ADDITION sr TO
paid out Of their earnings. In 1909 the
comranv declared its regular dividend OF
70 ~ per Extra rsnt cash oh dividend tbsn 'o Of 20 T per cent'.
with a privilege to the stockholders of
reinvesting 25 per cent. In the stock OF
a new coal company. organized to take
over the railroad company's holdings,
which now stock sold at the time on the
New York Stock Exchange ut 1920 a share.
that wear issued Is per cent. stock divi-
dend of the railroad companv's stock.
which was selling upon the New York
Stock Exchange above $3.50 q share. The
total dividend for 1909. therefore, amount
ed to 1874 per cent. or more in real money.
In this wear Of orr Lord 1910 the Lacka-
wanna Railroad Company proposes to In
crea Sc the chnrre Of the Communication rate
for 200.0 n workers using its road Of neees-
sit-- from n n 90 per cent.
Now such fncts as are suggested above are
not conclusive and are open to exnlana-
tion, but this commission is obviously not
yet sufficiently informed to be able to
quickly pass over so important a matter
as is now pretended by the proposition to
Increase these Communication rates. An IN
te1ligent discussion of the inequalities and
discrinrina tons in the proposed rates them
selves will require a careful study and
consideration by IN impartial tribunal.
The method by which the railroad COM
many attempts to charge up against these
fares. expenses and obligations which
might upon consideration be found to he
otherwise chargeable is another mntter
for careful consideration. Competition.
terminal facilities and many other items
should he added TO the general discussion
cannot be hastily decided on mere ssser-
tion or contradiction, Proper evidence
must be accumulated and presented to the
commission.
Take Time to Decide.
In behalf. therefore,, of the Commuters
League Of New Jersey. the petitioner In
the petition of Terry Parker against the
L~ackawanna Railroad Company respect
fully prays that this commission will enter
upon an investigation OF the proposed In
crease in Communication rates on the rail-
roads running from New Jersey suburban
points to the city of New York in order
to determine the fairness OF the proposed
increased passenger rates, involving as 1t
does the welfare Of such a vast number
of people, and affecting as 1t does the
property values Of so large a territory
surrounding the city OF New York. and to