Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-06-03
Newark Leads in Battle
Against ExtOrtiOn by
Corporations.
BOARD OF TRADE MEETS
TO DISCUSS SITUATION
President Taft May Be Appealed
To and Extra Session of
Legislature Called to Act.

A Statewide war is to be waged
against the proposed increase in rail-
road rates.
AS a result of a conference today be-
tween George F. Reeve, president OF
the Board of Trade; Abraham Roths-
child, chairman of the committee on
transportation, and Secretary James
NJ Reilly it was decided to call a
meeting of the transportation commits
tee of the board for Tuesday after-
noon to take under adyisement the pro-
posed increase of rates between New
ark and New York.
In Jersey City today George L.
Record in a strong statement urged
Jersey commuters to ask the Governor
to call special session of the Legisla-
ture to deal with the situation or to
appeal to the President if necessary.
War has already been declared in the
other towns of northern New Jersey.
Suburban municipalities are now
thoroughly aroused over the proposed
action of the railroads and feeling
against the action of the corporations
runs high. Already Boonton and Hack
ensack commuters have retained coun-
sci to fight the increase. The East Or
ange Council has laid the foundation
for an independent legal battle to test
the right of the Lackawanna railroad
arbitrarily TO increase its passenger
rates Announcement is made that the
township committee in Belleville Will
be urged to take up the fight against
the Erie railroad. Plans are being
made for a great mass-meeting in
Commonwealth Hail. East Orange, on
the night OF June II. to fight the in
/ creases.
George L. Record wants the con-
muters of New Jersey to urge Gov
ernor Fort to call special session or
the Legislature to deal with the in
creases in fares by the railroads. In
statement issued today in Jersey City
the former corporation counsel and
New Idea leader also wants the people
of the State to appeal to President Taft
| for relief He suggests that the New
ark Board of Trade to take the initiative
by calling a Statewide meeting of pro-
test The statement is as follows:
There is general and angry pro-
test on the part of the committing pub
lie in New Jersey against the proposed
increases of passenger committing rates
TO New York which have been filed by
the railroads. These proposed increases
in my Judgment are not only unjust
! and unreasonable, but can be made
! Illegal.
Take the increase by the Lacka-
wanna, for, example. Here is road
whose income is so vast that from
time to time. after paying as high y
dividend as 1t dares, it is compelled to
| disburse in one form or another the
! cash which accumulates In it's treasury
and for which it has no legitimate use.
Last year it carried $5,000,000 of these
excess earnings to the account of the
| surplus, which surplus account already
contained $34,000000 in cash. 1t appro-
priated other huge sums to repairs and
betterments. 1t paid stock dividend
of Is per cent, its usual cash dividend
of 20 per cent, and then had S16,0o00Oo
left in its treasury, which 1T disbursed
as an extra dividend. It's stock is sold
in the market at 5000, par $50.
''Under these circumstances any in
crease of rates by this road amounts to
! plain robbery of the people dependent
upon its service. The increase of rates
by this road as we'll as by the other
roads In my Judgment can be absolute-
ly prevented by proper organized effort.
| ! suggest the IOlioWiHS pan.
Let the Newark Board of Trade call
public meeting to be held In Newark
! Let invitations be sent to all of the
| different boards of trade, Improvement
associations or other organizations of
! commuters in the principal communi-
ties along the line of the railroads rum
ming out of Jersey City and Hoboken
| through New Jersey. requesting the
! said organizations to send delegates to
| said meeting Let the following pro-
gram be adopted
LET a special committee be appoint-
/ ed to proceed to Washington and ap-
peal to the President and the attorneys
| general to bring a suit enjoining these
| railroads from putting into operation
their proposed increased rates. Exact
lv the same ground for this action ex-
lists as in the Western freight rate
cases. upon which the attorney gem
eral by direction of the President, OBJ
tanned his injunction order on Tuesday,
The cases are exactly parallel
LET another committee be appointed
to wait upon the Governor and demand
that he invoke the full power OF the
state to prevent these rates from going
into effect There are two powerful
remedies which he can apply. He can
have the attorney-general bring action
on behalf of the State to establish tho
fact that the rates proposed to be
charged are unreasonable. am in
clined to think that the public utility
act passed at the last Legislature con-
tains clause which could be inter-
preted by our courts as vesting IN tna
railroad commission a power to TX
rates They are vested with general
power by that act to compel railroads
to discharge their obligations to the
public. and one of these obligations Is
to charge a reasonable rate.
'srhe other power. however. which