Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-06-22

forfeiture of the said lease in Ease of
violation thereof
ION the oath day of February, 1893
the New York, Susquehanna and West
crn Railroad Company executed and
delivered to the Erie Company a lease
drawn in pursuance of this act, and is
now In possession Of the property an>
tracks described in this lease.
1.-THE rate which the Erie Grad. &C
cording to its filed schedule, proposes
shortly to impose upon us patrons, is
a rate which apparently increases the
rate charged by it and the New York.
Susquehanna and Western Railroad
Company at the time when the act OF
1898 and the lease above referred to be-
came operative. If this be true, the
new rate is a specific violation of the
act which authorized the making OF the
lease. If the legislative consent was
necessary to the making of the lease,
then the legislature could lawfully i'm
pose the condition above referred to.
I'm a formal proceeding now pending
before the State Railroad Commission
(Which does not relate, however, to the
change In Communication rates) the Erie
Railroad has insisted that the lease au-
thorized by the act of 1898 Is no Longer
operative, and that there has been nc
merger of the Erie with the New York,
Susquehanna and Western Railroad
Company. The Railroad Commission Is
investigating this claim"
"If as a result of the investigation II
should be determined that a lease is II
fact still outstanding, authorized by
the act of 1898, or that there a e
a merger of the two roads, I shall al
once, by the direction of the Governor
file an information in the Court OF
Chancery, which will pray for an in
junction as against the Erie compan!
in it's effort to put into effect the new
and increased charge for passenger
traffic.
"It viii be observed that the issue
thus raised does not involve the ques-
ton as to whether in this instance the
rate is reasonable or unreasonable
The relief to be sought in the informa-
ton is predicated upon the theory that
the lease by which the Erie is now in
possession Of the property of the New
York, Susquehanna and Western rail-
road was only possible by Legislative
consent, and that If that consent inn
posed as a condition the implied. If not
expressed, promise upon he part OF
the lessee not to increase its rates. that
promise must be kept, and If violated,
the State will seek its enforcement.
",This statement is made after con
ference with the Governor. He has
assured me OF his cooperation in my
plan. and also of his entire willingness
to pay from the emergency fund what
ever expense may be involved in the
employment of experts and the meet
ing of other charges. This upon the
theory that the State rather than in
dividuals and municipalities Should
bear the burden of all necessary lltlga-
ton"
Talk of the State authorities apply
ing to the Court of Chancery for an
injunction restraining the railroads
from putting into effect their increased
schedules Is now regarded as non
sensical. In order for an injunction to
hold It would be necessary to show
that the proposed increases are un-
reasonable, and 1t is doubtful il that
could be accomplished in the face OF
the statute that allows the railroads tc
charge a three-cent-a-mile rate. The
State courts would not go behind that
law in a proceeding of this character.
Communication Has Latitude.
The Federal commission. so far as
the railroad issue is concerned, is giver
more latitude. 1t may or nay not take
cognizance of the statute. The Fedora
commission has absolute power to de-
termine the reasonableness of the rate
question and car put the burden o.
proof upon the railroads to show thai
the increases they propose are just
and are warranted. Once held up, the
railroads annot increase their rate.
without the consent of the Fedora
commission.
The State Railroad Commission, by
resolution, instructed the attorney
general to make the formal complaint,
against the railroads and forward then
to the Interstate Commerce Commits
sion. The action is taken under sec
ton IL of the act of Congress-thi
railroad law-which became effectiv,
last Saturday. So far as the interstat,
complaints are concerned the railroad
commission will continue it's hearing
at Trenton on Friday morning. With
out additional legislative power, how
ever, the State commission can dt
nothing further than investigate ant
recommend.
Attorney-Genera Wilson has prom
Used to make a statement this after
moo covering the entire subject. Be
fore the State officials decided upoi
their curse they talked over the long
distance telephone with Attorney-Gen
eral Wickersham. who is the lega
guide for the Federal commission.
The organized commuters repre-
~sentatives will call upon Governor For
at the State House on Friday. Tn,
conference was arranged for today b,
Howard B. Marshall, president of tn,
Commuters League of New Jersey
The governor expects by that time t.
be in a position to tell the commuter.
hat the railroads have been restrained
from increasing their rates. for tht