New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-03
P. S. c. ANSWERS SENATE
Explains Attitude Regarding Ad-
ditiOnaI Transfers.
ASKS THAT LAW BE AMENDED
Contends That Various Court
Rulings Hindered the Com
mission in It's Work

The Public Service Commission has sent
to the State Senate a letter In response 10
a resolution asking for information as 10
what the commission has done toward Sc
curing additional transfers between street
RAILWAYS The commission reviews the
history of the transfer system in Manhat-
tan from the time the Metropolitan Street
Railway system went into tho hands OF
receivers. in September 1907. with the
subsequent separation OF various lines from
the system by the federal courts.
Prior TO 1910. according to the letter. the
courts had held In numerous decisions
that the companies were entitled to rea-
sonable return upon the present value or
the property I'm use. hut In that year the
Legislature provided that the commission
must have due regard for permitting n
reasonable return upon capital actually
expended.' The commission had caused
eprraisals TO he made of the value OF the
property of various companies, but the
anne, dment I'm question caused the com
mission TO pause In this work
II regards the new rule especially I'M
rortant I'm view Of the recent decision OF
the Appellate Division In PROCEEDINGS 10
review the action of the commission deny
ing the application for the approval OF t"e
plan of the bondholders committee to re-
organize the Third Avenue Railroad sys-
tenn The commission says:
"In that case the bondholders' commit
tee asked approval of the issuance of Sc
curities making the total amount OF oph-
cations nearly s70000.00. The commission
found by its appraisal that the value oil
the property to he represented by secu'i-
ties vas about 100000 The court ap-
parently holds that the commission must
approve Of the plan Of reorganization II
the necessary statutory steps have oeeh
taken, and is without power to limit the
amount OF securities TO the value OF the
property"
Under such circumstances the coinhlS-
sion Is Of the opinion that II becomes IN
creasingly difficult TO make an order whi'h
has the effect of reducing a rate II the
company Is entitled to fair return upon
these securities"
Attention is called to the order unner
which the Central Park Company and tho
NetropoIitan receivers made an agreement
for transfers at s and 10 cents for SIN
months ending June 20. and ii is hoped the
asce7taiument of the net results may yield
facts that will he useful i'm the future.
Reference is also made 10 the general
hearing to be held on July 6. at the re-
quest OF the Board Of Aldermen, to In
oure into the transfer situation.
Tho senate asked for recommendations
FOR additional legislation. and the com
mission points out that the facts Just sum
married indicate two such needs. The let
ter continues:
The right of review by ccrtiorari Is NOT
one that IS available against an act OF the
Legislature establishing rate. ana II Is
submitted that the action Of 4 commission
i'm fixing a rate Ly authority Of a power
delegated to it by the Legislature should
not be renewable ny certiorari. II may
he pointed out that no such right is avail
able I'm the federal courts as 10 an order
Of the Interstate Commerce Commission.
The second difficulty IS that under the
recent decision of the Appellate Division
in the Thrill Avenue reorganization pro-
ceedings there Is an apparent lack OF any
Jurisdiction Of the commission as to such
securities OF other companies. The com
mission asked and obtained leave TO ap-
peal TO the Court of Appeals, for II be-
leves that on such an important question
the opinion OF the highest court is desira-
BILE"
The commission recommends an amend
ment TO the Public Service Commissions
law prohibiting the right of review by Ger
torari If any determination by the com
mission fixing the rates or service Of pub
lie service corporations, and also an
amendment 10 section 10 of the stock cor
poration law establishing beyond doubt
that securities Of companies that are re-
organized must he approved by the com
mission