The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-03
'P.S. COMMISSION SEEKS POWER
WOULD DEPRIVE RAILROADS
or APPEAL TO THE COURTS.
II Cou,d Enforce General Transfers and
supervise Financing n II We're Not
for the Unfortunate Right Of the
lOmpanips to Have Ob jcct ions Heard.


supervise Financing n II We're Not
for the Unfortunate Right Of the
Companies to Have oh jccti ions Heard
The Public Service Commission has re.
piled to the resolution adopted by the
Senate on Friday asking the board tc
explain why IL had not insisted on the
surface lines Of this city exchanging
transfers and asking further il the com.
mission needed more authority to compe
the companies to issue transfers. The
commission explained that in 1908 it did
make order on two Of the companies
for the exchange of transfers. but that
the receivers of the companies immedi-
atcly obtained from the Supreme Court
a writ to review the proceedings by GER
tiorari The commission contcnded that
the order it had made was not renewable
by certorari. but the Appellate Division
and the Court Of Appeals held to the
contrary. Because o: these decisions
the commission did no. make any further
effort to enforce its order.
The commission went on to say that
there were two great difficulties in the
way Of making it's orders effective 40 far
as the transfer question was concerned
These are. first. the right Of review by
certiorari of the proceedings of the com
miss ion by the courts. The right OF rev lew
Is not one that is available against an act
OF the Legislature establishing "A rate and
II is submitted that the action OF a COM
mission in fixing rate by authority OF a
power delegated TO 1t by the Legislature
should not be renewable by certiorari.
II NAV be pointed out that no such right is
available in the Federal courts as to an
order OF the Interstate Commerce Com
mission.
The second difficulty Is that under the
recent decision Of the Appellate Division
in the Third Avenue reorganization pro-
ceedings there Is an apparent lack Of any
jurisdiction over the issuance of stocks and
bonds OF reorganized companies similar
TO the jurisdiction Of the commission a. to
such securities OF other companies. The
commission asked and obtained leave TO
appeal TO the Court Of Appeals for II be-
lieves that on such an important question
tho opinion Of the highest court is des irable
While the commission contends that the
securities OF reorRanized companies are
subject to regulation. nevertheless IL de-
sires 10 point ont TO the Senate that should
the decision OF the Appellate Division be
sustained the rcorgani2ations could he made
effective before the next session OF the
Legislature. up to the amount OF the secnri-
ties heretofore issued. In view of the over.
capitalization and financial manipulat ion
that existed prior 10 the reCeiverships il
il submitted that II l. an important aues-
tion for consideration whether securitie
OF a new company arising from a reorgani7a-
ton should not be subjected TO the same
approval as is required OF companies which
have not gone into the hands of receivers
Whatever the final determination OF the
Court OF Appeals may be. II ia suggested
that the approval OF securities growing on,
OF REORGANIZATION should be made the sub
iect OF explicit statutory provisions and not
left to judicial construction.
The commission accordingly. in response
10 this request OF the Senate. respectfully
suggests TO the Senate its conside rat ion n,
this session OF an amendment 10 the public
service commissions law prohibiting the
riRh, OF review by certiorari OF the determi-
nations OF the commission fixing rates or
ser> ice OF public service corporations, and
an amendment TO section ~ Of the stoc X
corporation law establishing beyond doubt
that securities issued upon reorsanizati ton
must be submitted for the approval! of the
Public Service Commission as provided by
the public service commissions Law for
securities OF other railroads and street
railroads.