New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-14
NO NEW TRANSLATE
RAILROAD TO Be BUILT
Buffalo, Rochester & Easterh'S
Application Rejected by Pub
lie Service Commission.
CENTRAL'S SERVICE AMPLE
Canal, Too, Would Be Serious
Rival, Opinion Says, and the
Line Would Be Bankrupt
from Outset.

Albany Aug. 13.-gOr the second time the
Public Service Commission, I'd District.
has denied the application Of the Buffalo
Rochester q Eastern Railroad Company
for certificate Of public convenience and
necessity and 70. permission to construct
a steam railroad across the state between
Buffalo and Troy. The decision was by the
unanimous vote Of The commission and will
be made public Tomorrow.
The commission passed adversely on a
previous application on March Is. 1909, and
the following year an application for a re-
hearing was made and granted. The
grounds Of derial on the rehearing are as
fellows:
]. That a reasonable and fair estimate
Of the cost Of the railroad proposed TO be
constructed by the applicant IL not less
than NO0o00.O00.
. That the principal purpose proposed
10 De served by the proposed road is the
convenience of through freight across the
state Of New York, received at Buffalo
and the Niagara frontier from points west
Of Buffalo and received at Troy from points
east OF Troy. That part Of the purpose
or the saiG road IL tine serving Of tho local.
ties through which the road would pass
between the cities Of Buffalo and Troy in
the carriage Of freight and passengers. but
that II is not estimated or claimed by the
applicant that the receipts therefrom would
amount TO more than practically one-tenth
OF the total receipts Of the road.
8. That the existing railroad facilities
Tor the carriage of through freight and
passengers across the State Of New York
afforded by the various railroads engaged
IN that service are now adequate for exist
ing business. and in the Judgment Of the
commission. based upon the record OF this
case and present general knowledge, the
service and facilities which can he fur
nished by said existing railroads will be
adequate for increase In such business
during a reasonable future period.
4. That the facilities afforded by the OK
isting railroads for the accommodation OF
local freight and passenger business across
the state Of New York along and I'm the
vicinity OF the line OF the proposed road
listing business. That the construction OF the
proposed road would be a greater Conven-
ience 10 those communities through which il
would pass which are nearer 10 It's proposed
line than 70 the lines Of existing railroads
than are such lines Of existing railroads
but that such greater convenience is not
enough 10 make the proposed road as
whole a public necessity.
Bankrupt from the Outset.
5. That the business which could be
obtained by the proposed road II IL were
constructed would not he sufficient 70 pay
operating expenses and reasonable return
upon the capital invested in such cOnstruc-
ton, and that the road. by reason OF It's
lIdDll'N 10 procure Nlll'ieUl TeIluIfl dl4N-
business, would necessarily he bankrupt
from the outset
6. That the applicant has failed 20 show
financial ability. resources and connections
sufficient 20 justify the belief that u could
construct IFS proposed road
=. That upon all Of the facts shown by
the evidence taken the commission IL un-
able 70 find that the said proposed road Is
a public convenience and necessity.
The opinion of the commission has been
prepared by Chairman Stevens and sum
mary follows:
r Is pointed out that the determination
reached hv the commission must depend
upon the facts found by II, accordingly,
tho new evidence adduced upon the rehear-
ing Is exhaustivelv considered for the pur-
pose Of ascertaining whether such evidence
warrants any reversal 81 the findings Of the
commission upon It's former denial Of the
application. II is shown that the reasons
urged by the applicant for the granting Of
the application are inadequacy Of existing
facilities 70 meet present de--1nds Of bust
ness within the territory 10 he served by
the proposed road. the necessity for an ex-
tension Of railroad facilities 70 communities
not now possessing such facilities and the
necessity for providing for a growth Of
business. especially in trafic in grain and
other products OF the Northwest seekinGan
outlet through the State Of New York 10
reach New England. the seaboard. In its
orinion in the former decision the com
mission said.
II IS fair and Just statement that the
real purpose Of the applicant company is
to construct a line the chief business or
which would be 10 move 70 the east freight
originating at or west Of Buffalo and 10
move 10 the west freight originating az or
east OF Troy.
This statement was not challenged by the
applicant upon the rehearng. but the COM
mission Celebrates with detail the evidence
iustifying this statement and quotes from
the brief Of the applicant, showing that the
applicant itself admits that 70 be success
ful road it must earn gross S12,142,S50 an
rually and that Of this amount so. 1850
must be earned by the carriage Of through
freight that Is freight received by it from
carriers bringing II 70 Buffalo from the
West and from carriers bringing 1t 20 Troy
from the East
Oo.e Not Tan Grand Trunk