New-York tribune., 1912-02-23
FIGHT ON TRANSFER BILL
"GentIemen's Agreement" Leaks
Out at Albany Hearing.
TRANSIT LINES PROTEST
N. Y. Companies Thought Law
Was Not To Be Changed to
Their Disadvantage.
fBy Telegraph to The Tribune. J

BN IeieBTHpD 10 ne lIlpNh'l
Albany, Feb. 2.-The fact that the tran
sit companies In New York believed they
had a gentlemen agreement with Speak
er Wadsworth and other legislators and
representatives OF the lst District Public
Service Commission by which the law was
not 10 be changed TO their disadvantage
slipped out here to-day at a hearing before
! the Assembly Railroads Committee on the
Goldberg bill TO restore transfers in New
York City.
The gentlemen" who were particularly
mentioned as taking part In this agreement
were Speaker Wadsworth, Public Service
Commissioners Bassett, Assemblyman James
S. Parker, chairman of the Railroads Com
mittee: Mr. Semple. one Of the counsel Of
the lst District Public Service Commission,
and George W. Morgan and J. l. Quacken-
bush. attorneys for the railroad companies.
Mr.. Morgan let the cat out Of the bag
He seemed much offended because the pres
ent Legislature should dare not to con-
slider itself bound by the promise Of former
legislatures TO be nice To the railroads. In
his speech against the Goldberg bill he told
Of conferences which took place during the
passage of the consolidated laws. There
was al that time Qgl0) a section In the rail-
road law permitting railroad corporations
to make profit of 10 per cent before their
rates could be reduced by Legislative ac-
ton In the consolidation of the laws this
was changed and a section was put into
the Public Service Commissions law that
the railroads should earn reasonable"
profits.
Mr.. Morgan and the other railroad attor-
fI4u frnf
these conferences that this new phrasing
Of the law would never be construed to the
disadvantage of the railroads any more
than the old 10 per cent section had been
Mr. Morgan complained that this arrange
ment was 10 a degree "hamstrung by an
amendment OF last year." and now MI
Goldberg had come forward to do some
more "hamstringing." The bill of last year
referred TO was that of Senator White OF
schenectady. requiring that the earnings ol
a railroad should be computed only on the
basis OF the property actually In use.
Speaking of the amendment OF 1870 which
he looked upon as a guarantee that the
Legislature would protect the railroads.
Mr.. Morgan said:
II mistake not some OF the very Ian
guage which was Incorporated in TINS SeIy
provision was dictated at a conference ny
/ Mr. Wadsworth, then Speaker OF the rs
sembIy And now the passage Of tho Gold
berg bill would repudiate the ooHgaIoh
made between gentlemen AZ TINS collitl-
cnce. We had an absolute right 10 reIy on
tho representations made al that conleI
/ enc. We then had the right TO go back
and tell the corporations We represented
| that they could take money for investment
knowing that this promise would ne KEPT
| cannot therefore, believe that TINS com
mIttDe will tolerate any such injustice a.
! the passage OF this bill.
Nr. QLackenbush. in opposing the bill de-
clarrd that 10 time would be saved by Its
massage. a. the railroads would carry II
| into the courts just as they have taken
tho order OF the Public Scrvic" Commis-
sion restoring transfers. which the bil
seemingly would put into immediate opera
tion.
Tho only difference. he said. ls that now
IL "a before the courts on whit of
c.-,t,rari while n the commissions order
,s IN be enforced by a law. tho consitu-
tionalitv Of the act will be tested The
railroads will declare that It is unconstitu-
tional I'm that Il viii deprive them Of prop
erty without due process ot law. To this
Mr.. Goldberg replied:
That is Just what "" want We desire TO
sec whether tho railroads property would
te ,ounscated II my bill went into effect
In tho CertiorarI proceedings the railroads
have been avoiding this question because
they know that even with my oil IN eueCt
tbey would bc gtIll earning the dividends
allowed bv law. Therefore they could not
claim il deprived them OF property.
Mr.. Goldberg said that another benefit Of
cnacting his bill even II the railroads did
tak. il 10 the courts. would be the imme-
dIate putting into effect Of the Public Ser
yice commissions order OF the forcing Of
10 railroads 10 give rebate slips az was
dona while tho s0-cent gas law was tested