Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-20
[ACKAWANNA AND
ERIE RATES TOBE
TESTED IN COURT
Utility Board Charges Railroads
Have Taken Advantage of
a Technical Decision.
Especial to the Newark star.I

Especial 10 the Newark Star.I
TRENTON. Dec 2O.-The Board of
Public Utility Commissioners has de-
clded to initiate further proceedings
. against the Erie and Lackawanna
railroads, charging them with dis
examination in refusing to sell COM
mutation tickets from inland points
to their terminals in North Jersey.
The Court of Errors and Appeals has
already passed upon the Communication
ticket question, but the Erie and
Lackawanna roads claimed exemp
ton from the commission's order di-
recting the issuance of such tickets
on the ground that the order did not
apply to those roads.
The commission today issued a
memorandum outlining its plan of ac-
ton. The memorandum in part says:
1.-THE board believed that the Erie
and the Lackawanna were furnishing
Communication service to Jersey City
and Hobolzen respectively, and were
consequently subject to the order re-
curing the quoting of rates and the
selling of tickets to and from these
places.
THE record of the original investi-
cation seemed to us fully to substan-
tate this opinion.
"On the face of the record 1t ap-
peared to the board that the subse-
quent allegation by the carriers that
they did not furnish communication SER
vice to Jersey City or Hoboken could
not be regarded otherwise than as a
technical evasion, controverting a fact
which had previously been admitted
by their own witnesses. The board
Z proceeded with it's consideration and
analysis of rates with a view to an
nouncing its finding. At that time
the board had not received an analy
sis of the financial and other data
submitted by the companies, which
analysis was being made for the board
by expert accountants especially en-
pioyed for this purpose. The analysis
of these accountants made evident
that additional testimony, particularly
a comparison of communication rates
on other roads leading to New York,
ought to be introduced before a final
conclusion was reached. This fact,
combined with the doubt suggested
eby the opinion of the Court of Errors
and the companies action hereunder
causes the board to take such action
as is indicated in the close of this
memorandum.
Took Advantage of Decision.
THE Erie and the Lackawanna have
taken advantage of the decision rem
dered by the Court of Errors and APP
peals. They have withdrawn the COM
mutation tickets sold to the Hudson
river terminals and cancelled the rates
applicable to these points.
Evidently since the companies
withdrawal of their tickets and sched-
uies there is no existing commuta-
ton rate between the various interior
points and Jersey City or Hoboken,
except as the New York rate may be
held applicable. There is no intra-
estate communication rate to these
points upon which an order of the
board can at present operate.
To Charge Discrimination.
1T will be necessary, therefore, in
conformity with the opinion rendered
by the Court of Errors and Appeals,
to bring specific proceedings against
these carriers, charging each with
undue and unjust discrimination, by
reason of the failure of each to quote
rates and sell tickets to these points.
Should the carriers practise be found
TO be Illegal and discriminatory, an
order requiring the quoting of rates
and the selling of tickets may be en-
tered Should such rates, by reason
IF such determination, become exist
ing rates. there will again be pre-
scented the opportunity to pass on
their reasonableness and justice. ThE
whole process, briefly put, is that the
companies have utilized the opinion
of the Court of Errors and Appeals
to render necessary further proceed
ings on the part of this board to de-
termine whether each company falls
within the scope of the original or
der of the board in the premises. I'm
til this new proceeding has been had.
and determination Hereunder
reached, it is impossible for the board
to pass upon the central issue in the
present investigation, to wit, the rea-
condolences and justice of charging
the same Communication rates to Hud-
son river terminals as the two car
riers charge to New York city. The
: formal upholding of the boards order
by the decision of the Court of Err
rors and Appeals has not resulted in
making the order specifically effect
i've as against the two companies in
question, each of which, by the terms
of the decision, is entitled to have the
specific charge made against 1t, to
wit, that it Is practising unjust dis
elimination, and until each has had
an opportunity to defend itself
against such charge.
THE board has instructed it's coun-
sci to initiate further proceedings as
speedily as possible in order that the
preliminary question indicated by the
Court of Errors and Appeals shall be
brought before this board for deter
mination."