Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-19
SETS INCREASE
OF RATES ASIDE
Utility Board Says Morristown.
Erie-LackaWanna Rates Un-
reasonable and Unjust.
From a stan Correspondent

lFTOm STAN COrreBpOndenf.1
TRENTON, N. j.. Aug. 19.-On the
ground that certain increases in
through rates on railroad travel be-
tween the Morristown and Erie Rail-
road Company and the Delaware,
Lackawanna and Western Railroad
Company and the LacKawanna S con-
nections are unreasonable and I'M
just, the Board of Public Utility
Commissioners today handed down a
decision setting aside the increased
rates. The increases were brought
about bv the cancellation of existing
through rates.
The petition in the case was filed
by the Morristown and Erie railroad,
McEwan Bros, Incorporated; the
United Box Board Company, the Nor
ris Sand Company and the Hanover
Brick Company. Besides the Lacka-
wanna, the following connections of
that road were made defendants:
Pennsylvania, Raritan river, Central
Railroad Company of New Jersey,
Northern Central railway Philadel-
phia, Baltimore and Washington,
Philadelphia and Reading. Lehigh
Valley, Lehigh and Hudson River and
the New York and Long Branch Rail-
road Company.
EOreshW 'COmDluhtloubs
The petition represented that as the
result of the cancellation of the
through rates there would result
combinations of local rates. which
would be unjust and discriminatory,
and that the result in rates would
work rreparable harm to the petit
TONERS, rendering traffic impossible
or Improbable. They asked that the
defendants be required to restore the
rates cancelled.
The respondents in their answer al
legged the revenue received from the
traffic interchanged with the Nor
ristown and Erie has long been I'M
remunerative, and in part returns less
than the cost for transportation, but
the Morristown and Erie refuses to
pay the regular per diem charges on
the equipment furnished by the
Lackawanna and refuses to accord
to the Lackawanna the proper divi-
sion of joint revenue.
The Lackawanna asked that the
petition be dismissed. Upon the is
sues thus raised the commission con-
Quoted hearings and testimony was
introduced by both parties Pending
the hearing the State commission is
sued an order suspending the ad-
Vances resulting from the cancella-
ton. This order is now made abso-
lutte.
d., L. and w. Asks for Relief.
The Lackawanna in cross petit
ton for relief asked that the divi-
sions of joint rates be fixed by the
board in the event that the joint
rates were set. This raised the ex-
pl;cit issue whether the boards power
embraces the compulsory appoint
ment of joint rates for interstate
h. r-pfi in q
carriers. The Utility Board finds that
the utility act does give it power to
fix joint rates.
It was urged at the hearing that
the grant to the board of the power
to fix Joint rates necessarily Implies
the collateral power of apportioning
the rate; that without the power to
apporton the power to fix the joint
rate would be nugatory because OF
the failure or refusal of a participat-
ing carrier to render the service for
an unknown or uncertain part OF the
Joint rates fixed.
1t was also urged that the boards
power under the utility act to order
such just and reasonable connection
as shall be necessary to promote the
convenience of shippers of property,
etc, implies not only power over the
physical property usually employed
at junction points, but extends to the
financial division of the joint earn
ings.
As to Divisions OF Joint Rates.
In the matter of divisions of joint
through rates between the Lacka-
wanna and the Morristown and Erie
the State board finds that the new
divisions proposed by the Lackawanna
are not equitable to the Morristown
and Erie.
In the matter of car hire equip
n1ent the board determines that the
present allowance made by the Nor
ristown and Erie of mileage at the
rate of six mills per mile on equip
ment furnished by the Lackawanna
is insufficient and negotiable.
The board recommends to both car
riers to adopt the modified system
of per diem payments and to apply il
IN settlement of pending claims.