The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-08
BOARD
SAYS RAILROADS
CAN'T RAISE RATES
Asserts II Has No Power to
Allow Tariffs Above Legis-
laturc's Maximum.
APPEAL Is PROBABLE
TO HIGHEST COURTS

inc ulster ana delaware Nallroau 10
increase its mileage book rate from two
to three cents a mile. the upstate Pub
lie Service Commission made to-day one
Of it's most important statements OF
principle since the passage Of the Public
Service Commissions law IN 1907. The
majority Of the commission holds that.
Notwithstanding the broad rate making
powers granted by the Hughes statute
and its subsequent amendments. the com
mission has not the power to permit a
rate to be increased above a maximum
set by the legislature.
Chairman Van Santvoord In the pre-
vailing opinion. concurrcd In by Com
missioners Hobson and Irvine. points out
hat should the commission assume that
the power to permit such increases had
been delegated to " not only the mileage
boo law but such other statutes rs
the three cent maximum fare law. pos
sibiy even tho 80 cent gas law for New
York city and similar enactments. might
be In effect repealed by the commission
decisions. In an extended review OF all
the statutory sections involved Mr.. Van
6antvoord fails TO md that the COM
mission. either expressly or implicitly.
enjoys such power.
Two Conmissionsrs Dissent.
Commissioner Emmett and Commits
sioner Carr dissent. Mr.. Emmett holds
that had not the Legislature intended
TO taxa the rate p,aking power out OF
the "often bunGling" hands Of tho Legis-
lature n place IL for the exper de-
termination absolutely in the Jurisdic-
ton Of the commission the whole battle
Of Gov. Hughes for the regulation Of
nG1hln rftiltfipa would hAVa haan vain.
AZ the power to lower rates irrespective
Of legislative enactment liz expressly
granted liz the Public Service Commis-
sion law Mr.. Emmett finds that the
power to raise rates is implied be-
yond reasonable doubt. Were this
power to raise rates to AFFORD a reasona-
bic return on investment in accordance
with the facts disclosed In zach case
not implied. MIR. Emmett holds that the
intent of Gov Hughes and OF the Legis-
lature whic:, passed the law would have
been anything but the distribution Of
even handed justice to the railroads
Al well as to the public.
Tho direct question as 20 whether or
not the commission has the power to
raise rates In c~ontravent.on Of these
older statutes has never come up in this
State before. and the decision OF tho
commission to-day will undoubtedly be
ca FRIED to the court of asst resort for
final determination. Not only the Ulster
n Delaware Railroad Company but
every railroad conpan in the State
whose line are more than one hundrei
miles long and which has been incor-
porate1 since the passage of the mile
g book law or which has been formed
by consolidation since that date Of pre-
viously organized corporations and seus
regular ticlsets for over two cents Q
mile Is now limited to two cents a mile
for its mileage rate.
Decision on Missouri Law.
The Supreme Court OF Missouri. az
quoted in the opinion of Commissioner
Carr. has held that the Pubic Utility
Commission OF that State. by a statute
delegating to II the rate making power
in the same words as does the Hughes
law. was empowered to set aside the two
cent fare law OF that State. He holds
that h mileage book law of this State
IS in effect only a Legislative guide for
the railroads which come under II until
the rate which It prescribes can be
passed upon by the Public Service Com
mission.
The mileage book law was passed In
1895 and the commission holds that 1t
was not repealed when the Public Ser
vice Commission law was enacted in
1907. On the contrary II is pointed out
that when h Consolidated Laws were
enacted in 1910 the Public Service Com
mission law was made chapter IS OF the
consolidated Laws and the mileage book
law In its then precise form was made
chapter ~ OF the Consolidated Laws.
The chapter numbers at least indicate
that the mileage book law reenacted thus
subsequently, to the Public Service Com
mission law specifically escaped the Of.
feet OF the clause in the Public Service
Commission law repeating all other
statutes contrary to itself.
The mileage book law provides that
whenever a railroad over 100 miles in
lenSth sells regular tickets for moro
chan " cents q mile UP to the legal
maximum OF thres cents a mile II must
all mileage books at two cents a mile.
The Ulster me Delaware pleaded
through Lewis e. Carr and other counsel
that this was not a rate on which IL
could earn a fair return within the law
and pleaded for permission TO Increase
I'm rate to three cents a mile under the
general rate making powers OF the COM
mission. II wac opposed by the state
Council OF the United Commercial Tray.
eliers and by the municipal authorities
n civic bodies along the roads lines.
While the majority opinion seems TO
concur with the dissenting one In that
the railroad IN q basis of fair yeturn
IL entitled to an increase, II holds that
this power to Increase does no, extend
TO Increases above "A statutory maxi
mum.
Van snntvoord's Opinion.
Mr.. Van sartvoord In his opinion
sald:
ITO nx rates Is a purely legislative
function, the power 10 exercise witch is
not to be lightly ssuiped although ac-
tuated by whatsoever lofty motives in
the rounding out OF an ideal. While It
Is not 10 be denied that tire Legislature
has power 20 delegate such functions.
such delegation should lie in express
terms and not by Implication. or at
least by an Implication SO under!ablv
manifest as to BE- the substantial equiv
aiert OF express declaration.
"hs for the surRestion so gravelv
urged, that the commission ought 20
have the power Invoked, II might be
considered In point II we were discuss
ing the question OF what constitutes m
ideal regulative law In the abstract. But
the concrete question before US "a not
what the Legislature ought 10 have done
in formulating the Public Service Com
mission la" but what II actually has
dore and precisely how far Il has gone
In ~dtlegating certain OF its law making
functions to a regulative department.
TN deciding that question we are
no: TO Ia controlled by considerations
OF Iolicy, by general propositions IN
ethics or by accepted ideals In Law maxi
Ing. The scope and meaning OF a stat.
ute OF this kind II unfortunately lacking
- either the science of idoai humanity
AR mat nfhAr lind ~ Akl.- ~-Al-N -