The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-19
THE PUBLIC SERVICE COM.
MISSION.
what Shsuld Be It's Place and Power
Under Q Revised Constitution?

passed the state Of experimentation
n has become a permanent fixture
In u present form OF State govern
ment. That, at least. Is the opinion
held by a large proportion Of our fell
low citizens.
II hat is true, because OF the ire
Public Service Commission. those bod
les should properly be made constitu-
tional bodies. In the case OF New
York State the Public Service Com
missions have jurisdiction over public
utilities representing billions Of dol
lars OF invested capital. There is no
constitutional Office at the present
time that Is Of greater importance,
so far as its duties to the citizens Is
concerned. than our two Public Ser
vice Commissions.
II would be unreasonable, however,
10 clothe these commissions with all
the power Of a court OF last resort.
because OF the far reaching impor-
lance Of their orders and decisions TO
investors and the citizens at large
when II 10 the question OF reg
ulation Of rates. For this reason II is
obviously OF the utmost importance
that in the Constitutional Convention
not only should the two Public Service
Commissions be made constitutional
bodies. but judicial review OF the com
missions decisions as - the regula-
ton OF the rates Of utilities should be
made as complete and exhaustive as
possible.
The Legislature delegated 10 the
Public Service Commissions the func-
ton OF rate regulation. This function
should not be disturbed but should be
left exclusively with the commissions.
As 10 importance, IL is the only func-
ton which the Public Service Com
mission exercises. II the exercise Of
that function Is to be the subject OF
interference on the part OF the Leg
stature then there Is little excuse for
the further existence OF the commits
slons. such interference Is tanta-
mount TO saying that the commissions
are not TO be trusted. nor are they
capable Of properly exercising the rate
regulation function without threat or
coercion on the part OF the Legis.a-
ture. II hat is the case. then why
should the taxpayers support the two
Members OF the Assembly are
elected for M year and State Sena-
tors for d term OF two years, while
Public Service Commissioners are APP
pointed for a term Of FIVE years. Each
OF our ten Public Service Comm!s-
sloners receives an annual salary of
SIS. 200. The commissioners are Sc
lected because OF their peculiar fitness
for tire duties that devOlve upon them:
regulation OF the rates n ervices
Of utilities. II IS not 10 be presumed
or assumed hat STATE Senators and
Assembiymen are chosen by their con-
stituents because they have any pecu-
Lar qualifications for. or have they
had any experience in, the adjustment
OF the rates 70 be charged BY public
utilities a; large.
II Is 10 argue against the whole
theory Of public service regulations
TO Va that vesting the function OF
rate regulation exclusively in commits
s!ons Is depriv!ng the Legislature of
a pJwer which II should retain. II
the Legislature is better qualified TO
regulate rates than the commissions.
then the Legislature itself should ex-
ercise that function absolutely.
II IL j. TO be done honestly. con-
sc!entlously ard fairly. the regulation
Of rates between the public and the
utilities companies involves a careful.
consideration Of the various elements
which enter into the consideration O.
the subject. the principal once being
the value OF the property devoted TO
the public service. the cost Of render
ing the service, including a fair return
on the value Of the utility's assets
devoted TO the public service.
S~O-called experts" are prolific who
always stand ready 10 give a street
corner decision as 10 the value OF any
given property. II retained by a legis-
lat!ve committee. To this class OF
experts a real investigation is a
waste OF time. Their opinions are
easily adapted T. the wishes OF the
employing committee.
During the life OF the two Public
Service Commissions in this State. ten
years. many rate cases have been de-
c!ded and nom of these cases have
been reviewed by the courts. The
commissions rave had ample oppor-
tunity 20 fam!liar!ze themselves with
the circumstances and conditions
under which the business Of utilities
IS conducted, but have been in a posi-
ton to more accurately diagnose pub
lie sentiment in respect to the quail
.ty Of the services rendered and the
rates charged.
They have been in a position TO dlf-
ferent!ate between complaints inspired
.or personal or political purposes and
those based upon a general public
sentiment. whether misguided or
otherwise. Hearings held on COM
plants have enabled the commissions
10 form a better impression OF the
actual local sentiment than could ever
be gathered by a legislative commit
tee sitting at Albany.
II is better for the public and better
for the Legislature hat members OF
the latter should be IN a position 10
direct their constituents 10 duly con-
stituted commissions. vested with
proper authority b hear their COM
plants and adjudicate them in an or
derby buslnesslike manner. free from
prejudice and outside influences.
The regulation OF rates is tanta-
mount 10 the regulation OF earnings,
and a reduction In rates is In
effect a taking Of property without
compensation, and while il may be a
legal taking, 1t is reasonable to expect
that. at least, such safeguards will be
thrown around the act as are pro-