New-York tribune., 1918-01-13
Measure Prevents Corpora
tions From Valuing
Old Property
Review Plan Changed
Opponents Of Companies Can
Appeal Under New
Provisions
staff CorvespondenceI


ALBANY, Jan. 12.-Drastic changes
in the Public Service Commissions law
arc provided for in the second Of the
two bills introduced by Senator George
+. Thompson, of Niagara The first of
these bills is similar to the one intro
duced by Senator Thompson during
last session. The second, the result,
like the first. of the labors Of the
Thompson committee which invcsti-
gated the Public Service Commissions
and public utilities corporations in
1916 and 1917. was drafted too late
to be introduced at the 1917 session
Of the Legislature.
This second bill contains a "iokcr
Of The first magnitude. The "ioker''
is not on the state or the public, but
on the public Utilities corporations. 1t
is hidden in the word ''neccssarily, F"
in line 10 Of Section 42a. This Sec
ton. in part, reads:
"Rues to be observed in fixing rates: In
determining and fixing rates, as defined by
Subdivision l6 Of Article , of this chap
ter to be charged by public service COM
of any service thereby. there shal only be
considered by whatever authority such
rates shall be fixed or determined: Nl The
actual cost of operating and maintaining
the property necessarily employed III rem
dcring safe and adeQuntc service. plus co
such an allowance by way OF compensation
will provide :, reasonable average return
upon the value Of the property necessarily
employed in rendering such service. plus
Ca an allowance for contingencies Where
and to the cXtcat the commission shall find
necessary
Thompson Admits "Jokcr"
The phrase "thc property necessarily
employed in rendering such service
corporation lawyers declare, would
have to be interpreted by the courts
Senator Thompson admitted as much
ana said that the intent of the phrase
is to prevent obsolete machinery and
real estate purchased solely as an in
vcstment from being included in the
items considered in arriving at the
value of a conpany's property.
The bill specifically provides that
neither franchises nor the capitaliza
tioN Of a company or its outstanding
stock or bonds shall be considered in
computing the value OF a Company s
property. gThc lill also changes the
theory of review AS the law stands
at present only corporations have the
right to review the finding Of public
service commission. And there are five
avenues o.. rcVew open to the corpora
tlons. The opponent Of The corpora
ton cannot appeal.
Under the proposed act either party
may have the right of review, but only
on questions of law or on facts which
We're not substantiated by evidence be-
fore the Pupic Service Commission.
Bill Now Full of Holes
Senator Thompson SAID that the pres
ent law, which was signed By Charles
Evans Hughes, us filled with hole.
through which the corporations drive (
coach -and-four whenever 1t suits theil
convenience"
At the last session the first Of tho
Thompson Committee bills-thc onl,
one introduced WAS defeated. 1t pro
vded for singlc-headed commission
of seven members, as the present bill
provides. The chairman is to be elect
ed by the people, and the other six ap
pointed by the Governor with the con
sent Of the Senate, as at present Th,
office of the commission is to be at AL
bany.