The sun., 1919-06-06
TRACTION LINES ACT
AGAIN TORAISE FARE
Move for q Reargument Of the
Quinby Case in Court
; Of Appeals.
SMITH FOR P. s. G. INQUIRY
Believes Data Should Be Col
lected for Basis Of Rene
dial Legislation.


terday in their fight to get increased
faros.
az Notice Of a motion for reargument
Of the Quinpy case, now held to be the
controlling authority on rate increases
for transit lines, was filed with the CoSrt
of Appeals and served on the up State
and New York city commissions.
(2) At the suggestion of Gov. Smith.
Joseph X. Choate. chairman Of the Com
mittee on Ways and Means to Obtain
Additional Revenue of the New York
State Electric Railways Association, sent
TO each Public Service Commission let
ter asking them to make an investiga-
ton OF the traction situation in their
respective districts with view to MAX
ing recommendations for corrective and
remedial legislation by the Legislature
OF 1920.
Commissioner Nixon said last night he
wished to consider the request more
carefully before deciding whether he
would order the desired investigation.
However. several times since his APP
pointment by Gov. Smith he has indi-
Gated his belief that something should
be done to prevent more traction re-
ceiverships. He has stated that he was
working on some plan which he hoped
would give relief. Under the Quinby
decision he has no statutory power to
increase rates. the Court of Appeals
holding in that case that the maximum
rate named in franchise could be in
creased only by the franchise power. In
the case of New York city that Is the
Board OF Estimate.
Nixon May Make Recommendation
Commissioner Nixon intimated yester-
day that he was considering making
some recommendation to the Board of
Estimate. II is understood, however.
that there Is little chance OF getting
that body to abandon its decision that no
increase In fare could be granted unless
the transit lines were willing to mako
concessions to tho public on their side
OF the bargain.
Both Mayor Hyian and Comptroller
Craig have Indicated that municipal
ownership would be q solution of the
difficulties II tho lines should all go
into the receivers hands It might be
possible to effect a reorganization, under
which the city could take them over ad-
vantageously.
William Randolph Hearst has long
been an advocate of municipal owner
ship. and Is said to see in the New
York city situation a great opportunity
to tast his theory. The Mayor, II is
understood, is quite inclined to agree
with his friend. Mr.. Hearst
As II takes twelve votes to act on
franchise matters in the Board Of Esti-
mate, no notifications could be made
without the six votes Of the Mayor and
the Controller.
II am absolutely in favor OF mu-
nicipal ownership Of all transit lines in
New York city," said Commissioner
hut iy1a 10
ripe for public acquisition of these prop
critics. In the fulness Of time the city
will become the owner of all public utili-
ties. There Is no other way out of
situation that Is becoming more and
more complex under private ownership"
Asked what his plans for immediate
relief OF the situation, Commissioner
Nixon replied:
ct am still studying both sides of the
proposition and shall take no definite
action until l am fully acquainted with
all details OF the matter. It is very
important question and many things
have to be considered before l can make
up my. mind whether to recommend to
the Board OF Estimate the increased fare
desired by the rapid transit companies.
AS you know. I am powerless to grant
the increase on my own authority. That
cannot be done without a modification
the Board OF Estimate alone has juris-
diction under the present laws
II do not intend to delay announcing
my attitude a day longer than Is neces-
sary."
Where Traction Hopes Lie.
II the Court Of Appeals should take
another view of the rate question on a
reargument 1t might give Commissioner
IL
In that case the traction lines OF the
city of Rochester applied to the upstate
Commission for permission to increase
their fare from five to six cents. Henry
D. Quinby. Comptroller of the city, rep
resenting that municipality, applied for
a writ of prohibition TO prevent the COM
mission from considering the question
on the ground that II could not change
the terms OF a municipal franchise. The
case was generally conceded to be so i'm
portant that 1t was hurried to the Court
of Appeals, where the New York State
Railways Association, the New York
Railways through James L. Quacken-
BUSH the city of New York and the
Public Service Commission of this dis
trict interviewed.
The Court of Appeals by a vote of
four to two granted the writ OF pro-
hibition holding that the Public Ser
vice Ildu no power 10 CnhIBc
the terms OF municipal transit fran
chise.'
Three months later the South Glens
Falls gas case was decided by the Court
of Appeals Under II that company was
permitted to increase its rate from s1.25
10 $50. although by its franchise the
former figure was fixed as a maximum
rate. While the grant of power by the
Legislature 10 insert a rate provision
in a gas franchise is given by a special
law rather than by the State Constitu-
tlon and tho cases were not exactly on
all fours for that reason. traction law
yers felt that the reasoning in the South
Glens Falls case showed a somewhat
different attitude on the entire rate
subject on the part OF the Court OF
Appeals. Since then they have been
looking for an opportunity to reargue
the Quinby case.
Choate's Letter TO Governor.
In his letter to Gov. Smith, which Mr..
Choate made public yesterday. he said
81 part:
THE courts of this and other States
have declared in unmistakable language
that the regulation OF rates OF public
utilities is a part of the police power
Of the State and resides with the sover-
eign Legislature unless It is delegated
In unmlstakable language. In conse-
quence and because OF the imperfections
Of the Jurisdiction the Public Service
Commissions are without sufficient power