The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-13
SERVICE BOARD ASKS
RATE MAKING POWER
Bill TO Set Aside Statutes and
Agreements Drawn for
Legislature.
Is NOW UNABLE TO AID
Awards of War Labor Board
Also Tend to Increase Utili-
ties Operating Charges.
Is NOW UNABLE TO AID


ALBANY. Jan 12.-Amendments en-
powering the Public Service Commissions
10 hx gas, electric and railway rates re-
gardless OF statutes and agreements fix
ing n maximum are urged in the report
o; the up State Public Service Commas
sion. which will be transmitted to the
Legislature tomorrow night The re-
port Is signed by Chairman Charles p.
Hill and Commissioners Thomas F. Fem
nell John A. Barhite, Frank Irvine and
Jerome l.. Cheney.
Dealing exhaustively with recent court
decisions, many of which have been t.
the effect that where gas, electric or
railway rate is fixed by statute or agree
mont between the corporation and III
municipality, the commission points out
that under present conditions 1t Is
without power to determine the adequacy
or inadequacy Of rates, unable to relieve
either the public or the corporation.
The report also deals with the question
OF Federal control. pointing out that in
the past the admins ration Of public
service corporations by the commission
had been satisfactory, but that at pres
ent the exercise OF superseding powers
by the Federal War Labor Board has
tended to interfere greatly with its ad-
ministrative work.
PowcrIess TO Onset Increases.
The war bureaus have granted in
creases In wages and materials TO the
corporations and the question Of the rea-
soma bleness of rates under the new con-
ditions inevitably has arisen The Pub
lie Service Commissions law does not
vest the commission with power to deal
with situations arising from such circum-
stances and amendments to cover this
defect also are urged
Summarizing the rate problems which
confront the public service commissions
the report points to the recent decision
Of the Court of Appeals in the Rochester
Railway fare case. Here the corporation
applied to the Public Service Commission
for authority to increase its rate of fare
from to cents. There was in eX-
istence a franchise agreement between
the corporation and the city OF Rochester
limiting the fare to > cents. The city
enjoined the Public Service Commission
from determining the application. When
the case reached the Court of Appeals
this tribunal held that in view OF the
franchise agreement the commission was
without authority TO determine whether
or not the return to the corporation un-
der the ) cent fare was reasonable. Ar
amendment should be passed by the
Legislature to enable the commission to
handle case of this character, the re-
port says.
Another example OF the inadequacy OF
the powers vested in the commission &c
deal with changed conditions. the report
points out, is found in the case of the
Municipal Gas Company of Albany. The
company recently raised its rate for gas
from 81 to s1.3O, alleging that under the
dollar rate ii could not obtain reason
able return upon its investment. The
rate was fixed at 81 thousand cubic
feet by a legislative act of 1907.
Changes Barred by statute.
The commission has been obliged &c
dismiss the complaint of the company
without investigating to determine the
Justice Of its application for an increase
The Court of Appeals. to which the case
was carried, held although the statute
IN question preCludes the commission
from any mower to increase the rate be
yond the statutory limit, the Supreme
Court has power to determine whether
or not the STATUTE ullutl CIldllSt'i 'lItulIl'
stances is unconstitutional. The law
should be amended SO as to permit thc
commission to deal with a case OF thi:
character the report declares.
The report also urged amendments
which would enable the commission tC
compel reparatior by corporations where
an overcharge is made. This power /!
now possessed by the Interstate Com
Inerce Commission and should he a func
ton OF every regulating body. the repor
says
Other defects in the law prohibit tn,
commission from restraining corpora
tons which furnish lighting and tele
phone service from increasing their rate
on thirty days notice, as well as pre-
vent the commission from compelling
utility corporations to set aside certail
amounts Of money in a depreciation re
serve by which the expense Of improve
ments and requirements should be borne