New-York tribune., 1919-07-17
Court Victory for Trolley
System Declared to Have
Little Effect on Con.
troversy i'll This City
Liberal Tendency Is Seen
Disposition Shown by Courts
to Give Public Service
Commission Wider Power

Terence farley, chlef counsel of the
Public Service Comimssi says that
the victory of the upstate trolley COM
panies in the Court of Appeals decision,
which in effect ruled that the com
panes are not bound by contracts with
cities to a scent fare, has little bear
ing on the fight of the local elevated
and subway companies to obtain more
money for a ride, except that it shows
q disposition on the part of the courts
to give the Public Service Commission
wider powers than it was generally
supposed it enjoyed
"The decision of the Court of Ap-
peals in the action brought by the Inter
national Railway Company, of Buffalo,
looking to an increased fare, which it
apparently has won, can have no bear
ing on the great bulk of traffic carried
ybythe subway and elevated lines in this
city under the franchises, contracts and
agreements between the companies and
the city," said Mr.. Farley.
New York Not Affected
"An amendment to the constitution
in 1874 provides that the municipal au-
thorities have the power to regulate
the terms of the franchise with refer
ence to fares. In other words, the state
grants a franchise, but the local au-
thorities fix the terms.
This is known to the courts as con-
stitutional consent. Under this consti-
tutional provision the railroads have
been operating since 1874. The courts
have held that the Public Service Com
mission could not interfere with the
constitutional consent terms under
which companies organized since 1874
have been operating. For the companies
organized and operating prior to 1874
the case is different
To use concrete illustrations: The
old Broadway surface line from the
Battery to Fifty ninth Street. was
an old system, organized before 1874
Since that date this system has built
various extensions. The scent fare
would prevail on the old system, but
the Public Service Commission. under
the latest decision, would have power
on the extension of the old system.
The same rule would hold in the case
of the old Brooklyn City Railroad,
operating prior to 1874, and with many
extensions since that date. The dis
position of the court, as indicated by
the words of Justice Cardoza, is to
give the Public Service Commission
question of rates.
Will Sign Transfer Order
Mr.. Farley was in conference yes
terday with Governor Smith at the
Bltmore, before the Governor left for
Albany in the afternoon.
1t is understood that Commissioner
Nixon will within day or two sign
the order framed by the Public Service
Commission in conference with the
surface lines in Manhattan authoriz-
ing an extra 2 cents for a transfer
at ninety points. The order was pre-
pared this week and forwarded to
resort. He said last week that he
would sign the order as soon as it
could be put in shape.
Corporation Counsel William P
Burr, when asked yesterday concern
Ing the Court of Appeals decision ir
the Buffalo case, said:
Commission as Delegate
"The railways of Buffalo operated
under what is known as the Milburn
agreement between the city and the
railways, and in that agreement it was
provided, in Article x, that nothing ir
this contract contained shall be con
strued to prevent the Legislature from
regulating fares of said companies,
and it seems to me from the partia
accounts published in the newspapers
that the Court of Appeals holds thai
the Public Service Commission is {
delegate of the Legislature and ha!
power under the conditions in the Buf
falo contract to regulate the fares il
that city up or down.
II have seen nothing to indicate tina
the Court of Appeals has reversed it,
decision in the Quimby case, given
year ago. In that case the court helt
that the Public Service Commission
had no power to change or alter the
fare fixed in franchise contracts made
between cities and companies undel
the constitutional provision which re
quires, before a railway company car
1t must obtain the consent Of the loca
authorities"
Calls 1t Inevitable Step
Ex-Justice William l.. Ransom, for
merly chief counsel for the Public
Service Commission for the 1st Dis
trict, now trial counsel for the Con
solidated Gas Company in it's pending
equity suit, said yesterday:
THE unanimous decision of the New
York Court of Appeals is a step tow
ard the inevitable. The principal ma
terials purchased by gas and transpor
tation companies have increased il
price more than $50 per cent durin,
the last five years. The increase il
labor costs has been similar.
"The fares upon the subway, ele
waited and surface lines and the rate
for gas and other public utility service
must of necessity be increased II
New York City the increase has beer
long deferred. l have not yet seer
the whole opinion Of the Court of Ap
peals, but the published extracts leav
no doubt of the courts disposition t.
construe narrowly its previous ruling
in the Quinby or Rochester case an'
to give broad recognition to the powe
and duty of the Public Service com
missions TO increase and lower rate
from time 10 time, as may be ncces
sary to keep them just and reasonable
and 70 prevent their being left eithe
too high or too low.
"The present decision has nothin,
at all TO do with gas rates in New
York City, which arc limited b.
statute, and the Court Of Appeals ha
held the Public Service Commission
has not power 10 increase gas rate
limited by statute"
~. Y. Carfare Increase
To 7L2 Gents Suggested