Perth Amboy evening news., 1919-08-15
OPPOSES LOCAL
TROLLEY SCHEME
Sees Complications Under Mu-
ncipaI R. R. Regulation
PUBLIC UTIuTY's OPINION
Part of Investigation Now Be-
ing Held BY Committee In
Washington
By Special Correspondent.

~ special Correspondent.
TRENTON, Aug. 15.-Undesirable
complications would enSue, in the
opinion of the Public Utilities Com
mission, if each municipality were to
regulate the operation of trolley lines
within its jurisdiction. rather than a
state regulating body, according to the
gist of letter just made public here
by Alfred N. Barber, secretary of the
utility board. The communication was
sent to Charles e. Elmquist, chair
man of the Federal Electric Railways
Commission, in Spons to a request
from him for d discussion by the New
Jersey Commission o. certain phases
of the electric railway problem now
being Investigated by tho Federal
Commission at Washington.
The Elmquist letter had in mind
what is known as the cost of service
plan OF computing rates to be charg
ed. Under this plan the principal item
would be the agreed value of the plant
Ipon which the company would ex-
pect a return from its patrons in fares.
Many elements enter into such a valu
alton, nccessitating the knowledge of
expert engineers, and there is no oc-
casion for municipalities to keep con-
etantly employed experts with these
qualifications, says the letter of Sec
Ictary Barber on behalf of the New
Jersey Utility Commission. Blu there
- occasion for a State commission to
keep such experts permanently EN-
Sloyed on it's staff.
at would seem, therefore," said the
letter, that 1t would be unwise for
Gre public to be deprived Of the bene-
ct of the service which would come
from the cooperation of state COM
missions, and for the determination of
-alue to be merely a matter of agree
rlent between the municipality and
are railway company. \ 1t would GER
tdnly seem to be better for the value
to be fixed by the state commission
after a hearing and full opportunity
Afforded both the municipality and
Tie railway company to submit their
respective plans n al guments as to
valuation"
Because of the opinion generally
held hat municipal regulation of the
matters such as fares, securities, ex-
.ensionS Or service, was ineffective,
laws were passed providing for stale
commission regulation, and that to
trust entirely to municipal regulation
would be a step backward against the
interest of all concerned, s2ys the Jer-
say Board further.
"Even though q railway should OPP
crate exclusively within tho limits of
a single municipality" says the letter
also, land an agreement should he
entered into between the municipality
and the company that the slate should
be wiped clean of all. ordinance re
strictions, conditions and agreements
entered into in The past affecting th
company's charges or service; that q
service at cost plan should be ADOPT
ed which would result In h com
pany meeting operating costs and ID
the allowance of a reasonable pro1t;
sha: the municipality should have a"
taority to prescribe conditions OF ser
vice, fix rates and asi.borixo ISSUES o!
securities, the street railway cGm
and the municipality, being parties IN
interest, would be apt to di1er Will
respect to details. IN sucS cases cotI
alo municipality AID The street rail-
way would be benefftteG if thee VS.
State board vested with authority
70 investigate the matser and make
rulings which would be binding.
ut is true, as stated in your letter
that many of these utilities extend be-
yond the confines cs a single munich
pality. AS q matter of fact, outside
the very largest cities in the country
there are fes2, if AIRY, street railways
which operate exclusively within one
municipality. With a street railway
operating in a number of m~unicipali-
ties, and with each municipality vested
with authority to fix rates aid pre-
scribe conditions Of service, there
would be every prospect OF conflict
which would be against the interest
OF both the utility and the public, and
which would prevent the DEVELOPMENT
Of reasonable fare zones for service.
"It is the boards belief that no sci
entiic system of zone fares could be
developed for an electric rail way OPP
Grating through O. number of munich
palities, if the municipal boundary
lines mark the limits of zones. 1t
would seem that without state regula-
ton and with authority vested IN the
municipality to fix rates, and with each
municipality acting in IFS w interest
without regard to h interest of NIL
inequalities adjoirinS, undesirable
complications would ensue."