New-York tribune., 1920-09-14
Roads Contest
States Refusal
OF Fare Raise
Ask That I. C.. C.. Regulate
Intrastate as w ell as
the Interstate Passenger
Rates; Becomes Test Case
SO Cents a Mile Sought
Rail Companies A Assert
Lines Face Loss of Mill
lions i'm Ticket Process

Whether the Interstate Commerce
Commission shall be allowed to regu-
late railroad passenger fares within
states as we'll as between, states was
the issue of test case of nationwide
Importance, the preliminary stage of
which began yesterday before Special
Examiner Wilbur La Roe, of the COM
mission, at II East Thirty-sixth Street
Representatives Of leading railroads,
whose companies operate intrastate and
interstate passenger trains within and
through New York State, testified that
the New York Public Service Commits
sion refuses to allow passenger rates
on state hau.s to conform with inter-
state rates recently increased by au-
thority of the Federal commission. The
roads ask fiat increase Of six-tenths
Of a cent mile and question the right
of New York State authorities to die
tate tariffs. The prevailing intrastate
rate is cents.
Says Roads Face Big Loss
L. V. Porter, assistant comptroller of
tn New York Central Lines, testified
that passengers could defeat the Inter-
state Commerce Commission s ruling
for increased interstate rates by mere
ly buying TICKETS from New York to
Buffalo and then repurchasing tickets
at Buffalo for Cleveland, Chicago or
elsewhere. He estimated that New
York railroads expect to lose between
sl1,0OO,OO0 and $12,O0O,O0O in revenues
through this process of ticket manipu
lation.
Aside from the purely local aspect
of the case, however, the hearing de-
veloped that the Supreme Court of the
United States eventually will be called
upon to decide jurisdiction regarding
intrastate rates. Examiner La Roe's
report of the local hearing to the In
terstate Commerce Commission will al
low that body to decide whether it de-
sires to assume intrastate rate regula-
ton along with its interstate jurisdic-
ton. If the commission decides it has
this right, test in the courts will fol-
low, and the Supreme Court-the court
of last resort-will render the irrevo-
cable decision.
Ask 3.6 Cents Mile
1t developed in yesterdays hearing
that since 1853 New York statutes have
decreed rate of 2 cents a mile for all
wav passenger trips between New YorK
aud Albany. The railroads later raised
this rate to PIT, and when the roads
were taken under Federal control dur
ing the World War the rate was jumped
to 3 cents. When released from Federal
control it was provided that Federal
rates should not apply after Septem-
ber /. 1920. Three United States judges
in New York City subsequently held
that the old 2-cent rate was restored
State Sup, eme Court Justice Hinman
later held, at Albany, that the New
York State Legislature must decide. In
the meantime the roads continue to
troll and now petition the Interstate
Commerce Commission to make intra-
state rates conform with interstate
rates, at 3.6 cents a mile.
Former Judge Ledyard P. Hale, rep
resenting the Public Service Commits
sion, contended that the sovereign
right of the State of New York to fix
rates must not be challenged, anu
quoted from the Federal Constitution
to Justify the states authority in til,
matter.
State May Take Appeal
Representatives Of the various rail
roads and civic bodies present at the
hearing interpreted this to mean the'
the state will fight the case direct t,
the Supreme Court should the Inter
state Commerce Commission decide (
assume jurisdiction.
Various witnesses for the railroads
pointed out that roads running into
New York, though traversing a number
of states, were in different position
than those roads which traverse almos
the entire length of the state before
they enter or leave the metropolis
Roads between New York City and Al
bany and Buffalo were the most dis
criminated against by the peculiar rat,
mix-up, they said. 1t was pointed ou
that these routes handle the great ma
jority of all passenger traffic.
While passenger rates were mainly
discussed before Examiner La Roe, i
also was pointed out that freight cost
shippers considerably more merely be
cause they may live across state line
On the other hand, neighbor, livins
just within the New York line reap,