Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-30
USURPATIoN HERE AT HOME

USURPATlON HERE AT HOME
ISURpATION of power by the Public
- Service Commission, as revealed by Colo
mel McCains article on the seven cent fare
decision should not go unchallenged
The commission was created to supervise
and regulate the public service companies of
the state. The limits within which that
regulation and supervision are to be eSer-
ciscd are clearly defined and the processes
through which the power of the commission
is to be exercised are fixed in the statute
The commission in ordering a seven cent
fare for the +. X. 4. in this city has gone
beyond the limits fixed by law and has ig-
nored its own practice previously from the
day of its creation.
The +. X. T. asked for authority to
charge a uniform fare of five cents for every
passenger and for the abolition of free trans
fers and three cent exchange tickets. A
hearing was held. The law declares that
lat any such hearing involving any proposed
increase in any rate the burden of proof to
show that such increased rate is just and
reasonable shall be upon the public Scrrice
cOmpdny.' the assumption being that unless
the public service company can prove that
the increased rate is necessary the old rates
shall prevail. and that if the company es-
ltUIISUpS lIS case tllp rates 1Or Wnlcn II asks
shall be approved.
The Public Service Commission, after
hearing the reasons for the proposed change
in the rate of fare asked by the p. r. r.,
ignored the arguments as though the law
did not require it to let the old rates stand
unless the petitioring company made out a
case for the new rates, and it acted as though
it had authority on its own initiative to fix
new rate.
II the Public Service Commission has the
authority to come into Philadelphia and
arbitrarily fix the street car rates over tho
heads not only of the rapid transit company
but in absolute disregard of rate contract
between the transit company and the city,
then it has the power to so into any city
or county in the stat" and arbitrarily fix
the price of any service provided by any
public service company 1t can out of hand
increase the price of gas here or anywhere
1t can raise or lower the telephone rates or
the price for electric lights. without any
regard to the estimates of the needs of the
service made by its managers.
The Public Service Commission thus would
become the super manager for every public
service corporation within the common
wealth.
And If what has been done is to stand
this super manager is to be allowed to reach
its decisions regardless Of the evidence sub
mitted to II. The statement issued on Oc-
tober 10. setting forth the decision in favor
of seven cent fare announced that hear
ings had been held and that IA very careful
investigation Of the matter was made by the
bureau of engineering Of the Public Service
Commission. The pvidcnc" submitted by
the +. r. T. showed that the five cent fare
would serve its needs at the present time
Although the report of DR.. Snow. the head
OF the bureau of engineering. has not been
made public, 1t is understood on the best
authority that 1t showed that five cent
fare would produce $1,000 more annual
revenue than a straight seven cent fare.
With four tickets sold for twenty five cents,
the straight five cent fare would produce
great deal more than $40, 900 in excess of
the returns to be anticipated under the rate
fixed by the commission. Yet the commits
sion ordered the seven cent rate on the
| ground that the p. II. II needed more rev
| cnuc and the five e-Cent fare would not pro-
| duCc enough.
II is the opinion of able lawyers that the
| commission has power only to approyc or
| disapprOve proposed change in rates, and
| they cite In support of this view the pro-
vision of the law that the burden Of nroof
| in support of an increase in rates rests upon
| the petitioning company. The theory Of the
| law is that the managers of the COMPANY
| are to assume the responsibility Of operating
| their business and to decide, subject to the
| approval Of the commission, how much money
| they need to carry it on. The commission
| must decide in accordance with the merits
of the case as presented in public hearings
There is indisputablc evidence that the
| commission did not base its action on the
merits of the case at all. 1t ignored the
| evidence of the u. Il. II. and 1t disrega rded
| the report of it's own engineer. 1t Is being
| said on the street that seven cent fare
was ordered for its effect upon transit com
| panies in other cities where there is a fare
controversy.
If the =. r. r. does not appeal TO the
| courts for the protection of its rights il will
not be for lack of grave provocation. And
| il it does not have the moral backing of
every other public service corporation in the
state it will be because those managers do
| not appreciate the peril that overhangs them
An appeal to the courts would not neces-
| sarily involve suspension by supersedeas
| of the collection Of the seven cent fare, which
would invite immediate disaster for +. X. #
| Collection OF the higher rate could continue
until the Public Service Commission Is or.