Perth Amboy evening news., 1920-08-18
WILL CONSIDER
RATE INCREASE
Public Utility Board Hears
Railroads Application for
Fare Advance in This State

TRENTON, Aug. 1S.-The public
utility board has taken under ad-
visement the request of the railroads
of the state for approval of their
proposed intra-state rate increases
as allowed for Interstate commerce.
The Interstate rates are effective on
Thursday, of next week, August 26.
and the roads are hoping that the
utility board will hand down its sane
ton to the same increases within
New Jersey in time to make them eff
fective simultaneously with the in
ter-state increases.
Henry w. Bike, speaking for the
roads and the Pennsylvania, which he
represented in particular, declared
that congress had laid down the new
policy of treatment for the roads in
its recent legislation and that this
was followed by the increases allow
ed by the Interstate. Commerce
Commission. He declared the state
should cooperate in the administra-
ton of this new policy.
1T is a question whether I'M
proved service is preferred to a
cheap and inadequate service" de-
clared the lawyer before the utility
board.
Former Senator Charles NJ. Egan,
Of the Jersey City law department,
asked about the discrimination
against people who want to go to
Jersey City from points within the
state and are compelled to buy a
ticket carrying them over to New
York. He wanted to know whether
the roads intend to take this into
consideration and change this prac-
tice.
There is to be a twenty per cent.
increase on all fares as now charg-
ed" was the answer of the railroad
representative.
A similar complaint was hear
from former Assemblyman James
Russell Carrow. on behalf of the
South Jersey Commuters League.
THE association in demonstrating
against the proposed increases in
passenger fares within the State of
New Jersey" said Carrow. desires
to place itself IN record as not pro-
essary t increase the wages of rail-
road employees. 1t does protest
against granting further revenue to
the United Railroads of New Jer-
sey, paying its 10 per cent. dividends.
the Central railroad paying 8 per
cent. dividends, the Delaware. Lack
awanna & Western Railroad paying
it's 20 per cent. dividends, the Read
ing company paying 8 per cent. divi-
dends and the Delaware and Hudson
Railroad paying 9 per cent. divi-
dends. Because high finance in
Wall street has brought many of the
railroads of the country on the verge
of bankruptcy is not a valid reason
why the communities of New Jersey
should be compelled to pay exorbi-
| . ant fnroe - fhafr railroad danlQr r.
ing from s to 20 per cent. dividends.
Nor will 1t do to answer that un-
der the railroad bill recently passed
by congress that these prosperous
New Jersey roads must pool their
earnings with the weaker railroads
with which they may be grouped.
mo one as yet has been able to say
how thai can be done. The highest
legal authorities in the country have
declared this plan cannot stand the
test of the courts. 1t is common re-
port that the attorney general Of
the United States, who passed on tbs
constitutionality of this act. did SC
under great pressure and privately
questioned its legality"
Counsel for the railroads further
told the utility board that Pennsyl-
vania, Maryland. and Virginia have
already approved the increases. The
New Jersey board was asked tc
waive its usual rule of twenty days
notice in rate increases and require
only five days in this instance SO thai
they may become effective on August
&c, il approved.
Never having required the COM
panies to file their freight rate tariffs
with it, the utility board was told
the companies now deem it unnec-
essary to present them showing the
increases as allowed by the Inter
State Commerce Commission.