Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-04-08

we'll as street railway companies. 'Jnclc
Dave is Interested in it because It would
give Specific and definite legislative au.
thority ro the Public Service Commission to
inquire into the leases Of tho l.. II. 4. with
the underlying traction companies, and If
tho rates Of rental were found to be CXorbi-
tant to reduce them.
The shareholders in tho underlying com
pauiCs have long insisted that their contract
with the +. H. T.. wac sacred and immune
from Investigation or revision in any way.
They may b. expected to fight to tho last
ditch against the passage Of any law which
will permit an inquiry into tho reasonable
ness of tho return on the invested capital
provided by the terms Of the lease That the
return is unrcasonably large is admitted
when fighting for exemption for the pay
mont Of war taxes on tho revenues OF tho
underlying companies the counsel for the
+. 4. T.. prepared an elaborate statement
showing Tn" earnings Of these companies, and
insisted that they were Cyorbitant
The loascr has boon paying about $40
O0O.no a year to these companies for tho
privilege Of operating their franchises and
using what lttlc real estate they own.
All this has come out of the pockets Of
the car rjdrr>.
II is why tho fare has been raised from
frc cents e. seven cents or four rides for n
quarter.
It Is why ,hcrc is talk Of ten cent fare
And il j. why tho agents ot Uncle Dave"
are busy in Harrisburg doing their hest to
Kill bill intended 10 protect the interest
Of the great mass or the public.
Tho hill ought ~ be passed. The Public
Service Commission ought to have the power
which the measure confcrs on It, Tho prin.
Ciplc on which II is based ought to be en-
bodied in tho laws Of the commonwealth.
That principc Is the assertion of the right
Of the commonwealth to exercise its power
to protect the public against the cxtortions
of any corporation which it has created.
L. is admitted now that tho state can
revise tn" terms Of any contract between Il
municipality and n public service corpora
ton oven against tho protest of tho mn.
niripalty. tn" state authority can inter
vcno in such Ca"cS because the municipality
is a corporation deriving all its powers from
the Legislature. But street railway cor
r0ration is just ns dependent as n munici
pality on N" Legislature. Its powers come
from the people. It exists by the grace Of
legislative enactment. It enjoys such privi-
lCgcs rs the Legislature confers on it and
no moro.
Tho whole official power Of the common
wealth and Of all its municipalities should he
lined up in support of the Mllar bill. It's
passage will not Cudanger the legitimate
rights Of any corporation or of any property
holder. Indeed, it would cnablG the state
n 60 ,o the relief Of corporations not got
ting = rca,onah" return on their Investment
just a. mu"h as it would relieve the yubic
when i /, charged too much for service ron
derod IN order that the holders Of inflated
securities may get an unreasonable return
on thoir Investment.
But thrrO is 10 indication that any ono
save Representative Millar il making
so~i"us effort 10 got tho bill passed. So long
As this condition prevails the agents Of
II unlr Dave will not have to strain Il
muscle in order to keep tho bill in committee.