Perth Amboy evening news., 1921-10-12
TEMPORARY
FARE BOOST
IS ALLOWED
Public Service Allowed 8 Cent
Fare by Decision of U. S.
Court Today

TRENTON, Oct. 12:-By a vote
of two to one the federal circuit
court here today granted the appli-
cation of the Public Service Rail-
way Company for temporary in
junction, the effect of which is to
prevent the operation of the July IA
order of the Public Utility Commits
sion which ordered the company to
charge seven cents with two cents
for each transfer.
The action of the federal court
here today permits the Public Serv-
ice temporarily to charge eight cents
pending the outcome of it's applica-
ton to that tribunal for a ten cent
fare.
The rate for school children's tic
kets will be continued and the COM
pany is TO be permitted to charge
one additional cent for transfers.
The purchase of four tickets for
thirty cents is also continued. For
each initial eight cent fare collected
the company is to give the rider a
receipt for one cent and also a re-
ceipt for two cents in every case
where four tickets for thirty cents
are bought. These receipts are to
be redeemed by the company, rules
the federal court. in the event that
upon final hearing the company is
permanently denied fare more
than allowed it by the utility board
last summer. 1t does not bind the
state ordinances raising such obli-
cations as enacted and franchises
there under are accepted subject to
the reserve power of the state to act
on its own behalf in manner which
may, in effect, nullify them.
I,-
siding Judge Woolley of Delaware.
and was concurred in Judge Rell-
stab. The dissenting voice was from
Judge j. Warren Davis. Judges
Rellstab and Davis are New Jersey
members of the court.
The Public Service appealed TO
the federal tribunal on the ground
that the action of the utility board
in denying it a higher fare than
seven cents violated the fourteenth
amendment of the federal constitu-
ton in that it confiscated the prop
erty of the company.
The court is concerned only with
cne question" said the majority
opinion today. which is whether the
rate of seven cents plus two cents
Tor transfer last fixed by the board
is confiscatory of the company's
property because based on a valua-
ton of the property less than its
worth at the present time if it is
confiscatory then the federal con-
stitution has been violated and this
federal court will afford relief.
Before discussing the issue wheth-
er the rate in contest is invalid we
shall dispose of the contention of
the intervening municipalities that
the rate is invalid because it is
higher than rates prescribed by or
dinances of municipalities under
which. in part, the company operates
its lines.
These ordinances contain provi-
sions for five cent fares or fares not
in excess of five cents. whatever OBJ
legation an ordinance locating street
railway tracks and prescribing rates
of fare may create between a muni-
cipality and a utility company"
The opinion then said that the
state of New Jersey by the Public
Utility Act of 1911 is now exercising
this power by regulating rates at
will. The courts of New Jersey,
added the decision. have already
disposed of the question of franchise
and ordinance contracts of opinions
they have rendered.
Turning to the issue of confisca-
tion." then said the majority opin-
ion, 1.-THE court understands that in
appraising the value of the COM
pany's properties. all parties agree
that physical cost of the properties
may be taken as the base figure.
This cost the board placed at s70.-
100000. The intervening municipal
tiles say that figure is too high. The
plaintiff company says it is too low.
Yet for the purpose of the present
discussion il admits 1t to be correct.
seaplane at Yacht Club; pass IS each.
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