The New York herald., 1921-09-16
FARE BOOST DENIED;
P.SC. ASSALS PLEA
FROM UTICA CAR CO.
First Important Decision
Indicates Policy Toward
Public Utilities.
ACTION is UNANIMOUS
Opinion Says People Should
Share Prosperity if They
Make Up Deficiency.
ACTION IS UNANIMOUS
LIKE ALL OTHER BUSINESS
Request for Permission to In
crease 6 Cent Rate to 10
Called Extravagant.

The first decision of Importance by
the new Public Service Commission.
which the Hylan administration con-
stantly has attacked as an instrument
created by Gov. Miller to pry more
money out of the public for the benefit
of public utility corporations. was
made public yesterday. The decision,
which was characterized as "emphati-
cally outlining the policy Of the COM
mission in similar cases." denied the
application Of the New York State
Railways Company for permission to
increase the street car fares in Utica
from six to ten cents.
An opinion, prepared by Chairman,
William A. Prendergast and unani-
mously adopted by the commission,
laid down the following proposition, in
dicating that the commission regards
as passed the period of hard times
due to the war. and setting forth the
commissions attitude toward that sort
of n plea from public utility corpora
tons:
Public utilities, just as other depart
ments OF business, must expect to cope
with periods Of depression and short
earnings, just as at other times they en-
JOY periods of prosperity and full divi-
dends. If the public IL expected to
make up every deficiency in order to
give utility good round rate OF earn
ing power. then the public is entitled to
the benefit of the surplus over the
agreed earning rate In times of pros
perity."
The opinion further states:
''It must be borne in mind that we
are not dealing with the conditions OF
| 1920 or the previous abnormal years
but with the present period. which 10 one
OF profound economical adjustment. I,
Is with this pregnant fact before us that
n decision In this and similar cases must
be made. The fact Is that the proceeds
of revised wage relations has already
reached this company"
The opinion points out the benefits the
company has received since 1920 by a
reduction in the cost of materials and
the installation OF less costly equipment.
IL states also that the case made out
|
not convincing. and continues:
while a franchise rate once fixed
must not be presumed 10 be immutable,
the reasons advanced for changing II
should be Of controlling character In
this case the local authorities have al
ready conceded an advance In passen-
ger fare from the original franchise
rate OF five cents to six cents. The
local authorities therefore cannot be
charged with failure to appreciate the
additional revenue requirements Of the
street railroad company due to the war
conditions. With the subsistence Of these
road company 70 be seeking further ad-
vanccs. especially In the form of It's
present utterly extravagant request for
a ten cent fare. On the other hand II
Is the duty of the company to SO ad-
minister its affairs through economies
and improvements that the fare to be
charged to the public will be at the low
est possible minimum consistent with
good service and an adequate return to
the investors"
The Public Service Commission has
outside the city of New York. but is In
no way connected with the Transit Com
mission. which has Jurisdiction over the
transit lines OF this city. further than
that both commissions were created un-
der tho came law upon the recommends
ton of Gov. Miller TO the Legislature
last year.
The Transit Commission Is at work
upon its report upon the transit situa-
ton here. and Is expected TO make that
report public within a week.