The New York herald., 1921-01-13
COMMISSION ASKS
FULLRATEPOWER
ON ELECTRIC LINES
Public Service Board Tells
Legislature Limitations
halt Needed Action.
CONTRACTS A BARRIER
Way to Adjust Fares Re-
gardless of Local Terms
Is Requested.
EpeciaI Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
Albany. Jan. IL.

specioI Despatch to THE NEW YORK HERALD.
New York Herald Bureau.
Albany. Jan. IL.
Full power In the fixing of the rates
of electric railroads is asked by the
Second District Public Service Com
mission in it's annual report submitted
TO the Legislature. The commission
saws that increased rates on nearly all
the electric railroads have become
necessary in the last two years. but
because Of its restricted power serious
difficulty has been experienced In
handling many of the rate cases.
Where municipalities had contracts
with the local traction companies limit
ing the rates TO levels found unproht-
able. the commission has been unable to
act unless the localities waived their
contract rights. While most communi-
ties did waive, the report says. the COM
mission wants power over all rates.
whether contracts exist or not. so lar
as the Legislature can grant 1t.
The commission said that 1t would not
oppose legislation to aid trolley rail-
roads by the service at cost plan, but
that such measures should not be
adopted without the most careful scru-
tiny.
Federal Act Criticised.
Severe criticism was directed at the
Federal transportation act which gives
TO the Interstate Commerce Commission
the power to make intrastate railroad
fares conform with interstate rates and
which the State is now testing in the
courts One result of the Federal Com
missions recent order forcing all pas
senger rates up 3.6 cents a mile, the re-
port complains. has been to impose on
the public the same fare for the notori-
ously poor service of small branch lines
as on the fast through trains.
'sThe transportation act" the report
says furnishes a measure of compen-
sation to the railroads which is quite
at variance with that business and rea-
sonableness' which form the groundwork
Of the State statutes. Under the Fed
eral act rates may be imposed without
regard to their particular reasonable
less. That act is in its essence not 4
rate structure but a remedial statute
designed to secure for the railroads as
a whole increased revenues without
special regard to the needs of the par
ticular corporation or to the value OF
the service rendered. The State law
on the contrary furnishes as a measure
of rates that which is Just and reason
able In the particular case. The meth
DDS of fixing rates are not reconcilaole.
"The passenger service on the branch
lines penetrating all parts OF the state
Is notoriously not of the same quality
as to speed, or wholesomeness, or COM
fort. or reliability or a value to the
passenger. All except the main lines
are single track, carrying both passenger
and freight traffic, and freight traffic
60 faN rrafaranCa the
schedules of passenger trains.
Appeal to the Courts.
sTn short. the order OF the Federal
Commission compels the great mass OF
intrastate passengers TO pay first class
rate for a second class and in many
cases a third class service. solely be-
cause some OF the traffic of such roads
in many cases a negligible percentage
OF the whole, moves across the State
boundary"
The report emphasized its contention
that In resisting the supersession OF the
State Legislative rates by the rates OF
the Interstate Commerce Commission
II is not actuated by any desire to enter
a contest for power as between the
State and Federal commissions. On the
contrary, the report says that the state
commission feels called upon to hold
itself responsible for presenting to the
courts the question whether the State
legislative rates could be overridden
by Federal power The commission also
SAYS in the report that 1t has felt II
to be a duty to test in the courts the
power of the Federal Government to
deprive the State of power to regulate
Capitalization of corporations organized
under it's laws.
"If the view must now prevail" said
the commission, that solely on the
ground that an intrastate rate differs
from an interstate rate. the Interstate
Commerce Commission may supplant II
with the interstate rate, then all State
control over intrastate rates. so far as
It concerns railroads. Is at an end. This
affects substantially all the steam car
riers operating within the State"