The Penn's Grove record., 1921-07-08
Supreme Court Sets Aside 0eci-
sion of Utility Board Denying
Increase in Fares.
BAR EXAMINATION CANDIDATES
State Prison Death House Crowded
Beyond Capacity-LegisIature Is to
Probe Coal Combine-Public Serv-
ice Must Furnish Current.

ing the hearings on the application Of
the Public Service Railway Company
for authority to put into effect an emer-
gency fare of 10 cents showed conclu-
sively that at least a considerable part
of the proposed increased fare is JUST
! fed, the supreme court held in an opin-
ion setting aside the decision Of the
Utility Commission denying the in
crease. The company sought permis-
sion to increase its fare from : cents,
with an additional cent for each initial
transfer, to a fiat rate Of 10 cents. In
denying this application the commits
sion held that the emergency for Which
the increased revenue was desired To
relieve was rapidly passing with the
progress being made toward a restora-
ton of normal economic conditions.
The opinion of the supreme court,
written by Justice Bergen, makes more
probable an advance in the rate Of fare
on the entire system of the Public
Service Railway and affects scores of
municipalities. the greater number Of
which were represented by counsel in
the opposition to the application. Ii Is
directed by the supreme our that the
application of the Public Service Com
pany be remanded back to the utility
board for more consideration in order
that 1t may fix a just and reasonable
rate based on the evidence in this par
ticular case"
The conclusion reached by the court
is that the major portion of the desired
increase is required to pay the cost OF
operation and maintenance and that
without additional income to make re
pairs they cannot be made, thereby en-
dangering the lives of the passengers.
1T should be kept in mind" said
Justice Bergen, that the public as well
as the company are interested In the
continuation of the service and that it
should be made as safe as possible, for
the public needs no argument, nor can
it be doubted that its cessation or in
efficient management would seriously
iniure the public, which it is the duty
of the board of commissioners, as well
as the utility corporation, to avoid If
possible.
"a rate which does not provide for
the depreciation fund imposed by the
board nor for the operating expenses
of the utility company is not, in our
Judgment. a Just and reasonable rate,
which the statute contemplates. The
evidence clearly shows that the pres
ent rate under existing conditions Will
bankrupt the company as well as en-
danger the lives Of its passengers for
want of funds to make imperative re-
pairs. To require a maintenance fund
TO be carried and at the same time re
fuse an income to provide it is, to say
the least. a peculiar exercise of discre-
ton under our statute relating to the
power of fixing rates.
"The board in its report of its con-
clusion denies relief from these condi-
tons and treats the situation as an
emergency that will soon pass. Why
it so concludes is not apparent from
the evidence when the evidence shows
that for over three years the condi-
tions which produced threatened bank
ruptcy and lack of repairs demanded
have moi only continued, but are con-
stantly increasing. To call this situa-
ton an emergency and to refuse relief
for that reason is giving a meaning to
the word emergency which neither our
statute nor a%djudged cases warrant.
There is no evidence in this record
from which it cal be inferred that the
present cost Of operation and main
tenance will not continue, and with ii
the so called emergency until its vic
tim shall have collapsed TO the great
injury of its stockholders and especial
" the public, who depend upon II for
transportation.
THE relief was denied upon the
ground that the conditions creating the
deficit were the result of a sudden hap
pening producing a crisis, temporary in
character, which the board called an
emergency. Why an increased tax. en-
HANGED cost of labor, of operation and
of necessary repairs should be called
an emergency soon to be aSsuaged like
a sudden flood is not apparent To US,
either from the evidence or conditions.
of which We can take no judicial no
tice, nor, as the board did, can we as
sumo that other conditions will shortly
exist.
In support of the conclusions of the
board that the present rate is sutii-
cient to pay cost Of operations and fix
ed charges in the present emergency
and to show that there is no deficit for
that purpose it submits a schedule of
actual conditions for 1920 and that es-
timated for 1921. The actual deficit
for 1920 was $500, 100, allowing S144,-
$50 for maintenance instead of $780,
0OO required by order of the board.
The estimates for the year 1927 are
rather speculative than reliable. and on
this the board concludes that there will
be a surplus, not now, bu at the n
of the year, without making any allow
ance beyond $4,000 for imperative
improvements, which the evidence
shows will exceed at least S1,200.0O0.
80 that, assuming the estimate of
the board is correct, there will be a
q r o 400 600 &c ~ eo,-;c - 70