Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1921-08-10

fer at once upon the filing of stipu-
: lation that in case of a decision that
the company Is nSt entitled to any
increase the extra cent will be res
funded to all riders Slips will be
issued to each pass. niger for this re-
fund. Tn Is The same method that
was followed in the case of the Tren.
ton &c Mercer County Traction Cor
poration in its fight in this city for
an increased fare. Slips redeemable
for the increase We're issued hut the
increase was allowed-and-t lie s11pS
| did not have to DC redeemeack. N 4
stipulation will be filed as sa .dffrIr
it can be prepared, so the eighP66- ~
| fare will be in effect on all the COM
| pany's lines in day or two.
The application was made under
section 266 of the federal Judiciary
act, revision of 1911 providing that
where confiscatory rate is fixed or
alleged to have been fixed the court
may grant an injunction against the
enforcement of said rate. This act
also provides for the stipulation.
The papers in this suit were served
on Governor Edwards, Attorney
General Thomas F. McCran and the
utility board today. This makes the 4
state of New Jersey defendant in
the action.
Pending the hearing following
August IS. the utility commission is
restrained from enforcing it's order \
of July IA. holding the rate to seven
cents.
The company alleges that the rate
of seven cents is inadequate and con-
fiscatoiy and will drive 1t into bank
ruptcy. The action is brought under
section l of the fourteenth amend
ment of the federal constitution, pro-
vld!rg mo state shall, enforce or +
make law which shall abridge priv
iieges or immunities of citizens OF
the Unite States. Nor shall any state
deprive any person of life, liberty or
property without due process of law,
nor deny to any person within Its
jurisdiction the equal protection OF
the law"
Alleging the rate to be confiscatory
the company claims its effect Is to
take its property without due pro-
cess of law"
In it's bill of complaint, the COM
parry shows that the Public Service
Railway is composed of more than
100 street railways acquired by
consolidation. agreements and leases.
These r0nstituts united and COM
plete sy stem of about $50 miies OF
street. railway tracks In 141 munici-
palities. in eleven counties having
a population of more than 2.100.-
GEO people.
P,ior to the consolidation agree
ment constituent companies had
mortgaged their respective properties
to secure the rayment of bono
amounting to sS0.6zS,000, which q
now outstanding in the hands Of
vee;crs. These bonds 5ecams Il
rect obligation on the Public IS
Railway the interest arioups q !.
SSH 500 annually. Rent
s"rvec by the several leases Is -
prcterty held by 4, plat j. as
lessee amount to s1.161, ,764 annually.
Failure by the plaintiff. the bill al
leges, to pay interest on the bonds or
rentals referred to- or failure by
the plaintiff to comply with other
covenants in the mortgages and leas-
es would lead to foreclosure by the
mortgages and re-entry by the les
sors. thereby disrupting, the plain
tiff's system of railroads, leaving
many of the constituent and lessor \
companies without any rolling stock
or equipment to operate their prop
erty. Such disintegration the com-
Continued on page %