The New York herald., 1921-01-25

body and the mass OF matters with
which II deals. A Public Service Com
mission with all the power under the
rapid transit act. and all the power
necessary to deal with the problem, re-
serving TO the city the power 70 give
the constitutional consent to routes. and,
OF course. to pledge the credit OF the
city. appears to me TO be the manifest
| solution.
The foregoing views appear to me to
be sound But in stating them, after
much reflection. l merely desire 70 in
vite your consideration Of them. and to
focus public attention upon them. The
vital thing to do at the moment is to
create the agency to deal with the prob
lem with ample and undivided authority
and responsibility The necessity OF do
ing that does not appear to me TO be
open 10 debate. That agency when
created must work out a plan from the
ascertained facts uninfiuenced by any
prejudgments, or predictions whatso-
ever, and I have said nothing with the
intention OF influencing the ultimate de-
cision with the single reservation that
that decision must be in the public In
! terest.
Loose Talk About Home Rule.
/ There is a good deal OF loose talk
I
subject. The problem is not a local
problem. 1t is State problem, State,
wide In Importance and can only be
solved by the exercise OF the police power
which resides In the State Legislature.
II matters not whether the city owns
the subways in its governmental or pro-
Lrietary capacity. In either capacity 1t
Is merely discharging public function
! ever which the State In the exercise
I - -. x-1t 4
! are two great problems of transporta-
! ton In and about the citS' OF New York.
| One is the problem OF transportation
! OF passengers, with which We are now
| dealing. The other Is the problem Of
/ the transportation OF freight involved
IT. the port development problem. on
which l hope to address the Legislature
| In the near future. Both are of general
| State concern and neither can be prop
erly solved without the exercise OF State
/ rover. ] believe In the greatest ex-
( ercise of home rule. compatible with
! good government, but the public in
/ .erest must always be kept paramount,
and when State power can be effectively
! exercised only by the State it ought
not to be delegated to municipalities.
! The regulation OF public utilities is
I form the nature Of the case State
| function. and the power of regulation
must be undivided to be effective. The
! State has already gone too far In deal
ing with the particular problem at hand
/ to draw back now. The responsibility
! has already been assumed. The de-
4 plorable condition OF transportation in
! the city Of New York which have in
adequately described and the dark pros
| poets ahead II no relief Is found pre-
| clude the thought that either the Legis-
/ lature or the Governor should evade or
seek to shift the responsibility.
I Were IL not for the unique character
OF the transit problem In New York l
] should recommend that all public utili-
ties Of the State be placed under the
! Jurisdiction Of a single State commits
sion. which should have full power re-
gardless OF any local authority. except
7 i'll so far as the Constitution has vested
power in the localities. Apart from the
fact that the police power of the State
is involved, quasi judicial powers
should be vested In an impartial tri-
bunal. A tribunal responsible to local
authority cannot be expected to be I'M
partial in local case, and experience
has shown that such tribunals are SUBJ
ject to local feelings and prejudices.
The vestlng Of such powers In them is
| like submitting controversy to one Of
| the parties 70 II.
l. Z oOuEo w Oos0
! do recommend that all pubic utili-
! ties be placed under the jurisdiction of
one state commission, except that a
commission be created for the First Dis
trict with complete jurisdiction over the
single subject Of transit In that district
! make that exception not only because
the problem is unique and complicated
but because l entertain the hope that
public spirited men, who might not be
willing to undertake the regulation of
public utilities generally may be found
to undertake particular service. II Is
no exaggeration to say that that SER
vice will require the highest order OF
Intelligence, fairness and public spirit
to which any citizen may be called, and
that 1t affords an opportunity for dis
tinguished public service the like of
which Is rarely presented.
recommend that commission of
three be created with complete juris-
dlct!on over the subject of transit In the
First District, that the powers under the
Public Service Commissions law and the
Rapid Transit act be transferred to II
with such amendment as further study
may suggest, and that the former irde-
pendence OF municipal control be re-
stored regardless OF the provisions of
local consents or prior contracts.
] further recommend that Jurisdiction
ONtI Juliet PuDlC IN the
State be conferred on the present COM
mission for the Second District Five
Commissioners for that work may be
necessary.
also recommend that the Public Ser
vice Commissions law be amended SO
as to make the rules uniform as to all
public utilities. including the power to
suspend rates pending hearing and de-
| termination. In view Of the time re-
quired for some rate determinations
there should doubtless be power to pre-
scribe temporary rates pending such de-
termination, with such safeguards as
may be prescribed by the commission,
and complete power should expressly be
vested In the commission regardless OF
local consents or contracts
Would Regulate Gas Rates.
] invite your particular attention 10
the subject Of gas rates. Acts Of the
Legislature prescribing particular rates
have been found to be connscatory by
the Federal Courts. The result is that
the companies affected are left free to
impose any rate. subject only to the
requirements OF reasonabieness. That
condition requires immediate remedy.
Either the Legislature must prescribe
new rates or confer jurisdiction over the