Perth Amboy evening news., 1921-10-12
IS. COURT GRANTS TEMPORARY TROLLEY FARE INJUNCTION
Action Of Federal Court
Allows Public Service To
Charge Eight Cent Fare

the federal tribunal on the ground
that the action of the utility board
in denying il a higher fare than
seven cents violated the fourteenth
amendment of the federal constitu-
ton in that it confiscated the prop-
erty of the company.
The court is concerned only with
one question" said the majority
opinion today, which is whether the
rate of seven cents plus two cents
for transfer last fixed by the board
is confiscatory of the company'o
property because based on a valua-
ton of the property less than its
worth at the present time il it -
confiscatory then the federal con-
stitution has been violated and this
federal court will afford relief.
Before discussing the issue wheth-
er the rate in contest is invalid we
shall dispose of the contention Of
the intervening municipalities that
the rate is invalid because it il
higher than rates prescribed by or
dinances of municipalities under
which, in part, the company operates
its lines.
These ordinances contain prov1-
sions for five cent fares or fares not
/ in excess of five cents, whatever OBJ
| legation an ordinance locating street
railway tracks and prescribing rates
of fare may create between muni-
cipality and utility company"
The opinion then said that the
state of New Jersey by the Public
i Utility Act of 1911 is now exercising
this power by regulating rates al
will. The courts OF New Jersey,
added the decision, have already
L. To-. Truv -lrrG
4 and ordinance contracts OF opinions
they have rendered.
Turning TO the issue of conflsca-
tion," then said the majority opin-
ion, "the court understands that in
! appraising the value of the COM
pany's properties, all parties agree
that physical cost of the properties
may be taken as the base figure.
This cost the board placed at $70.-
| 100000. The intervening municipal-
| tiles say that figure is too high. The
| plaintiff company says IT is too low.
/ Yet for the purpose OF the present
/ discussion it admits it to be correct
After giving careful considera-
/ ton TO the contention of the munich
! palities, the court finds that they
/ have not sustained the burden which
which the law places upon them OF
/ overcoming the presumption OF COR
! rectnesS which the law gives TO the
boards calculation, therefore, this
court, for the present purposes, ac-
cepts the boards cost of SIC, 900, 600.
/ In his dissenting opinion Judge
Davis said that it was apparent the
Public Service had sought TO mag
Nifty the valuation of the various
parts of its properties and the mu-
inequalities on the other hand had
sought to minimize them
The dissenting opinion said that
the writer profoundly impressed
with two facts. one the difficulty
of the task before the Utility Board
and secondly its earnest effort 70
make a valuation and on it a rate
which would be fair and just TO the
company and to the public
THE determination of this ques-
ticn has called for the exercise OF
the boards best business judgment
/ commented Judge Davis, "and / am
persuaded that with strong desire
/ TO be fair, it has conscientiously
done its best Its order IS pre-
sumptively right and should not be
disturbed unles it clearly appears TO
be wrong for this reason he felt
compelled TO dissent"
The majority opinion directs de
cree be prepared in accordance
with it's decision and the new fare
will be effective when the necessary
ticket arrangements have been
made by the trolley company.