Perth Amboy evening news., 1923-01-16
PERTH AMBoY EVENING NEWS, TUESDAY, JANUARY 16, 1929.

for We would chen have a valuation
representing real investment values.
Shall VIZ continue as we are going,
without unwatering these compan-
les? II we do, and so long as we
do, injustice is done TO the public.
We have no moral right to do this.
We have no justification for mulct-
ing them further, now that we know
our duty.
We must act at once, and do that
which must ultimately come. We
must throw out this ballast, if the
passengers and the ship are to be
saved from disaster.
Now, how shall this be done?
BY insisting that the companies
may continue to exercise their fran
chises, only if they agree to a rea-
soma return upon a prudent in
vestment value-nothing more.
If they will not agree, the state
rust then exercise it's sover Ign pow
er. The principle is well established
by our highest court that "the state
retains all sovereign power except as
far as it has, by unmistakable lang
uage entrusted them to Others" The
laws giving authority to municipal
ties to grant franchises, limit them
to giving consent to all the con-
struction, operation and mainten-
ance of street railways, the location
of tracks, and imposing lawful re-
strictions."
The authority SO given in no re-
spect deprives the state govern
ment of it's general control ver the
highways in which the rails are laid,
including the power to vacate."
$50 = = . it is quite incon-
ceivable that the municipality could,
by it's ordinance granting consent,
make provisions that would limit the
power Of the state"
The sovereign power to fix and
maintain just and 4easonable rates,
to exercising the taxing power, or
the police power has never been sur
rendered, and the municipalities are
without authority for the purpose,
to tie the hands of the State forever"
The state should therefore say to
the railway companies, that unless
they are willing to accept a reason
able return upon a prudent invest
ment value, then the public high
ways of the state must be vacated
by them.
In giving the municipalities the
right to consent to the use of public
streets by railway companies, the
legislature never gave them the
right to mulct the public. 1t never
| gave the right to a return upon
watered capital, or inflated values.
1t never gave the right to a return
upon anything but real honest
| values.
Whenever the companies exact
more than this, then the state may
| step in, and demand that the street
be vacated.
If this were not so, then the NUM-
| cipaIities could bargain away the
| states sovereign rights, or the COM
pa-ies could appropriate them.
In giving the right to grant con-
| sent, the state always reserved to
| itself the powers of self-protection.
One of those powers is to prevent
! unjust exactions.
Ju. lice requires that we should
| recognize the companies prudent in
yestments, but it does not require
| that we must go beyond that, ano
allow them a return upon inflated
values, at the expense of the public.
The course suggested gives then
| everything to which they are entitl-
| ed, and at the same time protects
the puDllc.
The legislature should fix thai
prudent investment value upon ad-
| vice from the Public Utility Com
[ mission.
AS 1 have conceived that value
! after study, l am sure it will bring
about a fiye-cent fare, and later /
further reduction.
If the legislature misconceives 1T
duty, or betrays the public, OF cours'
we will be worse off than before.
There is no just reason why thu
day of settlement should be post
poned, at the expense of the lnno
cent public.
When settled, the public and thu
companies would be rid of veXatiou!
and expensive litigation. They woult
have peace, The companies woulo
have a, definite substantial basis
both for operating and financing.
The public would have the trac
tion question removed from polltlca
consideration.
In taking this step we should a
| an Y to the future, and adopt !
method that will protect the pupHc
and at the same time the
utilities companies.
With this in mind, l would adVo'
| cate a sliding scare pdsis'
Starting with . five-cent fare, tn
comnanies sht be permitted Il
oorn & ner 81 on its prudent III
vestment. 7 lie profits increased
then the e. : may be reduced t
four cents, and the companies per
mitted to earn s per cent, and s.
on. producing an equitable decreas'
of fare and a corresponding lncreas
in dividends.
This would be beneficial to tn
nuhlic and companies alike l
would assure efficient and
ical management and increase u
profits. ,
With the value already fixed.
would be easy to follow furthel
expen ditures of the company, ant
Iso fs future valuations, as improve
ments and extensions are made.
Ali that 1 have said about stree
railway companies applies with
lequal force to light, heat and powel
companies.
AS I have stated before. in solv
ing this problem there r twt
equities to be considered. On thu