Perth Amboy evening news., 1923-09-12
TROLLEY RECEIVERSHIP
FIGHT STARTED TODAY
(continued from Page y

letters had been received by various
governing officials and by the COM
pany itself, endorsing the plan of the
company's officials for a settlement
of the labor troubles confronting 1t
and that various civic and business
organizations, had also endorsed the
company's plan for settlement.
The chancellor opened the hearing
in the chamber of the courts of err
rors and appeals, using that room,
which is the largest of any of the
court rooms in the state house, be-
cause of the anticipated attendance
of a large number of interested par
ties and citizens. On all sides 1t
was felt this morning that the COM
pany and the state were locking
horns for the struggle to determine
which is supreme.
In other words. the question was
whether this utility corporation,
holding valuable rights and fran
chises upon the condition that it
give in return service to the people
of the state, can lightly throw off its
end of the bargain and defy the
authority of the state to compel it to
u cars in accordance with the
franchise provisions.
by tue lcIIlS u lie C"lldHCellOI .
order of a week ago the officials Of
the Public Service were commanded
to show aus today why the appli-
cation of the attorney general for
a mandatory injunction to compel
operation of the company's lines or
a receiver, as the alternative, should
not be granted to the state.
A battle of wits between the at
torney general and his assistants
on the one side and the lawyers for
the Public Service Railway Com
pany on the other was looked for as
both sides appeared IN court. Ac-
cording to the plans of Mr.. McCran,
the latter expected to open his case
first against the Public Service Rail
road Company In which proceeding
last week he asked for an order
from the chancellor granting a re-
ceiver. This is the fast line" be-
tween Elizabeth and Trenton and it
was organized under the railroad
act, which provides that when a
road fails to operate for ten days
the chancery court shall name a re-
ceiver. The attorney general was
prepared to present the afidavit of
Henry HOLMAN, of Mercer county,
who lives along the fast line" to
prove that it has not operated since
the first OF August, when the strike
began.
The State legal representative was
prepared to offer further affidavits
from John w. Harmed, of Mercer
vile, and Roscoe r. Shadow, of.
Trenton, to similar effect that the
company's railroad has not been
running. Harned's affidavit set forth
that numerous people residing near
hfA1 haHrA IAa- --A.EIrY
fenced because of the cessation of
going a mile over dirt roads to- get
other conveyances to carry them TO
their respective businesses. Shad-
dow is a Trenton milk dealer who
formerly got shipments of milk over
the line which carries both freight
and passengers. HIS AFFIDAVIT shows
that his shipments from Dutch Neck
on the line of the company, stopped
August 1 and since that time he has
been compelled to get his supplies
forwarded by automobile.
1t was expected that First AS
sistant Attorney General William A.
Newcor non behalf of the attorney
general, suing as a citizen, would
open the battle for the mandatory
Injunction or receiver and that fol-
lowing the answer by the company's
representatives, the attorney gen.
eral himself would close the argu-
ment with a final reply. It Is on this
application that the big fight is
looked for, inasmuch as it involves
the operation of the trolley lines in
the 142 municipalities where the
company holds franchises.
The attorney generals argument
will include the contention that
aoout a million people a day are
being inconvenienced by the failure
of the cars to run on the $50 miles
of the company's lines in me 142
municipalities and that because of
this cessation the state and the mu-
inequalities and that because of this
cessation the state and the munich
palities are losing revenue on the
gross receipts which means about
$4,000 a day to q municipality and
about $780, 900 a month; that the
company's property is depreciating
too at the rate of $4,000 a month,
resulting in a loss to the bond
holders and the stock holders.
The attorney general was pre-
pared to contend that inasmuch as
the quo warranto proceedings he has
instituted in the supreme court to
compel the company to show by
what right it continues to hold the
franchises when it fails to render
service will be long drawn out the
only speedy remedy for the people
of the state is an Injunction to com
pei the company to run it's cars, or
the appointment of a receiver to
take charge Of the assets of the COM
pany and to operate the lines for
the benefit Of the public. The chan