Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1923-09-06
TROLLEY FIGHT
NOW IN COURT
Two Proceedings in Supreme
Court and Two in Court
of Chancery
RIGHTS OF FRANCHISE
Can Any Utility Concern De-
IiberateIy Deprive Public of
Service Expected of It?
RIGHTS OF. FRANCHISE


suit of their abandonment of service |
on August 1 last and the issue be- i
| came tightly drawn as to whether
company holding a state charter to
| provide transportation and in pos
| session of valuable franchise rights. |
can lightly throw off the RESPONSE
bility it assumed when it obtained
| these valuable concessions from the
| sovereign state of New Jersey. Upon
| the outcome, in the opinion of close
students of utility corporation reg
ulation, rested the question of
| whether in the future other trolley
| companies, as well as gas, electric,
water and other public serving con-
Germs may successfully defy the
! power of the state and shut off their
| operation for the benefit of patrons
| and consumers at their own VIII
and caprice.
The four proceedings now con-
| fronting the Public Service Railway
| Company are the two in the supreme
! court and the two began yesterday
| afternoon in the chancery court
The Public Utility Commission mas
| a. mandamus proceeding under way
| in the former tribunal to comPei
| the company to render safe, ade-
| uuate and proper service" under
| the Public Utility Act of 1911. The
| state, through Attorney General Nc
/ Gran. has Instituted quo warranto
| proceedings to compel the company
to show by what authority 1t con,
| tinues to hold its tracks, poles anu
other property on the streets Oh the
| Municipalities of New Jersey es-
| terday McCran moved in the chan
cery court with double barrelled
application, either for q mandatory
iniunction to compel the company
to operate or for the appointment
If n receiver who would take over
its lines and run the cars. lie tnen
followed this up with an. appncation
for receiver for the "fast line OF
tba Public Service between Eliza
beth and Trenton under the terms
Of the railroad law which provioes
for This action when road fails 10
onerate over it's line for space Oh
fen days. The fast line is known
as the "Public Service Railroao;
Last year it carried approxlmatey
j 4,5O0 passengers and does a 1reisns gu.
business in ADDITION, partnoutdhs H. ,i,a
nnilkmen in the territory the hhe
taps.
chancellor Walker fixed Wednes.
dav morning of next week, at 10:5u
o'clock as the time and the state
house for the place at whlch tne
of3cjals of the company must snow
caI1sa why either the injunction OF
| receiver should not be auLhoIlHeu
} for the Public Service EaliWaS va
Company and a receiver tor ,ne
public Service Railroad Conipany'
The injunction-receiver pto1r inoa-
,rg carries the most interest, mas
-o,,cb as IT has to do with the tuture
oe tbe trolley car lines of the COM
nanv Assistant Attorney General
WiIiiam Newcorn, acting as counsei
cor the attorney general, Thomas :
Mccran. who brought the suit IN ms
, own name, based the action on tne
nrecedent set in the recent case oL
+be state against the Western Union
lTeIegraph Company. The latter IN
/ volved the attempt of the company
} 10 disregard the franking agreement
of the underlying companies, how
merged under it, but Whlch II helu
l the original franchises to erect poIes
: and string lines through TINS s'a.e,
! This agreement provided that uie
; telegraph messages or the oli,eiais nc
( Of the state of New Jersey should De
cent free over the wires of the com
nanv. About a year ago the Wes-
tern Union, as the successor OF the
original companies, which MADE TINS
( pact with the state, attempted 10
abrogate it.
: Mr.. McCran then began the same
: kind of proceeding as was institut-
led in his name yesterday with the
: result that while the litigation has
: not vet reached a conclusion the
western Union is still sending the
: messages of the state officials Tree
/, of charge. In that proceeding, the
states legal officer first began quo
3 waranto proceedings and then got
4 a temporary injunction from Cham
: lcellor Walker restraining the tele-
i tgraph company from refusing the
\ messages.
! In his application yesterday to the
lchancellor the attorney general re-
! cited the fact that mandamus and
IQuo warranto proceedings have al
: ready been started and to support
i them, to protect the rights of the
e public and to preserve the situation
of the company as before August L,
. when it ceased operating, either
: mandatory injunction or receiver
!, should be granted to get the trolley
t cars running.
To prove the necessity of granting
4 this request a battery of facts were
presented to the court, 1t was con-
tended for instance that whether the
lcompany operates or not it must
: meet certain fixed charges or bills
against it totaling s5.s16.552.1s a
, year and that loss of earnings
through failure % operate and meet
these obligations would work to the
, ldetriment of the stockholders, inves-
tors and creditors of the company.
That the property depreciates at the
rate of $4,000 a month while idle.
That the combined municipalities are
losing on an average of $4,000 a
| Nf "A
company, under the act providing
for this tax, or about $1S0,000 a
month during the period of idleness.
The chancellor was further in
II kContinued on page I