NY Transp L § 119 (2021)
2021 New York Laws TRA - Transportation Article 5 - The Powers of the Commissioner in Respect to Common Carriers 119 - Rates and Service to Be Fixed by the Commissioner.

§ 119. Rates and service to be fixed by the commissioner. 1.  Whenever the  commissioner shall find, after a hearing had upon his own motion or upon a complaint, that the rates, fares or  charges  demanded,  exacted, charged  or  collected by any common carrier subject to his jurisdiction for the transportation of persons or property within the state, or  that the regulations or practices of such common carrier affecting such rates are    unjust,   unreasonable,   unjustly   discriminatory   or   unduly preferential, or in violation of law, or that the maximum  rates,  fares or  charges,  chargeable  by any such common carrier are insufficient to yield reasonable compensation for the service rendered, and  are  unjust and  unreasonable,  the  commissioner  shall with due regard among other things to the estimated prospective earning capacity of such property at the rate of fare at the time fixed and  existent  and  to  a  reasonable average  return  upon  the  value  of  the property actually used in the public service, and to the necessity of making reservation out of income for surplus and contingencies, determine the just and reasonable  rates, fares  and charges to be thereafter observed and in force as the maximum to be charged for the service to be performed,  notwithstanding  that  a higher rate, fare or charge has been heretofore authorized by general or special  statute,  and shall fix the same by order to be served upon all common carriers by whom such rates, fares and charges are thereafter  to be observed.   At  any hearing involving a rate, the burden of proof to show that the change in rate if proposed by the common carrier, or that  the  existing rate,  if on motion of the commissioner or in a complaint filed with the commissioner it is proposed to reduce the rate, is just  and  reasonable shall  be  upon the common carrier; and the commissioner may give to the hearing and  decision  of  such  questions  preference  over  all  other questions  pending  before  him  and  decide  the  same  as  speedily as possible.   Whenever the commissioner shall find, after a hearing had upon his own motion, or upon a complaint, that the rates, fares or charges  demanded, exacted,  charged  or  collected  by  any  common carrier subject to his jurisdiction for excursion, school or  family  commutation,  commutation passenger  tickets, half fare tickets for the transportation of children under six years of age, or any other form of reduced  rate  tickets  for the transportation of persons within the state, or joint interchangeable mileage  tickets,  with  special  privileges  as  to  the amount of free baggage that may be carried under mileage tickets of one thousand  miles or  more  within the state, or that the regulations or practices of such common carriers affecting such rates are unjust, unreasonable,  unjustly discriminatory  or  unduly preferential, or in violation of law, or that the maximum rates, fares or charges collected or charged for any of such forms of reduced fare  passenger  transportation  tickets  by  any  such common carrier are insufficient to yield reasonable compensation for the service  rendered,  and  are  unjust  and unreasonable, and whenever the commissioner shall find, after a hearing had upon his own motion or upon a complaint, and upon investigation, that the sale of any form or  forms of reduced passenger ticket heretofore sold or used upon any railroad or street  railroad  within  the  state, the use or sale of which ticket or tickets has been discontinued within five years prior to June thirtieth, nineteen hundred and eleven, will be just  and  reasonable  and  not  in violation  of  any  provision of this chapter or other provision of law, the commissioner shall, with  due  regard,  among  other  things,  to  a reasonable  average  return upon the value of the property actually used in the public service and to the necessity of making reservation out  of income  for surplus and contingencies, determine the just and reasonable rates, fares and charges to be thereafter observed and enforced  as  the  maximum  to  be  charged  for  such mileage, excursion, school or family commutation, commutation, half fare or any other form  of  reduced  rate tickets  for  the  transportation  of  persons, or joint interchangeable mileage  tickets  with  special privileges as aforesaid, and shall order the sale and use thereof to be restored, or any of the kinds of  tickets herein  specified  or  any  other  form  of  reduced rate ticket for the transportation of persons within the state, upon any railroad or  street railroad  within  this state, upon which railroad or street railroad any such form of ticket or tickets for the transportation of persons  within the  state,  have,  within  five years prior to June thirtieth, nineteen hundred and eleven, been sold or used, and shall determine and prescribe the reasonable and just  rates,  fares  and  charges  to  be  thereafter observed  and enforced as the maximum to be charged for any of such form of ticket or tickets for the transportation of persons within the state, all of which acts fixing such rates, fares and charges or requiring  the restoration  of, sale and use of any of such forms of ticket or tickets, shall be by order to  be  served  upon  all  common  carriers,  railroad companies  and  street  railroad companies by whom such rates, fares and charges or restoration of, sale or use of such  ticket  or  tickets  are thereafter to be observed.   2. Whenever the commissioner shall find, after a hearing, had upon his own   motion   or  upon  complaint,  that  the  regulations,  practices, equipment, appliances, or service of any such common carrier in  respect to  transportation  of  persons or property within the state are unjust, unreasonable, unsafe, improper or  inadequate,  the  commissioner  shall determine  the  just, reasonable, safe, adequate and proper regulations, practices, equipment, appliances and service thereafter to be in  force, to  be  observed  and  to  be used in such transportation of persons and property and so fix and prescribe the same by order to  be  served  upon every  common  carrier  to be bound thereby; and thereafter every common carrier shall observe and obey each and every requirement of every  such order  so served upon it, and do everything necessary or proper in order to secure absolute compliance with and observance of every such order by all of its officers, agents and employees.   3. The commissioner shall have power by order to require  any  two  or more common carriers whose lines, owned, operated, controlled or leased, form  a continuous or connecting line of transportation or could be made to do so by the construction and maintenance  of  switch  connection  or interchange  track  at  connecting  point, or by transfer of property or passengers at connecting points, to establish through routes  and  joint rates,  fares  and  charges  for  the  transportation  of passengers and property within the  state  as  the  commissioner  may,  by  his  order, designate;  and  in  case  such  through  routes  and joint rates be not established by the common carriers named in any such  order  within  the time  therein  specified,  the  commissioner  shall  establish  just and reasonable rates, fares and charges to  be  charged,  for  such  through transportation,  and  declare  the  portion thereof to which each common carrier, affected thereby shall be entitled and the manner in which  the same  shall  be  paid  and secured; and the commissioner shall also have power in the same proceeding, or in a separate proceeding involving  any rates,  fares  or charges to prescribe joint rates and fares and charges as the  maximum  to  be  exacted  for  the  transportation  by  them  of passengers  and  property  within  the state, and to require such common carriers affected thereby to make within a specified time  an  agreement between  them as to the portion of such joint rates, fares or charges to which each of them shall be entitled; and in case such agreement be  not so  made  within  the  time so specified the commissioner may declare by supplemental order the portion thereof  to  which  each  common  carrier  affected  thereby  shall  be  entitled  and the manner in which the same shall be paid and secured; such supplemental order shall take effect  as part  of  the original order from the time such supplemental order shall become effective.   All  powers  of the commissioner to establish through routes and order joint rates, fares and charges as above conferred in relation to  common carriers  by  railroad,  shall  extend and apply to the establishment of through routes and ordering of joint rates, fares and  charges  for  use and  observance  by  common  carriers by railroad and common carriers by water.   When property may be or is transported from  point  to  point  in  the state  of  New  York  by  rail  and water, the transportation being by a common  carrier  or  carriers,  and  entirely  within  such  state,  the commissioner  shall  have jurisdiction of such transportation and of the carriers, both by rail and by water, which may or do engage in the same, in the following particulars, in addition to the jurisdiction  given  by other provisions of this chapter:  (a)  To  establish  physical  connection between the lines of the rail carrier and the dock of the water carrier by directing the rail  carrier to make suitable connection between its line and a track or tracks which have  been  constructed from the dock to the limits of its right of way, or by directing either or both the rail and water carrier,  individually or  in  connection  with  one another, to construct and connect with the lines of the rail carrier a spur track  or  tracks  to  the  dock.  This provision   shall   only   apply  where  the  connection  is  reasonably practicable, can be made with safety to the public, and where the amount of business existing or prospective is sufficient to justify the outlay.   The commissioner shall have full authority to determine the terms  and conditions  upon  which these connecting tracks, when constructed, shall be operated, and he may either in the construction or the  operation  of such  tracks,  determine what sum shall be paid to or by either carrier. The provisions of this paragraph shall extend to cases where the dock is owned by other parties than the  carrier  involved.    The  commissioner shall  have authority to compel common carriers by rail to make physical connection between their tracks and  public  terminals  established  and operated  by the state under the provisions of chapter seven hundred and forty-six of the laws of nineteen hundred and eleven, at the expense  of such  carrier and of the state in such proportions as may be reasonable, where such connection is practicable. The commissioner shall  also  have authority to compel common carriers by rail to operate upon the railroad tracks  within such public terminals by such common carriers' own motive power and servants all rolling stock going to or coming from such public terminals. Common carriers by rail required  to  make  such  connections shall  file  tariffs  for all service into and out of such terminals and over the connecting lines of such carriers by rail, if complaint is made by any person that the rates so made are unreasonable, the burden  shall be  upon  the  common carrier by rail to establish the reasonableness of such  rates.  If  the  rates  are  found  by  the  commissioner  to   be unreasonable, the commissioner shall establish reasonable rates. The use and operation of such connections and the spotting, placing and removing of  rolling stock shall be in accordance with the regulations prescribed by the commissioner.  (b) To establish through routes and from time to  time  order  maximum joint rates between and over such rail and water lines, and to determine all  the  terms and conditions under which such a line shall be operated in the handling of the traffic embraced.  (c) To establish maximum proportional rates by rail to and from places to which the traffic is brought, or from which it is taken by the  water  carrier,  and  to  determine  to  what  traffic  and upon what terms and conditions such rates shall apply. By proportional rates are meant those which differ from corresponding local rates to and  from  the  place  of receipt and delivery and which apply only to traffic which is brought to the  place  of  receipt  and delivery or is carried from that place by a common carrier by water.  (d)  If  any  rail  carrier  subject  to  this  chapter  enters   into arrangements  with  any  water  carrier  operating  in the state for the handling  of  business  between  interior  points  in  said  state,  the commissioner may require such carrier to enter into similar arrangements with any or all other common carriers by water operating therein.  (e)  No  common  carrier by rail shall own, lease, operate, control or have any interest whatsoever, by stock ownership  or  otherwise,  either directly  or indirectly, through any holding company, or by stockholders or directors in common, or in any other manner, in any common carrier by water, with which said common carrier does or may compete  for  traffic, or  in  vessels,  boats  or barges carrying freight upon any water route with which such common carrier does or may compete for traffic.   Jurisdiction is hereby conferred  on  the  commissioner  to  determine questions  of  fact as to the competition or possibility of competition, after full hearing, on the application of any railroad company or  other carrier.  Such  application  may be filed for the purpose of determining whether any existing service is in violation of this  section  and  pray for an order permitting the continuance of any vessel or vessels already in  operation,  or  for  the  purpose  of asking an order to install new service not in conflict with  the  provisions  of  this  paragraph.  The commissioner  may  on  his  own motion or the application of any shipper institute proceedings to inquire into the operation of any vessel in use by  any  railroad  or  other  carrier  which  has  not  applied  to  the commissioner  and  had the question of competition or the possibility of competition determined as herein provided.  (f) The provisions  of  sections  ninety-eight,  ninety-nine  and  one hundred, relating to filing, publication and changes of rates, fares and charges  of common carriers shall apply to all rates, fares and charges, and regulations and practices affecting rates,  fares  and  charges  for transportation  partly  by  water  and partly by railroad, when both the water line and the railroad line are used for a continuous  carriage  or shipment;  but  the  said  section  shall  not  apply to rates, fares or charges, or regulations or practices affecting rates, fares or  charges, established  by  any  such common carrier by water for local carriage or shipment of passengers or property between points in  this  state  which are  served  by such common carrier wholly by water and independently of any railroad service.   The provisions of this chapter, and the powers  of  the  commissioner, relating  to  the  transportation of passengers and property by railroad apply to  the  transportation  of  passengers  and  property  partly  by railroad  and partly by water when both the railroad line and such water line are used for a continuous carriage or shipment  between  points  in this  state;  and  the  provisions of this chapter and the powers of the commissioner respecting common carriers  by  water  are  hereby  limited thereto,  except  as  may  be  in  this  section  otherwise specifically provided.   4. If the commissioner shall be of the opinion that through  cars  for the  transportation  of  property  should be operated over the tracks of said common carriers and that switch connection or interchange track  at a  connecting  point, if not already existing, should be constructed and maintained by such common carriers, to the  end  that  property  may  be carried  without change of cars, the commissioner shall have power after  a hearing to require by order said common carriers to receive from  each other and transport for each other such cars over each other's tracks by way  of  such  switch  connection  or  interchange track, and if no such switch  connection  or interchange track exist to construct and maintain said switch connection or  interchange  track,  and  to  make  within  a specified time not less than thirty days an agreement between them as to the terms of such receipt and transportation of cars, and if so required as  to  the division of the expense of such construction and maintenance of switch connection or interchange track; and in case such agreement be not so made within the time so specified, the commissioner shall after a hearing declare by supplemental order  the  terms  and  conditions  upon which  such  cars  shall be received and transported, and if so required the portion of such  expense  to  which  each  common  carrier  affected thereby  shall  be entitled and the manner in which any sums of money to which any such common carrier is entitled shall be paid and secured, and such supplemental order shall take effect as part of the original  order from the time such supplemental order shall become effective. Nothing in this   subdivision  shall  require  a  through  route  between  railroad companies and street railroad companies between points reached  by  such railroad companies. In case upon the termination of a lease or otherwise the  owner  or  lessor  of  a  rapid  transit railroad resumes operation thereof and thereupon such owner or lessor or the lessee discontinues or threatens to discontinue or refuses or threatens  to  refuse  to  permit operation  over  any  extension  or  extensions  of  such  rapid transit railroad or railroads or any of them, or discontinues  or  threatens  to discontinue  or  refuses or threatens to refuse to permit operation over other railroads on which such lessee had operated under trackage rights, then and in either of those  events  the  commissioner  may  order  that through cars for the transportation of passengers shall be operated over such  extension or extensions and over the tracks of such other railroad over  which  such  lessee  may  have  had  trackage  rights,   and   the commissioner  shall have power, after a hearing to require by order such operating, including the right to order such switch or other connections or interchange tracks as  may  be  necessary,  and  if  so  required  to determine  as  to  the  division  of  the expense of the maintenance and operation thereof. The commissioner may, after a hearing, prescribe  the terms  and  conditions upon which such operations shall be conducted and the manner in which receipts and expenses shall be apportioned.  Pending the hearing or hearings provided for herein, and the determinations  and orders  of  the commissioner thereon, the commissioner shall have power, if in his judgment the public interest requires it, to issue a temporary order requiring said rapid transit railroad companies  to  receive  from each  other,  and  transport for each other, such cars over each other's tracks by way of switch connection or interchange track, and if no  such switch connection or interchange track exists, to construct and maintain said  switch connection or interchange track; and upon the completion of said hearing or hearings, and  the  determinations  and  orders  of  the commissioner   thereafter   made,   the   terms   of   the  receipt  and transportation of cars, and the readjustment of compensation and expense involved, shall take effect as of the original date  of  such  temporary order of the commissioner. If upon the expiration or earlier termination of  a lease, the free transfer or interchange of passengers, theretofore in effect and permitted by the lessee of a rapid transit railroad at any point or points between the lines of the rapid transit  railroads  owned or  leased  and  operated  by it, is discontinued or is threatened to be discontinued, the commissioner shall have power by order to require  the companies,  by  which  the  said lines of rapid transit railroads may be operated after the termination of the lease, to continue or re-establish  such through routes formerly existing, and  to  establish  joint  rates, fares  and  charges  for the transportation of passengers thereon in the manner provided by subdivision three. Pending the  hearing  or  hearings provided   for   herein,  and  the  determinations  and  orders  of  the commissioner thereon, the commissioner  shall  have  power  to  issue  a temporary  order  requiring  the  companies then operating said lines of rapid transit railroad to restore the said free transfer or  interchange of  passengers  at  the  point  or points on said rapid transit railroad lines where the said free transfer or interchange was formerly in effect and permitted; and upon the completion of said hearing or hearings,  and the  determinations  and orders of the commissioner thereafter made, the terms and conditions under which the portion of said joint rates,  fares and  charges  to  which each company shall be entitled and the manner in which the same shall be paid and secured, shall take effect  as  of  the original date of such temporary order of the commissioner.