CONTROL OF CORPORATIONS.

Dominion, Volume 1, Issue 242, 6 July 1908, Page 11

CONTROL OF CORPORATIONS.

THE NEW YORK LAW. ' AN. INTERESTING EXPERIMENT; ; Easily the .most important lejjisiative in/loyatioh in rccont years,, in the, United, States " was • tH.c : iaiv. adopted 'in , New York State at the, instigation of Governor Hughes creat- /- ing '£\ public -service. ;commission > for the con-1 railway,- lighting,; gas,- electric and ; other, corporations,, of a - semi-public nature. Tho commission (writes'the New York coi > - 'resporideht of tlio "Age") has been" tested by '; a-year's>operation, with results -that have- ; surpassed; oven the : sanguine hopes of tho authbrs -bf; the measure. Almost unlimited powers; are.:, vested-in; the commission. It may,'fix : railway charges, .condemn rolling stock; brder.mor.o'trains ,or moro street' cars to> bo run, reduco gas <or. elcctric rates, and prevent conibinations 1 of 1 corporations that would ho 'detrimental to the public interest.- . deeisidns are final, appealable only whon . theroj has ;beeri; .confiscation of property. important, reforms, have.been introvtlio . street and suburban .railway . ;. systems of:; New' York city as a; result of, tho. commission's.;' thbrough investigation. Moro -' . than; 2,0p0,000. people, ride, on tho street cirra and suburban, trains of New Y'ork city—. , v/liich . is 'a -greater number. of : passengers than'Usj-'carried ;by the steam railroads of . tho.-eijtire country. cach"day. The problem • : is therefore; one of. no mean magnitude. On orio line, about':'which: there werev ; many .-.'complaints .-ofinadequate service & secret'.investigation'' v/as conducted. In.■Bpdctbrs ( ,in the employ of the '! commission . hired.'.rooms '.along :thd route from which observation.:.of'.tho :trains ■ could, be.' made;', ' These| irispectoi's made, record of tho ,'num-.; '. ber'.:of : .carriages in each' .train, - the number.' of.tjpasSengors sjtting.-and standing;. In ad-'-'ditidp,'- inspectors in plain 'clothes travelled ,\npjahdjdqwn.'tlio'.lino".-- Thus tlio, observation M'B^;made' ) the' eoni-,, ipaiiy.'' As . a; rejsult'Vof ; th'e ; ':facts ascertained : V;he'_*cpinmissi6n- ordered tho accoriimpdation to , be';ihcreased 20,p'er cent., and-tho' order was. obeyed. , : Iri' the caso-flf -the' surface'cars .in .'thb-vcity*' ' '«f :New; York,- inspectors ; were:, stationed,:'at, street:'.corners. Each-' man : 'c&rried; a; pad-; small enoiigb ;.to fit- into' :of'--liis ; haiidj :'in he' niado notos. ; without, ! 'at-: ..tractiiig iattejation.-- ,Increasei!'.6f:-tars;i*run.i : .were-drdofedVon several 'of. the.maiii streets. Complaint being., made - t.hat' tlic' poor servico/, was in part ''d\ie";to tlio condition of- the : cars, tho : commission-'had'-' engineers inspect the .rolliiig . stock. Their reports - shewed-. pspy.;tlcfects, and the commission -'issued B , sweeping order for, the overhauling. of all the;;car3;:.;.Onj. the ; elevated -lines -new st-a-. tioris;^,'stairways,'!: shelters,;, etc., have ':been' : :'o r dered/in':i;scprß,_of places. .The people .of which is-part of New -York ' Citjy . complained . that. - tho railway companies; wore giving a very poor service! .The over the lines-in person: .fHd . ordered. ari--inrcsti^tiori.::.'TOe' : in-. ':'.W|jy. ; ; .was ljko • tbe-'com- ; • pany-beinc .represented. by lawyers and witunder/.Oath.:. 'The. company uo'v'ndcd itself.. Tho result was ifti order by : comiiiissibn for the- rehabilitation,of tho equipment - and ' .an improvement 'of'. the ■

, Individualcomplaints .by citizeni; are. given prompt attention by. the comnlissioiii- A man living in the!outskirts of the city' wro't'o (hat -, the.:trains i of- the Now ' York .Central /Railway Company. fre_quently. blocked' a..crossipg near his residencß for an hour ,at a 'time.: Tlio commissipii: notified, thp.' compahy'ixtno nuisancp. must stop/;'and.'it 'did stop.-'- 'A secretinspection', jras: mado of the subway.-railroad • system-of the city; -lasting a' week, and tho outcome was.' an/ orddr-:, directing' a ; 20 per ,cent:/increase in tho number of- train's dunii"' rush-hours. "

. -Not only are tho railroad and tram com-. : -pani.es; kept.;, up . to. scratch. An . . important ■"a?. 1 !™: . of - the commission's' work is. tho oihcial inspection ' of; gas' meters..-; Every met 9s'^nat r . goes'into,,sorvicei,isT iiowf^flrstt; exaniiiied -.by, an' expert. iiu.tha i empi6y.. J .of-, . the--commission. What Vis '.more';e Y DI 7.. person can have his' meter—gas or electric—mspected_ '.-by- i,the''" commission! f If. t IS - i? n i the company pays the tee; , which is seldom' over 2s:, but if tho rooter is accurate, the .consumer pays'; Of S as '< meters .inspected fa--one'month'. 228 < ■were found .be . defective, ;and -in •• most ' casos.the flow,was;;fast, :which' means that" the consumer,-was payiiig.'for more than'he was using.':: Heretofore as . soon as . a "dis-"-pute, arise over'!; charges;. >hb gas'./company • toojc, out. r the_ meter, leaving the';? citizen '' ''*?iy^' gas : the ; riew>egii]atioris' or the commission a gas company cannot dis--1 ■ :^ V * CO,T settlement ■ of;a : ■

■All. franchises, under, which public servico colons have .received, the -permission ■ i -''Wlv.-• y or . State to-operate must bo ff a 9 e ß o !^^. file ;with;.the ' commission, and mi?-— aro " °P on "to public' inspection-. iJio advantages of this are great.: A'sub-;-urban clergyman Ascertained from these rcc9™?;.s',a£ a lighting'-, company got' its franchise the .understanding 'that: .it : would furnish-.free schoolii. and Ihe company had. conveniently forgotten its' undertaking, but the commission 'ordered tho company '; to- refund, money' it had • collceted from abe churches,'and to continue to provide lighting freo.'.^ • Is r o ; .-public.;service.,corpordtion. can issue Ecw^stocks-.or..^bonds.without the approval .tho -commission. This prevents watering and over-capitalisation. Several stock issues " a )' e ; been vetoed ;-by- the' commission, and pertaission to merge two or more companies bas; been' refused in more than one .in.' stance.-. ■ •: ." .-.-- , -. .

.. The , f ?jegoing aro bnt'somo of the activities of the new commission, but enough'has been v.nttoii to show that' this ne>v .body is, doing;.jvery important work. It has, in fact, ? made v tho peoplo of New York silent tiin S ln ■ 6ver y service"'-corpora*'