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REPORT.

NEW YORK CITY, January 1, 1908.

To the Honorable, the Legislature of the State of New York:

The Public Service Commission for the First District respectfully submits herewith its first report, covering the six months ending December 31, 1907, as required by statute.

The Public Service Commissions Law (chap. 429 of the Laws of 1907) received the approval of the Governor upon June 6, 1907, and took effect July 1st. Upon June 28th the Governor appointed the following Commissioners for the First District: William R. Willcox, Chairman, to hold office until February 1, 1913,

William McCarroll, to hold office until February 1, 1912,
Edward M. Bassett, to hold office until February 1, 1911,
Milo R. Maltbie, to hold office until February 1, 1910,
John E. Eustis, to hold office until February 1, 1909,
and these appointments were duly confirmed by the Senate.

Upon July 1st, each of the Commissioners qualified by taking the constitutional oath of office. Temporarily the Commission established its headquarters in the offices previously occupied by the Rapid Transit Railroad Commissioners at No. 320 Broadway, New York City, Borough of Manhattan; but finding the available space inadequate for the performance of its work, the Commission subsequently removed all of its offices to the Tribune building, No. 154 Nassau street. Early in July, Mr. Travis H. Whitney was elected Secretary of the Commission and shortly thereafter Mr. Abel E. Blackmar was elected Counsel. Rules of procedure were also adopted and appear in full in an appendix.

Jurisdiction of Commission.- The Public Service Commissions Law is published in full as an appendix. In brief, it provides for the creation of two Public Service Commissions for the State of New York. The Public Service Commission for the First District has jurisdiction over the counties of New York, Kings,

Queens and Richmond - New York City. The Public Service Commission for the Second District has jurisdiction over the remainder of the State. Each consists of five men appointed by the Governor by and with the consent of the Senate, and after February 1, 1909, each appointee will serve for a period of five years.

The Public Service Commissions succeeded to the powers of the Railroad Commissioners, the Commission of Gas and Electricity and the State Inspector of Gas Meters. These bodies had jurisdiction over the entire State and ceased to exist upon June 30, 1907. All of their powers and duties within the area of Greater New York were transferred to the Public Service Commission for the First District. Many other functions which had not thereto fore been exercised by any State or local authority were conferred upon the Commission, and thus it came to have the power to control, supervise, and regulate (see section 5 of the Act):

(1) Railroads and street railroads lying exclusively within that district.

(2) Street railroads any portion of whose lines lies within that district, and all transportation thereon.

(3) Such portion of the lines of any other railroad as lies within that district, so far as concerns the construction, maintenance, equipment, terminal facilities, and local transporation facilities, and local transportation of persons or property within that district.

(4) Any common carrier, operating or doing business exclusively within that district.

(5) The manufacture, sale or distribution of gas and electricity for light, heat and power in said district.

The Board of Rapid Transit Railroad Commissioners for New York City, was also abolished by the act, and its powers and duties transferred to the Public Service Commission for the First District. Thus, this Commission has a dual character. Upon the one hand, it has most full and complete powers of regulation over all public service corporations. Upon the other, it has the important task of planning and constructing, possibly also of equipping and operating, rapid transit lines, whether subway or elevated. So far as the transportation problem is concerned,

therefore, the Commission has two strings to its bow; it may build subways, as its predecessor did, the Rapid Transit Board; and it may order existing companies to increase their service, adjust fares and freight rates, improve their equipment, etc.a function which neither the Rapid Transit Board nor the Railroad Commissioners had to the extent which this Commission now possesses and has been exercising for the past six months.

GENERAL REVIEW OF THE YEAR.

In subsequent chapters of this report, each phase of the work is fully discussed, but in order to assist one to gain a general view of the many functions exercised by the Commission and the large amount of work accomplished, a short general review is first given.

Subways Under Construction. Upon entering office (July 1, 1907), the Commission found the Manhattan-Bronx subway (built under contract No. 1) almost completed. The main portion of the line was opened in 1904 and as each section had been completed, it had been put in operation. The Manhattan-Brooklyn subway (contract No. 2) had also been completed as far as the Battery and was being operated. Work was progressing upon an extension from Two Hundred and Thirtieth street to Van Cortlandt Park in the Bronx, which will cost about $700,000 when finished, and which will place one of the largest parks of the city within reach of the congested East Side and the whole West Side for a five-cent fare.

A ventilating system was being installed in the subway, at an expense of $500,000. Actual work was just beginning on the so-called Brooklyn subway loop, designed to connect the Brooklyn bridge, Manhattan bridge and the Williamsburg bridge, by a route through Centre street, Manhattan, at an estimated cost of $10,000,000. The tunnel portion of the Manhattan-Brooklyn subway, extending from the Battery to Borough Hall, Brooklyn, was nearing completion.

The Rapid Transit Board had authorized the drawing of a contract for certain changes in the subway at Ninety-sixth street whereby grade crossings would be eliminated. Realizing the importance of pushing all subway work to immediate completion, the Commission proceeded at once with this matter and se

cured the approval of the Corporation Counsel and the Board of Estimate and Apportionment, which set aside $850,000 for the work. Consents of property owners are now being obtained and the requisite number has nearly been secured. The officials of the Interborough Company have testified that when this change is completed, it will then be possible to operate one-third more local trains during the rush hours than now pass this point.

The Commission found a great deal of criticism upon the part of merchants in Brooklyn because of the torn-up and obstructed condition of the streets, due to subway construction on Fulton street and Flatbush avenue. An engineer was detailed to see that the contractors keep the streets passable and that they carry on the work with a minimum interference with business.

Fourth Avenue Subway. Before the Rapid Transit Board ceased to exist, it set a hearing for the 25th of July upon the forms of contracts for the so-called Fourth avenue subway in Brooklyn. This line was originally a portion of the "Tri-Borough route," extending from the southern part of Brooklyn, through Manhattan to the northern part of the Bronx, but the Rapid Transit Commission had asked the Board of Estimate to rescind its former determination upon this matter and approve cnly the portion from Manhattan bridge to Fort Hamilton and Coney Island.

After full discussion of the advisability of this subway the Commission determined that the plans should be continued. Upon the recommendation of its newly appointed chief engineer, the Commission deemed it advisable to change the plans so as to climinate certain heavy grades, and also to increase the headroom in the subway from thirteen and a half to fourteen and a half feet. This last change will make it possible to operate steel cars used by suburban lines through the tunnel, and if found desirable when the line is constructed and ready for leasing to run it in connection with suburban roads, and thus bring the suburbanite from Long Island right into the heart of Manhattan. This was impossible under the plans as originally drawn.

These changes rendered necessary a complete redrawing of the plans and contracts and delayed to a certain extent advertising for bidders, but the alterations are a decided improvement

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