[Vol. 21] Public Service Commission, Second District

switch connection between said railroads be established in Batavia, 203.

Circumstances under which a railroad cannot be compelled to permit another railroad to use its tracks and terminal facilities. The Lehigh Valley Railroad and the New York Central Railroad at Batavia run within less than a mile of one another. Some years ago these roads were connected by a switch in order to permit the Lehigh Valley Railroad to reach Niagara Falls. Subsequently this switch was disconnected and about one hundred feet of the switch track torn up. The remainder of the switch track is still intact and in good condition although not used between the two railroads but merely is a side track used by a wood working company. The purpose of this case is to compel a switch connection between the two lines at Batavia. Held, that the purpose of the applicant is to facilitate the handling of freight at one city and that the rule regarding terminals applies to the present application and that a common carrier cannot be required to permit or allow any other such carrier to use its tracks or terminal facilities, and that the Commission has no authority to grant the required relief. Application denied.

Buck, George S., In the matter of the complaint of, as Mayor of Buffalo, and Town of Cheektowaga, Erie county, against William J. Judge, and the Peoples Gas Light and Coke Company of Buffalo, lessor, as to price proposed to be charged for manufactured gas, as to the quality of the gas, as to service and facilities, and as to plant and appliances. Also complaint of respondents, in answer, asking that the increased rates be approved, 85.

Service defects when considered as factor in rate making public utility corporation operating under several franchises limited and unlimited may claim freedom from such limitation

the building of an auxiliary plant to cheapen rates cannot be compelled· basis upon which rates ought to be considered - rights of public in existing rates - power of Commission to fix a fair commercial price differential between public and private rates for lighting. Unless the service given by a public utility is inherently bad, or a service generally below the standard is attempted to be supplied, or the defective service is so prolonged as to give it a chronic aspect, complaints against local and temporary failures of service such as are common to all public utilities cannot properly be considered as a factor in the making of the rate. The Queen City Gas Light Company laid mains in the streets of the city of Buffalo under an act of the Legislature which limited the price to be charged for gas. Later the company was merged into the Peoples Gas Light and Coke Company of Buffalo, and the latter company leased all of its property to the Buffalo Gas Company, which also became the owner of the stock and bonds of the Peoples Company. The present operator has become the owner of the franchises and properties of all of the companies, including

Public Service Commission, Second District [Vol. 21]

the lease and including also a franchise which was held by
the Buffalo Gas Company to lay and maintain mains in all
of the streets of the city of Buffalo, which contains no limita-
tion upon the price to be charged. Held, that the limitation
upon the price which might be charged by the Queen City Com-
pany does not apply to gas furnished from mains laid under
its restricted franchise, in streets included within the unre-
stricted franchise of the Buffalo Gas Company, and now operated
by the common owner of both franchises. A gas light com-
pany cannot be required by the Public Service Commission
to construct and maintain a coke plant on the theory that the
byproduct gas from such a plant would provide the public
with a cheaper supply of gas than the company is now furnish-
ing. The public is entitled to be served by a reasonably
modern plant which is not obsolete or wasteful in its method
and which turns out its product with some reasonable degree
of economy. And where by reason of antiquated plant and
methods, and of the results of ruinous competition the manu-
factured gas supplied by a lighting company must be sold
at a price greatly in excess of that generally prevailing, in
order to secure a reasonable return on the investment, the
Commission has power to fix what it considers a commercial
price what the traffic will bear — having also a close relation
to what would be an approximately fair return on the invest-
ment in a reasonably modern plant conducted with a fair degree
of efficiency; and in arriving at such a rate can be guided
to some extent by rates prevailing in other communities of
comparable size and location. A slight differential between
rates for public and for private lighting is not vital where the
relation of each rate to the total revenue is considered in the
making of both rates, and where there is some saving in
expense on the gas furnished the municipality it is proper
that the rate for such gas should be slightly lower than the
rate for private lighting.

Carlucci, Joseph, In the matter of the petition of, under chapter
667, Laws of 1915, for a certificate of public convenience and
necessity for the operation of a stage route by auto busses in the
city of White Plains (it being proposed that the route shall be
operated to the incorporated village of Port Chester), 215.

-

-

Stage route- certificate of public convenience — circum-
stances under which such certificate will be granted. Where
several individuals have been for a number of years operating
automobiles along the same streets and highways independently,
an application for a certificate of public convenience and neces-
sity in behalf of all of them based on a business agreement
between them to combine their operations into one service will
be granted. Objection of a present certificate holder who has
but recently made his application will not be sustained where
it is not based on a prior building up of a transportation
business on the route in question.

[Vol. 21] Public Service Commission, Second District

Central New England Railway Company, In the matter of the complaint of Charles M. Mark and Frederick Mark relative to conditions, service, and operation on the Rhinecliff Division of. Petition of United States Railroad Administration - Central New England Railway- to discontinue Cokertown Station, 184.

-

Basis upon which the business at a station should be figured - when standardization of rates will not control. Crediting the actual cost turned in by an agent as representing the business of that station and then allocating that business to lines by length of haul, is incorrect in theory, in that it fails to consider public convenience as an element. Such standardization will not be permitted in a given case to deprive the public of reasonably necessary service unless the standardization fits the particular case- - circumstances justifying partial discontinuance of a station petition as amended on hearing granted with limitations.

Chautauqua, In the matter of the complaint of residents of the county of, against the Chautauqua Traction Company and Jamestown, Westfield and Northwestern Railroad Company as to proposed increases in passenger rates, 667.

A

The order of the Federal Director General requiring the cancellation of mileage books and the redemption of unused portions of same cannot be reopened after the relinquishment of the roads where such redemption price has been paid. schedule of rates established by transportation companies, after the relinquishment of Federal control, based upon the rates fixed by the Director General during such control, may be passed upon by the Commission. This case arises from an application for the review of a schedule of rates established by three transportation corporations, the rates being alleged to be inequitable and excessive. It appears that when the Federal authorities took over the transportation companies, the Director General fixed a new schedule of rates and ordered the companies to redeem and retire the outstanding mileage books. Upon the relinquishment of the roads by the Federal government, the rates fixed by the government became of no effect. The companies herein interested established temporary rates but soon made application for a rate schedule which practically re-established the three cents a mile rate fixed by the Federal authorities. One of the questions here presented is as to the authority of the Commission to compel the said roads to return to the former owners mileage rate books which had been surrendered and redeemed provided such owners return to the roads the said redemption price. Held, that the mileage book redemptions effected under the Federal order and before the relinquishment by the Federal Director General were transactions completed under Federal authority; the rights of the parties being thus fixed, the Commission was without authority to revive them. Transportation corporations in fix

Public Service Commission, Second District [Vol. 21]

ing their tariffs should bear in mind that the Commission may examine as to such books, their sale and use. The companies interested herein are operated separately but have certain arrangements and agreements as to rights and other matters. None of these agreements, however, have ever been filed with the Commission. It is claimed that the fares established by the companies are excessive. The change in rates resulted in a decrease of passengers carried, out of all proportion to the small increase of revenue. A large number of fares had been increased from five cents to ten cents as a minimum fare. The Commission suggested to the carriers that they reduce such minimum fare from ten cents to five cents and the companies conceded this and now have a minimum fare of five cents except as herein detailed. The figures before the Commission show that an increasing deficiency in the revenues of these companies has existed for a long time. To avoid bankruptcy this deficiency must be met and in view of the condition of the roads, held, that the rates complained against are not unreasonable.

Cohoes Power and Light Corporation, In the matter of the petition of, for authority to purchase all of the outstanding capital stock of Cohoes Company and Cohoes Gas Light Company and to merge said companies, 209.

An operating company, owning the franchises and plants of two other companies, granted authority to buy all the outstanding stock of such companies and to merge said companies with itself. A company holding the franchises, works and systems of two subsidiary corporations granted permission to purchase at par the outstanding capital stock of two similar companies and to merge said companies with itself - measures to be taken by the operating company after the actual merger.

Delaware and Hudson Railroad, In the matter of the protection of grade crossings of the tracks of, at Elsmere and Delmar. Order to show cause, 19.

Railroad crossings — audible-visible signals installed. All of the crossings in question are at the intersections of improved State highways with main lines of railroads. The highways are used extensively by automobiles. Conditions relating to the crossings examined and held, that audible-visible signals should be installed as follows: 1. Facing southerly at the crossing between Elsmere and Delmar; 2. Facing southerly at the Elsmere station crossing; 3. A pair of signals facing each way at the Guilderland Center crossing; 4. A signal facing easterly at the crossing of the Guilderland road about two miles south of South Schenectady.

De Mauriac, Rev. Henry de Wolf, of East Aurora, Erie county, In the matter of the complaint of, against New York Telephone

[Vol. 21] Public Service Commission, Second District

Company, as to alleged infrequent publishing of telephone directory, 462.

The practice of issuing two telephone directories a year is reasonable under the facts here shown. The practice of the telephone company in publishing only two directories a year and of connecting a caller with a subscriber not listed in the directory is the basis of the complainant's contention herein. A public meeting was given in regard to the allegations of the complaint and both sides appeared. It was shown by the company that throughout the State, with the exception of New York city, Buffalo and Rochester, only two directories are issued in each year. The details of the telephone company's operations in the community in question herein were specifically shown. Upon all the facts, held, that the publication of two telephone directories each year in complainant's town is reasonable. Complaint dismissed.

Dutton, A. C., Lumber Company, In the matter of the petition of, under section 53, Public Service Commissions Law, for permission to construct and approval of a franchise from the city of Poughkeepsie to construct (at grade) a single track railroad siding across Dutchess avenue in said city, 237.

An industrial sidetrack put in primarily for the convenience of one business establishment may nevertheless be regarded as within the scope of transportation and as an extension of terminals. This application was made for the purpose of securing the approval by the Commission of the putting in of an industrial sidetrack in a city where the local authorities had granted a franchise for its construction across a public street therein. Opposition developed subsequently to the granting of the franchise and the Commission held a public hearing in the matter. The opposition was based upon three grounds, first, that such sidetrack would impair the value of adjacent property; second, that it would impede safe access to the Hudson river; and third, that the operation of such siding would create a danger of fire and explosion because of the proximity of gas tanks and one oil tank. These grounds of opposition were dismissed on the facts shown and on actual examination of the said siding and the adjacent territory and the application was granted on the ground that the operation of the franchise in question was a matter of public convenience and necessity as part of the business of transportation and that such tracks be regarded as an extension of terminals.

East Hampton, L. I., In the matter of the complaints of summer residents at, against East Hampton Electric Light Company as to service charge. Also complaint of the company, in its answer, asking that present rates for electricity be approved, 189.

Purpose for which a monopoly of its franchise territory is granted to a utility company such a company must purchase power where it can do so cheaper than it can produce its own

-