PUBLIC UTILITIES-POWER OF COMMISSOIN TO CHANGE RATES SET IN FRANCHISE GRANTED BY LEGISLATURE

Authors

Abstract

The Dry Dock Company was given franchises by the legislature to operate street railways in New York City, by Laws 1860, c. 512, and Laws 1866, cc. 866, 868, 883. These special laws fixed a five-cent maximum fare. Much later, the Public Service Commission Law (Cons. laws, c. 48) was enacted. Sec. 29 of this provided that, "unless the commission otherwise orders, no change shall be made in any rate * * * which shall have been filed and published by a common carrier * * * except after 30 days' notice to the commission * * * and all such proposed changes shall be shown by printing, filing, and publishing new schedules * * *." Sec. 49 enacted· that "Whenever the commission shall be of opinion, after a hearing, * * * that the maximum rates * * * chargeable by any * * * street railroad * * * are insufficient to yield reasonable compensation for the service rendered, * * * the commission shall * * * determine the just and reasonable rate * * * to be thereafter in force." The company, whose five-cent rate was on file with the Transit Commission, on June 22 filed a seven-cent tariff to become effective July 24th. The Commission refused to allow this new rate; although the company claimed that it had complied with sec. 29 and that this section was intended to create a means whereby a fare increase might be obtained, although in excess of that allowed by the franchise. The appellate division dismissed applications for certiorari to the Commission to review the passenger tariffs, 228 App. Div. 354, 329 N. Y. S. 501. On appeal, affirmed and held that sec. 29 did not authorize the carrier to increase its rate fixed by a prior act of the state legislature. In re Dry Dock etc. Co., 254 N. Y. 305, 172 N.E. 516.

Recommended Citation

PUBLIC UTILITIES-POWER OF COMMISSOIN TO CHANGE RATES SET IN FRANCHISE GRANTED BY LEGISLATURE, 29 Mich. L. Rev. 524 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss4/35