Each commission is made up of five members, appointed for five years, at salaries of $15,000 per year each. The term of one member of each commission expires each first day of February. The governor appoints the commissioners "by and with the advice and consent of the Senate" and may remove any commissioner "for inefficiency, neglect of duty or misconduct in office" after a formal hearing. Each commission appoints a counsel at $10,000 per year, and a secretary at $6,000 per year, whom the commission may remove at will. Each commission has power to appoint additional officers and employees and to fix their salaries. The commissioners must be residents. of the districts in which they serve. No commissioner or employee of a commission shall hold stock or bonds in, or have any official relations with, or solicit or receive any favors from, any public service corporation under the act. The offices in New York City and Albany must be open from 8:00 A. M. to 11:00 P. M. "every day in the year" with responsible officers in charge. All the expenses of the Second District Commission are paid from the state treasury; the salaries of the commissioners, counsel, and secretary in the first district are paid from state funds also.44 For the remainder of its needs the First District Commission must make requisition upon the Board of Estimate and Apportionment of the city of New York, and, if the requisition is not paid, "may apply to the appellate division of the supreme court in the first department . . . . to determine what amount shall be appropriated (for the purposes specified in the requisition) and the decision of said appellate division shall be final and conclusive." 2. THE DUTIES OF PUBLIC UTILITIES The laws creating public service commissions in the various states contain also codifications of the common law and other duties imposed on those industries "clothed with a public interest". The states differ markedly in the number of industries. which are put under commission control, but all say to the in densed form the jurisdictions of the two commissions. The counsel of the First District Commission has written a series of opinions amplifying the law in the matter of conflicting jurisdictions. See the Annual Reports. "The First District Commission receives, then, only $91,000 from the state treasury. dustries affected that certain things they must do, while certain other things are tabooed. The various classes of industries under the New York commissions differ somewhat in both the negative and positive duties laid upon them by the law. Railroads, street railroads, and common carriers shall provide safe and adequate, just and reasonable service and facilities, and shall charge there for only just and reasonable prices. Side-tracks must be constructed where safe and reasonable, tariffs must be published and kept on file; discriminations in prices or service, or unreasonable preferences to some persons over others are prohibited; passes are prohibited, except to employees, but commutation tickets, special rates to children under twelve and to school children, and similar special rates are not necessarily illegal.45 False billing is prohibited; a reasonable number of cars for car-lot shipments must be furnished on demand; a short haul must never cost more than a long haul within which it is contained if in the same direction; annual reports must be filed with the commission; and notice of accidents shall be given promptly in a prescribed form. Gas and electric companies, and municipalities operating plants, shall furnish safe and adequate, just and reasonable service and facilities, at just and reasonable charges, and special rates, rebates, and all similar devices of discrimination are forbidden. However, sliding scales may be established. Likewise every telegraph corporation and every telephone corporation shall provide adequate, just, and reasonable instrumentalities, facilities, and services at just and reasonable charges. Rebates and other discriminations of all kinds are prohibited. All schedules of rates and charges must be printed and filed with the commission. It will be seen that most of these commands and prohibitions are restatements in statute form of old common law principles, and that the terms of the common law are used. The enactment of these principles in statute form creates the assumption that each company affected will at once make all its rates and services just and reasonable. Formerly an unreasonable rate could be lowered only by a special law or after court proceed 45Such rates are legalized by an amendment passed in 1911 to remove a former restriction on the powers of the commissions. Laws 1911, chap. 546. ings. Now it is a punishable offense to continue to collect a rate declared unreasonable by the commission. 3. POWERS OF THE COMMISSIONS Having created the two commissions, and clearly restated the duties of public utilities, the New York law proceeds to vest the commissions with adequate means and power to enforce compliance with the law. The great difficulty had been that no authority adapted to the work of enforcing the common law duties of these corporations had existed. This defect the Public Service Commissions Law of New York and that of Wisconsin of the same year came forward to remedy. It is clear that Governor Hughes and the New York legislature intended that the law should be enforced. Not only were the commissions lavishly provided with funds, but they were also given very broad powers.46 Each commission, within its jurisdiction, has power to examine all the properties and to investigate all the affairs of railroads, street railroads, and common carriers, to examine their books, contracts, and other documents, to require that the annual reports have a certain form, and that additional reports be given. The commission may also require that every accident be reported immediately in a certain form, that complaints of aggrieved persons be satisfied, that physical connections and joint rates be established where reasonable, that the transfer privilege be extended, that repairs and improvements be made, that time schedules be changed, and that accounts be kept in a prescribed form. Besides, the commissions have power to, and must, fix reasonable maximum rates, and order reasonable and adequate service.47 No new road can be built, or old one extended, or any franchise whatever exercised without the permission of the proper commission. The commissions have complete control of The powers of the commissions are given in considerable detail, and it is impossible in this paper to give more than a brief outline. 47Throughout the law it will be found that some powers are permissive and others are obligatory upon the commissions. In a matter like this one of fixing a reasonable rate, it is clearly illegal that an unreasonable rate should stand. Therefore, if the corporation has not itself complied with the law, it is clearly imperative that some one put the legal principle into effect. A law can not be obeyed or disobeyed at will. On the other hand, in the matter of uniform accounts, special reports, and similar matters, the powers of the commissions are largely permissive. the transfer of franchises and stocks, and the acquiring or holding of stocks by one corporation in others under their jurisdiction. No stocks or bonds or other paper may be issued by these corporations save for certain specified purposes, and then only after the proper commission has given permission. Reorganizations of corporations are completely within the control of the commissions.48 Should a railroad or street railroad corporation, or a common carrier, violate any part of the law, or refuse to obey an order issued by a commission, a forfeiture of not over $5,000 can be enforced for each offense in any proper court. Minor forfeitures are also provided, and summary proceedings may be begun by a commission in the state supreme court whenever the commission has reason to believe a subject corporation is violating the law or disobeying an order. Over gas and electric corporations the commissions have similar powers. Rates, service, repairs, new capitalization, reports, uniform accounts, reorganizations, the exercise of new franchises, and transfers of franchises, are strictly subject to control by the proper commission.49 The inspection of gas and electric meters is made obligatory upon them. The maximum forfeiture for violating the law or disobeying an order is $1,000 for each distinct offense. Summary proceedings are provided for. The Second District Commission has over telephone and telegraph corporations the same ample powers as both commissions have over gas and electricity companies. The forfeiture is the same; provision is again made for summary proceedings. In carrying out these various powers, individual commissioners may make investigations, subpoena witnesses, and administer oaths. 4. PROCEDURE BEFORE THE COMMISSIONS, AND COURT REVIEW The commissions may make investigations on their own initiative, and some important ones have been so made. Many other matters come before the commissions on complaints of citizens who ask relief, and on requests of corporations for power to 48A statement like this will be understood to mean, of course, "save where the courts have intervened". 4Even municipalities must get the permission of the commission before beginning to build a municipal plant. do certain things requiring special permit. Many matters need no formal handling, but can be disposed of by correspondence or over the telephone. Even in formal cases a single commissioner may make an investigation, and his finding becomes that of the commission when approved by the commission. The commissions are not bound by any rules of evidence; each has, under the power given it by law, made certain rules of procedure. Witnesses may be subpoenaed and paid for their services. If any witness refuses to come, he can be compelled to show cause within five days before the nearest supreme court justice, who may commit him to jail if no good cause is shown for his refusal to testify. Witnesses are immune from punishment in any matter to which they have themselves testified, but corporations can not be in this way made immune. Orders are served by delivery in person or by mailing to some responsible officer of the firm concerned, and the company must reply within a specified time as to whether or not it will obey the order. Under any circumstances, the order takes effect on the day specified. Rehearings may be granted, but the original order continues in effect until abrogated. Whenever a commission brings suit in a New York court, the action has precedence over every other civil action except election causes. The same right may be insisted upon in any action in which the commission is defendant or in which it has intervened through its counsel. The right of court review of any action of a commission is tacitly recognized throughout the law. III. THE WORK OF THE NEW YORK PUBLIC 1. THE FIRST DISTRICT COMMISSION The work done by the First District Commission is authoritatively reported in two publications, the Proceedings, and the Annual Reports, running already to a considerable number of volumes. In addition the commission decided in 1911 to issue thereafter special volumes reporting the decisions.50 There are, Annual Report (1911), vol. 1, pp. 9-10. |