§ 119 — Rates and service to be fixed by the commissioner

New York § 119

• Jurisdiction: New York
• Law TRA: Transportation
• Art. 5: The Powers of the Commissioner In Respect to Common Carriers

Text

§ 119. Rates and service to be fixed by the commissioner. 1. Whenever\nthe commissioner shall find, after a hearing had upon his own motion or\nupon a complaint, that the rates, fares or charges demanded, exacted,\ncharged or collected by any common carrier subject to his jurisdiction\nfor the transportation of persons or property within the state, or that\nthe regulations or practices of such common carrier affecting such rates\nare unjust, unreasonable, unjustly discriminatory or unduly\npreferential, or in violation of law, or that the maximum rates, fares\nor charges, chargeable by any such common carrier are insufficient to\nyield reasonable compensation for the service rendered, and are unjust\nand unreasonable, the commissioner shall with due regard among other\nthings to the estimated prospective earning capacity of such property at\nthe rate of fare at the time fixed and existent and to a reasonable\naverage return upon the value of the property actually used in the\npublic service, and to the necessity of making reservation out of income\nfor surplus and contingencies, determine the just and reasonable rates,\nfares and charges to be thereafter observed and in force as the maximum\nto be charged for the service to be performed, notwithstanding that a\nhigher rate, fare or charge has been heretofore authorized by general or\nspecial statute, and shall fix the same by order to be served upon all\ncommon carriers by whom such rates, fares and charges are thereafter to\nbe observed.\n At any hearing involving a rate, the burden of proof to show that the\nchange in rate if proposed by the common carrier, or that the existing\nrate, if on motion of the commissioner or in a complaint filed with the\ncommissioner it is proposed to reduce the rate, is just and reasonable\nshall be upon the common carrier; and the commissioner may give to the\nhearing and decision of such questions preference over all other\nquestions pending before him and decide the same as speedily as\npossible.\n Whenever the commissioner shall find, after a hearing had upon his own\nmotion, or upon a complaint, that the rates, fares or charges demanded,\nexacted, charged or collected by any common carrier subject to his\njurisdiction for excursion, school or family commutation, commutation\npassenger tickets, half fare tickets for the transportation of children\nunder six years of age, or any other form of reduced rate tickets for\nthe transportation of persons within the state, or joint interchangeable\nmileage tickets, with special privileges as to the amount of free\nbaggage that may be carried under mileage tickets of one thousand miles\nor more within the state, or that the regulations or practices of such\ncommon carriers affecting such rates are unjust, unreasonable, unjustly\ndiscriminatory or unduly preferential, or in violation of law, or that\nthe maximum rates, fares or charges collected or charged for any of such\nforms of reduced fare passenger transportation tickets by any such\ncommon carrier are insufficient to yield reasonable compensation for the\nservice rendered, and are unjust and unreasonable, and whenever the\ncommissioner shall find, after a hearing had upon his own motion or upon\na complaint, and upon investigation, that the sale of any form or forms\nof reduced passenger ticket heretofore sold or used upon any railroad or\nstreet railroad within the state, the use or sale of which ticket or\ntickets has been discontinued within five years prior to June thirtieth,\nnineteen hundred and eleven, will be just and reasonable and not in\nviolation of any provision of this chapter or other provision of law,\nthe commissioner shall, with due regard, among other things, to a\nreasonable average return upon the value of the property actually used\nin the public service and to the necessity of making reservation out of\nincome for surplus and contingencies, determine the just and reasonable\nrates, fares and charges to be thereafter observed and enforced as the\nmaximum to be charged for such mileage, excursion, school or family\ncommutation, commutation, half fare or any other form of reduced rate\ntickets for the transportation of persons, or joint interchangeable\nmileage tickets with special privileges as aforesaid, and shall order\nthe sale and use thereof to be restored, or any of the kinds of tickets\nherein specified or any other form of reduced rate ticket for the\ntransportation of persons within the state, upon any railroad or street\nrailroad within this state, upon which railroad or street railroad any\nsuch form of ticket or tickets for the transportation of persons within\nthe state, have, within five years prior to June thirtieth, nineteen\nhundred and eleven, been sold or used, and shall determine and prescribe\nthe reasonable and just rates, fares and charges to be thereafter\nobserved and enforced as the maximum to be charged for any of such form\nof ticket or tickets for the transportation of persons within the state,\nall of which acts fixing such rates, fares and charges or requiring the\nrestoration of, sale and use of any of such forms of ticket or tickets,\nshall be by order to be served upon all common carriers, railroad\ncompanies and street railroad companies by whom such rates, fares and\ncharges or restoration of, sale or use of such ticket or tickets are\nthereafter to be observed.\n 2. Whenever the commissioner shall find, after a hearing, had upon his\nown motion or upon complaint, that the regulations, practices,\nequipment, appliances, or service of any such common carrier in respect\nto transportation of persons or property within the state are unjust,\nunreasonable, unsafe, improper or inadequate, the commissioner shall\ndetermine the just, reasonable, safe, adequate and proper regulations,\npractices, equipment, appliances and service thereafter to be in force,\nto be observed and to be used in such transportation of persons and\nproperty and so fix and prescribe the same by order to be served upon\nevery common carrier to be bound thereby; and thereafter every common\ncarrier shall observe and obey each and every requirement of every such\norder so served upon it, and do everything necessary or proper in order\nto secure absolute compliance with and observance of every such order by\nall of its officers, agents and employees.\n 3. The commissioner shall have power by order to require any two or\nmore common carriers whose lines, owned, operated, controlled or leased,\nform a continuous or connecting line of transportation or could be made\nto do so by the construction and maintenance of switch connection or\ninterchange track at connecting point, or by transfer of property or\npassengers at connecting points, to establish through routes and joint\nrates, fares and charges for the transportation of passengers and\nproperty within the state as the commissioner may, by his order,\ndesignate; and in case such through routes and joint rates be not\nestablished by the common carriers named in any such order within the\ntime therein specified, the commissioner shall establish just and\nreasonable rates, fares and charges to be charged, for such through\ntransportation, and declare the portion thereof to which each common\ncarrier, affected thereby shall be entitled and the manner in which the\nsame shall be paid and secured; and the commissioner shall also have\npower in the same proceeding, or in a separate proceeding involving any\nrates, fares or charges to prescribe joint rates and fares and charges\nas the maximum to be exacted for the transportation by them of\npassengers and property within the state, and to require such common\ncarriers affected thereby to make within a specified time an agreement\nbetween them as to the portion of such joint rates, fares or charges to\nwhich each of them shall be entitled; and in case such agreement be not\nso made within the time so specified the commissioner may declare by\nsupplemental order the portion thereof to which each common carrier\naffected thereby shall be entitled and the manner in which the same\nshall be paid and secured; such supplemental order shall take effect as\npart of the original order from the time such supplemental order shall\nbecome effective.\n All powers of the commissioner to establish through routes and order\njoint rates, fares and charges as above conferred in relation to common\ncarriers by railroad, shall extend and apply to the establishment of\nthrough routes and ordering of joint rates, fares and charges for use\nand observance by common carriers by railroad and common carriers by\nwater.\n When property may be or is transported from point to point in the\nstate of New York by rail and water, the transportation being by a\ncommon carrier or carriers, and entirely within such state, the\ncommissioner shall have jurisdiction of such transportation and of the\ncarriers, both by rail and by water, which may or do engage in the same,\nin the following particulars, in addition to the jurisdiction given by\nother provisions of this chapter:\n (a) To establish physical connection between the lines of the rail\ncarrier and the dock of the water carrier by directing the rail carrier\nto make suitable connection between its line and a track or tracks which\nhave been constructed from the dock to the limits of its right of way,\nor by directing either or both the rail and water carrier, individually\nor in connection with one another, to construct and connect with the\nlines of the rail carrier a spur track or tracks to the dock. This\nprovision shall only apply where the connection is reasonably\npracticable, can be made with safety to the public, and where the amount\nof business existing or prospective is sufficient to justify the outlay.\n The commissioner shall have full authority to determine the terms and\nconditions upon which these connecting tracks, when constructed, shall\nbe operated, and he may either in the construction or the operation of\nsuch tracks, determine what sum shall be paid to or by either carrier.\nThe provisions of this paragraph shall extend to cases where the dock is\nowned by other parties than the carrier involved. The commissioner\nshall have authority to compel common carriers by rail to make physical\nconnection between their tracks and public terminals established and\noperated by the state under the provisions of chapter seven hundred and\nforty-six of the laws of nineteen hundred and eleven, at the expense of\nsuch carrier and of the state in such proportions as may be reasonable,\nwhere such connection is practicable. The commissioner shall also have\nauthority to compel common carriers by rail to operate upon the railroad\ntracks within such public terminals by such common carriers' own motive\npower and servants all rolling stock going to or coming from such public\nterminals. Common carriers by rail required to make such connections\nshall file tariffs for all service into and out of such terminals and\nover the connecting lines of such carriers by rail, if complaint is made\nby any person that the rates so made are unreasonable, the burden shall\nbe upon the common carrier by rail to establish the reasonableness of\nsuch rates. If the rates are found by the commissioner to be\nunreasonable, the commissioner shall establish reasonable rates. The use\nand operation of such connections and the spotting, placing and removing\nof rolling stock shall be in accordance with the regulations prescribed\nby the commissioner.\n (b) To establish through routes and from time to time order maximum\njoint rates between and over such rail and water lines, and to determine\nall the terms and conditions under which such a line shall be operated\nin the handling of the traffic embraced.\n (c) To establish maximum proportional rates by rail to and from places\nto which the traffic is brought, or from which it is taken by the water\ncarrier, and to determine to what traffic and upon what terms and\nconditions such rates shall apply. By proportional rates are meant those\nwhich differ from corresponding local rates to and from the place of\nreceipt and delivery and which apply only to traffic which is brought to\nthe place of receipt and delivery or is carried from that place by a\ncommon carrier by water.\n (d) If any rail carrier subject to this chapter enters into\narrangements with any water carrier operating in the state for the\nhandling of business between interior points in said state, the\ncommissioner may require such carrier to enter into similar arrangements\nwith any or all other common carriers by water operating therein.\n (e) No common carrier by rail shall own, lease, operate, control or\nhave any interest whatsoever, by stock ownership or otherwise, either\ndirectly or indirectly, through any holding company, or by stockholders\nor directors in common, or in any other manner, in any common carrier by\nwater, with which said common carrier does or may compete for traffic,\nor in vessels, boats or barges carrying freight upon any water route\nwith which such common carrier does or may compete for traffic.\n Jurisdiction is hereby conferred on the commissioner to determine\nquestions of fact as to the competition or possibility of competition,\nafter full hearing, on the application of any railroad company or other\ncarrier. Such application may be filed for the purpose of determining\nwhether any existing service is in violation of this section and pray\nfor an order permitting the continuance of any vessel or vessels already\nin operation, or for the purpose of asking an order to install new\nservice not in conflict with the provisions of this paragraph. The\ncommissioner may on his own motion or the application of any shipper\ninstitute proceedings to inquire into the operation of any vessel in use\nby any railroad or other carrier which has not applied to the\ncommissioner and had the question of competition or the possibility of\ncompetition determined as herein provided.\n (f) The provisions of sections ninety-eight, ninety-nine and one\nhundred, relating to filing, publication and changes of rates, fares and\ncharges of common carriers shall apply to all rates, fares and charges,\nand regulations and practices affecting rates, fares and charges for\ntransportation partly by water and partly by railroad, when both the\nwater line and the railroad line are used for a continuous carriage or\nshipment; but the said section shall not apply to rates, fares or\ncharges, or regulations or practices affecting rates, fares or charges,\nestablished by any such common carrier by water for local carriage or\nshipment of passengers or property between points in this state which\nare served by such common carrier wholly by water and independently of\nany railroad service.\n The provisions of this chapter, and the powers of the commissioner,\nrelating to the transportation of passengers and property by railroad\napply to the transportation of passengers and property partly by\nrailroad and partly by water when both the railroad line and such water\nline are used for a continuous carriage or shipment between points in\nthis state; and the provisions of this chapter and the powers of the\ncommissioner respecting common carriers by water are hereby limited\nthereto, except as may be in this section otherwise specifically\nprovided.\n 4. If the commissioner shall be of the opinion that through cars for\nthe transportation of property should be operated over the tracks of\nsaid common carriers and that switch connection or interchange track at\na connecting point, if not already existing, should be constructed and\nmaintained by such common carriers, to the end that property may be\ncarried without change of cars, the commissioner shall have power after\na hearing to require by order said common carriers to receive from each\nother and transport for each other such cars over each other's tracks by\nway of such switch connection or interchange track, and if no such\nswitch connection or interchange track exist to construct and maintain\nsaid switch connection or interchange track, and to make within a\nspecified time not less than thirty days an agreement between them as to\nthe terms of such receipt and transportation of cars, and if so required\nas to the division of the expense of such construction and maintenance\nof switch connection or interchange track; and in case such agreement be\nnot so made within the time so specified, the commissioner shall after a\nhearing declare by supplemental order the terms and conditions upon\nwhich such cars shall be received and transported, and if so required\nthe portion of such expense to which each common carrier affected\nthereby shall be entitled and the manner in which any sums of money to\nwhich any such common carrier is entitled shall be paid and secured, and\nsuch supplemental order shall take effect as part of the original order\nfrom the time such supplemental order shall become effective. Nothing in\nthis subdivision shall require a through route between railroad\ncompanies and street railroad companies between points reached by such\nrailroad companies. In case upon the termination of a lease or otherwise\nthe owner or lessor of a rapid transit railroad resumes operation\nthereof and thereupon such owner or lessor or the lessee discontinues or\nthreatens to discontinue or refuses or threatens to refuse to permit\noperation over any extension or extensions of such rapid transit\nrailroad or railroads or any of them, or discontinues or threatens to\ndiscontinue or refuses or threatens to refuse to permit operation over\nother railroads on which such lessee had operated under trackage rights,\nthen and in either of those events the commissioner may order that\nthrough cars for the transportation of passengers shall be operated over\nsuch extension or extensions and over the tracks of such other railroad\nover which such lessee may have had trackage rights, and the\ncommissioner shall have power, after a hearing to require by order such\noperating, including the right to order such switch or other connections\nor interchange tracks as may be necessary, and if so required to\ndetermine as to the division of the expense of the maintenance and\noperation thereof. The commissioner may, after a hearing, prescribe the\nterms and conditions upon which such operations shall be conducted and\nthe manner in which receipts and expenses shall be apportioned. Pending\nthe hearing or hearings provided for herein, and the determinations and\norders of the commissioner thereon, the commissioner shall have power,\nif in his judgment the public interest requires it, to issue a temporary\norder requiring said rapid transit railroad companies to receive from\neach other, and transport for each other, such cars over each other's\ntracks by way of switch connection or interchange track, and if no such\nswitch connection or interchange track exists, to construct and maintain\nsaid switch connection or interchange track; and upon the completion of\nsaid hearing or hearings, and the determinations and orders of the\ncommissioner thereafter made, the terms of the receipt and\ntransportation of cars, and the readjustment of compensation and expense\ninvolved, shall take effect as of the original date of such temporary\norder of the commissioner. If upon the expiration or earlier termination\nof a lease, the free transfer or interchange of passengers, theretofore\nin effect and permitted by the lessee of a rapid transit railroad at any\npoint or points between the lines of the rapid transit railroads owned\nor leased and operated by it, is discontinued or is threatened to be\ndiscontinued, the commissioner shall have power by order to require the\ncompanies, by which the said lines of rapid transit railroads may be\noperated after the termination of the lease, to continue or re-establish\nsuch through routes formerly existing, and to establish joint rates,\nfares and charges for the transportation of passengers thereon in the\nmanner provided by subdivision three. Pending the hearing or hearings\nprovided for herein, and the determinations and orders of the\ncommissioner thereon, the commissioner shall have power to issue a\ntemporary order requiring the companies then operating said lines of\nrapid transit railroad to restore the said free transfer or interchange\nof passengers at the point or points on said rapid transit railroad\nlines where the said free transfer or interchange was formerly in effect\nand permitted; and upon the completion of said hearing or hearings, and\nthe determinations and orders of the commissioner thereafter made, the\nterms and conditions under which the portion of said joint rates, fares\nand charges to which each company shall be entitled and the manner in\nwhich the same shall be paid and secured, shall take effect as of the\noriginal date of such temporary order of the commissioner.\n