[PRCo] Re: Interurbans and the West Penn

[John Swindler]

One does not need to go to the PUC archives to find this decision involving Wilkinsburg.  On an annual basis significant decisions were gathered into bound volumes, and copies of these books might be available at the Carnegie Library.  In this case, Fred's copy came from the open book shelves in the state law library, so it might be possible to access on interlibrary loan.    
 
John
> From: fwschneider at comcast.net> Subject: [PRCo] Re: Interurbans and the West Penn> Date: Tue, 28 Oct 2008 17:21:24 -0400> To: hassel8 at comcast.net; ge13031 at yahoo.com; pittsburgh-railways at dementia.org; jhenwood at epix.net> > > I cannot find who wrote the first message on the subject of > interurbans not being allowed to raise fares in 1918 because of > franchise restrictions. I said that some states allowed it and some > did not. One person contested what I said. I had particular > commented that the Pennsylvania regulatory organization held that > utilities were permitted to make a reasonable profit regardless and > that they and only they were in charge or regulating fares and > tariffs of utilities in Pennsylvania.> > What you want to look at is Pennsylvania Public Service Commission > complaint docket number 1883 of the Borough of Wilkinsburg versus > Pittsburgh Railways. The borough held that the franchise under > which Pittsburgh Railway was operating permitted only a three cent > fare and to raise it was unreasonable and unjust. The Public > Service commission held that the "constitution which lodged the > legislative power of this Commonwealth in a General Assembly (Art. > II, Sec. 1) imposed no limitation on the rate regulating authority of > that body, but prescribed that "the exercise of the police power of > the State shall never be abridged."" The PSC held that neither > Wilkinsburg nor any other municipality had authority to regulate the > fares of a utility operating therein. This was upheld in the 71st > April term, 1919 of the Superior Court of Pennsylvania.> > There were a number of other municipalities that failed to get the > message and also had to be reminded by the courts.> > There is also evidence that the head of the state Public Service > Commission was in bed with the people his agency was regulating, > which lead to the resignation of W. D. B. Ainey from his position as > Chairman on August 3, 1932 and eventually the renaming of the > organization the Pennsylvania Public Utility Commission. The name > change from Pa. PSC to Pa. PUC, however, did not change the > philosophy that it had the sole authority to regulate private transit > companies, railroad, power companies, phone companies, water > companies, gas companies, sewer companies and other utilities in the > commonwealth. The reference to his resignation was found by Ed > Lybarger in the Connellsville Courier dated August 3, 1932. There > were other references in the same newspaper on July 26, 1932 and July > 11, 1932. One of the newspaper stories cites A. W. Thompson, the > president of the Philadelphia Company (that was the head of Duquesne > Light Company and Pittsburgh Railways) having paid $3073.40 to Johns > Hopkins Hospital when Ainey was a patient there in 1925 and 1926. > (Bear in mind that was a huge hospital bill and that inflation in > that sector has been much larger than in other areas ... my own bill > for an appendectomy including seven days in the hospital in 1953 was > only $104.) There was also an allegation that $150,000 had been > given to Ainey over a period of six years by Thomas Mitten, the > president of Philadelphia Rapid Transit Company and that Mitten > Management had paid for his transportation to Europe in 1927. There > were also charges that Ainey had deposted upwards of $185,000 into > his bank accounts in one year in cash (nothing traceable you > understand) or which his salary represented only $3,000. He was > named in a $150,000 graft charge (Connellsville Courier, June 29, > 1932) but Ainey, like Senator Dan Flood, managed to escape. In > early September he was reported "sinking rapidly." And Transit > Journal's October 1932 issue reported him as a "widely known utility > expert" who "had failed rapidly since his resignation from the > commission on August 2. A sufferer from arthritis since 1922, Mr. > Ainey for the last several years had attended his duties ... in a > wheel chair. He was recognized as one of the foremost utility > commissioners in the United States. He was appointed to the > commission by Governor Brumbaugh on May 20, 1915, and three months > later became its chairman." He was also president of the National > Association of Railroad and Utility Commissioners in 1924. > > 
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