[PRCo] Re: Interurbans and the West Penn

[Edward H. Lybarger]

Fred's copy of the Wilkinsburg decision exists because I copied it for him
in the PTM Library, where John Swindler had placed a copy he made in
Harrisburg.  The copies of the news clippings about the PSC chairman are
from my research on West Penn.  I believe that no one but me (in our field)
knew about this latter subject until last weekend.

Just to set the record straight about what comes from where.

Ed

-----Original Message-----
From: pittsburgh-railways-bounce at lists.dementia.org
[mailto:pittsburgh-railways-bounce at lists.dementia.org] On Behalf Of John
Swindler
Sent: Tuesday, October 28, 2008 6:50 PM
To: pittsburgh-railways at dementia.org
Subject: [PRCo] Re: Interurbans and the West Penn

 
 
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 thr!
 ee 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 r!
 enaming of the > organization the Pennsylvania Public Utility Commissi on.
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.) Th!
 ere 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 > co!
 mmissioners 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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