§ 119. Rates and service to be fixed by the commissioner. 1. Whenever the commissioner shall find, after a hearing had upon his own motion or upon a complaint, that the rates, fares or charges demanded, exacted, charged or collected by any common carrier subject to his jurisdiction for the transportation of persons or property within the state, or that the regulations or practices of such common carrier affecting such rates are unjust, unreasonable, unjustly discriminatory or unduly preferential, or in violation of law, or that the maximum rates, fares or charges, chargeable by any such common carrier are insufficient to yield reasonable compensation for the service rendered, and are unjust and unreasonable, the commissioner shall with due regard among other things to the estimated prospective earning capacity of such property at the rate of fare at the time fixed and existent and to a reasonable average return upon the value of the property actually used in the public service, and to the necessity of making reservation out of income for surplus and contingencies, determine the just and reasonable rates, fares and charges to be thereafter observed and in force as the maximum to be charged for the service to be performed, notwithstanding that a higher rate, fare or charge has been heretofore authorized by general or special statute, and shall fix the same by order to be served upon all common carriers by whom such rates, fares and charges are thereafter to be observed.

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At any hearing involving a rate, the burden of proof to show that the change in rate if proposed by the common carrier, or that the existing rate, if on motion of the commissioner or in a complaint filed with the commissioner it is proposed to reduce the rate, is just and reasonable shall be upon the common carrier; and the commissioner may give to the hearing and decision of such questions preference over all other questions pending before him and decide the same as speedily as possible.

Whenever the commissioner shall find, after a hearing had upon his own motion, or upon a complaint, that the rates, fares or charges demanded, exacted, charged or collected by any common carrier subject to his jurisdiction for excursion, school or family commutation, commutation passenger tickets, half fare tickets for the transportation of children under six years of age, or any other form of reduced rate tickets for the transportation of persons within the state, or joint interchangeable mileage tickets, with special privileges as to the amount of free baggage that may be carried under mileage tickets of one thousand miles or more within the state, or that the regulations or practices of such common carriers affecting such rates are unjust, unreasonable, unjustly discriminatory or unduly preferential, or in violation of law, or that the maximum rates, fares or charges collected or charged for any of such forms of reduced fare passenger transportation tickets by any such common carrier are insufficient to yield reasonable compensation for the service rendered, and are unjust and unreasonable, and whenever the commissioner shall find, after a hearing had upon his own motion or upon a complaint, and upon investigation, that the sale of any form or forms of reduced passenger ticket heretofore sold or used upon any railroad or street railroad within the state, the use or sale of which ticket or tickets has been discontinued within five years prior to June thirtieth, nineteen hundred and eleven, will be just and reasonable and not in violation of any provision of this chapter or other provision of law, the commissioner shall, with due regard, among other things, to a reasonable average return upon the value of the property actually used in the public service and to the necessity of making reservation out of income for surplus and contingencies, determine the just and reasonable rates, fares and charges to be thereafter observed and enforced as the maximum to be charged for such mileage, excursion, school or family commutation, commutation, half fare or any other form of reduced rate tickets for the transportation of persons, or joint interchangeable mileage tickets with special privileges as aforesaid, and shall order the sale and use thereof to be restored, or any of the kinds of tickets herein specified or any other form of reduced rate ticket for the transportation of persons within the state, upon any railroad or street railroad within this state, upon which railroad or street railroad any such form of ticket or tickets for the transportation of persons within the state, have, within five years prior to June thirtieth, nineteen hundred and eleven, been sold or used, and shall determine and prescribe the reasonable and just rates, fares and charges to be thereafter observed and enforced as the maximum to be charged for any of such form of ticket or tickets for the transportation of persons within the state, all of which acts fixing such rates, fares and charges or requiring the restoration of, sale and use of any of such forms of ticket or tickets, shall be by order to be served upon all common carriers, railroad companies and street railroad companies by whom such rates, fares and charges or restoration of, sale or use of such ticket or tickets are thereafter to be observed.

2. Whenever the commissioner shall find, after a hearing, had upon his own motion or upon complaint, that the regulations, practices, equipment, appliances, or service of any such common carrier in respect to transportation of persons or property within the state are unjust, unreasonable, unsafe, improper or inadequate, the commissioner shall determine the just, reasonable, safe, adequate and proper regulations, practices, equipment, appliances and service thereafter to be in force, to be observed and to be used in such transportation of persons and property and so fix and prescribe the same by order to be served upon every common carrier to be bound thereby; and thereafter every common carrier shall observe and obey each and every requirement of every such order so served upon it, and do everything necessary or proper in order to secure absolute compliance with and observance of every such order by all of its officers, agents and employees.

3. The commissioner shall have power by order to require any two or more common carriers whose lines, owned, operated, controlled or leased, form a continuous or connecting line of transportation or could be made to do so by the construction and maintenance of switch connection or interchange track at connecting point, or by transfer of property or passengers at connecting points, to establish through routes and joint rates, fares and charges for the transportation of passengers and property within the state as the commissioner may, by his order, designate; and in case such through routes and joint rates be not established by the common carriers named in any such order within the time therein specified, the commissioner shall establish just and reasonable rates, fares and charges to be charged, for such through transportation, and declare the portion thereof to which each common carrier, affected thereby shall be entitled and the manner in which the same shall be paid and secured; and the commissioner shall also have power in the same proceeding, or in a separate proceeding involving any rates, fares or charges to prescribe joint rates and fares and charges as the maximum to be exacted for the transportation by them of passengers and property within the state, and to require such common carriers affected thereby to make within a specified time an agreement between them as to the portion of such joint rates, fares or charges to which each of them shall be entitled; and in case such agreement be not so made within the time so specified the commissioner may declare by supplemental order the portion thereof to which each common carrier affected thereby shall be entitled and the manner in which the same shall be paid and secured; such supplemental order shall take effect as part of the original order from the time such supplemental order shall become effective.

All powers of the commissioner to establish through routes and order joint rates, fares and charges as above conferred in relation to common carriers by railroad, shall extend and apply to the establishment of through routes and ordering of joint rates, fares and charges for use and observance by common carriers by railroad and common carriers by water.

When property may be or is transported from point to point in the state of New York by rail and water, the transportation being by a common carrier or carriers, and entirely within such state, the commissioner shall have jurisdiction of such transportation and of the carriers, both by rail and by water, which may or do engage in the same, in the following particulars, in addition to the jurisdiction given by other provisions of this chapter:

(a) To establish physical connection between the lines of the rail carrier and the dock of the water carrier by directing the rail carrier to make suitable connection between its line and a track or tracks which have been constructed from the dock to the limits of its right of way, or by directing either or both the rail and water carrier, individually or in connection with one another, to construct and connect with the lines of the rail carrier a spur track or tracks to the dock. This provision shall only apply where the connection is reasonably practicable, can be made with safety to the public, and where the amount of business existing or prospective is sufficient to justify the outlay.

The commissioner shall have full authority to determine the terms and conditions upon which these connecting tracks, when constructed, shall be operated, and he may either in the construction or the operation of such tracks, determine what sum shall be paid to or by either carrier. The provisions of this paragraph shall extend to cases where the dock is owned by other parties than the carrier involved. The commissioner shall have authority to compel common carriers by rail to make physical connection between their tracks and public terminals established and operated by the state under the provisions of chapter seven hundred and forty-six of the laws of nineteen hundred and eleven, at the expense of such carrier and of the state in such proportions as may be reasonable, where such connection is practicable. The commissioner shall also have authority to compel common carriers by rail to operate upon the railroad tracks within such public terminals by such common carriers' own motive power and servants all rolling stock going to or coming from such public terminals. Common carriers by rail required to make such connections shall file tariffs for all service into and out of such terminals and over the connecting lines of such carriers by rail, if complaint is made by any person that the rates so made are unreasonable, the burden shall be upon the common carrier by rail to establish the reasonableness of such rates. If the rates are found by the commissioner to be unreasonable, the commissioner shall establish reasonable rates. The use and operation of such connections and the spotting, placing and removing of rolling stock shall be in accordance with the regulations prescribed by the commissioner.

(b) To establish through routes and from time to time order maximum joint rates between and over such rail and water lines, and to determine all the terms and conditions under which such a line shall be operated in the handling of the traffic embraced.

(c) To establish maximum proportional rates by rail to and from places to which the traffic is brought, or from which it is taken by the water carrier, and to determine to what traffic and upon what terms and conditions such rates shall apply. By proportional rates are meant those which differ from corresponding local rates to and from the place of receipt and delivery and which apply only to traffic which is brought to the place of receipt and delivery or is carried from that place by a common carrier by water.

(d) If any rail carrier subject to this chapter enters into arrangements with any water carrier operating in the state for the handling of business between interior points in said state, the commissioner may require such carrier to enter into similar arrangements with any or all other common carriers by water operating therein.

(e) No common carrier by rail shall own, lease, operate, control or have any interest whatsoever, by stock ownership or otherwise, either directly or indirectly, through any holding company, or by stockholders or directors in common, or in any other manner, in any common carrier by water, with which said common carrier does or may compete for traffic, or in vessels, boats or barges carrying freight upon any water route with which such common carrier does or may compete for traffic.

Jurisdiction is hereby conferred on the commissioner to determine questions of fact as to the competition or possibility of competition, after full hearing, on the application of any railroad company or other carrier. Such application may be filed for the purpose of determining whether any existing service is in violation of this section and pray for an order permitting the continuance of any vessel or vessels already in operation, or for the purpose of asking an order to install new service not in conflict with the provisions of this paragraph. The commissioner may on his own motion or the application of any shipper institute proceedings to inquire into the operation of any vessel in use by any railroad or other carrier which has not applied to the commissioner and had the question of competition or the possibility of competition determined as herein provided.

(f) The provisions of sections ninety-eight, ninety-nine and one hundred, relating to filing, publication and changes of rates, fares and charges of common carriers shall apply to all rates, fares and charges, and regulations and practices affecting rates, fares and charges for transportation partly by water and partly by railroad, when both the water line and the railroad line are used for a continuous carriage or shipment; but the said section shall not apply to rates, fares or charges, or regulations or practices affecting rates, fares or charges, established by any such common carrier by water for local carriage or shipment of passengers or property between points in this state which are served by such common carrier wholly by water and independently of any railroad service.

The provisions of this chapter, and the powers of the commissioner, relating to the transportation of passengers and property by railroad apply to the transportation of passengers and property partly by railroad and partly by water when both the railroad line and such water line are used for a continuous carriage or shipment between points in this state; and the provisions of this chapter and the powers of the commissioner respecting common carriers by water are hereby limited thereto, except as may be in this section otherwise specifically provided.

4. If the commissioner shall be of the opinion that through cars for the transportation of property should be operated over the tracks of said common carriers and that switch connection or interchange track at a connecting point, if not already existing, should be constructed and maintained by such common carriers, to the end that property may be carried without change of cars, the commissioner shall have power after a hearing to require by order said common carriers to receive from each other and transport for each other such cars over each other's tracks by way of such switch connection or interchange track, and if no such switch connection or interchange track exist to construct and maintain said switch connection or interchange track, and to make within a specified time not less than thirty days an agreement between them as to the terms of such receipt and transportation of cars, and if so required as to the division of the expense of such construction and maintenance of switch connection or interchange track; and in case such agreement be not so made within the time so specified, the commissioner shall after a hearing declare by supplemental order the terms and conditions upon which such cars shall be received and transported, and if so required the portion of such expense to which each common carrier affected thereby shall be entitled and the manner in which any sums of money to which any such common carrier is entitled shall be paid and secured, and such supplemental order shall take effect as part of the original order from the time such supplemental order shall become effective. Nothing in this subdivision shall require a through route between railroad companies and street railroad companies between points reached by such railroad companies. In case upon the termination of a lease or otherwise the owner or lessor of a rapid transit railroad resumes operation thereof and thereupon such owner or lessor or the lessee discontinues or threatens to discontinue or refuses or threatens to refuse to permit operation over any extension or extensions of such rapid transit railroad or railroads or any of them, or discontinues or threatens to discontinue or refuses or threatens to refuse to permit operation over other railroads on which such lessee had operated under trackage rights, then and in either of those events the commissioner may order that through cars for the transportation of passengers shall be operated over such extension or extensions and over the tracks of such other railroad over which such lessee may have had trackage rights, and the commissioner shall have power, after a hearing to require by order such operating, including the right to order such switch or other connections or interchange tracks as may be necessary, and if so required to determine as to the division of the expense of the maintenance and operation thereof. The commissioner may, after a hearing, prescribe the terms and conditions upon which such operations shall be conducted and the manner in which receipts and expenses shall be apportioned. Pending the hearing or hearings provided for herein, and the determinations and orders of the commissioner thereon, the commissioner shall have power, if in his judgment the public interest requires it, to issue a temporary order requiring said rapid transit railroad companies to receive from each other, and transport for each other, such cars over each other's tracks by way of switch connection or interchange track, and if no such switch connection or interchange track exists, to construct and maintain said switch connection or interchange track; and upon the completion of said hearing or hearings, and the determinations and orders of the commissioner thereafter made, the terms of the receipt and transportation of cars, and the readjustment of compensation and expense involved, shall take effect as of the original date of such temporary order of the commissioner. If upon the expiration or earlier termination of a lease, the free transfer or interchange of passengers, theretofore in effect and permitted by the lessee of a rapid transit railroad at any point or points between the lines of the rapid transit railroads owned or leased and operated by it, is discontinued or is threatened to be discontinued, the commissioner shall have power by order to require the companies, by which the said lines of rapid transit railroads may be operated after the termination of the lease, to continue or re-establish such through routes formerly existing, and to establish joint rates, fares and charges for the transportation of passengers thereon in the manner provided by subdivision three. Pending the hearing or hearings provided for herein, and the determinations and orders of the commissioner thereon, the commissioner shall have power to issue a temporary order requiring the companies then operating said lines of rapid transit railroad to restore the said free transfer or interchange of passengers at the point or points on said rapid transit railroad lines where the said free transfer or interchange was formerly in effect and permitted; and upon the completion of said hearing or hearings, and the determinations and orders of the commissioner thereafter made, the terms and conditions under which the portion of said joint rates, fares and charges to which each company shall be entitled and the manner in which the same shall be paid and secured, shall take effect as of the original date of such temporary order of the commissioner.