Joint Legislative Committee Appointed to Investigate the Public Service Commissions

The New York State Public Service Corporations Law (Laws of 1907, Chapter 424) established the Public Service Commissions to provide for the efficient regulation of common carriers, railroads, street railways, gas and electric corporations, and the construction of subways in New York City. Subsequent amendments to the law added the regulations of certain telephone, telegraph, and steam heating corporations to the Commission's authority. The Commission's duties in regulating these industries included investigating complaints from customers, establishing rates, ordering improved service where necessary, and supervising the issuing of corporation securities. By a joint resolution of April 22, 1915, the legislature established the Joint Legislative Committee Appointed to Investigate the Public Service Commissions. State Senator George F. Thompson served as Chairman. This Committee expanded a preliminary investigation done by a similar committee that submitted a final report to the legislature on April 20, 1915. This report called attention to widespread misconduct and inefficiency in the Public Service Commission and recommended a fuller investigation of the Commission. The Committee began work in June 1915 and submitted its final report to the legislature on March 6, 1917. The investigation examined the function, organization and activities of the Commission and studied a number of major issues including: inefficiency or misconduct of commissioners; excessive length of time responding to consumer complaints; exorbitant utility rates; improper issuing of corporation securities; and duplication of functions already carried out by federal regulatory agencies. Much of the investigation focused on the construction and operation of the rapid transit system in and around New York City. The Committee gathered documents, sponsored hearings, conducted financial audits, distributed questionnaires, held interviews and used other means to examine the activities of the Commission. In its report to the legislature, the Committee charged widespread misconduct against several commissioners and recommended wholesale changes in the existing Public Service Corporations Law. Among its recommendations, the Committee called for a single Commissioner to replace the existing dual administration, the creation of a Rapid Transit Commissioner to specifically handle New York City's troubled transportation system, tighter measures to regulate methods of financing transportation and utility projects, and new regulations to control wiretapping of telephone lines. The committee's investigation helped push for changes in the organization and administration of the Public Service Commission over the next decade, culminating in 1926 with the establishment of the New York State Department of Public Service.