By Chapter 429 of the Laws of 1907 there were created in the State of New York two Public Service Commissions, displacing the Railroad Commission, Gas Commission, State Inspector of Gas Meters and, in New York City, the Rapid Transit Commission. The Commission for the First District was given jurisdiction in the four counties comprising the city of New York and the Second District Commission jurisdiction in the remainder of the state. The latter Commission has the problems arising from transportation on the great steam roads and from the many gas, electric and street car and interurban companies in the cities and towns of the State.

The Commission for the First District because of its jurisdiction in New York City is concerned almost exclusively with municipal questions, though actually exercising state functions except as to rapid transit. It has to deal with comparatively few companies, but because their business touches millions of people confined to a comparatively small area, the problems that arise have elements involving personal and municipal relations to a greater degree than is true with a commission with jurisdiction over a wide territory and scattered population.

The surface, elevated and subway companies in New York City carry annually over 1,300,000,000 passengers, which is over 66 per cent more than the total number of passengers carried on the steam railroads of the entire country. They have a capitalization of over $533,000,000 and derive annually from their passengers over $62,000,000 in fares. Until the recent receiverships the operating companies were concentrated into six groups.