New-York tribune., 1908-03-15
TENCENT FARE ANSWER
Gomez Island Road Says LOcer
Rate WOuld Kill Profits.

The conev Island & Brooklyn Railroad in It's
answer yesterday TO the Public Service Comins-
sion on the complaint OF a citizen that a lucent
fare to Coney Island excessive declared that
~ reduction of its fare to Coney Island would be
q confscaton of its property and would impair
oblis-ao and contracts between the state anu
city and the company. The company. which oper-
ates the Smith street and the Franklin avenue
trolley lines Coney Island. charges lucent
fare TO Coney Island on Saturdays. Sundays ana
HOLIDAYS only cents being the rate on other days
The answer of the Brooklyn Rapid Transit Com
pany, which charges 10 cents to Coney Island at
all times. has been made public. 1t is safe TO
say however that it also will be denial of the
charges and that the Public Service Commission
will institute an investigation to determine whether
a lower fare than 10 cents would be reasonable
An interesting statement in the answer OF the
Coney Island & Brooklyn was that while its aver
age yearly collection Of second fares to Coney
from 1908 to 1e07. inclusive was $4,000, the col
lections amounted to only sSS,541 last year. 1t
is contended If the receipts of the company
should be depleted by abolislinS the second fare
Of cents the net earnings would not equal the
interest on the funded debt, irrespective OF oepre-
ciation, reserve. contingencies or DIVIDENDS
l. is asserted that lower fare than 10 cents
would not he sufficient the cost o. trans
rortation the necessary reserve for depreciation
contingencies and adequate return upon 'he
capitalization upon the value of the properties
and franchises which, it is said exceeds ss,o0oo
OF carrying passengers TO and from Coney island
Plus a reasonable return upon the capital, ex-
ceeds the revenue received for such transportation
at the rate Of fare charged. The company
the answer says! does 10 per cent of IT'S Coney
Island business from June to September OF each
xear and that the maximum equipment 1t has
TO maintain for this service earns no income 1or
the remainder of the year. 1t is also more en-
pensive to operate IN summer than IN winter
because oc the of extra men, For that reason
lla tn ph3rg q
rate of fare than for ordinary travel The INES
the answer says. barely earn their operating eA-
penses from November to May
For the calendar year ended December 81 1901
the company says it operated o,ooi,los car hii'o'
and that its gross earnings were s1.566,i6sZ or
csl, cents a car mile. Its operating expenses ana
taxes were s,2ss 4s5 SIS, 1872 cents car mile us
fixed charges were ST. cents car mie' making 'e
expense of operating its service lnciuolhs hNe
charges, 3 G cents car mile
The answer shows that the distance of the rouhu
trip from New York to Coney Island by way oi
the Smith street line is e2.55S miles 10 pay op-
Grating expenses, including taxes ana 0epreti'
ton interest and reserve. and without any fe'ui"
upon capital stock or reserve Tor eohtiiieeho-e'
the company says il would have TO earn 60
round trip TO Coney Island. This would repre-
sent at a scent fare each way hfty-eieht pas
sensers each way each and every car, uaS anu
night for S65 days in the year. Ihls cohoit'o HAS
existed. and the company sa!s IL 40 mann
festly impossible
In the fiscal year ended June 80, l9o' the coillpas
carried 60 l5se2s passengers. and collected sloZs-i
Some of the fares being half or Scent fares' lhe
average receipt for each passenger was AIo cehis'
over and above operating expenses ana taxes 'iie
net earnings a passenger We're s3l Of cent ana
the net income after the payment of all charges
.1A
The answer goes into the history OF the various
charters of the company and claims that the conf
many has a right under Of these charters 10
charge cents within the limits of the old city OF
BROOKLYN as they existed in the year 1S'0 ana taat
the railroad law gave il the right 10 chHse d
cents a mile outside OF the city limits Inc COIL
pany is not. therefore, the answer asserts' eAeeeu
ing its legal right in charging a 1O-cent rare IN
view OF all the facts stated the company asks 'hat
the complaint dismissed and that the Puphc
Service Commission adjudge a 1o-cent rare as not
excessive.