New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-21
THIRD AVENUE ROAD PLAN
BondhoIderS' Figures Borne OH
by P. S. c. Engineer.

z. &. Connette. transportafto.
sineer OF the Public Service Co,,--s.-.7n-
yesterday submitted figures which -
II appear that the reorganization co..-..ps
tes OF the Third Avenue Railroad -
% ny bondholdsrs win be able N c,r-.. IN p.
the plan which they have submifrsa - -
commission fo- approval TIE ,-,-.,.l
plan was rejected by the cor-nisss-,.''
impossible Of execution. but tas a.
submitted yesterday practically No.. -
in the main the figures Submitted bv 10
Floy. the expert examiner on behalf a. =.
company. though there was sor,s g.
ence I'm the views expressed by M -
nette ard Mr. Fioy 81 20 the csle-,is,s.-
OF contractors' profits and overhead VIE
Chairman Wilcox presided az yestsr5.-.,
bearing. and Oliver G. s4mpie. 81 can...,
for the commission. examined ths wftns.,
Mr.. Connects qualified as an sxpe-. ~
rscIting his thirty years experiences a
superintendent and manager of ~.
struction and operation on various s,ss-,
and electric railroads throughout the con-
try.
Mr.. Connects testified tnas he lad tsss.
the returns or the company and hg1-.s
secured by experts IN bis department. ana
found that the total cost OF reproduc-o-
Of the property % the company would -
81. s32.ssi 50. while Mr.. Floy. the expert ~
the bondhoiders. had placed the amour,
az KS 42e 3s2 %. a difference OF S7es.7Jlu
Taking into consideration the items. "a
contractors profits which Mr.. FIov caicv.
lated at IS pr cent and :Tr Cocnstts AZ
lc per cent. and the charges FOR engineer.
ing and Incidental expense. which on SOM
items NJ. Conette put OF - and on othsrs
at S per cent. whereas Nr. Floy allowed
IA per cent on all. and Including therswi,a
the overhead charges. Mr. Connetts's est
mate % the total cost OF reproduction was
SO, e52 s58. which was 81 500. 20 less than Sir
FfOys
Mr.. Connette accepted the figures SUD
mitted by Mr.. FlOy for depreciation and
rejected those submitted by Colonel ". y
Amorv. chairman % the Knlcker6ocker
committee OF shareholders. The tOtsI
depreciation reserve is aglrsd az SEsl-
the franchise taxes at $4,000 and re-
OF binary taxes At per cent, OF So 60
for the year now going or. Win est
mated gross earnings OF S7.Fe. 90 for to
year ending June So 1910, operating ex-
penses figured az s. per cent % the re-
ceipts would leave g balance % 81 ,521. 100
applicable 70 investment.
For the next three years the balances
applicable to investment are estimated
az s, s5s. 1e0. 8. 1884 20 and s1ST.loo.
Under the Old system. when lie company
had TO pay ) per cent on TIE &o0oao
first mortgage and 4 Per cent on the con-
solidated mortgage OF s3l5s0.ooo, the con-
pany had 20 pay annually N.7J2. 40 U1-
der the plan proposed BY the bOndnoiiers
reorganization committee however, e is
proposed to Fay Only SO interest," on
the first mortgage and retunding bonds
leaving the adjustment income mortgage
bonds, amounting % S22.155. %. 70 90 vit.-
OUT interest for three years. At The sS-
piratiOn OF that period the earnings OF ths
company, il is estimated, wiz be more
than sufficient % meet al demands. Tie
hearing will BE continued on FRIDAY,
April %.