Perth Amboy evening news., 1910-06-15
ON
STAND TELL OF
RAISE IN RATE

Trenton, June 15:-Representa-
tives of the various railroads operat-
ing in northern New Jersey appeared
before the railroad commission to
explain the increase in commutation
rates which has been announced to
take effect July l. They declared on
the witness stand that the increases
in passenger fares that are to go in
to effect with the end of this month
had all been made because suburban
passenger traffic was being handled
at loss. While this plea was being
made Jersey Central stock rose
twenty-five points in the market.
General Passenger Agent George w.
Boyd, of the Pennsylvania, says that
If the present class of service was to
be maintained there would have to
be an increase in fares.
The railroad commission early In
its open session referred all commu-
tation rates between New York city
and New Jersey points to the Inter-
state Commerce Commission. Reso-
lutions and motions were then adopt
ed calling upon the railroads and the
state board of assessors for informa-
tion that will, If obtained, enable
the commissioners to ascertain the
physical value of the property of the
four railroads against which COM
plants have been made for advanc-
ing their passenger tariffs. If the
| physical value can be ascertained,
the commissioners feel that they will
have a basis upon which to build in
| determining what the travelling pub
| lie should pay to make a reasonable
profit upon the actual investment.
1t isn't considered likely that the
State Board of Assessors or the rail-
roads will be inclined to furnish all
the documents and data asked for In
the resolutions introduced by Rail-
| road Commissioners Thomas J. Hill
| lery and Robert Williams. President
Frank H. Sommer was not inclined
to discuss the plans of the board in
event of the requests being refused,
but 1t is believed that mandamus
proceedings will be begun IL neces-
| sary to force production of desired
| papers.
For the New Jersey Central Jack
son e. Reynolds, assistant general
attorney, and General Superintend-
ent Huntington, with General Pas
senger Agent W. G. Hope put in the
/
general statement, said:
For some years our passenger
revenue has not equalled the expense
of conducting the service and has re-
suited in a large deficit. If we take
| the passenger statistics for our Cen
trail Division, which is the division OF
| densest passenger traffic, 1t can be
/ demonstrated that our revenue bare
ly suffices to take care of our operat
| ing expenses alone; it will not pro
duce enough revenue to take care o
that proportion of taxes, fixed charg
eH, interest, rentals, or any othe
| miscellaneous expense involved IL
the permanent provision of thes'
facilities for the travelling public. II
other words, for many years past thu
freight business has been takini
1 care of all these last-named item
| for the benefit of the travelling public
and the shippers of our line may
4 therefore, logically be said to hav,
been paying a portion of the trans
n portation rates of our commuters
If we take the first quarter of tn
Il present year and of the past year,
/ will be found that our operating ex
1 penses on the average, for carrying
one passenger one mile, are in excess
of one cent. A set of statistic
showing the detail of this Is filet
with the commission as a part o
this inquiry. Consultation of ou
Communication rates will also indicat
to the inquirer that the earnings pc
passenger per mile on our Plainfielt
commuters is less than 6 mills; OF
our Perth Amboy commuters als'
less than 6 mills, while on our New
ark commuters Is practically thu
same as cost, or roughly one cent.
/ General Passenger Agent Boyd, o
the Pennsylvania, with Genera
Counsel G. Stuart Patterson, enter
tanned the commission with details
of the great Pennsylvania system
telling among other things that ther,
was a big increase in cost of labol
and equipment to be met. AS hal
been stated, Mr.. Boyd was the only
railroad man on the stand who ever
intimated that his company might bt
able to handle short haul passenger
traffic without becoming an eleemo
synary institution.
In his general statement Mr.. Boyi
said:
"The slight advance which we pro
pose to make in our local rates OF
the eastern end of the New Yorl
division is fully warranted by exist
ing conditions and can be fully justi