Arizona republican., 1913-07-11

1
 4. That in order to property. econ lomically, conveniently, and expeditions | ly handle the traffic between Phoenix, | Tempe and Mesa it is necessary for the
 Arizona Eastern Railroad company to
 maintain and operate double tracks for much of the distance between these points, and that this can be done much more satisfactorily and economically by 1 the Arizona Eastern utilizing the road 1 bed and tracks of the Phoenix and | Eastern company for it's second track than by constructing an independent ] track along the right of way of it's road l That it will be much more economical 1 and result beneficially both to the con- | panies and to the travelling public to permit the operation of the lines of 1 these two companies between said | points under one management, carry | ing the trains of both of the companies i over one bridge across the Salt River l at Tempe than it will be to maintain and operate separate independent tracks which would require the recon structiOn at much cost of the bridge of the Phoenix and Eastern company across Salt River at Tempe destroyed a number of years ago by floods as set out in the opinion of the commission. 5. That the present traffic situation between Phoenix, Tempe and Mesa is such that the best interest of the public and of the two companies making this
 application demand that the lines of the
 two companies between said points be
 operated under one management, and
 that the best results will be secured
 both to the travelling and shipping pub
 lie and to these companies by the ap
 prOVal of the lease of the Phoenix and
 Eastern properties to the Arizona East
 ern Railway company submitted to the
 commission in it's original application
 herein.
 If this lease be not approved the
 companies will thereby be compelled to
 maintain and operate their respective
 lines between these two points inde-
 pendently and separately. This will in
 volve great additional expense in the
 operation of the lines and will result in much inconvenience and annoyance and
 to the great detriment of the travelling and shipping public.
 If these companies are compelled by the commission to operate these lines separately and independently the trains of the Phoenix and Eastern company will be unable to run into and out of Phoenix, but will have to start and stop at Tempe. This would necessitate a transfer of passengers and freight from | the Arizona Eastern to the Phoenix and Eastern at Tempe, and you'd also ne cesstate another transfer of passengers and freight from the Phoenix and East | ern to the Arizona Eastern at Chand- l Ter Junction, and vice versa, separate motive power. equipment and employees would have tO no tained for the Phoenix and Eastern company at Tempe, and separate mo- tive power and employees would also have to be provided and maintained at some point on the Chandler branch to operate trains on that line The in crease in the cost of operation of these | lines of road separately under these conditions over that under conditions which would exist if operated under the l lease of the Phoenix and Eastern lines made to the Arizona Eastern company as submitted to the commission, will be i very great The inconvenience, annoy l ance and veXatiOn which would result l to the public in the transfer of passen- gers and freight at the points above in | dicated can hardly be estimated.
 s. The objection made to the ap- proval of the lease in the opinion of the | commission on account of the alleged | negotiable conditions imposed upon the | lesser and to the power conferred upon l the lessee to make additions, better | ments and extensions to the Phoenix | and Eastern properties when considered | in the light of the fact that the own | ership of the capital stock of both com | panles is one and the same is without | any force The ownership of the stock | of the two companies being the same | any advantage which might accrue to 1 the Arizona Eastern under the terms | of the lease, will necessarily result to | the benefit of the stockholders of the | Phoenix and Eastern company who are the same as the stockholders of the | Arizona Eastern. As a matter of fact however, the terms of the lease are not negotiable to the Phoenix and Eastern The rental agreed to be paid 1 for the use of the Phoenix and Eastern lines is most liberal If the Phoenix and Eastern is required by the com mission to be operated independentIv it could not probably for many years to come earn enough in it's operation to pay the interest upon it's present cer- tlficateS of indebtedness. By the terms of the lease with the Arizona Eastern, the Arizona Eastern agrees to pay di- rect to the creditors of the Phoenix and Eastern the interest on this indebted ness and one thousand dollars (s1,OOO) | a year in addition. The lease therefore furnishes the Phoenix and Eastern company a means to meet it's interest payments until such time as the traffic | of the company may develop to an ex- tent that the road can be independently operated at a profit over and above it's fixed charges. If there were any di- XersitX of interest in the nuLnershin of 1