The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1916-02-15
The Trolley Hearing.

nO LOAAN1 tAOdAAM8s
9 The application Of the Burlingto
It County Transit Company for permissio
e to increase its fares between Moorestowl
o and Burlington was taken up by tn
: Public Utilities Commmision on Tues
r day. The company was represented b,
: George b. Evans of Moorestown, ant
e with him were associated J. ID. Johnson
3 Jr., vice president of the road; Armi
: Coate, secretary and treasurer; anC
/ Edwin c. Davis, superintendent. Those
who were in opposition to the movement
} were represented by committees that
had been appointed for that purpose
Elwood H. Stokes and James T.. Royle
! appeared on behalf of the Northampton
township committee; William C.
Wetherill, Charles Coles, Charles H.
Folwell and Herbert S. Killie, from the
Mount Holly Business Mems Associa-
ton; Clifford r. Powell. for Lumberton
township; and Thomas p Birkett for
Burlington township. Mr.. Killie also
looked after the interests of the town
ship Of Westampton, and, with Mr..
Powell, took care of the legal end of the
proceedings.
Armit Coate was the first and only
witness examined on Tuesday and his
testimony covered about every available
point that could be considered. He
gave the history of the road from its
Reorganization and told how the road went
into the hands of receiver in 1910 when
it was sold to the present owners for
$4,000 There was an organization and
the stockholders, who were the former
bondholders, were assessed so as to keep
in the treasury certain sum Of money,
about $1,000, but they had not been able
to carry anything out of the earnings to
the depreciation account as required bv
the Utilities Commission. No new
equipment has been purchased, except
to replace worn-out motor on one of
the cars. Eleven cars are in the possess
sion of the company, but only five Of
them are in use.
Mr.. Coate gave statement of the
amount of receipts during the years
since the reorganization, the net pro-
ceeds being somewhat reduced during
the last few years owing to the increase
in the costs of materials for repairs. He
estimated that if the increase in fares
was allowed the net additional receipts
would be $500 per annum. Then, with
the possible cutting down of service to
hourly trips instead of half hour as at
present, nearly $4,000 would be added.
This came as surprise to Mr.. Killis
who said he had not heard of an intend
ed curtail OF service, but Mr.. Donges,
president of the Commission, said this
phase Of the subject might be brought
up later.
Mr.. Coate admitted that the estimated
increase in fares would not be sufficient
to operate the road and carry $1,000 an
nually to the depreciation account as
the Utility Commission requires. This
might be accomplished if the curtail-
ment in service was allowed. In the
latter case three cars would be used in
stead of five as at present He did not see
how new cars could be purchased even
on the increase of fares, as new car
costs $1,000. Mr.. Killie asked what
assurance the public would have that
the increased revenue, if the fares were
raised, would not go out in the shape of
dividends. This question was objected
to by counsel for the company on the
ground that the witness could not give
any definite answer to such an inquiry.
and at any rate the stockholders were
entitled to some return for their invest
ment. This caused president Donges to
remark that the first obligation OF
public utility corporation is to give pro-
per service and set aside an annual sum
for maintenance. The question of divi-
dends must be an after consideration.
Mr.. Coate said contract had been
made with the Public Service Company
to supply current for running the cars.
This move had been made necessary
owing to the fact that the plant at
Hainesport had about outlived its use
fulness. 1t would be cheaper to buy the
current than to repair the old plant. 1t
was estimated that the cost of this move
would be about 500, 900 per year, with an
additional cost of 81, 600 for maintaining
La power house where a transformer
would be located. While the power to
be procured from the Public Service
Company would be all right for ordinary
needs there might be times when addi-
tional power would be needed, SO the
power house at Hainesport would not be
disbanded but would be kept in order as
a reserve agent. There would not be
any saving in having the old plant put
in condition to furnish power as the cur
rent could be bought almost as cheaply
as it could be manufactured
The next question put to the witness
by Mr.. Killie involved the subject of the
sale of the road. Mr.. Coate was asked
if the company would accept $120, OOO-|
the price paid for the road = if that
amount in cash was offered. This
brought forth a protest from the COM
pany's attorney on the ground that if
the company did desire to sell the nam
ing Of price might prove prejudicial to
the action. Mr.. Killie then tried
another line and asked if the company
would accept an offer to lease the road
for a period of ten years at an annual
rental equal to six per cent on the
capital stock, clear of allexpenses, with
the additional security that $1,000 be
annually carried to the maintenance ac-
count, and that when the road was re-
turned to the company there would be
$50, 900 in that account.
Attorney Evans objected to this ques-
ton, also, but President Donges inclined
to the idea that if the question was
prompted by expectations of being able
to bring such proposition from respon-
sible interests, it was worth serious con-
sideration. He termed it "a substantial
suggestion" Further, he stated that
the owners while not compelled to sell,
unless they wanted to, even if operating
at loss or their investment was not
profitable one, were obligated to give
service and if they were unable to pro-
vide this in way that was satisfactory
to the public, then such proposition, if
made in good faith, was pertinent.
This ended the hearing and an ad-
iournment was taken until Thursday
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