New-York tribune., 1918-03-15
Traction Delegation Asks
Governor to Urge Legis-
lative Action
Say Companies
Now Face Deficit
Will Drop Two-Cent Trans
fer Fight if Granted
Increase
IStnf Correspondencel ]

ALBANY. March 14.-T. +. Shonts'
of the Intcrborough; Colonel Tlmo1hy
s. Williams, of the Brooklyn Rapid
Transit; S. W. Huff, of the Third Ave
nue. Railroad Company, and other trac-
ton heads from all parts of the state
called on Governor Whitman to-day to
urge him to send a message to the
LEGISLATURE advising the immediate
massage of a bill making the rate OF
fare on all streetcar lines six cents
where it is now five. 1t is proposed to
have the law become effective April l
and continue in force until SIX months
after the war.
The streetcar men brought the bill
with them to remove doubt as to the
authority of the public service COM
missions to increase fares to more than
the five cents fixed by the railroad law.
The bill declares a six-cent fare "a JUST
and reasonable right" Review py the
commissions is permitted by the Dill.
Governor Urges Change
Governor Whitman suggested it be
amended so that the increase be per-
mjtted with approval by the commits
sions. That would clear up the law,
ne said. and yet not curtail the powers
of the commissions. II the slx-cen'
fare is established Mr.. Shonts SAID he
would urge dropping the appicatlon
for the two-cent transfer to see IL tne
additional one cent would not give the
needed income to make up tor the war
deficit
He said the income from two-cent
transfers. for which application Is no"
pending, would not be suthclent' espe-
c;allv in view of the extraordinary de-
mands for increased pay by labor and
other added expenses incidental TO the
war.
II would think this was wise meas
,re )" ,he Governor said after hearing
the railway men at the close OF thelr
long discussion.
II must consider the question thor
ouphly. I think that the commissi ion
should have the power of approval be-
fore any increases of fares go INTO ell
fect.
Horace f. Andrews. president of the
New York State Railways, whlch oper-
ates an extensive system through cen
trail New York, and a pioneer IN the T.
cent fare tirht, gave figures tendlng te
show that his company would not be
sble to meet its debts next summer II
aid was not forthcoming.
Tells of Decreased Earnings
The net earnings of the New York
State Railways were 81 1861 900 in l9lt
and decreased in 1917 to $S24,O0O, de-
spite an increase in gross income. Mr.
Andrews said in the first few months
Of this year. compared with the corre-
spending period of last year. there hac
been drop of from $164, 600 to 81 ,042
almost wiping out the income avallable
for dividends on preferred stock, whlcf
always have been met The company..S
floating debt is 81 500, 900, and there is
little hope of paying it unless solvencl
can be shown, he said.
at is a condition, not a theory, Wnlcf
confronts the railway companies OF this
state" Colonel Williams said. Little
relief can lie expected from the com
missions The First District Commits
sion held that it had authority to in
crease rates above the statutory limita
tons, while the unstate commission
maintains it has the power and Il
backed by the courts.
New Valuations Demanded
"When the requests were made 70
fare increases the companies under
stood the valuation made in recen
cepted Instead, thew were INFORMED
new valuations would be made.
"The requirements of proof to estab
lish our case necessitated long tim
for presentation, and meantime tn
companies in New York City and up
state are suffering. The commission
would not be deprived OF their power
by terms Of the bill and could rcduc
the rate after the war at thci
pleasure"
Other railway men Who attended tn
rearing we're Joseph II. Choate, chair
man Of the railroads committee; w. @
Wood, president Of the New York
Queens Traction Company; James f
Hamilton, of Rochester, vice presiden
Of the New YORK State Railways; IIarr
B. Weatherwax, vice-president OF tn
United Traction Company, of Albany
James P. Barnes, general manager 0
the Schenectady Railways Company
and L. j. Dickson, vice president of tn
international Railway Company.