New-York tribune., 1918-03-27
Higher Carfare
War Move, Says
Trolley Co. Head
McCarter Tells Board Ship
yard Extensions Force
Increase in jersey

TRENTON. n. J., March 26.-Rea-
sons why the Board of Public Utility
missioncrs should allow the in
crease of fare from five to seven cents,
with two cents for transfer and a
cent for a transfer on transfer. were
presented to-day by Thomas n. Nc
Carter president Of the Public Service
Trolley Company, which has applied
for the permission.
President McCarter said that the ap-
pIication for more fare was absolutely
a wa measure, and he gave in detail
the elemehts that led the company to
al. for the increase.
"The government said Mr.. McCar-
ter. has asked the company to make
extensions aggreg eating $10.S22, ,723. Of
II amount contracts for improve
ments amounting to S6643 ,013 have al
ready been let, and most o. the work
is to be done in Newark IN connection
with the shpyards. The government is
advancing i of this money and the
pany is to pay per cent interest
.or the duration o. the war"
Mr. McCarter's testimony was calcu-
lated to show the necessity for the ad-
ditional revenue, and he said that in
1916 the company declared dividend
OF 3 per cent, and in 1917 a dividend of
"a per cent.
This dividend in 1916 amounted to
$1,49l,06G ard in 1917 to s1,496.4G1.
With the present rate OF fare as a
basis, it was the estimate of Mr.. Nc
Carter that in 1918, unless the COM
is granted an increase, it will
have a deficit of S1,01063S.
Mr.. McCarter's testimony will be con-
is represented before the Utility Board.
The application of the company is
being opposed principally by the New
Jersey League of Municipalities, repre-
senting more than two-thirds of the
population Of the state. The league
IS represented before the utility board
by Marshall Van Wrinkle. of jersey
CITY, and George l.. Record, of jersey
City.
Upon the opening of the case to-day
Mr.. Van Winkle made the following
statement to the Utility Board:
We have engaged Delos F. Wilcox
of New York, as expert in chief to
have charge of the preparation of the
proofs to be submitted on behalf of
the municipalities. He will undertake
under our direction to ascertain from
the books of the company information
which we deem necessary for the pro-
lection of the municipalities side of
the case.
That information will, in general
terms. be aimed to sustain our con.el-
ton that the capitalization of the COM
pany is far in excess of any money
actually invested in constructing the
company's plant, and that therefore 5ne
tive-cent fare which has prevailed for
many years has afforded more than
reasonable return upon the value cf the
company's property and that five cent
fare to-day, Notwithstanding tho in
crease of labor and materials which
viii be shown by the company, is amply
sufficient to afford such return.
we shall endeavOr to trace the his
tory Of each Of the constituent COM
panies which, through successive mer-
gers, have finally been Incorporated
into the Public Service Railway Com
panS and to show by these mergers
that all of the stock issues and sub
stantial percentage of the bond issues
represented no investment of capital
and no service rendered and are what
is popularly termed 'watered securi-
ties upon which we will contend that
the company has never been in the past
and is not now entitled to earn re-
turn -