New-York tribune., 1918-07-16
N. Y. Railways Company
Presents Case to Mayor
and Estimate Board
Emergency Is Alleged
Letter Asserts Dividend Never
Has Been Paid to the
Stockholders

appllcatlon for permission to increase
rates as a wartime emergency meas
ure, the New York Railways Company
which operates fourteen lines Of sur
face cars in the city, wrote to the
Mayor and the Board of Estimate yes
terday, asking speedy consideration of
the request. The letter, which fol-
lowed petition, directed to the Mayor
and the board, was as follows:
We have sent petition to your
honorable body asking that, in order
to avoid the delays of formal rate
case, the Board of Estimate permit
the Public Service Commission OF the
FIRST District to regulate our car fares
during the wartime emergency period
according to the actual needs rather
than by the franchise rate.
That petition has been referred to
the franchise committee. The petition
was made necessary by che recent de-
clslon OF the Court OF Appeals in the
Rochester case. In reference to this
petit.on may we also say:
ms is purely an emergency action
We do not ask the Board of Estimate
to abrogate any OF the citys rights or
powers, nor to alter, except for the
temporary emergency, any franchise
condition.
Precedents Cited
"Ihc wisdom of putting the emer-
gency problem in the hands of COM
missions has been thoroughly recog-
nlzed, The municipal authorities OF
Buffalo, Rochester, Syracuse, Schenec-
tady, Utica, Troy, Watervliet and many
smaller 4 n m IL,
states have taken this course in meet
ing the emergency of the street rail
roads, leaving them to be handled by
the state commission.
commissions in Maine, Massachu-
setts, pennsylvania, New Jersey. Indi-
ana Cal lIornia and other states are
now following this course. Their or
carnations, as constituted by law
comprise complete equipment and tech
nlcai forces 10 handle quickly the diff
hcuit emergency problems that come
up, both OF railway operation and
financial neeu.
"A formal rate case seldom takes
even with small companies, less than
SIX months. In Massachusetts, fifteen
rate cases, instituted between January
/, 1914, and May "a. 1917, took an av-
erage OF l44 days, varying from thirty
''-> W Il y NtAy Ae0llLlUg InlS Sltud-
ton, the Pubic Service Commission of
the lst District made a ruling on June
6, saying:
Where a company asks for tenn
porary increase in rates to cover in
part the present abnormal increases
IN operating costs and to yield to the
company during the emergency period
a net return at least not greater than
that earned by the company under nor
NAL conditions Immediately preceding
the war, the commission will endeavor
to cvold subjecting the consumers,
company, commission and public to the
labor and expenses Of a complete ap-
pralsal Of the company's property un-
der war conditions'
The commission declared that such
a procedure was not necessary 10
reach conclusion concerning the
merits Of an application for emer-
gency relief, reserving more complete
inquiry until normal conditions are
restored.
Questions Presented
The questions to be determined in
such procedure would be:
I'D Is an increase in rates neces-
sary to cover operating expenses and
fixed charges?
"(2) To prevent probable impair
ment of the service and property.
"(3) To prevent destruction of the
credit OF the enterprise.
"(4) To overcome inroads made by
advanced operating costs or diminished ID
patronage, and to allow to the util ty
an income no greater than that earned
before the war.
Every condition in our emergency
nj loo l. L.
sion OF the commission of the correct
procedure in these times. We do not
ask in this proceeding that the com
mission establish a rate Of fare that
VIII return to US anything like fair
return on the fair value of the prop
erty used IN the public service.
The demand for service in wartime
Is greater and more important than at
any other time. Efficient service is a
necessary part of the national pro-
gramme.
"Our emergency is extreme This
company's stockholders have never re-
ceived dividend. We have never paid
the full amount Of the interest on the
second mortgage, nor any interest on
1t since June 80, 1916, and we are not
even earning the interest on our first
mortgage.
But these are not the most ominous
factors. The trend is downward. The
deficit Of $1144,731 which we faced
January had grown 1903 ,632 greater
on May 81. Time and bankruptcy wait
for no man. We theref fore venture this
supplement to our petition. asking that
1t receive special standing. so far as
possible, for early consideration
Miss Hilda Holmes to Wed