Perth Amboy evening news., 1918-09-27


increase in fare would result. In order
that the. patrons of the railway COM
pany may not be unduly burdened
and at the same time hat the rail-
way company may not be financially
embarrassed some plan had to be
adopted which will be equitable both
to the public and the company.
Having adopted some such plan a
essary. The company being reim-
bursed for the deferred wages the
revenues then need only provide for
the current increased wages, and the
rates Of fare should accordingly be
reduced, says the decision of the util-
ity board.
The company offered estimat IS
showing the oun of Increased
wages 1t would be obliged to pay dur
ing the then remaining five months Of
the present fiscal year. The calcula-
Ions Of these estimates were based
upon the number of car hours and
maj hours actually operated during
the present year. No c~ontradicting
evidence having been presented, the
board caused the books and records
OF the company to be examined by
Its experts. and Is satisfied that the
estimates presented by the
are reasonably accurate.
According to the statement of the
company's counsel, a -ce fare
with an additional charge of one cent
for a transfer in effect between Sep
TENDER Is n December 81, 1918, a
period of three and a half months,
would yield sufficient revenue to make
up the difference of approximately
$4,000 between the actual wage In
ereases paid and to be Baid during the
l2sk~pxS~@entAs-of 191S.and the
omount of wnge Increases for which.
provision was made in fixing the pres
ent fare Of five cents with a one-cent
charge for a transfer. This Is equi-
table to approximately S246,000 addi-
fional revenue a month and is some
what larger than the estimated aver
age monthly Increased revenue at the
higher fare, viz. $212,500 the differ
ence representing the greater traffic
that usually occur during the last
few months. of the year than in the
other months.
The excess OF the total annual wage
increases effective August. 1918. over
the amount of wage increases for
which provision was made In fixing
the present fare OF Ave cents with an
additional charge of one cent for a
transfer is 81, 63o.00O, according to in
formation furnished the board by the
railway company. The excess from
August to December 81. a period of
avo months. would be $3.50, 600. Fur
Their Information by the company
showed that the excess up to the close
OF 1918 viii be approximately $780,
600. and s~ubtracting from this figure
the $680.000. leaves $3.50, 900 as the
amount of deficiency in revenue or a
deficit on August /, 1918. During
each month at the present rate OF fare
the deficit win be increased by 1885,
GOO. that is, n twelfth of $3.50, 900
above stated, n accordingly on Sep
TENDER is was approximately 1884,
600 and on October 15 will be $780,
900.
According to the statement of the
compnny's counsel the entire amount
OF the deficit accruing up to septem-
ber Is. 1913, would be practically
wiped out at the close of the year by
raising the fare on the former date
from ave to seven cents.
At the same average monthly gain
IN revenue. a loss OF $500. 900 accru-
ms up to October is. 1918 win be
made up In approximately Ave
the decreased traffic during the win
ter months results In a falling of OF
revenue
March 81. 1919 is, therefore, in
our Judgment a proper time limit to
allow for the making up of this def
cit" declared the utility board.
It Is also established by the evil
dence that when the company's den-
cit Is made up, a fare OF six cents and
charge OF one cent on each initial
transfer viii yield ssAicient revenue
20 enable the company to meet its op-
Grating expenses. pay bond interes
and rentals on leased properties. and
provide IN annual appropriation OF
$500. 900 for depreciation.