Evening journal., 1918-06-07
UTILITIES BOARD
explains ACTOR
Points Out That Public Can
Ride for 6 Ia Cents
Under Ruling
INCREASE NEEDED TO
STOP RECEIVERSHIP

81 VI ALNHi NiNSAiaA
Members OF the Board Of Public
Utilities Commissioners today issuef
the following statement in explanation
Of the trolley fare raise which they
granted
There seems to be an entirely er-
roncous impression that the increase Of
fare granted TO the Wilmington ano
Philadelphia Traction Company give:
This company a straight 7-cent fare.
1T should be borne in mind that the
fare really is 6N cents.
svrhe Public Utilities Commission had
experts examine the mechanical part oi
the property. and also experts TO go
into the financial end Of their business,
and the figures submitted, in our iudg-
ment show that the company, in order
TO pay their running expenses. and the
interest on their bonded Indebtedness
only. as well as pay their trainmen a
maximum OF 40 cents per hour, neces-
STATED fare Of something over six
cent per ride and less than seven cents
As II was impossible 10 split a penny,
the commission adopted the four tickets
for q quarter scheme. or seven cents
single ride.
whether the compsny's bonded in
debtedness IS too high. and whether
their common stock is watered or rep
resents value. can only be determined
by an appraisal Of their property which
would require both large expenditure
Of money by the city and would take
months TO determine
"The traction company for some
time past has been losing money, and
this was a condition which had TO be
remedied or force The company into 1
bankruptcy.
"On account Of the importance OF
the traction company's property to the
government at this time. we are led
10 believe that the government would
not have allowed the company 20 have
gone into the hands OF receiver. but
would have taken il over and operated
It. and would have required the public
10 pay whatever rate OF fare was nee
essary 10 keep the traction company
solvent. In other words. they would /
have treated this company exactly the
came as they are operating the rail-
roads today.
Therefore. II seems TO the Public 1
Utilities Commission that it was up to |
the CITY OF Wilmington TO handle their
Ofn UilnlHihf hAH INh h'h'' 10 'i VIZ
government al this critical time.
"The commission had all the practi-
cal and financial facts before them, and
decided the case purely on the facts.
and endeavored 20 provide revenue only
for the operating expenses and interest
on the bonded indebtedness necessary
10 keep them out OF the receivers
hands and have not provided for any
III. uNnQE kyhQtCD-
ever.
This statement is not made as an
apology for the action Of the commits
sion. but to ende5vor 70 correct the M
preston which Il seems Is assidsousiy
being given 10 the public TO endeavof
to make them believe that the rate OF
fare was raised from cents to cents
PUBLIC UTILITIES COMMISSION OF
w1LMINFTON."
Members OF the commission who
were in the city today were served
with a summons from City Council 10
appear before Council tomorrow night.
The summons were served by members
OF the police department. after being
received from Clerk Of Council Homer
c. Simmons. They read as follows;
1--WE command you. that laying aside
ell manner Of business and excuses
whatsoever, you personally appear 3e-
fore the Council Of The Mayor and
Council of Wilmington at the Council 7,
chamber Municipal Building, Tenth
and King streets. in Wilmington, on
fhe Eighth day OF June, A. D., 1918, at
9 o'cIock In the evening 10 testify all
those things you shall know or be eX- q
smlned In the matter Of action OF the
Board Of Public Utility Commissioners
in grantly increased fares TO the VIII n
mington and Philadelphia Traction :
Company and this in no wise omit.
@Witness. the Honorable George 4.
Lyrlo. president Of The Council OF :
Wilmington, the seventh day OF June, Z
IN the year Of our Lord. one thousand I
oine hundred and eighteen. :
Homer c. Simmons. \
CLERK OF the Council /,
Issued June :. i9is.' I
Richard C. McMullen. president OF the Z
Utilities Commission. when asked ,
whether the board would appear before
Council. stated that II all depended on r
advice they would seek from City So r
hcitor Bayard lr
When Mayor Lawson was asked this 4
morning n he proposed TO cooperate \
with City Council. ne said that be was q
not going to take any action ~Nhal Il
does Council propose TO do, impeach a
man for an error OF Judgment In case IS
II was such, which ] don't believe 1t
was" the Mayor asked.