The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-28
NEW YORKRAILWAYS
SEEKS HIGHER FARE
President Shonts Says Raise Is
Imperative to Avoid Re-
ccivership.
EXPENSES ABOVE INCOME
Increased Payroll, Costs and
Materials Cause for
Appeal.

Theodore p. Shonts, president OF the
New York Railways Company, declares
in the annual report Just issued for the
fiscal year ended Juno 80 last that UNI
a receivership for the com
pany cannot be avoided.
For the fiscal year covered in the re-
port the company's income was $780,
6sf less than the sum required 10 pay
Its operating expenses, rentals and In
terest on It's per cent. first mortgage
bonds. In other words, It lacked this
amount in payment of the interest on Its
cent. bonds and paid no interest on Its
$40. 609,4s7 of per cent. adjustment
bonds.
THE result is inevitable says Mr..
Shonts. Reserves have been depleted
and available funds from all other
sources are being used up in an en-
deavor to maintain the service until an
Increased fare can be had. Unless this
is speedily Forthcoming a receivership
cannot be avoided, with It's attendant
losses and probable disruption of SER
vice, as under q receivership a large por-
ton OF the service now rendered by the
company at a loss would be discontin-
ued."
Mr.. Shon;s states that an appraisal of
the valuation OF the property made dur
ing the year shows the reproduction
cost of the physical property OF the COM
pany, based on normal average prices,
less depreciation, to be approximately
$40. 000, 900.
"A fair return on this amount" con-
tinues Mr.. Shonts. would enable the
company to continue and TO improve
Its service. pay interest on its bonds and
a small dividend on its stock. In COM
mon Justice Il IL entitled to this. This
policy has already been adopted In a
very large number of cities of the coun-
try and adjustments made on the basis
OF fair return on real value"
Payroll Increased S2.4OO,OOO.
To furnish adequate service the COM
pany states 1t was necessary to increase
the payroll AT least S2.400,O00 during
the year. and calls attention to the fact
that not only has income diminished but
expenses liaSe increased enormously, es-
pectally for materials and labor.
Gross passenger revenues for the year
totalled sl1.6l5,?4s, an increase over the
preceding year Of s4ls.51S. but compared
with revenue from passengers in 1914
show n decrease OF 81 ,SO6.433, or 1916
per cent There were also 34,s4s,7e4
less passengers carried in the fiscal year
ended June 80. 1918. than in the twelve
months ended June 80, 1914.
Mr.. Shonts says the adjustment bond
holders are increasingly persistent that
all commemorative service shall be
discontinued and that the company shall
not waste its assets by continued opera
ton at loss.
Between the aggressive Insistence OF
these bondholders on the one hand and
the procrastinations and delays OF the
public authorities in taking action on
the other" says Mr.. Shonts, 1.-THE posi-
ton OF the company 10 becoming in
creasingly difficult, and we can only say
that We are using every endeavor to Sc
cure action TO the end that complete
disruption of the property and service
may be avoided"
Reasons Given for Raise.
-Four reasons are given by Mr.. Shonts
as the basis for the assumption that an
increase in fare Ia not only a matter o!
Justice but one OK necessity. They are
81. The large increase in cost OF all
materials entering into the operation
and maintenance of the line-an in
crease, upon an average. exceeding by
from 100 to 900 per cent the prices
prevailing during the pre-war period
"2. Advances In daily, weekly and
monthly rates OF pay have been era nted
to employees during the year repre-.
senting an annual increase of approx
mately S322. 900. and In addition thereto
there have been increases in bonus al
lowances within the year, an estimated
annual expenditure OF approximately
S4Ts,000; thus these increases in pay
and bonus allowances, based on the
volume Of labor employed at the time
such increases were granted. represent
ar increased annual payroll expendi-
ture OF approximately 100000. Fur.
| Their increases have been made effective
| since June 30, 1918. in the daily
weekly and monthly payrolis which or
the basis OF a complement OF employees
necessary to furnish adequate service
will involve an additional expenditure
OF approximately sl.600.000. So that
| roughly estimated. there will under
| adequate service be an increase in the
annual payroll cost OF at least $2,40o,.
| 600.
80. The continued loss of experienced
| employees. due to the draft and tn,
| attraction of high wages in the variou.
var Industries.
| -, decreasing traVeI que TO the dis
continuance OF building and other active
trades within the city, and the shiftinl
OF the population SO employed u wal
| industrial centres.
In addition TO the foregoing-ai
though not directly connected with tn,
| war but furnishing basis for equitabl,
consideration upon the part OF the city
| authorities-is the necessity of rehabili
| tating the trackage OF the company II
order TO rectify disturbances created
by the construction OF the new rapiC
transit lines. which maintenance had t