The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-08
CAR TRANSFERS SET
ATPRICE CENTS
Continued from First Page.

made by the New York Railways Com
pany In April. 1917. He continued:
THE case has been prevented by coun-
sci of the receiver from the standpoint
that IL no financial relief is now granted
the Federal Court will authorize the
separation OF tho property. but that
with relief the present system may be
maintained.
The greater portion Of the case has
been presented on the basis. OF operating
results for the six months ended March
81, 1919. For those six months the OPP
Grating Income above operating expenses
and taxes, exclusive OF any allowance
for reserves, amounted to 100000 In
round figures. and accordingly the earn
ing power of the company at present
fares has been stated at about $4,000
a year. -'
Testimony was presented showing
that a three cent charge for transfers
would bring n maximum additional reve-
nue. of 100000 a year, SO that X the
application be granted the company
would have available a total income
above operating expenses and taxes OF
about $1,000. 900 a year.
This would be far from being an ade-
quate return on the investment. 1t
would not even be sufficient to pay rents
on the leased properties. but would en-
able the receiver to pay the rentals on
the most important lines and thus keep
the heart OF the present New York Rail-
ways system together Counsel for the
receiver believes that II only the least
profitable lines were now cut of from the
system the owners would finally be COM
PEELED to accept substantial reduction
l.. IL .Na1 ia NJ
ties could ultimately be brought back
into the system with greatly reduced
rent charges.
THE present operating condition OF
the company was so presented that con.
illusions might be misleading While the
income above operating expenses and
taxes for the six months ended March
81, 1919. amounted to only 5000, 900, this
does not properly show a present earn
ing power OF only 100000 a year
Stating the operating results separately
by months, II appears that the low re-
turn of only 100000 for six months was
due TO the very exceptional months OF
October, November and December, wher
traffic was demoraliZed on account OF
the influenza. In January operating con-
dItions began TO improve, and in March
the last of the six months period, the
net earnings above operating expenses
and taxes amounted to SCOPES, or owe,
90 per cent. Of the total for the siS
months.
Further. for April. the net earning,
were s1SS.S65. For May, the gross re.
ceipts were about $4,000 greater tina,
April. while in June they were about
$4,000 less. Figures for operating ex
pepses and taxes for these two months
were not available. but IL they were ir
the same proportion as for April the net
earnings above operating expenses woulC
be about the same as for Ar-!..
April Is a Typical Month.
April Is usually considered n typica
or average month OF the year. Its gros.
receipts are not the greatest of the year
but about normal. as are the expenses
II. then, the April results for this veal
be taken as representing what may rea,
sonably be expected during the mex
year, we have resultant net earnings IT
excess OF 100000 a year.
ION the other hand the commission
realizes that maintenance of the prop
erty has probably not been adequat
because of lack OF resources. that Their,
has been no allowance for reserves
which should properly be made, and tha
huge present obligations exist that mus
be paid. The commission Ia thoroughly
convinced that in spite OF the great i'm
provements In operating conditions since
the beginning of the year the company
Is not now earning and Is not likely L
earn fair return on its investment, Il
indeed It will hereafter he able to carr
even rentals on leased lines.
1.-THE commission. after careful con
sideratlon OF all the facts, has decided
to grant conditionally n charge OF .
cents for transfers. BY the statements
! showing operating results by years thu
fact appears clearly that the compan!
never has made excessive earnings
While the commission cannot now def
| nitely determine the fair value of thu
property. this probably is not and neve'
has been less than reported to the Stat
| Tax Commission. On this basis tn,
| average return since the reorganization
OF the company in 1912 has been unde
6 per cent, and during the past yea
has been far below fixed charges.
The case. however. is not a simpl
one, in spite of the company's fnancla
difficulties. I believe that except wher'
there are specific requirements for fire.
transfers at intersections of two line
the commission possesses ample author
ity to deal with trainers as may seen
| unutT NlTCuUlblautcS dilN
I am now acting according to this view
The Decision in Detail.
"My decision IL this: l shall ALLOW
| n charge OF two cents for transfers n
all points except where free transfer
are now legally required. But this per
mission shall extend only 10 July 7, 1926
| and II further conditioned upon the en-
| tire New York Railways system belnI
| kept together as at present constituted
| Under ordinary circumstances ] SHOULD
| consider II charge for transfers a
wholly unreasonable. resulting in gros
| discrimination between different classe
OF passengers and different parts OF tn
city and In establishing disjointed sys
| TEN of rates.
| But in the present case the choice
between an unreasonable system OF rate
! and the dissolution of the service. Whic
| OF these evils will cause tho greater in
convenience to the public? The answe
to my mind Is clear, and therefore see
to maintain the unity of the present sys
TEN at the cost OF very unsatisfactor'
method OF charging for service. Tn
charge for transfers becomes REASONABLE
only because II would be more unrea
sonable 10 permit the collapse OF the ser
vice.
MY thought in limiting the increas
| to one year Is In part TO await furthe
traffic development, but chiefly TO max
possible satisfactory permanent set
Element between the companies and IN
city. The present franchises, unde
which the company operates, are unrea
sonable in two respects: CD RestriC
tions on fares. Ind (2) the permanent O
long time rights granted to the streets
Neither restriction nor privilege Is jus