Evening journal., 1919-09-23
Without &C. Fare Co Can't
Operate, Says I. W. Wilson

Niolo VI blit Nulhlhul VIII NoliuuN CIT.
officials. representatives OF labor busl-
ness men and bankers. and Tho granting
OF such increase was advised by them.
1T would seem that there Is present
ed TO the commission for determination
but two questions:
First Do The railway operations Of
this company, with the present rate OF
fare. provide sufficient revenues out OF
which TO meet the increase IN explendi-
lures occasioned by this increase in
wages?
second II such railway operations
do not provide sufficient revenue, Is an
eight-cent rate OF fare necessary 10 Sc
cure such revenue?
1T is respectfully submitted that the
evidence before the commission fully
demonstrates the absence OF sufficient
revenue out OF which 10 meet the in
erase in expenditures.
There is before the commission a
certificate OF Lybrand Ross Bros. and
Montgomery, certified public account
ants, showing the earnings OF this COM
pany from railway operations within
The State Of Delaware for The year end
Ing the Both Of June, 1919. This dis
closes a loss, due TO such operations
for said year, OF s37,OO6.d5. These pub
lie accountants, OF national reputation
and highest standing certify that they
have audited the accounts OF the VII
mington and Philadelphia Traction
Company for the year ending the 3Oth
OF June, 1919. and that in their opinion
the statement as fled correctly sets
forth the results OF the operations OF
The railway equipment OF said company
within the State OF Delaware for that
period. In the absence OF any proof to
the contrary, this certificate must be
taken as establishing the fact that IN
the operation OF the railway depart
ment Of the Wilmington and Phlladel-
pia Traction Company within the state
OF Delaware, for the year ending June
80, 1919 the operating revenues were
insufficient by s37OO6.l5 TO meet the
operating expenses. interest. rentals
and taxes. II Will be remembered that
this condition prevailed over a period
during which the old rate Of wages was
in force, and during all Of which there
was available the revenue from the six
cent rate Of fare.
1T would seem that nothing further
is necessary in order 10 demonstrate
the lack OF revenue out Of which TO
meet the increased wages.
III. under a condition OF an old rate
OF wages with the present rate OF fare,
The operations FOR a year show a de-
hcit Of upwards Of S37 900. an increase
In wages will necessitate an increase in
rate OF fare sufficient to pay such in
crease in wages. 10 appears in the evi-
ience that the increase in wages VIII
result in an increase in operating ex-
penses OF $4,000.
"The evidence also shows that with
an eight cent fare in effect. and the
new scale OF wages. the deficit for the
year ending June 30, 1920. from railway
operations in Delaware would, be $40
poo. This clearly demonstrates that
even an eight cent fare Will be insuffi-
cient TO provide funds TO take care OF
the increase in wages.
"The statements OF operations OF this
company have been those Of the rail-
way department within the State OF
Delaware. 10 is a matter Of record be
fore this commission that reports in
This FORM have beer submitted to this
for upwards OF a yeas past.
in accordance with the order o. the
made on this company on
lhe 9TH day OF June. 1918 in the matter
Df the petition Of this company for ap-
1rOval OF seven cent fare.
This company has, for upwards OF
zine years. kept its accounts accord
ing TO the form approved and pre-
scribed by the Interstate Commerce
Commission, and the statements If
filed are summaries OF the ac-
counts Of this company so kept
THE railway department OF this com
1anv. in Delaware, is operated as
init. There has never been any thought
)r suggestion OF the propriety or neces-
iity Of otherwise operating this com
any.
THE New York Public Service Com
Second District. has clearly
shown its attitude on this question in
he decision handed down on November
g, 1918, In re New York State Rail-
ways, being Case No 6O9O Public Util-
ty Reports 1894, page 755. at 1867:
1t is common knowledge that the
lctual limits OF community are not
pounded by its geographical lines, and
hat in the case OF all OF our cities
here is adjacent territory, peopled for
he most part by those doing business
n the city, and all forming a part OF
he one community. In such cases il
nay be fairly said that IL Is an impos-
iibility i'm practical operation TO seps-
ate the accounts to show accurately
he revenues, the expense Of operation.
IT even the investment in property used
n the service
And further:
"'This whole territory Is operated as
/ single fare zone, and one fare is the
)rice paid for a continuous trip between
my two points therein. The only prac-
icable way is to treat this system as a
whole, and TO dispose OF the question
" the rate OF fare upon the basis OF
he result as shown from the operation
II the system
with the present system OF fare
zones, il would be physically impossi-
,le to segregate either the revenues or
expenses OF that portion Of the lines
within the city from the surrounding
errtory. Nearly all Of the lines ex-
end for some distance beyond the city
limits. and In some cases one fare
'arries a passenger to a point two or
hree miles beyond the city limits. For
Instance on the through line TO Phila- |
lelphia. the first fare limit extends to |
3ellefonte, a distance OF about two |
niles beyond the city limits:
"The Rising sun line extends TO /
Iunter's Corner, a distance OF more /.
han a mile beyond the city limits; the /
,rsndywine Springs line to Oak Grove. 1