Perth Amboy evening news., 1920-12-07
resident McCarter in Letter
to Utility Board Tells Need
of Increasing Revenue.
HTES OTHER INSTANCES
lays that With New Increase
Best Company can do is to
Pay Present Expenses.
y Special Correspondent.

y Special Correspondent.
TRENTON, Dec. "A new sched-
lie of rates. which call for fiat ten
cnt fare with free transfers, and
shich was applied for today by the
eublic Service Railway Company.
las suspended by the Public Utili-
les Board. which announced that
he date to which it will extend and
be time for the public hearing will
,e filed later.
II for one do not propose to pass
pon any such rate until l have
eard from the courts of this state
shether we are to be upheld, de-
Jared President Slocum. referring
the hearing at Newark Thursday
N the question of the boards right
continue office.
Il am not asking the board to
ASS upon the rate, replied Colo
el Gilmore, counsel for the Pub
lc service, The Public Service pro-
loses that the rate shall become ef-
ective January /, and l hope be-
ore that the board will have re-
cived its justification in the hands
q the courts.
II am not critcising the court"
ontinued Mr.. Slocum but what
~ object to is this board being crit
Used and maligned because they
tad the courage to carry out what
his board thought was its duty.
ubmit that companies which are
ontrolled by the board should not
ie penalized for that condition. If
he court upholds us we will be
lere to hear your application for
he rate increase.
\ letter to the board signed by
resident Thomas n. McCarter. ex-
nained the company's position.
.he letter follows:
Dec. 7, 1920.
bear Sirs:
The rate of fare of seven cents,
9TH one cent for a transfer, upon
he lines of Public Service Railway
company has now been in effect,
Without interruption, for q space of
ne year. When this rate was re-
tored on December Z, 1919, it was
ioped by the company and expected
v the board that it would produce
rhcient revenue to enable the COM
any to pay its operating expenses
iid fixed charges and set apart
100000 per year for depreciation.
was thought that this rate would
eep the company going. although
rthout return upon its capital
tock, until such time as the valua-
Ion of the property of the COM
any, then in process of being made
the board, should be completed,
'hich it was thought would be with
few months, at which time a
nal rate could be predicated upon
ae value of the property as deter
lined. Since the passage by the
,gislature of 1920 of the act pro-
iding for valuation of the COM
any's property by independent en-
ineers, the board has suspended
hrther hearings in the valuation in
uiry it was conducting and is
waiting the valuation provided for
! the act above mentioned, as was
learly the legislative intent. This
aluation should be completed with
a few months.
Unfortunately, however, the rate
seven cents, with one cent for a
fansfer. has not done and is not
ding what it was thought it would
ccomplish. Instead of enabling
he company to meet it's operating
expenses and fixed charges and pro-
Ide a depreciation fund of $500, 900
er fannum. it has failed to provide
ny depreciation fund whatsoever
nd, In addition thereto, has result
In an operating deficit of approx
hately 100000. making a total
efcit for the year of approximately
100000.
This deficit has come about by
irther increased costs of labor and
iaterials over and above the
mount estimated a year ago. These
,creased costs are not represented
the amount of the deficit, which
ad it not been for the receipt by
ne company Of a larger increased
tvenue than was estimated a year
go.
This deficit of s1.2o6,oO0 for the
ear comes on top of similar deficits
)r the previous two years, which
ave resulted in a total deficit in
berating and depreciation amounts
approximately $3,600,000 for the
asst three years.
This is a situation that cannot
sntinue any longer. This property
bust either be saved for the use of
he people of the state promptly or
will disintegrate. if. in fact, it
bntinues to operate. Public Service
Drporation. the owner of its stock
nd its financial hacker. cannot and
pill not increase its burdens by
brther advances.
A very careful study of the rem
hy for the situation has been made
hd it is perfectly plain that. while
be present condition of operating
psts and unregulated and unfair
Dmpetition exists. nothing will save
bis property except a ten cent fare.
his lesson has already been learn
Il in many cities of the country.
'pwards of eighty cities now have
tlher fiat or base rate of ten cents
I'd this is true in some cities where
ne property is operated on a serv-
.s-at-cost principle. Such large
lies as Boston, New Haven, Hart
t-d and Bridgeport already have a
IN cent fat rate, Pittsburgh has
base rate of ten cents. Chicago
,j a base rate of ten cents upon lis
waited lines and a fiat rate of six
tnss upon its surface lines.
(COnfinued on naoe 3