The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-07-16
RATE HEARING
IS CONTINUED
Rate Expert for Stone & Web
ster Believes Ten Cent Fare
Is Necessary Here.

Hearing on the, application of ]. G.
Holtzclaw, receiver for the Pensacola
Electric Co., was continued yesterday.
c. F.. w. Weterrer, manager of the
southeastern division for Stone d
Webster, testified that he believed a
10 cent fare to be necessary in Pensa-
cola. Testimony was taken through :
out the day and late yesterday even
ing the hearing was adjourned until
the Railroad Commissions engineers
can examine the property to ascertain
in what condition it has been kept.
The floating debt of the Pensacola
Electric Co. at present according to
l.. r. Nash, rate expert for Stone &
Webster. is: Coupon notes, $2S1,9OO;
floating debts, s290,OO0; receipted GER
tificates, s25, 900, making total of
s596,90O.
Mr.. DeVane interrogattd Mr.. Nash
on the public efficiency of the com
panv at present. Mr.. Nash replied
that it was 100 per cent efficient how
ever it has only earned 40 per cent OF
it's efficiency in the past Is years. the
reserve keepipg up the deficit in Ii
abilities. According to Mr.. Henderson
the deficit has been about 2 per cent,
cent. Some Of the depreciation has
been taken care of by the operating
expenses andahe reserve in hand.
Since 1906 there has been very little
extension wark done on tracks, lines,
locations, meters, transformers, etc.
while investments have increased over
81 .ooO, 900 in the last Is years, the COM
pany earning something like 4.0S per
feYred stock has been paid out of
money that should have gone to the
deficit fund The going concern val
ue has increased Is per cent, while
there has been a per cent deprecia-
ton in this case.
According to Mr.. Nash the total
mileage on tracks in. 1906 was 1914
miles. compared to 23.9 miles in 1920,
thereby showing an increase in public
service and a greater Improvement for
the general good of Pensacola.
In answer to the question put to
Mr.. Nash by Pope Reese jas to what
rate of fare, as now contemplated,
would yield a net earning for the COM
pany as a basis Of putting the COM
pany on its feet, Mr.. Nash answered
that the rate of fare would have to be
something in excess or SIX cents.
c. r. w. Wetterer.
Mr. Wetterer has for many years
been connected with the Stone & Web
ster Co., operators of several street
railway systems in the United States,
and at present is divisional manager
of the southern district. His home is
in Boston. He stated in answer TO a
question put to him by Mr.. Reese.
that he was familiar with Mr.. Hahp's
appraisal. and believed it to be fairly
accurate. He stated that the city OF
Pensacola derives 1-37 of its taxes
from the company, that under the new
regime in street car rates in the city
of Pensacola the street car conductors
would receive an increase Of approx
imately 900 a year, that as freight
charges on coal have gone up all over
the country railroad rates have also
been raised in proportion, thereby full
filling the law of supply and demand.
He also stated that the excess fare
contemplated would necessarily have
to be fixed at not less than 10 cents
by very reason of its psychological ef-
feet on the people at large, who would
surely rather pay ~ single piece of
money than several pieces of Nancy,
that an increase of cents in the fare
would not be sufficient to cover the
deficit in the company but on the
other hand, larger fare would ruin
the street railway system in PensaL
cola.
No o-continued On Paue z