Perth Amboy evening news., 1920-12-08

President MeOaltsr sets forth Railway position in the following letter to the
December 7, 1920.
s,,v; The R rate of t csso %, 7s' D with . 1s 5 5s "a it srs sasst. ~ %RGn the in hss of p"p fs
a space of m year. When this ratew was restored OF December It'll, 1919,
du %ss su asesa 1y revenue 's n'1 ta snsb 1sd the sAe eempan Sy to tn pay S'i its o %s Il V expenses p%s
tho gt1 that Mathis this rate would keep the company nn Sy' going, although without re-,
IT. turn A. upon g"m its capital itsa stock ste n11o uni Il such Sdn time m,S as the h t 1slq RtseG Of shs the property Ss pert
pleed, which i as thought would Be within a few months, at which time a
Since Since the the passage pasu s% BY the Legislature s@r Of 1920 Of the Act providing for a TalDs-
pc" 60 'h fsrS dS%p hearings 9sG% % ts ~ sai iasSeSnf iaqaS sSs IT Ss. es b"aia 's and i IS
awaiting the valuation provided for in the Act above mentioned, al vas clear
y te legislative intent This valuation should be- completed within a few
done and is not doing what it was thought it would accomplish. Instead of
sessiss /. "a s.e ssasass to fsn %ss # IS sso sSss5' pss sesssn,3 t ' Rs. h fssd f1 to gso! as
ar operating deficit Of spppsrSo1dimostey 100000, making a total deficit for the
This deficit has come about by further increased cost of labor and ma
tssisls sr sv sst ,sd sssSs the he 1 ss amss sstn M ted s q sssr w sssi r 1hSsS h insse sssa
very much greater had it lot been for the receipt by the Company of a
'''ss This iss ds%ds Of sfs sisco %s1 f %'s the ss Sar comes "A yea on t sgot of similar deficit. for
depr seis&%s sS sesss Of " appPo ai~s 5ss's ss'so % : S'S fer d 1Se ps a t sRsss: YEARS. s'
9Th. This is i.a a situation tai ito that as ea m cont continue e. any s longer; This property must
ewnsr 81 i t, % . ssSt' i as 1G is snsss sS 0 Bsessr c ppoGs s sssVi MSu Corporation n%1 irstsss,. the The
burdsns by further advances
" " u preyalas gi smd , unfair w eo@p sai Rass sasts s' nothns vi 6p ssvs this ' osops a%
country. Upwards of eighty cities now have ehr a flat or base rate of Toe
cost principle Such large cities as boston, New Havsn, Hartford and
Chicago has a base rate of Zoe upon its elevated lines and . flat rate of Sc
But whatever til. facts may be in other places, the necessity here is per
tecty plain. The best estimate that We en make of what this rate will do
or the next fiscal year is, that it will enable the Company to pay its prescnt
operating expenses its fixed charges, set apart a proper amount for current
@ de iSs isss,i %ass a aRo 's GP sy shs B ss e $. an" tM S"s siasr three 1f It's yes ss' . as4 Stt
probation loss Of the last three years will have been recouped
The Railway Company has also been obliged during the last three years
to provide additional monies for absolutely necessary capital expenditures,
thus adding to the plight in which it finds itself. 1t can, however, borrow no
more and no further capital expenditures can be made until the situation is
relieved, whatever their necessity.
n.u. Under i'd It'll the s. foregoing ,s statement snsa t, Of f. facts the Company finds itself com
with it., however, a free transfer privilege.
Consistent changes areab also made in the school rate.
In compliance with the statute, the rate is made effective 1t least twenty
days off, or Oh January LIST, 1921.
Very truly yours,
THOMAS N. McCARTER,
President
To the Board of Public Utility Commissioners
of the State of New Jersey.
Trenton, New Jersey.