Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1920-12-11

position in the following letter Utility Board:
December 7, 1920.
The rate of 7c with transfer upon the lines
of Public Service Railway Company has been in effect with
interruption for of year. When this rate
December m 1919 hoped by the Company and
expected by the Board that would produce sufficient to
enable the Company to its operating and fixed
charges apart $4,000 per year for depreciation
thought that this would keep the Company going although
without upon its capital stock until such time the vaua
ton Of the property of the Company then of being
made by the Board should be completed which it thought
would be within few months at which time final rate could be
predcated upon the value Of the property determined Since
the passage by the Legislature Of 1920 of the Act providing for
valuation of the Companys property by Independent engineers
the Board has suspended further hearings the valuation
curry was conducting and awaiting the valuation provided
for the Act above mentioned clearly the legislative IN
This valuation should be completed within few months
Unfortunately however the of 7c with transfer
has done and not doing what was thought would ac
compsh Instead of enabling the Company to meet its operating
$4,000 per It has failed to provide any depreciation
fund whatsoever and in addition thereto has resulted in an
operating deficit OF approximately making total dehc
for the year of approximately $l,2O0,OOO
This deficit about by further increased costs of
labor and materials and above the amount estimated
These increased costs not represented by the amount OF
the deficit which would have been very much greater had not
receipt the Company of larger increased
than estimated year ago.
This deficit of 100000 for the year top of
similar deficits for the previous two years. which have resulted in
mate1y $3,6oo,ooo for the past three years.
This is situation that continue any longer This
property either be saved for the OF the people OF the
State promptly will dsnegrae it, in fact continues to
Public Service Corporation the owner OF Its stock and
it's backer and will not increase it's burdens by
further advances
very careful study of the remedy for the situation has been
made perfectly plain that while the present condition OF
operating unregaed and unfair competition exists
nothing will this property except 1Oc fare This lesson has
eighty cities either flat base rate OF 1Oc and this is
cities where the property operated on servca
cost principle Such large cities Boston, New Haven Hartford
and Bridgeport already have loo flat rate Pittsburgh has base
rate 0 Chicago base rate OF lOc upon Its elevated
lines and flat rate of SC upon it's surface lines
But whatever the facts may be in other places the necessity
here is perfectly The best estimate that make OF
what will do for the next fiscal that will enable
the Company pay operating expenses its liked
charges set apart proper for current depreciation make
up it's operating deficit and oned OF its past deficit IN the
depreciation allowed by the Board that after three years the
depreciation of the last three will have been recouped
The Railway Company has also been obliged during the last
three years provide additional monies for absolutely necessary
capital expenditures thus adding to the plight in which it finds
itself can however, borrow and further capital
expenditures can be made until the situation is relieved whatever
their necessity.
Under the foregoing statement Of facts the company finds
itself compelled file herewith flat rate Of lOc where &c
charged carving with however, free transfer privilege
Consistent changes also made in the school rate
In compliance with the statute the rate made effective at
least twenty days off, January LIST, 1871
Very truly yours,
THOMAS N. McCARTER,
President.
To the Board of Public Utility Commissioners