New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-21
Oren Root Defends Fare
Jump to Ten Gents on
Ground 1t Was sugges-
ton of the Commission
Cities and. Towns
Rise in Protest
Commuters and Officials
to Make Demonstration
at Hearing on April 29

While officials and citizens of New
Jersey and Manhattan were making
preparations to fight the boost in fares
in the Hudson tubes the head of the
operating company asserted yestcr-
day that the increase was not only
sanctioned but was suggested by The
Interstate Commerce Commission.
Oren Root, president Of the Hudson
e. Manhattan Railroad. Company
brought forth numerous documents to
show that all the procedure necessary
to obtain permission for the raise had
been duly complied with and that all
the transactions between the commits
sion and the company in connection
Herewith had been made public from
time to time.
The company first made application
for fare readjustment on March 8, at
which time a fiat eight-cent fare was
asked. The tube officials contended
that the cost of operation train
mile had increased since 1914 from
1921 cents to 81 cents, or had more than
doubled. At the SAINT time the fare
had remained the same, having had
no general increase in rates, as did
other interstate roads under the Fed
eral Railroad Administration
Not to Provide Dividends
The total capitalization of the COM
pany is s122,977, 1886. Prior to 1918
the bulk of the bonded indebtedness
of the company consisted of Az per
cent bonds, on which the interest had
been paid up to that time. Then $685.
100000 of Az per cent bonds were
surrendered by holders for an equal
amount of refunding and adjustment
income bonds, to bear interest only
when earned. But since September,
1916, these adjustment bonds have re-
ceived no interest.
1t was insisted that the increase was
not asked for the purpose of provid-
ing dividends. After hearing before
the Interstate Commerce Commission
the latter addressed communication to
the company on April 8 suspending the
gesting the six and ten cent tariff. In
this communication the commission
held that after an examination of the
facts "the return on the approximate
capital invested appears at present to
be unduly low"
"It is suggested" runs the docu-
ment, that the petitioner carefully
consider the proposed substitute plan
6 and 10 cent proposton], and if after
consideration it desires to file tariffs
complying Herewith in order to try
out for a reasonable period, from three
to six months, the proposed fares, such
tariff may be filed for consideration by
the commission. Such experiment may
cbviate the necessity Of a detailed
statement and investigation and will
enable the carrier without the delay
which an investigation would involve
to obtain in a measure some additional
revenue, to which it is prima face en-
titled"
Hearing on April 20
Or April 5 the company announced
that it would file a tariff along the
lines suggested by the commission and
two days later posted notices that the
ne~ rates would become effective on
April 18. Officials of Jersey City and
Htboken, advised of the company's
action, protested to the commission,
which replied that the new rates could
not be suspended, but that hearing
on the matter would be held in New
l.rk on April 30.
Mr.. Root said before the new fares
went into effect he appeared before
the chambers of commerce Of Jersey
City, Bayonne and Hoboken to 20 over
the facts with those interested and
that at that time these bodies voted to
favor the proposed increase if the COM
mission found the facts as he had
stated.
Corporation Attorney John Bentley
of Jersey City announced that prcpa-
rations to fight the boost were going
ahead in that city and that when the
matter was being thrashed out with
the Jersey City Commissioner it would
be placed before the Interstate Com
mcrce Commission.
eve are going to attack not only
the increased fares" he said, "but also
the failure of the company to provide
adequate service, remedy the over
crowding of trains and its failure TO
keep the cars in sanitary and we'll
ventilated condition"
Mayor Patrick r. Griffin of Hoboken
said: at is not possible to do any,
thing until the public hearing in New
York on April 20. We have instructed
Corporation Attorney John J. Fallon to
represent the city at that hearing and