The Birmingham age-herald., 1921-06-19
PEVEAR POINTS OUT NECESSITY FOR CAR REVENUE INCREASE
President of Bankrupt Com pany Submits Startling Figures Regarding Fi-
 nanCial Status

The problem confronting the re- ceiver of the property of the Bir- mingham Railway, Light and Power company is one of economies and not ethics, declared J. s. Pevear, presi- dent of the bankrupt corporation, in an address to members of the Birmingham chapter of the Ameri- can Association of Engineers.
 The meeting of the local chapter of engineers, of which R. S. Major is president, was held in the Civic As large number of the leading engi- neers and industrial men of the city The talk by Mir. Pevear was given the closest attention, and when he concluded and announced a willing ness to answer questions, many queries were propounded, showing the interest of those present
 MT, Pevear pointed out that all discussion regarding stockholders in the present controversy was beside the issue, as the property was op- erated by the court the stockholders had received no interest for some years and even under the receiver ship cashde ficit of s1,9000 900 had been accumulated.
 How Money Was spent
 With the exception of interest on l bonds, which bore rate of only 41s and per cent. there had been paid out only S60.000 on old debts, this sum being preferred claims ordered paid by the court The only other expenditure except actual running expenses had been for the purchase of new cars, repairs and rehabilita- tion of the system.
 The first increase in car fare l granted one year after the war, was only enough to pay the increase in wages to conductors, motormen and other employees, which are still be- low those paid men for the same class of work in other lines, declared MT Pevear. The company was forced to operate at a 5-cent fare for several years under war prices, being refused any relief, despite the constantly growing deficit which re- suited in receivership in 1919.
 Both light and gas rates have been reduced below pre-war cost and ilnce the car fare has increased only 10 per cent and only half the rev
 
 charges of the company have in creased less than 20 per cent, which s far less than the increase in other commodities during the war. And when it Is recalled that the com pany was forced to operate for sev- ral years under the war prices with no Increase, some explanation of the present situation may be gained, said MT. Pevear.
 Service Better Than Ever
 The increase from 6 to cents was ensumed by the losses resulting rom the inroads of the jitneys and the losses due to the business de- pression. leaving the company no better off than 1t was at the time 1t went into the hands of the receiver. Despite these facts. MT. Pevear itated that the car service was bet 1T today than ever before.
 Should the income of the receiver not be enough to pay interest on ionds and foreclosure result. in- tead of paying AZ and 5 per cent ew bonds could not be sold for less han per cent, with a resulting
 ded tax on the property of an- lther S425.o00 annually. AS the pres-
 it bond rate Is very low. the bond olders would be glad to get their soney and would not hesitate to foreclosure If interest vas not paid
 In reply to the charge that operat- ing expenses should be cut down, MT, ,ovear answered that since the em-
 loves now are receiving only from i 10 to 50 eents per hour they