Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-03-30

IN small amounts or at high interest
rates.
1T Is not" Mr.. Todd replied. "If
there is a doubt whether he Will get his
money back a banker win not lend at
all or be viii charge a very high interest
rate. 1t is not possible to issue bonds IN
less we have a surplus, and we have no
surplus We have been living from hand
to mouth on a starvation basis which is
most detrimental to the city and to the
public.
1--WE are almost to the limits to which
we can go. Indianapolis may be without
street railway service If an accident
should put out one or two turbines We
have nothing to fall back on. Substa-
tons must be put in and We have no way
Of obtaining money for this purpose.
He said the subStatiOns would cost
about $4,000.
SURPLUS REQUIRED
FOR SUBSTATIONS.
Commissioner Fred Bates johnson
asked how the money could be obtained.
Mr.. Todd replied that it could be OBJ
tanned only II the company had a sur
plus so it could sell bonds or so it could
make arrangements to pay for the sub
stations on payments, the stations to re-
main the property OF the builders until
paid for.
Mr.. Johnson then asked how much sur
plus would be needed and Mr.. Todd
replied the company would need at least
twice the bond interest each year. Mr..
johnson asked if 100000 would be suf-
hcient The reply was that few bankers
would give credit to a company as big as
the street railway company that had an
nual earnings Of only 100000 He said
such a sum might be wiped out in a week
by a food or a strike. He said the com
pany should have a surplus Of from $3.50
600 to 100000. He said much depends
on the view Of the city, the commission
and the public. He said the amounts
should be at least 100000.
Mr. johnson asked what the intention
Of the company would be in regard TO
substations If It should receive the rates
asked in the petition. He replied that if
the returns justified 1t an attempt would
be made to get the work started
A cloud in the sky on a Sunday after
noon means a loss Of thousands OF dol
lars to the indianapolis Street Railway
Company, Joseph A MCGOWAN, secretary
and treasurer Of the company. told the
public service commission yesterday. Mr..
MCGOWAN made this statement in explain
ing variations in the receipts of the COM
pany.
As the hearing opened today Robert
I. Todd was on the stand presenting
figures TO show the necessity for in
creased fares. Mr.. Todd opened his tes-
timOny with a discussion of the price
of coal. He said he could see no indi-
cation that the price would be less.
He testified that the production Of
coal In a mine operated by the Terre
Haute, Indianapolis & Eastern Traction
Company costs S196 a ton, Of which S1.61
IL chargeable to labor. He said he had
been told that coal could be produced
more cheapy in this mine than in any
shaft in this part Of the country.
sPECULATEs ON
TICKETS AND CASH.
The next question taken up was that
of how many passengers would buy tick
cts and how many would pay cash fare
under the proposed rates of cents cash
or twenty tickets for 81. Figures from
other cities showed that so TO 30 per cent
of the passengers buy tickets. There was
one exception, the city of Evansville,
which has the same fare as proposed for
indianapolis. The testimony showed that
about so per cent Of the passengers pay
cash and so per cent buy tickets. Mr..
Eodd expressed the opinion that this is
Secause the people have not been edu-
Gated to the use Of tickets He said he
believed that not more than IS per cent
of the passengers in Indianapolis would
pay cash.
Mr.. Todd testified that when a 1-cent
charge was made for transfers the num-
Der issued decreased 20 per cent.
Mr.. Todd testified that the decrea sc
in business done by the company since
the first Of the year is due to the con
Of fuTm 40
said he could see no hope for more
business this year. In reply to a ques-
ton of what has brought about the
company's large deficit he testified It has
been due to a decline in business, the
increased price Of coal, and particularly,
high taxes.
The company has been able to borrow
only small amounts OF money at 8 per
cent. interest, Mr.. Todd told the com
mission In reply to a question as to the
eOmpany's credit
During the session at which he con
eluded his testimony Mr.. McGowan told
the commission that the accounts pay
able of the company had increased from
$152, 265.S5, July l, 1919, to S+00,O21.4 6,
Feb. IS, 1921. This IS an increase
of about S2480o0. Mr.. MCGOWAN said
insufficient revenues are responsible for
the increase.
The witness testified that on or be-
fore May the company would have fixed
charges OF $780, 1918 to meet and that
he estimated the company would have a
little over $4,000 in the bank, leaving
q deficit at that time of 1925 $50
corrected statement OF car earnings
based on experience up to date was in
troduced showing an estimated decrease
for the year as compared with last year
OF $52, 1902. The question Of the cor
RICHNESS Of the calculations were then
discussed In detail Samuel Ashby, coun-
sci for the city of Indianapolis, pointed
cut that one extremely low day was in
eladed In the days for which a calcula-
ton was made. Mr.. MCGOWAN replied to
this that there were many low days and
$nat-a cloud IN the, SKY On. summer