Perth Amboy evening news., 1921-03-30
No Move Can be Made Until
July |, When Matter Will
Likely be Adjusted.
ADJOURN THE HEARING
McCarter on Stand Makes
Plea for Ten Cent Fare for
the Public Service Co.
lBy Evening News Correspondent

IBy Evening News Correspondent
TRENTON, March 30.-Action by
Governor Edwards in signing the
Franklin bill which permits further
extensions of rate suspensions by
the Public Utility Commission fol-
lowing the initial suspension. caused
the board yesterday afternoon mere
to suspend the Public Service ten
cent fare until July /. or three
months from April 1 when the pres
ent suspension would have expired.
Following the hearing of testimony
offered here yesterday on behalf OF
the company, the Utility Board ad-
iourned further hearings until this
day a week in Newark.
''The Public Service Railway com
pany would have been in the hands
OF q receiver long ago but for the
fact that its stock is held by Public
Service corporation which has been
paying it's deficit and keeping 1t
alive" declared President Thomas
N. McCarter. on the stand to justify
the ten-cent application. AT the
end of last year when the railway
company presented it's application
for Increased rates, the situation had
become most acute. The company s
funds and credit had been exhausted
and Public Service corporation, in
Justice to its other underlying COM
panies was no. longer in position to
hold the bag"
The ether underlying companies
referred to were the Public Service
Gas and Public Service Electric
company. Most of McCarter's tes-
timony related to the financial sit
uation OF the railway company dur
ing the last few years. To the con-
tention that the Philadelphia troll
ley company is able to charge low
er fares than those proposed by the
Public Service, the witness declared
that his company's lines cover 900
miles of New Jersey territory, while
the Philadelphia concern operates
over 600 miles in a restricted area.
Yet the Philadelphia lines have had
to abandon the five-cent fare and
charge higher rate.
The Public Service Railway COM
! pany carried 363,000,000 passengers
last year, said Mr.. McCarter. With
a ten-cent fare he estimated that
this total would have been decreased
by 5O,000.000 during the present
year. If jitney competition could be
all eliminated he said Public Ser
vice might operate on less than a
ten-cent fare, but not for seven
cent fare.
Mr.. McCarter estimated the cost
of operation for 1921, including
S1.200.000 for current amortization
and 100000 in part payment of the
depreciation shortage, will amount
to $30.000.000. He figured that a
ten cent fare will yield a revenue of
$31.000,000. explaining that forty
per cent increase in rates results in
a fifteen per cent decrease in revenue
because of the drop in the total
\Qumber of riders. Without jitney
pmpetition it would be possible to
xist with ten cen fare. said the
illness, for casual riders. including
free transfer. and an eight and a
THIRD cent fare for habitual riders
purchasing tickets.
Since 1917 wages paid by the COM
pany have increased from s6,250.000
to $13.500,000 said the head of the
concern; coal has jumped from $3.50
to 1925 a ton delivered at the pow
er station; taxes were raised S2,700,-
900 last year with q further increase
in prospect and steel rails have
practically doubled in price. In the
opinion of the witness these four
items of expense tell why a ten cent
fare is needed.
None of the score of municipal
representatives here yesterday cross
examined Mr.. McCarter. That will
be taken up later on.