Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-03-06
FARE SHOWDOWN
DEMANDED BY CITY
p. r. T. Asked to Tell What It
Expects TO $4,000, 900
in Economies
LAW SHOWS IT HAS CLAIM

Assistant City Solicitor Rosenbaum
asked today IL the Rapid Transit Com
pany would request additional carfnre
as reward for claim of saving $780,
100000 in operating expenses last year.
That question brought about spir-
tied controversy at a continued valua-
ton hearing before Public Service Com
missioner Clement.
Over and above its valuation of $780,
600, 900 the company asked SIT, 900 900
for economies and eficiencies effected
through the present management. The
claim is based on public service COM
pany law which provides that utilitp
companies shall be entitled to particle
pate in economies and eficiencies.
Stripped Of all legal technicalities
Coleman ]. Joyce, counsel for p. r. r.,
said the claim was on the same basis as
an employe getting bonus for eff
cheney. Assistant City Solicitor Rosen-
baum held an entirely different view.
He cOntended that such claim is un-
warranted.
Wants Testimony Stricken Out
Mr.. Rosenbaum said $3.50, 600 900
would be added to the valuation, making
the total $500. 900, 900 il the company's
$16.OOO.O 900 claim Is allowed.
On that figure. he continued, the
commission Is asked to base permanent
rate Of fare. He moved that all testi-
mony regarding alleged saving of the
l.. Il. T. by reason Of economies and
efficiency be stricken out as irrelevant.
Commissioner Clement overruled the
motion, but granted an exception. Mr..
Rosenbaum demanded that Mr.. Joyce
in fare that p. r. II. would ask /:
whether it would be one half of a cent,
three. quarters of cent or two cents.
That is q question for argument. ="
said Mr.. Joyce. 'How much of our
savings We are to receive is a matter
for the commission to decide"
Wouldn't Allow AGENT
II think that Mr.. ROsenbaum's Ques
ton is practical One." interjected Mr..
Clement. ''as he hns to tell Mayor
Moore. who holds him to strict ac.-
cOuntability. what amount of increase
the company proposes to seek.
"How much would you allow the
p. Il. T:?' asked Mr.. Clement. turning
to Mr.. Rosenbaum.
"NOt cent replied Mr.. ROsen :
baum.
At this point Mr.. Joyce read tina,
portion of the public service act whicl
provides that public utilities may share
in economies and efficiencies to such ar
extent as deemed wise by the Publ,
Service Commission.
Mr.. ROsenbaum said the city virtu.
ally was left in the dark as to how mucl
Of the SlG,0OO,OOO claim the compan,
is going to request in the way Of in
;mmortant v"rn % r. know ," oxoctl . vH,at w.ho, th
claim would be,
reward Expected
Mr.. Joyce replied that the cOmpun!
expected to be rewarded "reasOnNbl,
for the economies and efficiencies, 9th
erwise there would be little incentive t,
company to bring about economy AM
efficiency" He pointed out that th
additional claim is entirely separate
from the valuation.
"If it were not discovered that tin
compnny were not effccting economies, ;
said Mr. Joyce, after 1t had bcel
urTnted n reward for them. such a,
oiIowonce could he withdrawn"
: Mr., Roscnbaum said it would b,
JifhcuIt to aDeratc under such ccono
mics MS n constant watch would hny,
to bc kept on the company. Ther,
would be n perpetual controversy, h,
said.
! Mr.. Joyce conteudcd that If the com
many saved the car rider one half cen
Tho comnnny Oupht IN bc rewarded witt
.. nt least one half the usving.
p Commissioner Clement spoke A
1