The herald., 1922-09-28
Traction System
Represented As
Near Insolvency

The South New Orleans Light and
Traction Company, with a bonded in n
iebtedness of more than $1,000 ,OOO,is n
IN the verge of bankruptcy, President S
2. w. Burgis testified before the d
council at a hearing t
called by the council to compel the t
company to show by its books that I
il is unable to repair the Newton
street viaduct, closed three weeks !
ago on the recommendation from City
Engineer John Klorer that it was I'M
safe and a menace to life.
After Mr.. Burgis cited the COM
pany's balance sheets to show its
actual financial condition, the coun-
Gil decided that the company should
produce statements showing the in
come and disbursements of the power .
company it also operates. This evil |
dence will be offered next Tuesday, |
it was announced.
Operates At Loss
The South New Orleans Light and
Traction Company has been operat-
ing at loss since it was acquired
by the present owners in 1917, Pres-i
dent Burgis testified. When asked
by City Attorney Kittredge why the
owners continue to operate the com
panies when they showed a deficit,
! Mr.. Burgis said that the board Of
directors decided to hold on until
actual ruin was inevitable or some
Improvement was made.
Mr.. Burgis did not appear before
the council to ask for an increase
in street car fare Mayor McShane
said nothing would be done with the
affairs Of the company until the
council had received additional fig
ures from Mr.. Burgis.
The company originally was cited
to show why it could not stand the
cost of repair and maintenance Of
the Newton Street viaduct. Accord
e ing to City Engineer Klorer's esti
: mates the repairs needed will cos
0 about $4,000, but an additional SIS,
J. 900 will be needed to keep it in ;
e safe condition for the next ten years
IS Mr.. Burgis said that his company
e under present conditions, is absc
e lutely unable to meet this deman
II of the council.
,, Responsibility Admitted
- In the franchise for the operatio
in of the company, granted by the coul
Gil in 1904, there is a clause stip'
lating that the company build an
maintain the structure. Mr.. Burg
agreed with the commissioners whe
s. they said that it was the duty of ii
company to repair the viaduct, b'
w added that despite that fact 1t cou
10 not be done at present.
of The company is operating from te
ne to fifteen street cars on line CO
III Meeting Algiers with McDonoghvil
n and Gretna. The franchise granite
ne by the commission council of Ne
Orleans provides that the compar
o. can charge a scent fare for eat
of passenger riding from the Unite
States immigration Station in Algie
h to the Jefferson parish line. tt
N. franchise granted by the police jul
40 of jefferson parish allows the col
or pany to charge another scent IA
10 from the parish line to the coul
al. house at Gretna. Both franchis
lie give the company the right to char,
on a 10-cent fare from the Immigratit
station to the courthouse at Gretn
but this right never has been exc
cised.
Neither President Burgis nor
b Howard McCaleb, attorney for t
company, would say whether tn
~ were contemplating a formal requt
for an increase in street car rate
Service on the street car lines
'0n terminated at the viaduct at prese
'n and hundreds of citizens are prote
'eu ing against the situation. Fran
Williams of the Louisiana pub
'"s service commission, who attend
~ Tuesdays hearing as a spectator,
LII nounced that he had cited the Sou
w. ern Pacific railroad to send rel
, ., sentatives to hearing Monday. ]
Southern Pacific's tracks cross
Jul meath the viaduct and Commissio
Williams said he would determ
why that company would not pay
least a portion of the expense
!. volved in the repairing of the stl