New Britain herald., 1922-05-12
Matter Will be Taken up When Results of Tests Now Being Made Are Known, Commission Advises
Copy of Letter Transmitted to Connecticut Co. Presi- dent Is Sent to Mayor for Perusal.

The Public Utalities Commission made announcement this morning ol an indefinite postponement of actior on this city's request for reduction in trolley fares, explaining that two tests are now being made and unti the outcome is known the commis sion's policy will be to make nc changes.
 The P. U. c. heard New Britain. petition February 23 at the Centra Junior High school auditorium. The city was accompanied by copy of a letter transmitted today to President l.. P. Storrs of the Connecticut Co., in which the company was appraised of the same fact.
 The tests in question are those be- ing conducted at Norwalk and Bridgeport, the rates in effect being under temporary order of the com mission directing test rates. subject to change and modification as the com mission may deem advisable !
 Tn the letter received tthis morn ing by Mayor A. M Paonessa, it is explained that the P. [. c. will retain jurisdiction over New Britains pe- pition for such action in the future as the commission may deem advis- able.
 Text of Letter.
 The communication to President Storrs follows:
 Mr, l.. & Storrs President,
 The Connecticut Company,
 New Haven, Conn.
 Dear Sir:
 This letter Is written for the pur- pose of informing your company and the public of the policy of the com mission toward pending cases involv- ing trolley rates and affecting street railway fares generally.
 It is a fundamental principle of public service operation that a utility should supply adequate service at reasonable rates. A utility cannot be expected adequately to serve the pub lie without that cooperation and as- sistance on the part of the public which will allow the utility. under wise and economic management, to exist in financially sound and healthy condition. Rates should not be higher than the service Is worth to the public nor lower than will af- fcrd a revenue sufficient to cover all necessary costs and provide for fair return on the value of the property devoted to public use. A lack of CO., operation and patronage and general industrial and economic conditions may make 1t impossible to establish a rate which will be reasonable for the service rendered and at the same time produce fair return.
 Your company is chartered to sup ply street railway service, it's char tered territory comprising the major part of the State of Connecticut. di- vided into several operating divisions. With the exception of two localities, to wit, Norwalk and Bridgeport, the base fare at present is ten cents, with the option of buying three tokens for twenty-fi five cents-a saving of 16 2-3 per cent.
 Your company, like many other street railway companies of other states has operated at a loss for the past number Of years, due to the fact that rates in effect, under conditions then prevailing, were uneconomic, coupled with the further fact that the modes of transportation have been undergoing a somewhat radical change. The year 1920 resulted in an operating deficit for your company of S1,40o,O00, while the year 1921, which was the first period the ten cent fare was in effect throughout an entire year, showed an income, after of operating expenses but before payment of current taxes or any return on the value of the l of substantially S750,o0o. | It is estimated that if the present | rates of fare remain in effect. the in come for 1922 after payment of op erating costs but before payment of current taxes or any return on the value of the property, will be about S1,300,000.
 Owes State St .sOO.0O0
 Your company owes the state ap- $1,s0oooG for unpaid axes WHICH accrued GuT1nR the years of deficits Under recent legislation payment has been deferred, but the company Is required to pay each year owards liquidating this debt. at least 70 per cent of it's income after pay nent of operating expenses and be ore payment of any return on the 'ale of the property.
 The higher rates instituted by au- hority Of the commission have result d in increasing the company's rev nue, but not sufficiently to allow a air return on the value of the prop rty as determined by the commis- ion. It would be unfortunate so to eadjus. or reduce the rates of fare 1 this time as to put the company !; ack in Its previous condition, and at h;s WI iting conditions do not justify ny extended experiment with rates l f fare in new territory, especially as he state is now deriving benefit by eason Of the payment of back taxes. There are at present pending be-