Perth Amboy evening news., 1923-08-31

HOCldLloh1 Bdso Out louaS a otdlC~
ment in reference to the trolley
strike situation, in answer to Mr.
Makelee's- claim before the mayors
committee yesterday, to the effect
that nobody has explained how the
Public Service can get the money to
u the operation of their cars.
Mr.. Record says hat II the company
has no money to operate its cars and
cannot obtain any it is a case of
bankruptcy which justifies a receiv-
ership. He further say that they
can get from the Federal Court an
order for an increased fare before
the first week's-wages of the men
would fall due. Mr.. Records state
mept follows:
"At the hearing before the mayors
committee In the city hall in New
ark yesterday, Mr.. Wakelee, vice
president of the Street Railway
Company, was asked IL the position
of the company was that the COM
pany would refuse to SER
vice until their demands were COM
piled with, and he answered that
they would so refuse, and justified
this position on the ground that the
company had no money with which
20 meet the increased wages de-
manded by the men, and that no.
body had shown any way by which
this money could be obtained.
There are two complete answers
70 this positions: First. IL the COM
pany has not funds to function un-
II is ~insoIvent and should be prompt
ly placed in the hands OF a receiver:
and second, 1t is not true that there
Is no way for the company to get
the money to pay the men. Even Il
It does not nave 1t in hand, the COM
pany can obtain from the federal
court ex parte or upon two days no.
tice an order for an increased fare
sufficient to cover the increased
wages This order can be obtained
before the first weeks wages fall
due. Here is the exact situation le-
gally. II the company u bust
ness with an increased pay roll of
a 81, 10000 1t can at once apply
to the Public Utility Commission for
an increased fare. That commission
by reason of the pending litigation
would be compelled to refuse tho APP
plication. The company could then
20 before the federal court. When
the federal court first acted and
granted the eight cent fare, the com
pany's plea to the court was az fol-
lows: 1.-THE company cannot meet its
obligations on the fare fixed by the
state board, unless they can have
an increased fare at once, the COM
pany must go into the hands of a re-
ceiver, and be dismembered into its
constituent properties, with the re-
suit that the company would be des-
troyed, the service to the public
~ ~A-4fIxr Ioo
troyed. and millions of dollars OF
value of the existing securities would
be lost to innocent investors"
tIf the company Is right In its
position and cannot get any relief
from the court until the end of a
long litigation, a judgment in its ia
vor would be of no avail because
the company would long before that
time be ruined. Therefore the COM
pany ought to have pending the lit
igation, a rate of fare which will
enable It to function under the ex-
listing conditions. A majority of
the court state this position was
sound provided the company would
give a bond to refund the excess fare
IL their claims were not substanr
tiated by the final judgment of the
court, and the court fixed eight
cents with a seven and a half cent
token N a sare adequate for the ex-
isting conditions. The company &C
cepted this judgment and filed a
bond 10 refund the excess fare II
the anal Judgment was against them.
s"The principle therefore that this
company is entitled to a rate of fare
suflcient to enable 1t to function
under existing conditions until the
ANAL Judgment of the court was es-
tablished by the federal judges.
Having been thus established the
same Judges must apply the same
principle to the new conditions OF
stultify themselves by a refusal:
The company obtained the ruling OF
the court upon more afidavits OF
necessity and were aole TO sunmit
no proof of Tee value OF their prop
erty. They are now In a mucn
position because under the
courts order Judge Haight after an
exhaustive hearing, at which botn
sides put in voluminous testimony,
nut In a report stating that the
company's property Is worth $llO,-
600, 900, which would more than JUS
tify n possible increase in rare
necessary to meet the new wage
scale. e now the Public Service
Cornoration resumes operations up
on an increased SCALE of wages ana
thereupon applies to the federal
court for an increased fare, the
court would be compelled in accord
ance with its announced principle,
fo grant an increased fare sufnclent
10 cover the increased wages OF the
men. No lawyer can question that
the court would SO act n act
promptly. n
al sN,h ar<Dder at any time within
Sha last thirty days upon two or
three days notice, and can now op-
tain II whenever they choose to APP
ply to the court.
"The amount agreed to be accept
al by the men probably calls for an
Increase in wages of not exceeding
0f.6OO, 900. The company transports
$4,000 900 passengers. A one-halI
:. eent increase in fare to be carried
nut through the token system woulo
meet this wage increase, and leave
ehe company exactly where 1t was
prior to the strike Of Its men.
1.-THE only possible answer to THIS
noaition is that the increased rare OF
one half a cent would so diminish
the traffic as still to leave the COM
pany with a deficit. The answer TO
This Is hat in all of the trolley liti-
cations before the state commission
and before Judge Haight the COM
pany has produced expert witnesses,
its OWE superintendent and operat-
ing officials from other cities, VINO
have sworn that 1t is easily possible
to calculate the loss in trafnc that
any increased rate of fare would
produce. The company cannot now
O