Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1923-07-14
State Grants Permission
To Stop Service On
Trolley Line
DECISION GIVEN TODAY

The concern itself made the appIi-
cation to relinquish its corporate ex-
istenee, and hearing was held on
the subject at the Borough Hail.
Keyport, on June II, last
"The experience of this company
during the last few years" said the
board in its decision, indicates that
there is not a sufficient demand for
the service offered by this company
to warrent the expense of operation-
Several increases in the rate OF fare
which have been tried have not
brought to the company sufficsent
increase in the total revenues to meet
the necessary operating expenses.
The value of the concerns invest
ment was given as about $1,S82.5Sz.
Against this is outstanding 5000 coo
In preferred stock and 5000 COM
mon stock, all of which was said TO
be owned or controlled by the AM
erican Electric Power Company. the
successor to the American Railways
Company.
AT the hearing" said the board
further, Testimony was submitted
showing the operating revenues and
expenses of the company for q
number of years back and showing
to what extent the company had
failded in collecting the amount
necessary to meet operatig expenses.
A number of experiments were
made with regard to the rate of fare
charged in order to increase the rid
ing by the public, but notwithstand-
Ing all efforts, the company has not
been able to earn operating ex-
penses, much less additional moneys
required to pay interest on bonds
The operating expenses in 1885,
said the board, amounted to z245s-
| 116, while in 1872 they had increased
to $321,55 The revenues in 1913
amounted to s283, 600, while in 1918
| they rose TO $317 900
said, largely to the increased g =
! of fare granted. Because of the
! tack of patronage the revenues had
fallen so that in 1922 they amounts
/ ed to S293,539, so that in the latter
year the concern failed to collect
| the actual operating expenses by
about $2S,000 and in the four
months of 1923, according to the
utility board, expenses exceeded re-
venues by s29,72s.
Testimony also showed, said tie
board, that the number of passeng-
ers carried in the various zones had*
been reduced. The most proftable'
zone was from Perth Amboy to
South Amboy, it was said, but much
! of this traffic has been taken over
by jitneys, while the privately owned
automobile has also resulted in very
considerable reduction in the
number of passenger scarried in the
summer time.
The board also declared that the
condition of the tracks and bridges
of the concern is such that it VIII
require more money than the COM
pany has, to rehabilitate certain por-
tions of the line in order to insure
reasonably safe operation.
The utility commission granted
fapproval TO the company to abandon
its service subject to the following
conditions: That tracks and poles
| will not be removed from the pubic
highways, the Improvement Of which
has been projected by state or local
auth critics, except at times desig-
mated by such authorities; that when
any other tracks or poles are re-
moved from the road, the surfaces
of the highways shall be restored to
as good condition for travel as they
were prior to such removal: that
the company will 1quidate It's in
debtedness with due regard to ths
rights of the holders of other credi-
tors, and that the company win sur
renders its franchise and dissolve as
a corporation.
Ten days notice are required to
be given by the company. the board
ruled. to each municipality through
which the concern operates before
such operation may cease.