Perth Amboy evening news., 1923-08-29
JERSEY CITY MAY ASK
NAMING Of RECEIVER
IContinued from page II
ave been able to find temporary
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NEWAP-1, N. j., Aug. 29-Failure
of the Public Utility Commission to
permit the collection of compeLsa-
tory rates, permission by the COM
mission CT unlawful bus competition,
and inability of the company to meet
the demand of it's striking trolley
men for higher wages, are alleged by
Public Service Railway Company to
be reasons for its Noncompliance
J with the order OF the commission to
resume service, as set forth In the
return OF the company to the alter
native writ of mandamus of the SUI
preme court. The return of the
company was made public today. as
filed with the suprsn.e court at
Trenton late yesterday, in answer to
the writ issued by the court August
II, ordering the company, within ten
DAYS, to show cause why 1t should
not be compelled to esum service.
Public Service issued the following
summary Of the company's return
today:
The failure of the Board of Public
Utility Commissioners to permit it to
charge compensatory rates, the ac-
ton of the board in permitting un-
lawful bus competition, and the COM
pany's inability to meet the demand
of its men for higher wages amount
ling in the aggregate to $4,000,0 900 a
year, are set up by Public Service
Railway Company as among the rea-
sons why it has failed to comply with
the boards order of August IA, to
continue service, in a return to the
alternative writ of mandamus issued
by Chief Justice Gummere of the
supreme court directing the COM
pany to comply with the boards or
der or to show cause for its failure
to do so.
The return which Is signed by
frank Bergen, as attorney, and was
filed with the court late this after
noon, also declares that the order of
the board Is illegal and void because
it is not supported but is against the
evidence taken by the board because
lie does not state the date when 1t
should become effective and because,
il compliance were possible, it would
take the property of the company
for public use without just compen-
sation in violation of the state and
federal constitutions.
The effect of the boards failure
to permit compensatory rates of
fare is said by the return to have
been:
"(a) to prevent defendant from
earning income sufficient to
maintain and operate properly;
OBJ to diminish it's operating eff
cheney;
(c) to take property and service
of defendant of the value of
$4,000. 900 for public use with
out just, or any, compensation;
(d) TO destroy the credit Of de-
PENDANT:
(e) to cause large deficits to ac-
cumulate; and
(f) to prevent defendant from
protecting its property and busl-
ness against unjust and unlaw-
full competition"
Besides" the return continues,
"~relator has approved more than
200 licenses for auto buses or jit-
neys to operate in unlawful COM
petition with defendant, and has
for a long time and is now permit
ting unlicensed auto buses or jit-
neys to operate ~unlawfully in COM
petition with defendant"
Relating to the demands of en-
ployes for higher wages, the re-
turn says:
1.-THE increase so demanded would
have amounted to $4000,000 a year,
1t was impossible for defendant to
comply with the demand made by its
Iemployes for the reasons hereinbe-
fore stated. Defendant did every
thing in its power to persuade its
employes to remain at work, but
they refused to do so, and on the
first of the present month left their
employment in a body and have
not returned since, although defend
liant at all times has been ready and
willing to confer with them and
they have been SO notified"
The return reviewed the history of
the organization of Public Service
Railway Company and states thai
since 1903, the sum of $3S, 800, 000
has been expended in extending and
improving property and equipment,
BY 1915, the property was regard
ed by experts as being in one hun
dred per cent operating condition
with unusually favorable opportuni-
ties for growth and expansion. In
1916, the company had gross earn
ings of $~17,574,867, and a balance
for dividends of 81, 491,066. In 1917
however, cost of maintenance and
Operation began to increase rapidly
and by July l, 1921, Increase in
operating expenses, mostly wages
amounted to 119.1 per cent, and In
taxes to 63.4 per cent, while paving
cost more than douoled.
The return reviews the various
attempts of the company to secure
the approval of the Board of Pub
lie Utility Commissioners to increas-
ed rates of fares. The application
of March. 1918, for a rate of seven
cents, with charge for transfers, was
answered by the board July, 10
1918, with an order permitting a
one cent charge for transfer with Mt
increase in the first fare.
Such increase, the return states
would yield to the defendant $780,
900 per annum although the in
creased annual expenses of defen-
dant at that time amounted to more
than 100000 over the expenses
m 1916. Summarizing the fare pro-
ceedings, the return says:
For three years thereafter from
July 10, 1918, to July IA, 1921 de-
PENDANT continued to present facts
and figures to the relator showins
the continuing and rapid increase IN
cost of maintaining and operating
its property and of taxation, ano
importuned relator for increases o1
rates necessary to pay such in,
creased expenses, but never sue.
ceeded in obtaining an increase ade.
quate for that purpose"
A statement of earnings and ex'
penses for the years 1916 to 1922, Ii
given, which shows deficits de $301,.
TIC; $589,999. $743,975 and $751;.
PSI for the years 1918, 1919. 1926