The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-11-17
Street Railway Company
Files Petition With Public
Service Commission Ask
ing for Increased Rate in
City.
INSUFFICIENT EARNING
ALLEGED IN REQUEST
Deficit Predicted for This
Year = Industrial COndi-
tionS and Bus Competi-
ton Blamed for Falling
Off in Revenue.

Asserting that under present
fares it is impossible to earn
sufficient money to pay ex-
penses and dividends, the In
dianapolis Street Railway Com
pany today filed with the public
service commission a petition to
increase its charge for transfers
from one cent to two cents.
1t is estimated, according to
the petition, that the increase
'ould bring in 100000 annual
ly to the company.
In 1924 the street railway, after
paying all charges, including divi-
dends on preferred stock, but not
including dividends on common
stock. had a balance of S54,965.0S.
according to the petition.
For the nine months ending Sept.
80, 1925, a deficit of $7,235.46 ex-
listed, the railway stated. Estimated
deficit for this year will be $109,-
647.2S, it was said in the petition.
The nine months deficit does not
include preferred stock dividends,
while the estimated total for the
year does.
RIame Conditions
Industrial conditions are largely
responsible for the decrease in reve-
nue.. company officials say. Bus COM
petition also has played a part,
though not such an important one,
it was said. The Street Railway
Company has spent about 100000
for busses now used on feeder lines,
or to be placed in operation soon.
However, most Of the bus competi-
tion is on the north side of the city,
where car lines still are doing a good
business.
The last change in street car
fares was in May. 1924. when the
fare was boosted from to 7 cents,
and the transfer price lowered from
2 cents to 1 cent.
The transfer fare had been at 2
cents for about a year, but it was
figured at that time that the in
creased revenue resulting from the
7-cent rate would be sufficient to
care for the company's needs.
Yield 100000
All revenues resulting from the
fare increase have gone into fund
for replacement. 1t was estimated
that the increase would be about
100000 annually, but in reality it
has been only about 100000 a year,
officials said.
The patronage on the Railway
lines never has reached the figure
it attained before the fare was raised
to Z cents, officials state.
Similarly it is estimated thar trans.
fer patronage would drop if the in
creased fare We're granted. Trans
fers on the one cent rate for this
year will bring about $175,000, but
it is estimated that only 100000
additional would be received if the
two cent rate is allowed.
Fares here are slightly below the
average for American cities, street
car officials assert. The average rate
is seven and eight tenths cents, with
a transfer fare of slightly over two
cents, they state.
Since the present street railway
company was organized in 1919, no
dividends have been paid on common
stock, while the preceding company
had not paid dividends on common
stock since 1919. Seven quarterly
dividends on preferred stock also
have been passed, the total deficit
for preferred stock dividends being
about 100000.
Money which would be derived
from the transfer boost would 60
into the company's Golfers, to help
pay added expenses and preferred
stock dividends. 1t was said.
Operate at Loss
1.-THE street car company is now
operating at a loss, despite the in
crease of 2 cents in fares which
went into effect May 81. 1924" said
Joseph l.. MCGOWAN. treasurer.
From May 21, 1924, to the end
Of that year an increase Of $122,-
910S1 was made in revenues, all of
which was put into a special fund
for improvement Of the service and
reconstruction of tracks,"
"The first eight months Of 1925
there was a decrease of $S6.751.57.
and the company now finds it neces-
sary to ask the restoration Of the
2-cent transfer rate"
MCGOWAN said the slump was
due to bus competition, unemploy-
ment and increased use of private
automobiles.