New Britain herald., 1926-02-22
NO INCREASE IN
 JITNEY BUS FARES
Continued From First Page)

enco of the need for an increase In rates the prices paid about the time they commenced operation for the chief items of operating expenses such as wages gasoline garage hire and tires, and the prices now pre- yaillng for the same items. It ap- ! ptarcd from this testimony that the costs of all these items have inoreas- cd in varying amounts. A reprcsen- tatiyo Of an automobile tire com l panY in New Britain from which the petitioners purchase all of the tires and tubes needed for their lusgcs, stated the increases in prices of motor bus tires and tubes during the year 1925. This testimony was o the effect that tires have increas- cd S5 per cent, since April, 1925, and tubes C. per cent from the same date, although these increases had 'n0t been rasacd on to the petition .cr% because the tire company had in 1925 q sufficient stock purchased at lower prices, However, the witness statcts the increased cost would be passed 10 the petitioners for pur- choses 10 he made in the year 1926,
 Bookkeeping Inaccurate
 "Thr principal testimony affecting all the applications came from a public accountant who examined the books and records of each of the petitioners and compiled therefrom statements showing revenues, opc.- 'atlnr expenses and fixed charge for three of the petitioners covering the calendar year 1925 and for the re- m1lnmE petitioners covering a part of l@9h. and varying from three months 10 nine months In the case of all petitioners, estimates of prob able revenues and expenses based upon the year 1925 were given 4or the year 1926. IL clearly appeared that the bookkeeping records of the petitioners during the accounting periods testified to were more or less incomplete, fragmontary and inaccurate, being kept by parties un. familiar with accounting practice During the latter part of the aC- counting period covered. one or tive of the applicants kept more de, tailed system of accounts, but ir most cases, and in all cases cover. ing the entire accounting period neither a cash book nor q ledger was kept, tho only record being g book containing a more or less in- complete account of operating roy. onuos copied from slips turned n by the drivers or operators of the ,itneys, and check book from which was obtained, from the stUH entries, the expenses and disburse- mcnts. The check book In each case was nscd in connection with thc applicants other and personal bust ness.
 "I'rom these inaccurate and in. complete records the accountant, with commendabln fairness and ac. counting ability. prepared and sub. mitted q statement of ncomc anG expenses fo reach appIjc,0t, togoth. cd with q statement Of h' Hd capita based upon original cost aa shoWr by tho contracts covering purchase of equipment and check payments
 Tn preparing these statements thC accountant was obliged 10 use his own judgment in determining what items appearing in the check books should bc included in the expense account, and what items should tC excluded. There was no record kept of salaries paid. and in incmdin2 hose items in tho expense account inc accountant was again obliged tt use his own judgment in fixing tho amount of salary paid in each case
 Net Income Called Fair
 "No matter how carefully prcpar nd T financial statement based upoJ such incomplete records cannot h' taken as conclusive evidence an must he given only limited weigh as supporting evidence in the cae" Even accepting as correct the f1n1n cial statements submitted. it appear that some of inc petitions, namotT porrr A~ostsini, Nastco Inc. Ern"% Nyquist and ROCco Cacchillo appa" onny earned during the y"ar l9@5 ; nct income sufficient 10 afford q f7i rrfurn on the cost of their equip mont. tho chief and almost entlr amount Of tho investment used il inc public service. While If appear rf that Fred Romani and Theodor Wagner did not earn q net inCom sufficient to afford 9 fair return, th length of the accounting period i so short as 10 he insufficient 10 con sidcr the evidence as reliable,
 'It was claimed hy the petition CTS that the rate per mile charge by them. taking each applicant route ns q whole, was less than tn average rate per mile charged by it noy operators throughout the state This may be correct, hut 1t is not ; proper criterion to compare urloal rates per mile for the whole distanc (whcro inc majority Of riders traye ovnr only q portion of th" route with long distance and intcrurhal ratrs per mile.
 "rrhn city Of New Britain oppose the petition IS did likewise sov"ra patrons of the lines affected, IT'S dents and public officials of Ne' BriHin
 Evidence Unsatisfactory
 "Tbo commission believes that th evidopcc from which it would dc tcrmjun whether the petitioners ar earning 2 fair rcturn is SC unsdtis factory and unrcliabie that it can sot with any degree of accuracy d' a.4n tho question. However, there rnT tn force commencing wit Jaagarv l, 1926. a uniform systcr Of a,rounts for ittncy operation ur dor thc jurisdiction of the commi' sion pursuant to chapter "A of th public acts of 1925. This system ( ~rr0rrrt.t 4 v.,.r1i-Cs iitrrv 0prrat0rS