Evening star., 1935-08-27
Gives the tsTrue Facts'' as
To the Transit Company

In The Star recently Mr.. Bernard L.
Henning seemed greatly disturbed due
to the alleged prosperity Of what he
fondly terms the local car and bus mo-
nopoly." Let's look at the record!
During the war both companies earned
excess profits. During 1923 car patron
age began to fall of due to the automo-
bile. The slump continued until Fall,
1880, when the cut-rate cab appeared
Nearly all must be aware Of the racket
that ensued. JobleSs men in order to
obtain work in the taxi business were
forced to sign contracts whereby they
were obliged to pay a rental of "a per
day; also must buy gas, oil, tires, re-
pairs, ETC., from the philanthropists who
had them by the throat. II able to-
scrape together enough to meet their
obligations they were given" worm
out cab, originally costing about $780,
for a sum ranging between 81 400 and
81 500.
Thus was inaugurated an era of cut
throat competition that forced the older
taxi companies to liquidate, while the
car lines and bus company faced bank
ruptcy. II this had occurred hundreds
would have been thrown out of work;
most of whom had helpless dependents
Did the taxi people worry? Not SO as
to be noticeable.
In the face of the foregoing facts Mr..
Henning, choosing to overlook the effect
of the advent of the pass system,
ascribes renewed traction prosperity to
taxi competition.
The Capital Traction Co. had main
tanned its per cent stock dividend until
1890 only by using reserves earned dur
ing the war On April l. 1880, this was
reduced to 6 per cent and SO on down
until the last dividend, paid on July /,
1892, was per cent for the second quar-
ter of that year. No more until De-
cember Is, 1884, when on $4,000 in
vestment received $3.50. No more
since Yet Mr.. Henning declares that
the monopoly" is paying dividends The
w. r. g. E. Co. continued its per cent
dividend, but only through its prof1ts
from the P. E. P. Co.
Several years ago, and during lean
times, the two companies spent about
100000 on track changes to improve
the Capital Plaza. The project was not
of benefit to the railways but for civic
improvement, but rather than delay they
furnished the money from their slender
resources. trusting that Congress would
reimburse them later. but I believe that
they are still trusting and waiting.
Both companies raised wages TO con-
form to NJ R. A. codes during bad times.
Any informed person must be aware
that the car company offlcials consid-
cred the recent wage increases excessive,
but, having agreed to abide by the deci-
sion of a Board of Arbitration, they
accepted the decision.
However, Mr. Henning finds fault with
the wage increase, blaming the mo-
nopoly for that also. He also blameS it
for not spending money when it didn't
have it. Now that it has money to
improve tracks, rolling stock. etc, he
says that they are spending money like
a drunken sailor" So reasonable!
He likewise pays his respects to the
p. U. c. for raising taxi rates. Now any
one aware of the events in the taxi
business during Shrine week will hardly
fail to appreciate the sweet reasonable
ness of this contention. But the prize
crack of all occurred in former effu-
sion of this same person, to wit: That
the 100000 wage increase should not
be given to the traction employees, but
instead should be given to the taxi
drivers as a reward for their efforts in
helping" bring prosperity back to the
cars and buSSeS. And he sounds really
serious. too.
I did not undertake this overlengthy
explanation with any hope of convincing
Mr.. Henning. but only in the hope that
a few fair-minded people might be in
terested in the true facts of the case.
JOSEPH A. RICHARDSON.