Show dt r r MAY AY ASK EIGHT FARE tr etcar Comp Company ny Says It Should hOUld Raise Ins Instead ead of 1 J rc Lower Rates Rate J The Utah Light and Traction comy company com com- pany y- y may go before the public utilities commission and ask for an cent 8 fare Is-is Is Is the statement made made by Gen- Gen Manager H H. F F. Dicke in his an an- x JJ v ver r to the application of C Charles arles And And An An- d d and others who have appealed to the public utilities commission fo tot reductIon in fares to 5 cents and anti sales of ot f books of fifty tickets for 2 He Intimates that If the application on of Anderson Anderson Anderson An- An An An- derson Is pressed that he will ask the commission for authority to Increase the fare to 8 cents Another defense I in his answer filed flIed with the commission commis commis- I s1 sion Wn ri Is that the present rates are de declared de- de dared to deprive the compan company of property property prop prop- erty ty without due process of law and are therefore in violation of ot the n. n DICKE'S DICKES REPLY In n n his answer cr Manager tanager Dicke de declares declares de- de clares elates that the present rates are based fixed by b bythe bythe on ia a valuation of the property the the utilities commission but were built up tf on the theory theor theory of the commission there thero would be bo an increase of business and a decrease in operating expenses It Is asserted that prices fe finished products used by the trac frac traction tion company are as high as ever eyer for all substantial purposes and that present prices to th the company t an Increase of more than 70 per pert t above prewar prices While wages have bave been cut 10 to 15 per cent it Is Iss s set st t up that they are still per cent prewar figure and as a matt matter mat mat- t ter r of ot fact it is declared that more money was paid out in wages In 1921 than In 1920 This is attributed t to the mandatory mandat ry orders for repairs and maintenance especially between the tracks issued by municipal t It Is claimed therefore that the company is still confronted by a very serious rious financial condition as it was before it went before tho commission t ask for the increases allowed Denial benial Is entered In the answer thattie that tie the present rates are detrimental to the community but it is alleged that unless the present rate Is continued tJi present service cannot be rendered that in fact the present rate of fare Is entirely inadequate to support thed the tho d defendants defendant's operation to say nothing o of permitting the defendant a reasonable rea red return upon its investment vALuATION RAISED N SIn Jin n the compan company's s affirmative def de- de jT f nse additional Investments are said aId tp have raised the valuation of the company's property from the 64 fixed by the utilities commIssion commission commis commIs- sion don January 15 15 1920 to at the at-the the first of the present year Oper- Oper ing costs in 1919 are said to have havelin q lin n 43 in 1920 39 and in 1921 1747 11 At the same time the number of revenue passengers passengers passengers gers Increased from 33 In 1919 to in 1920 and then dropped to in 1921 while decreases decrease ar tire again shown for the present year of in January in F bruy bru- bru y and 79 in in the first half of March r. r 1 Unless a change comes It Is predicted the company may not exp ex ex- p P. pct ct more than tha-n revenue pase pas- pas e s. angers n ers for 1922 The company points out that 5 per perc percent c cent Is the lowest interest rate it pays cTt its It's bonds and sa says s 's that to pay that rate on its claimed valuation in addition addI- addI tf tion n to operating costs and l Wi on n would have required in 1921 a fare of of cents per passenger in 1920 4 cents per revenue passenger and Ig mit 1919 5 36 cents per passenger To Toh h have ve made 8 per cent on the valuations claimed would have required a fare of cents per revenue passenger in I 1 1921 21 6 69 cents In rn 1920 and 6 11 in 1919 I y t l the average fare per revenue passenger pas pas- anger Is declared to have been 6 58 c cents nt'S in 1921 cents In 1920 and 17 7 cents In 1919 That is is the company com pany Dany shows a net return after operation opera opera- tion costs and depreciation of almost exactly 6 5 per cent in 1919 and 1920 something less than 5 6 per cent i in 1921 on the valuation of its property us used d and useful in public service as fixed by the commission plus add addi- investments made since the valuation was madeNO made NO INTEREST FUND It Is alleged that In 1921 the core coir pany was unable to set up any depre depre- elation fund or to pay bond hond interest from current revenue and it follows continues Manager Dicke that instead of fares being decreased as proposed by y plaintiffs plaintiff the defendant ant is entitled d to an Increase In such fares In such amounts as to yield a fair return upon its investment and requires an Increase in increase in- in crease In order to enable It to meet its fixed charges and bond interest and depreciation to a cash fare of 8 3 cents and a ticket rate of 7 n 73 cents The defendant does not ask at this stage of the proceedings for such In Increase Increase increase In- In crease of fares but reserves the right to file petition for such purpose by byway way yay of counterclaim or cross complaint complaint com corn plaint if this case proceeds to toa toa a hearing upon its merits The defendant defendant defendant defend defend- ant realizes the existence of depressed business conditions in this community an and is suffering from this condition at least as much as any other business institution If its patrons patron's are to take t the e position position post post- tion that it is not entitled to at least maintain Its present rate of fare for a sufficient time after return to normal condition and nd normal volume of travel to make up the deficits ts incurred during during dur dur- durIng ing such depressed conditions and durIng during during dur dur- ing the war when other business was prosperous and defendant was not earning a fair return and if such Understanding understanding understanding un un- cannot be distinctly established the defendant must ask forthwith forthwith forthwith forth forth- with for an n immediate Increase In its rate of fare It is obviously impossible for defendant to continue to sustain existing deficits if it Is going to be denied means to recoup said deficits when the conditions become more fa favorable fa fa- |