Show IE I 1 If E IE RULES MAY MA Y BAR V VACATIONS ACA IN IN FORESTS 16 G COST OF LABOR EQUIPMENT IS HS BASIS ta jR COMPANY'S PETITION Ii ED net income of the Utah Light and Traction comm com com- m nd r the revised tariff schedule which it proposes to put putS S should jB-should should the public utilities commission approve will according to figur figures s submitted d today Dicke general manager of the company at th the hearing in before the commission slon on th the petition petition of ot the company to increase Its fares ares aresto to 7 cents to ta eliminate the adult tickets to increase the I school ticket to 4 cents and to charge 1 cent for transfers The net income required to yield a return of 8 per cent on the prop rop- property erty Investment is SO accordIng accordIng according accord- accord Ing to Mr Dickes Dicke's figures and hence If it the increase is granted 0 by the commission the company win will face facea a deficit of ot on the 8 per cent return on Its investment For the purpose of presenting Its petition for increased fares to the commission the company compan acc accepted the commissions commission's valuation of as a fair ratemaking basis J. J F. F McLane attorney for the traction company stated The commission has granted emergency partial relief tw twice ce which has bas proved inadequate and now the company asks for relief that will vill willbe be equal to the necessity of the case I and a permanent relief he pointed ou out t. t Mr McLane asked that a rate be granted that will yield adequate returns re returns returns re- re turns for operating and maintenance expenses sufficient return for setting aside a depreciation reserve and to entitle a minimum t return t rn on 1 the in In- In vestment The decision of f the corn com commission commission com com- mission in this case will be an example ex e- ample of ot wHat utilities In Utah may expect under regulation n The demands of or the men for fot in increased increased Sn- Sn creased w wages reach a figure ure between and or the equivalent of or an increased cost of 1 I cent per car rider in Salt Lake it St was pointed put Mr Dicke based his figures for the estimates under the revised schedule of or tariffs on the results of or operation for 1919 Revenue from adult passengers passengers passengers gers under his estimates would be and school fares and transfer charges with miscellaneous revenues would bring the total gross earnings to Operating expenses w would uld be 1 43 leavIng leavIng leaving leav leav- ing a net from operation of 1024 that must take care of depreciation tion amortization of deferred maIntenance maintenance maintenance main main- an ansI and i give a fair return on th the investment Mr Dicke presented an an elaborate table snowing showing the actual r rate te of return on the investment as valued by the utilities commission for a period period of eleven years was 32 per cent or as he contended considerably less than the interest on the company's funded debt He asserted that the financial Integrity of or the company had be been n preserved preserved pre pre- served only by refusing dividends to stockholders and at the expense of the physical property for conditions had made It Imperative to allow the property property prop prop- erty to run down A study of receipts and expenses on the basis of or per revenue passenger was offered by Mr Dicke DickO In this Tie be besought sought to show that passengers have been carried during duIng the past five years at a 2 loss of from to 1 73 cents each or that the eX exact Ct cost per revenue passenger for labor Jabor power material supplies and taxes as well as the cost per passenger for depreciation n and Interest in interest interest in- in terest the prop property Investment was fas greater by those thole figures than the revenue revenue revenue reve reve- nue received per passenger |