Tag Archives: surplus

$18,000 Surplus in Phoenix

Financial and Corporate

December 11, 1926 — Electric Railway Journal

Surplus of approximately $18,000 is the result of operation of the Phoenix Street Railway, Phoenix, Ariz., under municipal operations for one year ended Nov. 1., This fact was disclosed in a report submitted to the City Commission recently by City Manager Henry Rieger. In his report he recommends the rehabilitation of the line.

The report shows total receipts during the year at $160,896 and total disbursements, including expenses and other costs, $143,056. If the lines had been rehabilited and up-to-date rolling stock secured it would have been possible to cut maintenance charges to $26,666. Added to the cash on hand, it would have made $44,506 cash on hand, and with a 7-cent fare the surplus for the year would have reached $75,000 under proper operating conditions, according to General Manager Rieger.  He recommends complete rehabilitation “as a decidedly good paying investment for the city and for the citizens of the city at large.” He stresses the need for new, up-to-date, light one-man cars, which would net a savings of at least 25 percent on power bills and possibly give a six-minute headway service.

Another factor in lowering the surplus for the past year has been the change in status of the employees. When all employees were placed on an eight-hour basis, it was done without any loss in salary to the employees. Where men were working eight, ten and twelve hours a day, the eight-hour rate was computed so as to give them an amount of salary equal to what they had been drawing under the longer day plan. The placing fo the men on the eight-hour basis necessitated the employing of additional help, which raised the payroll about 20 per cent over previous years.

The city of Phoenix acquired the properties of the street railway by purchase on June 4, 1925, for $20,000 and assumed direction operation and control on Nov. 1, 1925. Various circumstances leading up to the city’s taking over the lines were reviewed in the Electric Railway Journal from time to time.