Archive Record
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Metadata
Object Name |
Application, Financial |
Title |
TER Return to Questionnaire for Docket 16092 [pg 29] |
Date |
ca 1948, April 26 |
Scope & Content |
Texas Electric Railway Return to Questionnaire (unsigned) to the Interstate Commerce Commision to abandon rail operations in total. This 32-page document was eventually signed, notarized and submitted to the Interstate Commerce Commission. [page 29 transcribed] 18. A summary statement of the reasons for the application. Answer: As heretofore stated, the line was originally constructed by Applicant's predecessors for the transportation of passengers and local express. Practically all of the line located outside of cities, towns and villages was constructed on private right-of-way. Inside the cities, towns and villages the line was generally constructed on public streets, under franchises, traversing the principal residential and business areas, the tracks now generally being in pavement. When the line was first constructed, and for some years thereafter, it was considered the best means of transportation of passengers and local express in the territory served, furnishing as it did frequent, convenient and dependable service. During the early twenties, with the beginning of the construction of hard surfaced roads by various governmental organizations, motor competition on the highways began to be encountered, consisting of the privately owned automobile, and motor buses and motor trucks, both privately owned as well as for hire. This competition took from Applicant's predecessors traffic that it was prepared to handle and could well have handled, and Applicant is now confronted with the same kind of competition, though to a much greater degree. Texas Electric Railway's earnings reached the peak in 1920, same consisting of passenger and local express revenues from the operations of its Interurban lines between Dallas and Denison, Dallas and Waco, and Dallas and Corsicana, and passenger revenues from its city line operations in Denison, Sherman, McKinney, Waxahachie, Waco and Corsicana. Texas Electric Railway, due to the decline in its revenues, discontinued the payment of dividends on its common stock after the quarter ending June 30, 1925, on its second preferred stock after the quarter ending December 31, 1925, and on its first preferred stock after the quarter ending March 31, 1926, and the last payment of interest on its bonds and debentures and the bonds of Texas Traction Company was for the half year ending June 30, 1930. As its revenues declined, Texas Electric Railway made every possible effort to reduce its operating costs without affecting the safety of its operations. It discontinued its losing street car operations in McKinney, Waxahachie and Corsicana, and substituted buses for street cars in Denison and Sherman. In 1932 it began one man operation of its Interurban passenger cars, loading and unloading from the front end. This method of operation affected a considerable saving in operating costs, and was found entirely satisfactory, and is in effect today. With its passenger revenues declining, Texas Electric Railway sought other ways to secure revenue, and entered the field of transporting freight, both intrastate and interstate, in 1928. The revenues received by it from the transportation of freight were not sufficient to offset its losses in passenger revenues, and on January 1, 1931, it defaulted in the payment of interest on its bonds and debentures, bringing on the receivership on January 10, 1931, followed by the bankruptcy proceedings under Section 77-B of the Federal Bankruptcy Act and the operations thereunder beginning October 1, 1935, the consequent reorganization, and transfer of the properties to Texas Electric Railway Company on January 1, 1936. In the interest of more economical operation, and to eliminate expenditures for the reconstruction of the street car tracks in Waco and the purchase of new and additional street cars, Applicant, in1936, substituted buses for all street car operations in Waco, except one line which was operated over Applicant's Interurban tracks in Waco. Applicant found that the losses in connection with the operation of its Corsicana Interurban line were mounting, and therefore made application to this Commission for certificate of public convenience and necessity permitting the abandonment of that line, Finance Docket No. 12,933, which application was granted, and the line abandoned with the close of business February 4, 1941. Due to increases in rates of pay of employes [sic] and costs of materials and supplies used in its operations, the operating expenses of the line sought to be abandoned were more than twice as much for the year 1947 as for the year 1941. Since Applicant began its operations on January 1, 1936, except during the period of World War II when it received an unexpected, but temporary, increase in passenger business, which was to some extent offset by a decline in freight and express revenues, its revenues have been sufficient only to permit the operation of its properties through all possible efforts toward economy without return to the stockholders, and have been insufficient to cover the depreciation of the properties and to establish suitable reserves to care for the replacement thereof. --29-- |
Search Terms |
1931 Receivership 1935 Bankruptcy Abandonment of Service Bus Service Corsicana City Lines Denison City Lines Finance Docket 12933 Finance Docket 16092 Financial Freight Business Interstate Commerce Commission McKinney City Lines Passenger Business Sherman City Lines Waco City Lines Waxahachie City Lines World War II WWII |
Collection |
Johnnie J. Myers Collection |
Catalog Number |
CP.2006.CL.1-109-29 |