APPENDIX

Events Eeading up to the Increase in Fare and to the 24 Cents Pek Hook Wage Increase

111 the Annual Report of this Company for 1947, there was printed a statement of the wage demands ol
December 19, 1947, filed with the Management by the Union as the proposed basis of the new contract to take
effect February 1, 1948. Those demands would have constituted an additional annual payroll charge
estimated at $3,527,000, exclusive of social security taxes and of the cost of the establishment of a pension
plan as well as exclusive of certain of the demands, tlie (-ost of complying witli which il was not possible
to estimate.

Conferences between Company officials and representatives of the Union were held in January,
February and March, 1948, but without a settlement of the issues involved with respect to the Union
demands and the Company's counter demands.

Developments in Aprit., 1948
A Strike Threatened

On April 6th, a strike was called by tiie Transport Workers Union on tlie Manhallan bus lines of the
Fast Side Omnibus Corporation and those of the Comprehensive Omnibus Corporation. The controversy
related to the work schedules. There was a clear intimation that the strike might be extended to other bus
lines in Manhattan.

Mayor O'Dwyer cut short his vacation in California and on April 11th announced that before April 27th,
he would state whether the five cent transit fare on the lines operated by the City would be increased.

Meetings between representatives of the Union and officials of the Third Avenue Transit System and,
later, between Union representatives and representatives of this Company and of the Fifth Avenue Coa(-h
Company failed to result in agreements.

On April 15th the Union voted authority to its executive board to call a strike of employees of this
Company and of the other privately operated bus companies in Manhattan whose employees were nol
already striking.

On April 16th, Mayor O'Dwyer held conferences with Uniiui oilicials and with officials of tlie Companies.
The Mayor asked the Union to withhold further strike action until he should make an announcement as to
his position on an increased transit fare. To this the Union agreed. The existing strike against the East Side
and Comprehensive Omnibus Corporations was called off en April 17th, following an agreement to postpone
changes in work schedules until July 1, 1948.

The Mayor Announces Increased Fares on City Owned Lines

In a radio address on April 20th, the Mayor announced his approval of changes in rates of fare on
the city-owned and operated rapid transit and surface transportation lines, effective July 1, 1948. The new
rates were 10 cents on rapid transit lines, 7 cents on trolley and bus lines, 12 cents for a combined
surface and rapid transit ride and special low rates for school children.

Conditions Confronting This Company

The results of operation for the four months ended April 30, 1948 were: a decline of $222,268.70 in
passenger revenue, or a little more than 4%, as compared with the same four months in 1947; a deficit for
the first four months in 1948 of $469,651.96 after provision for amortization.

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