Interim Fare of 7 Cents Made Effective on December 12, 1948

On October 22, 1948 this Company and its subsidiaries appealed to the Public Service Commission to
expedite the hearings in the pending rate proceedings and to permit the companies to present the actual
results from operation under the 6 cent interim fare in order to demonstrate that such fare was inadequate.

On December 9, 1948, the Public Service Commission authorized this Company and its subsidiaries to
put into effect a 7 cent interim fare. Subsequently the Commission took action providing that the period
during which the 7 cent interim fare may be charged should be extended to June 30, 1949.

Permanent Fare

The Commission is studying the data submitted by the Company at the various rate hearings held
since August, 1948. As soon as it completes that study and its own investigation of the Company's accounts
and records, further hearings will be held after which it is hoped that a permanent fare, sufficient to permit
the Company to earn a reasonable return, will be authorized.

Arbitration of Remaining Issues

The last contract between the Company and the Transport Workers Union expired January 31, 1948
and the new contract has not yet been concluded although a general wage increase of 24*' per hour from
May 1, 1948 has been granted. Among the unsettled demands of the Union in connection with the new con¬
tract are (a) a general wage increase of 24^' per hour for the period from February 1, 1948 to April 30,
1948, (b) a pension plan and (c) the term of the new contract.

On January 28, 1949, the Company notified the Director of the City's Division of Labor Relations that
it would arbitrate all unsettled issues between the Union and the Company concerning the labor contract
which is to be for a term commencing February 1, 1948, to a date to be fixed hy the arbitrator.

The parties were not able to agree upon an arbitrator and on March 1, 1949, Mayor O'Dwyer at the
request of the parties designated Edward Weinfeld, Esq., of this city, as arbitrator to determine the issues
in dispute. The hearings before the arbitrator commenced on March 15, 1949.
 

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