Evening star., 1896-02-22


ment in those cities. Mr.. Pingree is the
apostle of the three-cent fare. He ;nvas-
tigated the subject of street railway earn
irgs several years ago, and determined
tnat IN every large city it was possible to
carry passengers for about three cents
eacn at a profit. AS the street RAILWAYS
nave the use of the public streets, vir-
tually without cost in most cities, Mr. Pin
gree thought they ought to be satisfied
Win 1alr return on the money invest ed
IN their lines, and that where there has
been any cheapening Of the cost of opera
ton the public ought to get at least the
greater share of the benefit
He fought it out on that line with the
street railway monopoly Of Detroit, and
when that concern refused to accent his
ideas, he interested capitalists, who started
an opposition road. This road has been
carrying passengers at the rate of 3 Is
cents each for several months at profit.
Mr.. Plngree's observations in the large
cllieS OF the east lead him to believe that
the conditions are favorable there for the
introduction of the Detroit scheme, though
IN many places the Detroit result will have
to be reached, if at all, through legisla tio:,
afectlng the lines already in opera tion
rather than by the construction of oppo-
sltion roads, because the available thor
oughfares are pretty well occupied bv
street railways.
This is particularly true of Philadelphia
Washington is not so overrun, though
there are railway lines enough to accom-
modate the public en- all the principal busi-
ness streets. New York is so well euuipped
that 1t is hardly possible to lay any more
railway tracks in the streets, unless 5th
avenue Is to be sacrificed: and there is
popular feeling which will prevent this for
a great many years, probably.
But Mr. Pingree believes the existing
III es In all these cities could reduce the
rate of fare charged, and make a good
profit on the money invested. In Phladel-
phia, for example, he found that one of the
foundation companies in the Union Trac-
ton Company was paying 60 per cent per
annum, guaranteed, to its original stock
holders.
Under Ono Management.
had conversation with Mr.. Pinsree re-
Gently, in which I asked him II lie had
made any investigation of the Rhode Is
land street railway monopoly while he was
in Providence. All the street railways in
that state are consolidated under one man
agement.
''In Providence" said Mr.. P.ngree The
state has empowered The monopoly to exact
an extension OF franchise whenever any
Improvement or extension of tracks %
made, and under this cumulative process
the monopoly can go On for ever. 1t
charges 5-cent fares and 3 and cents ex-
ira for transfers. But the forces are gath
Business Mems Association Of which Wm.
F. knight is president. which will throttle
the monopoly eventually"
l asked Mayor Pngree to tell me Wha-
he had learned in Philadelphia, Washing
ton and New York on his recent trip
In Philadelphia he said, they seem to
be content to jog along at scent fare,
when, as compared with a city of the size
of Detroit, they ought to enjoy a 2-cent
fare, with universal transfers. Even at
2-cent fare the street car companies would
make money. Washington presents the
absurdity of line of herdics running at
Scent fare alongside of a traction line
charging cents. New York is a city
where all the cost of operation is paid with
1-2 cents fare, and yet the people of New
York pay ; cents.
MANY of these lines in the older cities"
I suggested, were constructed at great
expense, compared with the cost of con-
struction today. Do you think it possible
fer them to earn a fair dividend at the
Scent rate on this excessive investment?
And do you think they should be made to
lose the difference between the original
cost and the amount which the same con-
struction would cost today? In other
earn only what is equivalent to a fair rate
Of interest on the present appraised value
of the road. not including the value of its
franchiSeS?"
"Cons.ruction of street railway lines was
never as high as that of steam railroads"
said Mr.. Pingree. Grading never cost a
cent save in exceptional cases. The city
maintains drainage In great cities, it
can be set down, construction charges were
never excessive, and or the costlest con-
struction Scent fare will pay literally in
an average city. Add complete renewal to
original cost and a 2-cent fare in New York
will pay big"
Public in the Dark.
"Street railways in some cases have not
been profitable Immediately. Do you th;nk
bo Sd to hot
would repay .hem for any lossrs iE the
past in addition to i fair return on the
value of the road?"
81 do not know of one instance in which
street railways in such eases have not re-
cnuped at least four-fold," said Mr.. Pin
gree. ''lses;des, who knows whether they
have made gains or losses? What city has
ever had control enough of street rail
way to get at the secrets + their books?
Who can tell when a street railway goes
into the hands of receiver whether theft
or legitimate losses did the deed?'
1t is claimed by a great many authorities
on street railway matters that very large
percentage Of companies operating street
railways are now in the hands of receivers
or have gone through a reorganization be-
cause of their failure to pay interest on
their stock investment at the prevailing
ffve-cent rate of fare. I asked Mr.. Pingree
how he reconciled this state of affairs with
the three-cent proposition.
by street car authorities that il took four
cents Of every five cents to pay cost of
construction and operation" said he This
was exploded and the three-cent fare is in
successful operation now"
DO you think there is paying business
at the three-cent fare for both the COM
panies now operating in Detroit?'
"Decidedly yes. When l was trying to get
at what the companies really made some
three years ago, and asked to see their
books, it was refused. tried the courts
and the courts decided the city had no
right to examine the books. No street ear
company will ever show its books
"Do you believe in municipal ownership
Of street railways?'
IT have not arrived at that yet" said MFR
Pingree. But I believe in the municipal
ownership of tracks and the complete con-
troll of companies leasing tracks by the city
government"
Effect on Investments.
asked the mayor If he did not think this
bad time to agitate question which is
going to affect the value of certain widely
held securities when there is already so
much financial uncertainty in the country
There is no bad time to agitate against
bad thing" he replied, emphatically
street car franchises have done more to
corrupt cities than any other thing. He is
but a sorry person who does not know that
bribery has entered into nearly every fran
oh In he nj fod toyo