Evening star., 1896-02-22

the people to endure a barbarously unjust
tax? But street car fare agitation Was be-
gun by me SIX years ago
Tire street railway companies claim
there is no money in the long haul now l
sad, and as the haul is becoming longer
all the time. is not the public getting its
return for the of the streets IN i'm
proved service at the five-cent fare?"
A long haul is relic of the past, said
Mayor Pineree. when railroad is built
an additional passenger costs no mere to
haul fifty miles than one mile. The avel-
age haul in cities is always short, but dis
tance cuts 10 figure"
That the people Of Detroit are with Mr..
Pih2ree is shown by his experience at the
polls. He received majority of 3,agn OH
his first election, when he ran on the plat
form of street railway reform. though the
nominal democratic majority was Lea. He
was Reelected after his first street rail-
way campaign by majority of 2,59o. then
ey '.GUo. and the last time he ran by 1o.6on.
The last time he received more than two
thirds of all the votes cast. But he claims
he has had TO fight bribery and corruption
at every step of his progress toward re-
form. He says plainly that ''booa!e" was
used to obtain the first extension Of the
of Detroit.
The Fight I'm Detroit.
When that extension was TO be tested
in the courts, the street railway owners
engaged all but one of the best lawyers in
Detroit, and the mayor had to go outside
the city for counsel to fight the city's bat
tie. He was defeated in the courts but he
succeeded in interesting the capita lists
who built the new road, agreeing to charge
the three-cent fare, and that has forced
the old road to come down TO the reform
rate of fare.
The mayors belief that there is paying
business for both roads at the low rate CT
fare is not shared by Edward f. Higgins,
the street railway expert of New York,
editor of the Street Railway Journal with
whom l discussed the street railway sit
uaticn recently. Mr.. Higgins said he he
lieved reduction of fare by the Old COM
pany would result eventually in a further
reduction by the rev company, because
the old company having the most desirable
streets, would command the business at
equal rates of faIe. The old company
would lose at the three-cent fare he
thought and the new company woGld lose
at anything less or even at the three-cent
rate if it had to take a small proportion of
the business. In this way, he thought. the
two companies would cut each others
throats, and one, or both, might be forced
into bankruptcy.
If it is true, as Mayor Pingree charges
that the plant of the Citizens railway of
Detroit, which is hurdened with a bonded
Indebtedness of $l2.oo0,000, could be dupli-
Gated today for S3,0Do.O00, and probably
cost very little more than that sum, there
will be very little sympathy wasted On the
owners of its securities If this particular
road should fail through competition with
the new company. Still, it has been sta 6d
very recently by authority on the ap-
plication of electric power that the amount
for which a road run by electricity could
be duplicated today is no criterion OF its
cost, for the pioneer electric roads put in
very costly machinery, which had to he
discarded later for machinery which could
be operated at less expense, and the ''du-
plicate" value of a read represented iii
some cases 10 more than half its cost.
The Railroad Side.
Mr. Higgins has studied the conditions in
Detroit. THE new system" he said recent
ly, occupies streets in the very heart OF
the city. radiating in somewhat zigzag
routes from the business center to points
not more than three miles in any direc-
tion 1t is, therefore. in the best position
to capture the short distance riding and it
is not burdened with the long and thinly
settled suburban lines of the older com
pany. Again, its contract with the city
expressly relieves the company from any
expense for maintenance of pavements or
fer their first cost, except so far as pave
ments are disturbed by their original con-
struction or by repairs of track.
1.-THE city even bears the expense OF laying
a foundation of six inches of concrete he
low the company's ties. in streets which
were unpaved at the time when the ties
were laid. The company Is relieved OF all
taxation except the usual taxation on real
estate and personal property. Under these
conditions, while the old company charges
HEe-cent ldTe, t1e heW ccaupdA! may
earn a reasonable return on its actual net
investment, especially as it has had the ad-
vantage of purchasing the most modern
plant and equipment of every kind at the
lowest prices which have ruled for years.
But with both companies operating at
the low rate of fare, both must operate at
a less. the new company because it has lost
traffic and the old because. burdened as it
is. it cannot carry its passengers at three
cent fare with profit Undoubtedly thare
will be some increase in riders due to the
reduction in fares, but in all probability
the increase will fall far short Of
amount per car mile sufficient to leave
fair margin over operating expenses. The
inevitable outcome is financial disaster to
both systems. The result of this cut-throat
competition must be some form Of armed
truce which will mean a deterioration of
Service in an attempt to bring some sort of
financial solvency out of disaster.
"The Detroit example, unfortunately, is