The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-01
CAR FARES ARE TOO HIGH
BIG PROFITS OF A WASHINGTON
STREET-RAILWAY COMPANY.
Possibility that Congress VIII Be
of Eight Tickets for 20 Cents.
,cial to the INDIANAPOLIS journal.

Special to the indianapolis journal.
WASHINGTON, July d-The action of
the Legislature of Indiana in enacting
law compelling the street-railway COM
panies of Indianapolis to carry passengers
at cents each is likely to have an impOr-
tant bearing on the future of the District
of Columbia. If that experiment proves
successful it Is almost certain that a move
ment will be initiated within the next year
in Congress to compel the street railroads
here to adopt a similar rate of fare. Since
the successful Inauguration of the under
ground electric system on the Metropolitan
railway in this city, which is a corporation
owning about twelve miles of double track.
the increase in the receipts has been enor-
nous. When horses were used on this same
line the average daily amount taken in was
$500. To-day this has been swelled to $500.
In August, 1896, this company found it nee
essary to borrow money at 4 per cent. in
order to pay the regular quarterly dividend
of 212 per cent. In October of that year
new president was elected. The road at
that time had trouble with the labor
CARNATIONS and had some snarls with Con-
gress. In nine months the labor troubles
We're settled to the satisfaction of every
one concerned, Congress, gave the road
enabled to pay $1S5 900 of interest on its
bonds, besides paying the fixed charges and
the District tax of per cent. on it's gross
receipts. In addition to this a regular
quarterly dividend, aggregatng 10 per cent.
per annum has been paid, 100000 was ex-
pended in making good damages done by
the storm of Sept. 20, 1896, and after making
good all damage to equipment and keeping
up the roadbed, there was at the time the
report of the late president of the road was
written $151, 800 in the treasury.
Some years ago this road, in common
with the others in the city of Washington
fought strenuousiy against the law which
compelled them to sell six tickets for
quarter. An examination of the books of
the company shows to-day that rs per cent
of all the passengers use tickets, while
only % per cent. pay cash, and while these
ticket sales foot up an aggregate loss of
$4,000 q year, compared with what would
be received if the same number of cash
passengers We're carried, the metropolitan
Railroad, at least, would hesitate a long
time before returning to the cash system
even if the privilege were granted by Con-
greSs. There is no question but cheap
fares cause people TO ride more freely than
they otherwise would, and if this road
would sell eight tickets for quarter in
stead of six, it is believed by those who
have investigated the subject that its
business would increase correspondence, so
that it would have as good a balance sheet
at the end OF the year as it has to-day. 1t
cost 81, 500 day to pay all the charges, OPP
Grating expenses, maintenance of way, in
terest on bonds and dividends included so
that this company is earning from $400 to
$500 day more than it needs TO pay an ex-
cellent return on the investment, we'll as
all other expenses of operation. With this
showing in its annual report, it is not to be
wondered at that some members of Con-
gress Think the time is coming when the
street-car fares in the District of Column
bia can be reduced Is per cent. to the pas
senger without any wrong to the men who
have invested their money in this impor-
tant enterprise.