Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-14
THREt-CENT CAR FARE
Plans for Buying Cleveland
Traction Companies.
TALK WITH TOM JOHNSON
Franchises of the Street Railways
Soon to Expire.
CITIZENS TO TAKE STOCK
Guarantee 8 Per Cent Dividends on
Investment and Cheaper Charges
to Patrons Of Roads.

NEW YORK, January 14.-Tom L. john
son. mayor Of Cleveland, came into town
late on Saturday night on the same train
with Horace E. Andrews president of the
cleveland Electric Railway Company, which
Tom has been fighting for a long time in
order to obtain a three-cent fare on all the
trolley lines In the city. The city won sew
erai steps IN the fight recently, and on Sat-
uroay truce was declared for thirty days,
III winch the opposing interests are ex-
pected TO agree on a price at which the
properties and franchises Of electric lines
not yet acquired by the public company
can be acquired. The lines are said to be
owned by certain railroad interests centering
here. Both Mayor johnson and Mr. An
crews refused yesterday to discuss this
aspect OF the case, saying merely that they
are here on important business.
The only thing I'll say about the street
car NATTER said Mayor Tom, 'is that we
have won great victory We expect to be
able to agree on price at which the pub
lie company the corporation of citizens,
which has been organized to take over the
roads, and has taken over already several
or those whose franchises have expired.
will be able to take over the rest of the
lines I mean those whose franchises have
still from year to several years to rum
In that way I expect soon to see the citi-
zens OF Cleveland own and operate all their
street car lines on a three-cent basis, and
that with a return Of per cent on their
investment. -rs.-r.'.
Demand Lower Fare
About two years ago, when the demand
Tor three-cent fare within the city limits
had grown up and several Of the franchises
under which the Cleveland Electric Com
pany ran its street car lines were about
to expire, the city offered to buy the stock
at about 80 and operate the roads on a
three-cent basis. The stock was then SELL
ing on the market in the seventies. The
company refused.
Then the citizens organized the Public
Company, which took subscriptions from
all citizens. guaranteed them 6 per cent
interest on their money, instead of the 4
per cent, perhaps. they had been getting
from their savings banks, and besides
guaranteed to run the roads on a 3-cent
fare. They bought up such franchises Of
the old company as expired increa sing
their capital as the expiration of successive
franchises demanded. The old company,
Of course. fought and maintained that ali
Its several franchises ran to the longest
them In the courts.
Expiration o. Tran ~ ieAs 90. 'f'zsl
NOW about 70 per cent OF the old COM
pany's franchises expire within a year and
IS percent within two years. With the
public feeling in favor Of the 3-cent fare
as 1t is you can understand how the agree
ment of Saturday was arrived at.
THAT agreement Is that thirty days truce
be declared In which both sides try to ar
rive at basis on which the stock of the
company can be transferred to the Public
Company. The citizens are determined to
grant no more franchises to the old COM
pany on the only terms, the Scent fare,
&c, on which 1t appears to be willing to
take them. 1t Is proposed 20 :olve the diff
Guilty by buying all the property of the old
company on terms something like these
The figure at which the physical property
of the old company can be raplaced, plus
fair value for the unexpred franchises,
plus 20 per cent as profit and to cover con-
tingencies The stock is selling at about
thirty days to arrange for the taking over
of the stock at a figure based upon these
facts. We are getting along pretty well
with the old company's people now and
think price will be :rrived at satisfactory
to both Sides
1t Is said in Cleveland that the Public
Company, through Johnson, will offer be-
tween As and 80 for the stock. Mr.. Andrews
saiu that he had not come on here about
the street car situation. but to attend
meeting Of the New York Central Electric
Railway Company, which controls the
suburban troleys built and building be-
tween Rochester, Syracuse and Utica.
which will be held today.