Omaha daily bee., 1908-10-11
FOR Scent FARES
Renewal of Cleveland's Battle for
Municipal Street Railways.
TOM JOHNSON AGAIN ATTACKED
Knockers OF Low Fare Policy Force
Question to Referendum Vote,
and u Warm Campaign
IL On.

Another chapter in the history of Tom
Johnson's struggle for municipal operation
of the street railways OF Cleveland conies
to a close or the 22d inst, when the
citizens will decide by referendum vote
the question whether the franchise will
remain with the present holding company
or revert to the old company. Mayor John
son is In the thick of a vigorous camuaien
'or v,ndication of his Scent fare policy
and is confident of routing the opponents
If mun'cipalization from their last ditch.
For seven years Mayor johnson fought
% give the people of Cleveland Scent fare.
after one of the bitterest struggles in the
history of city politics he forced the Cleve-
and Electric Railway mpa which
,rerated all the traction lines, to accept
is terms. Trree-cent fare was established,
and the flattering acclaim Of the country
"as accorded to the mayor.
Put the country little knew what 1t
had cost Tom Johnson to bring about the
establishment Of Scent fare. It saw only
his struggle with the public service cor
rorations and his own political enemies.
Mayor Johnson's fight for Scent fare
has cost him not only a large part OF his
personal fortune and several years OF bis
life, but. as some of his old friends de-
clare, his health. his wife's health, II not
his social position. at least his social COM
fort and the happiness of his family. No
man could sacrifice more even for the
sake of his political ambition.
Dub Forces CricIs.
The merits OF the question are forced
to trial before the bar Of public opinion
by a peculiar set OF circumstances. mainly
financial. which the traction officials are
now facing, and for which the refe -endum
law itself and various suits brought to
test the settlement are largely responsible
1t was thought that the carefully drawn
up lease cf the property of the Municipal
had provided for all contingencies that
might arise, but two or three issues have
developed within the last thirty days that
have forced the administrator to a real
ization that the referendum vote could not
be longer delayed.
The floating debt Of the Cleveland rail-
way was the most immediate considera-
ton and for the more distant future the
problem of refunding $2.O26. 900 OF Cleveland
city cable bonds on July 1, next year. must
be met in advance. A realization that the
sale Of either stock or bonds in sufficiently
large volume TO meet these contingencies
would be doubtful while the referendum,
with its possibility OF an adverse vote,
was hanging over the situation. was the
direct cause OF the decision to call for a
vote at once.
Floating Debt Makes Trouble.
Possible trouble for the Cleveland railwa,
over it's floating debt of 81, 2Ss. 900 is threat
ening In the attitude OF certain of the banks
that are carrying this debt. They willingl,
carried It for the old company because tn,
latter was able to carry with each Of tn,
banks a fair sized deposit account. TIT
Municipal was assured that the banker
would be willing to carry the debt alonI
for a couple of years provided they wer,
favored in the old way with a deposit from
the company.
In its effort, however, to make improve
ments and operate at low fare. the Mum
cipal has been drawing down it's balance
with the banks. The latter nave given init
nations to the Cleveland railway that Their
is no longer any reason why they SHOULD
renew these notes and there Is probability
that some of them will be called wheI
due. Other notes are on demand and ma!
be called at any time.
In case the Cleveland railway should b
compelled TO meet any part Of this debt
II has no money with which to do so. It
only recourse would be to reduce the deb
from rental money received. This Woul
necessitate the passing of dividends. a stu
alton that would make further sales o
stock impossible. forestall the work Of in
stalling pay-enter cars. and defeat all ef
forts to improve the property or the service
Besides the threat which the referendum
itself contains, the Smith suits are anothe