Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-09-05
PEOPLE WILL DECIDE
Tom Johnson Asks Special
Election on Scent Fares.
HIS ROAD IN TROUBLE
Taxpayers Start Suits and Fraud Is
Alleged.
NOW LEASE Is ATTACKED
If People Stick by Company, Rate Of
Fare Can Be Increased Under
Charter Provision.
VOW LEASE Is ATTACKED
ppcial Dispatch to The Star.

Special Dispatch to The Star.
CLEVELAND, September ;. - Mayor
Tom l.. Johnson today unexpectedly asked
the city council to order a special election
upon the thrce-cent street car fare ques-
ton. The three-cent fare company IA
thered by Mayor Johnson. which took over
tin" property of the Cleveland electric rail-
road 10 operate it on three-cent rare
basis, is facing probable financial crisis
Since the road has been in operation under
Mayor Johnson'S plan it has scarcely
earned operating expenses. Under It's
lease the road must pay per cent on all
its outstanding stock.
BY July 1 next it must also refund
bonds amounting to s2,O260O0 taken by
the Cleveland Electric when it bought the
old cable roads In addition there is a
floating debt of 81, 2SS, 900. Certain banks
willingly carried this debt for the Cleve-
land Electric, as that road always had
heavy cash deposits in these institutions.
Mayor JohnSons company has been un-
able to have cash deposits. and the banks
are unwilling to longer carry the debt Tor
his road.
Taxpayers Start Suits.
To add to the trouble, suits have been
started in court by taxpayers attacking
the validity of the holding companys
lease. The courts have also been asked
to order referendum vote on the ques'
ton under the referendum and initiative
law passed last winter.
Mayor Johnson has been advised by at
torneys that his lease will hold, and now
he is DESTROYS of having the question sub
mitted to the people in order to get 1t out
of the way and to clfnch the lease. Ii he
wins he can, under the lease, Increase the
fare. If he loses the property may revert
to the Cleveland Electric Company to be
operated at q rate OF fare of six tickets
for % cents. The council will meet to-
night to order the election for October -.
Suit was filed in common pleas court to-
day by James K. FaraSy, taxpayer, ask
ing that the security grant of the Cleve-
land Railway Company be declared null
and void and the lease of the property to
the Municipal Traction Company be set
aside. Fraud and financial interest by
city officials are named as a basis for the
suit The petition declares that the Mu-
nicipal Traction Company is a fraud upon
the city and its taxpayers, without legal
financial responsibility, and wholly
and solely controlled and dominated by
Tom l.. Johnson, mayor of Cleveland.
Is Franchise Fraud?
It is further declared that the franchise
grant is a fraud because it provided a
higher rate of fare than had been offered
by the Cleveland Electric Company of seven
tickets for IS cents, with universal trans
fers. 1t is averred that the public funds
of the city were used to promote the in
terestS of the three-cent-fare lines. Five
hundred thousand dollars is named as the
sum so used.
1t is charged that the West Side pump
ing station, valued at S1,5O0.OO0. was
leased to the Forest City company at an
inadequate rental. and that land adjoin-
ing was purchased at cost of S6S.O0O out
of the water works funds and is now be-
ing used by the railway company.
OF the organization of the municipal
traction company it is charged that the
original directors of the company were
selected by the mayor, and that they
were at the time of their election mere
tools and puppets of the mayor, agreeing
with him that all that should be done
in the operation Of the company should
be in furtherance of his scheme and plan
to control the street railway system.
Didn't Own a Share.
1t is alleged that these original incor-
porators and directors of the company
had no personal interest in said company
and though pretending to subscribe $4,000
of the capital stock of the company, not
one of them was the real owner Of a
single share of the stock.
The suit is brought against the city OF
Cleveland, the Cleveland Railway Com
pany. the Municipal Traction Company
Johnson and all the members Of the