The morning journal-courier., 1908-10-23
Cleveland Referendum Vote Goes Against Municipal Company by Small
 Majority,
STRIKERS BACK OF IT
IroIleymen, Unable 10 Obtain Dc- mands, Called for Note--ErrOr In Count stops Ccle-
 bration.

Cleveland, Ohio, Oct 22.-The franchise under which the Municipal Traction company Is operating the lo- cal street railway lines upon three cent fare basis was defeated by a maority of S79 in the referendum vote here to-day The total vote cast was upwards of 76,OO0, The returns are exclusive of one precinct which still is missing but cannot affect the result Early in the evening the unofficial rec turns indicated a majority in favor of the franchise, Near midnight an error was found which changed the result.
 The defeat of the franchise may mean that the railway property win revert to its original owners and that the old rate of fare strife which lasted seven years will be renewed The only alternative will be for the city council at once to grant a new fran chise which will save the property to the Municipal Traction company.
 It is stated by unpreiudiced ob- servers that the franchise was donated not so much upon the issue involved as upon the general dissatisfaction of the public toward the service given by the operating company,
 The vote came as the climax to the general street railway contest which has been waged here for years, With three cent fare and ultimate municipal ownership as the goal of the city ad- ministration, This was constantly op- posed by the old Cleveland electric railway company which had been charging a five cent rate During the progress of the strife new company, the Forest City Railway Go. fostered by the city, began the operation of cars over d few competing lines on three cent fare basis,
 The settlement came under an agree ment to consolidate the two companies and lease the property to an operating company, The Municipal Traction company. which agreed 10 make the general fare within the city of Cleve- land three cents Accordingly a new company, the Cleveland Railway com pany. was organized to take over tho consolidated properties Under the agreement a % year franchise was granted to the Cleveland Railway com pany Then the property and fran. 1 chise were leased to the Municipa Traction company for 90 years, upor the condition that tho operating com panv protect the property of the Clove. land Railway company a $3o,0ooo0 corporation IL has been during only the past three months that the orerat 1 ing company has had a surplus
 To place the property upon pay
 ing basis at the lower rate of far' the service was greatly curtailed anc this caused great antagonsm to tht | new regime During the first montl the motormen and conductors declar ed a strike because the Municipa Traction company did not carry out 2 contract the men had with the olt ! Cleveland Electric Railway company l for an increase in wages. When tho striking car men found that they were losing the fight they decided l they would compel consideration iron the new company by taking advantage of the state initiative and referendum law and call for q vote upon the new franchise. The strike was dropped and the former employees directe, their attention to the referendum That vote was held to-day.