Omaha daily bee., 1909-10-05

Long Battle for Lower street
Car Fares in Cleveland, Ohio.
An agreement, lacking only minor de-
tails, has been formally accepted by the
city authorities and the street railway in
terest which promises to put an end for a
time at least to the battle for 3-cent fares
In Cleveland. TIL struggle has been going
on for fourteen years, inspired by a like
war waged by Shoemaker Pingdee I'm De
troit. But the fireworks Of the Cleveland
fight did not begin until Tom Johnson be-
came mayor of the city in 1901. Since then
the city has prosecuted a vigorous, and at
times desperate fight for municipal control
and Scent fares. The terms Of the agree
ment marks a substantial gain for the city.
Briefly the city accepts the proposition Of
the company to submit to Judge Robert
w. Tayler OF the federal district court as
final arbiter the questions OF valuation and
maximum rate Of fare. The only stipula-
ton prescribed is one that Judge Taylor's
valuation be by items, to the extent that
neither the company or the council shall
request, the purpose Of this itemization, to
use the language Of the council letter.
being. Of course, to enable the voters to
discuss and understand IL, for the valua-
ton Of the property will be the foundation
Of the ordinance and OF the settlement"
which will be submitted finally to a vote
of the people. The terms OF the tentative
agreements are:
Life Of franchise twenty-five years.
Initial rate Of fare 3 cents. Maximum
rate probably 8 cents cash with free trans
fers and seven tickets for 25 cents with a
penny charge for transfers.
Good service to the public at cost. Cost
covers operating expenses, maintenance
and renewal funds, fixed charges on bonds
and debts, taxes and s per cent on actual
investment to stockholders.
The city to have the right to name a
purchaser in eight years.
Complete supervision by the city over the
operation Of the lines.
A maximum rate, which is somewhat in
the nature Of a compromise, may be fixed
by Judge Tayler. This is a rate Of 4 cents
cash fare with l cent for transfer and no
rebate, or seven tickets for % cents with
l cent for transfer and no rebate. In one
important respect this rebate is preferable
to the company's proposed rate Of 5 cents
flat with free transfers. It maintains con-
%sistently the principle that every possible
safeguard should be provided to prevent
the misuse of transfers. Were Judge Tay.
Ter to name this maximum the company
would undoubtedly be satisfied 1t would
be bound, at any rate, to accept Il. as 1t
was the company's own proposition to
leave the decision in the hands of Judge
Tayler.
TIL question about which there has been
most contention between Mayor johnson
and the officers OF the company really re-
late to the rate of fare in both instances.
The company commended that since II
agreed to accept the initial rate of 3 cents
r it might have heavy losses and it ought to
be allowed a maximum of seven tickets for
25 cents and a penny for transfer. Johnson
was willing TO let the maximum he seven
tickets for a quarter, but up to this time
l he has refused to consider an additional
charge for transfers. What he yields now
is not that he will agree to the higher
rate as a maximum, but that Judge Tayler
Of the United States circuit court shall act
as arbitrator and say which maximum
= shall go into the ordinance.
Because there is a sliding scale Of fares
based on the property paying all expenses
and q per cent of the actual value Of the
property, a valuation OF the company's
property is considered necessary. That is
also referred to Judge Tayler, who can sit
as arbitrator himself or appoint a com
mission to arbitrate. The company had
proposed arbitration to settle the value or
had declared its willingness to adopt a
3 previous valuation made in 1908. At that
time the company owned 224.5 miles OF
single track railway, exclusive of switches
and barn tracks. The physical value Of
the property was fixed at SIS, O34, 614.76.
. The company was allowed "a, AL, 564 as the
. value of Unexpired franchises and S2,7O7.-
r $685. for good will as a going concern. It
: bought the Scent lines which were sup
posed to have no franchise value and
these with the three items already given
brought the total value OF the system to
$4,000 900. 1t is expected that Judge Taylor
will follow the work Of the experts in the
4 former valuation and reach a figure not
very far from that of the old valuation.
z -
"If, as now seems certain says the
Cleveland Plain Dealer, "the Taylor plan
shall become effective, Mayor Johnson will
have won one Of the most notable victories
in the history Of American municipal poll
! tics. He will have succeeded in securing
i for Cleveland the lowest fare capatible with
adequate service and just though moderate
profit. The fare at the outset will be 8
cents and cent for transfer without re-
bate. Whether 1t will be higher or lower
after a sufficient trial depends wholly upon
the results OF the experiment. The people
of Cleveland are as averse to a fare in
' adequate to provide satisfactory service
E as they are to fare high enough to allow
exorbitant profits to the traction stock
n holders. The settlement will not be
I wholly in accordance with Mr.. Johnson's
personal preferences, will not embody all
he has contended for. But in yielding
some points to the popular demand. In ae-
cepting terms that the majority OF Cleve-
landers deem Just and reasonable, the
! mayor is none the less the victor in the
I long struggle
TURNING TO WASHINGTON.