The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-18
IN G[ARY
ROAD PLAN TOLD
BY MACARTHUR
Answers Spurious Figures, as
TO Cost and Income, of
TurncOat Journal
Municipal Road City's Only
Way of Escape From
Railroad Bondage
By WALTER MACARTHUR

By WALTER MACARTHUR
1t is said that the proposed issue of
s1.s50,OOo wiz increase the burden of
taxation. In fact, the Geary street
railroad viii in the future, as at pres
ent. be money making business. The
actual rece pts for this year are $240. 600.
It is estimated that with the extension
of the road, which now stops a. Fifth
avenue. to the Sutro baths. ocean beach
and Cliff house, thereby serving the
new residential territory in the outer
Richmond district, as well as compet-
ing for the immense amount OF pleas
ure travel chose desiring to reach the
baths. beach and cliff house, the re-
ceipts VIII De doubled: if that be cor
rect, the annual receipts would be
$3.50 0O0
But supposing that we figure ultra
conservatively, and say that the roads
business will only increase by half,
then on that basis the annual receipts
to begin with would be $3.50. 600.
It is estimated by railwaymen
throughout the country and the CON
sensus of opinion seems 10 be that the
operating expenses of the conduit sys-
tenn are between 40 and As per cent,
but suppose that we are again conserv-
ative. and say that the operating ex-
penses will be 80 per cent, that means
that the road viii be operated on
s360,000 basis for $4,000 leaving
$4,000 with which to take care of in
terest and redemption The bonds run
for 80 years. making it necessary to
provide $4,000 yearly for redemption;
at AZ per cent interest the charge
will be the first year, which will be
the highest. SS7,750; a total of S153 ESQ
for interest and redemption which,
subtracted from the $4,000. leaves US
s27,250 annual profit, which can be
used TO make extensions and additions
to the road
WATER SUPPLY BUGABoO
Again, ii is said that the issuance
of the Geary street railroad bonds will
endanger the power to acquire water
supply. A sufficient answer 10 this is
that if all the bond projects now be-
fore the people be carried there will
still remain bonding capacity of over
$40. 00O, 600. This estimate. based upon
the most careful calculation, takes no
account Of the fact that the bonding
capacity of the city will constantly
increase; first. by the increase in the
value OF taxable property, and, sec
ondly. by the redemption of bonds al
ready issued.
The water question, considered by
itself, is a meritorious one and is fully
safeguarded under the proposed bond
issues; but that question. considered as
an objection 10 the issuance of bonds
for the Geary street railroad is a
bugaboo, and nothing more.
AS to the economic phase of the op-
position, the main contention is that
the Geary street road. under municipal
ownership. viii not have transfer priv
ileges with the other lines That priv
ilege does not now exist, yet the road
does a paying business and may there
fore be presumed to render useful serv-
ice
The situation under municipal owner
ship viii be at least no worse than it
now is, while the reasonable probability
Gin fact. the certainty is that 1t will
be greatly improved. The attitude of
the United Railroads in this matter is
one of contempt for public convenience
in which IT is encoura ged by the hope
that IL may secure further privileges
from the people. That hope dispelled,
reasonable. At any rate, ways may be
found to induce the company, if only
in self-interest. to play fair with the
city in this and also in other matters.
ABOUT 'WATERED STOCK
With reference to the considerations
involved IN the watered stock of the
company, We are told that that rs not
OF the slightest consequence to the peo-
pie of the city. II (the company can
only charge a cent fare. 1t will
charge that anyhow" That is quite
true in fact. but quite false in infer
ence. The company can not raise fares
amounting to four times the value of
its property, but it can and does reduce
the quality of the service. This. it
would seem. is a matter of some conse-
quence to the people of the city.
The corruptive influence of public
service corporations under municipal
government is one of the best known
and most generally conceded facts of
present day affairs. 1t is significant
that this fact has recently been ac-
knowledged by the most prominent
newspaper opponent of the Geary street
railroad bond issue.
The newspaper in question originally
favored the bond Issue for the reason,
among others. that public ownership
would lessen the dangers OF public cor
ruption.
That paper now assumes the opposite
attitude. basing its opposition upon the
temptation for a street railroad COM
pany TO corrupt public servants" fol-
lowed by the statement that I'VE have
by charter provisions made it impos-
sible for any serious injury to come to
the public by the corruption of public,
servants by street railroad companiesp
This. il must be admitted. is a. rather
remarkable statement in view OF the
recent. happenings in the relations be-
tween the street railroad companies
and the public servants of San Fran
cisco.
SHOULD CAST OFF YOKE
The fact that the Geary street road
is one of the few roads not already
monopolized by the United Railroads
company is the best possible reason
why il ought 10 be retained by the
city. San Francisco is today in a posi-
ton of practical servitude 10 the public
service corporations. She ought not to
increase the power of these corpora
tions to trade upon her necessities. To
do so would be fatal to the welfare Of
the people.
Pubfic ownership of pubIfc rfi1;tfer