The Detroit times., 1909-12-11

For the first time an intimation has
been given the public as to the at.
titude OF the Detroit United railway in
negotiating for an extension OF its
franchises. President j. {. Hutchlns
has prepared a statement containing
several tables bearing upon the cost
of carrying passengers In Detroll
His most striking statement IS that
the cost of electric transportation is
going up like most other commodities.
Higher wages. dearer materials. etc.
will make the average cost of carry
ing a passenger in Detroit more than
four cents next year, he tells us.
One OF the Hutchins calculations
takes the 1899 Pingree-Bemis ap-
praisal of street railway property as
a basis. That figure was $I,S06, 1914
and since that time the d. u. r. has
expended $6,29S,6l5.03 in betterments
such as extensions, power improve
ment. cars and subways. making a
total physical value OF $l4.l05,oo2.45
which is $2,S20,916.03 more than the
Bancroft appraisal.
Figuring this depreciation on the
basis of the 773,933. COG passengers car
ried by the ID. u. r. in ten years.
gives an average OF 1855 cents per
passenger depreciation charge. The
average cost Of carrying a passenger
in 1908. according to the committee
OF fifty figures, was 2.62 cents, while
+. III. Macpherson & Co., have figured
It at go. Adding the depreciation
charge and SO cents as fair inter
est return on the physical value shown
by the Bancroft appraisal gives SER
vice rate OF 3.615 cents on the former
basis and 1896 cents on the Macpher-
son figures. This is without figuring
any return on franchise values. Mr..
Hutchins says that taking into &C
count increased wages, etc, the cost
per passenge. Will exceed four cents.
Thus 1t will be seen that the ID. U.
r. will present figures TO show a cost
of nearly four cents. Hutchins adds
that In Chicago the first cost or car
rying a passenger is 3.54 cents, as
compared with 2.70 cents here, and he
explains this by saying that Chicago
is much larger city, indicating that
increased population will not mean
more economical service.
IF messengers are carried at a loss,
the loss will be greater as the num-
Der increases" he remarks pithily.
Mr. Hutchins uses another compiia-
lion In which he takes the total or
the Pingree appraisal. adds the bet
terments since made. getting total
OF So, 5S3.a16, and compares this with
the committee OF fifty gross valuation
of s14.095,152 to show that nearly
eight and one-half millions OF values
have melted into thin air in ten years.
The defense that will probably be
made of the committee OF fifty figures
will be to the effect that the Plngree
appraisal included lines partially out
side the city, while the Bancroft -ap-
praisal deals with cay lines alone.
Mr.. Hutchins declares that Account
ant Gridley, working for the mayor
committee, made an error in charging
In the S54 .23S hve-cent fares collected
on the Jefferson-ave. line between ST.
Jean Road and the Country club az
a portion or the city line receipts. He
also disputes Gridley's action in de-
Quoting the sums received for mail,
express, advertising and freight from
the gross operating expenses.
Accountant w n. Gridley is out Of
the city and will not return for some
time. Members of the cost Of service
committee left the detail OF figuring
TO Gridley and so are not prepared to-
combat the Hutchins data on-hand.
Mr.. Hutchins figures things Just
a little differently from Mr.. Gridley,'
stated Secretary Paul c. Renaud. OF
the committee of fifty. There are
some items in regard to which there
is difference of opinion as To- the
manner in which they should be talk
en-. Mr.. Gridley. working under the
direction of his committee. has figured
them in different way from Mr..
Hutchins."