The Detroit times., 1910-12-10
W|LLFIGHT TO HOLD
| FARE TO FOUR CTS.
rom L. Johnson's Friends Anticipate
Recommendation BY Traction.
Expert For Five-Cent Basis.

CLEVELAND, Dec. 9.-The Press
,ays:
The traction is boiling again.
President Stanley OF the Concvon
bet the fire under il by saying he
ant sell Concon stock and bonds as
ong as the maximum rate OF lare
provided for in the franchise is four
tents cash or seven tickets Tor
uarter.
Tractioner Dahl has gone down To
Vallst To find out ii it's really true
md III so, why. If he finds IT'S So
he may recommend that the maxi
hum be raised to five cents cash rare
br six tickets for a quarter.
City Solicitor Baker and associates
bf Citizen Tom who aided him III the
ong low-fare fight, say the Goncoh
tould market its securities under lhe
present maximum rate II 1t wanted
10.
+. II. Goff, president OF teh Cieye-
and Trust Co, and mediator for the
,oncon in the original Scent settle
nent, says the maximum franchise
|ate must be raised before capital
vill help carry the company out OF
he mire.
So there you are.
That no real effort is being made
10 market the securities is charged
by Baker and Citizen Toms associ
ties, and concurred 10 as proba0il
by at the tractioner's offices. That
bo decided effort is being made To
ell them was thought possible BY
Isoff. But Con declared that even Tie
most strenuous efforts to attract cap.
hal would fail so long as the maxi.
mum franchise rate is 4 cents and Z
or.25.
Is Public's Interest.
Goff. however. declares IL is OF
hore vital importance 10 the public
hat the maximum franchise rate be
aised than il is TO the company. The
ompany can earn 6 per cent, ne
boints out. and only 6 per cent, what
Ever the maximum rate The public
lar conserve Scent fare by giving
adequate security TO purchasers OF
Is securities, thereby reducing the
interest rate required 10 float the
bonds. The saving thus made wonld
mount to millions in the % years OF
he franchises life, and these mil
Ions would go TO help, not hinder.
pw fare.
Conditions of operation are too
Uncertain for capital TO be attracted
s. long as the maximum franchise
ate is 4 cents or seven tickets for a
uarter," Goff said For instance,
cost OF labor continues 10 advance
nd cost of materials 10 increase. the |
operating expense will be materially !
hcrsased within the life OF the fran
hise Another element of uncertain
y has been introduced by the subway
ordinances recently approved
Must Be Adequate.
Before capital will be attracted TO
cleveland railway issues. they must
bier as good an Investment as can
be- secured elsewhere and must give
he Investor reasonable assurance
hat he Will be able to get his money
lack
Lack Of assurance that the pres
ent maximum fare will take care OF
maintenance and dividends under all
contingencies is responsible for tho
reluctance OF investors TO buy Cleve-
land railway securities.
1T is to the publics interest, not
he company's. that the maximum
rate be increased. The mailman
'ate as provided in the franchise
probably never will be the actual op-
srating rate. But the higher the max.
mum is fixed the cheaper the com
pany will be able ofinance its re-
.buirements"
4 The company's inability to market
Is new stock issue is partly explain
fd by the requirement OF the Tayler
Franchise that ii sell at par. Holdings
Pf old stock have been kept on tho
market bearing the price to from 9G
10 9S. Naturally, there is no demand
or the new issue at 100 when stock
ian be bought at a lower figure.
An increase in the maximum fare,
wen though in actual operation.
ould not bring an Improvement in
ervice except through aiding fnanc-
hg. All new equipment and exten-
ions must be pai dior from new
took and bond issues. not from sur.
lus earnings, under the franchise.
While standing ready to oppose the
Proposed increase, Democratic adj
erents of low fare. who fought un.
Ter Mayor Tom, will welcome the is.
ue. They see in any effort by Dahl
r the Republican council TO raise
he rate, the livest issue for their
campaign to regain control of the
Uity admin Stratinn povt Nnva,oIor