Omaha daily bee., 1911-05-11
Street Traction Men
Argue Depreciation
State Railway Commission Considers
Setting New Per Car Mile Basis
for Same.
(From a staff Correspondent

fFfOm q Sta1t correspondent
LINCOLN. May 10-(Special. THE per
car mile basis for setting aside funds to
the credit Of maintenance and depreciation
accounts may he adopted by the state Rail-
way commission, following a conference
held here today between the commission
and officials Of the street railway COM
panies Of the state. The commission has
been requiring the setting aside Of per
cent of the value of physical property. Be
sides officials of the Omaha and Lincoln
local traction companies there were present
r. A. Luessler of the Omaha & Council
Bluffs Street Railway company, w. G.
Nicholson, auditor Of the same company;
II. s. Norton of the Omaha, Lincoln &
Beatrice interurban line.
| While rates are said to have no bearing
whatever on the proper amount to set
aside for depreciation. the depreciation ac-
count may have some bearing on rates to
be established by the commission. The
Lincoln Traction company now has before
the commission an application to increase
rates and the company. through Secretary
Smith, alleges that the company has not
been allowed enough for depreciation.
Mr.. Luessler first argued In favor Of
making gross receipts the basis OF de-
probation on the ground that earnings re-
fleet the use of cars and tracks and that
use is the principal but not the only fac
tor In depreciation. Later he heartily ap-
proved the suggestion that car miles be
made the basis. this coming nearer to
what he thought was the best test. Sec
rotary Smith OF the Lincoln Traction COM
pany opposed gross receipts a basis and
approved the proposed car mile basis. He
opposed gross receipts as a basis because,
he said Lincoln gave more service ac-
cording to population than the Omaha
company gives yet when the Lincoln com
pany proposes to take off cars 1t is not
permitted to do so. He said no city in
the United States Of the size of Lincoln
gives as much service. He asserted that
Lincoln has a metropolitan street car serv-
ice in a town of 10000.
Mr.. Smith insisted on the commission es-
tablishing rule that would apply to all
street car companies in the state. The
street car companies In the state. The
Omaha man opposed this and said condi-
lions were different in every city and that
the commission should investigate and
make rule for each company.
Mr.. Smith and the Omaha man INDUCED
in some discussion in regard to manage
ment. Mr.. Smith dened that a company
could take off cars when Is business falls
below 20 per cent in volume, while the
Omaha officer said they could be taken
off. He explained that his company ran
specials or trip cars on every line in
Omaha and when the morning and evening
rush is over they take off or put on cars
according to the needs OF the patrons. Mr..
Smith said his company runs some spe-
cial cars, but he contended that II the
traffic is comfortably carried and business
falls off 20 per cent for = short time the
company is not justified in changing its
time card. Mr.. Leussler believed that in
such case too many cars were run in
the first place and that the falling off in
traffic could be met by the taking off
of specials or trip cars between the morn
ing and evening rush.
Commissioner Furse made light of the
gross receipts basis by asking MIR. Lues.
sler II the gross receipts OF the Brandeis
store in Omaha would not be just as fail
basis as the receipts of the street car
company. Mr.. Luessler thought II would
not because the trade OF a mercantile bust
ness depends on esasons and special sales