The Detroit times., 1913-03-12
ell gives the order" suggested Mr..

Il ell gives the order, suggested MT.
Fraser. -
+ 'Law-abiding-yery interesting. "
Mr.. Witt said. sarcastically. The
first thing IL ought TO do is TO give
It's cars bath. It's black eye To a
town, 10 force visitors 10 ride on such
dirty cars as YOU have here"
Mr. Witt said 1t would be great
advantage 10 secure fair physical
valuation of the II. L. r.
Fixed by court OF equity asked
Mr.. Lawson.
one mind. in the last analysis,
ought TO determine it,
But isn't u the sane. sensil q
thing to do, To refer IL TO court o.
Lawson persisted.
Mr.. WITT gave no answer.
To the council. Mr.. Witt described
the struggle in Cleveland from il,
inception in 1883 through the period
that led 10 800 people voting for
mnniciple ownership ia 1890.
through Tom l.. Johnson fight with
the company, down 10 the present
day. About 80 people besides the al
dermen We're present. The d. L. r.
was represented by 4. n. h. Van
Lant, who sat in an aldermanic chair
and listened with an expressionless
face 10 what went on.
Lashcs Ohio Legislature.
seventeen years ago the OHIO leg
islature, under the whip and lash OF
Senator. Foraker and Doodle, gave
! city councils the right TO grant 90
! year franchises" said Mr.. Witt II
am pleased to-tell you that yester=
day the Ohio legislature revoked the
50-year charter Of the company in
iCineinnati.
1T is an easy matter for All eN-
listing company 10 get an extension
Of Its rights, but 1t is hard for
competing company to secure foot
hold. In December, 1901. a construc-
ton company was organized in Cleve-
land, and holding company CT five
Icitizens To hold the city lines In trust
Iuntil the city had power 10 own and
operate them. IL took a year and
half for the council TO permit the
laying OF tracks that the company
knew would not stand in the higher
courts In 1905 the first competing
three-cent line was put in operation.
Next year Senator Burton. who,
like the late lamented Julius Caesar
Burrows, voted ia times with Aid
rich, ran for mayor At his defeat,
the street railway company's stock
went down 10 81. Then the COM
pany agreed 10 settle with the city.
THE physical property was valued
at ST., 600. 000, or SCI 900 mile. There
was S7.O00,000 in intangible property.
including $3,600.000 for unexpired
franchises Conditions in Cleveland
were different from those In Detroit.
for your unexpired franchises are
mainly stub ends, while those in
Cleveland were whole lines. The lines
were then turned over TO the munich
pal traction company, but after six
months the people refused, by a ma
jority OF COS votes, TO sustain a Sc
curity grant.
The TayIer Plan.
Judge Robert w. Tayler then APP
pointed two receivers. IL was agreed
10 give the company six per cent in
come on $24,000.000 valuation, and TO
establish a sliding scale of fares, the
maximum being a four-cent fare. with
one cent for transfers, the minimum
-
for transfers and a one-cent rebate
II the transfer We're used. An inter
est fund OF 100000 was established.
into which all receipts were TO b,
paid From this fund the company
was TO receive IL l-2 cents for every
car mile travelled. Ave cents for main
tenance and renewal. and about seven
| cents for interest and dividends When
4 4 he. l.,
inal half-million, the next lowest rate
Of fare in the sliding scale was 10 be
applied
! We started with a threecent fare,
with one cent for a transfer and no re-
bate. AT the end OF - months. the
surplus was over 100000, so automat.
ically the next lowest rate went into
effect--a three-cent fare. with one cert
for transfer, and one-cent rebate
Il the transfer were used
Neither the city officials nor the
company liked the settlement. The
city officials were for municipal own
ership; the company wanted a fran
chise on which 1t could pay dividends
on capitalization of $4,000 900 or
so. But the train had passed that
station, as II has in Detroit, and
though the ofhcials OF the ID. L. r.
are still waiting for II to pull In. it's
red tail-lights are already out OF
sight.
I'VE are not going into immediate
municipal ownership Of the Cleveland
street railways because we now have
power to go into other things. Our
city affairs are no longer controlled
by the legislator from Podunk. The
people could save 100000 by pur-
chasing the railway. but they are go
ing to let II alone.
But | wouldn't recommend a set.
Element for Detroit You have the
municipal ownership power. and your
people will never be satisfied until
they are running the lines. and run
ming them for service, not for profit"