Semi-weekly herald., 1913-06-09
LOWER RATES FOR STREET
CAR FARE ARE POSSIBLE

are some 10000 inhabitants Of Clevc-
land, Ch.o, who will answer from tx
pericnoe that it can be done. Cleve-
land nas Cone it. Squeeze the wuter
out of every strset railway property,
and it's easy, said Newton d. Batcr,
mayor of Cleveland today. When the
public realizes that it would mean a
saving at the very least of something
like $4,000 every day to the citizens
of Washington, D. G., and matter
of at least $4,000 daily to Bostonians
if they had Scent fares, the i'm
portance of chow Cleveland does it"
is thrust home to every man, woman
and child in the country. Mayor Ba-
ker today explains to the strap-hang-
ers of the United States, how Cleve-
land saves its citizens $4,000,000 an
nually by Scent fares. Here's how
Newton D. Baker, mayor of Cleveland,
o., explains it:
On the morning of Nov. l, 1906,
with Tom L. johnson at the con-
troller, the first Scent car line in
Cleveland began operation on Deni-
son avenue. From that day until
March ], 1910, as franchise rights ex-
pired on one street after another, new
lines were gradually placed on a g.
cent fare basis. On the first of March
1910, the street railroad settlement,
known as the Taylor grant, went into
effect and an initial fare Of cents,
with a penny charge for a transfer,
was installed on all city lines. Fifteen
months later, or on June l, 1911, this
rate of fare had proved so profitable
that the rate was reduced to flat g.
cent fare, with free transfers.
Even this rate of fare has been
found to be in excess of the actual
needs for operating expenses and fix
ed charges, and as result the city
is now confronted with the alternative
Of still further improving the service
or going to 2 1-2 cent fares. The
street car situation in Cleveland may,
therefore, be epitomized as follows:
Three-cent fare, with free transfers,
unrivalled day service and excellent
rush-hour service, in well-ventilated,
well-heated and well lighted cars, rum
ming on as good road bed as can
be found in any city in the country,
with few or no exceptions, and oper-
ated by the highest paid, best treat
ed trainmen in the United States, is
an actual, persistent and permanent
reality on exhibition "a hours day
in the sixth city of America, with a
population, including its environs, of
three-quarters of million inhabitants.
1t would be going far afield to
give a complete account of the many
ramifications of Cleveland street rail-
road history. Sufficient it is, for the
information of other American cities,
to state that three fundamental prin-
ciples upon which settlement was
effected between the city and the COM
pany, whereby both parties are the
beneficiaries. They are: The best
railroad transportation at cost, con-
sistent with the security of the prop
erty; the largest powers of regula-
ton in the interest of public service;
and a fair, fixed and certain rate
of return on the investment.
The car-rider's gains under this ar
rangement has already been indicated
excellent service at three cents.
From the standpoint of the stock and
bond holder, the situation has been
equally happy. Not a divident has
been passed, not an interest payment
suspended. In fact, an indispensable
element of the ordinace is that stock
shall regularly yield 6 per cent and
bond the stipulated interest rate of
5 per cent.
Since the Tayler settlement became
effective, the company has paid tax
es on its full valuation-there is no
inducement for tax-dodging as the
company is secured its profits. A lib
eral excise tax to the state govern
ment and a corporation tax to the
federal government are also paid,
while the company bears the cost Of
city supervision of its management
and operation (about $45,00O per an
num), and shares per cent of the
burden of maintaining the state pub
lie utilities commission.
The company is generous employ
er. The rate of wages for motor
men and conductors is 80 cents an
hour (27 cents for the first year,
and the average for the system, about
2e cents an hour, is considerably high
er than the average rate in the United
States, whether for unionized systems
or not. The liberality Of compensa-
tion to operating employees is charac-
terlstic also of the compensation to
all ether employees, both salaried and
wage-earning.
In conclusion, what is the secret
of Cleveland's pronounced success with
3-cent fare? The answer lies at the |
surface, and is the same as may be |
given for the success Of any other
sound and enterprising business.