The daily star-mirror. (Moscow, Idaho) 1911-1939, 1913-06-05
quarters of a million inhabitants


a complete account of the many ram
ifcations of Cleveland street-railroad
history. Sufficient it is, for the inform
alton OF other American cities, to
state the three fundamental principles
upon which settlement was effected
between the city and the company,
whereby both parties are the mutual
bene1ciaries. They are: The best rail-
road transportation at cost, consis-
tent with the security of the fair, fix
ed and certain rate of return on the
| investment.
The car-rider's gains under this ar
rangement have already been indicat-
| ed.excellent service at three cents.
From the standpoint Of the stock and
bond holder, the situation has been
equally happy. Not a dividend has
been passed, not an interest payment
suspended. In fact, an Indispensable
element of the ordinance is that stock
shall regularly yield 6 per cent and
bonds the stipulated interest rate of
per cent.
Since the Taylor settlement became
effective, the company has paid taxes
on it's full valuation-there is no in
ducement for tax-dodging as the COM
pany is secured in it's profits. A liberal
excise tax to the state government
and corporation tax to the federal
government are also paid, while the
company bears the cost of city super
vision of it's management and oper-
alton (about $4,000 per annum,) and
shares 5 per cent of the burden of
maintaining the state public utilities
commission.
The company is a generous en-
ployer. 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
20 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-
ton to operating employees is char
acteristic also of the compensation to
all other employees, both salaried and
wage-earning.
In conclusion, what is the secret of !,
Cleveland's pronounced success with |
fare? The answer lies at |
the surface, and is the same as may
be given for the success of any other I
sound and enterprising business.
First, the reduction from five-cent |
to three-cent fare has resulted in a
20 per cent stimulation in the number
Of street car riders. While it is pos
sible in Cleveland to ride distance of
the aggregate number of riders and in
tshort-haul" traffic has been so ire
mendous as to compensate for unpro-
fitable business and to materially cut
down the losses due to fare reduc-
ion. Secondly, and this accounts for
he rest of the explanation, the water
N the Cleveland traction valuation
las been squeezed out to a greater
legree probably than in the case of
my other public utility in America
venture the assertion that if the wat
II in the book value of every street
'ailway property were squeezed out
is it has been in Cleveland, even
hough a generous allowance be made
or franchise value, goodwill and
overhead charges, every American I
itizen could ride on city cars for
ents, and enjoy good service; and
very American city could realize to
proportionately greater or less de- {
rec the handsome saving Cleveland
) realizing this year in street car
ares, namely, the sum of 100000