The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-06-17

hibition "a hours q day In the Sixth
City in America, with a population. In
cluding its environs, of threeQuarters
OF 6 million inhabitants.
It would be going far afield to give
q complete account OF the many ram.
incations of Cleveland street railroad
history. Sufncient 1t Is. for the In
formation Of other American cities,
70 state the three fundamental princi-
pics upon which settlement was ef'
fected between the city and the COM
pany. whereby both parties are the
mutual benenciaries. They are: The
best railroad transportation at cost.
consistent with the security OF the
property; the largest powers OF regu-
lati0n In the interest Of public service;
and q fair. fixed and certain rate Of
return on the Investment
The car-riders' gain under this ar
rungement have already been indicat-
ed-excellent service at cents. From
the standpoint of the stock and bond
holder, the situation has been equally
happy. Not dividend has been pass
Cd, not IN interest payment suspend
ed In fact, an indispensable element
Of the ordinance IL that stock shall
regularly yield per cent and bonds
the stipulated interest rate OF per
cent
Since the Tayler settlement became
effective. the company has paid taxes
or its full valuation-there II no In
ducement for tax-dodging a. the COM
pany IL secured its profits. A liberal
excise tax to the state government
and q corporation tax to tho federal
government are also paid. while the
company bears the cost OF city super
vision OF It's management and opera
tivn (about $4,000 per annum). and
shares per cent of the burden OF
maintaining the state public utilities
commission.
The company II q generous employ
er The rate of wages for motormen
and conductors is soc an hour (27c for
the drst year,. and the average for
the system, about CSC an hour. IL con-
siderably higher than the average rate
In the United States, whether for
unionixed systems or not. The liber-
atty Of compensation to operating en-
ployes II characteristic also of the
compensation to all other employees.
both salaried and wage-earning.
In conclusion, what IL the secret OF
Cleveland's pronounced success with
2e fare? The answer lies at the sur
face. and 10 the same a. may be given
tor the success of any other sound and
I onterprising business.
First. the reduction from SC to Sc
ARE has resulted in q 20 per cent slim
q ulation In the number of street car
riders. While It 10 possible In Cleve.
land to ride q distance Of IL miles for
cents. the increase In the aggregate
number Of rides and in "short-haul"
tfaf1c has been 80 tremendous as to
compensate for Improbable business
AID to materially cut down the losses
due to fare reduction. Secondly. and
this accounts for the rest OF the ex.
plantation, the water In the Cleveland
\ traction valuation has been squeezed
out TO greater degree probably than
4 In the case Of any other public utility
In America. I venture the assertion
: that II the water In the book value or
every street railway property were
squeezed out as II has been In Cleve-
land, even though q generous allow
nnce be made for franchise value.
goodwill and overhead charges, every
American citizen could ride on city
cars for cents, and enjoy good ser.
vice. and every American city could
realize to proportionatoly greater or
less degree the handsome saving
Cleveland IL realizing this year in
street car fares, namely, the sum Of