Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-17
THREE.CENT FARE
DECISION is VICTORY
FOR UTILITIES MEN
u. S. Court Ruling Declar-
ing 1t Con6scatory Ends
One of Most Remarkable
Traction Fights Country
Ever Saw.

After q strenuous fight which lasted
many months and which was watched
with unusual interest in all parts of the
country, the thtee-cent fare controversy
in Toledo, Ohio, has at last been settled.
Judge Killits, In the United states Dis
trict Court of that city, has decided that
the city ordinance enforcing this rate Is
contiscatory and he has ordered return
to the old rates, five cents for each pas
senger except during the morning and
evening rush hours, when the rate shall
remain at three cents.
Decision in the case was a victory for
public utility interests. While the fight
was on between the Toledo Railway &
Light Company and the city authorities,
there developed a situation in Toledo
which has never had parallel In this
country The company, after March H.
when the ordinance became effective,
declined to accept the three cents offered
by passengers who boarded its cars, and
those who did not produce the five cents
which the company declared to be its
regular rate, were permitted to ride free.
There was no acceptance of three cents
for q ride EXCEPT during the rush hours.
For five months the company operated
its cars under this regulation and its
officers figured that the losses incident to
this arrangement averaged $1,000 day.
Yet they would not retire from their
original position in the matter and they
determined to fight it out to the end.
They declared the principal of the lower
fare scheme to be all wrong and on the
ground that the securities of the company
were being seriously impaired by the low
rates, they fought every move for en-
forcement of the ordinance.
Early in the fight Henry l.. Doherty,
head of the company. offered to permit
the city authorities to take over the car
system and operate it for a year to prove
that the low rates Of fare were unprofit-
able. The city declined the offer, but it
submitted to the voters proposition to
have the municipality buy the property
and operate 1t under municipal owner
ship scheme. The voters, at a special
election, agreed to this plan, but there
was no provision for the creation of a
bond issue with which to purchase the
property.
Judge Killits laid upon the city authori-
ties the burden of proof to show that the
company's revenue, under the three-cent
fare ordinance. would pay its operating
expenses and leave q surplus of from
100000 to 100000 a year. Such proof was
not produced, in his opinion.
Judge Killits said that the city should
have had, when 1t passed the three-cent
fare ordinance, knowledge that its terms
were reasonable. Neither the city nor n
court has the right he said, to AK an
arbitrary rate of fare without the knowl-
edge that such rate will pay operating
expenses and leave reasonable return
on the investment. BY this, he said he
had no reference to bonds.
rs 1t possible that the city intends to
occupy the position of dog in the manger
forever" said Judge Killits. 'If tho
ordinance Is unreasonable the company
cannot be held to its terms by the mere
fact that 1t continues to operate We
must have transportation. Then for the
city to say that II the company continues
to furnish that transportation 1t accepts
terms which may be unreasonable is un-
considerable"
The Huntingdon Development and Gas
Company, managed by +. w. Clark &,
Co, of this city, increased its output OF
gas from S5,000.000 cubic feet in July TO
140 100000 cubic feet in August. The COM
pany has valuable concessions in West
Virginia and its securities have recently
been in active demand.
Stock OF the Capital Traction Company,
Washington, d. c., has gone to a per
cent basis. 1t has been on a per cent.
basis for several years. The cut in the
dividend rate was authorized at the meet
ing OF the board of directors and Is to
take effect with the quarterly dividend
payment due October 1. 1t Is due to de-
creases in earnings