Belding banner. (Belding, Mich.) 1889-1918, 1914-12-16
Il. VI. MUST HAVE HIGHER
FARES

The Pere Marquette seems TO have
arrived at point where it must have
higher passenger fares.
The average amount received from
each passenger on the Pere Mar
quette is 10 cents and ii costs so
cents To carry the passenger. Esti-
mates show that for the fiscal year
ending June 80, 1914 the average
cost TO the railroad per passenger
mile was 2.2 cents. The legal rate
Of fare is cents per mile.
To ascertain why the road cannot
be operated with a net profit sufIi-
cient to pay a fair return on the
valuation. Federal Judge Arthur j.
futile under whose general super
vision much of the operation of the
road comes, has ordered the receivers
70 examine all the sources of disburse-
ment and make a complete report
to the governor of Michigan, to the
members of the state legislature, to
the interstate commerce commission.
and To all who may be interested.
Then If the road is entitled to a high
er rate of fare, the evidence of this
right viii be found in the data sup
piled to those in authority to grant ii.
Judge futile says:
Il have instructed the receivers to
examine all the sources of revenue
Of the railroad and all the sources OF
disbursement, to ascertain why the
road cannot be operated with a net
proht sufhcient to pay fair return
on a fair valuation Of the property.
OF course, the first step in order to
do this is to find out what a fair
valuation of the property is and to
keep the books and accounts in such
way that they can be used as a
reliable basis for such computation.
These preliminary steps | have taken
to the best of my ability. The results
Of the appraisal of the property just
being completed by the Michigan
railroad commission will soon be
available, and will he helpful in
determining, regardless OF the past,
what the present value OF the road is
and therefore what il should be al
lowed to earn. Having done this,
have further instructed the receivers
TO ascertain whether any, of the ex-
penses now being incurred are un-
necessary and can be avoided with
0ut doing q wrong To the employees
Of the road or interfering with good
service 10 the public
From such information as ] have
ii now seems that even with the
practice OF every economy in the way
Of expense the income Of the road is
not enough to leave net profit suf-
ticient to pay fair return on the
value of the property | have there
fore instructed the receivers to carry
their investigation and examination
10 the various sources of revenue for
TO ascertain which If any, are in
adequate and If found TO be made
quate, to take steps to remedy the
same. number of instances have
been reported to me by the receivers
in which the revenue derived not on
ly does not represent "a fair return,
but does not in some cases cover the
cost of handling the business Among
the instances so reported to me, have
been translake business, the hand
ling Of mail for the government, the
handling of freight in less than car
lots, and the passenger business. In
each and all of these cases | have in
structed the receivers To proceed to
study the question carefully and so
far as they properly and lawfully
can, to try and remedy the fault.
"In regard To all these matters