The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1917-02-01

S. B. Way, first vice president and
general manager of the Wisconsin Gas
and Electric Company, has invited the
city of Kenosha to join with that com
pany in the operation of the Kenosha
Electric Street Railway Company and
he has made proposition to the of
fcials of the city for their eonsidera-
ton, which provides that the company
may swap profits for cooperation. 1t
is the most daring proposition ever
made to any city by an electric rail
way company and it offers to the city
chance to share in the growth
of the business of the company
provided the city is willing to CO.
operate with the company
The proposition Of Mr.. Way is cAat
the company will give the city of Ke
nosha in return for active cooperation
in the operation of the lines of the
company forty per cent of all profits
earned after six per cent has been
paid to the stockholders on the invest
ment and after all fixed charges and
charges for new equipment have been
paid. This would provide that when
the net profits of the company are
allotted in any year that twenty per
cent should be charged off for distri-
button among the employees Of the
company so that an increase in the
business of the company would at all
times mean an increase in the amount
of earnings Of the men who actually
operate the cars. After this amount
is taken off for distribution among the
employees, the remaining forty per
cent of the net profits would be
divided share and share alike, forty
per cent to each-between the city
of Kenosha and the company.
Puts Valuation at $375,oC0.
In making this proposition to the
city, the vice president of the com
pany placed the physical valuation of
the property, the basis for interest on
investment at $4,000. This is ex-
actly $4,000 less than the company
paid for the street railway property
when it was purchased from the Lon
don company in 1912. The physical
value of the property was determined
after writing off large sum of money
which was invested in duplication Of
plant properties. 1t was held that
the price set on the lines was represen-
tative of less than the actual invest
ment and that it was considerable
less than the replacement value of the
property at the present time.
Provides for Extensions
The plan to share profits with the
city would give the city voice IN
the methods Of operating the line with
the understanding that the city might
order such extensions as it saw fit and
demand such change in equipment as
it saw fit, but with the understanding
that the city should pay for these
changes if the contract with the com
panv was terminated before actual
profits had been earned to pay the IN
vestment. IF extensions of the line
were made on the order of the Common
Council the company would advance
the money and make the extensions,
but if these extensions proved losing
venture than the city would be forced
to pay to the company the actual
unearned cost Of installation. The
plan suggested by the company offered
an idea of municipal ownership. 1t
was suggested that if the city wanted
to guarantee to the company interest
on the investment that the company
would be pleased to give the city a
chance to operate the line under the
proposition suggested. That it might
put into use any suggestion it saw fit
for Improvement of service so long as it
guaranteed the six per cent on the stock
named in the physical valuation.
Plan Interests Officials.
At the conference which was held in