The Detroit times., 1917-12-01

intreased taxes. cost 81 labor anc
material and every other item con
nplfsd with tho stree- railway pua'
inesa had Increased.
"Wo have been notified By me
bank p tir Brooks cODtinnes, that
w. cannot borrow more money ana
thc only funds We have 10 conduci
abe business comes from the fares.
Cur business h. on cash basis ano
VIC must have the cash or quit our
sfplng. plus what We could borrow,
has taken care az our operation den-
cli IN the past hut We can't borro"
more now and our surplus has been
cut into deeply We have sl0,oUu,-
GOO invested against which no So
curities have been issued and our
total investment is more than S5a,-
600 600
Mr. BROOKS said that even with the
higher fares n would be necessary
10 continue the skipstop plan ana
the reroutng system 20 make 10 pos
Rlble to continue business. lie said
however. that the company would
hcuin as once 10 render better ser
vice. puttinE on more snd peitei
cars and in every way giving iletro-
r sfreel railway service worth th.
nve-cenl fares that VII be charr q.
Commissioner John j. Dodge oea'
ed Mr.. Briukerhoff rep-ese iuns
Barclay Parsons & Klapp. n Dr. hrn.
would undertake 20 mske sdrYey
Of the Detroit United railway 'alues
and the necessity for Increased
fares Mr. Brnkerhoh said 10 would.
CORPORATION Counsel Dingeman
then asked Mr. Brooks II it Nouid
not be possible 10 postpone the OBJ
Grafton OF the new plan until THIS
Investigation could be completed,
but Air. Brooks, stating that onsl-
ness had fallen OF $500 day over
the same period last year and that
costs had increased propor1onateiy,
said II could not be done. He de-
elaHea that the company Was NOT
paying running expenses. let alone
dividends, and that Il could not
swerye from the course - had laid
down. lie could not even compro-
mise on a six-for- quarter fare.
Commissioner McMath asked u
the company would be satisfied with
o. smaller dividend than the eigh'
per cent now being paid.
Eve aill do all We can 20 render
good service and shall not ask FOR
Increased profits" replied Mr.
Brooks.
Corporation Counsel Dingeman
said be would not act 70 prevent tho
railway putting its plan into effect
until so ordered by the mayor or
the common council.
There are two ways In which
we might act" he said. "One would
be to order the railway company of
the streets In which event We would
have no street railway service and
the other would be 20 get some OF
the money back by charging the
railway company $500 day rental
for use OF the streets In either
case, however. we would not be get
ting any the better or the situa'
ton The $500 a day would not
begin 20 pay back the additional
fare charged, while ifswe ordered
the cars of the streets we would be
cutting OF our nose 20 spite our
face. shall wait for instructions,
hut, OF course. we Will have the
whole fight over again"
After a lengthy discussion Mt.
Brinkerhoff was asked 10 submit 10
tbc street railway commission as
soon as possible an estimate OF the
cost ~ investigating the company
earnings under the old rates Of fare
and submitting report 10 the
board The board VIII meet again
at the call Of the chairman wnen
Mr.. Brinkerhoff Is ready with his
estimate.
President Brooks said the com
pany's books were open for any in
vestigation the city desired 20 make.
Following the meeting Mr.. Brooks
stated 10 newspaper men thai the
service on all lines would be i'm
pro>ed as fast as the Increased
revenue from the straight nve-cent
fare would warrant
The text OF the statement sub I
mitted By the D. L r. follows
Dec T. 1917
tn. Honorable Mayor and Common
Council. city.
Grntlenen,.--
public as being entirely beyond Our
control IL is absolutely necessary ~
suspend the day to day agreement
We are working under IN relation 20
the time being 20 resume The rates
!n effect prior 20 August Z, i3la The I
conditions making this course neces-
Sary are as much regretted By our-
selves ag anybody else. The present
rates OF fare are not yielding IN De
troit q sufficient income % meet ordl- |
nary operating expenses. The men !
IN the service must be paid Tor thtfr
labor taxes must be paid; we must
pay for necessary materials. and We
are not now getting enough money |
20 do these things, saying nothing
about interest and dividends.
Our operations on the Detroit city |
tines for the month OF October we're |
on the basis Of an annual dehcit sx-
~ fare In effect prior 20 August |
1913 are insufficient % yield. under !
present conditions. a return upon the /
capital invested, and II IL certain |
these conditions cannot be improved /
Immediately. But % be as helpful e
possible, We viii continue ga effect
worK auEmen's tickets morning and
for the time being ven-for-a-qua
ter tickets now In the hands % The
public Ard OF course. being contrac-
italy bound N do -, Will continue
IN effect The eight for-a-quarter and
the ziv-for-s quarter tickets on The
Detroit railway lines And We Will
also continue ln effect = system =
universal MISREPRESENTATION from
the Detroit railway lines 10 the ether
lines. and vice versa, being given on
The payment ~ n Eve cent fETe a.
was The case prior % August. 1913
These changes become affective TO-
morrow morning. Dec. z. 1917. The
new rates will make difference ~
only a fraction OF a cent 20 "a sser-
rera ant ~ IL upon that Fraction ~