New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-28
Toledo Traction
Dispute Nears
Novel Solution
Community Ownership Un-
der 25-Year Franchise Is
Plan Suggested

The City of Toledo proposes TO solve
its rapid transit problem through the
novel plan of community ownership
This is indicated by details of the
agreement which has just been reached
between that city's apecial traction
committee and the Toledo Railways d
Light Company. The agreement as
drawn up contemplates the creation oil
an entirely new relation between a
public utility and a city, as it emoodies
various original ideas. These include
principally the creation Of a new com
many. TO be known as the Community
Traction Company, which will operate
under twenty-hve-yea franchise, pro-
viding that at the end Of five years
the traction property may be purchased
or leased by the city. The new ordi-
nance will be voted upon by the eitl-
Gems of Toledo at a referendum.
The Plan as set forth by Henry L.
Doherty, who has taken leading part
in framing the agreement, provides Tor
a separation of the street railway com
pany from the electric and gas proper
ties of the Toledo Railways e. Light
Company. The traction properties are
20 be controlled by corporation when
is to be called the Community Traction
Company. the capital stock of which Is
TO equal the value OF the street railway
properties as determined by the VAIN,
alton board. This stock will be held
by five trustees TO be named IN the
final ordinance, and the stock VIII DC
voted by them. In return Tor us equity
in the Community Traction company
the Toledo Railways d Light Company
is TO receive trust certificates.
The stock Of the Community Traction
Company will be sold TO the public IN
SO shares, and may be bought by any
one upon the instelment plan. 1t Is
further provided that this stock must
always yield an income of g per cent,
unless such yield cannot be obtained
without increasing the fare TO more
than cents.
II is provided that the cash fare on the
Community Traction Company's lines
may never bc in excess OF, or less tnan
5 cents. With the cash fare remaining
stationary, any changes in fare Will be
made by adjusting the number OF tick
cts which may be purchased for 20
cents. and by regulating the Issuance
Of transfers. The highest fare eontem-
plated in the ordinance is TO be a D
cent fare with a free transfer TINS
maximum fare is graduated down to
the minimum rate, which IS scent
cash fare, ten tickets for 70 cents, l
cent charge for transfer with ticket
fare, and no rebate. q rate OF rare, 10
begin with, will be established by the
final ordinance, and any future modl-
fcations of the rate will depend upon
the action Of the city.
The rate of fare established when
the ordinance goes into effect is TO con-
tinue for six months, or until the com
panv shall have accumulated a fund
Of $4,000. after deducting taxes, al
lowances, dividends and various other
payments. That fund will he known
as the "equalizing fund" The min
imum level Of this fund will be $780,
600 and the maximum S2OO.OOO when
the fund reaches the minimum level
Tie company may put into effect the
reyt higher rate of fare, but if the
council rejects the increased fare the
matter must be arbitrated. When the
fund reaches the maximum level OF
5000 900 all surplus is to be deposited
In the amortization fund, or the City
Council may decrease the rate OF fare