South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-06-30
HOW RECEIVERSHIP FOR HOG AND
HOMINY' LINES MIGHT BLESS US.

HOMlNY'' LINES MIGHT BLESS US.
TIE hog and hominy' octopus in its
poverty walls has again mounted the platform
renewing its fight against "tney bus; seeking this
time to gather within blood-sucking tentacles the
support fear business interests to cajoe
broDeat and buIyrag city council into submission
through threats OF a recelvership Reference is made
TO the recent publicity matter in the nature
of a letter given out. sent TO the bondholders.
But the public need not worry. A receivership for
the local traction lines blessing; though out
in disguise such things have happened Many
traction line run upon the rocks by private manage
ent because operations speculative rather than
utility service has gone under court receivership re-
suiting in the elimination water in its capital
ization and being brought down to business basis
thereafter gave service and made money.
Understand that thing that are interested in
and that South Bend needs be in is street
service for the city and individual holders of
vatered stocks or bonds investments lack Of
them have been burden. rather than benefit TO the
service that the city wants 1t is the same with the
..jitney" bus They here because the failure OF
service on part OF the traction interests forced
their arrival Nobody particular whether they
stay or 60 They are recognized merely an exped-
ent the poor mans way of getting to and from his
work or elsewhere when service is lacking.
The .jtney'' IS poor mans automobile. which he
can AFFORD only in instamens against his weather.
brother who owns his and lodges street car
patronage pleasure.
We are glad TO note the octopus recognizes.
at last the infringement upon its wanted monOpozed
patronage by these non-commercialized machines
like that Of its general manager,as we'll as it does
that OF the jtney. have said repeatedly that the
best automobile salesman in South Bend is the lack OF
service on the part of the Chicago. South Bend &
Northern Railway Co. It is lack of service
too Of very long standing; before the 'jney
bafor he prva te1v OWned an
Measure cars were so numerous The continued pro-
posal seems to be. to make the jitney-the
poor mans carbear the whole burden of elimination
since OF course wouldn't do to talk participation TO
the upper-crust considerable of which including the
traction manager himself among the bondholders
appealed to.
But phase 1t pass and just minute about
that appeal TO the merchants business interests to
get traction octopus" with their influence
on the council, etc. and help the poor thing We
refer again the possible Gssertediy possible re-
ownership. We have said before that it might be
blessing to city though coming in disguise The
result Of a recevershp would be the squeezing OF
IS 100000 OF watered stocks bonds the cap
italizaton of the corporaton-which means deprivnG
the owners "watered face values" for which they
never paid.-and the getting of the road some
what substantial basis where face values and actual
values have a correspondence.
Il wouldn't necessarily in fact wouldn't
that the traction lines would 90 of business In
reality it would more nearly putting them
into business That S5.OOO,OOO Of waered stocks and
bonds does represent investment in the business.
issues for speculative purposes the theory
being that the lesser paid
develop an earning capacity sufficient bring them
up par They represent Over-captaization without
il is the burden OF carrying these
jtney bus that rendering the companys issues
of further bonds marketable. With
squeezed by recelvership. and reorganization
volving that go the business
Improvement and earning power that will
vouch returns the business rather than
stock and bonds market. South might eventually
set real street service out of it.
such been the result in other cities Kalamazoo,
Battle Creek and Jackson Mich, good samples
old methods financing public utilities wiped
by receiverships and reorganization resulting in
utility value destroyed equipment 1eopardized.
The "water-tank" tapped; the representing
imitation permitted or the new
utility wanted money then. able 10 get it. Re-
ceiverships are as legal cure for in
defensble "hish finance" that South Bend
is the jitney high
that has amuck.
The pigs on inflated hominy from the
Indiana prison, whose ghosts have since kept
alive feeding on south Bend public are edging
up TO their last trough.