Omaha daily bee., 1918-05-12
MAYOR.ELECT SMITH PLEDGES
TO FIGHT HIGHER STREET CAR
FARES; WAR ON BOOTLEGGER
Official, With Backing Of the
New City Administration, to
Stand for Scent Rides
on Street Cars.

Led by Ed P. Smith, who will be-
come mayor Monday morning, the
new city administration is committed
to a policy of resisting the application
of the Omaha & Council Bluffs Street
Railway company before the State
Railway commission, for authority to
increase street car fare in Omaha from
5 to 6 cents.
The question whether the state conf
mission has jurisdiction, over the reg
uiation of street railway rates, is a
mooted one and does not enter seri-
ously into the present controversy,
except as it may be brought up at a
hearing which will be held in Lincoln
after an answer has been filed to the
application.
In an interview as mayor-elect, Mr..
Smith stated he will resist this ap-
plication right from the start. He
went to Lincoln yesterday to learn
when a hearing will be held.
Rine Makes Explanation.
Explaining his statements that he
in ended to go to Lincoln as pri-
v.te citizens to oppose this (appll lca-
ton. City Attorney Rine said:
when I said that, | was speaking
as city attorney and meant that to go
as city attorney would be admitting
the jurisdiction of the State Railway
commission in matter of this kind,
whereas | dispute the right of the
commission to regulate street railway
affairs in Omaha.
"The jurisdiction of the Omaha city
council to regulate the street railway
company was vested by the state
Legislature. The city was granted this
power after the passage Of the act
dealing with the State Railway COM
mission"
In its application filed May 7 with
the state commission, the street rail-
way company alleged that by reason
of the war, its operating and MAIN
tenance expenses have been increased
within the present limits of Omaha,
approximately 100000 year, and the
total yearly increase in Omaha, in
Guiding an increase of pay ;.sked by
employees, would be $680,000. The
company claims that the total increase
of operating and maintenance cost
for its entire system, plus the advance
of wages asked by the men. would
be $o33,00O a year.
Says no Increase in Income.
notwithstanding the said increased
cost of operation and maintenance,
there has not been any material in
crease in the income of the company
arising from passenger travel" the
petition reads.
The company makes this further
claim: "If the fare was increased one
cent, so as to make 6-cent fare, where
a Scent fare is now charged, the in
creased revenue per year for pas
sengers carried in 1917, would pro-
duce an increased revenue of $516,658.
1t is estimated by experience that
such increased fare would diminish
the gross amount of travel by 5 per
cent, and from which it is but just to
estimate that the increased revnue on
the basis of 6-cent fare would not ex-
ceed $480,815."
The new city administration intends
to 90 into the financial affairs of the
street railway company with consider
able vigor and the prospect is that a
spirited legal battle will follow.
John L. Webster will occupy one
corner of the ring for the traction
company and it is possible that w. c.
Lambert, present corporation counsel,
will occupy another, with the new
mayor at his side. F. L. Weaver, new
city attorney, will be in the fray.