The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-16
COSTS OFF, WAGES UP
ON CITY OWNED LINE.
Boston Officials Say Only Pub
lie Ownership Can Save
It's System.
HOPE IN CLEVELAND PLAN
Ohio Officials Point It's Amaz-
ing Success Due to Public
Confidence.

WASHINGTON. Aug. 15.-Etched against
the dark background Of the Massachu'
sets electric railways crisis; a first hand
report on Cleveland'e experience with IL
now famous street car plan stood on
WILDLY to-day before the Federal Elec
trio Railways Commission.
For two hours Chairman Frederick ]
Macleod Of the Massachusetts, Public
Service Commission had spoken of the
causes leading to the abandonment Of
lines in that State to a 10 cent na,
rate carfare in Boston and elsewhere
and to the calling of q special session OF
the Legislature TO deal with the emer-
gency. There was little hope, ne said
that even at the high rates imposed the
afflicted companies would be self-sup-
porting. and at least one line. the Bay
State. apparently had reached the poin,
of saturation' where increased fares
could no longer help II. Public owner
ship. he said, M, ht well be forced upon
the State to escape complete destruction
OF its local transportation systems.
Mr.. Macleod gave place TO Fielder
Sanders city commissioner of Cleveland
for street railways. and the picture he
drew was startling by contrast. The
Cleveland plan, he said, has worked out
so successfully that recently fares went
down per cent almost simultaneously
with rs per cent increase In wages to
all employees of the company operating
the roads. The plant, he said, was now
rated as the finest surface system in ths
country, having been completely re-
habilitated since the plan became ef-
fective.
While features OF the plan itself &C.
counted In part for this condition, Mr.
CatA he 4.
showing made was popular support The
people of Cleveland have confidence In
the plan. he said, and are all working ia
make it a success. Feeling secure tina,
what they pay goes into service. they
are ready to pay any necessary rate OF
fare and no diminutation of traffic has
followed increases.
The Cleveland Commissioner cited the
recent strike as Indicating the necessity
of an amendment of the plan to give
the city control of wage as well as rate
fixing. When the demands OF the mer
were presented, he said, the City Coun
ell made additional operating allow.
ances to the company to cover the In
crease. but had not the power TO com.
pei the company to pay the advanced
wage rates.
Although thus protected, he said, tn,
| company refused to pay the advanced
scale. and made the strike the vehicle
for n demand on the part of the security
holders for a return OF per cent. in
stead of per cent. on their investment
The two day strike which followed, h,
said, cost the company nothing. but cos
the riding public $4,000, and the city
was powerless.
So long as the investment and inter
est rate were protected from hazard
he insisted, the city should control tn,
wage schedule to prevent strikes.
Explaining what was happening II
| Massachusetts,, Commissioner McLeot
said II was obvious that fare rate.
| must recede instead OF advance II tn,
net earnings of the affected companie:
| were to go up. Companies that had re-
ceived no increased rate. he said, wer,
| in better situation.
1T may well be-" he said, that thu
only solution Is through public owner,
ship. 1t Is doubtful that under present
economic conditions the street car ser
vice can be continued to be supported
by private capital"
Even under public ownership. how
ever, he said, the people must learn that
they could receive only the service fol
which thy paid