Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-07-18
SAYS TRACTION
CONCERN EARNS
st PER CENT
Public Utilities Commission Comes
to Conclusion That Company
is Making Enough.

company an increased fare, the
Illinois public utilities commission
came to the conclusion that the
concern is earning 81 per cent, a
copy Of the decision received in
Rock Island today shows. Some
of the facts disclosed by the de-
cision are as follows:
Valuation allowed by commits
sion. 81, 100000.
Rate of depreciation allowed by
commission. 2.07 per cent.
Return on commission's valua-
ton for the entire year 1918. with
an allowance Of 2.07 per cent for
depreciation, and with a Accent
minimum wage scale, go per
cent.
Return on commissions yalua-
ton Of last six months of 1918,
with Accent maximum wage scale,
and S07 per cent allowance for de-
probation, 4 per cent.
Return on commissions valus-
zion. year 1918, had present 5O-cent
maximum wage scale been in eff
feet, $50 per cent.
Return on commissions valua-
ton, year ending June 30, 1919, had
present 50-cent maximum wage
scale been in effect. $50 per cent.
In addition to chopping of a
million dollars from the COM
pany's evaluation figures, the utiIi-
ties commission gave a hot reply
TO the railways request that the
wage trouble OF between the cor
poration and the men be consider
ed in making the decision on the
fare petition.
This commission" says the de-
cision. "is established to regulate
public utility companies, not to
settle disputes between employer
land employee.
MA wage agreement conditioned
upSR future action of this COM
miss4Ap is manifestIy against pub
lie policy, and undertakes to place
upon this commission the burden
OF deciding questions and adjust
ing controversies which are wholly
outside the scope of the powers
conferred by statute upon the COM
mission"
The railway company filed a
supplemental petition with the
commission about the time a strike
of street car employees was immin
ent in the tri-cities. In that petit
ton mention was made of a wage
agreement dependent on the fare
increase granted by the commits
sion. Early in June. before the
strike was threatened, the COM
pany had asked the commission to
defer it's decision until the wage
scale could be adjusted. The wage
scale was temporarily adjusted a
week after the suppremeltan petit
ton was filed, but the entire wage
problem is again mp in the air AMI
may threaten trouble at any time.
Calls II sBaFgaining.-
The commission declares that it
must determine the amount pre-
scribed for operating expenses. but
says that amount must be found
from experience and from fixed
factors. ITO permit the parties to
speculate upon the action of the
commission" states the report,
and to make their bargains con-
tingent upon the order to be en-
tered by the commission would be
to QEsrthrow every principle which
SHOULD control the commission in
fine exercise OF its regulatory au-
thority.
The presentation OF this con
tract to the commission is an ap 4
peal for the exercise of an author
ity which under the law the COM
mission does not possess.
When wage agreements which
do not speculate upon the action
of the commission are presented,
they will receive. the consideration
TO which they are entitled"
The commission reduced the valu-
alton of the Tri-City Railway COM
pany more than 100000 on the
following grounds
1. Unimproved land north of
Watch Tower park should be ex-
cluded in vaIuing the property en-
ployed in public service.
?. Unimproved portion of Camp
bells island can not be included in
valuing properties for rate-hxing
purposes.
5. Land at Second avenue and
Twenty street. Rock Island, !
used by the Peoples Power com
.pany. must be excluded.
NJ. Ellison property at Seventh |
av64NIe and Twenty-seventh street, |
RockTsland, must be excluded be- |
cause it is not necessary to the OPAL
Grafton of the street car system.
5. A cottage at Fourth avenue |
and Thirty-ffth street. Moline, and |
Z lot at Fifteenth avenue and |
Twelfth street. East Moline. are ex- |
cluded for the same purpose.
g. An item of $4,000 paid as a |
forfeit to the city of East Moline is !
rejected as a valuation.
Z. The amount set aside by the |
company for cash working and ma
terials and materials is alleged to |
be SCI 900 too high.
S. The company's figures for de- /
probation are, it is alleged, much |
too high.
Rate Is Enough. [
The commission says that the |
requirement of a reasonable and t
lust rate of return on the property /
of the petitioners devoted to the |
public use will be satisfied If the
petitioners are permitted to earn a
return of approximately Z per cent |
upon the fair value of the property |
used in the public service"
If the increased wage scale. |
which was made effective Sept. 1,
1918. had been in effect during the
entire year of 1918 the companyi
would still have earned 81 per
cent, according to the commission
ers -