Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-07-18
COMP ANY SAYS
FARE DECISION
BASED ON 1918
In Letters to City Officials, Trac-
ton Concern Gives Its Views
Of Ruling.

The Tri-City Railway company
today sent a communication 70
city officials of Rock Island, Mo-
line and East Moline. giving its
views of the ruling of the Illinois
public utilities commission, when
denied the concern the right to in
crease its fares.
In part the letter says:
THE company did not ask relief
for the entire year 1918, but based
its request for an increase in fares
on the results of operations of the
last six months of 1918 and the first
portion of the year 1919, and its de-
sire to increase the wages of its
employees. 1t recognized that the
commission could not make a rate
of faro which would be retroactive
and give relief for the first six
months of 1918. The commission
takes no account of the fact that
the traffic during the last six
months of the year dropped off
greatly due to the cessation of war
work in this vicinity, nor to the
present wage scale.
The commission refused to take
cognizance of the present wage
scale only because it objected to
the form of the contract, but it is
quite obvious that the company
cannot pay a wage which its in
come will not permit Any higher
wage will result in the necessity OF
reducing the service.
THE solution of the matter is
either increased fares, greatly re-
duced service or reduced wages,
and the company believes that
when these facts are clearly un-
derstood that there will be no OBJ
lection to a rate of fare which
will permit a reasonable return on
a reasonable value of the property.
1t is vitality important, however,
not only to the company, but to the
community and the employees, that
a speedy determination of the mat
ter be made.
Valuation Low.
The company believes that the
commissions valuation of 81
100000 is unduly low, as it is OBJ
tanned by determining the original
investment in only the property of
the company which the commits
sion finds and useful at the pres
ent time, the valuation excluding
large portions of Watch Tower
park, Campbell's island and prop
erty which the company had to ac-
quire in order to get certain rights
of way This valuation of $500, 900
is 100000 less than the money ac-
fsV1 w fa1 IN hn
Gst ermined by the commissions
egineers and auditors. The actual
investment found by the commits
sion's engineers is approximately
SO, 500, 900.
The commission has apparently
entirely excluded any item for
going value, and cites it's opinions
in other cases as to this item.
THE company believes that the
commissions allowance for depre-
citation is entirely inadequate.
The commission states that much
of the depreciation can be taken
care of through maintenance. 1t
is obvious that this cannot be done
in the case of track in paved
streets, while it is entirely possible
for steam roads. Such items as ties
and grading much depreciate with
the entire track structure over the
period of life of the track. The
cost of replacing ties in paved
streets, for example, would be alb
solutely prohibitive.
The commission states that the
present condition of the property
is excellent. 1t has been the aim
of the company in the past to keep
its property in excellent condition,
and to render the best possible
service, and believes it's service is
as good, IL not better, than that
rendered in any other cities Of cor
responding size in the country. Due
to the decrease in traffic and very