The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-01
Public Discussion
STREET CAR FARE.


To The News Scimltar:
Since Mayor Paine has locked horns
with the local traction company and
says he will fight to finish to pre-
vent the imposition of 7,cent fare
upon Its patrons, we are likely to have
some lively scrapping before the matter
Is definitely settled In taking his po.
sltion the mayor will be sustained by
w per cent of the travelling public, and
II the matter is submitted to vote
the raise In fare would be overwhelm-
ingly defeated The 5-cent fare Is
Il, a return should be made to It. But
Is II possible?
In the writer's opinion. II Is not pos
sible II the street railway remains a
private corporation and is operated for
profit Regardless of whether the cor
POI alton Is now over capitalized, the
fact Is that ii has certain fixed charges
to meet. The principal fixed charges
are taxes, interest on bonded indebted
ness, depreciation and insurance. To
stay out Of the hands of receivers it
was absolutely essential that the cor
poration earn from its operations an in
come sufficiently large to enable 1t to
meet its fixed charges. This Is true
not only of a street railway company
but of any corporation, II every pri-
vaje corporation in this city had been
forced TO sell its goods at the prices
prevailing In 1914, regardless of-the ad-
vance In prices, not a single one of
them would have escaped n receiver
ship and most of them would have been
horelessly hankrupted long before now.
The simple fact is that the street
railway company, owing to the advance
in cost Of labor and materials has not
been able to earn from operation sui
ficient income to meet its fixed charges.
The Increase in fare to 6 cents helped
some, for this gave the company a 20
per cent increase in gross income, as
Stunning that everybody who previously
paid cents 10 ride continued to ride
az the Increased fare, Lots of people,
however, have improved their health in
walking the shorter distances and thou
sands more have been given a lift by
passing automobiles,
The % per cent increase In gross in
come, however, has not been sufficient
TO meet the advancing costs of labor
and materials, Take steel rails. copper
wire, coal for examples These have
doubled, even trehled In price. A new
car costs three times the 1914 price.
Motormen aud conductors, shopmen and
all other classes Of labor are getting
much larger wages than in 1874 |
would like to ask Mayor Paine or any
other business man, how he would like
TO operate a business in which the re-
turns were fixed but IN winch the costs
OF operation We're constantly ana con-
llnuouSy increasing
The street railway Is up against Just
Such an economic problem IL must
elther nave increased lates or II mus,
continue To 20 on losing money uul"
the costs OF opel auon decilne 10 the
polnt where II can AG'un make money
II Mayor taihe' OF, tue citN, attorney
or anyone else, '"uiu deiIhleIy forecast
thAt time, II II were not 100 lar III tnt
future. me traction company n'Rht
Nnpti ~ ana tdlIiN n' dsheu 10 walt "r
Father me bohdho'dels. IN whose inter
EST $, the company is now being pper
ated hy RECEIVERS, nlGnl ne asked 10
wait IN the ahsehN' OF sue" lL!lot lan,
lni"rMAuoh Is II giving lhy owners OF
the street car conpauN fair on sftIafa
deal 20 attempt to Umur! Them to
Operate at a loss, supply because ih"H
tlv pubic utllly aud 81 necessity
must appeal to Ia, publ, Tor relief.
lu ALL Inv controversy thHl took p@C'
oN,r the 6-veut fare and that now
promises 90 rage over the '-teht iaIe, |
have Vet To ser ur hear "a single discus
Sluu of this problem upon It's merits,
lur ulviit of the problem lies ia the
tact lUAt any business conducted tor
profit must make "A ptoilt or perish. /,
the street railway company IL not to be
given an increase i'm fares then the city
ought 10 otItI 10 huS u %nu "p''"'S II
for the service Of the public.
But II the city bought II at TAR
Valuations Il too would have these same
fixed charges OF interest on bonded IN
dehtedUess, repairs. d"pTtclatloh anu
assurance. II would also nave TO meet