Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-04-13
CITY FOR CAR
FAREBASEDO ON
SERVICE COST
Petition Asks State Commits
sion for Change Owing
to High Prices.
WILL MEAN INCREASE

NC City VI AAAIdAdpO1ADJ III q pNtA-
tion filed with the public service COM
mission today, signed by Mayor
Charles w. Jewett and Corporation
Counsel Samuel Ashby, proposes to
abandon the city street car franchise
during the present emergency of
high prices to aid .he car company
The petition asks the commission to
adopt the service-At cost system of de-
;ermining the street car fares which
shall be charged In indianapolis.
This plan, which is in operation in
some other cities, provides that the scale
of street car fares shall vary as the
cost Of operating the lines increases or
decreases
1t has been fastered by officials of
| the indianapolis Street Railway Company
as the only method of solving the fnan-
| cial problems which confront the com
| pany. and Of enabling the company to
Taintain satisfactory street car service.
HEARING rs SET
FOR APRIL 22.
The commission set April % as tae date
for bearing on the petition of the city.
The city asks that the present fare Of
| cents, with transfers. be continued
and be not changed until hearing Is
| held by the commission.
| II is expected that an increased fare
| probably In the form of a I-cent charge
for transfers. viii result from the plan.
| after the company has horroI Ied $4,000
or more TO rehabIlitate the car system.
! Salient features of the new plan, pro-
posed by the city, are:
Mayor shall appoint n street rail
| way commissioner who shall be paid
salary Of s5C~s a month by the car
| company, and his Office expenses, to
4 see that the service -atcost plan is not
made basis for taking undue profts.
Valuation OF street car property for
rate making purposes hxed at SO.
100000. Commission, previous to ex-
tension OF, College avenue line and
other improvements, foundation valu
alton between Sl4,0o0.0o0 and
$4,000. coo
The street ear company shall main
rain surplus fund OF S150.oO0 and set
aside 20 per cent Of gross receipts
for maintenance, repairs and re-
newals.
GRANTED TO PER CENT
ON INVESTMENT.
Car company shall be allowed to
make between and Z per cent On
investment.
Interurhan companies should pay
street car company more money for
use Of tracks In city.
Service at-cost plan shall terminate
when company Is able TO maintain
surplus fund OF $4,000 for three
months, 5-eent fare.
Street car company has represented
that the uncertainty as TO when
present Scent fare shall be ordered
RaMA ~Eagf
financial credit
City states that in 1919 street car
cnmp0ny operated "a profit paid res-
sonahle return on property and put
100000 Of net income into construc-
tion work or additions and better
ment
City says present service is not all
that could be desired, but has been
improved.
The street car company last night an
uounced an increase in wages had been
granted to motormen and conductors OF
3 cents an hour. retroactive to April l.
II is estimated these increases will
amount 10 $4,000 a year. the new scale
ranging from 40 to 80 cents per hour.
The increased expenses would be in
cluded In the costs upon which the fare
would be based, under the service at-cost
petition
| WOULD ENCOURAGE
INCREASED EFFICIENCY.
The city suggests that maximum and
minimum rate OF return on the $4,000
900 valuation Of the car company be es-
! tahlished, rather than a Exed rate, so that
increased efficiency can be rewarded.
ITO apply the plan Of the minimum
and maximum rate of return let US as
sumo per cent as the minimum and
z per cent as the maximum return, with
out suggesting that either is the proper
rate" says the petition.
"The company should have the right to
earn the per cent, or maximum return
before there would be any reduction in the
utility rates, while on the other hand, the
company should not have the right TO
have the utility rates increased If 1t
earned per cent or the minimum rate.
THE higher the utility rate, the lower
the minimum and maximum rate Of re-
turn should be, and the lower the utility
rates, the higher the minimum and maxi
mum rate of return should be-"
INCREASED FARE
REDUCES RETURN.
Any increase in fare should automat-
icaliy reduce both the minimum and
maximum rate of return says the city s
petition, substantially as follows
FtpE, 10 VI my