The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-04-17

Qurlng the sane pet30a tnefes was
taken" from the fund ss22,721.49. OF
which s162, 79s.oO was invested In U.
3. certificates and bonds. There is
balance in the depreciation fund OF
SaG8.091.01. This, with the sl6e.79e
Inv ested in U. S. bonds, would leave
the total amount held in reserve
$1,331,8S9.01. Whether or not this
money is actually on hand the city
has been unable to Ascertain. In
deed, it has been alleged that the
company frequently took rnopsy from
its depreciation fund and paid it to
it's stockholders on dividends. VII
"'All information received BY tho
city on the present worth OF the sys-
tenn was given by the officers Of the
Street Railway company. In all
proba bility, if the statements they
have filed with the mayor were SUBJ
jet TO- court revisw, ths claim made
as to the physical value Of tho prop
erty would be considerably reduced.
From an analysis II the statements
filed, 1t is apparent that a great deal
Of financial juggling has been done.
It would be better and safer for the
people OF this corporation Of the Du-
luth Street Railway company was out
Of the way and the city owned and
operated the, system.
IT. is the. opinion Of your COM
mittee, In order to get fair and
honest expression from the people,
that the city commissioners should
submit an alternative ordinance to-
the people, with the ordinance pro-
posen by the Street Railway COM
pany to amend its franchise to per-
NIT it to charge six cents fare.
The question of city ownership
was submitted to the people at the
last general municipal election and
was defeated. There was not suf-
fictent public interest created on &C.
count of the fact that the major
thought was given to the election of
commissioners. Now, that the people
are coming face to face with the
street railway problem. 1t is believed
that the advocates Of city ownership
can put up a case to tho people and
show that the present system can be
operated cheaper under public own
ershlp than under private owner
snip; that on account Of the fact
that no dividends will be necessary,
the system can be operated at q
profit to the people without being
compelled to increase the present
carrying charge.
The company claims that It cam
not borrow more money to make i'm.
| provements and extensions. until it
! can show greater earnings than
shown during 1919. Tho credit OF
the city will be sufficient to borrow
al! the money necessary to not only
rehabllitate the present system. but
to make needed extensions wherever
public service requires. A city owned
pant operated for services rather
tnan Tor profit, will give better sat,
lstaction to the people. We would
point with pride to the fact thai
through this period of high price,
Inc publicly owned gas and, waite,
plant OF the city of Duluth has beer
operated at a profit without increas.
ing either gas or water rates to TIL
consumers. What is true OF III
water and light. department wolli
also, we firmly believe, be true 81 :
city owned street railway system.
Inc war has taught labor new
lessons In democracy. It. is; not sat
1shed with the old order of things
Inc Old style Of public ownership Il
America has been of great beneft, l.
the people, and even to the workers
employed in publicly owned instttu
tlons' but under the old lines Of pub.
lie ownership there 10 a tendency te
build up a form OF, bureaucracy. Th,
new order is to democratize public
institutions, which ia to give labor q
voice in the management and share
OF the profits over ana .aboye th.
wages paid. In the city ownership o
the street railway plant Of Duluth
Is recommended that the employees
therein be given a. voice in the mar
asement. If the city should acouir
the system. it should be directed b,
BOARD Of managers. to consist OF
seven members, four of*whonn should
De appointed by the mayor, with TIL
ADVICE and consent of the city com
1hlssloners. and three to be electe
by the employees Of six months o
more service. The board Of man.
ayers should elect the operating man,