The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-07-08

d Wishes May b. Le1rned.
Only the scent street car fare pc
htion Of the Til City Railway COM
pany win be acted upon immed-.
lately BY the Illinois state public
utilities commission, a. the COM
mission in Springfield Wednesday
granted the request Of City Attor-
ney James N. Johnston Of Moline to
delay action on the l0-cent fare pc
titiou for 80 days, giving time for
city officials to feel out public SEN
timent on the zone man" car.
Mayor Harry NJ. Schriver and
City Attorney J. K. Scott repre-
scented this city at the hearing be-
fore the commission Wednesday.
The street car company Is asking
the scent fare effective July 10.
and 1t seems to be the opinion Of
city officials that the rate will be
grantd. ..
The 10-cent rate 10 asked by the
company effective Sept. /. It was
to provide for an investigationD Of
this rate that City Attorney John
ston Of Moline asked delay Of 30
days.
Seek Sentiment.
The time is to be utilized in feel
ing out sentiment of the public on
the lone man" car system which
may be operated at a lower rate of
fare Nothing was said by the city
officials as to what effect favorable
sentiment to the zone man. car
would have on the company's pro-
posal for a 10-cent rate affective
Sept. l.
1t is known that the street car
company officials have discussed
the zone man" car proposition for
long time, and that officials of the
company are working to get the
system accepted.
City Not Committed.
On his return today the mayor
said that he cid not commit the
city of Rock Island as being in
favor Of the lone man. car, but
supplemented City Attorney John
ston's motion for delay on the 10
cent fare proposition in way that
would convey to the commission
the impression that he would
want to make canvass Of public
opinion in as direct way as pos
sible before coming out for the new
system.
Company Claims Deficits.
In presenting its case for an g.
cent fare the company set forth
figures tenAing to show that there
would be a big deficit unless the
rate was granted, and that even
with the estimated additional rev.
enue the returns would not allow
the company an s per cent return
on the investment Of s2.900,000, as
fixed by the commission.
The company sets forth that a
minimum return of $1,32S,524 will
be necessary this year and that al
7-cent rate the return will only be
$1,197,657, or a deficit of $140,S67
In addition it is set forth that there
was deficit of $33,350 below the
II per cent return on the $4,000, 00(
investment since the .7-cent rate
went into effect, and that additions,
wages of trainmen for June and II
days in July, due to award of the
wage arbitration board would
amount to 1889. These two items
total $40,739, or making a tota
deficit set at $lS1,606. Estimated
additional revenue from an Seem
fare is placed at $9S,6SS, which
would mean a remaining deficit o.
$82,918 with an Scent fare in effect
Allowed Higher Return.
| The deficit figures are based OF
the new return of s per cent tina
the commission has allowed thu
company on its investment. The ole
rate OF return was per cent, ant
the additional l per cent return i!
claimed to have been allowed OF
account of higher interest rates OF
money the company borrows. Thu
company sets forth that even the
per cent return on the investmen
was not realized under the Teen
fare, setting forth that the return
was 5.S5 per cent.
| Ask Davenport 10 Cents.
b It has been officially stated tina
the company will ask 10 cent far
| in Davenport, and while compan.
officials authorized to speak on tn
matter were out Of the city today
rumors were current that the Dav
export city council would probabl,
be ignored in the attempt to. ge
1.-THE 7-cent rate boosted to a 10-cen
| fare.
i City officials Of Rock Island wer
discussing today rumor that tn
street car company officials ha'
found that the Iowa state law doe
: not grant city councils right to Sc
street car fares, although electri
light and other utility rates are al
! lowed to be fixed by city councils
The rumor was that the street ca
company would go before a distric
Judge with its rate request, alleges
as a way to leave the city council
Of Davenport out Of the setting Q
| q specific rate. A referendum il
Davenport was also rumore'
would have no bearing in the cas-
under the alleged new interpreta
ton OF the Iowa state law.