Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-03-22
CAR COMPANY
ASKS TO BASE
FARE ON COSTS
Plan Tried in Cleveland and
Elsewhere Laid Before
Board of Works.
MORE REVENUE NEED

The cost-of-service plan of regu-
lating street car fares in Indianapolis
is before the city administration to-
day.
The proposed plan, which has been
adopted in some other Cities, was dis
cussed before the board Of public
works and was taken under consid-
Grafton by the board.
DR.. Henry jameson, chairman of the
board Of directors of the Indianapolis
Street Railway Company, was present at
the board of works meeting, and ex-
planned and answered questions concern
ing the proposed plan.
Under the cost-of- service plan, DR.
Jameson explained, street car fares are
regulated by public bodies on the basis
of revenue obtained by the company and
the cost of operation, allowing a stable
margin of profit to the company.
If the traffic brings the company an
exceptional margin Of profit the street
car fare would be reduced. If the re-
turn is small the fare would be in
creased.
NEW CARS BEGIN
ARRIVING IN CITY.
The first of twenty five new street cars
purchased by the city arrived today
from Cincinnati. The cars will arrive
at about five each week. These, in ad.
dition to the ten remodeled cars now on
hand, will greatly relieve the car short
age, officials say. The new car is Ionges
and wider than those now In use and
has a much greater capacity. according
10 DR.. Jameson.
According TO DR.. Jameson the street
railway company is in such a financial
condition that 1t is impossible to make
improvements ordered by the city until
an Increase in revenue is forthcoming.
1t was suggested that members OF rhe
board of works and other city officials
confer with the public service commission
in an effort to have the cost-of- service
plan, or one similar, adopted, so that
funds can be raised for street railway
improvements
PLAN IN OPERATION
IN OTHER CITIES,
The cost-ofservice plan Is now I'm
operation In Cleveland, o., and several
other cities, according 10 DR.. Jameson.
II the system is adopted here Ii will
enable the street railway company to
roat loans for extensive improvements.
according to DR.. Jameson At present
there is no market for bonds of the com
pany and it is said to be impossible for
IL to raise funds through loans. How
ever, with an assured revenue equal to
the cost Of operation, It is believed that
there would be little trouble In raising
money through the sale of bonds or
loans
Dr. Jameson said today that improve
ments and extensions estimated nt
million dollars are needed here tohandle
tn present street car trabc and that
the street railway company could easily
spend 100000 In improvements.
COMPANY BARELY
BREAKING EVEN"
He also said that the company was
barely breaking even" under the pres
ent scent fare
We are not endeavoring to say what
the city should or should not do in re-
gard to this proposition" said Dr. jane
son, in discussing the situation today.
1t is imperative, however, that some
plan be adopted that will enable our
company to obtain revenue with which TO
make ordered improvements for the ben
eft Of the city. The street railway com
pany stands ready and eager at all times
to cooperate with city officials in every
way possible, and 1t is our desire to make
arrangements that will adequately care
Tor traffic conditions here. At present
we are unable to sell bonds or to foat
extensive loans, and 1t is up to the city
to make some arrangements to relieve
this condition. l understand that the
cost at service plan has been under con-
sideration of the mayor and other city
officials for some time"
INSIST ON TRAFFIC
Mark II. Miller of the board of works
said today that the board is insisting
that the street car company order at
once such additional material as Will be
needed to take care Of the traffic here
next winter in order to- avoid the deplor-
able street car conditions of the past
year.
1--WE appreciate the fact that the street
rilway company was unable to give bet
ter service this winter due to an inability
to get deliveries on cars, ordered" said
Mr.. Miller, land 1t is our desire to have
the company order such cars as will be
needed so that the equipment may be on
hand by next fall and thus avoid the
usual congestion and delay of traffic.
Among the improvements now contem-
plated by the street railway are exten-
stons of the Illinois street line, and with
the addition Of new cars and improve
ments at the power house. The esta D.
ushment Of system of substations for
the purpose Of Transforming high tension
power is also under consideration. DR..
Jameson explained that such improve
ments are necessary on account of the
weakened electric power now noted on
outlying lines.