The Washington times., 1921-07-06
NICKEL RIDE
IN West IS
PROFITABLE
"City" Cars in San Francisco
Give Big Returns, Newman
Retorts to Traction Lines.
By MAJ. OLIVER p. NEWMAN,
Formerly President, Board of Commrs-
sfoners. District of CoIumbfa.

sfoners. District of CoIumbia.
Were you ever in San Francisco?
II not, it's worth a trip to the
Golden Gate just to see the muni'
cipal street cars there.
Market street Is the main street
and it has four car lines on it. OF
course, that's good many, but when
the town finally got mad, seven OF
eight years ago, because the priv
ately-owned street railway wouldn',
give necessary service, the town
went into the bns;ness. itself. The
old company wouldn't sell, so the
town said:
CAN right; Wen build our owr
lines"
And they did.
THEY PREFER MUNICIPAL CARS
Today, IL you stand along that four
track way and watch the people you
will see them waiting for the munic-
ipal cars, in preference to the cars
OF the private company. Why7
Because the keynote of everybody
connected with the municipal sys-
tenn, from general manager to con-
ductor. is service.
y And service is what the people OF
San Francisco get More of II and
better In quality than in most places,
All right; what do they pay for
It?
They pay a nickel a ride. And It's
worthy of note In passing, that San
Francisco Is one OF the few cities
left where a nickel still buys street
car ride.
What I'm going TO tell you next Is
about the most important thing that
you yill ever hear about street car
service. anywhere any time. And II
is especially significant when you
consider the Washington problem
Listen:
The San Francisco municipal street
railway system has been immensely
prosperous!
The reason I put an exclamation
point after that Ia because so mans
people always say municipality
owned and operated utility is not a
financial success.
TRACTION LIE Is DowNED.
San Francisco conclusively dis
proves this statement In San Fran
cisco the municipality owned and
operated street car lines are a huge
success. U am going toAquote from
the official, sworn statements of the
city authorities)
For the dve-year period from 1915
to 1920 the revenues Of the San Fran
cisco municipal street car lines were
S12,
During the same period operating
costs we're ss,1ee,s51.b4, leaving a net
income of "a 99275
In other words, net profits were
practically one-third of the total
money collected from passengers-and
all that on a scent fare.
Now listen to this, too:
San Francisco took that $4,000, 900
profit and spent s1,200,0o0 on exten-
sions and betterments-bui!d new
tracks, replacing and improving
equipment, and doing everything
possible to give better service to the
folks of the town.
PAID OFF BONDS.
Then IL took $500, 300 and paid OF
that amount of it's bonds.
That fact is highly Significant, for
IL means that the municipal street.
car system is reducing its capitalixe-
ton Cor what corresponds to capitali-
zation In a privately owned company
instead Of increasing II, which Is the
constant practice of public utilities
when in private hands.
Just stop and consider. now, IL you
ever heard OF public utility that
saved up a cash surplus, ana, when
its bonds fell due, paid them or and
burned them up, thereby get lE 20
forever OF the interest charges 90
them.
The orthodox system f. TO issu ,
new bonds. exchange them for the
old ones and keep right on paying
the interest. Any privately owned
public utility guilty OF reducing
capitalization would undoubtedly lose