Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-06-23
SAYS CAR FARE
HIKE DOES NOT
CUT REVENUES
Boston Engineer Discusses
Street Railway and Other
Utility Problems.
PATRONAGE COMES BACK

The theory that increasing the
rates Of street railway companies de-
creases the number of passengers to
such an extent that the total receipts
are less than under the smaller fare,
is being proved false in a number CT
cities where the cost Of car rides was
made greater during and since the
war period, according to Leonard
Metcalf of Bostca, noted as one Of
the country's best utility engineers.
who is in the city inspecting the
properties of the Indianapolis Water
Company.
indianapolis heard much 10 the effect
that increasing fares decreases total re-
ceipts from the city administration dur
ing the recent juggling Of rates Of the
indianapolis Street Railway Company.
Even officials of the company appeared,
after the 6cent fare had failed TO bring
In what they expected IN the way of in
creased revenues, to agree with Corpora
tion Counsel Samuel AEhby. The city's
chief attorney has contended FOR more
than a year that every place where fares
receipts did not go up accordingly.
SAYS DISCRETION
ONLY TEMPORARY.
The latter statement. dr Metcalf said,
is turning out to be contrary to the
facts. People at frst refused to ride the
cars when they had to pay the higher
fares, but they gradually have been com
ing back to use the transportation util-
/ tiles until today the patronage Is about
back TO normal
This is exactly what has happened In
my home city OF Boston" said Mr.. Met
calf. Boston has been pointed out by
those who agree with Corporation Coun-
sci Ashby's theory, as the horrible ex
ample for many months. Street car fares
in the Massachusetts, city were advanced
from Q TO Z, then s, Q and 10 cents, where
they now stand. "It was said that these
increases would defeat their own end.
that there would be smaller end smaller
use OF the cars, but people today are rid
ing again. While patrons desert the lines
/ temporarily. it usually turns out shnt
they come right back IN a short wAlls.
Because Of rate increases. which win
average from 30 10 40 per cent the Ma
ton over. a better feeling between utili,
7 TIES stare anu cry regulatory DOules
and the puLlic. and the fact that II has
been possible for many service corpora
tions TO start marketing securities to 10
cal private capital, II not to banking in
terests, once more the general utility Ftt-
uation throughout the United States is
much brighter than q year ago" Mr. Met
calf said.
UTILITIES
SECURITIES.
Utilities stu are having difficulty in
selling securitieS, excepting where they
can find a local demand. Some OF the
corporations have been successful IN
peddling out their stocks and bonds to
local parties who know of their situation
when 1T was impossible to interest the
banking fraternity"
He said the traction and the electric
lighting companies probably have been
the most favored in the matter OF rate
increases. Although water companies
have been the last on the list TO secure
relief from inadequate rates their general
nation wide condition Is better than It
was year ago.
Public service con- missions in general
have recognized that water works have
Continued on Page FOur.)