Indiana daily times., 1921-04-15
NEW RATE IN
EFFECT SUNDAY
AT MIDNIGHT

Al MiDNIGHI
Continued From Page OneO
able to accept an estimate of 10 per cent
cash passengers under the proposal of
Scent fare with twenty tickets for 81.
If, instead Of only 10 per cent paying
cash, il should be proven that % per
cent OF the revenue passengers would be
cash patrons, then the need for further
relief would not be pressing.
"On the other hand, if it should be
proven that only 10 per cent pay cash,
it might prove to be necessary to find
other revenue of relief in addition to
that proposed by petitioner.
THEY TAKE THE ONLY
WAY TO FIND OUT.
There is only one way in which exact
data can be had, and that can be OBJ
tanned very quickly by putting into ef
feet the Scent cash fare with twenty
tickets for 81 and continuing the 1-ceIt
charge for transfers Within period OF
thirty days the commission will have
actual, rather than opinion, evidence for
Its guidance. The thirty day period
would not be OF such length as materially
% anect adversely the hnanclaI future OF
tie company. The commission. having
disposed Of other issues in this order,
IS of the opinion that at the expiration
OF said period hearings should be limited
practically to a showing Of operations as
to percentage Of the application Of said
fares, and that therefore the petitioner
would not be subjected TO delay.
The commission is further of the Opin-
Ion, however, that if before the expira-
ton Of the thirty days, it should be dem
onstrated beyond any doubt that the
realization from cash fares would be SO
small as to make the operation Of said
fare nOnenective as an emergency relief,
the commission may, on its own initiative
proceed TO make such notifications as
are necessary.
1.-THE commission is loath at this time
70 AHr I
cent transfer charge. A / cent charge
for transfers, which has the effect OF
making 1t unnecessary to increase the
basic fare, is amply justified on the
ground that only a small percentage Of
the passengers would have to pay
fare that otherwise all would have TO
pay and that theoretically there is an
extra service However, when this 1 cent
limitation has been reached. there arises
questions Of Inequalities which cause the
commission to ascertain definitely the
need OF relief further than the introduc-
ton of the cent fare with twenty tick
cts for ST."
FINDS EMERGENCY
ANOT COMPANY'S FAULT.
In a list of findings the commission
ftates that It finds an emergency exists
Sthrough no fault Of the company but
because Of increased taxes, increased
freight rates on coal and the operation
OF a greater number Of cars to give
better service.
The commissioners review in their or
der the list Of taxes to be paid by the
company. The taxes IN 1920 amounted
10 S4S3, II and the estimated taxes for
1921 total S491, ,152. .43. These figures are
estimated on tax rate Of 50 40 on each
500 Of taxable property for each year.
OF these totals the taxes paid to the
State, city, county and township amount
to S434, $3.50 in 1920 and S+47, ,9S1.36 in
1921 In this connection the commits
sioners express the opinion that the
local tax estimate is somewhat excessive.
In addition to taxes the commission
lists fixed charges amounting TO S1.OS5. -
oO45O, divided in dividends of $500 900: /:
interest of S633, ,00490, and payments Of
principal, S152OOO.
DISAGREES WITH AsHBY'S
DIVIDEND OPINION.
In this connection the commissioners
recall the contention Of Samuel Ashby.
corporation counsel for the city Of In
dianapolis, that the company should not
be permitted to pay dividends The com
missioners have this to say on the point
The commission can not agree with
counsel that dividends are to be elm
mated. The commission is clear in its
opinion that credit van not be main
tained by defaulting on or repudiating
legitimate obligations. 1t is equally con-
WINGED that under its financial reorcaui-
cation OF the property in which $3.50 900,
or approximately 80 per cent Of the Sc
curities were voluntarily retired with
Fixed charges further reduced by elimina-
uon for the time of sinking fund de-
mands, the Indianapolis Street Railway
preferred stock represents an equity.
1t is automatic that patrons served
have the right to demand the lowest fare
possible that will cover the cost of
rendering the service, and this is par
t1cularIy pertinent 10 the cOnsiderat ton
OF this matter which involves departure
from cOntractual obligations. But there
ts also an equal obligation that is present
IN a consideration Of maintaining the
credit or an institution, which Is the real
emergency issue in this Instance. That
is, that the public, in times Of an en-
ergency, have no right TO the use Of
said property except by the payment of
rates which VIII afford the company
revenue to meet its legitimate financial
obligations, provided they are reasonable
and contracted in and for performance
OF public service, and when said finan-
cial obligations fail within a rea asonable
return on the value of the property
placed to said public service.
PUBLIC DEMANDS
CALL FOR CAPITAL.
''The real issue here, so far as the
question Of dividends is concerned is
the effect of payment or nonpsyment on
dends on this stock be within a Z Der
cent return on the value OF the proper
ty, its credit would not be maintained
By denial of its claim. Both the city
and the commission are unfavorably i'm
pressed by the high cost Of generating
electrical energy at the West Washing
ton street power plant. The city very
correctly is demanding new power ar
rangements which will result in econo-
mics and service efficiencies and that
win favorably effect fares. It also is
demanding extensions of lines to keep
pace with the city's growth, more and
better cars, improved street and service
conditions. All of these public demands,
designed to serve the public interest. call
for capital, and a great deal of it.
The commission would again point to
the existing hard fact that must be faced
by the public if it would be served. that
capital is now the most sought commodity
IN the world. Even nations are bidding
almost franticaIly fer II with unprece,
AentecSfaterest rates. VIII IL be attracted