Capital journal. (Salem, Or.) 1919-1980, 1921-12-13
Consider Car Fare

tContinued from page one)
the proposal to raise street car
fares in Salem.
Yelling we'll the issues as they
affect the common strap-hanger
was a mass of technicalities, few
Iof which were understood by the
score of townspeople who crowded
into the small room in the state
house. 81
Various exhibits and "revis-
ions" were introduced by the
Southern Pacific company's repre-
sentatives. headed by Ben Dey,
general counsel for the companys -
On its lines here, according to 4
statement submitted, the compan4
has suffered heavy, consistent.
losses. In 1917, according to the
statement, s36.5S2.ss was the deEy
ficit; in 1918 1t was S47,669.B6:
In 1919, 39,85s.75; In 1920, $685. tfy
s27,40, and during the first six
months Of 1921, II was s16,5S1.S4.
This deficit, 1t was explained, rep
resents the difference between a
return Of seven per cent on the In
yestment, and the railways oper-
ating income.
Take as Whole, Plea.
AT this hearing the street car
lines in Salem ought not to be
considered as unit, but should
be examined in connection with
the company's main line City At
torney Smith declared In his OPEN
Ing statement "This matter is of
vital Importance to Salem. TIE
city believes that, II the fare is
raised from five to eight cents, as
the company appears to wish,
there would be such a business de-
crease on the lines that the net
revenues of the company would
not be increased" Mr.. Smith add
ed that the situations In larger
cities, where fares have been
raised, are not comparable to Sas
lem because the business handled
in the larger cities is far more ex-
tensive.
"If the raise is granted" Mr..
Smith concluded, there will be
marked tendency on the part of
citizens to use other means OF con-
veyance. That is not a threat, bat
statement OF fact, for a change
would be absolutely necessary. We
ask that the company's case be
probed thoroughly"
Adams Is Questioned.
Through series of interrogA-
tions directed by Commissioners
Fred Williams and Fred Buchtel
at Auditor Adams, 1t became ap-
parent that the commission looked
askance upon certain items listed
by the company in Its exhibits.
Mr.. Adams was asked II the
Southern Pacific company does not
file with the interstate commerce
commission a statement as to its
financial conditions. II appeared
the Southern Pacific company
does.
Are the Southern Pacific COM
pany's expenses included in the re-
port 10 the interstate commerce
commisfson?" Chairman Williams
asked.
Mr.. Adams answered that such
a report--a report covering the
entire holdings of the company
Is required.
DO you provide for deprecia-
tion in that report?"
Mr.. Adams replied that only
equipment depreciation was listed.
'If depreciation of the whole
Southern Pacific system is listed
in the interstate commerce COM
mission, why do you wish to enter
that item here?" was the sub
stance Of a question next put by
Mr.. Buchtel.
I'VE must consider the local
case from al angles" Mr.. Adams
answered.
representatives of the Southern
Pacific company who were pres
ent at the hearing this morning
were Ben Dey, general counsel; A.
Hampton, associate counsel; ].
ormanday, assistant passenger
agent, and II. L. Aehibaid, assist
ant engineer. all of Portland; Rob-
ert Adams, auditor, Of San Fran
cisco. and T. L. Billingsley. local !
superintendent.