The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-09-01
FINANCES OF
SCOMPANY
VITAL FACTOR
No Assurance of Continuous
Service if Bus Line Drives
Street Car Company Out
of City.
CAR LINE MAY QUIT

Many citizens were wondering Fri /
day what might be the financial back /
ing of the Richmond Motor Transit |
company, which proposes to operate a
bus line system over the Richmond
streets
An ordinance regulating the traffic of
bus lines is pending in the city coun- |
Gil now, and if the franchise is voted
Tuesday night the bus line company
says it will begin operations Wednes-
day.
The interest of the community in
the proposed bus line enterprise is a
vital one. business men believe. If
the company has no solid financial
backing, there is no guarantee, they
say, that the company will give con-
tinued and satisfactory service.
Officials of the street car company
announced Friday that if their reve-
nues were curtailed by the bus lines
they would be. forced TO suspend all
traffic, run their cars in the barns, and
discontinue the service which they
have given for many years.
Effect of Suspension
The possibility of the suspension of
the street ear service is a question of
great concern to many business men,
who appreciate the necessity of regu-
lar and sustained transportation on the
Richmond streets.
If the bus line company lacks suffl-
cient capital to guarantee service over
a period of years and goes to pieces in
md-winter, or in twelve months, and
the street car company has its plant
idle, thousands of persons who depend
upon the street cars now will find
themselves greatly disconnected
In fact, there will be no means of
street transportation as now provided
by the street car company, business
men say. They believe the city coun-
Gil should be very careful in enacting
an ordinance that will grant to the bus
line privileges, which, in turn, will
force the street car company to sus-
pend.
Believe Stock Selling Scheme
Some business men assert that the
effort to obtain a franchise is merely
a method to help sell stock in the com
pany, and that no action should be
taken until the career of the men back
of the company have been thoroughly
investigated
They recall how, a few years ago, a
number of traction line projects were
offered here that ostensibly were to
furnish better trans porta ton north and
t, south, but in reality were only means
of trying to sell stock to the public
The same method, they believe, may
be back of the effort to get bus line
franchise now
Pay Roll $4,000.
Suspension of city service of the
Terre Haute, Indianapolis and Eastern
Traction company. which may follow
the granting of a franchise to the pro-
posed bus line, will involve the ces-
sation of an annual pay roll of SIS 600.
and of taxes of 1922, paid on the city
line, saik G. K. Jefferies. general su-
perintendent Of the traction company.
Friday.
Mr.. Jeffries has lust completed an
inspection of the Richmond line, he
said, and his recommendation for Il
suspension of the city service, if the
revenue is curtailed by bus line oppo-
sition, has received the approval of
the company's officials
The Richmond lines have been
operated at loss" he said, "and the
deficit has been supplied by the trac-
ton company. In 1921, we had $1,000
left after paying operating expenses
and taxes, without including depre
citation, bond interest and other fixed
charges.
Fares Low Here.
Richmond is one of the six or eight
cities in the United States that still
has five cent fare. If the bus line
operations on the streets of Richmond
which is provided for by the pendine
ordinance. curtails our revenue, the
cars will be run into the barns, anG
the entire city service will be sus
pended.
I'VE do not care to take this action
but we cannot operate at loss. II
Saginaw. Mich. where a similar stu
alton arose 4 year ago, the street cal
company was forced to suspend il
the face of bus line operation. Toda.
the council and citizens of that cit,
are offering the company a franchise
and every advantage possible in orde
to get it to resume street car service
Money Stays Here.
The $4,000. which we spend oil
our pay roll in Richmond, is no small
item. The money is paid to Richmon,
men, and the greater part of tina
money goes back to Richmond mel
chants"
R. l. Todd. president of the system
said the bus line franchise would er
able it to charge a six cent fare o
five tickets for 25 cents, whereas hi
company was limited to a five cen
straight fare.
He reiterated the position outline
by Mr.. Jeffries. that a reduction i
revenue would involve discontinuanc
of service.