The Omaha morning bee., 1924-02-09
Sympathy for Street Car Company

Sympathy for Street Car Company.
omaha.-To the Editor of The
Omaha Bee: With eurtailment of
service imminent and. with public dis
content growing, the street car situa-
ton in Omaha is rapidly approaching
a crisis. Know Omaha week is an
opportune time to seek an equitable
solution of a condition which menaces
both the tramway company and the
people.
A cross-town line on Fortieth street
must be built. Extensions of many
lines are needed. Lines now In opera
ton give service so infrequent that
in many cases it does not meet. the
demands of the territory. The conf
pany's equipment Is inadequate.
Why doesn't the company build this
cross-town line. improve the service
and build more equipment? The an
swer Is simple: The company does
not have the money and under extst-
ing conditions can not get 1t.
Profit, according to business princi-
pies, is the margin realized on invest
ment after all costs of operation, de-
probation. taxes and fair interest
rate are deducted. Subject to public
regulation, the street car company is
allowed to make only a fair return
on what the railway commission de-
clares Is a reasonable valuation of
the company's useful property. 1t
cannot make profit out of which to
finance extensions: therefore money
for extensions and new equipment
must be obtained by sale of securi-
ties
II you were an investor would you
care to sink your money in a busi.
ness which lacked 100000 a year Of
making a fair return on the reason
able value of its property? Neither
would l. And because the company
Is not making fair return 1t cannot
sell securities. AS a result the ex-
tensions are unbuilt. the additional
equipment Is unbought and the public
suffers.
Three courses of action lie open at
this time:
/. The company may curtail service
so much that its operating deficit is
reduced. This is obviously undesir-
able.
\ 2. The company may, IL the railway
commission approves. increase its
fare. The public does not desire this.
3. The pepole and the city govern
ment may remove from the company
certain unjust and unreasonable bar
dens, place these burdens where they
rightly belong and enable the com.
pany to make a showing which will
attract capital with which to finance
extensions and improvements. This
is the fair solution.
One of these unfair burdens is the
occupation tax. which in 1922 amount
ed to nearly $4,000. The street car
rider first pays this tax TO the COM
pany. The company turns 1t over TO
the city. Neither street car rider nor
the company receives pecuniary bene-
fit from II. In other words. the occu-
patton tax forces the company to pay
to the city revenue which 1t needs
for its own use II this tax were
removed. as II should be. that $780,
900 could be left with the company
and would replace the deficit.
Another unjust burden, more oner-
Gus and unfair than the first is the
paving requirement. A relic of horse
car days, II forces the street car COM
pany to pave between its tracks for
the benefit of the automobile driver
who has destroyed part OF the COM
pany's business. This requirement is
entirely without justification and
snOuld nave Dten IepShieQ On tuc
demise of the horsecar.
Remove these two discriminatory
measures and you make 1t possible
for the street car company to get back
on It's feet, to sell the necessary Sc
curities and TO make improvements
and extensions which are so neees-
sary.
This Is everybody's problem, Don't
let the automobile driver sf1rug his
shoulders and say: II don't ride the
street cars. Why should ! worry"
A city without street cars is in the
same class ms one without electric
| lights or water system, and II Oma-
| has lost its street car system the re-
suit would be quickly felt In property
depreciation and consequent business
stagnation.
] am a street car rider. own no
stock in the street car company and
| have no interest whatever I'm that
company except that use its service.
believe we should see a speedy So
| luton of Omaha's traction problem IL
the Improvement clubs and other or
ganizations, instead of whining about
| half truths" and carping about prop
aganda," when confronted with the
facts. would honestly undertake TO CO.
operate I'm solving a problem on a just
and equitable basis.
]. G. TowNE.