The Omaha morning bee., 1925-03-17
Trolley Cry
to Bar Public
lntervenors
But Wide-Open Policy Is
Adopted by Commission as
Fare Hearing Opens
in Omaha.


The state railway commission con-
.vened Monday morning in north court
room of the federal building, to hear
aithe application of the Omaha and
Council Bluffs Street Railway com
pany for authority TO charge passen.
ger rates which will yield Z per cent
ON valuation of s14,1O0, 900.
-, Members of the commission are
Torne A. Browne, chairman II. G.
rs Taylor and Charles H. Randall. John
l.. Webster Is representing the trac-
.stion company as general counsel, and
..t. Hugh Lancaster of the attorney gen
.teral's office at Lincoln Is counsel for
the commission. The following in
,n'fervenors were admitted to the case
iaand will be represented as follows:
- Chamber of Commerce, C. E. Childe;
.'ieity of Omaha, Corporation Counsel
Nv. c. Lambert; United Improvement
+, clubs Ralph G.. Coad; Independent
club and labor -organiza tions. Peter
Mehrens, Municipal league, Roy A
Harrop. The Independent club was
also represented by committee con-
ssting of w. II. Green, J. L. Beebe,
Ted Morrow. c. A. Mcdonald.
- Corporation Objection Overruled
Among the street railway execu-
- tives present were: r. A. Leussler
vice president and general manager;
+. S. Welty, assistant general man
ager and purchasing agent; D. Il.
s Gilbert, superintendent of power
plant; w. G. Nicholson, secretary and
auditor; w. o. jacob, superintendent
of electric lines, and W. p. Thomas,
attorney.
The preliminary formalities were
quickly disposed Of and the first wit
ness, Mr.. Nicholson, was called when
the commission adjourned for noon
recess. Chairman Browne announced
that the commission Will be pretty
liberal" is permitting intervenors and
others to ask questions as the hearing
proceeds.
Attorney Webster was overruled
when he entered objections to the
appearance OF the city and others as
intervenors.
Threat Is Made.
In his opening statement. Mr. Web
ster said: Il think that all I shall
do will be to show that under the ex-
listing rates OF fare, which have been
In force since August, 1919, there has
been an annual deficit OF 1875 600 and
upwards a year. this being based on
a return of per cent of the vaIua-
ton as determined by the commits
sion. We propose to show that the
net rate of return during last five
years has been about 4 per cent. 1t
is a matter OF judicial history that
any net rate of less than per cent,
or even per cent in some instances,
has been held to be unrea sonable
and confiscatory. Some courts have
held that 8 or 10 per cent is fair"
Mr. Webster announced with con.
siderable vigor that If they insist
1.-The company is not entitled to per
cent" the company may demand that
the deficit of nearly $4,000 900 suf-
fered during the last five years be
:. amatorized and the company reim-
.':bursed through increased rates of
fare He referred to the outlook Of
bankruptcy or receivership which
=. =. may occur II The company is not al
''i'' lowed a fair rale of return.
-. waste OF Time.
=. In his preliminary statement Cor
..poration Counsel Lambert asserted
that he believed it would be a waste
of time and would be futile to go into
the question of valuation; that the
+. commissions valuation of s14,10O,0OO
ia was acceptable. Mr.. Lambert, how
ever, did question the per cent re-
turn which was fixed by the COM
~ mission some time ago and which the
l,street railway company is now stand
+. ing upon. lie contended that this Z
.,,per cent is theoretical, and he insisted
l,afhat II the traction company would
s'inake a proper ALLEGATION OK revenues
land expenses OF it's Nebraska prop
ierty 1t could be shown that the pres
aent revenue Of the Nebraska lines
would be sufficient to yield per cent
ON the agreed valuation figures, and
would be sufficient net revenue.
f. Attorney Coad,f on behalf Of the
lli'Tnited Improvement Clubs, stated
THAT during the last several months
l..Farious organizations have acted
4 eclnshly by making reports on the
l.street railway controversy in advance
l.of the evidence