The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1948-07-15

the sound islands and the Olym-
| pic peninsula. Indirectly it af-
fects every person and industry
in the state.
Ferry operation on the Puget
tsound is not a private business
but quasi-public in its nature.
Ferries are the cross-sound of
the highway system of the state
of Washington.
STATE AND COMPANY TRADE
Many years ago this state
Established regulatory control ov-
er service and rates of ferry
companies and, at the same time,
agreed to protect ferry companies
from competition. The procedure
of this ''trade" was set out in
public service laws still in eff
feet. The purpose was to obtain
for travellers - between the pop
ulous mainland centers, the vast
Olympic peninsula, and the many
sound islands - dependable and
economical transportation.
Year by year, by grace of state
protection of its monopoly on the
routes it operated, the Puget
Sound Navigation company grew
larger and more powerful with
the economic growth of the area
it served. One by one it swallow
ed smaller ferry companies until
it controlled virtually all Puget
sound ferry operation. It now
owns % ferry boats, % docking
facilities, lay up dock and a
mooring ground, and operates 10
ferry routes.
TICKET WINDOW TROUBLE
Trouble arose during the past
war. Ferry patrons became rest
less when it was evident that the
Company was making fabulous
profits. At the insistence of the
State Department of Transports
ton, backed by Bremerton Navy
Yard authorities, the ferry comp
any took a voluntary" 5000 re-
duction in rates affecting passen-
ger communication fares and auto
mobile rates.
During the war years the pro-
fits Of the Puget Sound Nayiga-
ton company (the net operating
income before income taxes, and
| figured on sinking fund depreci-
ation,") were as follows: 1941,
$623, 1895, 1859; 1912, $2,031,-
565.51, 1900; 1943, $2,255, 381, .07,
45.949o! 1914, $2,066, 850.55, 49,
$500. 1915, $2,205,792.8 4O.889s.
The ferry company, despite its
5000 voluntary cut in fares,
was rolling in clover.
Fabulous Profits. Higher Fares
At the end of the year, 1916,
despite its million dollar profit
|of.. that year, the Puget Sound
Navigation company raised its
rates an average of 5000 on auto
mobiles and certain Communication
fares. This was accomplished by
the simple restoration of the pre-
war rates on file with the State
Department of Transportation.
Having taken a voluntary cut in
rates, the company now took a
voluntary raise.
However, in January, 1947, the
ferry company demanded of the
state the right to raise fares in
all catagories an additional 5000.
The fare raises now total1ed $3.50
generally over rates which had
brought the million dollar pro-
fit in the year just passed, ex-
|cept that the increase was high
|er than 500 for passenger COM
mutation fares and automobile
rates. Qn explanation, the 5000
raise on a fare Of $1.00 meant an
increased fare Of $1.30, the raise
Of an additional 5000 over the
fare which had already been in
creased now became a total raise
Of 500 or a new fare Of $1.69J
State Versus Ferry Company
There was something the state
could do about the demand for
an additional fare increase. Fol-
lowing the law which clearly di-
reefs the procedure of the De-
partment of Transportation, an
investigation was begun by ex-
pert accountants of every phase
of the Puget Sound Navigation
company's ferry operation to
establish the necessity Of such a
sharp raise in rates. The Trans
portation Department allowed
the increase temporarily, upon
the company's posting Of a bond
to insure refunds to ferry users
if investigation showed the in
crease unjustifiable.
Interestingly enough, although
the company did increase rates
300 on its international run to
Victoria on February Is, 1913, It
did not raise these fares an adj
ditional 5000 as it did fares on
the Puget sound routes. On the
Vivtoria route It completes with
the boats Of the Canadian Pa
cific Railways. Only on intra-
state routes did the ferry comp
any enjoy state protected mo-
nopoly In return for state regula-