Evening star., 1949-12-22
Third OF a SerieS.)
By Froncis P. Douglas

CINCINNATI mas a plan VI uCdAiA1S
with its transit system, which has
aroused interest over the country
and which may provide a basis
for a middle of -the-road solution
of a city's transit problems.
Briefly, the plan is this:
Under a service-at-cost contract
entered into in 1925 between the
city and the Cincinnati Street
Railway Co., the company estab-
lished a $400, 900 fare control fund
through the sale of securities.
On the 18th of each month. the
company files with the public util-
tiles director statement of the
results of operations Of the previ-
Gus month. If the company fails
to meet operating expenses and
certain other expenses. including
return on capital. as specified by
ordinance, the fare control fund
is drawn on.
Formula for Boosts, Cuts.
If the fund goes below 5000, 900
the company is entitled auto
matically to a 1a-cent fare in
crease on the first of the next
month. good for four months. If
the fund remains below 100000,
the company is entitled to another
accent increase.
If the fund goes above $500, 900,
there is an automatic half-cent
decrease in fare.
There is nothing startling in this
and certainly there is nothing new
in transit company filing
monthly reports. Capital Transit
Co. in Washington, for example
files minute reports every month
covering the operations of the
month before.
The chief accomplishment: is an
automatic fare change without
time-consuming and costly rate
hearings. In Cincinnati. moreover
it resulted in such relations be-
tween the company and the city
that. when the company decided
to forgo a fare increase to which
it was entitled. the city relieved it
of some paving charges. This last
is what most cities are extremely
reluctant to do.
Cash Fare Now Is Cents.
During the war, the fare was 10
cents cash on streetcars and buses
and 9 cents on streetcars. If tickets
were bought six at a time. When
costs climbed with the postwar in
flation, the fares climbed. too.
Cincinnati is smaller than WASH
ington but has most Of tine same
problems. It's pay scale. effective
last July l., provides sl.55 "A hour
for operators. the same as the
present pay here.
Fares now are Is cents cash or
1872 cents when six tickets are
bought. Sehoolchildren ride on
scent, fare. instead of 8 cents as
in Washington.
On July /, the company was
entitled to another half-cent
raise. The reasons the company
did not take advantage OF this
were outlined by Morris Edwards,
president, in an interview pub
lished in Public Utilities Fort
nightly, magazine.
Mr.. Edwards pointed out there
was the question whether further
increases In fare would reduce
riding so that less revenue would
be produced by higher rates.
He also explained there were
two other considerations the
company wanted to test for six
months. One was the prospect
of economies resulting from con-
version of IA major streetcar
lines to trackless trolley or motor
bus operation in three years. The
largest single conversion had just
been completed.
Paving Relief a Factor.
The other was the prospect OF
savings from the company being
relieved of it's liability for main
tanning and restoring certain
street paving.
Before the July / date arrived,
the company and the city had
reached an agreement. Regarding
the paving provisions, Mr.. Ed
wards said in the magazine in
terview:
"Under the provisions Of our
1910 contract (the 1925 contract
was revised and amended in that
YEAR, the company was assessed
one half the cost Of street re-
pairs, arepaving, etc.. within its
track areas, but not in excess OF
$4,000 in any one year.
s'It is this payment from which
we have been relieved, and which
has been mentioned unkindly as
a subsidy granted the company
It definitely is not that, inaSmuch
as the rider paid for this as part
of his fare under the service-at-
cost contract.
I'm addition to being relieved
of this payment, the company:
request that it should not have
to pay for paving done in streets
in which track abandonment oc'
ours or has occurred, has beer
granted" - .-....
Proposals Pending.
The agreement of last summer
expires January /. What is to be
done then still is to be settled
The company has decided it car
no longer forego a fare increase
On the first Of the year, there
fore, the fare will go to IS cents
straight, the rate to which the
company was entitled last July
At the same time the company Ii
pressing an application for an in
crease to Is cents. =
|PotroImon Walks
- n H.