Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-15
A TALE OF THREE CITIES
Public Transit Authority
Has Many Hurdles Ahead

by arbitration, was followed within 80
days by a fare increase.
Cleveland transit men say they have
the lowest local fare of any big city
in the United States. This is literally
true, but misleading, because Cleve-
lands complicated fare structure forces
most riders to pay more than the mini
mum. In 1854, when the basic local fare
was Is cents, the average rider seems
to have paid 1871 cents. An average ride
today probably costs over 20 cents.
Most passengers pay 81 cents ride,
and large number pay even more.
Exact information about CTS traffic
volume is difficult to obtain. because
CTS does not report such basic vital
statistics as the number of revenue
passengers Virtually all other big-city
transit systems make such reports, but
there is no power in Cleveland to re-
quire this information from CTS.
The best figure on revenue passengers
on CTS is 149 million riders in 1854
down IS per cent from 1947. The 1854
figure is about two-thirds the number
carried by Capital Transit that year.
The Cleveland and Washington systems
serve populations Of comparable size
about IL million
Surplus or Deficit?
While CTS theoretically operates with
a small surplus, this black-ink position
is attributable to considerable tax re-
lief. CTS exemption from State license
plate fees, State sales tax and Federal
gas and excise taxes amounts to about
100000 a year. If CTS had been
saddled with these levies in 1854, as q
private operator would have been, its
balance sheet would have shown $780,
600 deficit instead of 100000 surplus.
Capital financing in the past has been
by revenue bonds secured by mortgages
on the property Of the system At the
end of 1954-the last year for which a
complete financial statement is avail
able-CTS had long-term debt Of
slightly over $31 million. The bulk of
this was In per cent bonds.
Short-term financing for the pur-
chase Of buses, etc. is done with equip
ment trust certificates, paid for out of
operating expenses and therefore senior
to the revenue bonds in point OF serv-
icing. In the past Cleveland has been
able to obtain low rates-7s to IA per
cent-on these certificates because Of
this method Of Servicing. Some financial
men believe Cleveland would have to
pay about per cent today.
Since March Is, 1855, CTS has had
rapid transit. It stretches across town
for Is miles, much OF the distance
through railway yards remote from
business and residential areas. An ex-
tension another two miles west L. now
planned.
Ropid Tronsit Experience
Originally projected to carry 100000
passengers day, the Rapid" actually
hauls somewhere between one-third
County engineers estimate) to one-half
CTS estimate) Of that predicted num-
Der. This relatively light load appears
due largely to the lines remoteness
from the central business district. From
the nearest Rapid" stop, most down.
town workers and shoppers are forced
to travel on the surface from 8 to 20
blocks
This shortening soon may be cor
rected. Voters Of Cuyahoga County
(roughly the metropolitan area Of
Cleveland recently approved a bond
issue to build distribution subway"
in downtown Cleveland. 1t will carry
the Rapid" underground through the
business district The project will cost
$S2 million, and will be paid for not out
OF CTS fare boxes, but out Of county
taxpayers pockets.
Cleveland transit officials are doing
a high-powered and effective public
relations job to lure riders out of private
cars and into CTS vehicles. But gen.
orally speaking, Improvements in setv-
ice at one point have been compensated
for by cutbacks at other points-an alb
solute necessity if CTS is to break even.
CTS has parking lots along the Rapid"
and offers downtown loop service from
municipal lots at 10-cent fare. But
riders decrease In numbers, and fare
hikes are imposed to improve the
revenue position.
Costs are going up faster than reve-
nues, however. CTS thinks there will
have to be more fare increases or more
tax relief. And some officials see the
possibility that the city and county
may eventually have to underwrite
losses by direct subsidies from tax reve-
nues. That time, however, has not yet
come.