8 THE MORXIXG OREGOXIAX, JVEDXESDAY, MARCH 24, 1920 i ... ."J J " ' i 'v-.4 FARE ORP E R CAUSES CITY HALL DILEMMA Officials Too Often Pass Buck, Says Mayor, RAILWAY HEADS RETICENT City Ownership or Trackage Xot Cirucrully I.lUcd But Votin; Suggested Pleases. When the public service copnrois- ion. boltlipc all other remedial ae tion in abeyance, proposed that ths street railway problem be plaeed be fore the voters of Portland for solu tion, its members led a genuine di Irmma into tna city hall, -where Jt formed the chief topic yesterday. Th proposal of the commission, that a peneral vote be taken at the May election on the issues of -whether the city should purchase the trackage of the company in Portland, and. whether the Tortland Kailway. Light rfc Power company be relieved of the burden of special taiation, found partial faor with Mayor Baker. Mayor Baker believes that the suc jrfstlon of the commission that the city acquire the trackage is the best way out of the transportation tariKlc while declaring that he Is in no re Fpect converted to municipal owner ship and that even the partial part nership proposal should be accepted only a a. last expedient. Solution Last Resort. Mayor Baker asserted that this so lution of the transportation problem, indicated by the action of the com mission In declining, for the present, to crant an increase in fares, is an obviously disagreeable one. but the best that can be afforded under the circumstances. The mayor said that the city council will discuss at an early session the advisability of placing both proposals on the ballot. But Mayor Baker, in admitting this, was positive in voicing his distaste for the shifted responsibility, known in current argot as "passing the buck." The city's executive did not indicate directly that these comments were targeted upon the commission, but spoke in a broadly general way of the eituation. "The transportation problem is one that we must meet," said Mayor Baker. "By the pronoun I mean those who are charged with looking after public affairs. There must be soma plan devised that will solve Portland's street railway riddle, safely and sanely. Mayor Condemns 'Bnrk Passing." "But the great trouble, as I see It," continued the mayor, "is that men elected to office and charged with , certain responsibilities are afraid to do the right thing. They axe prone to pass their difficulties along and get out from under. I will not call them duty dodgers, but In some in stances it is evident that public offi cials have declined to face cold cir cumstances. ... "I'm not accusing anybody, nor do I speak with particular reference to the present situation. It has had many parallels. The fact Is obvious to any one, however, that we cannot meet this street railway enigma by 'pass ing the buck.' "Thoroughly considered, the pro posal of the commission seems to have points in its favor. 1 am inclined to believe that the proposal, as it now stands, should be passed along to the people, for approval or rejec tion. The justification of any such etep la for the people to decide. The findings of the commission must be correct, for they are unanimous in de claring that some relief must be af forded. City Ownership Sot Liked.- . "I am not, nor ever have been, in favor of municipal ownership. But under the present peculiar circum stances I think it would be a good idea for the city to purchase the tracks. This is a desperate emergency, requiring an immediate remedy. W cannot wait. "I am presuming that the commis sion has found that some relief must be given to the company. Unless the company is relieved of the special burdens, suggested in the commis sion's proposal, the taxpayer must eventually pay all the bill not part of It, as is now proposed, but every penny of it. "This much is plain that If the taxpayers are narrow in their views, and decline to accept some reasonable remedy, they will be forced, in the natural trend of a. hopeless situation, ultimately to take over the entire (system. And if fhis were done, who know but that the city, having shouldered the entire transportation 009,000, which includes water power values, assigned te the operation of the street railway. Should the trackage be acquired by the city, through affirmative vote of the people, the practical status pf the city and the company would be that of - partnership, with' the - trackage leased to the company-and the com pany operating the equipment: Street railway officials say that, even though the matter of trackage ownership should be approved, great difficulty would arise iu the transfer of title. The properties of the com pany are bonded, as an entity, and a baffling problem would rise regard ing the method by which the street railway trackage could be segregated. Even at present, it is said, when the traqsfer of a email piece of property is concerned, the legal difficulties are sustained and serious. FARE RISE NOT GRANTED BY PUBLIC SERVICE COMMISSION Recommendation Made in Order That Matter of Taking Over of Trackage of Portland Street Railways by City Be Put Up to Vote of People at Special Election May 21. (Continued From First Page.)- ACT CALLED " 'X KYTiRYTlIIXtv I ORPHECM irT. Bill Closes This Afternoon to Make Way for Symiionj Orchestra . &accrt. The lrplieum chow, of which the four -Slarx brothers are the head unfefs, will be presented for the last trme in the engagement here this afternoon as the Portland Symphony orchestra will occupy the theater to night. The show headed by the Marx 1 i1r s S" . 7 J Foot Marrx Ilrothrra who close Port land engagement today. brothers has proved to be one of the most popular bills of the season and it is reported to have broken box office records in every Orpheum city. "'N Everything" Is the title of the act offered by the four, talented young men. It is a melange of song, dance, music, bright patter and comedy antics and, as its name im plies, it includes a little of everything in the vaudeville line even a comedy harp solo which is one of the big nits or the offering. The extra attraction of. the show are the Alexander kids, three clever little girls, who sing and dance and whose act is enlivened by the comedy hula-hula danea and Charlie Chaplin mimicry presented by the youngest tot.- . ... An act that actually has a laug4i a second is "The Piano Tuner" pre sented by Charles O'Donnell and Ethel Blair, the third feature of the great comedy show of which every act but one is a laugh-maker. In the farewell performance this afternoon the Marx brothers will add several new comedy bits to their act. MANUFACTURER IS SUED Wife Alleges Extreme Cruelty and Asks $150 Alimony. Hans Hirschberger, owner of a sheet metal plant, is named as defendant in a suit for divorce filed in cireuit court yesterday by Alice Hirschberger. They were married 28 years ago and have two children, both of whom are of age. The plaintiff alleges extreme cruelty. She asks for $150 a month in alimony and a -division of property. Lida Wemberg. in a divorce com- rrn turuit 15. 1919. the nrwnt appllea plaint filed yesterday, aavs that John ! tlon was filed: the first hearing ;n held ity to increaie fares on ' street railway lines in the city of Portland Appearanoes-R. A. LeUr for applicant. , y M'cr nd J. P. Newell for city of Portland; U L,. J.gvnss for Woodmere Community club. On A uk as t 15. .mm th. rwnnnH nan- way. Light Sc. Power, company, berelnaf'. ..k.mic reierrcu O as tne fm pany filed with this commission r. . Plication for authority to Incr-av. , ' Jf!""!' "'A"' " 'i thTclt, "of :.Vh ,,' '.."r nV W. order be en rite, ' iaVe ,JTi, l"d,aJ1 f "If ti,i . - -'J in uraer rso. i ,!.c n8es as will yieU a minimum i- 1 er CMt upon tn value of ';" railway property. -ns have been held, testimony tak- uio uneis inea Herein. The matter is how considered fully submitted upon the record. A brief chronolOBical statement of the most important incidents that led up to uie present situation is presented below: On Aug-ust 31. 1917. the comouiv filed an application with this commission asking that it establish such fares and transfer cnarges as would yield to the company a minimum return of 6 per cent upon the value of its street railway property, after the payment of ail reasonable operatlnir expenses, including taxes, public charges sna depreciation, and also including su-h additional compensation to its trainmen and shop employes, who had at that time made certain demands for increased wages and reduced working hours. . Original Findings October , 1917. On October 5, 11(17, after hearing, the commission issued its findings and order holding that the discretion of fixing wages and working conditions should be exerciped by the company, and recommended that operating tfconouiies be effected by the re moval of unjust burdens Imposed on the company by the public; by spreading the peak hours of industrial traJTflc, by ex tending the use of one-man cars, and by a reduction of service. Unlimited tickets which had theretofore been sold in books of 60 for Xl'-'t were increased to fi cents per ticket. School tickets theretofore sold lor Z'i for XV were increased to 4 cents per ticket. Jurisdiction of t the case was retained by the commission and the com pany required to submit monthly state- ments of its street rsilway operations, together with full information as to tion taken on suggestions made by the commission. On October 13, 1917, effective October 15. a board of arbitration composed of Thomaa Kobcrts. O. K. Hartwig and J. P. Newell mads an award establishing an eight-hour working day for car men, pa inent of overtime at rate of time and one haif for work in excess of eight and one hair hours, and vua schedule of 38 cenu for first year. 40 cents for second year and 45 cents thereafter. On December 10. 1917. supplemental ap plication was filed by the compan, re newlnir Its petition for increased rates, claiming that sufficient relief had not been obtained from suggestions made by the commission, and alleging that addi tional oDeratina expenses had been oc onioned bv wace awards. On January 5, 1918, after due hearing, ah,, u-aa f(KiiH hv this commission, mak ing effective January IS, 1918. cash fares of 6 ceuts. unlimited ticket fares at rate of five tickets for SO cents, unnnmiu tickets in books of oU tor -. io, arm u (,H .rhiuil children's tickets at 4 cents ach Which order was subsequently sus talned by the supreme court of the state of Oregon, bv Its decision of July 2), JJiB. May 17, 1918, Portland city council sub mitted to the voters of the clt a pro posed amendment to city charter, author. r.in rt. council. In Its discretion, to re lieve any corporation transporting passen gers for hire of any or all of the follow ing charges, whether Imposed by charter or franchise: 1. Bridge tolls. 2. ' Assessments for future street 1m provementa. . 3. Free carriage of city employes. A r..nnh, anl HrenSB felS. The proposed amendment was de.'eated. War Board Increase Wages. Effective July 1. 1918. the natlons.1 war labor board made an award increasing the wages of shop, and maintenance men f ,. enmnanv. aud also Increasing wages of platform men to rate of 4il cents for i k mnnihi 4s cents xor ne . j o nAnta thereafter. In August, 11)10. an award was made by the national war labor board, retroaot ve to June 25, 1019. further Increasing muiir nauce and chop and car men's wages, the . . . v.i- innron or-il I ft Ii-I wages OK ine wtier vc...b .... . cents an hour tor the firt three months. 54 centa for the next nine months and r..l nnnta lhorlftfir .-ffetlv. October 1. 1919, a board of arbitration composed of Ira V. Powers, u.i nnri K. C. Knapp made an ..ldiMnmi award resulting in increase or - n,n-a vn irfm to i-SC per Hour mi luw first three month. 60 cents per hour for the next nine months and 02 cents per hour thereafter, unis awuru omu 6. iucreases to shop snd maintenance men. rictohcr 1. 191'J. the state board of conciliation, composed of William P. Woodward, J. K. Flynn and Otto Hartwig. acting as a board of arbitration, granted certain wage increases to electrical work ers a portion of which is assignable to treet railway oinrauun.. Effective November 1, 1910s wage In creases amounting to approximately S2000 ir.ni.ih were granted to clerks and like employes not affiliated with any labor or- ganizati m. Bridge rentals .....w. Taxes Depreciation . . .7, , , . Interest l.i.ion- 17.3.-3 30.309 o$.t!S0 .30 .53 1.02 Sinkit Iun(j requirements ot covered by amor tization of discount 11,045 7 per cent return t stock . holders, less sinking fund requirements 24.000 4l2,2tiS $7.13 $ .19 .42 7.7 Wemberg told her he couid lie so fast the law could never catch him. She also illeges he threatened to kill her. They were married at Tacoma last October. On the way to Portland from their wedding, the plaintiff says her husband compelled her to return to her mother and has since refused to live with her. She wants a decree and $50 a month in alimony. problem, might not be compelled to fix a rate of fare far higher than that now existing? "I wouldn't be In favor of submit ting this matter to the people if the remedy was within our hands. But it Is not within the province of the council to act in the matter, and it becomes necessary to ask the citizens of Portland to vote upon approval or rejection. STy personal sanction to this plan Is backed by the belief that It ia an expedient forced upon ua by the seriousness of the street railway eituation." Rail-nay Officials Say Little. Franklin T. Griffith, president of the street railway company, is absent from the city and will not return un til Saturday. It is probable that he will make some statement in com ment upon the commission's proposal. Officials of the company point out that little is to be said, inasmuch as the mater of a fare increase is still open and undetermined by the com mission, which has merely suggested another way out of the tangle. "Naturally, we are disappointed, after the showing made before the commission, that some relief was not afforded to tide us over," eaid F. J Fuller, first vice-president of the company. "But the matter is still open, and I do not feel that it would be proper to discuss the action of the commission. Some temporary relief might have been afforded, we feel, in the way of increased fares, until un just burdens were removed." Cenaeil Like Election Idea. It is said that sentiment in the city council is somewhat divided over the merits of the commission's proposal, but that there is an. expressed will ingness to place the two questions upon the ballot for-popular decision at the May election. The commission's report Indicates that approximately $5,000,000 would be required for the purchase of the street railway trackage tn Portland. The value of the street railway prop erty, in Portland, is placed at (18,- SYMPHONY SEASON TO END Portland Orchestra to Give Final Concert at Hcilig Touight. At the Heilig theater at S:30 o'clock tonight the last concert this season of the Portland Symphony orchestra I will be given. The programme will be in the nature of a "requested" one, because ail the musical numbers to be rendered have been chosen by votes of previous symphony audiences. The big number will be the famous "Kymphonie Pathetique" by Tschai kowsky, of which the composer once said: "The motif of my syftiphony? Let them guess it who can." The other numbers will be bright ones and will include "The Dance of the Whistle Pipers' from the "Nut Cracker Suite," the "Prelude" to Wagner's "Parsifal." and the charm ing Orieg suite, "Sigurd Joraalfar." Opinion Sanctions Election. SALEM. Or., March 23. (Special.) There is no valid reason why a spe cial election could not be called and held in the several voting nreclncta of Hood River county on May 21, con- i 'inn- and a tudy f lJ;e expenses of the currently with the general sneniftl ' eoirpaiij - ,T"L'r' " election of the state and the regular thereon September 22, 1919. and final hear ings Februaiy 2 to 6, Inclusive, 1920. - A large amount of work has been done In connection with this case by represen tatives of tha company, the city of Port land and this commission. A vast amount of testimony has been taken thereon, a number of volunteer witnesses heard and all interests given a full opportunity to present testimony. The company has pre pared and submitted voluminous data re lating to its operations, which has been carefully examined and checked by both the representatives of this commission and the city of Portland. Various tables and compilations have also been prepared and submitted by the city's consulting engineer and by members of the commission s stafr. J p. Newell of Portland was employed by the city to make an investigation of the problems confronting this street rail way company, and after considerable time and upon completion of an extensive study he presented to the city council of ssid city a very comprehensive report upon the situation. As a witness on behalf of the city he embodied this report as a part of his testimony, accompanied by an eluct dating dircussion In detail thereon. A brief outline thereof is herewith presented. Newell Report Glv-n. The Newell report follows: While the primary purpose of the study was to determine the actual cost of serv ice as applied to the street railway oper anions of the company, there is embraced therein much information upon ail phases of the utility's street railway operations. Including a comparison of the Portland situation with that existing at Seattle where the street railway lines are owned and operated by the municipality. a Cost of service The object of this study was to arrive at the actual eost of transporting passen rers over the street railway lines of the applicant, and to do so in such a manner as would be eieariy unaerstandable by the average citizen. In preparing these flg uies, the month of July. 1019. was selected as a basis for the purpose ox the caloula- biennial primary nominating election according to a legal opinion given by Attorney-General George M. Brown today. The opinion was asked by i J. A. Churchill, state superintendent of public instruction, following re ceipt of a letter from Jamea H. Haz lett of Bood River. Burglar Alarm Installed. HOOD RIVER, Or.. March 23. (Spe cial.) The Butler Banking company is completing the installation of an electric burglar alarm system. The vaults and safety deposit boxes of Hood River are now well protected, the First National Bank having in stalled an electric burglar alarm last November. Vancouver Registration Lags. VANCOUVER. Wash., March 23. (Special.) Of the 4000 or more voters in Vancouver, only 1400 have regis tered to date. All must register this year to vote at the special election, to bond the city for $130,000 to build a dock, or for the primaries. tuallv counted and the results of such count checked against the company's pay roll. Similar methods were also employed In connection 'with other items of ex pense, the result being that the expenses stated in the company's exhibits before the commission were confirmed. After arriving at the eost figures for tha month of July, certain collective factors were applied thereto to allow for seasonal differences and later changes in wage scales, thus arriving at the average month ly expenses at the present time. The fol lowing table from the Newell report shows the results of this calculation: Portland Railway. Light and Power com pany. Cost of street car service for typical month in 1919. Including all wage increases granted during the year. Revenue passengers 5,760.000 PerRev.Pass. Accounts. Amount Cents. Repairing tracks and buildings t 2.00 " - $ .48 Repairing cars 24.400 .43 Wages of motormen and conductors 105.500 2.87 Vvages of carbarn em ployes 11,150 .19 Superintendence of trans portation 9,480 .16 Miscellaneous -transportation expenses 7.770 . .14 Power 12.0SO .21 Wages or general otticers. Z.OM) .03 Wages of office clerks.... 4.400 ,08 llaw expenses 1.1 70 .02 Other general expenses .... 4.000 .2 Injuries and damages .... Z1.000 .37 Total cost .S447.S13 Average per month for 1919 actually paid. The last column of the 'foregoing table indicates the cost of service per revenue passenger carried, distributed to the vari ous accounts. It will be noted that the total operating expense and deductions from Income amount to 7.15 cents per rev enue passenger. To this has been added a return of 7 per cent to the stockholders on an amount of l,0O0,00O, which is approxi mately the balance remaining after de ducting fj-om the present valuation, as found br the commission, the proportion of the bonded Indebtedness properly as signable to city street railway lines. This return to stockliplders is shown in two parts on the foregoing table for the reason that there are certain amounts required to be paid annually Into sinking funds In order to reduce the funded debt. -Such payments are made for the benefit of stockholders, and are not an expense of the service. They are therefore consid ered In the foregoing table as a part of the return to the stockholders, although only $24,000 thereof would be available for dividends or for additions and better ments. It will be observed that the cost per revenue passenger, alter allowing for a 7 per cent return upon the .stockholder's equity, is 7.76 cents, as Indicated in the foregoing table. Revenues Are Verified. - (b) Revenues The revenues of the company were also checked and verified In a manner similar to the expense, a sufficient number of the conductors' turn in i.ips being checked and compared with the rcgiFter rolls-and with the daily re- pltulation of receipts to determine their substantial accuracy. The total Juiy rev enues, including freight and miscellaneous revenues applicable to city lines, were found to be I37K,.I56. It being aeterminea that the July income averages 4.S per cent in excels of the mean for the year, this percentage was deducted from the actual figures and the average revenue for a typical month obtained, being $.162,000. It will thus be noted that according to the 'igures presented, the average monthly expenses exceed the average monthly rev enues by more than $50,000. If the sinking fund requirements, are included, the deficit, according to such calculations, would be $111,000 per month; and. If a return of 7 par cent provided on the stockholders' equity the deficiency amounts to approxi mately (85,000 per month, or $1,000,000 per year. In addition to the -cash requirements above shown, this witness also introduced lata to the effect that It wil) be necessary for the company in the next year to spend approximately $20,000 per month, in ad dition to the amount now being spent, in order to bring the tracks and pavements up to the condition in which they should be maintained. The approximate amount of $030,000 claimed by the applicant as belnjr necessary for rebuilding lines within the next year was likewise found to be substantially correct. Should this recon struction programme be fully adhered .to. the above maintenance requirement will be materially reduced. (c) -Seattle Municipal Railway. In con nection with the study of the street rail way problem now confronting the city of Portland the" witness also made an exam ination of the conditions existing at Se attle in connection with the operation of the street railway system, which was taken over by the city of Seattle on April 1. of lafct year, and is now operated under municipal management. The purpose of this study was te determine as near as possible the cost of operating that system. and to find whether or not the Seattle system -was being operated more econom ically than the Portland lines. Krom the report presented It appears that the mileage of the two systems is practically the same, and that the number of cars in service is nearly equal. How ever, due to the greater population and Influenraid by a dliterence in topograpny, the hills In Seattle malting it more incon venient to walk, there are 40 per cent mora passengers carried per car-mile in Seattle than In Portland. It Is also bejleved that a great portion or tnis excess in Seattle Is so-called short haul, profitable class .of . traffic, handled throughout the business section of the city. Seattle Offers Comparison. It was also developed that the Seattle Munclpial Railway department Is relieved from the following items of expense, which are now borne directly by the oar riders, patrons of the Portland company: (1) General taxes. (2) franchise fee(. (S) local department and accounting expenses. 4 bridge tolls ana lo paving. in r-oruanu these charges aggregate approximately tHOO 000 per annum. Furthermore, in making their calculations of cost, the Se attle Municipal Railway department makes no allowance for depreciation, it being their contention that there will be no necessity for such an item, due to the fact that they expect to keep the plant in normal condition through their main tenance account. It is the conclusion of Mr. Newell that while a portion of the de preciation may be taken care of in this manner, yet it will ultimately be found that n additional amount of approxi mately $20,000 per month will be required n the form ol uepreciauou. Making allowance lor t,uese nu omer conditions, the conclusion, is drawn that there Is an appreciable differ ence in economy of operation per car-mile in favor of the Portland system, the Se attle cost per car-;nile being 9 cents as against ts cenis m tuiL...-. The calculations mnun he 5-cent fare now being charged in Se attle is by no means the cost oi lurnisn- ing service, Dut inai mo " present time is approximately 8 2-3 cents per passenger Under inese usuiw - that the Seattle municipal rn-.v ..: deficit for the ensuing year of about ,000,000. wnicn must cvtiaj by the taxpayers. Relief Lies With voters. Tj..rf uBon the figures presented by the itv', witness in the foregoing report, it Knn,. anDjtrent that additional net op erating incom must be provided to as sure continuity of the operation of the street railways. This msv be accom plished either by an Increase In fares or a reduction in expense. The problem be fore the commission is to determine In what manner this deficiency can beet be overcome. Primarilv, there can be no qusetlon as to the authority of this commission to increase fares, if that is to be the remedy applied: but If relief is to be secured i, the medium of reduced expense. the council of the city of Portland and the voters of that municipality hold, the key to the situation, and are vested with the power and authority to afford full, adequate, and, we- believe, permanent re lief. Increased Fares Not Solution. Upon the assumption that there would b no falling off in traffic, revised calcu lations by the city's witness Indicated that an S cent cash fare with strips of tickets sold at 14 for $1. or a 7-cent cash fare with a universal 1-cent transfer charge would produce a revenue approxi mating' the company's requirements for the ensuing year. ... The commission, however. Is reluctant under present conditions and circumstances to attempt to remedy the situation merely by increasing fares; we seriously doubt whether any fare would result in a com plete and final solution of the difficulties of the Portland street railway system at ihi. time It is tur opinion that any nlutlnn now attempted should have the elements of permanency, and rurtner ais eussion will be directed toward that end. oince the beginning of the war mere nas been a continuous succession of increases in nrlcee of both material and labor. These Increases have called for additional rev enues, which resulted in many or most of the regulating bodies increasing the fare one. two. three and four times, with con sequent disturbance of economic relations, and as the rate increases these disturb ances and existent inequalities become more apparent. During reconstruction, all inequalities and irregularities must, where possible, be eliminated; and this Is par ticularly true as to the street railways. Observations of results In the various cities of the United States, where repeated fare increases have been established, lead us to the belief that this is neither the solution nor tjie proper remedy to be ap plied when U can be avoided. The his tory of these fare increases would seem to Indicate that one Increase calls fon another. We have before as tn this ease a compilation showing the cities in which fare increases have been made. This indi cates that 164 cities now have a 6 cent fare. 100 cities have a 7, cent fare. 16 cities have an 8 cent fare, and 59 cities have a 10 cent fare. It ia interesting to note that the T cent fares came almost Invariably as the result of a second appli cation, -the 8 cent fare on the third appli cation, and the 10 cent fare on the fourth. At 10 cents, the maximum seems to be reached, and yet it is questionable as to whether the companies applying the 10 cent fares have sufficiently benefited to have warranted Its application, in lieu of O'.ner remedies. It would appear that a logical deduction might be that increased fares do not In many instances accomplish the full pur pose for which they were designed. In crease In fare never brings a proportional increase In revenue. It is also apparent that high fares lessen the value of a street railway system to a community, for when fares restrict riding the street railway ceases to perform lu proper function. When fares exceed what the average car rider can conveniently afford to pay. the man who uses the cars as a convenience ceases to ride and only the necessity patron remains. Even he seeks an alternative method of transportation. Failing in that, employment is sought within walking dis tance of his home or his residence is mooved, where possible, within walking dis tance of hj employment. He makes .less frequent trips to the business section of the city to make purchases, to attend plaoes of amusement or to make use of. educa tional facilities of the city. He makes fewer trips to visit friends. The result is detrimental not only to the company snd the Individual citlsen. but to the business institutions of the city and to the civic and economic welfare of the municipality as a whole. Massachusetts Css Cited. This seems to be the conclusion reached in the state of Masssehusotts, where the problem of street mliu.v t .. ,,. ceived a great deal of consideration. The Massachusetts public service commission . u " rcent case Involving the fares of the Bay state Street Railway company. "Street railwsv t- --. , - - , i i, uc,n inure frequently snd more generally raised In Massachusetts than in any other part of Ihe country: and u-hn. i, , ,1 , th companies has re sulted. It Is true that In nearly every cose the gain In revenue has been less snd iVh.- r , srtnn Pr'or estimates, lit L. . ur hKvt ""ted in. but making ncroases in fares impose a burden upon , Pw 'eh";ilch """'derably exceeds hen" rKURlo'ltVsT'0 "'" ,JS HLZUr b9Jlef increased fares do ?.l efP ftU and ro" measure, of case the. i 0Ur P'"ion that in this a" ady uyntr,UK ?m,t ln Increasing an r.'7o,qduyireaJ"tbe.rden Wb!eh ,he PoWle Cnr's Jsrtor. i. crroVXT," ni'w' ytem of Portland h, ' an ""Portant and necessary 8"VIC'' under th. present plan of providing the cost .thereof, only the tar rider contributes. And. not only docs m.iaf ,r,de' ""-'Vide the entire eost of heel"! hV.he rapid transit s"tcm for the city but In addition he carries a por tion of the cost of paving the streets, pays p. rental for the use of bridges which be- ege um of franchise taxes nnrt car II- sences and pays for a portion of the cost or city government through the free tiana portation of citv ,miln. tn -fr..., i , is double taxation. The company has been to date compelled to lay approximately $2,000,000 worth of paving, nearly one-half million of whirn Is as yet unpaid. The. charge for maintenance, depreciation, interest and taxes amounts to about $275,000 per an num. Prospective paving on work nos under way, it is estimated, will amoun to $125,000 during the year 1920, and need ea replacements will add nearly $60,000 aauicionai. Ae have heretofore assert ed. this paving adds nothlnr to tha effi clency or ease of operating the street rail ways, and Is of no benefit to the com pany nor Its patron, the car rider. Such advantage as is derived from Its ex istence accrues to- the taxpayer or the general public, or when, more directly lo calized, to the abutting property owner; to the automobile owner or any other per son who may hsve occasion to use the puone streets, let, under the present system this burden Is pieced upon the company snd must ultimately be paid by the car rider in the form of fares. The injustice is apparent. The bridge rentals assignable to the city lines, not Including the interstate bridge tolls, for the year 1919 amounted to $04,7.10. This . charge, together with others, must also ultimately be nsld bv the car rider, and amounts to a toll paid oy nim tor crossing ine city Drldges. The man who crosses the bridge in an auto mobile er truck, with passengers or mer chandise, occasions at least as much If not more damage, yet pays no toil: nelth er does the pedestrian, causing an obvious discrimination between the various kinds of traffic. Franchise taxes, amounting ln 1919 to 13.4i2, and car licenses, amounting $745. together with bridge tolls total $S7,titi0. and it Is fallacious reasoning which imposes this expense on the rate payer. During the year 1019 more than 400.000 free riues were given to city employes under a franchise requirement, which would yield at the ticket fare of 5'4 cents. In excess of 122,000. If the vaitie of the services of these employes, to the city, is enhanced, and the necessities of their positions require frequent csr rides, then the city should properly provide for their transportation either through salaries or the purchase and furnishing of tickets. Certainly the prac tice of requiring the fare-paying car rid. er to furnish the ride i untenable. long to the public, pays for the prlvllegt oi riding on the public streets, through the medium of frnnrhli. Hv., nH it. Seattle Buys Owa Rides, In this connection we note thut the city of Seattle, notwithstanding the street rail way system is municipally owned and operated, paid to its street railway de partment during the year 1919 for the transportation of their policemen and fire men the sum of $30,000. The amount of these burdens for 1920 may be roughly summarized as follows: Maintenance, paving already lald..$ 47,000 Bridge rentals 65.000 Franchise taxes 15.500 Car licenses 7.600 Free transportation of city em ployes 22,000 Maintenance, depreciation. taxes and interest on prospective pav ing, average six months 13,000 Total $170,000 The items mentioned above constitute a regular annual charge which may be directly relieved by the vote or tne people. and to said amount, as it now appears, may be equitably added a yearly charge of $30,000 for deferred maintenance on pav ing, thus Increasing the total to $200,000. Should the city see fit to assume the payment of the unpaid portion of the pav ing already laid, amounting to nearly one- half million dollars, this would further reduce the anuual charges by approxi mately $57,000. In addition to reduced an nual 'charges, certain capital expenditures would be obviated. These charges and burdens sre the out growth of the custom which has hereto fore prevailed of placing upon the public service corporations as great a portion of the public burden as was possible. In more recent years, however, with the advent of public utility regulation, the fallacy of this practice has been repeatedly dem onstrated. Other regulating bodies have been con fronted with this same problem and ef forts are being made throughout the en tire country to eliminate these objection able features. In a recent case wherein this subject was involved the public utili ties commission of Rhode Island said: "Throughout the country it seems to be clearly the consensus of opinion on the part of those who have made a study of the problem that the trolley companies should be relieved of franchise tax pay ments, snd the obligation to pay for pavements, which are in effect an indi rect tax upon the car rider. Increased lares have an immediate tendency to cen tralize 'population and decentralize busl ness. clearly a social and economic mis take. The problem can oniy be solved by the systematic co-operation of the state, the municipalities, the publlo and the company. Old prejudices must give way to the facts of the present situa tion if trolley service Is to be maintained. " (Public Utilities Commission vs. Rhode Island company, P. U. R-. 1919. F-744.) This is apropos ln the instant case. If adequate car service is to be continued at a minimum rate of fare, the car rider and the general public must forget such preju dices as they may have had and adapt themselves to the situation as it exists today under regulation, where the welfare of the car rider and the public is analo gous to that of the company. The ulti mate end desired is to Increase the reve nue without increasing unequal burdens. The present complication might be viewed as a three-cornered partnership, wherein ignoring one would be disregarding the in terests of the others. Demands from one that are discriminatory in operation against his partners become exactions, in effect, which work toward the disruption of the system, and failure of the plan Is Inevitable. These so-called burdens, paving, bridge rentals, franchise taxes, car license and free transportation are more directly un der the authority of the municipal officers ef the eity of Portland, and an amendment to the charter will be required to relieve the car rider from payment thereof. We believe that the present charter and I franchise provisions by wnica tne general public profits at the expense of the car rider are unfair, unjust and discriminatory, and this eommisslon earnestly urges that through proper procedure the car riders of Portland be gives further opportunity, at the May elections, 1920, to voice their sen timents, through the ballot. In relation thereto. , Kquitable Distribution of Transit Costs. From the testimony given at the recent hearing la this matter not enly did It seem to be the consensus of opinion that the unjust burdens above outlined stiould be and would now be removed by the voters of the oity of Portland. If properly presented to them, but that some additional means should be found to-lake from the shoulders of the car rider and place upon those of the general public an equitable proportloc of the co.t incident to the furnishing of street railway service. Thus would .the pressure be equalized to correspond to the benefit received. This is not a new theory, for It has long been a recognized fact that an efficient rapid transit system is a prime necessity to the growth and prosperity of any city. It Is also realized that this Is not alto ,Oi,f necessity occasioned by the car rider himself; nor Is the oar rider the so.e It indeed the principal beneficiary thereof. As Illustrative of this we may weli csll attention to a recent order o: mis commis sion. No. 573, wherein an extension of the lines of the applicant herein to the St. Johns terminal was Involved, ln that or der the commission ssid: "It is apparent from the record that street railway facilities are as essential to the successful operation of the St. Johns terminal as are the numerous tracks for the handling of freight. It Is conceded hy all that without such rapid tran-it lacin- tles the terminal cannot oe operairu - mi success. It is, tnereiore ...... .-.u the necessity which exisls for tills exlen slon Is not one occasioned by the car rid r. hut Is, rather, a necessity created by the general public. It Is likewise apparent ,h-t .nv henefits which might accrue therefrom would redound principally to Hie general public rather than to the indi vidual who may have occasion to use such facilities." The thought expressed In the foregoing quotation applies to a greater or lesser ex tent to everv foot of track owned by the applicant. The necesstiy for a system of rapid transit arises from the Inherent na ture of a city, and the benefits derived from such a system accrue to the munlcl ..n whole Every property owner ln the city benefits either directly or In directly from the fact that a system of street-railway line exists. The proximity of the car lines Invariably enhances prop erty values for which unearned Increment the owner pays nothing. These car lines carry the great mass of the public to the various places of their employment in the factories, shops, stores and other institu tions, and thev also bring to the business sections of the city and to the doors of the theaters and stores the greatest proportion of their patronage, yet while these estab lishments benefit very materially by the service performed, as institutions, they pay nothing. To the business Institutions of the citv this benefit Is a direct one that can fairly be measured In dollars and cents. Testimony of Interest. Testimony of a prominent business man of the city of Portland supporting this theory Is of Interest. We quote therefrom as follows: "We are fairly In the center ef what Is known as the retail section of the city and are largely dependent for our business upon the mass of the people who live out side of the immediate district about our store. Our trade comes to us largely from the suburban area. Our business Is done with people who travel on street cars rather than by other means of convey ances. ... It the street car company were to cease Its operations tomorrow it would be merely a matter of waiting for the Inquest so far as our business Is con cerned, or the business of any of these con- Next maintenance directly allocated to operating expense Is eliminated snd the patrcn of the company further relieved, and the city taxes on trscks and pave ment now chargeable to the car rider alone would be borne by the general public, and the state tax thereon eliminated. Tims Demands rttrong Remedies. While the thought advanced In the fore, going discussion may be somewhat of a departure from old established precedents, the commission believes that the exigen cies of the times demsnd more effica cious remedies than have been heretofore applied. From our Investigation snd analyze erated street ear will have the better ef It when compared with the motor vehicle in regard to actual costs, snd when all Items of cost sre taken Into cnristderallon ss they should he and ir imfsir snd en equsl burdens are sot plaeed en the street raiiwaya. This is epeeUI'y ep parent when modern street railway equipment Is tnkrn Into ths comparison." tl. I'. It, 1920. P. J21.) A very comprehensive study. ronerrnl" the prsctlcsblllty nd economy of bus line transportation was submitted In this caee snd testimony upon this mbjeet h..e convincingly thst adequate bus line tntns nnrl.it inn sufficient to meet the nee.ls of the city of Portland would be neither tlon of the data atf hand. It Is not at all J practicable nor economical, alien on the cerns. This same witness testified that during the period of the recent storm In Portland the business of his firm, amounting to ap proximately $2,000,000 snnually, was reduced 70 per cent within a period of 12 hours by reason of the fact that street cars were unable to operate. Is It not proper that this same business man and the business Interests generally should contribute some fair proportion toward the cost of supplying these facilities that are responsible for bringing a large percentage of their business? Is It not Just that the owner, whose property values are en hanced by reason of the proximity of car lines, should contribute something toward the maintenance of the facility which oc casioned this unearned increment? It is our firm belief that some equltabl. plan should be devised and made effective whereby a Just proportion of the cost of street railway service will be plaeed di rectly upon tne community as a whole, which profits greatly therefrom and yet makes no adequate reciprocation. We again quote from the decision of the Massachusetts commission in the Bay State Street Railway case bearing upon this subject: "The present time is a transition pe riod. No one can be sure what the course of prices will be, or what the Immediate future Is likely ln other respects to bring forth. So far as street railways are con cerned, It la ln sll probability a transi tion period in another sense, for it seems sate to say that the present unsatisfactory situation will lead to further action of some sort by the general court. Without undertaking to predict what that action may be. It Is certain that there are many who are coming to oeneve mat it is wiser to place a part of the burden of the cost of necessary street railway service directly upon the community as a whole, rather than to suffer increases In fares which do not produce the results which they are designed to produce, and which are seriously disturbing to social and eco nomic conditions." (r. U. K. lata A eat. J Several plans have been suggested where by a portion of the cost of maintaining the street railways may be placed upon the bubllc. Cost of service plans similar to those In use In certain eastern cities have been advanced. It has also been propose'! that a portion of the cost be borne by'tho taxDavers throush the medium of an ap propriation from public funds. Further the possible elimination or general city taxes. amounting to approximately $..o,ooo, nas been suggested. Still anothor thought has been advanced which contemplates the pur chase and maintenance by the city of the street railway tracks lying within the city limits ef Portland, with a continuance of operation by the company as at present. Track Ownership Suggested. As between the various suggestions for relief, the latter would seem to be a very effective method of producing the de sired result. The city of Portland is pro vided with a system of streets and thor oughfares over which street car, vehlcula and oedeatrlan traffic passes. Through a system of levying assessments, hard sur- I faced pavement Is laid upon many of its streets, to facilitate the movement of traf- , flc. with sidewalks for pedestrians, tnesj streets and sidewalks are constructed anil maintained by the public, except where traversed by car lines, a portion or tne paving cost Is met by the car rider. In asmuch as provision is made ror the vehicular, motor and pedestrian traffic by the citv. Is it not consistent that It should also provide and maintain a highway of steel in the form of street railway tracks for ".he use of the greater portion ot us cititens who are - dependent, by force of circumstances, upon the street railway tor rapid transit? The commission's engineers have esti mated that the approximate value of all city tracks exclusive of wires,- poles, etc.. and not including carbarn layouts or th.: Vancouver line outside the Portland city limits, is approximately "five and a quarter million, which, when deducted from the total valuation of the company's city lines of $13,730,715. leaves a net value of city lines, without tracks, of approxlmately thlrteen and a half million. However. should It later develop that the tracks constitute a greater xtroportion of the street railway system, then it naturally follows, that the extent ot the relief to the car rider resulting from their purchase by the city would be correspondingly greater. In any event should ths electorate au thorise the purchase and maintenance of the tracks by the eity, the matter of valuation Is entirely a question to be later agreed upon between the city and the com pany, by arbitration, revaluation, or such other procedure as will equitably establish, beyond question, their fair value. The acquisition and maintenance of the tracts by the municipality affect In many ways the revenue ot the company, pri marily by the marked reduction In valu ation, upon which the car rider Is now asked to pay a return, with consequent re duction of the amount of money required to cover depreciation which immediately finds reflection in a materially reduced annual operating expense. In this con nection it may be noted that the interest on municipal bonds necessary to purchase the tracks would probably be considerably lower than the rats of return a private company might reasonably expect upon ths same investment, thereby transferring to the general taxpayers a lesser urdes than is now borne by tha car rider. unreasonable to assume that the acqui sltlon of the tracks by the city, together with the relief of the burdens hereto fore enumerated, would not only place the Portland transit system, at present and for the future, upon a sound financial basis, but permit of s prompt reduction ln ths present rats of fare. Arguments advanced against municipal ownership snd operation of urbsn railway systems, such as political interference, etc., would not apply to city-owned tracks, for the reason that all operstions remain In the hands of the company. In fact, track ownership onlj-, properly safeguarded, would preclude In our opinion any future necessity for Portland to own snd oper ate the entire system. The adoption of a graduated rental te apply at such time as the company earn ings increase to a given figure, would ai t as a "governor" and accruals to the city could be applied to the retirement of bonds, or such other purposes as would best serve the public. Finally, the adoption of some revised traffic plan, similar to thni.e recently un der consideration hv the city of Portland, would unquestionably result In lessening tne company s operating costs. At tl present tune the various loop lines In the business section of the city Inler mingle and cross and recrnss. During the hours of heavy traffic, this results in freuuent delays. A delay of s few mln. utee on each cur passing through this con gested traffic district Is not only an In convenience to the car rider, hut Is an ap preciable expense to the compsny. snd Is ultimately assessed to the car rider. The rearrangement of these loops to avoid a multiplicity of crossings, with diversion of vehicular traffic would, in our opinion, be facilitated, if the truck ownership and the direction nf traffic were controlled by the municipality. Obsolescence Is Alleged. While some testimony was offered to the effect that the elertrlo street railway has become partially obsolete as a means of rapid transit, this suggestion Is not borno out hy our Investigation nr by the record in this case. Indeed, we can find no foundation of fart upon which such an assumption might rest. It Is undoubtedly true that the advent of the private auto mobile has deprived the street rsilway of an appreciable amount of traffic, yet It certainly cannot be claimed that the pri vate automohl'e has displaced the elec tric railway as a public means of convey ance, or that there Is less public need for an efficient rapid transit system than formerly- While the proportion of the public requiring the services of a rapid transit system may be slightly smaller, yet the needs ef that proportion are Just as great as formerly. Furthermose. the general tendency Is for the number of passengers carried per car line to increase, rather than decrease, snd the street rsil way la carrying more passengers today than ever before. While it Is Impossible to predict what the future will develop In the way of Improvements and economics, certainly until a more efficient, more economical and more practicable means nf rapid transit Is found, the electric rail way cannot be said to be obsolete. The California commission. In re San Diego Electric Railway company snd Point I. cm a Railway company as late as November 14, 1919, had this to sav: "The kind of transportation furnished by street railway companies is no longer a monopoly. The development of the au tomobile has brought about a condition where the motor vehicle will automati cally take the place of the street railway If this kind of transportation can be ren dered more economically by automobile than It ran be by the street car. This la especially true in California. I am not convinced, however, that the time has ar rived when our largest cities' can dis pense with their street car systems. I sm else satisfied that the eleetrleally on- more profitable lines of traffic. It appears that the cost would equal If not et.-eert that of the street railway, snd heennse or the narrowness of Portlands streets the congestion of traffic which would La occasioned thereby would make It Im practicable If not prohibitive. ln a case Involving the U"in Traction company the Nevada public service com mission had the following to say con cerning bus line transporlatmn: -Siiggeetlon has been made that sotn mohilee will take rare ef Individual wants snd that common carrier I'i'o h "" msy be substituted for the ciiv stieet car lines. If ft ever becomes necessary sen ouslv to consider the sdoptlen "f such a substitute service, it should l" lae.-.l upon a co-ordinated plan of operation under the ownership of the traction eon.penv. In er der that the alnresald trsnsler schedule) services between the more iniporlent Uono districts sn.l Sparks msv b l.armnn v and profitably maintained at the minimum eost to the public for Hie future, other wise, it will dntiblless be found thst mn autnmnbile bus line eeri Irs. operating In- , epeti4enllv snd upon schedule hcreloloie snd now maintained hy the city car l.n.-s will be more cosily, and It ptebbly mills net he started or long continued upon a ln-cent fare and there would be no Ine trans'er prl lieges as at present. " t P. U, It. m-.'iv i is;. i Although In the past the lltney msv have been able tn compete with the ele. -trio railway on profitable short hauls, where Ihe density of traffic Is great. It comes so far from meeting the require ments of an adequate system of rapid transit, that It is not worthy of coiistdc .a lion. M I now ned Lines Are Tturden. Among the burdens which the company snd the general car rider are required tn bear may be listed the deficit now sc riin g from the operation by the rnmpsnv " certain unowned lines. These lines, which Include the Kings Heights, Arllnslnn Heights, Westover terrace and Krrol Heights were constructed by property own ers and real estate promoters for the pur. pose of developing their re.p.rtHe com munitles and Interests, and since their construction have been operated hr tie company under contracts, the provisions of which guarantee a eerteln minimum reve nue. These contracts, however, are now In defsmtt, and no payments have le.u made to the company under their pro visions for home time, which results In a substantial loss, that the general csr rld-r Is required to meet. It may be of Interest to again quote the California commission In re San Diego Kl.'.'trlo company, wherein certain unprof itable operations were in consideration. "Where public necessity sn.l convenient' docs not demand the cnntlniiatloti of eer. -Ice on a particular line, and where such operating Is not self-supporting, snd where there is no prospect of lis becoming so, then there Is no reason why the balance of the system should l0 burdened with such a loss and the service should be ills. on. tinned, unless there are very strong con siderations of operating or other reasons msklng necessary the continuation er such a service." IP. V. It. 1020 ILL) During the twelve months ending ,lu y 31, 1019, there was received from the op eration of the above-mentioned lines I.V IUN.81. wherca the operating expenses thereof amounted to $23 0lnn. leailng a deficit of $10.014. S3 to be borne by the general car riders of the system. W quote rrom f. s. i nr. oroer ino. 273, Issued October 5. 1917. with rvlcrenrs to the sublect under discussion: "They are operated hy this company un der various aareementH and have never been considered a part of lis property. 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