it I- r v ; O INCREASED CARFARE IS NOT TO BE ALLOWED s Public Serriee Commission Recommends Problem of Taking Over Trackage of System Be Voted Upon by People at Special Election May 21 Commissioner Corey Files Dissenting Opinion Favoring Tariff Rise. o v.. THE MOKS1AG OBEGOMAN; WJSDSESDAl', MARCH 24, 1920 'I 4 :; V .1 S3 ;,:v; A3 ft.' eCttnelnded Trom Pmf a) aidarablr In arrears. If these lines ar to continue to operate under these agreements at an actoai out-of-pocket loss. It should be at the expense of the stockholder and not the Datron. Aa a street railway ven ture they were not a prudent expenditure of money. That this Tact is recoimixea vj the company Is evidenced by Its failure to exercise the option, which it holds under Its agreement with the owners, to take over those lines." It is quite apparent that the majority of these lines could not be put on a paving basis even at a very materially Increased fare, and If the owners or Interests re sponsible for their construction, or those particularly Interested In their operation, are not sufficiently concerned to carry out their part of the operating agreements and ! bw their full share of the burden, cer tainly this commission can not consistently ! require the company to continue to carry the entire load at the expense of the re maining car riders. Service Is Big- Question. Imring the course of this proceedrng- the question of service has been raised by various witnesses, and Inasmuch as the cost of operation and consequently the rate of fare necessary to be charged therefor must depend largely upon the character of service afforded, and the ear rider must pay for the amount of service rendered, this question la a factor worthy of consideration. One witness testified that the service was extremely poor, and the car riders would be willing to pay as much as a 10-ccnt fare. If necessary. In order to ob tain adequate service. Still another wit ness testified that it was better than was af-eded and that it was possible that some aavUig In expense could be effected by a reduction thereof. Still other witnesses testified that it was all that could be ex pected and was entirely satisfactory. Tot comparative purposes we again note that the Seattle system, although with a possible shorter average haul, yet wtlb nearly the same track mileage and num ber of cars in Kervice, carries approximate Jy 40 per cent more passenger per car mile than the Portland Kali way, lAght & Power company. From a persual of this testimony, and from personal Investigations made by the commission, we are of the opinion that with possibly a few exceptions, the service now afforded is reasonably satisfactory and as Kood as the car riders desire to pay for. "While a material saving In operating ex penses might result from general service reductions, we do not believe such a plan would meet with favor In the eyes of the car-riding public. Conclusion Is Given. The topic of street railways has been the subject of broad discussion since the yejrinning- of the war. Beyond doubt the question is a serious one and, since the national administration has refused to In t erf ere. It devolves upon the states and municipalities to solve. In the state of Oregon this duty Is by law imposed upon this commission, aa a tribunal constituted to hear and determine the applications of public utilities. To perform this function the commission Is presumed to use aver age intellicence raided by reason and Justira, and its oraers have that judicial standing in law that warrants enforce ment until there la a reversal by a higher judicial tribunal. Our vision, therefore, should not be so circumscribed as to pre vent us from following new and practical plans. The commission finds no appreciable difference between this application and the many others It has had under advisement In previous wears, but times have changed. People and governments are becoming more progressive. Justice must prevail if we desire to preserve the utilities, indus tries and our country. If Portland is to continue to advance and hold lis place among the larger cities of the west, an efficient system of rapid transit Is Indispensable and. must be main tained. Failure of such system would prove not only injurious to the reputation of the city but would also redound to the detriment of the business interests and the people generally. Were thi3 commission obsesed with the idea that an immediate increase In fares is the one and only solution for the transit problem an order to that ef fect could readily be issued. Such action xnisrht, however, be construed as an at tempt upon our part to Influence, by duress, the votes of the electorate, and we believe it til advised to take any action hich might be so interpreted. We believe the voter should be allowed to express his views upon the principles involved in this situation, uninfluenced by any order la surd fixing fares. We are suggesting the car rider. In these extraordinary times, have his prerogative as h citizen to exercise his right of suf frage and an opportunity to participate tn this municipal regulation; a chance to say whether or not the streets and bridges of Portland were dedicated to one class to the exclusion of himself, and go fur ther to say whether the car tracks are part ctf the streets occupied, and therefore to be owned and maintained as other streets of the city of Portland. We are not prepossessed with municipal ownership and operation of the street car svstcm as a whole, but we do believe that the Ftreet car tracks are part of the streets of Portland and as such these atrrts should be owned from curb to curb and maintained as any other streets. In ths purchase of the tracks and the re lief of the public burdens lies the prospect of a .reduced fare and the taxpayer's op portunity to assume an equitable propor tion of the expense of the transit system. When such a plan as herein outlined can b offered to the people for an expression of their sentiment, it is clearly our duty to a !low those who bear the burden an opportunity to Indicate their desires. We believe that in a period of reconstruction, such aa the country is passing through at this time, we should be fully adviped of the desires of the majority of people af fected before attempting to employ. meth ods which experience teaches, have gen erally failed to produce the desired effect. There is a distinct sentiment at this time on the part of the public to remedy the situation and we are of the opinion that the electorate should ery properly, especially in view of the impending elec tion, be now afforded the opportunity to consider and promptly decide the ques tion. To do otherwise would be bureau er a tic After full consideration of all phases of the subjects herein presented, the com mission is of the opinion that final action herein should be held in abeyance, and the matter continued upon the dockets of the cnmm'wion for tifh further action as may OF CHILD'S LAXATIVE Look at tongue! Remove poi sons from stomach, liver and bowels Accept "California" Syrup of Figs e-nly look for the name California on the package, then you are sure your child la having the best and most harmless laxative or physic for the little stomach, liver and bowels. Chil dren love Its delicious fruity taste. Full directions for child's dose on each bottle. Give It without fear. Mother! Toa must aay California." be found meet and proper m the premises. and It is so ordered. Dated at Salem, Or., this twenty-third day of March, 1920. PUBLIC SERVICE COMMISSION OS OREGON, By FRED O. BUCHTEL, TRED Jl, WILLIAMS. (FesJ Commissioners. ATTEST: D. WRIGHT, Secretary. Corey Does Not Coocmr. Commissioner Corey's statement of rea sons for nonconcurrence In the majority opinion of the commission follows: I cannot concur in the majority opinion for the following; reasons: After ont of the most careful and ex haustive investigations ever made by this commission. It issued Its order on Janu ary 5. 1018. effective January 15. 1913, fix in a 6 -cent fre for the Portland Railway, Light A Power company's street car strv ice In the city of Portland, and it was fur ther ordered that the car company should render to this commission regular reports of its operation under the increased rate allowed that the commission mig-nt be kept fully advised. These rates were duly pot Into effect and have been continued to the present , time. Verified reports made to this com mission and exhibits introduced at the hearing; held . on the present application September '21, 1919, and final hearing Feb ruary 2 to 6, Inclusive, 1920, show conclu sively that there was no decrease In earn ings of the company on account of the said Increase in rates. The cross earnings con stantly Increased until January, 1020. The gross earnings for February. 1920, was approximately $25,000 less than for Feb ruary, 1919. The net earnings, however, have constantly decreased, owing to un precedented increases in wages to em ployes (three increases have been award ed by federal and other boards since our former order) and corresponding increase In cost of materials and supplies. Th- record herein, supported by the com mission's investigation through its en gineers and accountants, as well as that made by the city of Portland througrh J. P. Newell, an eminent engineer, and Alexan der Youn, expert accountant; also the in vestigation made by E. H. Hopson, an engineer of many years' practice, who vol untarily devoted much of his valuable time toward solving this perplexing problem on an equitable basis to all concerned, as well as the stipulation tetween the city of Portland and the Portland Railway, Light &. Power company, under date January 10, 1920, upon which the application of the city of Portland for extension of a street railway line to St. Johns terminal was re cently dismissed by this commission on the stipulation of the city of Portland, "That the Portland Railway. Light & Power company has not and cannot obtain the necessary funds with which to con struct said extension, proves conclusively to my mind that the gravity of the com pany s financial distress demands lmme diate reMef. Both Mr. Newell and Mr. Hopton have stated hi the re -ord that a rate in excess of a 7-cent fare Is necessary to cover operating costs and meet other financial obligations and give a fair return upon the pre-war value of this plant, as fixed by this commission. It was also definitely determined by Mr. Newell that the total operating expenses and deductions from Income amount o 7.15 cents per revenue passenger. If a 7 per cent return was to be allowed this utility en the Sfi.000.000 over bonded Indebtedness representing stockholders' equity assigned to street railways, the cost per revenue passenger wouia oe 7.7tt cents. If a return of 7 per cent be provided, the deficiency amounts to approximately $85,000 per month, or $1,000,000 per year. Tn addition to the cash requirement here shown, an additional amount of $20, 00O per month was found to be necessary for deferred maintenance. I am fully aware that higher fares do rot always produce increased revenue. A study of the results obtained from 7-cent farei in 20 of the 120 cities having 7-cent fares ehows that such increases do not produce a 40 per cent Increase over the 5-cent fare. Sucn Increases have averaged about 20 per cent. Normally, the loss in traffic, therefore, eems to be progressive, as the rate increases. ew Rates Favored. As no one can foretell the exact remit 0? any schedule of rates we may prescribe, I believe, under the circumstances sur rounding this case and in order to assure a continuity of adeauate service, nnhiin opinion will ruroort the commiiuinn in allowing a large measure of liberty in try ing oui new rates. The public is fair minded if it once understands the facts and will not oppose an increase in fares wnen trie cards are all laid on the table, as has been done in this case, so the situa tion may be made clear. The public Is beginning to realize It is now more a case of what service shall be rendered than wnat return shall be given the street car company. As any further increase in fares normal !r may be expected to reduce riding some what, the problem before us in mv onin Ion is to preserve as much as possible the traffic and at the same time increase the revenue. It is needless to state that the street-car service in Portland is an abso lute necessity. o other transnortation fa cility is ready to take its place and render equivalent service at anywhere near the price the record herein to my mind, shows to oe necessary. Quoting also from the findings unrt nr. ders of the Massachusetts commission from which the quotations used In support of the mammy decisions were made: "This commission was created, we sume. to protect the ventral nublic terest. Lnder present abnormal condi tions, dealing with a situation so critical as the one by which we are now confront ed, where the solution offered by the com pany is so uncertain and bazardous, we be lieve we are justified in disregarding speculative estimates or arbitrary rules, and in taking the action which our best judgment leads us to believe will secure the beet net results for all concerned. The company is in dire need of additional rev enue, if only to provide a safe margin aoove necessary expense of operation Stating our proposition broadly, we pro pose to authorize for a brief trial period an increase in rates which seems likelv. In our opinion, to produce a larger actual gain In receipts than the tariff nronosed by the company, and will at the same time result in less serious damage to the com munity, leaving the future to be dealt with in a manner which we shall hereinafter indicate. "In proposing this new schedule the com mission desires to impress upon the com munities as strongly as it can the need for fuil co-operation with the company. Whatever may have been the sins or errors of the past, the water is over the dam and little good can come from dwelling upon them now. Moreover, it is clear ttmt the chief factor in the present un fortunate plight of the company is the recent extraordinary rise in wages and prices, rather than any of these thlngfl. It Is a condition by which the public is now conrronted. The problem is not one of securing any Immediate return of any particular amount on the Investment.' but of meeting the necessary and unavoidable cost or lurntshing the service, ir the rail way should be sold at a foreclosure o receiver's sale, and even if it should be split up Into a number of different parts, the rame problem would remain under present conditions. Following which language the Mass a chusetts commission then prescribed and ordered a 10-cent cash street-car fare with tickets in quantities at 7 cents each. In the order of the Rhode Island com mission from which supporting quotation was also made. It prescribed two-miie zones with 6-cent fare for each with s 2-cent transfer. The cost of operating the street cars, manifestly, must be borne by some one. either by the investor, the car rider or the public through taxes. I am or the opinion that close co-operation between the in vestor, the rider and the public must ob tain to secure the best results. The in vestor through the circumstance of un fortunate investment in the plant, must share with the car rider and the public, and cannot hope, under present conditions, to obtain a liberal return upon his in vestment, and more especially so when it did not receive an ample return during normal limes, low street-car fares are of sucn importance to the city of Portland that the street-car service, as a business, should not he operated for the purpose of exploiting the car rider for the relief of the public. Special taxes and lmnosts such as bridge rentals, paving and free transportation ef city employes, ostensibly placed on the company are all borne by the car riders, and these imposts all un duly increase the cost of the service and may, very properly, be assumed bv the city of Portland and paid out of taxes. Testimony does not, however, disclosa that the removal of these imposts would materially reduce the rate of fare as a fare In excess of cents would still be necessary under present conditions. Lnder the present state of facts disclosed do not believe that either the smount i of investment or re rair value of the property used In the ptrblie service by this company is necessarily the measure by which we must determine a Just and rea sonable rate in this instance. The public does net narasn mobile utility property ail omnwcasl dlfHooitx. Ia de termining a just and reasonable rate, under the present circumstances. It must be ar rived at by finding a commercial price which will insure the greatest amount of revenue and at the same time will be a fair price alike to the utility and to the public, and such rate should not exceed the value of the service rendered, regard less of losses which are to be suffered by a utility which may have. Inadvisedly, constructed Us lines so as to too closely parallel the same and which may have entered Into contracts to afford service in sparsely settled -districts which have proved to be a burden to both the company and the car rider. I do not believe, however, that after an unproductive line has been built and equipped it should be abandoned If it would also be lost by abandonment. I am of the opinion a transfer charge might be equitably made in such instances, thus removing part of the burden of maintain ing same from the other car riders who are in no way responsible for the promo tion of real estate venturea Difference Not Seen. I fall to see wherein this application differ- materially from the many that have been passed upon recently by this commission and substantial increases al lowed thereon. Further, in my opinion, a purely ad ministrative body such as this commis sion, created to carry into effect the acts of the legislature, is not justified In with holding aid where it Is so clearly demon strated that an emergency exists, and cer tainly not authorized to exercise an ar bitrary act in order to force favorable legislation in the Interests of the company and the car riders. I am not aware that there Is any concerted action to place a measure for relief on the ballot, and as the time remaining now In which to do so is very limited, in Justice it seems to me the car company Is at once entitled to some relief. Tho record herein discloses that the re moval of all imposts possible by the ballot (less than $250,000) Is only one-fourth of the amount the record shows to be neces sary. The removal of these unjust charges would but reduce the amount of fare by one-half cent less than would otherwise be necessary. Ielay in relief until after the primary election in May In order to give the public another opportunity of voting on the question of elimination of the municipal imposts, even if successful, would place the car company in such dire straits financially at that time that I be-, lieve an eight-cent fare would be found necessary, notwithstanding the elimina tion of the burdens referred to. In my opinion, a reasonable increase In car fare at this time, sufficient at least to assure good service, need not Interfere with the placing of the measure upon the ballot, and after the voters have regis tered their desires in the matter, the commission could again review the rates. as ft will have to do in either event. Four months after the six-cent fare order the city decided not to abolish municipal Imposts by a vote of 27,327 against 5S67 for. The voters having re fused to rel (eve the car company from approximately $200,000 imposts In 191 A, I do not believe are going to vote this year to relieve the car company of said sum and obligate the city to expend so, 000.000 to acquire the street car tracks. and to go into partnership with the car company to an extent never before at tempted by any city in the United Statea The only city of which I am aware that is the owner of the street car tracks, other than those cities wherein municipal owner ship obtains. Is in Canada. Said city owns the car tracks which are leased te the car companies, but it is a well-known fact that maintenance has always been so far deferred- by the city that the track Is con stantly in a hazardous condition. Based upon the foregoing and the record herein, justice demands that at least a seven-cent fare with a one-cent transfer: with 50-ride tickets for $3.25; unlimited school children's tickets to remain at four cents each, is necessary to Insure con tinuity of service, and redound to the best Interests of the car rider, the city of Portland and the street car company. "Justice," said Daniel Webster, "Is the greatest interest of man on earth. It is the ligature which holds civilized beings and civilized nations together. Wherever Its temple stands, and so long as it is honored, there is a foundation for social security, general happiness and the im provement and progress of our race. H. ri. i-t rt p.. i , Commissioner. UP 1 CENT RETAIL. PRICE 18 Vx CEVTS LN SAX FRAXCaSCO. "Xew York Quotations' Ciwn as Reason Tor Increase on Tacific Coast. SAN FRANCISCO. March 23. Cane sugar supplied to Pacific coast points by the Western Sugar Refining com pany advanced from 15 to 18 cents a pound wholesale today, according to an announcement by the refinery here. The California-Hawaiian Sugar Re fining company, the other company supplying 6ugar to coast points, had not advanced its prices, it was an nounced. "The New York market quotations" was given as the reason for the raise. As a result of today's advance sugar will retail at 18 cents a pound here and at the same price plus the freight rate from the San Francisco eaboard at other coast and interior points that are supplied from here. Executives of the California Retail Grocers' association said that the rise brought sugar up to its highest price since the civil war. It was the second raise In four days, the wholesale price having been raised from 14 to 15 cents last Saturday. LIGHT PENALTY IMPOSED Men Indicted for Burglary. Get Larceny Sentences. County jail sentences of one year each were Imposed on Roll a Donley and George Miller when they ap peared before Judge McCourt yester day and pleaded guilty to complaints charging simple larceny. The two had been indicted for burglary, but it developed in court yesterday that police inspectors had promised to procure light sentences for them if they would admit the burglaries and assist the police In re turning the .stolen loot to the owners. t "Neither of these men is deserving of Clemency in any degree, but I am permitting them to plead guilty to the lesser charge because they were promised certain considerations by the police, - said . Judge McCourt in pronouncing sentence. "They helped to recover property stolen from people who could ill afford to lose it." Donley has served three terms in the Oregon state penitentiary for burglary, while Miller has served one term for a like offence. CRITICISM RIGHT UPHELD John Z.' White, Chicago Lecturer, Says Duty to Criticize. "It is not only our right but our duty to criticize our government- not offensively, but with the object of pointing out its weak spots and helping to make it the democratic sovereignty which we boast it to be," were the words with which John Z. White, Chicago lecturer, closed his talk at the Kiwanis club luncheon yesterday at the Benson hotel. Sergeant Marco and Corporal Wer ner of the Roving Marines . con tributed a bugle duet, and Commis sioner S. C. Pier reported a guaran teed fund of $5000 and submitted plans for the schemes of decoration to be used in the Kiwanis convention hers on June K-la. These decora- FOR YOUNG MEN AND MEN WHO STAY YOUNG vix-!"ir';-x-r-;-;"'-'-'"'. v"""."X-;X;M'M;-!r,;-;-x;-M;-: vx vx wx!vx xx ;-" xxxxxX"xx;x;;:,""" x ':.. . . xx -xx vX'Xvx-XvXvX-X'X ' x " '. xx x ' ' x v X '. x x x ' -1 wi t- tit V I 1 NX . V S $r - W I !,': At w a $ M ' ;v ) Wgfii'J ''4 I idbhm liiir. .ill w n , to 0 rfttftCSl that rpnrpQprifc fhp cnirif nf fhf fimpQ vnnffiful nnrl ilW? refreshing:, appealing to father as well as son that is the style that distinguishes Society Brand Clothes. Our designing videas and painstaking workmanship produce that finer quality of style and finish. It cannot be done by all-wool fabric and silk trimmings alone. WITH THE VARIED GRADES OF CLOTHING . FLOODING THE MARKET, LOOK FOR THE LABEL AS YOUR GUIDE UIUD PBCKIB COHM, tec, I . - Chicago tOCIITT BJLAJI CLOTH El, timtui. far CtmM New York Montreal rSraosOiis mm A. D. C o Third Floor Tut Quality" Storr or Portland Third Floor tions will remain during the Shriners' convention. . Pheasants to JBe Liberated., ALBANT; Or., Mareh Jl. (Special.) One hundred and fifty China pheas ants from the stats game farm near Corvallis will b. -liberated in Linn coonty next Friday. Half of them will be turned loose on the farm of A. H. Blevins, near Tangent, and the others on the farm of A. O. Propst, about five miles east of Albany. Qulnault Mill Worker Is Hurt. RAYMOND, Wash, March 23. Spe- cial.) Walter Wagner, spottlng-on edger at the Quinault Lumber com pany., was seriously injured while en deavoring to, free a stick which had become lodged in the edger. .A heavy cant was thrown from the machine, the end of it striking Wagner In the side. He was taken - to iUvervlew hospital, wher. would recover. It was thought he Grandchild Is Adopted. OREGON CTT S. Or.. Merch 23. (Special.) The petition of George and Ida Clifford for the adoption of Iris McDanlels was granted in the clr- cult court Tuesday. The child is the daughter of A. K. and Olga A. Mc Danlclh, the latter a daughter of (he' petitioner. Tho mother, who Is deail. had aslie.i her rurent to iiilop! Ihe rhild, whopr custody find hr'n aht n' her when die W"i Kinnteil a i;or-r from her husband. The father fouKlil the case. r. I - i.' -' I w 8 '. X, 0.5 1.0