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INCREASED CARFARE IS NOT TO BE ALLOWED
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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.
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THE MOKS1AG OBEGOMAN; WJSDSESDAl', MARCH 24, 1920
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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.
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