Jasper County Democrat, Volume 22, Number 38, Rensselaer, Jasper County, 9 August 1919 — CAR INVESTORS ASK FOR RAISE [ARTICLE]

CAR INVESTORS ASK FOR RAISE

Cleveland Capitalists Say High Cost of Living Has Hit Them. WANT 7 PER CENT DIVIDEND Ohio City Fare la Five Cents, With One Cent Transfer, Against Seven In Chicago—Capitalization Is Lower. Cleveland, 0., Aug. B.—While Chicago will pay 7 cents street car fare Cleveland pays 5, with an extra cent for a transfer. This city claims to have reduced fares recently and at the same time Increased wages. But the novel feature of the Cleveland fare situation is the request of stockholders of the surface lines for a larger dividend than 6 per cent on the 5 cent plus fare schedule. “What’s the reason for that?" was asked President John Stanley of the traction company. “Exactly the same reason the men have,” he replied. “The cost of living has gone up for the stockholders as well as for the trainmen. Seven per cent dividend now Is not as much as 6 when the ordinance was granted. See what we have done for the people. We gave them a 3-cent fare for nine years.” City Weighs Request. The city is considering the request seriously. The third arbitrator to decide the question lias been appointed. “It was this way,” explained Fielder Stanton, city traction commissioner. “We had a street car strike of two days. The men struck, and in effect the stockholders struck. Both desired more income. “We increased the wages of the men about 38 per cent and gave residents an opportunity to reduce their car fare about 10 per cent. The fare was 5 cents, five tickets for 25 cents, and an additional 1 cent transfer charge. That remains the same, except that we now sell 11. tickets for 50 cents. “After going that far we agreed to arbitrate the question of raising the stockholders’ dividend from 6 to 7 per cent.” “But how does Cleveland do it?” was asked. “By low capitalization, popular support and scientist management,” replied Judge Stanton. Shorter “Hauls” the Secret. “This is the answer,” said President Stanley. “The average haul in Chicago is about five miles. In Cleveland it is approximately two and one-quar-ter miles. The average fare in Chicago has been 2.84 cents, while in Cleveland in the last seven months it has been 3.85 cents. That’s the whole story.” Chicago has had free transfers. Cleveland brings the passengers to the public square and dumps them out on the street. If they want to transfer they must dig up another cent. That extra cent means about $900,000 a year in revenue, or equal to more than 3 per cent dividend upon the capitalization of $29,000,000. “More than 90 per cent of the traction companies are just going,” continued Mr. Stanley. “Cleveland, Philadelphia and Minneapolis are in good shape at present, but the others are not. The yellow newspapers and the politicians should let up on the traction systems. They should tarp around and help, because the systems' are in poor shape.”