OCR Interpretation


The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, September 18, 1920, Image 11

Image and text provided by University of Illinois at Urbana-Champaign Library, Urbana, IL

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn92053933/1920-09-18/ed-1/seq-11/

What is OCR?


Thumbnail for 11

Several months ago President Wilson appointed a Commission to investigate con
ditions which were threatening to break down the -electric railway industry in the
United States. After prolonged hearings this Federal Electric Railways Com
mission has made its report to thePresideht and extracts fxom this report will he
given in succeeding advertisements. - ." .. V :
.v,.s.... :..v. --. ."";";::; .;; : -; . ..; ; - . ,' '
That your local stree railway company is in a serious
financial condition an(J that the report has therefore a strohg bearing on the local
street railway situation is shown by the fact that for the month of August, during
which the present wage scale and rate of fare were' in effect, the company has
earned bn;a conservative estimate of the value of its propertyless than 154 percent
'...'' '-.'.. ' ."L" - - : x . .. . v, - , . .
. v . j : t' .-
- It is thus, perfecty clear that the company cannot continue to give its
" twenty -five cents which it has requested unless the riding increases
greatly or unless the expense of opetationhe greatly reduced.
You would not, nor would any other investor, put ad
ditional money into a -business unless a reasonable return was expected. Please
bear in mind that the return to which this company is entitled has no connection
whatever with the amount of'stock which it has issued, and consequently the talk
of "watered stock" has absolutely no bearing upon this matter. The rate of fare
is based entirely upon the value of the property used in serving the public, and
does not include some valuable real estate which the company owns which is not
devoted to the public service, and consequently it would make no difference in the
rate of fare to be allowed, were the amount of stock doubled tomorrow, without a
corf esponding investment in the property.
The report to President Wilson above referred to indi
cated hoV the receipts could be increased and the expenses greatly decreased and
in this and -succeeding advertisements we will give extracts from this report and
shQW how the recommendations can be followed in this community, and we respectfully request that
' these advertisements be read very carefully,, so that ydu may be fully infprmed in regard to the street
railway problem in your community. 4 '
' Tri-City Railway Company

xml | txt