10
THE OMAHA SUNDAY BEE: MAY 23, 1909.
rfT" "n 'Vmti'imSXW
No. 18
e R&k. C0Beratin.
( Conclusion)
Why
W
For nearly four months past, the Omaha & Council Bluffs
Street Railway Company has published full page articles in the
Sunday newspapers, for the purpose of making itself better
understood by the public.
We have reason to believe that our efforts have met with
a large degree of success. The facts presented were given in
good faith and we believe the information was received in the
same spirit in which it was given.
In taking the position that the public is entitled to know
all the essential facts about our company, we recognized the
mutuality of interest which exists between a street railway
organization and the people.
Very little of the space used was devoted to abstract state
ments, and none to preaching. A determined effort was made
to offer genuine information in a way that could be grasped by
anyone who took the trouble to read it Care was had to in
sure its reliability. No time was wasted in buncombe or in
trying to represent conditions other than as they were.
The history of street railways in Omaha was traced from
the organization of the first horse railway company by local
men in 1867 to the present day. It was shown how large in
vestments were made in horse, cable and electric railways, which
were rendered worthless by the pace of improvements and re
duced to junk value long before worn out It was pointed out
how the first complete electric equipment became wholly inade
quate in less than a dozen years, and by 1902 sufficient only
for a ground work on which to reconstruct and re-equip the
entire system.
Different phases of operation were discussed and an earnest
attempt made to give the public an adequate idea of what con
stitutes the street railway today, and of the tremendous im
provements in urban transportation during the last twenty
years.
It was shown by facts, figures and diagrams that the Omaha
street railway passenger is today receiving far more for his
nickel than ever before, although nearly every element enter
ing into the cost of traction operation has, like the necessities
of life, mounted upwards in the last ten or fifteen years.
It is proper and right that public service corporations
should be required to bear their full share of the burden of tax
ation. The Omaha & Council Bluffs Street Railway Company
pays annually about one-seventh of alL the personal taxes as
sessed in the city of Omaha.
Upon ' the strength of the entire showing, we think we
are justified in asking the7 co-operation of the public to the
extent of meeting us in a friendly spirit in considering our
problem and dealing with questions which affect us.
The co-operation we desire 'is not the kind that would
perform pur work for us or lift our responsibilities from our
shoulders. Rather it is the same appreciation and encourage
ment which is accorded any worthy commercial enterprise
whose labor and ambitions help to make the city great
A large city cannot exist in the United States without
street railways. Neither can street railways exist without
cities. They are mutually dependent.
On the one hand, efficiently conducted railways enable
the people to. spread out over large areas and gain the ad-
vantages of cheaper land and rents and healthier environment;
permit residence and manufacturing districts to be maintained
in distant sections; prompt ease of communication and dis
patch of trade, and make possible frequent journeys for recre
ation and amusement to theater, parks and social gatherings.
On the other hand, the city and its population offer a pat
ronage which should pay the cost of operation and maintenance,
return a fair profit on a large amount of capital necessarily in
vested and allow a margin for depreciation to preserve the in
tegrity of the property.
The street railway company that makes no profit is not a
good thing for a city. The management of such a company
is confronted with a constant struggle to make both ends meet,
and this means the cutting 'down of expenses and consequent
impairment of the service. The property of such a company is
not kept up to operating efficiency; no depreciation fund can
be provided and both the public and the corporation suffer.
Again, a profitless corporation finds it impossible, or very
difficult, to sell bonds or stock to obtain money for improve
ments and extensions. It is forced to incur liabilities in excess
of the actual capital obtained, and these liabilities must later be
liquidated in full.
For thirty years there was,no profit in Omaha street rail
ways. It is only during the last ten years that the property has
succeeded in properly establishing itself. It is now earning 4
per cent dividends on its common 'Stock and 5 per cent on its
preferred stock, and there is, a healthy local demand for its se
curities. . -
0
The street railway system of Omaha today is recognized
all over the country as a splendid system, in sound condition
financially and physically, and in a position to obtain capital for
improvements and extensions on fair terms. It is enabled to
maintain its service at a high standard, and to meet the needs of
a growing community as they arise. Its officers and directors
are constantly engaged with earnest endeavor to secure the
money necessary for the company to keep pace with the grow
ing demands of this great city. We do 'riot expect these de
mands will grow less, but rather that they will increase as time
goes on, and it is a matter of grave importance that this com
pany shall be able ,to continue its policy of expansion rather
than be driven into the necessity of a more economical or
parsimonious policy.
There seems to be much misconception about our use of
the streets, and for that reason we wish to say here a few words
on that subject.
The streets of cities are set apart for the use and conveni
ence of the people, and it is proper and right that they should
be used for the transportation of its inhabitants, whether by
private or public conveyance. Our tracks are in the streets be
cause the people want them there.
In conclusion, let us say that both utility managers and the
people are beginning to realize that there is only one way of
getting a square deal and that is by giving a square deal. All
this company asks is a square deal, and no city can afford to
grant less than this to its street railway corporation.
G. V. WATTLES, President,
Omaha & Council Bluffs Street Railway Company.