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Show CLEVELAND IS NEHRING 3-CENT f ARE. AT LAST 09 Special Correspondence to The Telegram. CLEVELAND, O., Aug. 16. For nearly twenty years there has been a steady erusade in Cleveland for lower street railway fare and better service. The fare has ben 6 cents or eleven tickets for 50 cents, and th. service has been far above the average ln American cities. The company has paid ordinary taxes, an annual license fee of $10 a car. and has paved twenty-two feet of the roadway road-way traversed by Its lines. People, however, sav dividends paid on heavily watered stock; they knew that several other elites were getting better terms, and they demanded the best. Mayor Tom L. Johnson, - serving his third term, was elected largely on the three-cent fare Issue. He worked hard to bring the old company com-pany to tsfrms, but without success. He encouraged the formation of a company to build three-cent fte lines ln streets now unoccupied. The old company tied up this enterprise in the courts. Mayor Tom proposed the formation of a holding company to take over the property prop-erty of the Old company, guarantee to bond and stockholders present Interest and dividends, and to operate the lines at the lowest possible rate ot fare. The company refused to accept the proposition. proposi-tion. Recently the affairs or the three-cent fare line were rescued from the courts. Construction work was begun on two lines, for which the Council long ago granted franchises. Then a holding company was organ- Mayor Johnson Now Wears a Continuous Smile. Ited to operate the lines under a fifty-year fifty-year lease, with the privilege of a fifty-year fifty-year extension. It guarantees to stockholders stock-holders 6 per cent dividends. No bonds will be Issued. The stockfaas been issued at 90. The holding company has the right to buy it in at 110. The first lines ot the company will cover thirteen and one-half miles of double track. Cars, machinery and other equipment ordered long ago are almost ready for delivery. Operation of the lines W planned to begin be-gin ln October. The fare wlU be 3 cents. While the capital stock of the company is $2,000,000, the issue Just put out to cover the thirteen and one-half miles of track first to be operated la $750,000. Of this $400,000 was offered to the public. Mayor Tom L. Johnson and A. B. Du Pont, a well-known expert, who is president presi-dent of the holding company, ln formal statements strongly recommend the stock. The Cleveland Press guaranteed It to Cleveland citizens, the paper offering of-fering to take stock from the hands of dissatisfied stockholders any time within with-in two years and to pay them 6 per cent on the money Invested. Subscriptions for the $400,000 worth of stock amounted to nearly $600,000. Capl- j tallats ln other cities asked for several large blocks. Mayor Dunne of Chicago Indicated his approval by taking $100 worth. Preference was given in the allotment al-lotment to Clevelanders and subscribers for small lots. Mayor Johnson originated this plan of operation, which may be called semi-municipal ownership. Big things are expected ex-pected from It ln Cleveland. Its development devel-opment Is being watched with keen ln- J terest throughout the country. |