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were present:
<br />
<br />At a regular meeting of the City Council, held' July 27th, 1948, there
<br />
<br />Charles 0. Barclay, Fred A. Duke, George L. Grimes, Arthur P. Hen-
<br />derson, Ca~l C. Houghton, Jr., James N. Howa~z~, E, Robie Sturtevant,
<br />C. E. ~Jarren, H. Earl ~Jeiseman, Pearle J. Wilson
<br />
<br /> Vice President Wilson i n the Chair.
<br />
<br /> Minutes of regular meeting held J
<br /> u~y 13th, 1948, were read and approved
<br />
<br /> On motion of ~. Warren, privilege of the floor was granted E.L. Price,
<br />who complained of the lines given him on his lots, corner Randolph and ~ashington Streets.
<br />
<br /> Present ~r. Fox, who took the chair.
<br />
<br />ported as follows:
<br />
<br />The Committee on increase of fa~ef or Portsmouth Transit Company, re -
<br />
<br /> ~Regardin~ request of the Portsmouth T~ansit Company~ dated April l~th,
<br />1948, for certain rate o£ fa~e i~creases sm~d pursuant to your instructions in meeting of Ap-
<br />ril 13th, 1948, the Committee aDpo~$~ for the purpose of studying ~ze said request reports.
<br /> Due to the apparent and to be expected levelling off of economic condi-
<br />tions and the more extensive use of private automobiles, there has been in the past months an
<br />unquestionable general decline int~affic.. This is well supported by the fact that the total
<br />operating revenues of the Transit Company for the twelve months of 194~ were in excess of 10
<br />per cent less titan for the year 1946.
<br /> It is also evident that the general decline in passengers transported
<br />has not yet reached a nat'~_val point of sta'~ility. Income for the first five months of 1948 is
<br />4.3. percent below the five similar month_s of 194V so that it is not un~easonable to approxi-
<br />mate that the income for the year 1948 will further decrease~ a minimt~n of 5 per cent under 194':
<br />In this manner, it is easily discernible that income int we short years will have decreased
<br />the very material figure of' 15 ~e~ cent,
<br /> Du~ing this period of declining income, there _has been no similar de-
<br /> cline in the cost of general operation. Rather has the reverse beentrue amd particularly as
<br /> is set forth by two substantial and ~ell-merited wage increases granted to the employes du~im~f
<br /> 1947 and 1948.
<br /> Careful analysis of the financial sm_d operating reports of the Tmansit
<br />Company has convinced the Committee that every possible retrenchment in expenditures together
<br />with savings by corrected waste in operation have been earnestly practiced. The Committee
<br />furthezauore is of the opinion that the~present ~anagement is efficient, honest and sincere in
<br />its effort to provide safe, s a~i~factory and economical transportation for cur people. How-
<br />ever, most 'disturbing is the finding that, regardless of earnest effort, Transit Company has
<br />actually operated at a substantial loss du~ing the first six months of the currentI year.
<br /> By ordinance adopted July 2~th, 1926, the Council recognized eight per,
<br />cent on the capital invested as a reasonable return and thereF0~e it can not be expected that
<br />bus operation ~ust continue under the said ordinano e when at an actual financial loss. Thus to
<br />alleviate the existing serious situation, pemmit provision for improved service and badly need-
<br />ed additional equipment it is the mature opinion o f the Cov~ittee that relief should be promp~
<br />ly afforded through and by an increased rate of f~are, it is to be bo~ne in mind that the pres-
<br />ent fare rates were established in the year 1926 and it, therefore, can not be successfully
<br />argued that such rates are even remotely adequate in these days of acknowledged extreme high
<br />costs.
<br /> Having concluded that a fare increase is not only necessary, but is
<br />likewise just and fair, the extent themeof was carefully studied. Consideration was given to
<br />a fa~e increase with the privilege of so-called weekly passes; however, investigation demon -
<br />strafed that weekly passes are not only much abused in the mamner of their usage, but s~e
<br />tually revenue reducers. From the most deoendable data available, it was learned that a 10
<br />cents cash ~are, 4 tokens for 30 cents, weekly pass $1,50 s~ud 40 school tickets $1.50, would
<br />yield less revenue than was earned Lu 194V end since the 1947 eaz-nings did not pez~it either
<br />improved service om additional new equipment the Committee does not r ecemmend the adoption of
<br />the weekly pass as being in the public interest. Conclusion in this respect is prompted by
<br />the sincere opinion that the wishes of o'~ people demand i~uproved service, mode,~-n buses and a
<br />continuation o~ the payment of living wages to Transit Company employees.
<br /> Se6tion IV, Sub~ection 6, paragraph 3, sm ordins_uce to regulate ~!otor
<br /> B~s T~ansportation, a dopte~d by the City ~ouncil 'July 28th, 1926, reads:
<br /> ~In the exercise of its reserved power of regulation, the
<br /> Council o~ ti~e City of Portsmouth reserves the right ~to fix
<br /> fares to be charged on the bus system herein provided for,
<br /> and will at all ti_~..es prescribe rates of~re which will per-
<br /> mit a reasonable retuz~n as here. in d efined on the investraent
<br /> in the bus service in the City of
<br /> Section IV~ Subsection 6, paragraphs ~ and 2 of the same ordinance
<br />
<br />reads
<br />
<br />~The rate of cash fare to be put in Force by the gre_utee
<br />when it begins operations ttuder this ordinance shall be
<br />seven cents and four tokens for 25 cents, each of which shall
<br />entitle the passenger using the same to the same rights and
<br />privileges as if a cash fare were paid, and euchres shall
<br />continue for one year thereafter tuatil chs~uge& as herein
<br />provided for.
<br />School children to be sold books of school tickets at the
<br />same orice and under ~e same conditions as those sold by
<br />the C~mpany operating the street railway in the Cityof
<br />Portsmouth. ~
<br />
<br />
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