The city's five per cent tax on Winnipeg Electric Co. earnings was condemned today as a stumbling block to better welfare conditions for tram workers.
Company transportation manager C. H. Dahl aired this grievance during a two-hour questioning by G. S. Thorvaldson, council for the city, at the resumed hearing of the Municipal and Public Utility Board inquiry into proposed transit fare increases.
Mr. Dahl claimed that "Winnipeg stinginess" was forcing men to go elsewhere to seek employment because the company was unable to implement a pension plan.
He maintained the proposed fare increase should be considered in regard to all aspects of the company's transit operations.
The money claimed the five per cent tax by the city could be put to "a better use."
A cramped wage policy unable to compete with other cities, had resulted in the transit company becoming a training ground for linesmen who move to other cities, Mr. Dahl said.
Invited by Mr. Thorvaldson to consider transit operations in relation to other utilities of the company, Mr. Dahl demanded "is five per cent profit too much?"
Mr. Thorvaldson, counsel for the city, asked Mr. Dahl how motor bus operation couuld be lifted out of the red. He was told that the only known way was by curtailment of services.
Outlying routes were cause of the most serious loses, Mr. Thorvaldson observed, in detailing a report which showed an operating loss of $321,920 on motor bus routes.
Listing Charleswood and St. Norbert routes as cause of $50,000 loss in 1947, Mr. Thorvaldson said city passengers were subsidizing service for the outlying areas. City routes, he quoted, showed much smaller losses.
Mr. Thorvaldson thought it was reasonable that people living far from the centre of the city should be aware that bus service might cost more when loses were mounting up.
Mr. Dahl said some of the loss could be cut be increased fares and zoning charges. He said in no case could all the routes be made profitable.
Mr. Mellish took Mr. Dahl to task for saying the company fixed routes in relation to protests that might be raised at the city hall.
Mr. Mellish regretted that decisions might be influenced by political views.
Mr. Thorvaldson suggested that if St. Boniface routes were paved by the local council, "the whole picture" in that district would show a profit.
Mr. Dahl, who failed to agree, said the present service to packing companies and stock yards would not be so well served.
There was no suitable place to turn a trolley service, he added, and asked Mr. Thorvaldson how much enquiries could be associated with the fare application.
Mr. Thorvaldson: A lot.
Mr. Thorvaldson: You redeemed $9,000,000 in bonds last year.
Mr. Dahl: Despite all savings for the first five months of this year, we are in the red to the amount of $26,000.
Mr. Dahl said that the bulk of the street cars dated back to 1912, 1914 and 1920. All of these, he thought, were still being depreciated at the rates of 3.7 per cent and electrical equipment 5 per cent.
He said that gas buses fully depreciated by December 1947, not more than eight or 10 would still ...
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