BEFORE THE NATIONAL WAR LABOR BOARD. IN RE MEDIATION PROCEEDINGS BETWEEN DIVISION 268 OF THE AMALGAMATED ASSOCIATION OF STREET AND ELECTRIC RAILWAY EMPLOYES OF AMERICA AND THE CLEVELAND RAILWAY COMPANY. EB STATEMENT OF THE CLEVELAND RAILWAY COMPANY. JUNE, 1918, SQUIRE, SANDERS & DEMPSEY, GENERAL COUNSEL. V" 33 )' ) , C598u IN RE MEDIATION PROCEEDINGS BETWEEN DIVISION 268 OF THE AMALGAMATED ASSO- CIATION OF STREET AND ELECTRIC RAILWAY EMPLOYES OF AMERICA And THE CLEVELAND RAILWAY COMPANY. STATEMENT OF THE CLEVELAND RAILWAY COMPANY. June, 1918. The Cleveland Railway Company was organized in 1893 under the name of The Cleveland Electric Railway Company, by the statutory consolidation of a number of electric railway companies. In 1903 it acquired by purchase the property and franchises of The Cleveland City Railway Company, and thereby became the sole owner of all the traction properties in Cleveland and in several adjoining municipalities. The properties in Cleveland were operated under franchises from the city, limited both as to duration and rates of fare. For several years prior to 1908, a controversy was waged between the city and the company with reference to the re- newal of its franchises. This controversy became famous as a fight for and against three-cent fare. In April, 1908, the company was granted a renewal of its ^ '-franchises for a period of twenty-five years, the rate of fare • being fixed at six tickets for twenty-five cents, and, as part • of the arrangement, the company was required to lease all ~ of its properties to a company organized and known as The A Municipal Traction Company, which was a private corpora- ^ tion organized by city officials. Under this arrangement, into which The Cleveland Railway Company was forced by the expiration of its franchises, and to prevent further confisca- V-^^tion, the company agreed to and did reduce its capital stock U 45%, and to accept interest on the remaining 55% at the rate of six per cent per annum and no more, the company realizing that in this action it was forced to submit to confiscation of \ 1 its property to the extent of approximately five millions of dollars. The Municipal Traction Company took possession of the property under this lease, and operated it until the following October, when the franchise referred to was defeated by a vote of the people. The Municipal Traction Company in the meantime became insolvent, and receivers were appointed by the Hon. Robert W. Tayler in the United States District Court for the Northern District of Ohio for the entire properties of The Cleveland Railway Company then in the hands of its lessee, The Municipal Traction Company, which, as before stated, had been organized by city officials. While the property was within the control of the court, and after efforts between the city and the company to settle had failed, and it had been demonstrated that the slogan of three-cent-fare was a myth, that you cannot render continu- ously for any great length of time for three cents more service than three cents will pay for, and people had come to realize that street-railroading was to some extent like other business enterprises wherein an amount must be paid at least equal to the cost of service, Judge Tayler announced a plan of settle- ment, which was adopted, and ever since has been known as the “Tayler Plan.” This Tayler Plan, it may be remarked in passing, is in some respects more dangerous than the Johnson three-cent- fare plan. It is more specious. It will take longer for the public to realize that the greatest good and the best service cannot come to the public through its operation. We now hear of its adoption being talked of by other cities and com- munities, and we wish to give this word of warning, — that, while it has many attractive features, so attractive that it was accepted in good faith by The Cleveland Railway Company, which committed itself to operate, and is now trying to oper- ate, under it in the best of faith, it is doing so notwithstand- ing that many of its people believe that fundamentally it is fallacious. Every commercial enterprise, to be successful, must offer a reward, — a reward of merit for efficient, economical man- agement. It must be a reward that attracts the best talent, a reward that stimulates and produces initiative, a reward that leads able men to devote their lives to the enterprise. After all, the men are few who have the genius to make great development. These few men are born leaders. They must be encouraged, and must be permitted to point out the way. Some men and some organizations will make great successes, while others in the same field will make great failures. The successes must be promoted, the failures prevented if possible. But above all must be integrity ; and deliberate bad faith must be avoided. 2 In order to obtain the money necessary to extend and better the property, the investment must be protected and reward promised sufficient to attract, under all conditions, sufficient capital with which to make additions and betterments at the times when they will be most beneficial to the public, and at the same time conserve the property. In a growing community many extensions must be made which do not pay ; but they provide for the future and anticipate the growth of the communities. The Cleveland Railway Company not only affords street railroad facilities to the city of Cleveland, but as well to some six or seven other municipalities having the same corporate rights as has the city of Cleveland, and these varous munici- palities feel that they have exactly the same right to control the street railway within their respective limits as has the city of Cleveland within its corporate limits. Among the ad- vocates of municipal ownership — and we have had a great many of them in Cleveland — no one of them has carried municipal ownership to its logical conclusion. Rather, they have wanted municipal speculation; that is, to have the City of Cleveland not only own and control the street railway with- in its own boundaries, but the street railway within the six or seven other municipalities that is just as much and just as essentially a part of the system as that portion within the city of Cleveland. These other municipalities naturally feel that they are entitled to absolutely the same rights of man- agement within their municipal borders as is the City of Cleve- land within its municipal limits, so that it takes only a mom- ent’s thought to demonstrate that municipal ownership of simply the property within the borders of a municipality is something not to be desired by any one. Control of all rail- ways, steam and electric, by proper authorities and proper supervision, is desirable, but the control that takes away initiative, that removes the promise of reward for good service and for keeping the property up to the highest point of effi- ciency, is fundamentally in violation of economic laws, in that legislatures and municipalities cannot, in the end, control abso- lutely without serious injury to the public. Right here may not be out of place a few words upon the question of “service at cost,” to which The Cleveland Railway Company is committed. There is no such thing as absolute service at cost. It must be approximate. The company today, after trying for eight years, with the earnest co-operation and assistance of the city, to earn expenses, taxes and interest at a rate of fare of three cents per passenger, or three cents plus a cent for a transfer, postponing, at the request of the city, the writing off of the value of obsolete property, instead of providing for obsolescence and depreciation from current earnings at a higher fare, has sustained an actual diminution 3 in capital value of nearly ten per cent — which, of course, must be made good from future earnings — and is still running be- hind, although the maximum rate is now in effect. Of the thirty-four lines of railway operated by the company less than half are paying, as shown by tables in its last monthly report, a copy of which tables is hereto attached, marked “Exhibit No. 6” and “Exhibit No. 7,” fewer than half are paying, and these are carrying the other half or more ; so that riders in one part of the community accommodated by the street rail- way company are paying more than cost, for the benefit of the riders upon the more than seventeen lines which are con- stantly losing. Some of the poor lines have been built in response to an absolute demand, under the city’s direction and compulsion, when the city, had it looked into the subject at all, would have known that such lines would not pay for years to come. This not to criticise their building, because undoubt- edly the lines were needed, but to emphasize the proposition that cost of service can be at best only approximate, but must absolutely protect the capital which has been invested and which must continue to be invested. The least deviation from this unalterable principle drives away capital and prevents the company from afterwards procuring it except upon paying a higher rate than it should pay if its good faith were absolutely established and recognized. The Tayler Plan, otherwise known as the “Service-for- Cost Plan,” was incorporated in an ordinance enacted by the council of the city of Cleveland on the 18th day of December, 1909.* This ordinance was accepted by the company and ratified by the people, and the company resumed possession of its property on the first day of March, 1910, since which time it has operated its entire system in accordance with the provisions of said ordinance and certain amendments thereto which it is not now important to consider. Prior to the adop- tion of the ordinance, Judge Tayler, after a long hearing, fixed the valuation of the company’s property at approximately $23,000,000, and the company was permitted to issue securities in that amount. This valuation, in the judgment of many of the large interests in the company, caused a loss of from three to five millions of dollars from what they knew they should have been allowed. The basic principle of the Tayler Plan is expressed in the preamble, as follows: “Whereas, it is agreed that a complete readjustment of the street railroad situation should be made, upon terms that will secure to the owners of the property in- vested in street railroads security as to their property , and a fair and fixed rate of return thereon, at the same time securing to the public the largest powers of regula- *A copy was introduced in evidence at the hearing in Chicago and marked “Exhibit No. 4.” Another copy is attached to this statement. 4 tion in the interest of public service, and the best street railroad transportation at cost, consistent with the secur- ity of the property, and the certainty of a fixed return thereon, and no more.” This ordinance must be studied in order to be compre- hended, but section 16 thereof, after defining how the capital value is arrived at, and providing for the payment of interest upon the outstanding bonds and also upon the floating indebt- edness of the company, makes the following provision: “The company may issue and sell its capital stock or mortgage bonds, said stock being sold for not less than par, and said bonds on a basis which will not be in excess of six (6) per cent on par and will include in such rate provision for amortising the discount, if such bonds are sold at a discount, or increase its floating indebtedness, in such amounts as shall be necessary to capitalize the debt enumerated in said paragraph (b), or to provide for such extensions, betterments or permanent improvements as it is by this ordinance provided may be added to the capital value upon which interest is to be paid; and the par value of the stocks or bonds sold or debt created for such purpose shall become part of the capital value; and if bonds are sold at a premium, such premium shall be used for extensions, betterments or permanent improve- ments, or for paying any then existing indebtedness of the company. After meeting the payments heretofore provided for by this section, there shall be paid, from the remainder of said interest fund, to the stockholders, from the taking- effect of this ordinance, quarterly, a sum equal to six (6) per cent per annum, payable quarterly, upon the residue of capital value and additions thereto, as provided by paragraph (c) hereof.” The purpose of the ordinance is again clearly stated in section 47, as follows: “The purpose of this ordinance is to establish and settle the relations between the city of Cleveland and The Cleveland Railway Company by a contract which will se- cure to The Cleveland Railway Company, unimpaired, the capital value described in section 16 hereof, and the rates of return thereon provided in said section, and which will also secure to the city of Cleveland adequate and efficient service at the cost thereof, not exceeding the maximum rate of fare specified in section 22.” The effect of the ordinance, therefore, was to require the company to provide adequate service at cost, which cost should include interest on the bonded indebtedness of the company and a rate of interest to the stockholders of six per cent per 5 annum and no more; to accomplish which a schedule of fares was established, as set forth in section 22, to-wit : “The maximum rate of fare for a single continuous ride within the present limits of the city of Cleveland, in one direction, over any route of said company, shall be four (4) cents cash fare, seven tickets for twenty-five cents, one cent (lc) transfer, no rebate; and, including said maximum rate, the following schedule or scale of fares is hereby established.” (See ordinance, section 22, for complete schedule.) Apropos of this ordinance, Judge Tayler made an address upon the subject of the street railway settlement on February 26, 1910, a copy of which address, marked “Exhibit No. 8,” is attached hereto for reference. The following is a quotation from that address : “There is a large duty, than which none is higher, on the managers of this street railroad property during the next few years. They must not content themselves with the one thought that they have a vested right, in perpetuity, to operate this property. They must rise to a conception of the fact that they owe a duty to the public, distinguished from the mere duty of operating the prop- erty. They are pledged to do justice to the community; and I do not question their purpose to do so. But it will not be harmful, since I am covering the various elements of the community in respect to the duty that they owe at this juncture, to make reference to them. If those in the immediate management of the property do not wisely or fairly or justly manage it, having regard to the public — because their interests are absolutely protected in the property, and there ought to be no part of this community more earnestly, or personally self deny ingly, submitting their case to the arbitrament of the public than those who are in the management of it, because they are under no financial risk in doing it — if the management will not do it, then the public spirit and public honesty of the board of directors ought to see that it is done that way ; and if they won’t do it, then the five or six thousand shareholders in this community ought to see that a board of directors is elected that will do it; because not one of them, from manager down to the humblest stockholder, has, in truth or in fact, any real or different interest in the solution of the problem and the working out of the plan than the poorest rider on the cars, who has no other interest in it than to pay his money and take his ride.” The management of the street railroad property and those in control for the past eight years have cooperated with the city to the limit, and even beyond it; so that they are now 6 facing an actual (temporary, it is to be hoped) depletion of their property to the extent of more than ten per cent. Adverting again to “service at cost” not being a correct principle fundamentally, the Commission is undoubtedly fa- miliar with what is being done in the express company com- bine. We do not know the details at all, but the principle, as stated in a news item,* is such that it allows dividends on stock at the rate of five per cent, and makes a division with the government of any additional earnings; so that there is a stimulus on the part of the management towards initiative and efficiency in the development of the property so as to increase earnings. In some cities the stock of street railroad com- panies has been permitted, after payment of an agreed per- centage, to share in increased earnings, the city receiving a part of such increase and the stockholders retaining another part. Without at all attempting to determine what will be the final evolution and what goal we must all work towards, it would seem, speaking from principle, that some regulation along the line of sharing with those who furnish the manage- ment, the initiative and the capital, increased earnings and increased development, is much nearer the attainment of cor- rect fundamentals than the “service-at-cost” idea, which cer- tainly is impossible of attainment, and is wrong in principle. Another thing that “service at cost” does not take into account at all is the treatment of employes after long years of service, when it is proper and reasonable to retire them. No allowance is made to The Cleveland Railway Company for anything of that kind. Those connected with its manage- ment have always felt that some provision should be made, by which, after men reach a certain age or become disabled, some pension might be given them or other humane provision made for them. Nothing of that kind can be done under the Tayler ordinance or under any plan that is simply “service at cost.” Under the ordinance, no improvements have been or can be made without the express approval of the city. During the life of the grant thus far, the company has added to its capi- talization, for the purpose of taking up its bonds and for im- provements and extensions, about $14,000,000, all of which added capital has been supplied either at the request of the city or with its express approval. The capital value of the company is now $34,000,000, approximately, every dollar of which represents actual investment and is entitled to be pro- tected. Section 9 provides: “The city reserves to itself the entire control of the service, including the right to fix schedules and routes, *See Exhibit No. 9. 7 including routes and terminals of interurban cars, the character of the cars, the right to increase or diminish service, provided only that the council shall not require service to an extent which, at the maximum rate of fare, will not produce, to be credited to the interest fund, money enough to make good any loss therein, and to meet the requirements of sections 16 and 18 hereof . . . Section 10 of the ordinance provides for the appointment of a representative of the city to be known as the “City Street Railroad Commissioner,” whose duty, generally speaking, is to represent the city in seeing that the road is operated by the company in accordance with the terms of its franchise. The initial rate of fare was fixed at three cents cash fare, plus one cent for a transfer, without rebate. The company is now operating at the maximum rate permitted by the ord- inance; that is, four cents cash or seven tickets for twenty-five cents, and one cent for transfer. On the first day of January, 1918, the company had sus- tained a net loss, as the result of eight years’ operation, of $2,612,552.72, and, to that extent, its capital has become im- paired. It has yielded to this impairment in an endeavor to act in the spirit in which Judge Tayler requested the street railway officials to carry out the terms of the ordinance, and in reliance upon the faith of the city in permitting, as it must, the impairment to be made good by increasing the rate of fare, without curtailing the service which the city wishes. The com- pany has been, and is, reluctant to resort to depriving the seventeen non-paying lines of sufficient service to accommodate the public. It hopes not to be driven to any such necessity. In addition to this deficit, the company has no reserve fund for renewals or replacements. Any good business enter- prise, economically managed, must be permitted to establish a reserve fund. On the first of January, 1918, there was pending against the company litigation involving claims in excess of five mil- lion dollars, as the result of personal injuries, etc., and the company has no reserve or surplus of any kind whatever to protect it against such claims. Under any fair treatment, it should be permitted to have some reserve or contingent fund with which to meet great calamities. Within the period of eight years mentioned more than one accident has happened that has called for the immediate payment of many thousands of dollars, but no fund is available for such purpose. The following table shows the wages of the trainmen from March 1, 1910, to May 1, 1918. And bear in mind that during this period wages have always been adjusted by agree- ment between representatives of the company and the men. Previous to March 1, 1910, 22 cents per hour in the first 8 year, 24 cents per hour in the second year, 25 cents per hour thereafter. From March 1, 1910, to June 15, 1910, 23 cents per hour in the first year, 25 cents per hour in second year, 26 cents per hour thereafter. From June 15, 1910, to May 1, 1915, 27 cents per hour in first year, 30 cents per hour thereafter. From May 1, 1915, to May 1, 1916, 29 cents per hour in first year, 32 cents per hour thereafter. From May 1, 1916, to May 1, 1917, 31 cents per hour in first year, and 34 cents per hour thereafter. From May 1, 1917, to May 1, 1918, 32 cents per hour in first year, 35 cents per hour thereafter. The wage agreement between the union and the company expired on May 1, 1918. On the next day the union and the company agreed that you should arbitrate and determine, among other things, the wages to be paid to the men. The demands of the union are set forth in the agreement of sub- mission, of which the following is a copy: “WHEREAS, the members of Division No. 268 of the Amalgamated Association of Street and Electric Rail- way Employes of America, employes of The Cleveland Railway Company, have made the following demands on The Cleveland Railway Company : 1. (a) The work for motormen and conductors in all week days shall conform to as near ten hours as possible, to be completed as follows: Forty per cent to be completed in eleven con- secutive hours and to include all the highest paid and best runs. Forty per cent to be completed in twelve consecutive hours. Twenty per cent to be completed in thirteen consecutive hours. (b) On Sundays and holidays runs shall all be straight runs with no more than eight hours’ time. (c) Night car runs shall all be straight runs with no more than eight hours’ time and with ten hours’ pay. (d) All runs carrying mail shall be so designated upon the schedule. 2. On and after the first of May, 1918, all motormen and conductors in the employ of the company are to be paid by the hour on the following basis : For the first year of service and thereafter, sixty cents per hour. AND WHEREAS, The Cleveland Railway Company has refused to grant the said demands and a dispute has consequently arisen between the parties; 9 NOW, THEREFORE, it is agreed by and between Division No. 268 of the Amalgamated Association of Street and Electric Railway Employes of America and The Cleveland Railway Company that the above disputed mat- ters shall be submitted to the National War Labor Board for a decision, such decision to be in force from May 1st, 1918, to May 1st, 1919, and to be valid and binding upon both parties hereunto. WITNESS our hands and seals this second day of May, 1918. THE CLEVELAND RAILWAY COMPANY, Witness : A. L. Faulkner, Com’r of Con- ciliation, U. S. Dept, of Labor. (Signed) John J. Stanley, President. H. J. Davies, Secretary. DIV. NO. 268, A. A. of S. & E. R. E. of A. (Signed) Fred Telschow, President. F. Schultz, Business Agent. W. M. Rea, Secretary. You will note that the employes are now demanding an advance from 32 cents per hour in the first year of their service and 35 cents per hour thereafter to 60 cents an hour for all conductors and motormen, no matter how short their service. From every standpoint it is impossible for the company to grant any such advance. It is not right, and the company is utterly unable to pay it. You will observe that since the company resumed pos- session of its property, in March, 1910, it has made five ad- vances. All were made by agreement with the men or their representatives, although one was after an arbitration. The first was when the company took possession, the company feel- ing at that time that, under the operation by the receivers and by the Municipal Traction Company, the men had not been getting enough. The next agreement, made in June, 1910, after arbitration, lasted for practically three years, and was an increase, broadly speaking, of from four to five cents per hour. The next advance was after the European war had broken out, and was fixed by agreement for the year from May, 1915, to May, 1916, being practically an advance of two cents per hour. Another similar advance of substantially two cents was made by agreement, which was operative from May 1, 1916, to May 1, 1917. In 1917, again by agreement, an increase of one cent per hour was made. So that in the eight years last past the company has at all times agreed with its men as to wages. The result has been that during the past year the wages paid constitute an advance of more than 40% over the wages paid at the time the company took possession of the lines. The company is conceding now that wages should 10 be increased when it has the ability to pay ; but it can find no excuse for the men demanding an advance of 71% at this time. If their demand were for 10% or thereabouts, we would con- cede that just as soon as we had the ability to pay we should pay it; in which event we would request, and we do now re- quest, this honorable body to say to the city of Cleveland that we must be permitted to increase our rate of fare. So long as the city has absolute control of the service and has the auditing of the company’s accounts, and so long as the com- pany can add nothing to its capital stock except with the con- sent and approval of the city, there is no reason why the fran- chise should contain or provide for a maximum rate of fare. We cannot increase the rate of fare to an extent that will pay us more than 6% upon the actual capital invested, as provided by the original ordinance and by amendments since that time. The city is protected in two ways : It can always buy our stock at $110 per share; and it can require us, if necessary for its protection, if money can be obtained more cheaply at any time, to transfer our property to such other person as may be named by the city; and it is obvious that if the company is to obtain money sufficient to make such improvements and extensions as the city may from time to time feel are needed, the stock must always be maintained at a sufficient market price above par to ensure the immediate investment of capital by people having money to sell, for the company must buy its money precisely as it buys its material, — not as it buys its labor, for labor stands on a different plane. In some respects it is more dependent upon the street railway company, in others less dependent, because a laborer may at any time change his employment. At the present time there is a great demand for labor, and abnormal wages are being paid in some factories for munition workers and by some contractors who are taking government contracts at cost plus, thereby paying little atten- tion to what cost is so that the labor is performed. In this situation many of this company’s old and faithful employes are being taken away, and the company must be given the ability to pay what you shall say is a fair wage for the service required of its employes. The company said in your hearing, and now concedes, that the men are entitled to an increase in the wage scale be- cause of the sudden and unexpected increase in the cost of living brought about by conditions beyond the control of either party; but the company does not and cannot concede that the men are entitled to the increase demanded. Motormen and conductors are not skilled employes, in the sense in which the term “skilled” is commonly used, for only a few days’ training is essential to enable one to perform the duties of motorman or conductor. The work is not difficult, — is, in fact, much easier than almost any other unskilled employment. The 11 United States Department of Labor made an exhaustive study of street railway employment in the United States, including Cleveland, and the results of its investigation were reported in April, 1917, in the Bulletin of the United States Bureau of Labor Statistics, from which we quote (page 13) : “The occupation (of conductor) is semi-clerical in some respects, and one of responsibility rather than of skill. In the modern cars the work is comparatively easy, as fares are collected as passengers enter the car. But conductors ^re required in most cities to remain standing for long periods without opportunity to rest.” This is not true in Cleveland, as seats have been provided for all conductors. “The work (of motormen) is easily learned, and should be classed as responsible rather than a skilled occu- pation, although experience increases efficiency, especially in avoiding accidents. Employes usually reach the aver- age of efficiency within two years. In most cities motor- .men are allowed to be seated when outside congested districts.” This rule obtains in Cleveland. The work is attractive, and this is shown by the well- known fact that many men follow it all their lives. It offers an opportunity to work, if the employe so desires, three hun- dred and sixty-five days of the year. And it is not affected by weather conditions, as are the building and many other trades. The report to which we have just referred shows that The Cleveland Railway Company’s wage scale has been con- siderably higher than the average. (See page 18.) What the present average wage of 34 cents per hour amounts to in gross and per car-mile is shown in Exhibit No. 19, hereto attached. The same exhibit shows the extent to which increases of from one cent to 26 cents per hour, raising the wages to from 35 to 60 cents per hour, would increase the expenses of the company in gross amount and per car-mile. WORKING CONDITIONS. The Company has already voluntarily met all the changes in working conditions which it conceives to be possible under the present situation. The basic objection to the demand for changes in working conditions is the fact that it would require several hundred more men to perform the same service which is now being rendered by the Company’s employes, and it is now difficult to find enough men to properly operate the road. We respectfully submit that if this Board is to follow the principles and policies which it has laid down for its guidance, no change should be made in working conditions. 12 “The maximum production of all war industries should be maintained, and the methods of work and oper- ation on the part of employers or workers which operate to delay or to limit production, or which have a tendency to artificially increase the cost thereof, should be dis- couraged. “In fixing wages, hours, and conditions of labor, regard should always be had to the labor standards, wage scales and other conditions prevailing in the localities affected.” It must be remembered that the business of operating a street railroad is peculiar, because of the public demand that cars be operated throughout the entire twenty-four hours of each day, and the further public demand that at least one-half of the entire twenty-four hours’ business shall be transacted within a period of six hours, which are not continuous, and during which all of the equipment and men must be employed. Exhibit No. 1 shows the number of cars necessary to give the service required by the city on a typical line of The Cleve- land Railway Company, and the present arrangement of runs to operate those cars. Exhibit No. 2 shows the same line, with the runs re- arranged as proposed in the demands of the union. Comparison of the two exhibits shows the enormous in- crease in the number of short runs, and, consequently, in the number of additional men that would be required to operate under the proposed schedule. We again wish to call the attention of the Board to that portion of the Company’s franchise which provides: “The city reserves to itself the entire control of the service, including the right to fix schedules and routes.” Exhibit No. 3 shows statistically what Exhibits 1 and 2 show graphically. The total number of men now working eight hours is 1951. Under the proposed scale the number of men working eight hours would be 1385 ; that is, 566 men who are now working eight hours would have to be satisfied, under the pro- posed arrangement, with something less than eight hours. The table further shows that the total number of men now work- ing less than eight hours is 423, which number, under the pro- posed schedule, would be increased to 1844; that is to say, 1421 additional men would be required to work less than eight hours. The number of men now operating three typical lines is 350. The proposed arrangement would require 476 men to do the same amount of work. For the entire system 2374 men are required to operate the present schedule. Under the new arrangement 855 additional men would be re- quired, — an increase of 36%i — in order to operate precisely the same number of car-miles. Under the present arrange- 13 ment, the company has now a five-hour minimum; that is, a man is paid for at least five hours if he works at all. At pres- ent the company is required to pay each year for 179,819 hours for which it has received no service. The proposed arrange- ment of runs would increase what we are pleased to call “dead” time to 462,134 hours per annum, for which the com- pany would be required to pay the full wage without receiving any service. At the present wages this would require an ex- penditure of $161,746. If the maximum demand as to wages were granted, it would cost the company $277,280 per annum for this one item of “dead” time alone. Details for the foregoing conclusions are shown on the sheets following Exhibit No. 3, and a part of that Exhibit. Surely a demand for a change in working conditions that would require the company at this time to employ 855 addi- tional men, and to pay for an increase of 157% of “dead” time is not in line with the principles laid down by the Board. The Wage Scale Commission, to which Director-General McAdoo referred the question of wages and hours of sendee of railroad employes, in its recommendations with respect to hours of service, says: “Manifestly, therefore, at this time, when men must be constantly taken from the railroads, as from all other industries, to fill the growing needs of the Nation’s army, hours of labor cannot be shortened and thereby a greater number of men be required for railroad work. The Nation cannot, in good faith, call upon the farmers and the miners to work as never before and press themselves to unusual tasks,, and at the same time so shorten the hours of railroad men as to call from farm and mine additional and unskilled men to run the railroads. While the Commission is strongly disposed to a standard day, in so far as the nature of the service will permit it, its firm judgment consequently is that the existing hours of service in effect on the railroads should be maintained for the period of the war.” (Preamble General Order No. 27.) We again remind the Board that the entire difficulty with reference to hours of service is created by a situation beyond the control of either the company or the men. If the volume of traffic were uniform throughout the twenty-four hours, there would be no difficulty in allowing a man to complete his day’s work in eight straight hours. It has been our observa- tion that human* ingenuity has been exhausted in an endeavor to improve schedules. The company has always invited the men to suggest improvements in the schedules, and has adopted any that was at all practicable. We respectfully submit that the exhibits show that any further changes are utterly im- practicable at this time. 14 FINANCIAL CONDITION OF THE COMPANY. The financial condition of the company will not permit any increase in the scale of wages. We have already shown the plan of operation under the Tayler franchise, the funda- mental principle of which is service at cost, including the interest payment of 6% i per annum to the stockholders on the amount of capital actually invested. (See ordinance, Exhibit No. 4.) By the provisions of this ordinance the company is required to operate its railway until the first day of May, 1934, and it is further required to make such extensions, better- ments and permanent improvements as are reasonably required by the growth of the city. The company has not created, nor is it entitled to create, any surplus under the provisions of the ordinance. By its terms it is limited to a maximum rate of fare of four cents cash, seven tickets for twenty-five cents, and one cent for transfer. The result of operations for the year ending February 28th, 1918, was a net deficit of $920,- 438.69. The company is now operating at the maximum rate of fare, and the testimony of the auditor shows the deficit on the present scale of wages for the year ending February 28th, 1919, will amount to $925,734.00. (See Exhibit 5.) It is therefore apparent that if an increase in wages is made, it will have to be paid out of the capital of the company unless the fare is increased, — a thing which the company can- not control. The company is required to operate its railway. It is also required, by the terms of the ordinance, to maintain its capital intact. It cannot do both unless the city consents to an increase in the rate of fare ; and any increase in the scale of wages should be conditioned on a proper increase in the rate of fare. It has been suggested that the financial condition of the company, or its financial ability to respond to an increase in wages, is irrelevant. We frankly admit that we were very much startled when this proposition was first advanced. On reflection, we can see clearly that if the employer was a private corporation, engaged in a private business, its financial condi- tion would be irrelevant, because it has the power to fix the price of its product, and it could either include in the price of its product the reasonable cost of production, or, if it pre- ferred, it could retire from business without subjecting itself to penalty. Neither of these alternatives is open to this com- pany. It must operate its railway system at a price fixed by public authorities. Since the contract embodied in the Tayler ordinance was entered into, the company has sold to the public about $14,000,000 of stock. All this has been paid for at par or more, the purchasers relying upon the statement in the ordinance that it was “a contract which would secure to The Cleveland Railway Company unimpaired the capital value described in section 16 hereof,” etc. 15 We suppose this Board should be governed by the ordin- ary principles of equity which govern courts. One of these principles is that a court will not order a thing done which is either inequitable or impossible of performance. The Cleve- land Railway Company cannot possibly pay additional wages, maintain its capital unimpaired, and pay the interest to the stockholders which the ordinance requires, unless the city in- creases the rate of fare. Under the ordinance, it is just as much the duty of the Company to pay to the stockholders their 6;%j interest as it is to pay any other indebtedness of the com- pany. Ever since Judge Tayler’s speech in February, 1910 (Exhibit No. 8), just before the ordinance took effect, rely- ing upon the fundamental principles that he stated, every share of stock of the approximately $14,000,000 sold to the public has been bought with the express understanding that the in- vestment should not be in any wise impaired ; in other words, that a stockholder, be he either a large or a small holder, is entitled to have his investment protected in such a way that, if he desires to change the investment, the Cleveland market (which is practically the only market for this stock) would readily absorb it at par. The company cannot sell its stock for less than par. The company can pay only 6% upon its stock, and it has thus far not sought to increase that rate of interest. Whether, if the war continues for any great length of time, money can be secured with which to make the neces- sary improvements and extensions that must sooner or later be demanded by the community, at an interest rate of 6%, remains to be seen. If we come to the time when we must pay more than 6% for money, then we shall have to pay the going rate to every stockholder, to protect his investment. Some one says at once that we might have two kinds of stock, — pay the old stockholder 6%; and get permission of the city to sell new stock at the going rate, say seven or eight per cent. This is a specious and fallacious argument, because the minute you should offer a new stock at seven or eight per cent you would distinguish between the two stocks, and, were money worth seven or eight per cent, the old stockholder, who, by the terms of the ordinance, has been assured of the integrity of his investment, and who has been assured as well by every- body who has handled the stock and by the city itself which has urged its sale that the investment would be unquestionably safe, would find, on putting his stock on the market, that it would bring only from 60 to 75 cents on the dollar, — that the integrity of his investment had been impaired. This consid- eration leads us to say, and we wish it understood, that the company may have to apply to the city for an increased rate to be paid for new money required, and also upon the old 16 money, in order to maintain the integrity of the investment, to which the faith of everybody concerned is committed. As before stated, the ordinance fully protects the city under all contingencies, because, should the rate of interest fall, the city has two remedies, — the right to purchase at 110 and the right to compel the company to assign its franchise to another person that will furnish the money at a lower rate. The company has no protection except the pledged faith of the city, and it certainly cannot buy money for its uses with- out paying what money is worth and what it commands. It will be noted that this entire ordinance is built upon the theory and guaranty of paying interest on invested capital at the rate of six per cent per annum, as stated in the sections hereinbefore referred to. It provides simply for the payment of interest upon money borrowed and upon the invested capital, and it is this interest rate that must be protected. The word “dividend” is used once or twice in the ordinance in an ambig- uous way, but a dividend, in the ordinary sense of the term, is paid out of surplus earnings, and dividends, as such, are entirely abrogated by the ordinance, in its preamble, by its phraseology, and by Judge Tayler’s declaration. The invested capital is to be protected and interest paid upon it, and this whether it is earned or not. So that the directors of The Cleveland Railway Company, since the ordinance in question went into effect, have never been declaring dividends. They have simply been paying interest as commanded by the terms of the ordinance. They were advised that “dividends” would always have to be paid out of earnings, and that any payment of dividends other than out of earnings would subject the directors to liability, whereas this franchise ordinance provides for a sort of teeterboard in arriving at cost of service. It was expected that sometimes earnings would be above and some- times below an amount sufficient to pay this interest ; if above a point more than enough to pay the interest, the fare was to be lowered ; if less than sufficient to meet the interest, the fare was to be put up ; making, as it is plain to see, a regular swing- ing of the pendulum. Therefore, in this instance, the terms “interest” and “dividend” are by no means synonymous. Fare adjustments are provided for in the ordinance so as to get service at cost, which cost was to include interest as one of its component parts. This distinction between interest and divi- dends should be borne in mind. Of course, a dividend is what the statute contemplates shall be declared and paid by directors out of profits, but Judge Tayler’s idea was to get clear away from the theory of dividends and provide instead a stable rate of interest that, in his judgment at that time, was sufficient to induce the investment of money necessary to properly carry on the street railway enterprise. The delay of the city in responding to the necessity of 17 an increased rate of fare in order to maintain the integrity of invested money, and to enable the company to pay its 6% without diminishing service, is alarming to the whole com- munity. We call special attention to Exhibits 10, 11 and 12 attached hereto: First, to the letter of Mr. J. R. Nutt, Pres- ident of The Citizens Savings and Trust Company; next to the letter of Mr. F. H. Goff, President of The Cleveland Trust Company ; and next to the letter of Mr. J. A. House, President of The Guardian Savings and Trust Company. These trust companies, in their capacity as trustees, are perhaps the largest holders of stock of the railway company. They have been interested in placing trust funds in the stock, relying upon the faith of the community, and hope to continue to do so, because they are in a position to realize the necessities of this city and its suburbs as a growing community. Attention is also called to an interview with Judge Hadden (Exhibit No. 13), who, as probate judge in this county for many years, honored and respected by every one, has advised trustees to invest in street railway stock. In other words, the entire community having knowledge of financial matters has endeavored to help to carry out the spirit in which Judge Tayler acted in the drafting of the Tayler ordinance. We want to challenge the serious attention of the Board for a moment to the tendency prevailing in latter years towards the destruction of property by commissions and boards. The right to property is one of the most sacred rights of any free people, and if a state is to command respect for long, its pledged faith as respects property rights must be rigidly kept. We have noted in late years the rapid multiplication of com- missions and boards, and it is being realized today that great investments and properties have been ruined by adverse legis- lation, and by hostile action on the part of such commissions and boards. But nothing is sadder than the condition our country finds itself in at the present time by the maltreatment of its railroads owing to such adverse legislation and hostile action, and we find ourselves so handicapped that the govern- ment is having to take hold for the purpose of securing efficiency. In doing so many statutes are being violated and rulings of commissions ignored. The thoughtful and observ- ing person notices an almost equally ruthless treatment of other properties. Years ago, among the very first of states to create com- missions, was Massachusetts, and we were all impressed with the ability with which the Commissioners were doing their work. We seized upon it as a new idea. We believed, and still believe, that the men upon the commission were con- scientious; but it would be hard to find any greater injustice than has been perpetrated in Massachusetts under the guise of the Massachusetts Commission. Many of our local commis- 18 sions, if not some of our federal commissions, were organized along the line of the Massachusetts commission, but we wish to call attention to one example that is so alarming that it demands the thoughtful consideration of everyone. Attached hereto as Exhibit No. 14 is a copy of a letter written April 8th to the Treasurer of The Cleveland Railway Company, Mr. H. J. Davies, by Mr. H. L. Wilson, Treasurer of the Boston Elevated Railway Company. Upon reading that letter it will be noted that the Boston Elevated, by order of the commis- sion, sold $3,300,000 of its stock, and that the public paid $155 a share for it. They next put out $6,650,000, and the public was required to pay $110 per share. The next issue was for $4,000,000, for which the public paid $105 a share. Some of this last-mentioned stock was not sold. The total outstanding stock of the company was $23,879,400. The premium realized on the stock sold amounted in the aggregate to $2,707,428.13 ; and yet, under the statutes of Massachusetts and the rulings of the commission, the company has only been permitted to make earnings to such an extent that a few months ago, as Mr. Wilson states in his letter, the stock was selling at $27 a share. In other words, the people who at one time had been required to pay $155 per share, could realize, if they wished to turn their investment into money, but $27 a share. To speak plainly, it would be hard to find a greater injustice done to a stockholder or to any person through the action of legis- lature and commission. It is our desire to challenge at the outset thoughtful consideration of underlying economic prin- ciples that neither legislature nor commission can continue to violate with impunity. We have heard suggestions of a zone system being a panacea, and the city is talking to us about the application of a zone system. The company is ready at all times to make experimental trials in the working out of any reasonable plan that promises success, but at the same time we must ask of the city permission to increase the rate of fare in order to main- tain the integrity of investments made and to be made. Just as soon as the interest fund increases beyond a certain amount, and just as soon as it is demonstrated that the rate of fare is more than sufficient to render proper service, the rate of fare must come down; and although, as we have said, we do not approve, as a fundamental economic proposition, the contract between the company and the city to render service at cost and no more, such cost to include interest upon capital, the situation in Cleveland is such that every energy of the com- pany and of its officials is exerted to make it a success. The objections to the zone system are many. You can- not absolutely lose sight of the fact of what the traffic will bear. Neither in any American city do we want to lose sight of the principle, which we believe is a part of American civiliza- 19 tion, that all employes shall be encouraged to own their own homes; that all of our citizens, so far as possible, shall be encouraged to own their own homes; that crowded and un- healthy tenements shall not be fostered; that, in order to further and improve sanitary conditions, people must have cheap fares and frequent service. Undoubtedly some benefit can come through readjusting the peak, and your Board may be able to help in this. The company is willing to lend its assistance to the utmost. The city of Cleveland can do some- thing with reference to it. We think it very likely that some kind of a zone system must be worked out, but it must be a plan that will take into consideration all elements, and not simply the element of service at cost. It must regard the health of the people; it must have reference to what the traffic will bear ; it must look to the development of the community ; it must provide for the building of many new lines which may, for the time at least, be experimental and unprofitable ; it must have in view the proper maintenance of the property. The development off any community is seriously handicapped unless all of these things are taken into account. Attached hereto is a letter from the Mayor of the city of Cleveland to the city council (Exhibit No. 15), together with the reply made by Mr. Stanley on behalf of the company (Ex- hibit No. 16), to which reply we invite the careful considera- tion of the Board. We also call attention to the action of the Chamber of Commerce (Exhibit No. 17) bearing upon an increase of the rate of fare. We ask the closest investigation, by any expert the Board may select, into actual conditions here, with the assurance that we want to do everything pos- sible that will give to our employes a fair living wage. We believe this company has always stood well when compared with others in its relations with employes. It is our aim to treat them fairly and justly, and they and the public must be fair and just with us. While we know that this Board has no power to increase the rate of fare, we do believe that, after careful investigation, a recommendation or suggestion to the city that, in order to permit us to keep faith and the city to keep its faith, the rate of fare should be increased to properly meet all costs and render reasonable service will have great, if not preponderating, weight in bringing about the result which is so much desired and which good faith requires. At your suggestion, we have collected data bearing upon wages paid and increases made in other lines of employment. Such as we have been able to gather are contained in Exhibit No. 18, attached to and made a part of this statement. The figures showing the wages in 1910 in other occupations than street-railroading were obtained by us from the testimony of Mr. Harry D. Thomas, Secretary of the Cleveland Federation of Labor, in our wage arbitration of June, 1910; the figures 20 for 1918 are those fixed June 1st of this year by agreement between the employers and employes in the building trades in Cleveland after a strike that lasted several months. The table shows that the railway company, between March 1, 1910, when it resumed the operation of its railroad after the receiver- ship, and May 1, 1917, when its last wage agreement with its motormen and conductors was made, advanced wages 41%, while the average increase in the other occupations, including the advances of June i, 1918, has been 60%. An advance of 60% to our trainmen over the average wage of 24 cents per hour that they were receiving in 1910 before the company resumed possession of its property would bring the average wage now to 38.4 cents. The same advance over the average wage paid June 1, 1910 (25 cents per hour), would give them now 40 cents. The other part of Exhibit No. 18 shows the wages of steam-railroad employes fixed by the Director- General of the United States Railroad Administration by General Order No. 27 — a business more nearly like the street- railway business than any of the others shown in Exhibit No. 18-a. The figures are taken from page 13 of General Order No. 27, which was published May 25, 1918, and they indicate that if the same increase in wages were allowed our men as are allowed in that order to the steam-railroad men, conductors and motormen who, on the 31st of December, 1915, received 29 cents per hour would be raised to 41 cents per hour, and those who then received 32 cents per hour, the maximum then paid, would be advanced to 45j4 cents per hour. We believe that the testimony indicates that a smaller advance should be made to our trainmen than has been made to the steam-railroad men, for reasons that we have stated. There is a vast mass of printed data, untabulated and undigested, on the subject of increases in the cost of living. You are undoubtedly better informed on the subject than we are, and can more readily place your hands upon authoritative government statistics. We venture, however, to include in this statement, as Exhibit No. 20, a table from Bradstreet’s of June 15, 1918, showing “Bradstreet’s Weekly Food Index” for each week of this year and each corresponding week of 1917. It is made up, we understand, by adding together the market prices per pound of thirty-one articles of food and dividing the sum of the thirty-one prices by the number of articles, the average so obtained being the index number or price. The table indicates an average advance in food prices of less than 20% over last year. Our trainmen ask an ad- vance in wages of 71% over last year’s wages. It indicates also a gradual decrease in average prices since the beginning of 1918. We submit these exhibits with the assurance that any- thing else we can do or furnish to aid the commission in 21 arriving at a just result will be done or furnished. We wish to do everything we can to try out to its most logical conclu- sion the giving of service at cost, but primarily we must keep intact the undertakings already incurred, and not have new ones imposed upon us until the fulfillment of our old ones shall have been assured. We do not believe the people of Cleveland are today getting the service they ought to have, but we must be content to give such as it is possible to render in the conditions obtaining. We would be very reluctant to be driven to the necessity, either through arbitration or other- wise, of cutting the service further. In conclusion, we urge that, in view of the provisions of our unique franchise, under which the higher the cost of service the higher the rate of fare that must be paid by the hundreds of thousands of car-riders of Cleveland and vicinity, in view of the financial condition of the company, in view of the advances in wages already granted to our trainmen and of the nature of their employment, in view of the recommenda- tion of the government’s Wage Scale Commission “that the existing hours of service in effect on the railroads should be maintained for the period of the war,” in view of the advances shown in rates of wages in other employments and in the cost of living, and in view especially of the principles and policies announced by you, changes in working conditions that will necessitate the employment by us of 36% more men to do the work we are now doing imperfectly, without any in- crease in earnings or decrease in the amount of our operating expenses, but, on the contrary, with an increase of more than $100,000 in expenses apart entirely from any increase in wages, should not be permitted, and the demand of the union that wages be advanced from the present rates of 32 and 35 cents per hour to a flat rate of 60 cents per hour should be refused and the Company’s offer of a flat rate of 40 cents per hour from November 1, 1917, to May 1, 1919, approved; and that, in conformity with the action of the government in the case of the steam railroads, if you allow any increase, your award be conditioned upon, or recommend, an increase in the rate of fare sufficient to enable us to comply with the award. Respectfully submitted, THE CLEVELAND RAILWAY COMPANY, By Squire, Sanders & Dempsey, Its General Counsel. 22 : t .... | j | j N ; j j k»^4|‘~" j-j • t 4 ~ i 1'- ’ j j | {. ; j ! S ■ 1 •■'■■: ■■■■•■•■■:•".■■,'.■ .. .. ■ P .• ' v Sfc -s^kss^N ■ 1 ■ «jNv*Vsi -lv 1, ^-\K\\ V.A ^Vs i K ' j* 7*^ * — , I ~ j \rrjjjji : j ___! i. «! _ -r- •■ i- : t_±i <■ ■ i >W4"':| P-:^] i£S\\$N jbbL 1” i -X ^ hnr-d I | I 1 — t i i * ; - % I /Z r } - H IL. IrrPV^ . u n CU JjLiij. otjtV M j t SiS » i r “ 4 ■■.: ’ l r — A B i 1.— e>IA\ «> 1, '4 \ «;, $.,'■; arriving at a just result will be done or furnished. We wish to do everything we can to try out to its most logical conclu- sion the giving of service at cost, but primarily we must keep intact the undertakings already incurred, and not have new ones imposed upon us until the fulfillment of our old ones shall have been assured. We do not believe the people of Cleveland are today getting the service they ought to have, but we must be content to give such as it is possible to render in the conditions obtaining. We would be very reluctant to be driven to the necessity, either through arbitration or other- wise, of cutting the service further. In conclusion, we urge that, in view of the provisions of our unique franchise, under which the higher the cost of service the higher the rate of fare that must be paid by the hundreds of thousands of car-riders of Cleveland and vicinity, in view of the financial condition of the company, in view of the advances in wages already granted to our trainmen and of the nature of their employment, in view of the recommenda- tion of the government’s Wage Scale Commission “that the existing hours of service in effect on the railroads should be maintained for the period of the war,” in view of the advances shown in rates of wages in other employments and in the cost of living, and in view especially of the principles and policies announced by you, changes in working conditions that will necessitate the employment by us of 36% more men to do the work we are now doing imperfectly, without any in- crease in earnings or decrease in the amount of our operating expenses, but, on the contrary, with an increase of more than $100,000 in expenses apart entirely from any increase in wages, should not be permitted, and the demand of the union that wages be advanced from the present rates of 32 and 35 cents per hour to a flat rate of 60 cents per hour should be refused and the Company’s offer of a flat rate of 40 cents per hour from November 1, 1917, to May 1, 1919, approved; and that, in conformity with the action of the government in the case of the steam railroads, if you allow any increase, your award be conditioned upon, or recommend, an increase in the rate of fare sufficient to enable us to comply with the award. Respectfully submitted, THE CLEVELAND RAILWAY COMPANY, By Squire, Sanders & Dempsey, Its General Counsel. 22 \©C0O'©f'3f«5Tf<'O r t(000'^Hromt''0' t^POO"0(SOOTt<0 rO ui CS « 00 O" *H r*j" ir> O'OO'Ot't'NN 25 at 43c 77,322 at 43c 198,717 at 44c 79,120 at 44c 203,338 at 45c 80,918 at 45c 207,960 at 60c 107,891 at 60c 277,280 u r; tn t* £ 5' g 3 3 ,V, tn ^ % (y 5 cr a ■%3 » a-... s •:.' 3 * ro C :. K ti £. te 25 •~> "■ & =* f ‘ 4 © is- ‘■J5 -is c ST* s* 3 * 9 ij BROADWAY WEEK DAY m-m OO : s"*w g. £ * I r x> h !» 5 } ?! < r . ‘ * • - ■ ■ . r -u V - t -• 1 , b - r %b : • T'., % I & O' O' jj !*? sj ^ B B O ' 4 > o 3 a I 3 3 CM ' !SS| 't*. C« ►p- oo CV i s >1 Ir'j : C.V.- '. v .VO CO i © - E H 3 £ 1. :> x-» gg i 1H SB s * 5 E. ^ W w~' © Z3 “ 1 .o £ £ 'O & £ BROADWAY WEEK DAY lag p OS E Saasa 3 aa 3883 sa 8 aaS 8 asa 88 S 888 M^ 88 ^aaa 3888888883888888838888888 ii ^8888888888888888888 auSoSusJ So So So SoS™SoSr S3S§3SS3S§SSSSlf3§SlSSsSS3S3S3SS33si3S 3a38§gS&3g3§g§S331§333 S §3§3a3835383S§3ss33a333333335333333338 83333333333333333333333 E S S a • E s S a E 883333i3§3383388a3g a i33Sss§s38g33&s3333s33§§i 3383s § 333833313S&833S33 3 S^SSSSSSSSSljSSSSSSSSSSSS Biss II I !••• o= = * I” TIME tc O fsISsSsssisi SI SSSSSaaS psjpsHSSB^S .8 a 333333131333 B 33133333 1333333333333333 3 E S3 1 3 33333338ll33p3i33333^p §| 8 11 § HI § 3 iP3HS3§§§33§33333ii333133 3| 5 sssssagg E ■ |asi|313p38||13|l|||||||pllsiiSsSa§S ^333 g asiiaa § |§3§§33^S3333i§S33333iiipiip333§iii i|§||S| Is E Siil8|9133S133SSS33S3383S3&8aB8833S333 3&3§3S§§§3338833 § 33833s§3333S3§8Ssi33§333ill3331333333§3 33§33333§3333555i3 II B i- u. . . I ' ill r . ! l’- f - J -Kf‘ v I I'll, v JJ J ftlMf !-» SWJ 10 % ; ^ r. %$%#**■* ;s.x • . S x -.« fo - ■ £2 jtfc $ 2 S rc, £ Z :z a £ ?: g J x? -C^> is cv A X - • ■ ■ I.c » « • ■•:. O •© ^-7 1 ■ ? r I: A.:' cv v*v .•« .•♦ •**> r»«AM xM t* -m I v - •« c%i r 'J .'?• oi *.M ,-..» r^v%f\M , w .•« o SJ; V; :; f. *■».■* A*’ -;'’c SPSI 3 ■ 0»5 :« > CM C' O 5 O r.i ,V '< :■>• -•' •> tv •< . . 1 * ® ■A*-'? * 1 . •>. 1 r *$$££ ^‘i 5 f ■ : 25213 r ■ r-i W f 1111 I Ml s ,. r A t |. i : "• • •= i I' * : ; >•■ /o c X j t - -o : ^S^^sSSe?!^ I ) f *-?■ t vf f xWf Mrasmt, BKOVD/a f i AT.EEK D'/ * 3CHEL BROOKLYN WEEK DAY 11 83g33833SftSS#&S88833S!933333338:g833888S83*»3338S3SSS388888888888g888888888888 § aOOOaOaOOOvOO.ONOOOOOOOOOOOOOOOOOOOOOOOOOOOOOsOaOsOsOvOOO^^OOOOOsOOOOWOOOOv.O^^io^^^^^^^^^^ioiOiOiOiO^iO^^^^ uj 8 3«§2s 8^|§pga|i3ii^^gi§S8§3SS§i§3§^gSlllig§§li § 6 5333§js S § II 5 1 gi&SSSgS&S^SS i§ a 11= i 111111381313551111 38 333311 ■ § !IiSHH?5l35SI|IIlIIIS|llSlH||P|* *88 lilii a §p^!pspssii^ii|i!!iiiii!|!2ii§ aa |§i a 2§iii!iiil§lil^SaS8ssSS333S2g II s i38§§2aSS8S3S3B38SS39S3S a 33S§S§83§S3si8§g§lis§33H3S§§SS I 133333332333333333333333 ii | ~~ S=aa «V*V«V^ 88*3 1 8 i B PI5 U I„, I ii h 33IS U]t : : S8Sp S f m % M ? >- 5 *?«?: 8 S S ? ?. « ? SSR^MSSk- = -" ?• := '2 * •■■ ai.vwiwt!,,. -> -.'.a fit. ,\ .X' 30. « - 1 - .f. TO..- •• •-• e .*2 ,'J/C *■ ;- £ i ' % 5o I mi\$. r ? %»■ c:. «*> <5 -- :v •••“>» a» o>» *>« rw t ?& t* *- • ? P s £ s & S % V p 5% 8 X :~ g Pi - ;••: 3 £ 2 o* • -1 **o ? "iT •§£ ?A1* -