B.C. LUMBER WORKER

6 2

CCL UNIONS APPEAL B.C.E.R. FARE BOOST

Announcement that the Public Utilities Commission had approved an increase of BCER transit fares brought a storm of protest from the ranks of the trade unions last week. Appeal will be made to the Provincial Government, pointing to the fact that the increase is not justified on the evidence before the Commission.

When before the Commission as spokesman for the B.C. Federation of Labour, George Home, Secretary, declared that no increase in transit fares should be allowed until a full and searching investigation had been made into the financial structure of

the B.C. Power Corporation and all its subsidiaries.

In a brief, which gave in detail the evidence system, but we wish to draw your attention to collected on behalf of the CCL Unions and the the fact that it is inescapable: if one is to give argument based thereon, it was stated in part: full study to the question of the operation of the

“On behalf of our membership and their transit system.”

families we wish to be recorded as strongly “There was an Order-in-Council passed by opposed to the granting of further increases of | the Provincial Government on July 16, 1948, at transit fares as requested by the B.C. Electric | the request of the B.C. Electric, adopting the and instead suggest to this Commission their principle that, in case of further applications for favorable consideration to a proposal that they, increase in rates, the operating results of the the Public Utilities Commission, recommend to _ various services (electrical, gas, urban transpor- the Lieutenant-Governor in Council that a Pub- _ tation and inter-urban transportation) would in lic Inquiry be immediately undertaken into the future be considered collectively, rather than financial structure of the British Columbia individually.

Power Corporation and its subsidiaries, and as The fair rate return of 6.5% allowed by to their operational effect on the present and ‘this Commission is based on the overall opera- future welfare of the people of B.C.” tion and therefore any request for an increase

“Objections may be made to our introduction —_in fares or rates must be considered in rela- of material relative to other aspects of the B.C. tionship to the overall operation of the B.C. Electric operations other than that of the transit Electric.”

TRANSIT SERVICE ‘

care of future expansion. The transportation system if it is to survive

and provide the service necessary for a growing

Increase 35,365 or 9.8% metropolitan area will have to be placed in the

“The providing of transportation to the resi- same category and removed from the control of

dents of an area the size of Vancouver or the aa private utility company who have proved their

other municipalities is no longer a luxury or by failure to meet the challenge.”

necessity a profit-earning venture, but instead The increases granted to the B.C. Electric

must be considered as a necessary service. for transit fares in Vancouver since 1947 are: It’s an axiom that no one would suggest that Prior to increase, 1947—4 tickets for 25c.

the sewerage system or water system ip a metro- _Increase granted, 1947 — 3 tickets for 25¢ —

politan area be used for the earning of profits 38.5% increase.

for private bondholders, or that the rates charged Increase granted, 1949—10c fare—20% increase.

be subject to taxation. Instead it is an accepted Increase granted, 1952 — 4 tickets for 50 —

fact that monies are borrowed to provide these 25% increase.

necessary services, and repayed over a period of | Asked for in 1954—15c fare—20% increase or

time while reserves are carefully built to take 140% INCREASE SINCE 1947

Population of Vancouver, 1953, 393,500 and in 1948, 358,135

The average weekly salaries and wages in Vancouver for the month of March in the foliowing years: 1947 $35.70

1949 1982 1954

$42.00 = $54.91 = $6.20 8.2% Inc 20.3% Increese 11.8% or @ total of

T4Y, “increase since 1947 je calculation our own,

© Source Dominion Bureau of Statistics — Parcenti

When one considers that these figures represent salaries and wages, the wages of those who are required to use the transit services are well below the average. We must also give consideration to the hundreds of persons existing on pensions who do not receive the yearly increases.

It is also worthwhile to compare the weekly wage and salary rate with cost of transportation in our other major cities: MONTREAL HAMILTON

55 lOc fare—50% less 2% less $62.34 wage— 1.7% more

TORONTO WINNIPEG

joss 1c fare—50' 4% more $53.65 wage our own.

VANCOUVER

__ These comparisons show that the requested Vancouver fares bear no relationship to what is a fair rate with income earned.

According to the B.C. Power Corporation Ltd. Annual Report for 1953, on Page 27, the passen- gers carried on the urban lines were as follows: :

a7 1949 1952 1953 145.8 millions 135.1. millions — 114.1 millions — 109.8 millions Down 7.3% Down 21.7% over 1947 Down 24.7% over 1947

and it is contemplated that if the increase in fares applied for was granted, another 5% decrease can be expected.

These passenger drops being experienced while British Columbia’s population is increasing at the greatest acceleration known in our history.

BCER FINANCES

1947 9st 1952 __ 1953

GROSS REVENUE $32,249,083 $46,987,507 $52,914,949 {$56,607,967 45.7% ‘over 1947 12.6% ‘over 1951 6.9% over 1952 NET EARNINGS $ 8,095,563 $19,376,082 $22,658,754 i 139.3% over 1947 16.9% over 1951

NET EARNINGS PERCENTAGE OF

GROSS REVENUE 41.2% 43.9%

DEPRECIATION $ 6,120,109

DEP 120, 6,390,124 7,116,162

iets oles ae ize fan

ToD OsCOUNT ae : 45, $ 31630,555 $4,436,913

AND Ri i 246,029 . 321,976

NET PROFIT $ 2,456,551 $ 4,518,463 5 senhtes 5 6,660,439 83.7%, ‘over 1947 29.9% ‘over 1951 4% over 1932

TAX ON_INCOME or 170.8% over 194

AND NET PROFIT :

‘COMBINED $429,551 $9,405, 668 $12,337,804 $13,011,539

er PER CENT OF GROSS REVENUE 133% 20.1% 2.9%

The figures from B.C, Power Corporation Annual Reports 1947, 1952, and 1953. Percer

One Faas | see the need eee an pp edce ip uisreesed transit fares on the evidence of these figures, or a company would experience difficulty encouraging investors to purchase shares in such gilt-edge securities. =

Instead one comes to the conclusion that this Company is over-expanded with the result that to- day's users of the services are providing for tomorrow's customers.

of Labor, acting on behalf of their membership, and what we consider to be ity of working eon pores Cal peaee eabesittea thin briat. 3 should granted instead substantial

| be launched.” z i

Labor Housing

Started

OTTAWA (CPA)—The green light has been given to the Ot- tawa Trades and Labor Council (TLC) in its scheme for a 50- unit, $500,000 low-rental hous- ing project to be erected in the western part of the city.

Plans initiated by the labor body should result in a start on construction by August and com- pletion of the project by June next year. Rentals are expected to range from $50 to $60 a month.

Financing for the scheme will be handled jointly by the Central Mortgage and Housing Corpora- tion, which is putting up 90% of the money, and the City which is to provide the balance. Adminis- tration will be handled by the Labor Council which has set up a company known as Mooretown Housing Ltd., named in honor of the late Tom Moore, predecessor of TLC President Percy Ben- gough,

Construction work will be car- ried out by strictly union ‘labor and the two, four, six and eight unit brick built structures will provide much-needed low-rental housing accommodation in the ca-

TLC publicity director Leslie Wismer, who is also President of the local labor group, said that the scheme would demonstrate that year-round construction wes Possible and it would also help re- lieve the current unemployment situation,

the City of Ottawa.

The B.C.

Union Labor

LIMITED

PAcific 6338-0

LUMBER WORKER

AON Ub

PRINTERS AND LITHOGRAPHERS

An Employee Owned Co. 944 RICHARDS STREET

Under the financial arrange- ments completed with the City and CMHC, the Labor Council will be landlord of the property for a period of 40 years, after which ownership will revert to

BRE RR EEE Bee eee

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