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<br />2E <br /> <br />TUESDAY <br /> <br />JULY 20, 1954 <br /> <br />In accordance with prescribed procedure Council called for a public hearing on said <br /> <br />proposed rezoning to be conducted at the regular Council moeting to be held August <br /> <br />10, 1954. <br /> <br />Council also received from City Manager 1/Iathewson notice of the appointing of Nil'. <br /> <br />L. J. Judkins (formerly Electrical Inspector) to the position of Warehouse-Garage <br /> <br />,- <br /> <br />Superintendent. <br /> <br />In cons:Ldering the item on the agenda--the purpose for -.Thich this meeting was called-- <br /> <br />Council not only discussed the proposed bus franchise as placed on first reading <br /> <br />July 13, 1954 but also received from City IV".:anager Mathewson the following memorandLml <br /> <br />and draft of an alternate (proposed) bus franchise: <br /> <br />~5~ <br />~~ <br />i <br /> <br />You have received a proposed bus franchise from the grantee. Attached is an <br />alternate franchise for your consideration. It has been prepared by the YlTiter <br />'with the thought that the Council would welcome more than one proposal on a <br />matter as important as the one before us. Likev;ise, it is my feeling that the <br />grantee is sincerely and conscientiously seeking a franchise that will best <br />serve the public interest. <br /> <br />,'~ <br /> <br />In a recent report of a nationally recognized firm of Transportation Engineers - <br />Simpson & C1..lrtin of Philadelphia, Pennsylvania, Ha\'iley S. Simpson has this to <br />say: liThe urban transit industry is almost universalJ.,y being presented to the <br />public as a "'sick industry" and with considf',:,able justification. Bus systems <br />in cities large and. small have been acquired by their municipalities and a few <br />transit systems have gone out of exis tence. II I believe that during the life of <br />the franchise before us and possibly during the early part of its life, the <br />local bus c ompa:1Y will be faced;'ri th the Utr.1OSt need for prudent and conservative <br />operation if a fair return is to be realizoci on the investment of the business <br />and possibly to avoid actual financial loss. <br /> <br />,- <br /> <br />If this be the case, Council should exercise extreme care not to put itself in <br />the position to ass1uning the responsibility for meeting the desires of the <br />public (through regulation of the bus company) \Tlth respect to bus service unless <br />the Council (and public) is prepared to possibly subsidize, through direct <br />operation or othe~Nise, the local bus system. In our effort to protect the <br />public welfare we must guard against saddling the public with an economic <br />liability. Government regulation and government subsidies often go hand-in-hand. <br />