181806 Original to City Clerk - 18 1 8(¢6
CITY OF ST. PAUL FILENCIL NO.
OFFICE OF THE CITY CLERK
C•UNCIL RESOLUTION—GENERAL FORM
/41� i
PRESENTED BY
COMMISSIONER �l�aa i i�i L. — — DATF
RESOLVED, That the City Council of the City of Saint Paul
hereby expresses its opposition to Senate File No. 736,
entitled:
"A BILL FOR AN ACT RELATING TO REGULATION OF RATES,
FARES, CHARGES AND CLASSIFICATIONS FOR THE TRANS-
PORTATION OF PASSENGERS BY BUS BY A CERTAIN CLASS
OF AUTO TRANSPORTATION COMPANIES; AMENDING
MINNESOTA STATUTES 1953, SECTION221.04,
SUBDIVISION 2; "
and its Companion bill, House File Number 873, both of which
bills have been introduced in the current session of the
Minnesota State Legislature.
Council File No. 181806—By Frank D.
Maitelli
Resorzlve -
d, That the City Council of
the City of Saint Paul hereby expresses
its opposition to Senate File No. 736,1
entitled:
"A BILL FOR AN ACT RELATING TO
REGULATION OF RATES, FARES,
CHARGES AND CLASSIFICATIONS
FOR THE TRANSPORTATION OF
PASSENGERS BY BUS BY A CER-
TAIN CLASS OF AUTO TRANSPOR-
TATION COMPANIES; AMENDING
MINNESOTA STATUTES 1953, SEC-
TION 221.01, SUBDIVISION 2;"
and its Companion bill, House File
Number 873, both of which bills have
been introduced in the current session
of the Minnesota State Legislature.
Adopted by the Council March 7,1957.
Approved March 7, 1957.
(March 9, 1957)
COUNCILMEN
A9Yeas by the Council MAR 5—
Yeas Nays
BAR 7 1@
a 4vrse Approved 195_
Holland
Marzitelli
In Favor `
Mortinson nn Mayor
1L-
Against
resi•
bf-Wict&dent (Peterson;
OFFICE OF CITY CLERK JOSEPHR. OKONESKI
F City Clerk
BURE/. ' OF RECORDS HAROLD J. RIORDAN
Council Recorder
386 City Hall and Court House
St. Paul 2,aul 2, Minet:ii'ks.
Aw
C°4
Mar. 5, 1957
Mr. Marshall F. Hurley
Corporation Counsel
Building
Dear Sir: Attention: Mr. Thomas Ryan
The City Council today adopted a motion opposing Senate File 736 which
has to do, as we understand it, with the City Railway Co. Will you
please prepare a resolution to that effect?
Very truly yours,c\
City,Clerk
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February 28, 1957
1 , 1 f 0 6 i.
Commissioner Milton Rosen
Department of Public Utilities
City of St. Paul , Minnesota
Dear Sir:
Senate File No. 736, a bill pending in the State Legislature, provides for
the establishment of rates and fares of auto transportation companies amend-
ing the present statutes b` making a fixed provision that rates shall provide
a yield of not less than 714- net of the gross operating income.
For several years there has been a growing tendency to consider the matter of
"operating ratio" of bus transportation companies as a measure of establishing
rates. This operating ratio is the ratio of operating expenses to operating
revenue commonly expressed in percentage. This proposed bill is a definite
application of operating ratio in expressing the margin between operating ex-
penses and operating revenue as a fixed percentage without relation of any
kind to investment.
ilhereas a return on investment has always been considered a prime factor in
the negotiation of utility rates, the development of the bus transportation
business has resulted in a situation where high volumes of revenue and expenses
are encountered with a relatively low investment in plant. Consequently the
margin between expenses and revenue based on a normal percent of investment as
a return is considerably lower than in the previous situation where street
railway properties had larger investments and also in the case of other
utilities such as electric, gas and telephone.
The present statutes merely call for the establishment of a reasonable fare
without a definite basis established as to how it is to be determined. This
bill No. 736 in establishing this fixed procedure takes away from the regulatory
body any power of determination of reasonableness. The establishment of a fixed
percentage such as is proposed would be inflexible and, in my opinion, not a
proper basis for inclusion in state legislation. I feel that it is probably
one of the factors to be considered by a regulatory body out should not be made
the sole factor for an indefinite period of the future.
Yours very truly,
Th
c
Edwin F. Jones"
Utilities Engineer
EFJ:ew
• 1.818n6
RESOLVED, That the City Council of the City Of Saint Paul
hereby expresses its opposition to Senate File No. 736,
entitled:
"A BILL FOR AN ACT RELATING TO REGULATION OF RATES,
FARES, CHARGES AND CLASSIFICATIONS FOR THE TRANS,-
PORTATION OF PASSENGERS BY BUS BY A CERTAIN CLASS
OF AUTO TRANSPORTATION COMPANIES; AMENDING
MINNESOTA STATUTES 1953, SECTION221.Ok,
SUBDIVISION 2;"
and its Companion bill, House File Number 873, both of which
bills have been introduced in the current session of the
Minnesota State Legislature.
MAR 7 1957
f41R 7 -147