C. H. Dahl, manager of transportation, Winnipeg Electric Co., has made the following statement to The Tribune:

"In an editorial of Tuesday's, Dec. 14 issue of your paper you referred to Winnipeg's transportation service. The last paragraph of said editorial states "It is often heard that the Winnipeg Electric is not utilizing all its equipment. The public is entitled to a statement outlining what steps, if any, are being taken to improve the present situation."

"Replying to the first part of this question, Winnipeg Electric is utilizing all its usable, available equipment. It is operating 177 streetcars, 181 motor buses, and 94 trolley buses. It has not any more. In December of 1945, the winter in which the system carried more passengers than it ever has before or since, the company operated 211 street cars, 158 motor buses and 30 trolley buses.

"At the present time the vehicles being operated have a seated capacity of 16,973 as compared with 14,439 in December 1945. In other words, we have 18 per cent more seating capacity in operation today than we had in 1945.

"What is the company doing to improve the situation?" Since V J Day, or August of 1945, the company has expended $3,809,214 on improvements to its transportation system. During that time it has purchased 62 new motor buses and 72 new trolley buses, erected three substations to make trolley bus operation possible at a cost of nearly $500,000, made additions and improvements to its shops and garages. In 1948 alone it has expended over $1,300,000 on improvements.

"While the record number of passengers was carried in the winter of 1945–46, the traffic at five o'clock, or the peak hour, was not so heavy then as it is now. There was, however, considerably more riding between peaks and particularly at nights than there is now. Never before in its history has Winnipeg Electric had so many vehicles in operation at the peak hour as it has at the present time.

"The trouble is particularly acute between 8:30 and 9:00 in the mornings and 5:00 and 5:30 in the afternoons and as we have stated on numerous occasions, the only practical immediate remedy is a staggering of hours.

"Despite the fact that the Municipal and Public Utility Board refused to allow, except in part, the modest fare increases which the company asked for and suggested that the company should obtain financial relief in large measure by curtailment of service excepting after midnight on the University line. However, if the board remains adamant in its position, we shall be forced sooner or later to curtail service however reluctant we may be to take that step. When we do the public will be duly notified.

"Our greatest trouble is being experienced on motor bus routes greatly relieved if we had more large size buses. More than 60, or one-third, of our motor bus fleet consists of small size buses having seating capacities of 23 to 27 passengers. So far as possible we use these buses on light runs but many of them have to be used on heavy runs. To replace these with buses having seating capacities of 40 to 45 passengers would require an expenditure of over $1,000,000.

"Practically all our motor bus routes are losing money and with the present fares, there is no assurance that the picture would be changed materially if large sized buses were procured. In the first ten months of this year motor bus opeations have incurred a deficit of $270,000 or $27,000 a month before any provision whatever has been makde for depreciation or return on investment.

"The present fares are totally inadequate to cover costs of motor bus operation. The municipality operated system of Detroit, when it began substituting motor buses for streetcars in large part found immediately it had to charge 10 cents fare on motor buses as compared to 6 cents on streetcars. People transferring from streetcars to motor buses had to pay 4 cents for a transfer. This was in a city where the price of motor and gasoline was considerably cheaper than in Winnipeg. Chicago motor buses always had a higher fare than streetcars. The present Detroit fare is 13 cents or four tickets for 50 cents.

"If the same fares are to prevail on motor buses as prevail on streetcars, the only possible way in which the combined operation can be made to pay its way is to have an overall fare sufficiently high so that profits from streetcars and trolley buses will be adequate to absorb the losses on motor buses. That is not the case in Winnipeg at the present time. The company cannot, therefore, possibly justify at this time the expending of a large sum of money to procure large motor buses. Then, too, larger motor buses will accentuate the difficulties experienced in operating on Winnipeg streets.