Arizona republican., 1912-09-14

light and gas plants and the street railway system under the same own ership. Much of the property that belonged to the railway system had been charged by the company to the light and power plant and on that valuation such d system of rate mak- ing as is employed was based. The investigation however, disclosed that there was not much of q system of rate making, since the rich and pow erful insisted on making their own rates and were allowed to do SO
 But the question to which We have called attention is as to the right of the company. in the circumstances, to make the light and power plant sup port in part the street railway sys- tenn. This is a question. like most other questions. with two sides. and while at first glance such d thing seems unjust, We can conceive of a situation in which it would be the best thing for the community that it should be allowed
 Such situation once existed in Phoenix The water works and the street railway system were in com mon ownership. The water rates were high and the service was poor, but perhaps. at that time the rates were not eXorbitant and the service was then probably as good as the volume of patronage warranted. The street railway system was run at a loss for several years and it probably would not have been established and maintained at all but for the rev enues from the water works. The owner, we understood really derived no returns from those two invest ments but he expected by manipula- tion and the ultimate sale of one or both of the properties to secure all of his remuneration in a lump. That expectation has been in part realized.
 Without a street car system, which as we have said. could not have been maintained without some such ar rangement as this. there could have been no rapid and extensive growth of Phoenix. such as has taken place, west. north and east. in those districts reached by the system. Ultimately there would have been demand, as there has since been. for railway system that would have paid from the beginning.
 The Tucson street railway system, We believe. has never paid the eX penses of operation, Uo say nothing of the cost of construction. It is fairly well equipped The cars, which are not numerous, and the tracks ceHent. and the service is regular. No corporation would have under taken this. looking to the uncertain growth of Tucson or any other town for a period, when the investment would be profitable
 IL might be said that every enter prise should stand on it's own bot tom and that the patron of one should not be forced to support an other It is true that in Tucson many users of light as formerly in Phoenix, many users of water. have been com pelled to assist in the maintenance of a street car system which they used infrequent1y or never. Yet there can be no doubt that a street railway is beneficial to a community and what benefits a community must in directly, at least, benefit all the mem bers of it.
 Nothing herein must be taken to be in defense of the rates and methods of the Tucson Power and Light com pany The rates have been shown to be discriminatory and have been ad- mitted to be. We are dealing only with the matter of the common own ership of two public utilities one of which is unable to stand alone.