The Washington herald., 1914-05-22
OPPOSED
TO CROSSER BILL
W. B. Kerr Tells Congress
men Public Ownership
Is Costly.
HE SUGGESTS REMEDIES
Says Government Has Power to Com
pei Reasonable Street Car Rates
and Good Service.
[E SUGGESTS REMEDIES

IF the traction companies in the Dis
trict Of Columbia are not furnishing
adequate service at reasonable rates
the government has the power TO make
them do 30.
TT does not solve the problem TO go
over to municipal ownership II We
cannot regulate We cannot improve
conditions by public control"
This conclusion was reached after q
lengthy statement on the subject Of
public ownership by w. b. Kerr. Of
New York, director Of the bureau Of
public service economics. at the re-
sumption of the hearing yesterday be-
fore the District House Committee on
the Crosser bill to municipalize the
washington street railways.
A number Of public utility men were
present when the committee resumed its
hearings, but Mr.. Kerr's testimony con-
sumed the entire time OF the committee
yesterday.
Amons others who will be heard to-
morrow are F. c. Henderschott. Of New
York. representing the National Electric
Light Association: Clarke N. Rose
crantz, counsel for the Electric Lighting
Company Of Milwaukee, and Gen. George
II. Harries.
Origia In Social Value.
heTTs VINO Ii aiHO hCtln6 scNTtSaiy
Of the executive council of the depart
ment on regulation OF utilities Of the Ma
tional Civic Federation. said that the re-
cent agitation for more rigorous control
Of public service corporations. had its
origin largely in the social and economic
value to the community Of the services
rendered.
"a street railway subsidized by the
public treasury without question can be
made to render q social service depend
ing in amount only on the extent Of the
subsidization.' said Mr.. Kerr. The
sentiment Of promoting social service
ideal often is costly.
The project for the District govern
ment to purchase and operate the street
railways must be considered from a COM
mercial standpoint he continued. THE
Federal government expressly disclaims
liability for interest charges. and any de-
ficits which might occur would become
q charge on the District Public interest
in the street railways Is a matter Of
rates and service. There being no in
tention to subsidize the street railway
lines, the sole question is whether the
best standards Of service at the lowest
rate commensurate with such standards
can be obtained through private compa-
mics subject to regulation or through Dis
trict ownership"
Mr.. Kerr explained the experience on
British municipalities in the ownership
and operation OF tramways. He showed
that different conditions and circum-
stances existed which made 1t difficult
to adapt British e orience to American
conditions. The speaker also delineated
the conditions in other parts Of Europe.
Criticiscs the Attempt.
The development OF public regulation
in the United States was traced by the
witness, and he criticised the attempt to
try municipal ownership before public
regulation had been adequately tested.
Admission OF the inability of regula-
ton to provide adequate service at rea-
sonable rates must of necessity carry
with It admission of the inability of pub
lie ownership to accomplish the same re-
Suits he said.
Congressman German, Of Illinois, a
member of the committee, took exception
to the witness statement that public
ownership is the greatest monopoly in
that 1t is subject to no regulation. Mr..
Kerr replied by differentiating between
ideal public ownership and practical pub
lie ownership-showing that in practice
the Eovernment as a corporate entity is
frequently less responsive to public senti-
r,ent than are priyate corporations.