The Butler County press. [volume] (Hamilton, Ohio) 1900-1946, 1918-03-08
CRITICAL SITUATION
Of PUBLIC UTILITIES
They May Suffer Collapse as Rail-
roads Already Have, Greatly to
the Disadvantage of the
Public.

Columbus, March 4.-The appeals to
State Public Utilities Commissions for
increase in rates by the public service
corporations shows them To be in inn
ninent danger of paralysis such as the
railroads now are suffering.
The difficulty in the case of each
utility is from the same cause-a sell
ing price for service fixed at time
before the war had increased all costs
by half and doubled many of them.
The gas, telephone, power and trac-
ton companies are showing by their
books the increased cost of operating
and OF maintenance. to an extent
which has put many of them on the
red side of the ledger.
With nearly all of them the greatest
cost item is coal.
Previous to the outbreak Of the
European war coal cost $1.90 ton
delivered. The average cost now is
$3.48 and the freight charge is paid
by the purchaser. And, too, when the
price was $50, screened coal was de-
livered. Now it is "run-of-mine" with
slate, stone, earth, dust and all. This
difference in quality makes heat unit
cost double what it cost when the
price to consumers was fixed.
Electrical power for light and heat
and traction, and telephones Is dis
tributed through copper wire. Prev
ious to three years ago, the price OF
copper for this use ranged between II
and Is cents. 1t now is % cents, and
recently a Columbus company was
forced to buy $4,000 worth at 80
cents.
The world can't work, or live, with
out the public utilities. Their exis-
tence is menaced by doubled costs.
Like any other business, they have
something to sell-service. Like 9th
er business enterprises, the selling
price must be based upon the cost of
production. The manufacturer and
merchant pass the increased cost of
production On to the consumer. Un-
less the utility can do the same it
must go out of business.
What should be done about it?
No satisfying answer to this ques-
ton has yet been uttered.
Companies have agreements with
the public for price for service, fixed
for term of years, or their rates have
been fixed by municipal ordinances,
based on pre-war cost of production.
City officials say "a contract is a
contract" So 1t is, but enforcing a
contract which will wreck service
company will bring public calamity.
In many instances the service COM
pantes, at the present rates, can earn
no margin for extensions, or repairs,
for ali income must go into cost of
operation and many are not earning
even operating expenses. A concern
doing improbable business can't bor-
row money to tide it over.
The quality of service will deterior-
ate, necessarily, and then Wen all
kick about it.
Utility enterprises have certainly
fallen upon evil days, and are wrest-
ling with problems of which their pa
irons are wholly unaware. The mar
ket price Of utility securities has
steadily declined during the last two
or three years, and many of them have
no market value at all.
1t is not alone those whose money
is in these properties who are inter
ested. If they fail and the public is
deprived of their services, it will be
the greater sufferer; for there will be
no inducement for others to take the
hazard of attempting to furnish the
service. These problems require some
sane thinking on the part of both pro-
ducer and consumer