Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1918-09-11
FIVE-CENT FARE
SUFFICIENT SAYS
LABOR BODY
State Federation Asks Public
Service Commission to
Probe Stock Value

PrODe StOcK value
Maintaining that revenue derived
from five cent fares is of such cX-
tent that it will return fair dividends
on all physically represented stock
of the Harrisburg Railways COM
pany. the Pennsylvania Federation
of Labor has sent a letter to Chair
man w. d. Il. Ainey. of the Public
Service Commission, requesting an
investigation Ct the physical valIa-
ton of the corporation on the initla-
tive of the commission.
This investigation is asked before
the traction company is granted the
privilege 10 put in operation on Oc-
tober l IAN amended schedule OF
fares, varying from twenty to fifty
per cent. of an increase"
Without excessive formality, the
federation makes the astounding dec
laration that the S10,000,000 worth
of stock claimed by the company is
greatly in excess of the amount ac-
tually invested in the corporation
More than $5,000,O00 of this, the
letter affirrns, is "unrepresentatiye {
of any value" The public should not
be compelled TO pay increased fares
that the company may pay dividends
on stock, representative of any real
value. the complainants declare.
That such an investigation would
not be without precedent and with
out the authority of the commission,
the letter points out. An investigation
of alleged water stock was made in
the case of the Beaver Valley Water
Company. it is said, and other state
departments make Investigations
without waiting for the precision OF
formal complaints" and the com
mission would be perfectly within its
right to do the same, it is said N
support of the demands for action on
the part of the commission.
What will be done by the commits
sion cannot be forecast. It is be-
lieved. however, that Chairman Ainey
will lay the matter before other
members of the body before the end
of the week.
In case it is decided to make the
investigation asked, it will be mere
ly a continuance of a previous study
of local transit conditions made
about a year ago. At that time GER
tain recomm mendations for the i'm
provement of service in Harrisburc
and immediate section were made
by the commission. None of these
have vet been made, it is declared.
The letter from the state federation
follows:
I'VE understand that the Harris
burg Railways Company has filed,
with tie Commission. an amended
schedule of fares, varying from
twenty to fifty per cent. of an in
crease.
"On behalf If the orkers of ths
city and vicinity, whc are the main
patrons o! this railway, we protes:
against tt proposed change in its
charges.
I'VE do so because it is our belief
that an increase is unnecessary to
acquire a reasonable dividend for the
stockholders. if only the physically
represented stock be taken into con-
siderat;on and the watered stock ex-
cluded. 1t is generally understood
that this company carries total liza
bility of about ten millions, more
than half of which Is unrepresenta-
tive of any value and therefore spur
ious. We feel that the public should
not be mulcted to pay a dividend on
nothing.
Point to Earnings
THE yearly financial reports of the
company show that it's earning ca
pacity is sufficient to reasonably COM
pensate the holders of genuine stock.
'We-eelievc it is within your pow
er to investigate and fix the physical
valuation OF this Railways company
and, If ths claim for an increase be
more than required to meet say six
per cent. dividend on it's actual worth,
to refuse to permit such increase.
I'VE remember that you so acted
in the case of the Beaver Valley
Water Company, when it was decid-
ed that the company could not fix
charges TO pay dividends on watered
stock. We hereby, petition you to
take like action in this case.
You will, perhaps, not feel dis
posed TO recognize this protest be-
cause it does not come to you clothed
in the fcrmalities prescribed by the
which places upon per-
sons the burden of becoming COM
plainants, with all that ensues; much
inconvenience and frequently ex-
pense.
Asks For Action
1--WE believe that, for the $4,000
expended annually by the state to
maintain the commission, direct pro-
lection should be afforded the public;
that a mere notification of an injus-
tice being done to 1t by a public SER
vice corporation should put the Pub
lie Service Commission on the qui
vive to correct such injustice. Due to
the inactivity of the commission it
has come to he regarded as a sort of
'circumlocution office, where the
study is how not to do it, rather
than to give back to the state full
service for its money expended.
IF we complain to the Dairy and
Food Commission that the milk man
is adulterating his milk. the Food
Commissioner goes right after it
through his assistants. He corrects
the evil without waiting for the pre-
cision of formal complaints, lawyers
and arguments pro and con. This is
what we believe the Public Service
Commission should do.
80, we respectfully suggest that
you, of .your own motion, proceed
directly 20 investigate the affairs of
the Harrisburg Railways Company,
determine its just claims upon the
public and act accordingly. Thus
will you conserve the purses of the
workers of our city from the rapac-
ity of greedy and badlymanaged