Evening journal., 1918-02-18
"NATIONAL UTILITIES"
tFrom the New York Times)

In his address in Detroit Mr.. shonts
used a happy phrase when he referred
to railways as national utilities" That
is a logical expansion Of the familiar
public utilities" and it leads naturally
to the suggestion that the railway
problem, now so pressing and puzzllng
might be solved by the application to
II OF the principles which led TO the
creation Of me most successful local
public utility ever known That adiec-
tive Is justified in connection with Now
IOrk's dual system, a city railway us
ing more capital han the nation put
into the Panama Canal and almost as
much as has been put into the Penn
sylvania Railroad, the premier railway
Of the country and therefore Of the
world Mr.. Shonts makes the sugges-
ton naturally. for he cO-Operated wi D
the city officials of that time in evolv-
ing plan whereby an initial and tenn
po"ary loss on railway operation
should be assumed by the city in con-
sideration Of advancing public inter
ests more important than profits in
money, and yet with hopes that money
profits would be realized in no distant
future.
That hope is upon the point Of real
ization. despite great and unforeseen
I obs acles That the plan would meet
with political obstruction was natural
and not important. That has been hap
PLY answered and overcome by the
plans results Within a few days Pub
lie Service Commissioner Whitney has
said that on some Of the newly opened
lines 10 cost i7 cents to earn a nickel
on the other hand, the PASSENGERS rid
inc from Brooklyn's ultima Thule to
Times square are saving $4,000 a day
in fares, and more than that in con-
venienCe Of access TO the delights and
utilities Of Broadway The riders saN
ings are not the city's loss There is
revival Of real estate along the length
OF Broadway and throughout residen-
tal districts which iust'fles the collec
ton Of taxes on billions OF real prop
erty. The loss on the railway operation
already Is dwndllng, and when it van
ishes with it will go the last remnant
of criticism of the plan which Mr.
Sh0nts suggests might be applied TO
national utilities which just now are
approaching shallow water in foggy
weather.
Mr.. Shonis remarks that city railways
have been built several times over
through the development Of the art IN
lis various phases Of horse cable, cleo
trio. and uhway trafilc. That is even
more true IF the steam railways They
are thoug by some 10 be born Of
wa,ered capital Millions Of capital
and wears Of time have been lost in
the atteml 90 reduce profits not
earned" ih critics said. As in the case
OF the dua subway, there have been
profits which the accountants cannot
ind in tn books, but which are so
great as @ dwarf the similar Indirect
profits from the dual subway. Billion
OF farm values have been created by the
extension the railways. and the
worlds hol Of escaping famine IS les
sened by tie arrest Of the growth Of
railways through The assault ON their
profits Tho unearned profits as cal
culated by the most earnest muck
raker sink into insienincance compared
with the distress of this year, and with
the threat Of its continuance unless
some means shall be found TO allow
profits TO the railways In consideration
OF their functions as national utilities
as well as privately owned producers OF
PROFITS A. Mr.. Shonis puts it, the nb
UOudl ntiFNh NNNiA h' ? ecu ~ fh'
national officials should have
the vision 10 see and the courage
10 plan ani carry ont a system re-
co-nized az uneconom'C from The
,ie,yrofnt or mined ate tran roria
ton return on The inrcslm nt bur
ustinahle { ON the broader View
ro'ri Of de- olorment OF territory
with inc,ea tax rctu ms, growth
rr -fr. hofrr and haalihle
living conditions. .'hc.fer living
ID s.olI. at,r hea b, wealth.
happiness and com.,"- ,lr our ciu-
Zens.
& Is an inspiritlng sue 'sf on, and th,
temrtatioq is Great 20 1S y fu-ther NJ.
shonts's Development o. ceiails we
have had regulation foi me reduction
OF profits Mr.. Shonis nu~ would Ike
10 see regulation for On, scke of in