Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1918-06-20

Of the Board Of Public Utility C6nmls-
sioncrs testified that he did not know the
amounts of the basic rentals under which
the Wilmington and Philadelphia Irac-
ton Go, operates the various street rail-
ways in this city, and this despite the Tact
that such rentals are vital and perhaps
large portion of the total annual operating
expense.
~ The same member testified that nc
did not know the amount OF annual de
probation which the Traction Company
charged in its operating expenses despite
the fact that this item is vital and un-
doubtedly IA large portion OF such expense
IS The same member testified that he
WAS unable tai determine from the financial
statement submitted by Lybrand, Ross
Bros and Montgomery and from the re-
port of A. J. Manson whether tho Whining
ton and Philadelphia Traction Company
had capitalized the value of the various
franchises of the companies it leased, or
whether the various companies leased had
capitalized their franchises.
% The same member testified that he
was unable TO determine from any OF tho
statements submitted him on which To
base an increase in fare, whether the VII
mington X Philadelphia traction Go
had included IN it's statement ot opcrat-
ing expenses improvements and additions
Ia plant. which should properly have been
charged to capital account
COMMENT OK COMMENT
with special reference to the ques-
tions raised by Council and the public,
not as to the integrity of the reports ct
l.ybrand. Ross Bros and Montgomery
and \. ] Manson. but rs Ia their useful
IN,
fare. the following comment was also
made by MIR Garrrttson Such criticism
as has been made along tins line u only
due To inexpcrlcncc and ignorance OF the
persons making IT. | am unable tn
say where Mr. Garrctsnn obtained his
experience and where he obtained hie
education II must hc n remarkable
institution indeed which gives To any one
man n monopoly on human intelligence
Prom the foregoing statements II -
evident that the basic elements entering
into the necessity for nm increase IN rates
were not known TO the Public titilitvt ON
missioners, and think II VIII also be roc
ognizCd that the board has been unable to
suhStantiatc lis action IN the eyes ~ tho
public
within tho memories of every man
present tonight tho street railway system
operated IN tho city 0t " ilmlngton
has been sold IN whole or IN part at lcast
three times Il Is perfectly safe 10 conclude
that each sale was . profitable Ventur"
for the owners. otherwise such sales would
never have been made
let us examine the situation At close
range IN order that the intense public
interest IN this mnttcr may he satisfied
pRot ME,p oUoTTp
"A franchise * IN agreement TO winch
the public and the public service corpora
uons are parties The public on ITS he
half gives certain privileges and special
opportunities FOR making money the
utility perhaps not expressly. but hv
acceptance az the franchise agrees 70 DC
vclop hose privileges and opportunities IN
such /, WAY rs to benefit not merely itself
but tho people from whom these advan-
tagcs are derived
Let me quote fcw words of t'rot
Edward Sherwood Mead Of the Wharton
School ~ Finance and Commerce Of the
University of Pennsylvania
There Is widespread sentiment
that the Public Service Corporations have
not lived M to their part OF the agree
mcnt It i claimed and generally believed,
that these valuable franchise privileges
have been capitalized NJ excessive figures,
and that unreasonable rates and pnccs
have been charged to pay interest and
dividends on this inflated capitalization.
As i result Of this heavy capitalization
which often takes the form of bonds or Is
rcprcScnlcd bV lease sat very high figures.
II Is claimed that he good service which
should be rendered by the Public Service
G corporation is frequently allowed 10 deter
ioratc In other words IN order TO pay
interest dividends and rentals the public
Is forced To stand IN street ears when a
more moderate capitalization will allow
sufficient equipment to give each rider a
scat
These remarks impress me as being
applicable to the situation in
Wilmington
In closing would like to recall a Ia
nous occurrence OF many wears ago winch
also has It's present day application
When Lord hive on hrs return from Indie
was accused IN tho House OF Comnons al
he practice of cxtortiou he replied -SIr
" hen think Of what might have taken
I am astonished al my own moderation
This attitude Of mind | am sure Is an
accurate reflection Of the opinion of the
Board Of Directors of the Wilmington
and Philadelphia Traction Go. in the ) 10
b and 6 10 cent fare controversy.
Respectfully submitted
Signed James " Robertson
'JUsr BEGUN 70 FIGHT.
Handing over to the newspapermen
copies ot the statement ~ we'll As copies
u the queries he had intended To pro
pound 10 Mr. tIaTrctsOn and his fellow
members of the board Of commissioners.
Mr. Robertson observed that the fact
hat the commissioners hadn't appeared
did not end the inqulsItlon, which state
ncnt he hammered home by telling the
story OF John Paul Jones and his memo
-able scrap in the Bon Homme Richard
with His Britannia Maiestys frlgatc
Serapis during the Revolution, when Jones.
asked to haul down hls flag and surrender
by the skipper Of the Scraps leaped onto
1 gun carriage on his quarterback and
beloved to tho Brtisher through
speaking trumpet tina, he had just begun
10 fight
Il want To say. he went on, turning
% the representatives Of the public IN
Inc audience space of the chamber, that
his is your fight and We are fighting it for
YOU And further we want 10 assure YOU
hat like Jones, we have just begun to
light
The neat minute President Lyon was
putting q motion to adjourn.
WHAT ROBERTSON MEANT TO ASH
The following arc the questions MIR
Robertson meant TO ask the commission
RS he expected to intcrrogate:
The " lmington and Philadelphia |
Traction Company was Incorporated |
Jnder the laws If Delaware on june y |