Evening journal., 1918-12-06
NEEDS OF TROLLEYS
SHOWN BY GADSDEN
Interest of the ublic in
Their Prosperity is
Emphasized
IMP ARTIAL STUDY
is MOST DESIRED

ATLANTIC CITY, Dec. 6.--P. II. Gads-
den, chairman Of the war board OF tn,
American Electric Railway Association
devoted his address here yesterday to
the trolley situation as It exists today
Among other things, he said:
THE public utilities have been on.
oially declared by the President OF th'
United States 20 be essential to the
nations life. But Independently OF this
Official recognition, the dependency oi
the nation upon the facilities and ser
Woe rendered by them has been fully
recognized. These facilities constitute
the very base OF our industrial, COM
mercial and social life
in order TO suggest a remedy for
the conditions facing public, utilities to-
DAY, 10 Is essential that there should
nrst be a thorough understanding OF
the problems brought upon them by the
war. Those problems were clearly seen
by the men responsible for the con-
tinuing operation Of the public utilities
under the increased demands for SER
vice due TO the national crisis, and be-
came more and more apparent as the
nations industries were modified on a
basis Of maximum efficiency for the
prosecution OF the war.
"The authorities at Washington were
pronntly informed that II a breakdown
In the essential service OF public utlli-
ties was TO be averted. four phases Of
the situation must be given speedy at
tention:
First. Rates must be increased sum
ciently TO absorb the increased costs Of
producing the service
Second. The utilities must be re-
lleved during the period OF the war Of
all non-essentlal and unproductive re-
quirements, such as paving, under
grounding wires, duplication and un-
necessary extension OF service.
Third. Some way must be found 10
enable the utilities TO take care Of Obli-
cations maturing while the war lasts.
Fourth. Assistance must be pro-
vided 10 enable the companies to
finance the unavoidable extensions OF
service made necessary by the nations
war program.
"Hev those problems were met is
now matter Of history. That they
were not adequately met Is recognized
on all sides. Measures OF relief were
meager and too slow In coming.
zone Of the facts brought 20 the
front during the last two years is that
the whole structure OF the franchise
relationship between the public utili-
ties and the various communities has
broken down under the strain. Virtually
every other industry, except public
Utilities whose rates are regulated by
law, has been able readily TO adjust its
methods Of doing business TO meet the
war demands, and the radical Increases
In cost Of operations and OF manufacture
have been promptly reflected In the SELL
ing price, and so passed on TO the con-
sumer.
Another fact emphasized by the war
is that before a company can Justify an
increase OF It's rates II must flrst show
that for a longer or shorter period It
has suffered loss under the existing
rates, which loss cannot be cOmpensat-
ed for by the new rates. In any other
business the prudent manager is able
10 provide against Increases in cost
by promptly advancing his selling price.
The public utility must stagger along
under inadequate rates for months un-
I'll its credit Is destroyed, It's service
impaired, its equipment deteriorated,
and it has become obvious TO the COM
munity that II Is on the brink OF de-
struction before its case has been suf-
flently made out to justify an Increase
in Its rate.
In many casss franchises which had