Evening journal., 1918-07-03


For example, Mayor Hylan in New
York City is frankly In favor Of mu-
nicipal ownership and operation. lie
claims that the election In New York
City practically indOrscd that policy
The New York Legislature refused to
pass bill making it possible to mu-
nicipaiize railroads I'm New York state.
Mayor Hylan, however. sees In the dis
tress OF the New York electric rail-
ways an opportunity TO force them
into bankruptcy. These companies can
not get increased revenues without per-
mission og the Board Of Estimate,
which IS likely 20 follow the Mayors
initiative. Withholding justice will ul-
timately mean bankruptcy for all COM
panies In New York City II present
tendencies 60 on unchecked. IL Is CON
ceivabie that investors, seeing their
properties deliberately wrecked b. such
tactics, might. as last resort actual
ly invite manipulation, in order 10
save something rather than, for the
sake OF a principal allow the last in
crement Of their equities TO be melted
away. But what can be said OF the
morality aud the honesty OF such pol
Icy on the part OF a city official? And
Mayor Hyian's case is not unique
Contemporaneous with an this is the
necessity many companies are under 10
undertake new financing. or, at any
rate, Co refund securities i'm this year.
We understand that about Si2j,O00O0O
in electric railway securities must be
refunded. The War Finance Corpora
.tion has taken the position that it can
mot refund or finance corpor3tiOns
which are not thoroughly solvent and
that i'm any case, the financing should
be done by banks and then perhaps re-
discounted through the War Finance
Corporation. Even In the case Of the
Brooklyn Rapid Transit Company
where the War Finance Corporation
did come 90 the measurable relic. OF
the company. the obligations imposed
were such that the company had 90
stop an dividends Thus thc attitude OF
tho government today Is that. while
the public is forcing the companies to
ward bankruptcy. the government and
The public will not assist in flninclng
company. which, even by reason OF
the emergency OF The war, is or threat
ems 90 De bankrupt
This is What Confronts You.
Briefly then, the electric railway in
dustry is faced with a demand express
ed through a public agency, the War
Labor Board for increased wages for
It's men: 10 Is faced with a demand
from the public for the highest pos
slble grade OF service 90 help achieve
the supreme public necessity. that ls.
90 win the war yet the public refuses
t1 permit it 90 raise its charges 30 as
DO meet ITS increased obligations and,
in the case OF companies which must
be reflnanced refuses to assist them -h
their difficulties.
II is no wonder that the country has
seriously considered whether or not 10
would not be wise for the President 90
assume partial control OF electric rail-
v-avs This Is frankly a counsel OF
despair. 70 Is not necessary In order
that the public may have the SERVED
or that duplication OF effort may be
avoided as was necessary in the case
OF the steam railroads. The only pos
slble necessity for the President tax
ing over the electric railways Of th'
]
cipal and local authorities refused Il
allow companies 70 earn sufficient rev
enus 20 enable them TO give adequate
service 10 pay adequate wages and q
obtain necessary capital Win WllcA
90 continue their work.
Why Federal Action Must Come at
Once.
Is 10 not a tragedy. one Of the SUI
prcme tragedies OF this war that this
country should have had 20 face this
question: "Nlust the President Of the
United states. as an act OF statesman
ship. Dee forced 20 grant federal relief
simply because authorities i'm localities
and municipalities prefer 90 play pet
tv politics rather than frankly face the
needs OF the l0ur?' There was never
a greater call 90 local authorities 20
manifest craftsmanship in national and
city affairs It would De a great pity
If the President had Go exercise con-
troll over utility rates for { would
take away from municipalities that re-
siraining influence which their author
tiles ought 90 Doe able 90 exert on the
operations o, their local utilities.
Nevertheless the record 0f local 8u-
ihOrities during the last few years IS
not such as 60 inspire any confidence
that IN general they viii deal speedily
with utility fare increases unless
strongly pushed by The government
But there must be no diiai0ry action ia
handling This fare question; If wages
are substantially increased, more rev
enues must simultaneously be secured
or in an likelihood the whole indus
try VIII be thrown into panic. The
situation. therefore. demands federal
action a national agency empowered
90 Intervene i'm local situations in case
the cities or commissions refused inn
mediate relief. would give an opportu-
nitv for the exercise Of local patriot
ism and st the same time insure the
railways against disaster.
Meet the Situation Squarely.
Let the War Labor Board consider
the electric railways labor problem
from the point of view OF what wages
the men should receive. Obviously i.
cannot be considered on the basis mere
~ OF what the companies are able 20
nav. Let 10 rather be dealt with from
The point Of view of what the COM
panics should bo able 90 pay. Let the
national authorities at the same time
tell local regulatory bodies In specific