The sun., 1918-11-02
ELECTRIC LINES FOR
PUBLIC OWNERSHIP
American Railway Association
Decides Change Is Only Rem
edy for Conditions.
MANY FACE SUSPENSION
Over 400 Roads Represented
at Meeting to Consider FL
nancial Problems.

A resolution indorsing public owner
ship as "the most obvious remedy for the
perils now confronting the street railway
industry was adopted at the conference
Of the American Electric Railway Assoc
citation. held yesterday in the Engineer
ing Societies Building. 20 West Thirty
ninth street. The text Of the resolution
voted upon by executives representing
between 400 and 500 of the country's
most important city and interurban line
railways follows:
THE American Electric Railway AS
ISOLATION recommends to its member
companies that they facilitate In every
reasonable way the public acquisition of
the present electric railway properties,
arranging such terms of payment as will
conveniently accord with the financial
limitations of the present laws Of the
respective States or municipalities, and
that they assist In the promotion OF
such enabling legislation as may be
deemed necessary by the public authori-
ties to bring about the fullest measure
Of public ownership Of electric railways
and their fullest expansion to fully meet
the needs of the respective communi-
ties"
Speakers at the conference emphasized
the serious situation confronting the pub
| lie utilities Of the country by reason OF
the increased cnsts Of operation and
| maintenance and their inability to obtain
| commensurate increase in fare stand
ards. Some of the speakers called at
tentlon to the fact that the Govern
| ment had regulated many OF the details
, in the operation OF the compa MES in.
| Guiding the wages to be paid to labor,
hlt had neglected to regulate the fares
SO that the companies might meet tho
increased costs.
Faro Readjustments Inperattxe.
]. d. Mortimer. president OF the MIL
waukee Electric Railway and Light
Company, who introduced the public
ownership resolution, declared that of
all the businesses affected by war time
burdens the electric railways had re-
ceived the least sympathy at the hands
of the public. The war he said. had
raised prices and wages to unprece-
dented figures and had increased the
cost or capital' to such an extent that
money could no longer be borrowed
for the necessary extensions and better
ments or for Fefunding purposes. With
out extensive establishments in fares,
he asserted. the COMPANIES were un-
able to earn compensatory returns, and
as result OF the ineQuity between
the expenditures and the receipts the
tthtiuueu optTttlOT OF the various
tens was threatened.
Regulation by State commissions"
Mr.. Mortimer declared. has proved I'M
successful because OF restrictive laws
resulting from incomplete legislation, or
court decisions, and Incompetence or
lack OF courage. or both, on the part
or the officials themselves, as well az
the tailure or the managers to under
stand all OF the tendencies Of the bust
ness"
Municipal franchises, Mr. Mortimer
said, were not the valuable assets that
many people believe them to be- and in
some cases were actually valueess ana
unnecessary. except as they were re-
CURED by law TO permit the use OF the
streets. on this proposition, as we'll as
on the need OF public ownership, Mr..
Mortimer was seconded by Richard Nc
Culloch. president OF the United Rail-
ways OF st. Louis. who declared that
franchises were now practically value
less and were no more than permits
to lay rails in public streets.
Roads situation IL Desperate.
Neither the public nor the reru-
lating bodies said Mr.. McCulloch. "a q
inclined to allow the utilities TO charpe
rates which will permit them to live, and
| In the desperate situation that tho
industry confronts public OWNERSHIP
would solve the question OF service"
Other advantages OF public ownership.
the speaker thought were that II vould
permit OF operating economies such as
the skip stop train system, the sta9ger-
Ing OF business hours, the short routing
! or cars, police cooperation in keeping
tracks clear of vehicles and other aids
20 cheaper service. II would solve also.
he held, the problem OF constantly in
creasing wages, since the emnlnvaea
could be put in the civil service and
their pay regulated as is that OF f'remen.
policement and other city EMPLOYEES
The fare question also would have 10
be read5usted through Government own
ership. Mr.. McCulloch maintained. ~
the public would have to assume through
the tax budget such deficiencies as might
occur.
Electric railway ,executivea'' added
the speaker. " should be the last to op-
pose public ownership. They will he ac
| cused of selfish interest-a desire to
hold onto their jobs Our only real
selfish interest is that OF the investors.
We should see to It that they are pro-
tected in their Investment or that their
principal IL returned TO them"
The nickel fare charged on most Of
the car lines to-day. said John ]. STAN
! ley, president of the association and
head OF tho Cleveland Railway Com
pany, is in reality only two and one
| half cent fare. The leading economists,
ne said, agree that the purchas sing power
of dollar has decreased at least SO per
cent since the early '9Os.
Therefore. he argued, 10 put the fire
| OF street railway on a parity with
| what II received in the decade from,
1890 to 1900 II would now be necessary
| to substitute the dime for the nickel