The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1918-11-08
lBAc0RE

conclusion that the present relation
ship between the companies and the
public, as evidenced by existing fran
chises with fixed rates of fare, is eco
nomically unsound that the present
system of regulating fares by fran
chises or commissions is admittedly
not sufficiently responsive to violent
and radical charges in operating con-
ditions. Under the present system,
before the company can justify an in
crease of its fare it must first show
that for longer or shorter period 1t
has suffered loss under the existing
fare, which loss cannot be compen-
stated for by the new rate. In any
other business, the prudent manager
is able to provide against increases
in cost by promptly advancing his
selling price.
The electric railway must stagger
along under the cent fare for
months until its credit is destroyed,
it's service impaired, its equipment
deteriorated, and it has become OBJ
vious to the community that it is on
the brink of destruction before its
case has been sufficiently made out to
Justify an increase in its rate.
The declaration of war found the
electric railways thoroughly unpre-
pared for the problems thrust upon
them. Without in any way lessening
our efforts to win the war by supply
ing this essential service to the pub
lie, it would seem to be the part of
wisdom for us to take up for serious
consideration the problems of peace.
OF all the problems of re-adjust-
ment which this Nation will have to
meet and solves after the war, none
will be more serious or more difficult
than that of the electric railway in
dustry In the light of our experience
as emphasized by war conditions, 1t is
manifest that to insure the efficient
operation of the electric railways of
the country after the war, there must
be re-casting of the entire basis of
the relationship existing between the
electric railways and the communi-
ties they serve.
In many cases, electric railway
franchises, which had come to be con-
sidered as valuable assets, in the light
of recent experience have been proved
to be liabilities. Already there is a
growing recognition of this fact in
different parts of the country, as evil
denced by the operation at cost
plans recently adopted in Boston, Chi
cago, and Cincinnati.
In the past, the sole interest of the
community has been thought to be in
the service rendered, but with a
broader conception of the aunderlyins
problems involved there is growing
tendency to recognize a community OF
interest in the problems of Profit and
Loss, as having a direct and immedi.
ate bearing upon the Rate of Fare.
Now, therefore, be it resolved by
the American Slectric Rail Associa
ton:
First: That it is the deliberate
judgment of this Association, that, IL
the light of the experience of the In
dustry during the war, the entire sub
ject of the relationship between cleo
trio railway companies and the public
should have, now and during the re
construction period following the war
. the most earnest consideration of thu
representatives of both the public ant
the companies.
Second: That among other things
redical revision of electric railway
local franchises should be made, 1
the industry is to continue to render
efficient service to the public.
Third: That a committee be ap
pointed by the President of the Asso
citation, whose duty it shall be to make
study of reconstruction problems
particularly those relating to loca
franchises, and report their recon-
mendations at an early date.