Evening journal., 1918-05-18
SUGGESTS SOLUTION
OF TROLLEY PROBLEM
Philip Burnet FavorS New
Franchise Like That
of Cleveland
WRITES LETTER TO
UTILITIES BOARD

Iurmsn permanent sOlublVn ul lub
problem in Wilmington: ]
Wilmington, Del. May i1, 1918. /
Board OF Public Utility Commissioners, /
Wilmington, Del.
Dear Slrs-Nfr. r. ". Wilson. vice
president and general manager OF the /
Wilmington and Philadelphia Traction /
Company, asks me 10 write you a let /
ter requesting you TO give Immediate
and favorable consideration 10 the ap-
pllcatlon Of the traction company TO
Increase It's rate OF fare in this city
from . 10 cents.
] submit for your consideration that
YOUR decision Of this important ques-
tion will have an effect which may
reach far into the future OF the com
munity as regards its relation to what
is perhaps its most important public
utility.
Is this not the time 10 settle the ques
ton not alone from the standpoint OF
present expediency, but also with
view TO the distant future when, as
many anticipate. Wilmington may have
grown into a large and important In
dustrlal center, with a greatly increased
population, whose welfare VIII depend
IN a most important degree upon its
transportation facilities
May I suggest the advisability Of con
sidering at this crucial moment the
question Of a new franchise FOR the
traction company somewhat after the
Cleveland or the Chicago models, where
by the traction company Will be as
sured Of
First-A fair but moderate rate Of in
terest on valuation to be agreed upon
between the city and the traction COM
Fuf a nf
any future improvements or extensions
and In addition TO the interest upon
such agreed valuation.
Second-A fixed share q per cent or
lessl OF the net profits over and above
The interest on the agreed valuation,
the remainder Of the net profits going
10 the city as a direct payment, or as
In Cleveland. taking the form Of an eu-
tomatic reduction in the rate Of fare
whenever the eity's share Of the net
pronts Is sufficient TO effect such a
reduction.
Third-Converseiy whenever the mel
profits are not sufficient 10 pay the i'm
terest TO the traction company on the
agreed valuation. the fare would be au
tomatically increased until a surplus o
not profits emerRes sufficient 10 agar
effect an automatic reduction in tn
rate Of fare.
The effect az some such franchis
agreement. assuming the proper value
tion 10 be fairly adjusted in the be
ginning. would he. 80 To give IN
fraction company every inducement 10
efficient service at al times: o II
make the city a partner with The trac
ton company and thereby 10 share II
fortunes, rcaping the hene1t Of ih
success; (3) Automatically adiustin
the always vexing problem Of the rat
of fare; and fi). adjusting for year
10 came many Of the most trouble
some problems Of the relation Of IN
traction company not alone 70 the cit
as a municipality but also the relatio
Of the traction company 10 its patron
Tn a word 10 should be possible
some way to effect an arrangemer
which. on the basis OF the co-opers
tive principle. VIII make the Interest
OF the people. the city and the tractio
company more or less identical. so thi
none can profit al the expense or IN
others. but only by beneftng all nai
ties TO the agreement.
Mr. Wilson points out In his lette
which I presume has been sent TO man
citizens that during tho nrst thr'
months Of this wear. the Delaware ope
stions OF the traction company resul
ed i'm a loss Of more than $4,000.
Tn making this calculation Of los
do not know whether Mr.. Wilson h'
reference merely 10 a net operatil
loss. that is 90 the difference hetWcl
the gross revenues and The operating q
penses. or 20 the net loss which r
suited after deductng interest on on
standing obligations. rentals. etc.
n. as assume. the SJ50O0 represen
the loss after deducting bond intere
rentals. etc. the question arises ss
what part OF the interest and rent;
represents the interest on actual inve'
nent and what part II any represer
capitalized profits.
To the extent that the interest a
rentals represent not the interest
sctual investment, but capitalized prof
10 Is an open question as 10 wheti
the loss should fan upon the public
the owners OF the property
IL seems TO me. however that
might be a grave mistake TO try 10
eide the question at issue merely
the basis of present expediency d
solely TO meet the existing emergen
Once the rate Of fare is raised. u n
be diflcult 70 reduce it again, IL n
continue until after operating eXpen
have declined, with the result that
profits OF the Traction Company n
he greatly increased. those increa
profits may be capitalized in one v
or another. and IL may then be
possible 10 reduce the rate Of
without causing serious loss to IN
cent holders OF securities who n
have purchased them on the basis
the enlarged earning power result
from the Increased rate Of fare
May ] urge you, therefore. II 10
pears desirable 70 YOU 10 consider
cteasing the rate OF fare at this q
not 10 do so without also giving e.
consideration 20 what seems 20 me
he one Of the most vitality import
questions as 10 the future Of the {
namely the question Of new n
chise arrangement. as above sugges
which will not merely meet tho el
Ing emergency. but what Is even n
important. will so adjust tho relat
between the city and Traction
pany as 20 result. for many yeari
cpme. In more or less autom
adaptation Of the operations Of
Traction Company 10 the welfare
interest Of the community.
Respectfully submitted.
Philip Burn
MILK FLOWS IN STREET.
Running away from Fourth and Fr
lin streets yesterday, a morse alta