The Birmingham age-herald., 1919-10-07
Problem of Electric
 Railways Very Acute
ny HOLLAND

New York, October 6-(Special)-As long ago as 1898, Frank J. Sprague pre- oicted that within a few years, every
 where in the United States the electric railroad would be highly developed and, would represent very great increase or capital invested in the promotion and operation of highway trolley lines urban lines operated by electricity. and ulti- mately the utilization of electricity for hauling trains upon railroads heretofore operated by steam
 MT. Sprague now stands recognized as the inventor of devices and apparatus which made the trolley possible. and also the multiple unit system whereby trains consisting of several cars could be op- erated by electricity by a single motor. Therefore. what Mir. Sprague said in 1898 was received not cynically or as the dream of an enthusiast but instead as prediction well worth needing The convention of the American Electric Rail- way association, which is being held at Atlantic City during the present week. Will receive some statistics which tend to confirm Mir. Sprague's prediction, and in fact to show that his was an under estimate, rather than an overestimate.
 President Pardee of this association has
 already spoken of the gathering as fix
 ing the date for the normal activities of the organization. He Is certain that the exhibits which are to be made would exceed the best heretofore made at any of the preceding conventions. In view of the very great importance of perfecting way by which the steam railroad lines of the United tSates can hereafter be satisfactorily financed and operated, either under government su- pervision or control or by complete res- toration to the stockholders, the attention of the public had not been fixed upon the magnitude and difficulties which are now associated with tho electric railroads of the United tSates. As yet the prob
 iems which are now involved are, rela-
 lively speaking, almost as great those
 which must be answered if the steam
 railroad situation is to be satisfactorily
 readjusted and President Ferguson of
 the United States Chamber of Commerce
 has recently said that the electric rail-
 way problem represents perhaps the most
 acute domestic financial question of the
 times.
 In many communities the attention of
 the public has been called to the diff
 culties which electric railroads are now
 experiencing. But in almost every ciise
 these are assumed to be local difficul-
 ties As, for instance in New York city
 it has been found that unless there be
 relief. it may be necessary to abandon at least four surface lines operated by
 
 try attempts have been made to relieve
 the situation by increasing rates or by putting into operation the Fo-called zone system In every case of this kind the local communities have presumed that the situation was purely local one. not knowing that it was characteristic of ai- most all of the electric railroads of the United States.
 IN THE HANDS OF RECEIVERS In the early part of the year 1919 the eerious endorsements of the electric ra ailroads of the United States were of- l ficially demonstrated through report which showed Ahe number of receivers who had been appointed in the year 1918. There were receivers appointed Tor 2lh miles of track, whereas nine years earlier only 55s miles of track were in the hands of receivers.
 How rapidly the electric raiiSsads Of the United States have been developed IS shown by the figures reported by the United States census. In 1880 no more than 57O0 miles of electric railroad were
 in operation. In 1918 there were exactly
 15 00O miles of track in operation. The
 gross revenues in 1918 were little in ex-
 cess of s590, 900. The capitalization IS
 reported to be somewhat in excess of
 ss oOo. cot. 900. and this is substantially
 new wealth, most of it created since the
 year 1900.
 WHAT THE ROADS NEED
 Vast as is this capital. nevertheless 1t
 was the estimate of Cen. Guy E. Trfpp,
 who during the war was the head of the
 production bureau of the ordinance de-
 partment. that the street railways of the trr;tad States. almost all of which are electrically operated. need approximately s7Oo. .ooo, 900 in capital each year for neces- sary extensions and improvements fur- thsrnore at least $500 900 900 are needed each year for the refunding of exist ing outstanding securities. Approxi. .mately therefore, billion dollars year is needed by electric railroads if they are to meet the demands which the pub lie make upon them.- Many other statis-
 ties could be reported which tell Of the magnitude in capital in operation. in numbers of passengers carried which this development of the electric railroads since 1900 represents. There must pc some establishment. The problem is ra t;on- wide one Prosperity to some ex- tent depends upon satisfactory solu-
 tior It is a curious fact that one or