Evening journal., 1919-07-17
STREET RAILWAYS
IN GRAVE STRAITS
Bankers Of Country Alarm
ed, Federal Electric Com
mission is Told
NEED BILLION EVERY
YEAR FOR COMP ANIES

WASHINGTON. July i7.-The old
prejudice OF the public against utility
corporations stlll exist. despite the fact
that the most Of the street railway
stock Is owned by the public, Guy +.
Trlpp. president of the street railway
committee Of 100 declared yesterday
I'm continuing his testimony before the
Federal Electric Railways Commission
appointed by President Wilson 10 In
Vestigate the street railway situation.
"One way out Of this predlcament Of
the public service corporations" M
Trip said. rs q better understanding
between the public and corporations.
an elastic system Of fares 30 meet
changing conditions. and municipal
regulation. The books should be open
TO the public as cooperation cannot
be had without it The public must
know every thing the company knows"
Speaking as one who had assisted In
the reorganization OF several metropoll-
tan street railways. Mr.. Tripp sum
married. the situation as follows:
There must arise a better under
standing between the public and
the public utility corporations.
The awards 20 employees OF the
war labor board were justified and
no reduction in wages can be rea-
sonably expected
There arc no further economies
IN operation 10 he expected. The
companies have gone as far az pos
slble IN that direction.
While the Federal commission Is
sitting Il will probably hear OF
large companies going into bank
s. ruptcy.
Need 10 Double Nickel
Unless there is elasticity IN the sys-
tenn Of fares" which Will be recog-
nized by municipal authorities and
used 10 meet changed conditions, Mr..
Trip said. the companies can only
only 60 into the hands of q receiver. |
The fare would today he about ten |
cents If u had kept pace with currency |
depreciation through increased costs OF |
everything. Even II municipalities |
waived all taxes and incidentals. such !
as paying assessment, the street car
companies could not live under present |
conditions. he added
Bankers Of the country are thor
oughly alarmed over The situation and /
there will be little investment in street
railway securities unless the situation
changes" Mr.. Trip said. "The value
Of securities has been melting away
like snow under a summer sun for
some time"
W. J. adlee president OF Stone &
Webster Management Association. told
the commission That the street railways
OF the United states need between 5000
100000 and S700O0OO00 new capital each
year for the necessary extensions and
n they are to keep up
their service and meet the public de-
mande The properties need also each
year between s3OO.OOOO00 and $4,000
900 f.r the refrnding Of existing out
securities.
Therefore" said Mr. Brardee. ZAP
siO00OOOO0O "A year Is
needed by the electric railways each
ear 10 meet adequately The demand on
them and serve the public. This ques-
ii0n Of new capital is The crnx Of the
whole electric railway situation. There
are only two ways Go get this money
either through municipal ownership or
through the establishment Of some plan
So that the p,iNaie investor viii feel
mat De can count on "a reasonable re-
turn on the capaai invested"
n. /. Stuart. OF lIalscy stuart &
Co.. Investment bankers N Chicago, y
told the commission That there is today
absolutely no market for street railway
securities in the United States.
In response 90 questions by Chairman !
Fimquist. Mr. Tripp said ne believed .
hc form Of regulation IN the future I
.hould be through local authorities a
md that there should be a new form Of 4
contract between The municipalities in
ercsied and the street railway compan- S
es. which would virtually guarantee ]
'alr return on the investment. Z
Mr.. Trip opposed control by Statel