The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-09-29


Will they be operated by cities, pri-
yate capital retiring because it no
! longer can be assured Of fair return
on investment?
Shall the present arrangements con-
tinue to operate the lines on an in
creased fare or on guarantee basis
from the people who, in effect, will
say: you give as good ride and we
will pay for it and guarantee YOU
fair profit?"
These are some of the questions that
are being asked in every village, town
and city IN tie land today. Interest in
them is widespread not only because
very large percentage Of the people
ride on street cars in cities and
through sections served by interurban
lines, but also because street railway
securities are as widely scattered,
perhaps, as any class Of standard in
vestments in the world today.
Attention has been especially di-
rected to the situation by the conven-
ing in Washington of the Federal Elec.
trio Railways commission, appointed
! by President Wilson to inquire into
the situation and recommend methods
of improving 1t. He realized, as have
/
secretary Of commerce, that the Euro
Lpean war, with it's resultant high
prices, threatened to be the straw that
broke the street railway camers back,
and he deemed it an industry well
worth saving. Hence the commission
and it's hearings, now in progress.
The commission has been in session
| for several weeks, sitting day and
;z-.xt ,% hot
street railway business. So far 1t has
heard the side of the street railway
men themselves, presented by operat-
ing officials, bankers, economists,
members Of public utility commits
sions. manufacturers Of street rail-
way equipment and many others, and
there has not been note Of disagree
ment. The condition Of the street rail-
ways has been painted as desperate
and the prediction has been made
calmly and without heat that unless
relief is granted quickly many OF
them will go into bankruptcy In the
near future.
Only a few days ago square
jawed man with a good fighting eye
sat up in the hearing room of the
interstate commerce commission IN
Washington and declared that the In
terboro Rapid Transit company OF
New York would be In the hands Of
receiver by January LIST unless 1t IS
given the right to raise its fiVe-cent
fare possibly to eight cents. Think
/ for a moment of that-the 1nterboro
company, that operates the subway
and elevated lines of New York; that
makes 1t possible for the Manhattan
| lite to live ten miles away from the
Battery and not spend all his life in
street car-the Interboro, that has
been damned most Of It's life, out
which is as essential to the daily ex1s-
tence of hundreds of thousands Oh
persons as breakfast or the nights
sleep. The square-jawed man VINO
made this prediction was James L..
Ouackenbush, counsel for the Inter
boro company and intimate student OF
Il its history and affairs. He left no
/ doubt In the minds of the commission
that he knew what he was talking
about. but he startled dozens OF the
street railway men present by his
prophecy that fate not unfamlllar
to other companies now stares in the
/ eyes of this greatest of all the worids
city transportation systems
How many more Of the cities and
towns of the country are approaching
! the same end no one probably can
saw. unless 1t were possible to get the
officials Of every company to testify.
But already there are nearly 1901
miles Of line that were being put TO
public use a few years ago that now
are either in the hands of receiver
or have been junked or abandoned
| Bankruptcy of street railway does
not mean, Of course, that it will gu
out of business, but it probably does
mean poorer service for the money
spent, little effort to keep UP main
tenance, or build extensions, as is the
practice of lines that are on paying
basis
There Is more than $4,000, 900, 900 in
vested in the street railroads or the
United States, and they operate more
than $4,000 miles Of line, with close
. to 800 900 employees. Their bond ana
/ stockholders, the commission has been
shown. comprise all classes of 1nves-
| tors-bank. insurance companies, trus-
tees and individuals. The average
holder of this class Of securities does
not have more than $4,000 In them, so
] that they are not rich mans favore
lite and their depreciation and the IN
solvency Of the companies by which
they have been issued means loss
and deprivation to hundreds of widows
and orphans and in many cases may
| have a more or less serious effect
upon some life insurance companies.
/ The American Electric Railway
association has been presenting the
/ cause of the street railways to the
commission. 1t has, according to its
I officers and the committee Of one hun
bred, which it has authorized to speak
for it in Washington, laid all its cards
on the table. 1t has not attempted 10
! deny there has been water put IN
many Of the old companies; it has not
denied particularly that there may
have been some questionable practices
! in old days, although none has been
shown so far But it has asked that
the commission remember that first
/ of all, if it does anything at all it
must act quickly, recommend fare
raise for the lines, and leave the per