New-York tribune., 1919-06-20
Tells Commission Inyestieat.
ing Street Railway Prob
lem Government Owner
ship Could Be Avoided
Likes Cleveland's Plan
There Passengers Pay Ac-
cording to Expense of
Maintaining the Service

The commission appointed by Presi-
dent Wilson to look into the problems
confronting electric railways in this
country began it's session here yester-
day in the court room of the Public
Service Commission, 40 Lafayette
Street. William Howard Taft, who in
his Term on the War Labor board
dealt largely with electric railway
problems. was the first witness called.
He said he and his associate in deal
ing with this question, Frank P.
Walsh, had reacheds the conclusion that
IN general, wages paid by public utili-
ties were far too low. In the case of
many railways, he said, it had also
been found that the finances of the
company could not stand a heavier
drain. This, he asserted, had not af-
tected the board in making awards
The general situation among public
utility corporations was, he said, most
discouraging. This, he said, could be
remedied for the most part by in
creased fares.
ION the other hand" he added, "the
people generally seem to feel that a
5-cent fare is part of the law Of the
land, guaranteed by the Constitution. :"
Likes the Cost System
Mr.. Taft praised the cost system in
service in Cleveland, where fares rise
and fall with the prices the railway
companies are forced to pay out in
wages and for material. He also ia
vored the zone system,
II think this should be tried more
extensively than it has been," he said.
1.-The public has been used to the other
system, but if the zone system were
tried it might be the best means of
avoiding government ownership"
There was no question, the witness
said, that increases in wages. cost of
materials and other things had greatly
depressed the financial strength of the
companies.
"The automobile and the Ford have
greatly reduced the traffic ALSO" Mr..
Taft remarked, and added with a
laugh: 81 always think of the Ford
in class by itself. 1 never call it
an automobile''
The witness said he saw no near
prospect of decline in wages. He
also said that he had found employers
as class, determined to grant no more
increases, on the ground that the COM
panies could not pay them and main
tain the service required.
"I believe" he said, chat it would
be best for all concerned to have COM
plete state control; especially for
speed and efficiency. But there is
strong feeling among the people for
local regulation. The whole problem
should be under the state, with local
aid, but the local board should not
control everything"
John H. Pardee, president of the
American Electric Railway Association,
asked the commission for permission
for his organization to appear before
the body and testify later. This was
granted.
The afternoon session was occupied
chiefly with the testimony of Gaylord
c. Cummin, representing the Institute
for Public Service, 81 Chambers Street.
He indorsed the cost system in de-
termining street car fares, and added
that before relations between the pub
lie and the railroads could ever be-
come sympathetic the utility corpora
tions would have to do penance for
their past misdeeds.