The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-07-28
HIGHER FARES
ON ELECTRIC
Lines COMING
Electric Railway Commits
sion Is Now Busy Quiz
zing Owners and Others
in Touch.
BY GEORGE n. MANNING.

on the electric street railways and the
interurban lines all over the country
is almost certain to be an early result
of the investigation now being con-
Quoted by the Federal Electric Rail-
way commission into the financial con-
ditions surrounding the street and in
terurban transit situation.
The increase is likely to apply 20
where the fare has recently been raised
to cities where no advance has oc-
CURED.
The curtailment of the transfer sys-
tenn and the charging Of 2 or cents
for each transfer is likely to accom-
pany the straight fare advance.
Almost all the street and interurban
electric railways are either in bank
ruptcy or facing financial disaster and
increased fares must come soon,. and
very soon. or they will be in hands
of receivers with great disaster to the
stockholders and banks holding their
paper. the Federal Electric Railway
commission has been repeatedly told
by the representatives of the electric
railways from all over the country VINO
have been on the stand before the
commission for the past two weeks.
The Federal Electric Railway COM
Wilson several months ago to make
recommendations for relief of the cleo
trio railway situation. On July 10Th
the commission began taking testimony
of representatives of the electric rail-
ways, and is expected to conclude IL
by next Tuesday or Wednesday,.
A recess will then be taken until
August 4th when the commission Will
hear testimony from Secretary OF war
Baker, Prof Irving Fisher OF Yale
and several other college professors
and experts on economics. Mr. Baker
is an authority on the city transit
question.
During next week, commencing Au-
gust 18th, the commission Will near
the statements of mayors of the larger
cities of the country, particularly
mayors of cities with acute transit sit
uations; state public utilities commits
sioners and others having full knowl-
edge of the electric railway situation,
and representatives of labor organiza-
tons.
The mayors of cities like New York.
PHILADELPHIA, Chicago. St Louis and
Boston win be asked to appear. The
commission is anxious to hear
the statements of mayors OF cities
where there are vexing transit situa-
lions, and has sent special invitations
| to the mayors of Seattle. where the city
took over the street railway lines To-
lledo. where the company has been or
dered to take it's cars off the streets by
August 1st. and San Francisco where
the city now owns its street railway
lines
According to the testimony OF the
of the street railways
and interurban lines almost all the
ransit companies are now losing mon
ev. the public is getting service far
better than it is paying for, and in
crea sed fares must come or the lines
will be bankrupt.
Here is a summary of the situation
as told to the commission by the
transit representatives:
There is scarcely an interurban line
or a street railway line in the country
that is paying dividends either on its
preferred or common stock.
Because Cd the lines have been ex-
tended to where they are no longer
profitable: CD the jitneys which are
not taxed like the railroads have cut
into their business; (3) the public has
/ stopped riding to save money; (4) the
Young men, who do much riding, have
been abroad; t5) cost of labor. ma
terials and all operating expenses nave
increased; and (6) because people are
riding in their own automobiles IN
stead of on the street cars to and from
work and for pleasure.
The remedies recommended are:
~ Increased fares, curtailed transfers
and charge for transfers; CD relieve
the transit line from payment of spe-
cial federal taxes: CD reduction OF
local taxes; (D relieve the railways
from heavy expense now borne Tor
keeping streets in repair along the
roadways.
The financial situation of the cleo
trio railways as outlined to the com
mission at the hearings of the past
two weeks is as follows:
The electric railway companies are
in serious danger of collapse and dis
solution because for the past several
years their expenses have been steadi-
ly and rapidly increasing while their
receipts have been practically station
ary The failure of the street railways
to obtain adequate returns upon invest
ment not only means a loss to indf-
vidual owners of securities, but VIII
have a far-reaching effect on insur-
ance companies. bankers, trust COM
panies and other fiduciary institutions
who have invested savings in securi-
ties of the electric railways. During
the war wages of the street railway
employees were raised by the govern
ment. in many instances almost 100
per cent, through the War Labor
board: the government took command
of their fuel supply and fixed the
prices, controlled the prices of all ma :
terials they used, in many instances
prescribed the service they should rem
der and directed them to purchase
additional equipment, all adding to
their burdens without in any instance
assisting them to bear them
Statements have been submitted by
the witnesses shown gthat on May
81. 1919, So electric railway companies
with a mileage of 5.912 miles of single
track wero In the hands of receivers