Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-06-20
TAFT ADVOCATES
ZONES FOR TROLLEY
Street Railways Declared to Be
IN Precarious State Without
Increase in Fares
MANY PHASES DISCUSSED

New York. June 20.-William How
ard Taft, as the first witness here yes
terday at the Federal Electric Railway
Commission's hearing into the problems
OF public utility finance and service
said his experience as member of
a the war labor board had shown that the
car INES were in n precarious condition
because of lack of funds and that higher
fares or the introduction of the zone
system" were imperative to avert chaos
and possible loss of the $1,000, 900 ,00O
invested in traction securities.
Raising of fares to six or seven cents.
or even higher, might be necessary, Mr..
Taft said. Although the long and short
maui or zone plan should be given
falr trial. The witness said he was
opposed to government ownership on ac-
count of its extravaganza. He saw par
ticular merit in the service at cost plan,
such as is now in operation in Cleve-
land.
Other speakers before the commission
which adjourned to hold its next session
IN Washington and later meet in other
cities, were John II. Pardce. president
of the American Electric Railway As
sociation, who declared "the American
public. is threatened with the loss of an
essential and important service unless
measures be taken to check the present
tendency, and Gaylord C. Cummin.
formerly city manager of Jackson and
Grand Rapids, Mich. who put street
car lines into two classes. The first.
he said, were those able to stand on
their feet with proper rate Of fare.
and the others which could not stand
on their own feet if they were permitted
to charge any rate of fare they desired ="
Service at Cost Advocated
Mr.. Cummin, called by the commits
sion as traction expert, declared that
as the size of the city decreased the
rate of fare would have to be higher,
as the earning capacity otherwise was
too limited. He advocated the service
at-cost plan as the best system under
which street railways could be operated.
ITO fix the net rate of earnings of
a utility and not allow it to exceed
that rate" he said, would remove the
incentive for efficient operation. The
management would not then exert itself
to cut costs. realizing that its revenue
was limited anyway to a fixed sum.
Without an economic incentive. Mr..
Cummin contended, private management
OF the roads would be no improvement
over public operation. The poorer
class of utilities should be subsidized
and the loss absorbed by the public
through taxation.
In regard to municipal ownership. the
witness said that while possibly it might
be as efficient as private ownership,
this was highly improbable. He added,
however, that it was IAN improved
problem"
Charles E. Elmquist. of st. Paul,
president of the National Public Scrv-
ice Commission, presiding as chairman
of these hearings, said that at the
Washington meetings it was expected to
receive the testimony of managers OF
public utilities. members of public util-
ity commissions. representatives, of
municipalities and technical experts.
Mr.. Taft said the investigation made
q by his board into the wage problem and
the increases granted in many cases had.
he thought. more or less established an
upward tendency He did not see any
near prospect of decline in amounts
paid for labor. He had founG en-
ployers obstinate against any increases.
on the ground that their companies could
not have paid them and maintain the
service required.
Higher Price Level Fixed
He had consulted many business men,
who refused to build because of the hig'
cost of material, and now they were
beginning building, having come TO re-
gard the higher costs as level more
or less fixed.
The advsability of having uniform
law for all the states, the witness
thought. was questionable. There was
no jurisdiction to enforce such law,
and it would be difficult to get the
states all in line. If one state, how
ever, adopted a law and It worked
successfully, others would no doubt fol-
low, and a certain degree of uniformity
result. But this would exhaust much
time.
Reverting to the subject of street
railway regulation, Mr.. Taft said in
conclusion:
II believe it would be best for all
concerned to have complete state con-
troll, especially for speed and efficiency,
Z 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"