New-York tribune., 1919-05-31
Presidents Board
On Trolley Inquiry
To Be Named Soon
Will Seek to Solve Prob
lens Which Have Thrown
Half of the Nations Car
Lines Into Bankruptcy
By Theodore M. Knappen
Mem York Tribune
LY1SL;rot,, g,

~ VdSfltngtO' bureau
WASHINGTON, May 30.-The vari-
Gus government departments and in
dustrial groups that are to be repre-
sented in the Presidential commission
that is to undertake to solve the uni
versal street railway problem have
been holding conferences to select
their members, and it is understood
that Secretaries Redheld and Wilson
will announce the personnel of the
commission within few days.
The commission is to be made Up of
representatives of the Treasury De-
partment, the Department of Com
merce, the Department Of Labor. the
National Association of State Utility
commissioners, the American Cities
League of Mayors, the Amalgamated
Association of Street and Electric
Railway Employees, the American Elec-
tnc Railway Association and the In
vestment Bankers Association of
America
Economic and industrial authorities
say that the deplorable condition of
urban transit throughout America is
one of the chief deterrents to stabili-
zatlon of commerce and industry Fiji
ty per cent of the street railway sys-
TENS of the country are already in the
hands of receivers, most of the rest
are practically insolvent and all of
them are involved in difficulties that
prevent adequate service and foster
continuous disputes with local authori-
ties and with labor. In Connecticut
for instance, out of 828 miles Of urban
railways all but 1913 are in the hands
of receivers.
Higher Fare Usual Demand
The remedy most commonly sought
is an increase of fares. Even this rem
edy does not always prove efficacious,
as IN some communities where in
creased fares have been attained re-
celpts have fallen off, owing to de-
creased patronage.
Another remedy considered bv some
OF greater value than increased fares
IS the abolition of the special taxes
and charges imposed on most street
railway companies, such as franchise
royalties to city treasures, upkeep of
pavement between tracks and the
cleaning and sprinkling of that area.
special car taxes, contributions to park
funds, etc.
a national authority on urban trans
portation, who is cooperating in the
preliminary work of the commission.
said to-day that fundamentally there
are only two possible solutions of the
present condition, as follows:
First Municipal ownership. which
would contemplate operating street
railway systems at loss on present
or even reduced fares.
Second-The institution of varv
ing fare based on the cost of ser
vice plus an allowance for a fair re-
turn on the capital investment.
Advocates For Both Plans
Advocates of municipal ownership of
street railways say that street rail
ways have become as much a part of
logical municipal ownership and con-
troll as the streets themselves, and that
they should not be expected to nav
their full cost of maintenance and on
Grafton
They further say that urban rail
ways are so intimately connected with
the proper functioning of city life that
the only way in which they can be con
Quoted without frequent brolls is
through city ownership.
Those who fear that the usual delin
quencies of government in business
would prevent businesslike administra-
ton urge that sliding fares, CORE
spending to the cost of service, would
establish stability and harmony with
out involving the shortcomings of pub
lie ownership. They argue that the
public would soon become accustomed
to changing fares and would not object
II assured their fares were paying only
for efficient service and a fair return
on the invested capital.
Prompt Action Imperative
The need for prompt action alone
constructive lines is declared to be
imperative IN order to avoid labor trou
bles, to do justice to investors. to pre-
vent deterioration of service and pro-
vide for necessary extensions of lines.
The housing problem is Intimately as
sociated with the street railway prob
lem, as the extension Of urban areas
depends upon transportation General
business prosperity also is involved. as
street railways are said to be the third
largest buying power in the country.
The Presidential commission is with
out any legal authority or powers, but
1t IS hoped that its. recommendations