Evening journal., 1919-07-26
FLAT Street Fares
CALLED FALLACY
Railways Must be Organ
lied to Avert Disaster.
Board is Told
PENN PROFESSOR
GIVES HIS VIEWS

WASHINGTON, July s6.-Dr. Thomas
Conway, Jr, professor Of finance
University OF Pennsylvania, yesterday
told the Federal Electric Railways Com
mission that the fiat fare for street
railways is an economic fallacy," and
the entire basis of the industry must be
reorganlzed to save II from disaster.
Professor Conway summarized the
conditions as follows:
"The industry Is on the eve OF a
second tremendous increase I'm eX-
penses. Wages in Detroit Cleveland
and Boston, have within the last few
days, increased from a maximum OF
forty-eight cents 20 sixty cents an
1Our-an increase Of % per cent.
Cases are now pending before the
national war labor board and decis-
ions are expected within few days
concerning wage disputes on the East
ern Massachusetts, Railway Company
the Bay State SYSTEM the Pitts
burgh Railway Company and numer-
Gus other companies.
Employees OF the surface lines and
elevated roads in Chicago have pre-
sented demands for eighty-flye cents an
hour, an increase OF II per cent, and
have rejected an offer OF sixty-two
cents an hour, with a nine-hour day. an
Increase OF % per cent, made by the
company.
"The industry faces another great
upward leap OF labor costs. which will
make existing rates, although pre-
ViOusly increased, entirely inadequate
N most instances. The electric rail-
nHHNfI Ia
Eide demand for an eight-hOur day.
rhe granting Of this demand would
mean a very material increase in oper-
sting costs. because OF conditions sur
rounding this industry. Unlike other
businesses. Il is impossible to Offset the
reduction in the working days by a
speeding up process.
"The street railway industry stands
at the greatest crisis in its history. The
problems now presented are far more
serious than those which were faced
when the horse cars were abandoned
and the unknown field Of electricity en-
tered. The problems OF that day were
purely mechanical: today they are far
more serious because they go to the
economic basis OF the business. II is /
noN clearly demonstrated that TO en-
deavor TO perpetuate such an unsound
basis as a nat fare Is an economic fall
lacy.
'The entire basis OF the industry
must be reOrganized, and 1t viii re-
duire courage and willingness on the
part Of electric railway properties and
public service commissions TO try eX-
periments and assume the responsible |
ity OF possible mistakes to work out
the solution Of the present problem be
fore neglected maintenance and failure
10 keep up with the national growth or
this community by providing new cars
and other facilities Oyerwhelm the Op- |
Grating department. destroys public
confidence and fOrecTOses the future OF
the electric railway business.
other witnesses were w. +. Greed. /
egal adviser 10 the san Francisco Oak /
and Terminal Railway and the trans
,av service: r. Q. c. Clark, OF New
FORK. editor OF Area. a street railway
Journal. and John II. Psrdee, presl-
dent Of the American Electric Railway
association.
All these spokesmen told virtually the
tame story-high labor costs, high
sosts OF materials, increased taxes and
a revenue that is stationary or dimin-
lshing
Members Of the commission all
srinned when Mr. Greed, OF the san
francisco lines, was asked about com
,etition in the transbay service. Let
ne tell YOU" said Mr.. Greed. III
DOESN'T matter TO us. We are losing
money on every passenger we carry to-
Iay. and the fewer passengers we carry
.he less money we will lose. That may
sound curious. but 10 is true
The presentation OF the case to the
Electric Railways Commission was
completed tonight and the commission
adjourned until August Z, when mayors
II cities and other public officials will
be heard. Chairman Elmquist an
the commission had decided TO
lear representatives OF organized labor
speaking for street railway employees.