Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-03-14
TAYLOR JJPHOLDS
PUBLIC UTILITIES
Former Transit Head Says
Antagonism to Com
panies Is Wrong
MUST GUARD CAPITAL

New conditions resultant from the
war are impelling public service COM
Z missions and the public generally to
form and adopt modern regulatory
plans and theories which are required to
safeguard and advance the interests OF
the public and the public utility COM
panies.''
This statement was made today by a.
Merritt Taylor former Director of City
Transit. at the midyear meeting OF the
American Electrical Railway Associa-
tion, at the Engineering Society's build
ing, 20 West Thirty-ninth street, New
York city.
The meeting was attended by the
executives Of American electric railway
companies, public service commissions.
municipal officials and bankers with the
object of developing an understanding
of the mutual and respective rights and
requirements of electric railway COM
panies and the public.
Before the war, in many localities
the public attitude toward public utility
companies had become distinctly antag-
onistic," said MIR. Taylor.
This antagonism was brought about
in part by certain companies which had
pursued practices inimicable to public
welfare. 1t enabled designing politicians
and public officials to serve ther selfish
purposes by making reprisals against
our industry.
Practices Outlawed Now
such practices have now been out
lawed and the public has been safe
guarded against their recurrence by ef-
fectlve legislation: consequently a re-
construction of public sentiment respect
ing corporate enterprises is now dis
tinctly in order and actually taking
place.
1.-THE individual or public official who
would deny to an electric railway the
right to earn the money required to
meet its just obligations to its owners
is most dangerous and destructive pub
lie enemy"
Mr.. Taylor further stated that mutual
and respective rights and requirements
of the public and public utility compa-
nies must be clearly understood and
safeguarded in the development of a
new and settled policy of cooperation
between them which will enable and re-
uuire existing public utility companies
to establish and perform such adequate
and efficient service as the public Is en-
titled to have.
Speaking of franchises, Mr. Taylor
said:
"There has been no greater miscon-
ception in the history of American bus-
ness and public affairs than that at
taching to public utility franchises and
franchise values.
"A franchise generally has no value
in Itself unless it enables capital to
earn a greater return than it could gen.
orally in other lines of investment which
are subject to the same risks.
No Inherent Value in Franchise
"A franchise, as it stands today, GER
tainly has no other function or virtue
than that Of an instrument under which
private capital performs a public serv-
ice, and the idea Of any inherent value
attaching to it has long ago evaporated
in the mind of every one. who knows
anything about the subject.
'.In the interest of both parties, there
fore. street railway franchises must be
revised along reasonable and scientific
lines so that they will produce the re-
suit for which they exist.
"They must assure the owners Of
electric railway properties of the right
to possess and operate their properties
at least until they are fully reimbursed
the value thereof together with an ade-
quate return thereon. In other words,
common honesty requies that properties
common honesty requires that properties
service shall not be taken or destroyed
without just compensation be first Sc
cured to the owners thereof"
Mr.. Taylor, in his address, also dis
cussed the rates and the valuations of
electric railways.