The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-07-24
TOPEKA STATE JOURNAL
INFORMATION
BUREAU
FREDERIC J. RAzKIN. DtrO0eo<.
WAahanEtoa, D. @
THE STREET RAILWAY CRISIS.


Washington, D. c., July 21.-The
Coxey's Army of today is made up Of
| the street car magnates of the nation
all treking to Washington to plead for
relief from post war conditions, which.
understanding an era Of great pros
perity for most industries. are unques-
tionably driving them into bankruptcy.
1t is not necessary to take the word
Of the street car men for this fact.
The secretary of labor and the secre-
tary of commerce months ago became
convinced that the street railways
were in a precarious condition and
wrote the president urging that he
take some action for their. relief The
president issued a statement in which
he directed the attention of public
service commissions II d o h e
agencies exercising control over street
railways TO the necessity of action
looking toward relief. Relief in the
form Of permission to raise fares was
given in some communities but in
many others the authorities were
adamant. The result is that one-sixth
of the street railway mileage in the
nation is today in the hands of re-
ceivers, and other large portions of it
are taking losses while waiting for
relief
There is a peculiar condition that
that is different from every other irn-
portant industry. All industries are
faced with the necessity of paying
greatly increased wages, higher prices
for materials, more overhead at every
step. The great mass of them are re-
spending by charging more for their
product. So it is that the public to-
day pays more for it's shoes, its
bacon, its movie tickets.
But the product of street car COM
panies is rides. Rides are the only
thing they have for sale. AS the cost
of operation advanced they wanted to
| increase the price of their product
as had other industries
. They found, however, that they
might not do so. AS public utilities
they were under the control of va
rious agencies, very particularly as to
the fare they might charge. They
could not increase that fare without
various peImissions.
There are differences IN many
states but generally there is a triple
control of street car lines. The first
is based upon the provisions OF their
franchises, issued by the municipaH-
! ties. The second is a police control
which prescribes the detail of their
operation on the streets. The third
is a state control, usually taking the
form of a state public service COM
mission.
sion is the most important official
body with which the street car peo-
pie have to deal. 1t is usually the
agency which stipulates the fare that
may be charged. These commissions
are, of course, political Being polit-
in the face of public opinion. The
street cars are owned by corpora
tions. The fares are paid by the
| masses. 1t is dangerous for a political
hN1wr
ton when it is going to cost virtually.
every man, woman and child money.
So the public service corporations
have often hesitated in extending re-
lief tho in many cases they have
struck forth and acted boldly.
The public service corporations
have not always had the authority to
increase fares. Often the franchise
issued by the municipality has placed
maximum on fares that might be
charged. Before the war there was
no appreciation of the possibility of
such a financial situation as exists at
present. Some people saw the vision
of a street car fare of less than a
nickel but nobody ever dreamed that
a larger sum would be needed. So
these franchises often state that not
more than five cents shall be charged.
In such a case the city council may
have the authority to allow a higher
fare. In this case again there is the
danger of breeding unpopularity with
the voting public and these councils
do not always act with promptncss.
The companies may be losing heavily
while these issues are being fought
out.
Again It may be impossible under
these franchises to charge a higher
rate-Without referring the question to
vote of the people. This has been
necessary in a number of communi-
ties. The car riders of Buffalo, for
instance, were asked to vote them
selves a higher car fare. At the polls
they promptly refused to authorize
the raise. The proposal was lost and
the company was left on the old basis.
Wherever this sort of revision of
franchise has been referred to popu-
lar vote it has been defeated.
The authorities at Washington have
been much concerned over this con-
| dition of affairs. Finally a federal
street railway commission has been
appointed to investigate conditions
turnout the country and report with
recommendations. The Investigations
| have been going on for ten days
This is the occasion for the gathering
| of the street car magnates from all
the cities of the nation. They say
I that they are attending wake over
the corpse of a great industry. Rep
resentatives of the government are in
clined to look upon themselves as
| coroner's jury.
The federal government feels con-
siderable responsibility for the posi-
ton in which the street railways find
themselves During the war the gov
eminent maintained a war labor board
to settle disputes between employer
and labor. That board usually grant
| ed increases in wages There were
logical reasons why there should be
| increases in the pay of labor-even
the operators of street cars. They
were getting more money in other in
dustries, why not on the cars? Train
men who had been getting from 20
cents to 50 cents an hour were grant
ed A and As cents. In Detroit they
recently struck for so cents and got
it. In Chicago they are now demand
i ing IS cents and striking for it, Forty
FIVE per cent of the cost of street rail-