Evening journal., 1919-07-19
Higher CARFARES
OR SERVICE STOPS
F F. H H. Sisson Says Lines
Cannot Operate Without
Adequate Return
BLAMES CONDITIONS
TO CHEAPENED NICKEL

WASHINGTON. July i9-The electric
railways Of the country cannot continue
operation under present conditions and
the rate Of return from ive-cent fare,
according to Francis H. slsson vice
president Of the Guaranty Trust Com
piny. Of New York, and recognized au-
tlorsty OFT public uillily companies,
who appeared yesterday before the
Federal Electric Railways Commission.
stripped OF all complications Mr.
Sssen said, "the question seems 10 be
whether or-pot the American public is
willing 10 pay for service rendered. The
situation Is simple: Esther the service
Will not be rendered and the growth OF
our communities and the comfort of our
people Nlll be denied. or the cost must
be met either directly through fares or
Indirectly through taxes. As 10 which
IS economically sound ! assume there
can be no doubt.
"The open question is. whether the
travelling public Will continue to deny
10 its utilities the basis OF charges
which 10 accepts In every other line Of
business
Mr.. Sisson said the average pur-
chasing power Of the dollar having de-
creased about 30 per cent since 1914,
"it Is impossible for two and a half
cents to buy nye cents worth Of trans
portation. That is the sum and sub
stance of dhe whole situation
In facing this situation" he con-
tnued '"public authorities should not
forget that they arc holding In their
hands the credit Of their cites, savings
banks. life insurance companies, and
other investment Institutions and "a
large portion Of the invested wealth OF
the country
"The electric railway security hold
ers do not seek eXorbiiant increases IN
fares. and rates viii be kept as low as
possible considering the service rem
dered. However II is impossible for
the companies TO continue operation
under the present conditions and rate .
OF return from fve-cent fare"
Mr.. Sisson explained that prices OF /
some Of the materials used by street
railways had-increased 80 per cent. 20 ,
1926 per cent since i9i4. These in
creased costs manifestly cannot he met
he asserted, by the preIyar fare Of
fve cents.
He also impressed the commission
with The fact that under present con-
dluons the profits on The short haul no /
longer carry the loss on the long haul. /
These short haul profits have been /
wiped out by greatly increased opera
tion expenses and the economic un-
soundness OF the Traction business be
came critical"
a long period OF tight money" yas
predicted hy the New York banker,
who referred TO the great destruction OF /
the world war and the great drafts !
which the rehabilitation Of Europe will /
make upon the capital OF The world
Vice Chairman sweet asked Mr.. Sis /
son what could be done 10 bring about
Investment IN public utility securities (
An expression OF public sentiment
70 regulaiing bodies that VIII make
possible sufficient earnings TO secure
a fair return on the investments" said
Mr. Sisson He suggested that street .
railway bonds should pay at least 8
per cent. and stocks at least 6 per cent
although somewhat higher return
would make the securities more at n
tractive. II there was some way that =,
Stsie or municipal authorities could n
fair rate. he added. there 70
would be no trouble about selling the u
a,
vi tll'NNn rhAA NiAf .NW7t W IrHI = ICE
plan was theoretically perfect but had !,
its inequalities
Mr. Sisson suggested that, a sliding
scaleof fares might be feas BILE. 4 FIX
cd fare might be lowered or raised, he o.
said, Ia meet conditions in the indus !
try. but he told the commission that h
such plan would depend largely !,
upon the intelligence Of the regulating n
body Of commission
c. /. s Tingley. vice-president OF the
american Railways Company. operating
many lines, told Of fare raises in y
Scranton Pa. Wilmington. Del, and
Altoona Pa. lie said there had been :
some opposition 70 the raise to six cents Y
n Scranton but little in either VIII N
ninCton or Altoona After the first di- II
traffic following the raises
had passed by. the companies began to II
set somewhere near the added return III
hey hoped for III
John g. Barry. sales manager for the III
General Electric Company; Miles b. n
Lambert assistant manager Of the rail- iii
way department " the MestlnghOuse iii
Company, OF Pittsburgh. and W. H. I'LL
heuings vice president OF the J. &. lllt
Brill Company OF Philadelphia. testified HI
that the cost OF supplies lad increased Hi
greatly Harry l. Dougherty OF New u.
York said if fares were not raised the m
credit Of ihe companies would he de- Ill
stroyed I'LL
AZ the close Of the session Chairman iii
blmquist announced an adjournment III
until 10 o'clock Monday morning. when III
representative OF the committee of i0Oi /.
VIII continue TO present testimony.
In the Want Ads are good positions III
for domestics and housekcepers y