Evening journal., 1919-07-16
ELECTRIC ROADS
FACE COLLAPSE
Guy E, Tripp, for Rail.
ways. Appeals to Federal
Board for Relief
$4,000, 1000, 900 IN
PERIL, HE DECLARES

WASHINGTON, July i6.-The electric
railway Industry OF the United States,
with a total investment Of s6Oo0.OO0-
900 is in danger Of complete collapse
and dissolution" unless immediate
steps are taken to remedy the situa-
tion. Guy E. Trpp, president Of the
street railway committee Of one hun
dred, yesterday told the special COM
mission appointed by President Wilson
to examine into the condition Of these
systems.
The electric railway industry" said
Mr.. Trip, lis faced at this moment
with three alternatives, and the issue
will come Immediately.
First. Municipal ownership.
Second Private ownership and op-
GRAFTON resting on a sound fundamental
basis Of regulation and control.
Third. Absolute disappearance OF
the service.
1T Is unthinkable. however. that the
service will be permitted TO disappear
except in part. SO the real issue comes
between municipal ownership ana pr
vate ownership. ! believe that the
people Of the country want private
ownership under proper regulation ana
control.
THE committee Of enc hundred ex-
poets TO present 10 you a complete pic
ture OF the electric railway situation
and we believe that when the picture is
before this commission you will be
convinced that this great industry is in
dire extremity-in fact, on the verge
OF bankruptcy"
The Presidents commission, which Is
known as the federal electric railways
commission. began hearings today
which may lead TO recommendations
for affording relief to the street rail-
way systems. Representatives Of the
American Railway Association, includ-
ing Mr.. Trip. were the only witnesses.
John H. Pardee, president Of the as
ISOLATION. also presented facts to the
commission, and James w. Welsh, the
associations statistician, and w. J.
Clark, a New York street railway man,
testified Mr.. Welsh outlined the con-
dltion Of the street railways Of the
country for nearly thirty years and
brought out the rise in operating costs,
the increased costs Of labor and mate !
rials. the decrease in the riding |
habit" OF the American people and |
many other factors which he said have |
contributed TO the present chaotic |
condition" OF the street railway com
panies.
One table presented by Mr.. Walsh /
showed that on May 81. 1919, total Of /
sixty-two companies, with 5qi2 miles OF /
sngle track, were in the hands Of re
celvers: that sixty companies. with a |
mileage OF T63, had been dismantled and
iunked and that thirty-eight companies. |
having PSI miles OF single track. had 1
been abandoned The total for the three /
classes, nearly 1000 miles. represents. he |
said, almost i6 per cent. Of the total /
track mileage OF all the electric rail- !
ways Of the country.
Mr.. Welsh produced charts and tables
based on statistics obtained from 3I5
companied to show that there was
in net income during the
year 1918. compared with the year 1917,
amounting 20 "a per cent. due largely,
le said, TO an increase in operating ex
lenses Of IS per cent and an increase
n taxes OF more than per cent while
iperating revenues increased only about
per cent.
The companies on which the COM
larlson was based he added, repre-
lented more than so per cent OF the
ross earnings Of all the electric rail-
Vays Of the country He showed
operating expenses I'm 1917 10 have been
bout 1861 10000 and in 1918 to have
,een about s426.O00,o0O; taxes In 1917
o have been s3575O,567 and in 1918,
l3sss9.0ii: deductions from gross IN
lome in 1917 to have been si4237372S,
md in 1918 to have been si46, 6,66523i7.
THE net income in 1871" said Mr.. :
Welsh. "was 4i.soo,3o4 and in 1918 (
Z was siO,7i2,726." Mr.. Welsh said
axes represented about one-half cent ;
or each passenger carried by the cleo {
;ric lines.
"The riding habit OF the American /
public he showed, has been increasing I
with the years, but this increase has {
oeen less marked since 1907; the in :
crease being twenty-four rides per in s
Aabitant Of the United states during [
he period between 1902 and 1907 flf- :
teen between 1907 and 1912 and only
nine between 1912 and 1911"