The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-07-24

ton to withstand the adverse fac
tors of operation during the war
period AS far as the fractions are
concerned, since we entered the war
in 1917, and up to February /, 1913,
companies operating some 1900 miles
OF track, representing approximately
one-tenth of the total street railway
mileage, have gone into receivers
hands, that about 500 miles of track
have been completely abandoned and
that foreclosure sales of twenty
three roads, representing 524 miles
of track have resulted.
In speaking of public utility credit,
1t must be borne in mind that by far
the greatest problem of readjustment
applies more particularly to the
building up of the credit of the trac-
ton companies. Electric lighting, gas
and power companies have not had
SO burdensome an increase in costs
of labor and through coal clauses"
and rate increases have been better
able to make the selling prices of
their product bear the additional
costs of production. Consequently,
the business of these companies has
been based more nearly on the cost
of production, whereas the street
railway business has been developed
with fixed unit of fare regardless
of the cost of service. The profit
from the short haul that was possible
in times of lower costs carried the
long-haul passengers for the same
fare. When the margin OF profit
from the short haul was wiped out
by increased cost Of operation, the
10 Iy,0
business as it had become establish.
ed was apparent. In instances where
the credit Of the traction companies
has entirely broken down, 1t has been
largely due to the length of time that
1T has taken to prove the case in
applying for relief from state COM
missions, municipal authorities or
through referendum. In connection
with the latter, there is hardly an
instance in the country, to date,
where a traction company has
higher fares by referendum.
The public is gradually obtaining a
clearer view of the situation, but
time and persistent effort are needed
in every case to remove the popular
supposition, that public utility can
continue to do business with the
same rate of income in spite OF the
known increased cost of every other
necessity and that the stockholders
of these companies. representing an
ownership broadly scattered over the
country, should be expected to "dig
down" and foot the bills despite the
fact that most business and most
people can CLOSE up shop when the
return becomes inadequate.
To indicate in a graphic way the
increase in the prices of some Of the
most important material used in the
maintenance of street railway prop
erty, the following list is of interest:
Increase
1914-1918
70-lb. finch rails per ton. TAT percent
Trolley wire per pound. 47.2 percent
lies 1873 percent
Motor equipment. -. so percent
3O-foot cedar poles. ..... As percent
West. S. M. q. afr brakes. 4O2 percent
Rail joints. 1853 percent
Car wheels. 1858 percent
Single trucks. .49.5 percent
Safety cars G916) -. .63.5 percent
Double-truck car bodies. 59.S percent
The above does not include wages
or fuel, the largest items in the cost
of operation. Increases in these over
prices prevailing in 1914 in some
localities are as high as 100 per cent.
In recent testimony before the con-
gressicnal committee on appropria-
lions, 1t has been estimated that the
cost OF labor and materials over pre-
war prices was 85 per cent.
That the situation has already re-
ceived wide recognition by the pub
lie and by public authorities is shown
by the increases in lighting, gas and
power rates which are general
throughout the country. AS far as
street railways are concerned, up to
May /, 1919, 1t has been reported
that there are 3S9 cities paying in
creased rates of fare. OF this total,
twenty-nine are paying a Decent
fare, nineteen an Scent fare, 100 a
7-cent fare seventeen of which pay
in addition ! cent for transfers) anu
164 cities are paying scent fare.
Fares In the remainder have been
increased either by reduction in the
length of zones, adoption of the zone
system, the abolition of reduced rate
tickets or charge for a transfer.
OF the total urban population in the
united states IL Is estimated that
more than "a per cent. are paying
higher fares. In all this, there is
much reason for encouragement when
it is considered that the above in
creases have been obtained largely
by the effort of each Individual com
pany contending against local preju-
dices and local politics. With a fed
eral commission giving intelligent
study to the conditions Of this indus
try, we believe that progress towards
more speedy relief will be forth
coming.
The capital invested in utilities is
in substantial and durable structures
which can not be reproduced except
at costs greatly in excess of the
original investment. The services
the companies render have become
necessities and SO will continue to
be desired and must be paid for at
a price required to secure them. The
properties are growing and better
ments and extensions must be pro.
vided. They will not be provided un-
less It Is worth while to provide