Evening journal., 1919-07-05

same fare When the margin OF profit
from the short haul was wiped out by
increased cost OF operation. the eco
nomic unsoundness OF the traction
was apparent In Instances where the
credit of the traction companies has
entirely broken down, il has been
largely due TO the length OF time that
IL has taken TO prove the case in ap-
plying for relief from State Commis-
ksions, municipal authorities or through
referendum. In connection with the
latter there is hardly an instance in
the country, 90 date where a traction
company has secured higher farce by
referendum. The public is gradually
obtaining a clearer view OF the situation
but time and persistent effort are
needed in every case 10 remove the
popular suppositi0n, that a public
utility can continue 10 do business
with the same rate Of income in spite
of the known increased cost OF every
other necessity and that the stockhOld-
ers Of these companies, representing
an ownership broadly scattered over
the country, should be expected 10 dig
down" and foot the bills despite The
fact that most businesses and most
people can CLOSE mp shop" when the
return becomes inadequate.
To indicate in a graphic way the in
crease I'm the prices Of some Of the
most important material used in the
maintenance Of street railway prop
eriy, the following list is Of interest:
Increase, i9ii-i9iS 7O-ib 7-inch rails
per ton, 7i7 per cent; trolley wire per
pound, i12 per cent. ties. 3S9 per cent;
motor equipment, 60 per cent; 30-foot
cedar poles, - per cent: west. s. NJ. T.
air brakes, i0.2 per cent; rail joints.
i6S per cent: car wheels, 1858 per
cent; single trucks, i9j per cent.
safety cars 1916 63.j per cent: double
truck car bodies, sos per cent.
The above does not include wages or
fuel, the largest items in the cost Of
operation. Increases in these over
prices prevailing in 1915 in some To-
calties are as high as 100 per cent I'm
recent testimony before the Congress
siOnal Committee on Appropriations 10
has been estimated that the cost of la
Dor and materials over pre-War prices
was 81 per cent
That the situation has already re-
ceived wide recognition by the public
and by public authorities is shown by
the increases i'm lighting gas aud
power rates which are general through
out the country As far as street rail-
ways are concerned. up 20 May (. 1919,
10 has been reported that there are $3.50
cities paying increased rates OF fare
f.N
fare, 70 an Scent fare. 100 a 7-ceni fare
~ Of which pay in addition one cent
for transfers. and i6i cities are paying
a scent fare. Fares I'm the remainder
have been increased either by reduc-
tion in the length Of zones. adoption
OF the zone system, the abolition Of
reduced rate tickets or a charge for a
transfer or the total urban popula-
tion in the United states il is estimated
that more than 81 per cent. are paying
higher fares. In all this. there is much |
reason for announcement when 10 is
considered that the above increases |
have been obtained largely by the ef-
fort Of each individual company con-
tending against local preiudices and
local politics With a Federal Commis-
sion giving intelligent study 10 the |
conditions Of this industry we believe |
thpt progress towards more speedy !
relief win be forthcoming
J. The oapilskinyested. in utilities is in |
and dHrable sfrnhires |
which cannot be reproduced except al !
costs greatly in excess OF the original /
The services the COM
panies render have become necessities |
and so will continue 10 be desired and |
must be paidfor at a price required to /
secure them. The properties are grow |
ing and betterments and extensions /
must be provided They will not be /
provided unless 10 is worth while 20 4
provide them, and in The end the com
non sense Of the public viii recognize |
he situation and agree TO conditions
nat will result in the payment of costs
II operation and a return sufficient to
attract capital.
STONE e WEBSTER.
No. 1870 Broadway, New York, June
q, 1919.
New York, 100 Broadway; ii7 MIX
street. Boston. First National Bank
Building, Chicago.