Norwich bulletin., 1919-07-31
TROLLEY ROADS ARE
 uNsoUND FINANCIALLY

uNsounD FINANciALLY An examination of the financial standing and results or operation eT the street railways in Cennecrlcut shows them to be in a financially Un- so1rd condition, says the last annual report of the public utilities commits sion of Connecticut, copy of when. attractively bound in book form. has just been .receivea ny Ine aaneeM. condition of the street railways of the state is. of unusual interest to the people of Norwich and vicinity at this time owing to the Shore Line trolley
 strike which has paralyzed trolley traffic throughout the whole ef East err Connecticut for the past two weeks.
 the report says:
 No class of public service in this state presents more serious and diff ficu1t problems for solution than thS electric street railways During the
 past quarter of a century electric street railway development has ex- tended into every city and county. and into many of the rural towns ana communities of the state. there helag S2S71 miles of track operated in the state of Connecticut, and properties represertins a capital investment of approximately $1ocsooe,e0e. Many communities and industries have grown up with and along the line of this development and are more or less dependent upon it for service It Is the principle medium ef the indus trial short haul traffic throughout the state.
 An examination of the financial
 standing and results of operation cf the street railways in Connecticut shows them to be in finaRei;~~ un-
 sound condition. With the hign cess
 ing net fneerne. it is no longer pos
 sible to attract new capital for the efficient operation of the preRefties
 in the interest of the public. Fixed
 chises of. certain companies prevent
 a proper response to the violent and
 radical changes in the cost of oper-
 ation- The assumed charter oei1sa-
 tians te operate every portion Of the
 cempany's system under changed
 conditions, whether profitable CT oth-
 eFwise involves an unseunA business
 principle.
 must depend to a large extent upen
 the public or legislative policy of the
 state
 Netwithstanaipg substantial ine<eas-
 es in tFalley freight and passenger
 rates during the past two years. none
 of the electric railway companies in
 Connecticut have been able te pay
 dividends on the capital invested as
 operating expenses. fixed charges. in
 terest, taxes. etc. Two companies are
 in reeeirership and other companies
 are financially unable to render the
 character of service the public is ea-
 titled to.
 There are numerous contributing
 causes for the present street railway
 conditions, some inherent, some tenn
 porary, and some apparently perma-
 nent. Among the principal may be
 mentioned general war conditions. in-
 velv=ing high cost ad difficulty of pro-
 curig material and supplies. High
 and constantly increasing cost Of la
 Dor and difficulty. on account Of ad-
 vantages offered by private and sev-
 ernmenta1 industrial enterprises, of
 securing sufficient and competent
 help: the increasing burden of taxa
 ton; the municipal and statutory re-
 cuirements of laying and maintaining
 street pavement. the less of patron
 age naturally incident to the use af
 privately owned automobiles: and the
 more or less unrestricted competition "jitneys" So called. operated at the option of the owner in the most praf- itabie sections of the street railway companies, chartered territory. during favorable wea ther conditions and on improved highways,
 The failure of elect, ic street rail- way companies to edeauately meet the service demands. save occasion if apparent pernaneney of public ser- vice automobile transportation. It is the opmien Of this commission that the best interests of the state require and will continue to require electric street railway service as an essential transportation agency, but if both of these competing trarsporta ton agencies are to survive and renr- ser proper service some protecting legislation should be enacted where by the necessary burdens would be more eeuitably appertiened and com petitive rights more definitely limited. From a careful analysis of the fin railway companies it is questionable if any additional increase in rates, under existing competitive conditions, would produce any material increase in net revenue. Any rate established l. . which is in excess of what the traffic will bear. is an unprofitaele as well I as an unsatisfactory rate.
 On account of the importance of the transportation problems, and ew- ing to the present limited facilities and financial condition of street rail-
 ways, there has bee soaee discussion relative to the advisa bility Of having l the federal government take over the panies. This commission does not wish to be understood az reeemrnendr ing government ownership and con- troi. but if it should become necessary for the preservation of the pFeperty and the continued operation of street railways. that there should be gov I'ernmentaIf intervention to the extent control we are emphatiealIy of ontnr ion that such companies operating In Connecticut as Connecticut cornoFa- tionisrn and performing the intra state service, should come under local er state. rather than federal centrel.