Evening journal., 1919-08-14
PUBLICLY-OWNED
CAR LINES URGED
D. F. Wilcox. N. Y. Utility
Expert. Says Municipal
Control is Best Solution
EOR SERVICE. NOT
PROFIT HIS IDEA

WASHINGTON. Aug. i4-Delos F.
Nilcox, former member OF the New
york state commission and an expert
public utility matters, appearing be-
ore the Federal Electric Railways
commission yesterday, declared that
municipal ownership offered the best
solution OF the present problems fac
ing the street railways Of the country.
other witnesses at yesterdays session
Rere w. C. Bliss, chairman Of the
Rhode Island COMMON; Z. W. Bliss,
d receiver Of the Rhode Island Com
pany, and Mayor Gillen. OF Newark,
Nj.
Mr. Wilcox said, IN his opinion.
hefe are four fundamental questions
70 be determined in tackling the street
railway problem: First. the character
II the investments; second, snail the
business be conducted for private
proat or be conducted for seryice?;
,hird, shall continuity Of service be
yuaranteed9; fourth. shall street-raii-
way service be carried on by public
or private agencies?
In explaining the way he viewed
these questions. Mr.. Wilcox said the
Investment should be nonspeculative
and the revenue should be flexible, so
that the investment should receive
proper return. with assurance that the
physical upkeep OF the property would
be maintained, so that The investment
would not disappear.
"The rate OF return" he said, "of
course, would be influenced by the Sc
curity Of the investment. II the invest
ment itself De made secure. and II the
earning return is made certain then
the rate OF return should be relatively
low In other words. you viii get the
benefit OF cheap capital. do not think
that the investment which has been
fixed needs 70 have the rate Of return
On that investment changed.
on his second fundamental Mr.. VIII !
cox said. "The business should be
conducted for service and not for prof |
it Service should be the predominat- !
ing and controlling motive at an times
The reason IS that street car service IS /
so essential and so NitaEto the munic- !
paliiy that the people cannot afford |
ID have public transportation deter /
mined by the exlgencies Of profit |
Street railway properties should be DO
yeloped and operated as a unit, and |
Yates should be fixed with an eye to
Irban development"
II The service is not seli-sustaining, |
Mr.. Wilcox said there should be sub
sidies from the municipality and the /
excess earnings put back into the busl- |
ness. Certainly service should be as
mred." he continued. "The street rail |
Nay strike should be made unneces-
sary and outlawed."
Mr.. Wilcox said labor should he as
qired OF ht living conditions and wascs
and prompt attention TO It's grievances
md should be permitted to organize
10 obtain these things and 70 have an
official mouthTiece 90 get ihemN
ave can't leave wages and cOndl-
tions Of service and hours 10 private
companies" said Mr.. Wilcox. There
arc too many things involved in the
welfare Of our communities. even their
stability at times may depend on The /
service. / want TO cay |
frankly that a concerted effort 10
strike and by force interrupt transpor-
.aiion should be properly and effect
lally penalized l do not believe such
lcuon should be taken except Where
here has been a basis laid and an
adequate means provided for an ef-
cciive settlement Of disputes f. work
,ut. but It is vital.
'I have reached The conclusion that
here Is no ultimate solution unless
We undertake local transportation as a
ubllc function and perform Il as pub
Ic function" The witness said he he
ieved the service-ai-cost plan OF op- \
ration would not work out.
w. C. Bliss told the commission That
he final solution Of tho problem will
ever come "until we find some meth
d OF giving The same power OF regu-
liing wages as is given TO regulate
ltes.n
lie said that, although the Rhode
'land electric lines have been well
lanaged. they arc faced with an inn
ossible situation, with increased costs
T material and labor. "They simply
lnnot solve the problem with no re-
/ III