The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1919-04-06
JAcKsoNs TRACTION TROUBLE

" avn eO.N y nav i'm lAAOODIL
The Jackson light and traction
company has gone into the hands Of
a receiver, cars have stopped run
ming and the Mississippi Capital is
in bad fix. The receivership re-
suited from the refusal of the city
authorities to permit the traction
company TO increase their rates.
The company paid its bills as long as
IL could, borrowed TO the limit of its
credit, asked the city authorities to
allow an increase of rates and was re-
fused. and then closed down. The
fate of the Jackson plant is that of
nearly every small plant in the
country and II may be well to con-
slider their plight. Sixty odd light
and traction companies have gone
the receivership route the past year.
Thirty odd of these were in the
smaller cities The predicament of
the smaller light companies may call
for few observations. They are
between the devil and the deep blue
sea. The Government has ignored
them. Municipalities have restrain
ed their revenues. They are floun-
dering along toward failure
The railroads OF the country were
confronted with the same problem.
The government came to their rescue.
took them over and increased the
rates which the roads were not per-
mitted to do under the restrictions of
the Interstate Commerce Commits
sion and the various State commits
sions.
The telephone and telegraph and
express companies were in the same
plight and went the same way The
trouble with them Is oyer-capitali-
cation, They have all been bonded
and watered to the limit of their
earning power and when the crisis
came of maintaining service in the
face of vastly increased cost of op-
Grafton they had no reserve. There
was no market for additional Sc
curities. They could not increase
their rates Failure was inevitable
The paralysis of the transportation
facilities of the country meant ruin
for the nation. The government had
TO step in and do what individuals
and corporations were forbidden to
do by law. Rates have gone I'D.
but the service has been maintained
and the system saved.
But with the traction companies
1t has been different. They, the
small plants, were not taken over by
the government In the larger CEN
ters many of the traction companies
have been recipient of government
aid, New Orleans is a notable case.
But in the smaller cities they have
been allowed to jog along and take
care of themselves as best they can.
Some cities have met the situation by
allowing an increase of rates, others
have refused and receiverships have
followed, the service has been curtail-
ed and crippled and ruin stares large
Investment in the face. 1t is in
evitable
This is not an inspired
in behalf of the local com
)any operating here The Dispatches
position toward it is well known.
But from calm and dispassionate-
analysis of conditions general to
hese utilities all over the United
states, the local company must be
Effected by them as all other COM
'anies have been affected. If fuel
abor and material conditions are
upon the same basis
or any considerable period of the
uture, it is only a matter of time
'efore it will have to solve the pro-
lem. 1t is inevitable and the people
hould be considering the best solu-
ion of the matter,