The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-09-29

essential industry TO conditions that
have materially changed, first, because
Of the natural development of the bust
ness and the changing civic and social
life of the communities; and, second,
because of the great war, which has
wrought a great change in national
concepts of industrial and social re-
lations
LAS see the elements that go to
make UP these changed conditions as
they directly affect electric railways,
they are:
which not only the United States but
the entire world has entered upon,
which seems bound to maintain for an
indefinite period of years
Second. The conditions surround
ing the employment Of labor, which
is the larger part OF the cost OF oper-
alton of electric railways than 1t is OF
any other industry with which | am
acquainted. In this connection, l be-
lieve that 1t must be evident to any
unbiased and unprejuriced student OF
present-day conditions that labor is
demanding and will receive a greater
share In the wealth it produces than
ever before in the history OF the world
Everywhere industry is adjusting IL
self to meet these demands, and no
lasting solution Of the railway PROB
lem can be reached unless this industry
is put In financial position where IL
can render the same NEED OF justice
to its employees as Is expected from
industry generally.
Third. The introduction OF new
competitive factor in the automobile
not only the socalled jitney, but more
especially the privately-owned auto
mobile and the motor truck
Fourth The enlarged functions OF
street railway systems, which with the
growth of the communities they serve
have ceased to be private enterprises
with the sole aim of adding to the
comfort and convenience OF the PUBIC
and have become absolutely essential
to the community growth, develop
ment, health and welfare. SO that the
mere business aspects, with the result
that it is no longer possible 70 con
slider either service or rates from the
standpoint OF business principle
alone"
There are some of the reasons Tor
the threatened bankruptcy OF the street
railways. Here is the picture vleWeo
from another angle by General Guy E.
Trip of Pittsburgh, chairman or the
committee of one hundred OF the as
ISOLATION. General Trip told the
commission the electric railway is IN
danger Of collapse and dissolution.
: "The electric railway industry IS
faced at this moment with three al
ternatives and the issue will come
Immediately:
0,r,nnvchin
Second.-Private ownership and
operation resting on SOUND runoa
mental basis OF control; and
Third-Absolute disappearance OF
the service.
"In some cases the service already
has disappeared and the rails nave
been taken up, but 1t is unth1nkaole
that in the larger communities tms al
formative is possible except perhaps IN
part.
therefore the real issue Is between
municipal ownership and private own
ership. From the purely selfish stand
point of investors 1 have no DOUBT
great sigh of relief would go UP II
municipalities should purchase the
electric railways at fair valuaton;
But the experience of governmental
operation of those utilities the opera
ton Of which are Of more or less d
complex character. has not been re-
assuring and l believe great ma
icrity of the people Of the country De
lieve in private ownership ana oper
alton under private regulation anu
control
General Trip is not believer IN
an arbitrary fixed fare but In what mas
come to be known as the "servlce-at-
cost" or cost Of service plan. Here Is
what he suggested:
Some kind Of cost-of-.serv1ce' plan
must be devised. That would 1nciude
an income to the electric railways TO
nav tust wage to employees, the cost
of operation, the taking care of depre-
citation and a reasonable return on
the money actually and honestly IN
vested in the property-an honest
dividend. If there should be larger
return the surplus might be treated III
various ways-with share OF IL go
ing to the investors and snare go
ing back to the public some way: l
would not have an uncertain sHulhs
scale arrangement with employees De.
cause labor's return should be fixed
and definite and fair to meet condl-
ti0nS as JDGy exist AL d. bIIh
even though higher than n1ckle
would be a temporary relief. That
fare might not do year hence under
other conditions. Some elastic sys-
tenn must be worked out to take care
Of things as they arise.
Bankers Of the country are vitally
interested in this question. Francis
H. sisson, vice president of the Qua
ranty Trust company of New York,
and an acknowledged authority on
public utilities, was one Of the prin-
cipal witnesses during the hearings.
with the average purchasing
power Of the dollar decreased gener-
ally about so percent since 1914"
said Mr.. Sisson, at is impossible for
.2h cents to buy cents worth OF
transportation; that is the sum and
substance of the whole situation"
Street railway credit, Mr.. Stsson
said has been impaired through In
ceased operating costs and fixed
unit of fare.
Prices of some Of the most inn
,,sed in the main