The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-24
ECONOMIES IN
OPERATION
Urged As One Means to
Rehabilitation of Elec-
trio Railroads
IMPROVE TRACKS
AND EQUIPMENT
Solution of Troubles Pre-
sented in Report Of
Federal Commission

cation of principles "of ordinary econ
omic and business common sense i
the unanimous opinion of the seyel
men who composed the federal electri
railways commission appointed b,
President Wilson in 1919. The repor
OF the commission, prepared after ex
haustive hearings and examination o
nearly 100 witnesses, was made publ
to-day and says;
THE commission can go no further
than to point out the principles upor
which the readiustment should b,
based. The task really is that of tht
state and local authorities upon the
one hand and of the companies upon
the other
! Failure to rehabiitate the industry
and the service is possible only if those
upon whom the responsibility rests fail
to undertake the work or pursue it in
a spirit that makes settlement impos
sible'
In a summary of its conclusions and
recommendation the commission said
in part:
THE electric railway industry as it
now exists is without financial credit
and is not properly performing its
public function.
This condition is the result of early
financial mismanagement and eco
nomic causes, accentuated by existing
high price levels of labor and materi
als and the failure of the uniform unit
fare or five cents prescribed either by
statute or by local franchise ordinances
or contracts TO provide the necessary
revenues to pay operating costs and to
maintain the property on reasonable
basis.
"The industry can be restored to a
normal basis only by the introduction
OF economies in operation, improving
it, tracks, equipment and service and
securing a reasonable return upon the
fair value of its property used in public
service when honestly and efficiently
managed.
Restoration of credit involves a re-
adjustment of relations which will re-
move public antagonism, provide public
cooperation and insure the investor the
integrity of his investment and a fair
rate OF return thereon"
Full cooperation OF labor is, essen
tial to the prosperity and usefulness
OF the electric lines. the report says,
adding that employees should receive a
living wage and have humane hours
and working conditions.
They should have the right to des
collectively with their employers" it
continues, through committees or rep
resentatiyes of their own selection. All |
labor disputes should be settled volun-
tarily or by arbitration and the award |
of such board should be final and |
binding upon both parties"
ut is intolerable that the transpor.
tstion service of city should be sub
iect to occasional paralysis, whether
by strikes or lockouts."
A satisfactory solution Of the prob /
lens OF the industry cannot be reached
without considering the fair valuation
OF the properties, the report says
When this is done, il adds. companies
should voluntarily reduce capitalize
lion to the basis Of that valuation.
The commissioners held that while
Il seemed best for state authorities to
have jurisdiction over electric lines.
either directly or on appeal, that there
was mo insuperable objection" to large
md "wide.aws&e" cities exercising ex-
,lusiye regulatory powers over rates
ind service
Discussing cost service contracts.
he report says. they are in an expert
mental stage but seem to have se.
ured fair return upon capital. IS
sblished credit and affected reason
bly, satisfactory public service"
such contracts may safely be en-
cred into" il continues. where the !
'ublic right eventually to acquire the
property is safe guarded"
This leads the commission into
iscussion Of public ownership Of street
always from which this conclusion is
erived.
While eventually il might become
Hpedicnt for the public to own and cp-
rate electric railways, there is moth
NJ in the experience thus far obtained
D this country which viii justify the
ssertion that il win result in better
r cheaper service than privately cper.
ted utilities could afford If properly
egtilated.
Public ownership and operation Of h
zeal transportation systems whether
r not II be considered ultimately de.
Irable. Is now. because Of constitution
and statutory prohibitions. financial
nd legal obstacles. the present degree
responsibility Of our local govern.
tents and the state Of public opinion.
rscticsble in 70 few instances that
rivste ownership and operation must.
8 = general rule. be continued for an
IteBded period
If the reforms incident 10 public
.gulation which We suggest in this re- !
III should not result in making pri-
ste ownership satisfactory 10 the
1blic. such reforms should ~ least On
- public ownership 10 b. established
pcn = Just and equitable basis 81
Development ~ motor bus and iitnsv a
rvies hzs been - SERIOUS. although q
= fatal oompstition. 90 trolley n
lss. the oommission fads Where y
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