Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-08-26

Reimbursement Of. the Street
Railuaay Industry Proposed
By Board Named by resident

washington, Aug. 24.-SatisfActory
solution Of the problem presented by
the electric street railway industry
can be reached through application Of
principles B ordinary economic 2
business common sense In the unans-
composed the federal Electric railS
ways commission appointed by Presi-
dent Wilson IN 1919. The report OF
the commission, prepared after ex-
haustive hearings and examination OF
nearly 100 witnesses, was made public
today and says:
1.-THE commission can 30 no further
which the reAdjustment should BE
based. The task really 10 that OF the
state and local authorities upon the
one hand and and Of the companies upon
: ..Faiiur. to rehabilitats the indus
try and the service Is possible only, II
those upon whom the responsibility
rests fail 10 undertake the work or
pursue It IN . spirit that makes settle-
ment impossible"
In a summary Of its conclusions
and recommendations the commission
said In part:
=. Not Working Right.
.aThe electric railway industry as 1t
now exists lis without financial credit
and is mot properly performing it,
public function \
This condition .is the result Of early
financial Acknowledgement and eco
nomic causes, accumulated by existing
highSprice levels of labor and ma
unit fare OF 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
a reasonable basis.
The industry can be restored to q
normal basis only by the introduction
OF economies in; operation. improving
Its tracks, equipment and service and
fair value OF its property usedsin pub
lie service when honestly and efici-
entity managed
"R~estoration Of credit involves I
readjustment Of relations which will
remove public antagonism, provide
public. Cooperation and insure the In
weston the integrity Of his investment
and q fair rate Of return thereon.,1
U cooperation Of labor IL essen
tial to the prosperity and usefulness Of
the electric lines. the report says, Id
ding that employees should receive q
living wage and have humane, hoHtt
and. working conditions. f-@
They should have the right TO deal
collectively with their employers,,'' ii
continues 'through committees OF
representatives of their y selection.
All labor disputes should -be settled
voluntarily II by arbitration and the
award of such a board should be flnal
and binding upon both parties.
1T IL intolerable that the transport
tation service OF a city should be sub
ject 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
va1uation-of the properties. the report
says. When n Ills Is done, 1t adds,
companies should voluntarily reduce
capitalization to the basis of that
valuation.
h commissioners held that while
It seemed best for state authorities Ia
have jurisdiction over electric lines,
either directly or on/appeal, that there
wal mo insuperable objection" to
large and 'Wide-awake'-cities exercis.
ing exclusive regulatory powers over
rates and service.
Only Experimental.
Discussing cost-of-service contracts.
the report says they are In an expert.
mental stage but seem to have se-
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