Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-08-26
Federal COMnISSlON'S
FINDINGS IN ELECTRIC
ST.. RAILWAY INDUSTRY

railways Commission appointed by
President Wilson in 1919. The report
of the commission. prepared after ex-
haustive hearings and examination Of
nearly loo witnesses. was made pub
lie today and says:
The commission can go no further
than 10 point out the principles upon
which the reimbursement should be
based The task really is that Of the
state and local authorities upon the
one hand ana Of the companies upon
the other
Failure 70 rehabilitate the indus
try ana the service il possible only II
those upon whom the responsibility
rests fail TO undertake the work or
pursue il in a spirit that makes SET
tlerneht impossible"
In a summary of its conclusions
and recommendation the commission
said in part:
The electric railway industry as
Il now exists IS without financial
credit ana IS not properly performing
its public junction.
This condition is the result Of
early financial nismanagement and
economic causes. accentuated by ex
lsrlng high price levels of labor and
materials and the failure of the uni
form unit fare of i've cents prescribed
either by statute or by local fran
chlse ordinances or contracts TO pro-
vide the necessary revenues TO pay
operating costs and to maintain the
property on reasonable basis.
The industry can be restored to ,
normal basis only by the introduction
OF economies IN operation. improving
It's tracks, equipment and service and
securing 4 reasonable return upon the
fair value of its property used N pub
tic service when honestly ana eff :
GENTLY managed.
Restoration OF credit involves a
remove public antagonsm. provide
public cooperation and insure the in
Vestor the integrity of his Investment
and fair rate Of return thereon
Full cooperation Of labor IS essen
tIal "a the prosperity and usefulness
OF the electric lines, the report says.
adding that employees should receive
a living wage and have humane hours
ana working conditions
They should have the risn, to deal
collectively with their employers Il
continues. through committees or
representatives OF their own selection
All labor disputes should be settled
voluntarily or by arbitration and The
award Of such board should be final
and binding upon both parries'
II is intolerable that the transpor-
tatlon service of a city should be sub
-ect 10 occasional paralysis. whether
by strikes Or lockouts"
A satisfactory solution of the prob
ems of the industry cannot be
reached without considering the fair
valuation Of the properties. the re-
por- says. When this is done. Il ADDS.
companies should voluntarily reduce
capitalization 10 the basis Of that val
uarion.
The commissioners held that while
II seemed best for state authorities 70
have jurisdiction over electric lines.
either directly or On appeal that
there was no InsuperabIe objection"
70 large and wide awake" cities ex-
over rates and service.
Discussing cost of service con-
tracts. the report says they are IN an
experimental stage but seem 70 have
secured tair return upon capital es-
cablished credit and affected reason
ably satisfactory public service"
Such contracts may safely be an
tered into" Il continues where the
public right eventually 70 acquire the
properly IS safe guarded
This leads the commission into a
discussion OF public ownership of
street railways from which this con-
ciusion Is derived:
While eventually il might become
expedient for the public 70 own anu
operate electric railways. there IS
nothing IN the experience thus far OBJ
tanned n this country which will JUS
tity the assertion that il will result n
better or cheaper service than priv
ately operated utilities could afford If
properly regulated.
Public ownership ana operation of
local transportation systems whether
or not il be considered ultimately de-
sirahle. IS now because of constitu-
ti0nal ana statutory prohibitions. A.
nancial and legal obstacles. the pres
ent degree Of responsibility Of our
local governments ana the state of
public opinion. practicable in so few
Instances that private ownership and
operation must as d general rule be
continued tor an extended period
-fTf innIHnry m
regulation which we suggest in this
report should not result N making
private ownership satisfactory to the
public such reforms should al least
enable public ownership TO be estab-
lished upon a Just ana equitable
basis"
Development Of motor bus and jit-
ney service has been "a serious al
though nor q fatal competition" 70
trolley tines. the commission finds.
Where such conveyances are operat-
ed as public carriers they should be
subjected to equivalent regulatory
provisions with the trolleys. the re-
port adds and declares that they
might well be used 10 supplement
trolley service 20 advantage.
The commission recommends that
special assessments against trolley
companies for construction and main
tenance Of bridges and streets also
USED as public highways be eliminat-
ed. IT urges also that trolley extern
SONS into new territory where prop
erty values We're specially benefited
should be paid for by assessment of
such property; and that the amount