New-York tribune., 1920-04-20
Seruice-ut-Cost
A Plea for a Juster Reguta-
tion of Fares
TO the Editor of The Tribune.

TO the Editor Of The Tribune.
Sir: AS you are aware, bill prepared
by the New York Electric Railway Assc-
citation and generally known as "Serv-
ice-at- Cost" has been presented to the
Legislature, the object being to regu-
late the fares of local transportation
companies in New York State in rela-
ticn to cost Of operation.
Every one knows that all expenses, in
clu ling corporation operating expenses.
have risen sharply since the war and
have now reached very high level.
which is being maintained. To one who
is not prepared to indorse extreme So
cialistic ideas and ignore obvious facts
it appears downright unjust that legiti-
mate and well-organized enterprises
serving the public should be constantly
subjected to persecution and made tne
target of all sorts Of misstatements
with the object of misleading the pub
lie. The very newspapers which are
hottest against increases in fares long
ago raised the selling prices of their
papers by 100 per cent and materially
increased advertising rates. These
newspapers know very we'll that they
could not continue if they did not OBJ
tain larger revenues, yet they deny
the right CT public. service corporations
to incrcased revenues and at the same
time publish insidious articles calcu-
lated to foment discord among the en-
ployees Of such corporations.
The Comptroller of the Currency in
his 1917 annual report to Congress, and
the Secretary Of the Treasury In a
statement to the President dated Feb
ruary Is, 1918, pointed out the neces-
sity Of maintaining industrial and eco
nomic life at It's maximum strength,
and urged that public utilities must not
be permitted to become weakened. The
President on February 10, 1918, replied
that he fully shared the views ex-
pressed and thought it essential for
state and local authorities, If they had
not already done SO, to respond prompt
r
ly to the necessities of the situation
when the facts were properly laid be.
fore them. In conformity with these
ideas the carrying charges of the in
terstate railroads for both freight ano
passenger traffic were materially in
creased, and many street railroads, gas
companies, electric light and other pub
lie utilities likewise increased tle,r
rates, with the approval of the local
authorities and other regulating bodies.
am the owner of some Interborouch
Rapid Transit per cent bonds tina.
cost me %, and which bought in good
faith. Just what crimes the INTERIOR
0ugh has committed do not know, but
certainly the property represent by
the bonds purchased is entitled TO earn
falr return, at least sufficient to paw
the interest on the bonds. The general
impression l have obtained from read
ing numerous articles In the newspa-
pers is that the local government of
New YORK City does not believe inves
tors have any rights. This view is ab
surd, unless we are to have soviet
form OF government. and If that should
come to pass have no doubt the pres
eent opponents Of what has heretofore
been considered as economically sound
Will be In the forefront in running af-
fairs. 1 have not tho slightest conf
dence In their ability satisfactorily to
conduct the operations of the Inter-
boro, or OF any other large organiza-
t'on. II they assumed charge the fares
would either be increased immediately
or taxes would rise,
In former times investors. among
whom are many people who have lived
decent lives and endeavored to be
thrifty. have had confidence In the pro-
lection accorded by our form Of eov.
srnment. II government ID now 70