Every evening, Wilmington daily commercial., 1920-08-26
COMMON SENSE AND
STREET RAIL WAYS
Federal Commission Makes Rec
concentrations as to Solution
of Problems.
BY Associated Press to Every Evening

nv Associated Press to Every Evening
Washington, Aug. 24.-Satlsfactory
solution OF the problem presohted by the
electric street railway industry can be
reached through application OF principles
''of ordinary economic and business COM
mon sense" in the unanimous opinion OF
the seven men who composed the Federal
Electric Railways Commission appointed
by President Wilson in 1919. The report
of the commission, prepared after ex-
bau.,iva hearings and examination of
nearly 100 witnesses, was made pubhc
today and says:
"The commission can go no further
than to point out the principles, upon
which the readjustment should be based;
The task really is that of the state and
local authorities upon the one hand and
Of the companies upon the other
Failure to rehabilitate the industry
and the service is possible only If those
ts,on whom the responsibility rests fan to
undertake the work or pursue 1T In q
snirit that makes settlement impossible.
In summary of Its conclusions and
recommendations the commission said
In part: ;,,. ;na,,..r,, os =
now exists is without financial credit and
is not properly performing Its public
function.
This condition Is the result of early
financial mismanagement and economic
causes, accumulated by existing high price
levels of labor and materials and the
failure of the uniform unit fare of five
cents prescribed either by statute or by
local franchise ordinances or contracts
10 provide the necessary revenues to pay
operating costs and TO maintain the prop
erty on a reasonable basis.
THE industry can be restored to a
normal basis only by the introduction of
economics In opcratio0 improving Its
tracks, equipment and service and Sc
curing reasonable return upon the fair
value of its property used In public ser
vice when honestly and efficiently manag-
ed.
Restoration of credit involves a
readjustment of relations which will re-
move public antagonism, provide public
cooperation and insure the investor the
integrity of his investment and fair
rate of return thereon"
Full cooperation of labor is essential
10 the prosperity and usefulness OF the
electric lines, the report SAYS, adding that
employees should receive a Ii wing wage and
have humane hours and working con-
ditions.
They should have the right to deal
collectively with their employers" it
continues, through committees or ep-
resentatives of their own selection. All
labor disputes shoul d be settled volun-
tarily or by arbitration ad the award of
such board should be final and binding
upon both parties
1T is intolerable that the Transporter
ton service of a city should be subject
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, it adds, companies should vol
unfairly reduce capitalization to the basis
OF that valuation.
The commissioners held that while it
seemed best for state authorities to have
jurisdiction over electric lines, either
directly or on appeal, that there was mo
insuperable objection" to large and wide
awake" cities exercising exclusive regula-
tory powers over rates and service.
Discussing cost-of service contracts,
the report says they are in an expert
mental stage but "seems to have. secured
a fair return upon capital, established
credit and affected reasonably satisfac-
tory public service.
Such contracts NAV safely be entered
into," it continues, where the public
right eventually to acquire the property
Is safeguarded,'