The Bridgeport times and evening farmer., 1920-08-24
Commission Finds This Is Only Way to Restore In
 dustry to Normal Basis
RECOMMENDS STATE
 TO HOLD JURISDICTION
Employees Should Have the Right of Collective Deal
 With Employers

Railway Commission appolhteu py President Wilson in 1919. The report of the commission, prepared after ex- haustive hearings and examination Of nearly 100 witnesses, was made pub- lie today and says:
 s'The commission can go no TUT tf1er 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 indus try and the service is possible only if those upon whom the responsibility rests fail to undertake the work or pursue it in spirit that makes set tlement impossible"
 In a summary of its conclusions and recommendations the commission said in part:
 "The electric railway industry as 1t now exists is without financial credit and is not properly performing its public function.
 This condition is the result of early financial encouragement and economic causes, accentuated by ex- isting high price levels of labor and materials and the failure of the uni form unit fare of five cents prescrib- ed either by statute or by local fran chise ordinances or contracts to pro- vide the necessary revenues to pay operating costs and to maintain the property on a reasonable basis.
 ''The industry can be restored 70 normal basis only by the introduction of economies in operation, improving its tracks, equipment and service and securing a reasonable return up- on the fair value of it's property used in public service when honestly and efficiently managed.
 "Restoration of credit involves a readjustment of relations which will remove public antagonism, provide public cooperation and insure the in vestor the integrity of his investment and fair rate of return thereon"
 Full cooperation of labor is es- sential to the prosperity ana useful ness of the electric lines, the report says, adding that employees should receive a living wage and have hu- mane hours and working conditions They should have the right to deal collectively with their employ- CTS" 1t continues, through commit tees or representatives of their own selection. All labor disputes should De settled voluntarily or by arbitra- ton and the award of such a board should be final and binding upon both parties.'
 "It is intolerable that the trans should subject to occasional paralysis whetb CT by strikes or lockouts"
 A satisfactory solution of the prob iems or the industry cannot be reach ed without considering the fair yaIua ton or the properties, the report says. when this is done, it adds, companies snouiu voluntarily reduce capitaliza- uon to the basis of that valuation.
 Ihe commissioners held that while III fDr ~t, have Jurisdiction over electric lines either directly or on apeal. ina, mere was no insuperable objection to large and "wide awake" cities CIV erclsing exclusive regulatory powers over rates and service.
 Dlscusslng cost of service contra cts the report says they are in an expert. lehtal stage but "seem to have SC. cured fair return upon capital. es abolished credit and affected reason. aoiy satisfactory public service"
 such contracts may safely be en tered lnto, it continues where th, puohc right eventually to acquire tn, property is afe-guareed"
 rms leads the commission into , olscuss1on of public ownership q street railways from which this con clusion is derived.
 While eventually it might becorn, expedient for the public to own ant operate electric railways, there il nothing in the experience thus Tar oo tained in this country which will jus tify the assertion. that it will resur in better or cheaper service than pri 'vately operated utilities could affort if properly regulated.
 Public ownership and operation o local transportation systems whethe or not it be considered ultimatel desirable, is now, because of consti tutional and statutory prohibitions financial and legal obstacles, the pres ent degree of responsibility of our To cal governments and the state O public opinion, practicable in so fey instances that private ownership an operation must as a general rule b continued for an extended period.
 "If the reforms incident to publi regulation which we suggest Tn thi report should not result in nakin private ownership satisfactory to tn public, such reforms should at leas enable public ownership to be estah lished upon a just and equitable ba sis''
 Development of motor bus an jitney service has been a serfou although not a fatal competition" t trolley lines, the commission find Where such conveyances are operate as public carriers they should be sut Jected to equivalent regulatory pro visions with the trolleys the repol adds and declares that they migt well be used to supplement trolle service to advantage.
 The commission recommends ths special assessments agalnsr trolle companies for construction and matr tenances of bridges and streets als used public highways be elimina- ed. It urges also that trolley exter sions into new territory where proI e-ty values were specially benefitte should be paid for by assessme ent such property 'and that the amour of such assessments should not [ added to the physical value of the col porate property"
 In this connection the report enun crates among factors that have cor tributed to the present plight of th trolley lines 'overbui!ding into UT