The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1920-09-30
THE NATIONAL CAPITAL

The commission appointed by Presi-
dent Wilson more than a year ago
for the purpose of investigating the
electric railways situation of the
country, has returned It's report. The
commission calls conditions by their
proper names, and it says that the
financial credit Of the street railway
many localities the railways are not
performing their public function. This
condition is ascribed to the increased
costs OF labor and material, early
over-capitalization and financial mis-.
management, in the past; public dis
trust and antagonism, failures of the
fixed five CEN fare to meet existing
conditions, extensions into unproflta-
BILE territory in furtherance of real es-
tate speculation, and failure OF en-
ployers and employees to properly co
operate. The report estimates that
from $175,00 900 to 5000, 000, 900 al
nually will be required to properly
carry III the future needs OF the in
uubLIy dllu II tlnHulli1hIy utSihl Co
restoration Of public confidence is n
of the vital necessities OF restoring
credit.
Assuming that the ailments of the
street railway industry have been very
clearly diagnosed, according to the
above summary Of conditions that are
generally recognized, II Is hard to un-
derstand how these utilities are going
to be able to keep pace with the
growth Of their communities and the
country, and raise the hundreds of
billions Of dollars that will be re-
Quired as the years roll by, unless
they actually regain public confidence,
and get their affairs running along
smooth and easy lines.
The presidents federal electric rail
ways commission has made a unani-
nous report, and In view Of the fact
that IL presents an agreement among
men Of strong personality whose in
terests are entirely divergent in the
everyday affairs OF their lives, 1t Is
nc more than could be expected that
President Wilson should have extend
ed to the commission his sincere
thanks for the very able and valuable
report" and at the same time state
his appreciation "of the self-sacrific-
ing efforts Of the commission members
in so freely devoting their time to the
task undertaken at my request. But
/ canno believe" says the president,
to be full compensation for their eff
forts"
This splendid acknowledgment of
approval by the president seems to
be fully justified by the t~horoughness
of the Investigations made by the COM
mission, which held extended public
hearings in Washington. and which in
every other consistent way obtained
the views of all manner Of interests
and people in every part Of the coln-
try. Among the recommendations Is
the plan now in operation In Cleve-
land, Cincinnati, Dallas, Montreal, and
other cities. which provides service
at cost" Primarily, the plan provides
for furnishing rides at actual cost,
which shall govern the rate Of fares,
and for protecting the investor by
guaranteeing a fixed return on an
agreed valuation of his holdings. The
controlling element in favor of such
a plan, according to the commission,
as the restoration of public confidence
in the corporation due to the removal
Of those elements of friction which
have so frequently engaged the atten.
tion OF Of the public" Speculative
gain on the part Of the railways gives
way under such a system to "a COM
nonsense business basis where the
people pay for the service they get
and where the opportunity for large
profits no longer exist, since econo-
mics and lower operating costs are re-
fiected in reduced charges for service"
The commission adds: "When the con-
tract once is established, the oppor-
tunity for municipal corruption is re-
duced to the minimum"
Arrangements must meet their duties
TO the public with the highest efficien-
cy at the lowest cost; public super
vision and control of electric railway
properties must safeguard the public
interest and protect the investors; and