Evening journal., 1920-08-26
THURSDAY, AUGUST 20, 1920
Must RE ALLOWED AN ADEQUATE FARE.

MUST BE ALLOWED An ADEQUATE FARE
nREsIDENT WILSON'S Federal Electric Railways Com
a mission appointed last year, and which examined
more than 400 expert Witnesses, has made It's report
That report fully iustnes those electric railways which
like the system In our own city and county, have IN
creased rates Of fare It also fully iusnes The Board OF
public Utility Commissioners Of this city In what IL
has done for the relief Of the Wilmington and phia-
delphia Traction Company.
The commission says 10 can go no further than TO
point out the principles upon which the readiusiment
should be based The really is that Of the State and
local authorities upon the hand and Of the companies
upon the other
Failure 10 rehabiate The industry and the service Is
possible only those upon whom the responsibility rests
fai 10 undertake he work or pursue It In spirit that
makes settlement Impossible.
In a summary OF It's conclusions and recommended
tnns the commission said the electric railway Industry
as now exists without financial credit and not
properly performing IT'S public function.
It asserts ihat this condition the result OF early
financial mismanagenent and economic causes, acoenu-
aied by existing high price levels OF labor and materials
and the failure OF the uniform unit fare Of five cents pre-
scrbed either by statute by local franchise ordinances
OF contracts To provide the revenues TO pay
operating costs and to maintain the property on rea-
sonable basis.
The Industry can be restored a normal basis. It says
only by the introduction OF economies In operation Inn
proving its tracks, equipment and service and securing
reasonable return upon the fair value OF It's property
used in public service when honestly and efficiently
managed.
Restoration Of credit involves readusmeni OF rela-
lions which viii remove public aniagonism provide pub
lie cooperation and insure the investor the Integrity Of
his Investment and a fair rate Of return thereon
Fun cooperation Of labor is essential TO the prosperity
and usefulness the electric lines the report says, add
ing that employees should receive living wage and hav
humane hours and working conditions
The commission says that a satisfactory solution o
the problems OF The Industry cannot be reached withou
consdering the fair valuation OF the properties. Whe
this is done Il adds companies should voluntarily reduc
capitalization to the basis OF that valuation
The commissioners held that while it sesmed best 70
state auhortes 10 have jurisdiction over electric lines
either directly or on appeal that there was mo insupei
able objection" to large and wddeawake' cities exerc'
n exclusive regulatory powers over rates and service
Discussing cosi-of-service contracts the report say
they are in an experimental STAGE but "secm TO hav
secured fair return upon capital established credit an
arected reasonably satisfactory public service.
'such contracts may safely be entered nto,' II COZ
tlnues yphere the public right eventually TO acquire u
property is safeguarded."
This leads the commission into discussion Of publ
ownership Of street railways from which this concuso
is derived:
while eventually It might become expedent for tn
public to own and operate electric railways, there
nothing in The experience thus far obtained In ih
country which will justify the assertion that it viii rt
~sdt in better or cheaper service than prvatey-operate
utilities could AFFORD II properly regulated
~public ownership and operation Of local transpoNa
Non systems whether not It be considered ultimael
desirable now, because OF constitutional and statutor
prohiDiuons. financial and legal obstacles the presen
decree Of responsibility OF local governments an
te STATE Of public opinion practicable In so few in
stances That private ownership and operation must
general rule be continued for a extended period
III the reforms incident 70 public regulation which "
suggest IN hls report should in making prva
ownership satisfactory 10 the public such reforms shou
least enable public ownership TO be established up,
just and equitable basis"
It is urged by the Federal Commission that spec
assessments against trolley companies for Construct
and maintenance OF bridges and streets also used
public highways be eliminated It also that troll
extensions into new territory where property vail
were specially benefited should be paid for by asss
snent OF such property "and that The amount Of 81
assessments should not be added to the physical va
of the corporate property"
In this connection the report enumerates among fact
that have contributed 10 the present plight OF
trolley lines "oyerbudlng into Improbable territ
or TO promote real estate enterprises. involved so
times with political improprietes."
The cr1x OF the whole report is however, that
oldtme nve-cent fare does not provide enough reve
70 enable the companies to meet new-thn economic col
lions and that il the companies 10 function prope
they must be allowed adequate fare
We have doubt the report viii reconcile thousa