Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-24
'SERv|CE-AT-COST
| PLAN IS FAVORED
Federal Electric Railways
Board Recommends Sweep
ing Reforms in Report
TROLLEY FINANCING is HIT

Washington. Aug. 24.-SatiSfactory
solution of the problem presented by
the electric street railway industry can
BE- reached through application OF nrln-
riples 'of ordinary economic and bust
ness common sense in the unanimous
oriuion Of the seven men who composed
fhe Federal Electric Railways Commls-
zion appointed by President Wilson in
1910. The report Of the commission,
prepared after exhaustive bearings and
examination Of nearly 100 witnesses,
was made public today and says:
'"The commission can go no further
than to point out the principles upon
which the readjustmcnt 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
upon whom the responsibility rests fail
to undertake the work or pursue II in a
spirit that makes settlement impossi
ble.'
Outstanding among the recommenda-
tions is that of the installation Of the
service at cost plan of operation, now
operative in Cleveland. Cincinnati,
Dallas, Montreal and other cities.
summary OF tOnfiuSlOTS
In a summary of it's conclusions and
recommendation the commission said in
part:
"The electric railway industry as
Il now exists is without financial credit
and is not properly performing its pub
lie function.
''This condition is tho result nj early
financial miSmanaCPment and economic
L.. IL.
price levels of labor and materials and
the failure IF the uniform unit fare of
five cents prescribed either by statute
or by local franchise ordinances or con
tracts TO provide the necessary revenues
10 pay operating costs and to maintain
the property on a reasonable basis.
'"The industry can be restored to a
normal basis only by the introduction
Of economics in operation. improving
Its tracks equipment and service and
securing a reasonable return upon the
fair value Of its property used in public
rervice when honestly and efficiently
managed.
"Restoratiou Of credit involves a re-
adjustment of relations which will re
move public antagcnism. provide public
corporation and insure the investor the
Integrity of his investment and n fair
rate Of return thereon.
Improve Working Conditions
Full cooperation Of labor is essen.
tial to the prosperity and usefulness Of
the electric lines. the report says. add
Ing that employees should receive a liv-
ing wage and have humane hours and
working conditions.
They should have the right to deal
collectively with their employers. it
continues. through committees or
Representatives Of their own selection.
All labor disputes should be settled vol
unfairly or by arbitration. and the
award of such a board should be final
and binding upon both parties.
1T is intolorabe that tine transpor-
tation service of n city should be subject
:" occasional paralysis, whether by
strikes or 'Ockouts."
A satisfactory solution Of the prob
lens of tho industry cannot Re reached
without considering the fair valuation of
the properties, tue report says. When
this is done. it adds. companir. should
voluntarily reduce capitalization 10 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