The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-08-29
STREET RAILWAYS
in NEED OF help
Electrical Car Industry Is Now Without
Financial Credit.
(sy Associated Press.)

Washington Aug. Satisfactory
solution of the problem presented by
the electric street railway industry can
be reached through application of prin-
ciples "of ordinary economic and bust
ness common sense" in the unanimous
opinion OF the seven men who composed
the Federal Electric Railways Commits
sion appointed by President Wilson
in 1919. The report of the commits
sion, prepared after exhaustive hear
ings and examination of nearly i0C
witnesses, was made public 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 il those
upon whom the responsibility rests fail
to undertake the work or pursue it
in a spirit that makes settlement i'm
possible
"The electric railway industry as it
now exists Is without financial credit
and is not properly performing its pub
lie function.
"This condition is the result OF early
financial mismanagement and economic
causes, accentuated 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 to provide the necessary
revenues to pay operating costs and to
maintain the property on a reasonable
basis.
THE industry can be restored to
normal basis only by the Introduction
OF economies in operation, improving
its tracks, equipment and service and
securing a reasonable return upon the
fair value of its property used in public
service when honestly and efficiently
managed.
Restoration of credit involves a re-
adjustment Of relations which will re-
move public antagonism, provide public
CO. operation and insure the investor
the integrity of his investment and q
fair rate of return thereon.
Full corporation Of labor is essen
tial to the prosperity and usefulness
Of the electric lines, the report says
adding that employees should receive o.
living wage and have humane hours and
working conditions.
"They should have the right to deal
collectively with their employers" it
continues, Through committees or rep
resentatives of their own selection. All
labor disputes should be settled volun-
tarily or by arbitration and the award
of such board should be final and
binding upon both parties.
1T is intolerable that the transporta-
ton service of city should be SUBJ
iect 10 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
voluntarily reduce capitalization to the
basis Of that valuation.
The commissioners held that while
il 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 eX-
elusive regulatory powers over rates
and service.
Discussing cost of service contracts
the report says they are III expert 1
mental stage but seem to have secured
a fair return upon capital established
credit and affected reasonably satisfe-
tory public service"
"Such contracts may safely be cii-
tered into" 1t continues whera the
public right eventually to acquire tic
property is safeguaFded"
-------
A process for making paper pup
from fc