New-York tribune., 1921-11-06
Service at Cost Idea
ApproUed for Utilities
Fairest for AH Concerned in
Opinion Of Committee; Com
promises on ". Y. Plan Likely

V!O3NsSeS on ". L. FI0n LIKELY
Fl. N. AddinseU. chairman, sab
nalttsd the report of the Committee
on Public Service Securities, extracts
from aohich follow::
"The past year of general business
depression has accentuated the inher-
ant stability of public utility bust
ncsses as class.
I'm this committees last annual re-
port mention was made Of the success
winch many utility companies were
making in the sale of large amounts
or their preferred, and even their COM
mon, stocks direct to customers and
employees. At that time there were
pointed out the manifold advantages
OF such local distribution of a com
pany's securities. In the first place.
new security market of by no means
'nconsiderable proportions is opened
up. 1T has been estimated that since
the plan was first adopted, about seven
years ago, over S100,000,00O has been
added to the capital of public utility
companies from this source. Probably
a still greater benefit is the good will
obtained. The relations of the COM
pany with its public and with its en-
"On account OF the very size Of the
New York traction system the problems
or its various component companies
nave attracted very general attention
throughout the country. These COM
panies had to face the same problems
of war increased operating expenses
and short sighted political oppression
ss did the electric railways throughout
the rest of the country. But, unlike
the railways in m9st of the other i'm
portant cities, they have thus far been
able to obtain no relief in the form
of higher fares. In this case, further
more, the tremendous numbers of
people affected and the exceptionally
long distances to be traversed made
the impending breakdown exception
ally serious. After the elections last
fall the new Governor, recognizing this
fact, appointed a special transit COM
mission to study the problem of re-
habilitating the system and to direct
a reorganization digest of the plan
is then presented.
"a large proportion of these recon-
mendations will probably meet with the
approval of the majority of those con-
cerned. 1t Ia generally agreed that the
service at-ccst franchise, in which ade-
quate allowance is made for rewards
for efficient operation, is from the point
of view of all concerned the fafrest
and most satisfactory arrangement yet
evolved for regulation of traction rates
That many economies may be effected
b. the consolidation of the various
lines into one system is statement
which will probably be accepted with
out argument. On the other hand, it
Is quite certain that there will be con-
siderable divergence of opinion on the
question Of municipal ownership In
any case, it seems that there are still
a great many practical details which
must be worked out. Compromises will
have to be effected between the various
classes Of security holders when the
time actually comes to distribute the
new securities. There will probably
be vigorous opposition brought in the
courts from many sources. But this is
at least starting point. 1t represents
definite attempt to work out from
q broad spirited point of view
comprehensive solution to the whole
troubled question of transit service in
New York"