Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-01-19
STABLE BASIS
TREND is SEEN
IN ELECTRICS
President of A. E. r. AssOcia-
ton Issues Statement on
National Condition.
REGULATION IS CITED

NEW YORK, Jan. 19.-P. H Gadsden,
president Of the American Electric Rail-
way Association, today Issued the fol-
lowing statement:
IAN official report on the national con-
dition of the electric railway industry
for the year ending Jan. 1, 1921, just
compiled by the American Electric Rail-
way Association, indicates a gradual
and steady approach TO a stable basis
This situation is largely due to the
fact that regulatory bodies, recognizing
that granting of the claims of electric
railways for fair rates OF return Is es
sential to the maintenance Of good serv-
ice, have steadily ordered relief through
out the country
These regulatory bodies also seem to
be cognizant of the fact that rehabilita-
ton of lines will be a slow process and
that at least the present advanced rates
must be maintained for some time even
If falling costs, anticipated, but not
realized as yet, should come. A large
majority of the companies in the last
four years have strained their financial
resources to the limit, or created actual
deficits, by merely meeting current ex-
penses and making absolutely unavoid-
able emergency improvements.
NEEDED IMPROVEMENTS
POSTPONED.
Many badly needed improvements
have been deferred by virtually every
company on account of a lack of funds.
1t is necessary, therefore, now that
fares are beginning to be commensurate
with costs, that the present increased
rates be continued until lines are fully
rehabiIitated. Unless present fares are
maintained indefinite suspension OF ex-
tensions and betternents Will result and
this would be almost fatal to many prop
critics.
The report Just completed shows that
54S cities in the United States, repre-
senting more than 80 per cent of the rid
ing population in cities. are paying fares
ranging from cents with a 1cent trans
fer charge to a fat rate of 10 cents.
The largest groups are: Cities paying
a 10-cent fare. 112; Scent fare, g; I-cent
fare. IA. and 6-cent fare. 124.
other groups follow: Cities paying
e-oant cash fare, 6; 7-cent fare, 1-cent
transfer. &c; T-cent zone fare, 5; Scent
CITY and outside zone fare with 2-cent
transfer charge, 10; Scent zones, o; two
5-cent zones. 2; 5-cent city zone, cents
outside 10; Scent city zone, 1-cent charge
for rides outside city zone, l; 5-cent fare,
with additional charge for transfers, !.
IMMEDIATE RESULT
Is FOUND.
The immediate result Of the wide
spread inclinations TO adjust rates up
ward to the requirements of good service
is found in the low number Of electric
railway receiverships for 1920. There
were only sixteen, representing a total
>-eapital stock Of S25.313,655, as compared
with forty eight receiverships. represent
ing capital stock of S221 ,239.354 in 1919
During the year $50 miles of track were
dismantled and 3OS mikes Of track aban-
doned.
Another encouraging sign Is found in
the general public interest in the vel
fare of electric railways. From every
part of the United States reports have
reached the association that not only are
regulatory bodies, but car riders gen
orally taking the greatest interest in the
restoration Of companies to n healthy
state. In practically every community
there appears to be desire on the part
Of the car riders to cooperate in an ef-
fo-t TO make the lines self sustaining and
IL encourage a flow Of new money into
the industry. Certainly the inclination TO
prevent companies from receiving suft-
cient return to maintain good service Is
confined TO a small number of persons