The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-01-07

with the total wealth OF
the country, are a bagatelle.
At a time when there may be OBJ
served a general downward trend of
prices there is presented the anam-
alous situation that public utilities
in snany cities are asking for an in
,crease in rates for their service. 1t
have been doing business at little or
no profit, but the fact that they should
have received higher compensation in
the past seems hardly to justify plac-
ing an increased burden on the public
at time when the ability of the peo-
pie to pay is diminishing.
1T might be well for public utilities
concerns to recognize the fact that
there is such a thing as charging more
than the traffic will bear. If charges
become excessive the people will find
a way out, either thru substitution of
other forms of service, or reduction
of patronage. This plan can be made
to work in the case of everything ex-
oept water. Probably this explains
water supply.
A too high street car fare may cause
the citizen TO walk the short distances
and it is on these that the company
makes its greatest profit. For long
distances he may resort to autome-
biIes.
Too high a price for gas may bring
an extended use of electricity and SO
on thru the list.
The history of the Capital Traction
company in Washington as developed
by statement from its president be-
fore the utilities commission is a DEM
onstration that an increased price for
public utility service does not mean
increased profit to the operator, does
not mean increased service to the pub
lie, but does mean an increased cost
of operation which benefits neither
the corporate owner nor the public
and its benefit to those who absorb
the additional expense is matter to
be seriously questioned.
Washington has two systems of
fivescent fare was making an adequate
profit and so stated before the utili-
ties commission. The other company,
partially because of labor strikes
which had crippled it's equipment and
disorganized it's service and partly for
other reasons, found itself operating
at loss with a five-cent fare. To
increase its charge for service with
out increasing that of the profitable
company meant an increased patron
age of the fiye-cent line and a loss of
business to the one making the in
creased charge. 1t, therefore, in the
judgment of the utilities commission.
became necessary to advance the fare
OK both companies to eight cents. At
this time the weaker company is max
ing application for still further in
crease of its charges, while the better
managed company, thru it's president,
now stat that 1t would be impossible
for his company to go back to a five
cent fare and pay operating expenses.
Since the increased fare was au-
thorized price levels and the cost of
operation have not increased. while it
is probable that efficiency of service
has increased. The increased fare has
led to an increase in operating ex-
penses from which the public receives
no advantage. while the earning
public must pay high IT fares which
will in turn Justify a higher wage.
High price levels 70 public service
are an obstacle in returning to normal
conditions.
1t should not be forgotten by utili-
ties corporations that there is ever
present the probability that a public
which regards itself as being treated
unfairly may take the operation of a
utility into its own hands. There have
been numerous instances of such ac-
ton.