The Birmingham age-herald., 1921-06-25
F CITY WINS, THEN
 PUBLIC LOSES, SAYS RECEIVER BRADLEY
Patrons of Car Line Always Pay in End, MT. Bradley Says in Discussing the
 Street Railway

This is the way Lee C. Bradley, receiver of the properties of the Bir- mingham Railway, Light and Power company sums up the effort of the city commission to handicap the re- ceiver in his effort to secure enough income to properly operate the street railway system.
 When a utility is denied sufficient income for the proper operation of the property. for needed extensions and for keeping up the service, the public always, pays in the end, satd Mir. Bradley. They pay not only once, but twice, declares the re- ceiver in the last of series of state ments dealing with the street rail- way problem. When the revenue Is not sufficient, the public pays in poor service and then again the pub lie must pay in added fares to re- habilitate the property which wal allowed to go to pieces
 It is peculiar fact that many people will express positive opinion as to what a street railway fare charge should be without having the slightest information or making any investigation as to what it costs to furnish that service. These same men would hesitate to say what mer- chant should receive for his com modities without having some in- formation regarding the cost, states Mr Bradley.
 About Watered Stock
 Regarding the oft mentioned suh- ject of watered stock, the receiver declares that under the recivership, the question of stock has no part in the controversy. No attempt is being made to pay dividends and no stock holder has any control over the af- fairs of the company. However, Mir. Bradley calls attention to the fact that recently the city sold a block of bonds at a discount of Sl00,000 and he asks who could say that this discount was anything but water He finds no fault with the transac- ton of the city. but merely calls at tention to it as indicative of an in- stance where a corporation migh { find it necessary and advisable to sell its bonds below par.
 The receiver declares that tho street railway company has not made money out of its operation and that if money has been made out of the exploitation of the stocks, the utility was the victim, and not the bene- ficiary. After a careful study of the situation, the receiver declares thas it is his opinion that the street ra:i- way has earend the lowest return of any important industry in the Bir- mingham district.
 A public utility must earn a fair return on it's investment to long sur- vive, declares the receiver, while ad- hitting that there is vast amount tofeprejudice against the public utility Admitting the serviceabaiity of the utility for the purpose of politicHns, he expressed the belief that the general public, given the true facts, would do the fair thing.
 Despite the fact that the city has employed experts to study and re port the facts, the receiver declares that if more time is needed, they should have it. Attention is called to the fact that delay is at the ex- pense of the receiver and not of the city. One of the handicaps of the receiver is the fact that the patrons never consider the possibility of the receiver stopping operations but consider the operation of the sys- tenn as a matter of course.
 Taxed As Monopoly
 Despite the fact that the utility must pay the market price for all that it buys, it has nothing to do with fixing the price for anything which it must purchase. declares Mir. Bradley. It is taxed as a monopoly and at the same time is subject to unrestrained competition in the form hA r,ti h q VI Q been constantly regulated downward while the jitneys run without se- rious regulation. Under this system, the railways broke down to such an extent that the government had to take them over during the war.
 While Mir. Bradley is careful not to question the advisability of regu- lation, he asks the question of the advisability of having the city com mission regulate the banks. For that purpose they are as well fitted by training and experience as to regulate the utilities, he declares.
 The suburbs are peculiarly inter- ested in the solution of this prob- lem, declares Mir. Bradley The sys- tenn in vogue in many cities is to charge one fare for certain re- stricted zone in the city and double the ldIc TUT thc AOn8 haoio' A1S" ever, he is careful to express his dis approval. of the idea of charging more for the long haul than for the short haul. as the district had been built up on the idea of . one-xone plan. However, if the revenue for operation of the line can be secured in no other way, the zoning system is a possibility always to be consid- cred.
 Money for Developments
 Attention is called to the fact that for some Is years the corporation has required S500,o00 annually for extensions and improvements The receiver declares that the corpora ton cannot get that needed capital unless the operations are making money. and unless this money IS forthcoming. the extensions cannot keep pace with the needs of the city The reason for increasing the rates at this unfortunate time is declared to be the fact that the corporation was starved during the period when other companies were building up reserve.
 In conclusion. Mir. Bradley says;
 "One other thought; Every burden placed upon the utility is by 1t nec- essarily passed on to it's patrons Every burden is a part of the cost, and the fair return which II ana every other business must have is' of course, over and above all the cost. The car riders in reality must ultimately pay the cost of paving the tracks, although the paving IS for the sole benefit of another kind of vehicle. This merely illustrates the principle. The patrons of the utility pay the very high taxes levied against the utility. That is. they pay them in the long run. So that the utility has, in fact, merely been made the means of levying indirect