The Birmingham age-herald., 1922-10-15
BRADLEY EXPLAINS UTILITIES POSITION
 IN CONTROVERSY
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(Continued from Page one) In Birmingham would buy the new securities to supply new money to a utility in distant city, just emerg- ing from four years receivership-- when tho receivership was known to have spent every dollar of income during the four year period Cn the property and service, excepting only interest and taxes and two millions besides, and at the end to be earning only interest on bonded debt and taxes? The case supposed gives in short the history Of the receivership of the local utility.
 The Birmingham Water company found 1t necessary to raise it's new money through an per cent prefer red stock and to sell 1t locally, all though it has not been in receiver ship.
 And by what test will q prudent man measure the safety Of the se- cur1ties offered? Obviously a large consideration would be the rate of return on the existing investment. The promise of as high rate as per cent will not tempt a prudent man to buy the securities of con cern which Is earning only 4 or per l repeat that there is no more req son to hope that the stranger will finance Birmingham's utility expan- sion than there is to believe that Birmingham will finance the stran- gers utility expansion.
 Let us, then. get 1t firmly in mind that the fundamental problem is to bring the estate in receivership to a condition where recognition will be warranted. and recognize that the reorganized corporation must be so strong and so sound as that 1t can meet the demands of d rapidly ex- banding district-but meet them only, or at least in large measure, by selling it's securities to the very community which 1t serves.
 What the Community Is Interested in
 Every man, woman and child has a deeper interest in seeing to 1t that there is a utility at hand able to serve than in haggling over the min utiae of rates. If the utility is able to serve and properly paid to serve, there Is every reason to believe that 1t will serve-gladly and well. And if 1t is able to serve and properly paid to serve, but fails nevertheless to serve. there is ample power in the law to make 1t serve. But If 1t isn't able to serve, "all the kings horses and all the kings men" can't make 1t do the impossible.
 There is large school which con- ceives itself to be interested only in securing the lowest possible rates and fares. That school fails to re- cognize that you can't get more than you pay for--that a lean rate or fare necessarily means a lean service. It has been well said that poor service is dear at any price and good ser vice is worthy Of proper pay.
 Notwithstanding the lean earn ings we have gone long way to- wards placing the property In condi- tton for. reorganization. The physi- cal condition of plant and equipment is now at least fair. Minor adjust ments would strengthen. the earning power in a short time. There is no thought here that the public must buy the utility out of It's difficulties. but only that such minor adjust ments should be made. and really must be made, as will enable the utility to work its way out.
 Existing Rates Considered
 Let us look for a moment at ex- isting rates.
 The electric rates have not been increased. notwithstanding war con- ditions, and notwithstanding the fact that the utility is now paying S165.- 000 per year more fer it's current than before the war. Few localities, if any, have fared so well.
 Gas rates have actually been re- duced and are among the very lowest in the United States.
 Railway rates have been increased approximately 50 per cent. but they are not substantially out of line with railway rates in the country at large, r,c txnyft h to ndi O dancffv of traffic and a very long average haul.
 But the railway rates arc really low when you consider the effect of the jitneys. They have been with us for eight years They have taken in altogether millions of dollars. What have we now to show for their activities? The millions of dollars which they have taken would gone far towards sustaining the utility system. But, taken away, they have gone far to break it down in the first instance, and to keep 1t down until now. Insofar as jitneys operate along the streets where the railway lines extend. over pavements supplied by the railway, they are pirates, pure and simple. They are not only pirates, but they are subsidized pirates. 1Hey pay hOeAA'9 c> ~~%- sequence in the way of ad valorem taxes. They pay only . nominal H. cense tax. They contribute nothing to the maintenance of the streets They serve only 20 per cent of the travelling public. Every car rider has | for the past eight years contributed to the support of tho titneys. He has contributed, either in suffering poor service. or in . higher fare than would otherwise be necessary. City Must Solve Jitney Problem do not propose to suggest even | the lines for the solution of tho jitney problem. That must be solved by the city authorities. It should be done, calmly. patiently. firmly and finally. The problem ought to De settled on its merits. It should not he settled as the result of a trade Tha citv. feel confident. is unwill- ing to put itself in the position of selling the jitneys out. and an positively unwilling to put the utility In tho position of buying the iitneys out. But we must know de- fnitelv how the problem Is to be | settled before we can estimate the result of the settlement.
 Sunnose now that we consider merelv the waste resulting from the operation of two systems of trans rortation serving the same territory and lay all other considerations aside. Let us assume for the moment the elimination of this waste. and lther divide between the public anc inc utility the salvage of the waste Car rates can be reduced as result of salvaging this waste, and at tne same time tho earning power of the utility can be increased. Taking 2 hroad view of the community prob ljam everybody will be helped anc nobody will be hurt. for in the last analysis the immediate temporary Ibeneficiary of waste suffers in com mon with the rest of the communit,