Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-02
RAIL
GIVES
tokens OF HOPE
Dense Cut Against Slow
Business Increases Net
Revenue.
BERT I. TODDS VIEWS

EBERT I. TODDS VIEWS
8 Millions in the electric railway in
SX M Of the United States inspire hope
ES co Sfdence in it's future success,
- S l. J i'd, president of the Ameri-
#ectriS Railway Association and
[&2$Qnt of the indianapolis Street Rail
$4npauy. declared in an official state
x9 sued today.
81 s-matory of his declaration, Mr..
Aresented figures showing that re-
3 kps for 1921 were greatly de-
I$X3&H as compared with those in 1920;
eipts during the first six months
lear showed substantial increases;
- decreases of later months were
Il az n the decreases in most lines of
sgfsfness; that the long anticipated drop
in wages and material costs is at hand,
although both of these items still are
approximately double what they were in
1914: and that there is a gradual increas-
ing betterment in the relationships be-
tween the public and the electric rail
WAYS.
MR.. TODD's
STATEMENT.
Mr.. Todd's statement ia full follows:
conditions in the electric railway in
dustry of the United States inspire hope
and confidence In its future success. Only
nine companies went into receivership
during the year They represented 40
miles Of track and capitalization of 81
140 400 During 1920 sixteen companies,
with 800 miles Of track and a total cap
itaIfzation of so. 313 COS went into re-
Sceiyerships while in 1919 forty eight com
Kpanies with a capitalization of SOD ,239-
&354 failed.
81 sit also is encouraging to note that
accompanies operating 81 miles of track
were reorganized during the year Hence
the net additional miles of track in re-
ownership for 1921 is 211 miles.
s'Receipts in recent months have fallen,
as they have in virtually all other lines Of
business. Reviewing the industry as
whole, electric railways certainly are
holding their own. Totals for seventy
two representative lines of the United
States show a slight increase in passenger
revenue durini s1e first six months OF
this year over the same period for 1920.
During the following four months there
were steady decreases of from i to per
cent. The last available report on these
figures, for October, shows a slight in
crease over September.
'In spite of the falling off in receipts
and traffic during recent months, how
ever, the companies have been successful
in curtailing expenses to such extent
that there has been an increase in net
revenues and a corresponding improve
ment in the operating ratio
'The falling off in passenger traffic has
been largely offset by a reduction in car
miles operated
This is very healthy sign indicative
Of the ability Of management to readjust
itself to a lower price level. It augurs
well for the essential security and sound
ness Of electric railway investments
Recognition of the fact that II the
roads were to survive, wages would have
TO decrease, has been general The aver
age wage now paid on the eighty We
leading lines of the country, however. is
9410 per cent higher than the average
wage paid on the same lines in 1914
EQUIPMENT COSTS
SLIGHTLY LOWER.
Equipment costs, which more than
doubled during the war, are of slightly
from the peak reached last year. Aver
age costs on representative material used
by all roads now is 112 per cent higher
than Il was in 1914
Necessity for the maintenance OF a
rate Of return which will be ample to
keep pace with these and other operating
costs, and to help care for great deficits
piled up during the war is being gen
orally recognized by regulatory bodies.
and the riding public. In $50 OF the
leading cities fares Of from to cents
are operative. The largest group or
Cities 167, have a 7-cent fare the next
largest 131, have a 10-cent fare Other
groups are: Nine cents cash fare, 4
cents cash fare, So; Scent fare, 1 cent
transfer charge, &c; 7-cent zones, 4 G.
cent city zone, L cent charge for rides
outside, 1 6-cent city zone, 6 cents out
side zones, 2-cent transfer charge, 10;
6cent zones, + Scent zones, average
length two miles, /; scent cash fare,
104 two Scent zones, 2 scent city
zone, 8 cents outside, 0 scent fare. ad-
ditionaI charge for transfers Z; scent
straight fare, 20.
QUESTION OF
AUTO BUSES
The question Of buses supplanting
electric railways as the chief means Of
urban transportation has been discussed
widely during the year and three cities.
PES Moines, Iowa, Muskegon and Battle
Creek, Mich, have tried buses as a
substitute for street cars and subsequent
ly voted for the return of electric cars
by overwhelming majOrities The votes
in the three cities were as follows:
For Against
Des Moines, Iowa, ......16,S77 s797
Muskegon Mich ,..... 4.GO5 1926
Battle Creek, Mich. =. 33,63s so
Despite this emphatic decision of
cities which tried buses that they pre-
ferred street cars, the electric railway
industry is making a very careful study
OF the question of possible coordination
of bus and trackless transportation sys-
tens with established railway lines. This
subject will be discussed fully at the
mid-year meeting of the association in
indianapolis on Feb. %.
''The field of massed transportation
doubtless will continue to be left largely
to electric railway operation However.
the electric railway industry, always de-
sirous of supplying the best possible ur-
ban transportation, intends to determine
how far the bus can be successfully en-
ployed as a feeder to electric lines to
supplement rush hour service, and to act
in other ways as an auxiliary to the fun
damental rail system. The association
believes that one responsible coordinated
TRANSFORMATION system shou1d hava oharpa