Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-09
Street Railways
CONTINUED from Page ons)

Receivership records for the year
are encouraging. Mr.. Emmons de.
clares. Detailed reports from, Jan.
l to Dec. is. 1922. show that proper
ties with a total mileage Of only 617
and total outstanding securities Of
$:O. 0S6OO0 went into receivership,
while roads with 45S miles OF track
and total securities Of SIS. ~. $50
came out.
Receiyerships throughout the in.
dustry have decreased gradually
since 1919 when the peak was
reached with AZ companies, embrace
ing total securities OF approximately
$685.. 10000 going into receiverships.
Financial conditions with some Of
the largest companies now IN re-
ownership are improving. and at
least one. and possible more Of thems
may emerge at any time.
The general tendecy among regu-
latory bodies is to keep fares at q
level proportionate to increased ma
terial and labor costs. The average
fare today in q group of 20 repre-
per cent higher than 1t was at the"
outbreak of the war; while the av-
erage wage increase is d per cent,
and the average material cost In
crease is 1O2 per cent. Inasmuch as
labor and material costs constitute
about 80 per cent of ali operating
expenses of electric railways. the
proporitionate increase in fares over
pre-war levels is much lower than
the increase in cost Of labor and
materials.
Probably the most important fac
tor in keeping the percentage OF in
crease in the average fare much be-
low the percentage of increase In the
cost of wages and materials Is that
the increase in the average rate %
interest has been comparatively
slight. Most of the capital invested
| in companies in years past bore a
low rate of interest. The average
rate of return today upon all the in
! terest-bearing securities in the aver
age electric railway system is very
much less than is Generally realized.
! III q great many cases. it is less than
) percent.
Fares range from to 10 cents
in COZ leading cities. The Z. cent
fare is operative in the largest sim
gle number of cities. 1874: the 10 cent
cent fare third in 1H2. Other cities
1 w tisS SiOdp pay iHS SCIbtSs
| 80: 5 cents fare, l. cent transfer
charge. .26: ) cents. 20: ) cents city
zone. . cents outside. II: ) cent fare
1 reduced from higher fare, IL: 9 cent
city zone. I:\5 cent fare. additional
charge for transfers. Z; two cent
zones, >: q cent zones, ]: & cent city
zone. l cent charge for rides outside.
i; u cent zones, average length two
miles. /.
| Entirely aside from earnings. the
local transportation situation has inn
proved in most communities. The
bus situation particularly is Clarity
ing. Whereas a year ago bus COM
petition had reached sucht a point
that electric railways in several cities
were compelled to suspend opera
tons temporarily. today manage
mcnts. regulatory bodies and the
public gradually are co-operatin.
more generally in an effort 10 find
the proper place for the bug. AT
! its last convention, the American
Electric Railway Association de-
i clarsd that it was the duty of each
electric railway company to supply
all local transportation in it's COM
nunity and that it should Install
buses where necessary and he pro-
| tcct"u from destructive cOmpotitiO on
by other agencies. Indications point
to widespread recognition or the
sOundncss of this policy. Many
electric railway companies are add
ing supplemental bus service, and
regulatory bodies are restricting bus
| lines to territory not served hNs cleo
| trio railways and chasing them as
common carriers with the same re-
Sponsibilities as electric railway
lines. -.
| A dozen cities have relieved their
COMPANIES of PAVING charGes. emu
| others doubtless will take similar,
action during the coming year.
| RECOGNITION of the fact that psesent
paving requirements are largely
relics of horse car aavs when the
company horses actually wore. out
pavement is becoming general.
Mr.. Emmons saws in conclusion
! that tn" outlook is distinctly hone
! ful. with mana gements and pub
| lie continuing to work together on a
| basis Of nudersta~ ding % their wv
| tu"l derendnnce." he dcclarcs~ "the
industry will. @ro sure. reach the
firm and profitable .hasis 20 ncces-
sarr to the prosperity of the coun-
| fry ~