Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-14
ELECTRIC RAILWAY
PASSENGERS GAIN
Lines Continue, However, to
Suffer From Politics, Taxes
and Thin Profits.
.nerial nisnatoh to The star.

Special Dispatch to The Star
NEW YORK. August 14.-Passenger
travel on electric railway lines and
afhliated bus systems In the United
States is on the increase, despite COM
petition from the private motor car, but
the lines continue to be the victims OF
local political oppression, high taxes and
thin profits.
Public understanding of the difficult
ties besetting the electric railway indus
try and easing up Of the tax burden
under which the companies operate in
many American cities are two SOLUTIONS
of the industry's problems suggested by
Francis H. Sisson, vice president Of the
Guaranty Trust Co, in the current issue
of Electric Railway Journal. He states
that a fairer attitude on the part OF the
public IN the matter Of rates and taxes
would place the railway companies IN q
much stronger financial position, ana
adds that the operations of the lines Tor
many years have been for the most part
Improbable.
Census Shows Increases.
Quoting the United States census OF
electric railways, the banking executive
shows that since 1902 there has been
steady increase in the number OF pas
sengers carried, in the total Of miles Of
route served and IN the vehicle miles
operated. Operating expenses and taxes
are shown to have increased much more
RAPIDLY than gross revenue in 70 years.
Net revenue showed moderate increase
until 1922. as did the income available
for interest and dividends. Since then
both have declined rapidly.
There can be no doubt, Mr. Slsson
writes. that one very important cause
of The difficulties of electric railway
cornnanies has been the oppressive and
arbitrary treatment they often have re-
ceiYed at the hands Of public officials.
The railways. being protected monopo-
lies. are subject TO regulation in the
ntblic interest In its~4istoricai appl-
cation to the specific problems Of the
electric railway management this sup
messed public interest has often taken
the form Of a demand for cheap and
efacient transportation, regardless o.
financial returns to the companies.
ss0i,e course that would seem to offer
great possibilities" the banker aaus, rs
n place the real situation squarely be-
fore the public and to make business
men think about IT, The transportation
companies have been trying TO do this
but their efforts have often been re
parded as insincere. Few leaders OF
business and industry and few organs OF
public opinion have interested them
selves in this tremendously important
problem.
Recommends Tax Cut.
"A SECOND step would seem to be 70
relieve the transportation companies Of
their present unreasonable burdens and
re5uce to the lowest practicable point
the taxes they have to pay. This VIII
mean that compromising increases II
taxes must be secured from some othe1
source. Opposition to such plan, how
ever, should not be tnsurmouutabie II
Ethe public thoroughly understands the
situation.
"A third step that has been suggested
/ Is that Of assessing benefited property
for a part Of the original cost Of trans
portation facilities, as is done for such
other public services as water mains
sewers and pavements. BY this means
l the capital investment upon which the
transportation company must earn
return would be substantially reduced. y