Show PUBLIC TRUST FOR TRACTIONS SOUGHT U. U S. S Commission Urges Cooperation for Better Better Better Bet Bet- ter Service By Harry B. B Hunt N. N E. E A. A Staff Correspondent WASHINGTON Aug 21 L overhauling of street railway franchises In fifty or more mere American cities ciUc and a a. general gen ben oral eral modernizing of ot tho relationship relation ship between street railways runways and I I Ithe the public Is la recommended by the thc presidents president's federal electric rail ran ways commission in a report which will go co to the White House Houst within the tho next few tew tays days ys After fourteen months of ot In- In in and study the tho eight t members of ot tho the commission commission- representing all Interests In street streel railway ownership operation an and i service have service have agreed that tho tIm In In- In as a whole on the basis basir I of watered stock present earnings and operating costs is 1 I. Virtually bankrupt 2 Without buying power Ower t to provide now new equipment power r facilities and absolutely r necessary in most cities clUes 3 3 Without either the confidence or trust of ot the communities I It t serves 4 Hampered by popular distrust dis dis- trust and suspicion People Come Pint Fit The commission has decided I that the kite flying period o of ot f street railway promotion ant and I operation IB Js past and that franchises fran fran- must be bo readjusted on i a t basis which while white allowing a t fair lr return on Invested capital t will put service and the public Interest first will Insure honest bones t management and regulation safeguarding safeguarding safe sate guarding the public against de deception deception deception de- de and will wUl bring about a 1 period of cooperation between street railways and aDd tho the I communities communities com corn thC they serve Instead o of at f the strife hostility and a contests that now prevail The of ot the tho commIssion commission commis commIs- sion and the interests they were weri i named to represent are Edwin F. F Sweet assistant secretary eec sec of ot commerce commerce- representing tho the department of ot commerce Royal Meeker former commis commissioner of labor statistics for tor th the S department of ot labor Louis B. B 13 L Webb general counsel for tor tb the C LC War Finance corporation for tor tb the S treasury department Charles E. E E ElmquIst president and general genera I solicitor of ot the National A ocla- ocla tion of ot Railway and Utilities 5 Commissioners Charles W. W BeaU Beall of Harris Forbes Co Ne New r York for tor Investment Bankers Bankers' I Association of ot America Philip 2 H. H Gadsden for the American L Electric Railway association William D. D Mahon president t I Amalgamated Association of ot Street Railway and Geor George e L. L Baker Daker Portland Ore for the American Cities Cities' League of ot Mayors Mayons Cities Blamed too In reviewing conditions leading up to the present street railway situation the public I 10 not held i altogether blameless nor railways railways' I promoters unconscionably at fault Stock watering was coun- coun I I winked at and accepted If It not actually approved by the cities clUes themselves In many In In- In stances But In the face of ot this general knowledge cities went ahead and granted franchises while dividends were paid out on two and three times tho the capital invested Speculation Hurts That there was an element of ot speculation originally In street railroading is reco recognized and also that the cities and towns have benefited from the tho development made possible by street railway lines But tho B stage stige ge when promoters promoters' promoters promoters' promoters promoters' pro pro- profits be recognized and when dividends on any amount of ot water that It ma may have f I been po possible sible to pour Into street railway stocks should be maintained main maln- tamed has passed the commission commis commis- sion Ion believes From now on new now I fr franchises granted or revisions made should provide a fair tall return I Ion j on th the actual and not the tho paper value of ot the tho lines the rights of ot I protected and the public given a voice In the regulation of or service paying a faro fare sufficient BUt suf I t to maintain good service decent equipment and necessary II extensions |