Electric Railway Journal Volume 54 July to December^ 1919 McGraw-Hill Company, Inc. Tenth Avenue at Thirty-sixth Street New York City Instructions for Use of Index This index is essentially a subject index, not an index of titles, and articles treating a number of different subjects are indexed under each of them. In addition, a geo- graphical reference is published wherever the article relates to any particular railway company, or to the state matters of any particular state. The geographical method of grouping serves to locate in the index any article descriptive of practices, condi- tions, events, etc., when the searcher knows the electric railway, city or state to which the article ' applies. Groupings are made under the name oi the city in which the main office of the cfimpany is located, but an ex- ception is made in the case of electrified sec- tions of steam railroads, such entries being made direct under the name of the railroad. City or state affairs appear direct under the names of the city or state involved. In the subject index, the alphabetical method is followed, and if there is a choice of two or three keywords the one most gen- erally used has been selected, cross refer- ences being supplied. Below will be found a list of the common keywords used in the index to this volume. This list has been sub- divided for convenience into thirteen general subjects, but the general subject headings, shown in capital letters, do not appear in the body of the index. As an example, if a reader wished to locate an article on power- driven tower wagons he would obviously look in the list under the general subject "Cars and other vehicles," and under this caption, only "Service and tower wagons" could apply to the article in question. The reader would therefore refer to this keyword under "S" in the body of the index. In addition to the groups of articles cov- ered by these headings the papers and re- ports from railway associations are grouped under the names of the various organiza- tions. Proceedings of other societies are indexed only in accordance with the subject discussed. Short descriptions of machine tools appear only under the heading "Repair Shop Equipment" and are not indexed alpha- betically, because of the wide choice in most cases of the proper keyword. CLASSIFIED LIST OF KEYWORDS ACCIDENTS AND ACCIDENT PREVENTION Accidents (including wreclis) Accident claim department Safety-first movement CARS AND OTHER VEHIOLES Car design Cars (descriptive) Cars, one man Motor buses Motor cars, gasoline Service and tower wagons Work and wrecking cars CAR EQUIPMENT .\xles Bearings Brakes and compressors Controllers Couplers Current collection Gears and pinions Motors Trucks WHieels EMPLOYEES Employees Labor Strikes and arbitrations Wages Wage increases FARES Fare collection (including apparatus) Fares Fares, analysis of cost Fare increases (actual increases) Fare increases, reasons for Tickets Transfers Zone fare systems FINANCIAL, LEGAL AND STATISTICS Accounting -Appraisal of railway property Financial Franchises Legal Market conditions Operating records and costs Maintenance records and costs Public service and regulative commissions HEAVY ELECTRIC TRACTION Heavy electric traction (general) High voltage d.c. railways Locomotives MAINTENANCE OP EQUIPMENT Paints and painting Repair shop equipment Repair shop practice Repair shops Tests of materials and equipment Welding special methods POWER Energy checking devices Energy consumption Feeders Overhead contact system Poles Power distribution Power stations and equipment Substations and equipment Third-rail contact system Transmission lines STRUCTURES Bridges Carhouses and storage yards Power stations and equipment Repair shops Substations and equipment Waiting stations TRACK Pavement Rails Rail joints and bonds Special work Ties Track construction Track Way TRAFFIC AND TRANSPOR- TATION Advertising Freight and express Operating practice Publicity Signals Stopping of cars Traffic promotion Traffic surveys MISCELLANEOUS Management Municipal ownership Pavement Standardization Subways INDEX TO VOLUME 54 PAGES BY WEEKS No. 1, July 5 1 to 52 No. 2, July 12 53 to 102 No. 3, July 19 103 to 150 No. 4, July 26 151 to 206 No. 5, Aug. 2 207 to 266 No. 6, Aug. 9 267 to 308 No. 7, Aug. 16 309 to 368 No. 8, Aug. 23 369 to 420 No. 9, Aug. 30 421 to 462 No. 10, Sep;. 6 463 to 508 No. 11, Sep.. 13 509 to 552 No. 12, Sept. 20 553 to 606 No. 13, SepL 27 607 to 682 No. 14, Oct. 4 683 to 704 No. 15* Oct. 11, (Report Number) 1 to 130 No. 15A, Oct. 11 705 to 742 No. 16, Oct. 18 743 to 780 No. 17, Oct. 25 781 to 812 No. 18, Nov. 1 813 to 848 No. 19, Nov. 8 849 to 880 T.T on ( Nov. 8, 15, and 29 I aaa No. 20. c n iQ °°1 I Dec. 6, Dec. 13 ) No. 21, Dec. 20 967 to 1028 No. 22, Dec. 27 1029 to 1070 *The publishers recommend that this Report Number be bound as an appendix at the end of the volume, as suggested in the notice about binding on page 705 of this volume. Accident Claim Department : — Claim adjuster's views on car operating econ- omy [Giltner], 1045 — Discussed by Pacific Claim Agents Assn., 70 — Experience with one-man cars [Dixon], 730 — Psychology of claim adjustments [Handlon], 157 Accident Prevention : — Comments on accident prevention campaigns [Proctor], 724 — Comments on safety-first movement. 510 — Co-operation of employees, '281 — Discussed by A. E. R. C. A., 718 — Discussed by National Safety Council. 790 — Human factor in safe operation and mainte- nance of rolling stock [PhilUps], 793 — London's buses [Jackson], *830 — Methods in Philadelphia discussed liefore Federal Electric Railways Commission, r94 — Nationalization and standardization of acci- dent prevention [Reid], 791 — Phila-delphia Rapid Transit Co., school children campaign, *399 — Safety before and after the war [Schneider], 791 — Safety first campaign in Rochester [Mc- ■ Dougall], 733 — Safet.v organizations needed by every electric railway [Proctor], 793 — Safety problem discussed by Pacific Claim Agents Assn., 69 Accidents : — Comments on, by A, E. R. T, & T. Assn,, r55 — Co-ordination of safety between transporta- tion and equipment departments [Jeffries]. 694 — Discussed by A. E. R. C. A„ r83 - — Electric railway hazards — causes, effects and remedies [McDougall], 693 — Fixed schedule for injured persons other than employees [Tynan] . 731 — Liability limitation advocated. 718 — Minimized by one man cars [Walker], 163 — Norwich, Conn., statistics 1917-1918. *281 — Relation of speed to [Bennett], 733; [ Car- penter 1. 733 — Telephone control system of assistance, '398 Accounting: — Accounting for depreciation [Jirgal] , 799 — Accounting measures to meet business depres- sion in the industry [Sailers], r37 — Clerical work of figuring coasting percentages [Johnson], '377 — Preparation of data in connection with rate cases [Bitting], r39 — Milwaukee zone fare methods, '619 — Ticket department. Great Britain, London County Council [Jackson], '374 Accounts, Standard Classification: — Report of Committee of A, E, R, A, A„ r85 Advertising: • — Advantages of continuity [Wright], 387 — Comments on national campaign, 608 — Comments on quality advertising, 608 — Discus,sed by Illinois Elee. Rys. Assn., 159 — Effect upon reduction of accidents [Wright], 287 — For traffic [Buffe], '663 — National advertisers can help [Boyce], c696 • — $3,000,000 notes sold over counter in Mil- waukee, 734 Akron, O. : — Northern Ohio Traction & Light Co,: One day strike causes suspension of local union president, 133 Amalgamated Assn.: — Comments on decisions, 609 — Comments of Mr, Huff on, 44 — Sixteenth convention, 537 Anici-ican Association of City Representatives of Electric Railways: — Constitution and by-laws, 735 Amei-iean Electric Railwa.v Accountants Assn,: — Annual convention, *r85 American Electric Railway Association : — Ainmal convention, *r3, r43 — Committee of One Hundred, organization, 33; Prcigram, 54, 80; Report, r50; Work sum- marized. 943 — Federal Electric Railways Commission (see Federal Electric Railways Commission) — Increase in dues approved, 1009 — Income and expense statement, for 1918-1919, 1010 — Mail pay (see Interstate Commerce Commis- sion ) — Mid-Year meeting: Comments on, 1039 Program, 1050 — Report of committees, r43 — Report on federal legislation, r45 — .Revision of dues. Comments on, 881 — Status of manufacturers. Comments on, 510 — Valuation committee report, 333 American Electric Railway Claims Assn,; — Annual convention, *718, r83 — Comments on efforts to reduce accidents. 705 American Electric Railwav Engineering Assn,: — Annual convention, •rf)9 — Committee assignments, 738 — Committee on standards. Meeting, 444 — Equipment committee, meeting of, 33 — Standards, Status of [Cram and Brown], •507; [Welch], 933; [Chance], 931 American Electric Railway Manufacturers Assn. : — Annual convention, r86 — Association dissolves. r87 American Electric Railway Transportation & Traffic Assn.: — Annual convention. •r53 American Gear Manufacturers Assn. : — Semi-annual meeting. *889 American Institute of Electrical Engineers: — Limitations in steam-turbine design, *933 — Size of turbo-generator units, 882 American Light & Traction Co. (see Muskegon, Mich,) American Public Utility Co. (see Grand Rapids, Mich,) American Railroad Assn,: — Adopts overhead crossing specifications, 944 — Flat spots on wheels and worn axle collars discussed, 83 American Rys, (see Philadelphia, Pa.) American Society for Testing Materials: — Annual meeting, 35 Anderson, Ind,: — Llnion Traction Co.: Rehabilitating track joints with an arc welder, *S3 Receiver requested, 700; Receiver denied. Appraisal of Railway Property: — Comments on. bv A. E. R. A., r44 — Companies should know value of properties. Comments on, 883 — Diseussed before Federal Electric Railways Commission. rlO.3 — Economics and equity in valuation [Cooke], 911 — International Ry.. Buffalo. N. Y.. 90 . — Inventorying materials and supplies [Yung- bluth]. 'SIS — Pittsburgh Rys., 400. 436, 1017 — Principles of valuation stated b,v A, E. R. A,. 333 — Reproduction cost method. Diseussion of. 208 — Valuation and accruing depreciation [Kealy], .530 — Valuation of electric railway properties [Tay- lor], 128 — Valuation to be determined by disinterested body [Sidl], rl39 Argentine : — An'rlo-Argentine Tramway, Ltd,: Earnings, 453 Ashes : — Handling bv steam conveyor vs. manual labor, 30 — Losses due to combustible in refuse, •1006 Atlanta, Ga. : — Georgia Ry. & Pr. Co.: Considers one man cars, 961 B Auburn, N, Y,: — Auburn & S,vracuse Elec. R.R.: Pare situation, 546 Auditing ; — Detroit, Mich,, situation, 698 Aurora, 111.: — Aurora. Elgin & Chicago R.R,: Receivership, 409 Australia: — Brisbane, Graduated fare system [Badger], •481 — Melbourne lines prosperous, 954 — Melbourne Suburban Railwa,vs electrified, ^903 — Prineiple of differential wages in awards [Pringlel, •c943 — Zone fare system [Jackson], 434 Axles : — Reclaiming worn motor axle bearings, 505 — Repairing worn axle collars Vj.v welding, 83 — Standard design of [Chancel, 933 Baltimore, Md, : — United Rys, & Elec. Co.: Car vestibuling, 933 Fare increase granted, 736 Wage increase, 407 — Wa,shington, Baltimore & Annapolis Electric R,R,: Revenues jumped 86 per cent, 138 Bay State Street Ry. (see Boston, Mass,) Bearings : — Bearing jig for locating dowel pin holes, 390 — Insunjig prooer fits [Dean], 759 — Reclaiming worn motor axle bearings, •565 — Standard design of journals and journal bear- ing keys [Chance], 933 — Standardizations discussed by American Elec- tric Railway Engineering Assn,, •r77 Beaver Valley Traction Co, (see New Brighton, Pa,) Belgium : — Electrification proposals [McCallum], 474 Berk,shire Street Ry. (.see Pittsfield, Mass.) Binghamton, N. Y,: — Binghamton Ry.: Fare increase barred, 957 Birmingham, Ala.: — Birmingham Rv.. T;t. & Pr, Co,: One man cars, 1064 Wage increase and eight-hour day sought, 351 Boston, Mass.: — Bay State Street Ry. (see Eastern Massachu- setts Street Ry.) — Boston Elevated Ry.: Boveott and strike follow increase in fare, 198 Eight hour day and wage increase grant- ed, 190 Fare situation, *547 Financial statement for ,Tnne. 397 Investigation by special commission, 445 Plans for operation without telephones [Danal, '33 Statement for quarter ending Sept. 30, 733 Strike of car men, 134 Ten-<'ent fare, 4.5 ... — Comparison of investments in transit facilities Philadelphia and Boston. 1001 — Eastern Massachusetts Street Ry. : Commutation ticket, 077 Declares war on jitneys 593 Fare collection register. Hearing on, 413 Fare collection hand register prohibited for open ears, 598 Fare increase, 44 Monthly tickets, 600 Program with 100 one-man cars, 733 Report of operation by Board of Trustees, r90 Resumes service in Lawrence, 948, 1056 Service to cease in Lawrence unless jitney curbed. 877 Strikes threatened, 538 Transporting shipyard workers at Quincy [Conant], •Ol — Former Commissioner Eastman testifies, 591 — Middlesex & Boston Street Ry,; Ten-cent fare, .303 — Motor bus service proposed. 456 — Policemen's strike. Comments on, 553 Brakes and Compressors: — Causes of brakeshoe wear, *938 — One man car used by Brooklyn Rapid Transit Co.. ^786 — Portable air compressor. ^930 — Regenerative brakins- with single-phase com- mutator motors, *910 — Standard design of brakeshies, brakeshoe heads and keys [Chancel, 931 — Standardiz.atinn of brakeshoes discussed by A. E. R. E. A„ r79 — Troubles, *340 Braking: , . , , — Transference of load m cars while braking [Burke], ^750 Brazil : — Brazihan Traction, Lt. & Pr. Co.: Income account for 1918, 596 British Traction Co. (see Great Britain) Brockton & Plymouth Street Ry, (see Plymouth, Mass, ) Brooklyn, N, Y.; — Brooklyn City Ry. : Extra fare charge abandoned, 963 Problem of deficit, 951 Stock, Condition of, 805 — Brooklyn Rapid Transit Co,: Certificates offered, 451 Eight cent fare recommended by Stone & Webster, 843 Electrically heated oven installed, • i-tb One-man cars. Details. *7S4 Receiver appointed, 138 Rentals in default, 676 Situation of security holders, 955 Strike unhistifiable, 367 Strike, 395 Strike settled, 353 Surface lines segregated, 737 Transfer case, 876 Two-cent transfer authorized. 199 Buffalo, N, Y,: — International Ry.: Appraisal of railway property, 90 Fare increase situation, 456. 598 Court of Appeals decides PubUc Service Commission can raise rates. 143 Public Service Commission grants fare in- crease. 876 Publicity campaign. 36 Buildings and Structures: — Discussed by A. E, B,. E, A,. r78 . — Standardization of [Cram], 567 Abbreviations: •Illustrated, c Communication, r Page in Report Number for Oct. 11. READ THE INSTRUCTIONS AT THE BEGINNING OP THE INDEX IV INDEX [Vol. 54 Camden, N. J.: , , , , , View of the New Jersey zone plan [Bleakly J, 1-126 Capitalization: „, , ■ „ •, Discussed before Federal Electric Railways Commission, rl02 , , ■ — Recapitulation, Comments on [Becker], rl26 Capital Traction Co. (see Washington, D. C.) Car Construction: , . ^ i. Fabrication of cars in Detroit United shops, •863. *920 — Light weight: Tendencies toward, 105 — Making over open cars for prepayment fare collection, '113 — Standard units, Comments on, 465 — Steel pilots for all year service, *939 Car Design : ■ — Car weight. Comments on, 883 — Car weight reduced 50 per cent [Dehorel, •915 — Changes in Kansas City Safety car design, *998 — Construction features of Detroit cars, '863; 930 — Double-end pay-as-you-pass cars, *83 — Interchangeable roofs on Detroit cars, *863 — Italian car design experience, •909 — London, England, Metropolitan District Rail- way's cars, '345 — Longitudinal seats vs. cross seats. Comments on, 423 — Motor car used for subway operation in Madrid, Spain, '21 — One man cars used by Brooklyn Rapid Transit Co,, ^784 — Spring operated trap door lift, 1046 — Transference of load when braking [Burke], •750 Carhouses and Storage Yards: — Chemical fire protection for the car-storage yard, ^753 — ^Protection from fire. Comments on, 815 Cars: — One man: Adaptability to zone fare system, 162 Advocated by Beeler, 538 Atlanta, Ga., Considered, 961 Birmingham. Ala., 1064 Change boards, ^342 Cl:inn agents e.xperience [Dixon], 720; [Winsor). 721 Cost of maintenance. Comments on, 883 Davenport, la., earnings in [Roderick], 26 Details of cars used by Brooklyn Rapid Tran.sit Co., '784 Devices to speed up operation, 308 Discussed bv Amalgamated Assn., 762; A. E. R. T. & T. A., 1:54; Beeler, r, 124; C. E. R. A., ^63; 64; Greenland, 67. 68; Illinois Elec. Rys. Assn., 160; Iowa Elec. Ry. Assn., 762; Jackson, rll7; Kealy, r31; Moore, 131; Thirlwall, 233; Walker, 101, 662; Wells, r36, 983 Earnnigs in various localities [Wells] 983 Exprriences in Virginia. ^430 Greater safety with less labor, 53 Kansas City : Change in design, •998 Successful [Kealy], r31 Labor, Comments on, 370 Los Angeles, Cal,, Advised by commission, 959 Mirror for interior view. 348 Moving picture film to illustrate operation, •667 Negro problem solved in Richmond, 842 Objection answered [Wells], 983 One hundred ears ordered by Eastern Mas- sachusetts Street Ry.. 732 Operation discussed by A. E. R. T. & T. A., r58 Race segregation not found difficult in Raleigh. N. C, 877 San Diego, Cal., Urged by Commission, 961 Service and jitney competition [Cliflord], r35 Solution for many difficulties, 209 Standardization [Wells], r36 Standardization, Comments on 743 Stimulate summer riding, 153 Terre Haute. Results in [Walker]. 161 Cars: — British Electric Traction Co. cars, description of types [Jackson], *lo6 — Car speed and equipment in Great Britain [Jackson], 432 — Melbourne (Australia) Suburban Railways. •906 — Time of passenger interchange on double end vs. Peter Witt cars [Sullivan]. •656 — Types used in Portland. Me., •623 — (See Work and Wrecking Cars.) Carolina Pr. & Lt. Co. (see Raleigh, N. C.) ■ Central Electric Ry. Assn : — Boat trip. 1 — Pall meeting, ^989, 1039 — Summer convention, 25 — Summer cruise, *63 Central Metropolitan Railway of Madrid (see Spain ) . Charleston. W. Va. : — Charleston Interurban R.R.: Fare increase sought, 678, 1393 Chicago, 111, : ' — Chicago Elevated Ry.: Coasting results [Johnson], '277 Chemical fire protection for the car-storage yard, '753 Communication to Federal Electric Railways Commission, e236 Chicago, 111. (Continued) : — Engineers report on earnings. 1016 Improved lubrication with changed motor axle boxes, •757 Lines tied up by strike, 249 Strike settled, •293 Wage and fare increase situation, 134, 189, 360 — Chicago, Milwaultee and St. Paul Ry.: Cascade electrification. Comments on, 783, 815 Locomotive tested, •827 Watt-hour meter. Duplex dial, •403 — Chicago Surface Lines : Commission orders reduced rate, 958 Commission refuses to suspend 7-cent fare, 842 Fare increase showing returns, 700 Lines tied up by strike, 349 Strike settled. •293 Valuation filed, 542 Wage and fare increase situation, 134, 189, 361, 7.38 — Fares in Chicago, Cleveland and Philadelphia compared [Busby], 795 — Municipal ownership urged by mayor, 535, 769 — Public takes an interest in wage increase, 207 Cincinnati, O. : — Cincinnati & Columbus Traction Co. abandons lines, 496 — Cincinnati, Lawrenceburg & Aurora Electric Street Ry.: Cutting down operating expenses [Dehore], •915 — Cincinnati Traction Co.: Elements of franchise [Draper]. 'rlS — Ohio Elec. Ry.: Awarded judgment, 772 Circuit Breakers: — Erratic setting, 749 — Open air exhaust, ^487 Cities Service Co. (see New York City) City planning: —Effect of fares on discussed by Dr. Whitten, 831 Claim adjustment (see Accident Claim Depart- ment). Cleveland, O. : — Cleveland and Youngstown R.R.: Inspected by Cleveland Engineering Society, 590 - — Cleveland Railway Co. : Arbitration increase dividend, 1018 Disposal of new issue of stock, 104 Operating statistics compared with Phila- delphia and Milwaukee, 1918, rllO Service-at-cost plan. Operation of, 172 Wage dispute, 38, 85 Elements in a satisfactory substation build- ing [Lloyd], ^833 — Pares in Chicago. Cleveland and Philadelphia compared [Busby], 795 — Lake Shore Electric Railway System: Income statement and operating statistics, 1917-1918, 543 — Public Service Commission : Comments on railway situation, •383 — Railway situation discussed by Sect'y Baker, 339 — Rapid transit report, '71 — Transit plans for future traffic, 1013, 1054 Coal: — Arrangements made for coal supply, 768 — Consumers urged to stock coal, 204 — Cofiveyor at New Haven Power Station [Wood], ^312 — Economical handling of (Finn.), 1047 — Plan to combat coal famine. Comments on, 968 — Prices up, quality dovni [Emery], '396 Columbia, S. C. ; — Columbia Railway, Gas & Elec. Co.: Fare and wage increase, 142 Offers to sell to the city, 946 Columbus, O. : — Columbus Ry., Pr. & Lt. Co.: Fare increase defeated, 414 Strike settled, 535 Commutator Slotter: — Device, *347 — Device for use with double-spindle lathe, •578 Competition : — Are high costs of service likely to develop permanent competition [Palmer], r9 Compressors (see Brakes and Compressors). Concrete : — Use of fine-grained sand, 760 Connecticut : - — Connecticut Public UtiUties Commission: Comments on railway situation, 333 Report. 592 Connecticut Co. (see New Haven, Conn.) Constabulary : — London buses special constabulary [Jaskson], •831 Contracts for Joint Use of Track: — Obligations discussed by T. & T. Assn., r66 Controllers: — Troubles, .341, ^577 Cost of Living: — Changes 1914-1919, 438 Couplers : — Standard design of automatic couplers [Chance], 931 — Swing of radial coupler on curves [Seelar], •488 Credit : — Discussed before Federal Electric Railways Commission, r9T, rll2 Cumberland County Pr. & Lt. Co. (see Portland. Me.) D Dallas, Tex.: ■ — ^Dallas Ry. : First surplus under service-at-cost franchise, 1019 Municipal ownership recommended, 291 Sei-vice-at-cost plan, Operation, 173, 430, 713; deficit, 952 Davenport, la. : — Clinton. Davenport & Muscatine Ry. : Officials arrested for suspending service, 674 — Tri-City Ry. : Earnings of safety cars [Roderick], 36 Fare increase situation, 86, 93, 413 Strike settled, 352 Tie nipper for reducing spiking difficulties, •891 Denver, Col.: — Denver Tramway Co.: City to regrant temporary six-cent fare, 139 Fare collection [Doty], 40 Fare situation, 95 Mayor signs six-cent fare ordinance, 871 Traction issues at special election defeated, 730 — Fare situation. Comments on, 781 — Referendum a failure in deciding fare situa- tion, 814 Depi-eciation : — Accounting for depreciation [Jirgal], 799 • — Accrued depreciation discussed by valuation committee. 324 — Comments by former Commissioner Eastman, 591 — Valuation and accruing depreciation [Kealy], 530 Des Moines, la.: — Des Moines City Ry. : Adjuster for gear-case cover springs, *566 Fare and wage situation, 354 Open air exhaust for circuit breakers, '487 Portable rivet heater, ^488 Reclaiming worn motor axle bearings, '565 Strike settled, 446 — Inter-Urban R.v, : Car maintenance records facilitate work [McMahon], 'lig Detroit, Mich.: — Bond issue urged, 1054 — Council upholds Mayor's opposition to service- at-eost. 1013 — Council wishes to negotiate with Detroit United Ry.. 951 — Detroit United Ry. : Completing audit. 698 Construction features of new cars, •863 Fare increase, 360 Mechanical aids in handling fares, '317 Restrained from increasing fare, '736 Sei-vice.at-cost recommended by Board of Street Railway Commissioners, 730 Shop methods used in building cars, ^921 — Mayor disagrees with commission, 802 — Rejects Tayler plan of railway operation, 872 — Service-at-cost plan for fare arbitration, 84 — Subway situation, 248, 673, 699 District of Columbia; — District of Columbia Public Utilities Commis- sion : Comments on railway situation, 331 Education : — University endowment campaigns. Comments on, 684 Eastern Massachusetts Street Ry. (see Boston. Mass.) East St. Louis, 111. : — East St. Louis Ry.: Fare case valuation, 841 — Southern Traction Co. : Security holders seek redress, 953 Electrification (see Heavy Electric Traction) Empire State R.B. Corp. (see Syracuse, N. Y.) Employees : — Anti-strike bill killed in Mass., 1014 — Conductors point-of-view of car operating economy [Connely], 1042 — Conductors to be instructed by traveling agents in Los Angeles, Cal., 807 — Contracts with, discussed at Washington hearing, rlOO. — Co-operation in zone-fare system, Connecticut Co.. 857 — Co-operation of employee and employer. Com- ments on. 684 — Co-operation of the public, company and the men, 105 — Co-operation with company, London's buses [Jackson], •820 — Courtesy campaign started in Indianapolis, 877 — Dispatcher's view of car operation economies [Harris], 1044 — Effort of Twin City Rapid Transit Co. to make men citizens, •279 — Headquarters in Chicago, ^442 -^How a motorman can help in car operating economy [Sunderland!. 1042 — How the master mechanic looks at car oper- ating economy [Seullin], 1044 — Line seniority to continue in Kansas City (Mo.), 257 — London County Council Tramways shares coal saving with car operators, 214 — Operating department's training school, Loh- don's buses [Jackson], ^823 — Refuse ownership in Reading, Pa., 836 Abbreviations : *Illustrated, c Communication, r Page in Report Number for Oct. 11. READ THE INSTRUCTIONS AT THE BEGINNING OF THE INDEX July-December, 1919] INDEX ^C?lse„tLuon""i^"mkna.ement discussed by -Re^ScS' "^h^on of union contract in _Se?tiS a"Snsf union in Los An.eles. 493 —sirvic-e code in New Brighton.^ Pa., 503 Street inspeetor [Dana I, .17,- -Ti-aininK of welders Comments on, 968 Wasea extorted under threat. ^07 m t —Welfare work, Comments on, by T. & T. —W^mln' wkers, on electric railways dis- annearins in N'ew Tork City, 838 -Workin? hours of motormen and conductors in Philadelphia [Mitten], crllO — (See also Labor) Energy Checking- DeviX'es; =K':s£uTTn- S Britain and Ireland, .521 Watt-hour meter. Duplex dial, 'iO^i Enererv Consumption: rT„v„ —Coasting results on Chicasro Elevated [John- — Energy saJhig campaign. Springfield Street Ry., 34R , Light weight cars [Greenland], 68 —London County Council Trarawiys shares with employees saving in coal due to more effi- cient car operation, *314 — Safety cars [Roderick], Energy-Saving Devices: „ ^ , _ . —Comments on, by T. & T. 4ssn., r54 Co. ^Bendin? a'nd straightening social work, »569 Fairmont, W. Va.: — Monongahela Valley Tractic Fare increase. 144 , . , , Heavy freight service o^ a single-track, high-speed passenger lii^ r'-'-'-i —Car fan used by New Yoik Municipal Ry. Corp., ]009 Fare Box Vaults: — Safe for, •758 , Fare Collection: . I . Boston Mass., Hearing on R(bke register, 413 — Change boards on one-man crs '343 Collection and registration o fares discussed by T. & T. Assn., r61 Collection of zone fares [Kummerlin], r68 — Comments on [Nash], 651 —Comments on by A. E. R. T,& T. A., r54 — Comments on improvements, 706 Denver, Col., Methods [Dot], r40 — Discussed [Sullivan], '6 5.3^ Efficiency of fare box [Suuian], '655 Fare registering and ticketllssuing devices, •669 I — Great Britain [Jackson], 43g Hand register prohibited for>pen air cars m Mass., 598 Making over open cars for jirepayment fare collection, *113 [ — Mechanical aids in sortina and wrapping used by Detroit United RyJ*317 — Methods with frequent o&nges in rate [Doty], r40 — Milwaukee. Zone fare collec m. 'eie — Newark, N. J., Zone fare, '40 — Portland, Me., methods, •6! — Springfield. Mass., methods. '33 Systems compared at Wasligton hearings, •376 Ticket issuing machine for fare collection, •345 — Zone fare scheme in New J^ey, 383 Pare increases : 1 — Auburn, N. Y., situation, 5 — Baltimore, Md., granted, 736 — Binghamton, N. Y.. barred, ir — Boston. Mass.. situation, 44, i, 302. •547 — Boycott and strike follows f ; increase, 148 Brooklyn, N. Y., abandons e:'a fare charge, 963 — Buffalo, N. Y., situation. 14 ■Charleston. W. Va., sought, (J, 1066 456, 598. 876 61, 738, 843, Utilities Com- •468 — Chicago, 111., situation. 189, 958 — Columbia, S. C 143 — Columbus, 0., defeated. 414 — Connecticut. Report of Publ mission. 593 — Croydon. England, Effect of — Davenport. La., situation. 86 — Denver, Col., situation, 139. — Detroit, Mich., situation, 360 — St. Louis, Mo., situation, 50 — England. Leeds [Jackson] — Gary, Ind., granted, 875 — Great Britain, Effect of [Jaclii], 433 — Great Britain, London CouniCouncil, three section penny stage with rifractional fare tickets [Jackson], ^370 — Holland, 80-100 per cent incite during war, 315 — Kansas City, Kan.: Arbitra 776 — Eight-cent fare, 303 — Granted by Court, 957 — Massachusetts situation [Ma^d], 438 — Milwaukee, Wis.: Granted by Wisconsin Rail d Commission, 891 Seven cents. 808 — Muskegon, Mich., service stinded, 363 — Necessity discussed by Pennsjania Assn., 14 — Newark, N. J, History of recent fare incr|es, 383 Serven-cent flat rate, 1022 — New York City situation, 50646, 701, 738 ackson ] , 3. 412 SO. 871 36 599 recommend. Fare Increases (Continued) : — Norfolk, Va., six-cent fare sought, 301 — Omaha, Neb., 363 — Pennsylvania, Court sustains fare increase, 197 — Philadelphia, Pa., earnings, 167 — Pittsburg, Pa., earnings, 165 . — Pittsburg, Pa., on basis of valuation, 93 — Portland, Me., earnings, 166 — Portland Ore., Urged to save company from bankruptcy, 1031 — Providence, R. I., situation, 413, 703 — Quincy, 111., seven-cent fare, 96 — Racine, Wis., fare decision in abeyance, 843 — Results in several localities, 15 — Rochester, N. Y., fare decision stands, 737 — Roslyn, N. Y., situation, 738 — Saginaw, Mich., voters approve fare increase, 776 — St. Joseph, Mo., 1031 — Sherbrooke, Can., People vote favorably, 677 — Sought, 776 — Syracuse, N. Y., 143 — Value of good service, 1 — Vancouver, Can., situation, 600 — Washington, D. C, situation, 142, 736 — Waverly, N. Y., seven cents granted by P. S. C, 197 — West Virginia, situation, 645 Fare increases. Reasons for: — Assets must be consei"ved [Sailers], r38 — Comments [Storrs], 176 — Credit and cost of capital [Sisson], 178 — More passengers better than too high fares [Thomas], c737 — Politicians try to befog the issue, 510 — Ten-cent fare. 303 Fares: — Adjustment of charges [Jackson], 436 — Basis for fares, 15 — Can service costs be collected from traveUng public? [Mortimer], •rl4 — Comments on [Becker], rl24 — Comments on fare question [Hedges], •r8 — Commutation tickets in Pall River, Mass., 677 — Continuance of 5-cent fare in Philadelphia [Mitten], crlll — Des Moines, la., situation, 355 — Effect of changes in fare scheme [Mortimer], rl6 — Effect of dead capital on, *1001 — Effect of ten-cent and seven-cent fares dis- cussed before Federal Electric Railways Commission, 3.39 — Fare scheme must keep traffic cream, 465 — Increased fare movement : Consumer must pay the cost. Discussed by Central Electric Railway Assn.. 65 — Motor bus fares in London, England [Jack- son], '708 — New York State, Reports from different cities, 689 — One dollar weekly pass In Racine, 503 — Pennsylvania Commission says public must understand service versus revenues, 369 — Philadelphia & Milwaukee situation discussed before Federal Electric Railways Commis- sion by Mr. Mortimer, rl08 — Plans suggested before Federal Electric Rail- ways Commission. 3.37 — Political issue in Massachusetts, 769 — Public pay deficits by taxation [Maeleod], 439 — Public Service Railway (see Newark, N. J.) — ^Pyschological vs. mathematical means of in- creasing receipts. 949 — Questionnaire of Federal Electric Railways Commission, 673 — Readiness-to-serve system [Nash], ^647 — Rush-hour vs. oft-liour passenger, c349 — Sell transportation in small quantities, 389 — Views on fare question, 960 — Tickets used b.v British Electric Traction Co. increase travel [Jackson]. •155 — Unit fares discourage short hauls [Jackson], 393 — Wage and rate problems inter-dependent, 369 — Zone fares (see zone fare systems) Fares. Analysis of Cost: — Comments on [N'ash], 647 — Comparisons based on insuflJcient data are useless, 851 — Discussion before Federal Electric Railways Commission, 163, 165, 338 — Eight-cent fare recommended for Brooklyn, N. Y.. 843 — Estimates of Wisconsin Railroad Commission, 891, 893 — Fares in Chicago, Cleveland and Philadelphia compared [Busby], 796 — Five-cent fare may be possible by reducing certain operating costs [ Rifenberick ] , (36 — Five cents will pay for only a five-cent ride, 783 — Flat fare system summarized, 610 — Flat rate vs. zone fare from city planning standpoint, 831 — Net result of the 5-cent fare [Bibbinsl. *570 — Phil.Tdelphi,a conditions anal.vzed, '999 — Pre-war conditions versus today [Doolittle], r9 — Public utility rates discussed by National Association of Railway and Utilities Com- missioners. 826 — Synchronizing revenues with wage increases in Wisconsin, 967 — Ten cent fare necessary In Pittsburgh, 257 Federal Electric Railways Commission : — Appointment, comments, 103 — Comments on hearings, rl, 153. 311. 369 — Communication from Chicago Elevated Rall- w,a.vs in regard to electric railways, c236 — Communication from T. E. Mitten, crlll ■ — Communication from Thos. A. Edison in re- gard to electric railways. c229 — Correspondence on Washington Testimony, 907 Federal Electric Railways Commission (Cont.) : — Facts that should be brought out [Ainey], — Hearings from July 15 to July 18, ^124 — Hearings. July 17-33, '163 — Hearings, July 33-25, 238 — Hciirings, Aug. 11-Aug. 19. 329 — Hearings, Aug. 13-Aug. 15, '374 — Hearings, final •r93 — Oigauization and plans, 20 — President expresses opinion on hearings be- fore, 240 — Questionnaire, 573 — Statistics, Distribution of capital stock, 438 — Statistics on electric railway industry, •181 — Summary of electric railways case, 284 Financial : — Benefits of a consolidated system not always appreciated, 707 — Cost of financing discussed in Pittsburgh valuation report, 437 — Credit and cost of capital [Sisson], 178 — Depreciation of electric railway dollar. 868 — Effect of dead capital on fare. *1001 — Pair return on railway properties [Bemis], rl36 — Fmancing problems in New York discussed be- fore Federal Electric Railways Commission. 235 — Financing under different forms of franchise [Erickson], 243 — First cost. Central Metropolitan Railway of Madrid, Spain, 22 — Income statement of electric railways 1917- 1918, 181 — Investment Bankers Association discusses railway problems, 797 — Milwaukee sells $3,600,000 of notes at home, 734 — Need for large capital. Comments on, 180 — Organization and capitalization questionnaire of Federal Electric Railways Commission, 573 — Purchase of money. Federal Electric Railways Commission, ^164 — Purchase ol one-man cars, car trust certifi- eates for [Greenland]. 69 — Railway securities situation. 171 — Simplification of corporate structures [Cooke], •858 — Shrmkage of the nickel 1913 to 1919 [Burke]. 513 — Townspeople as stockholders, 371 — Watered stock for widows untenable [Ainey], 388 Fire Insurance : — Philadelphia methods described to Federal Electric Railways Commission, r94 Fire Protective Apparatus: — Annunciators for fire sprinkler system, '937 — Chemical engines on Chicago Elevated, ^763 — Protecting car storage yai'd. Comments on, 815 Fort Wayne, Ind. : — Fort Wayne & Northern Indiana Traction Co.: Foreclosure sale planned, 450 France : — Electrification of railways, 867 — Electrification proposals [McCallum], 474 — Midi Ry.: Progress on electric Une across the Pyrenees mountains [Pahin], ^476 — Paris Tramways : Conditions during war, 486 Franchises : — City and railway partneiship. Different In- terests, 311 — City representation in electric railways [Woods], 736 — Cleveland, O., Comments on, by Secretary Baker, 339 — Compared in Chicago, Cleveland and Philadel- phia [Busby], 796 —Denver, Col., situation, 781 — Fi-anchise rates are legislative and not con- tractual [Chamberlain]. 28 — Franchise tax waived in Providence, R. I., 702 — Inflexible franchise bad. Testimony before Federal Electric Railw.ays Commis.sion, 284 — ^License tax. Request remission, 397 — Michigan law governing, 593 — Minneapolis franchise draft, 251 — Norfolk, Va.. offers new franchise, 870 — Pavement cost and maintenance. Comments on [Storrs], 176 — Service-at-cost : Advaiitag:es [Erickson]. 244 Can service costs be collected from travel- ing public [Mortimer], rl4 Cincinnati francMse [Draper], *rl8 Cleveland, O., Operation in, 172 Contracts explained. 174 Controlled by city but operated service-at- eost [Sidlo]. rl39 Dallas. Tex. Operation In, 173 First surplus. 1019 Denver, Col., considered. 139 Detroit. Mich., situation, 84. 730, 1013 Economical operation. Comments on [Draper], 177 Federal Electric Railway Commission. 169, 171, 233 Minneapolis, 636. 690. 1013 Montreal franchise [Hutcheson], •r24 Paducah. Ky. 447 Pittsburgh, Pa., recommended, 437 Plan [Culkins], 79 Questionnaire of Federal Electric Railways Commission. .574 Report on by A. E. R. A. r47 — Youngstown franchise [Stevens], *r21 — Seeks new franchise. 248 — Subsidies recommended by receiver of Rhode Island Co., 436 — Toledo Rys. & Lt. Co., ousted, 801 — Toledo. O,, Ouster ordinance, 446, 973 Abbrdtlons: •lUuBtrated. o Communication, r Page In Report Number for Oct. 11. READ THE INSTRUCTIONS AT THE BEGINNING OP THE INDEX VI INDEX [Vol. 54 Freight and Express: — Compensation lor use of foreig-n track dis- cussed by A. E. R. T. & T. A., r66 — Electric railway express discussed by C. E. R. A.. 989 , — Handling^ the freight business I Stanton], 982 — Heavy freight service on a single track, high- speed passenger line [Cole], •806 — Interurbau express [NiehoUJ, 993 — Obstacles to electric express, 996 — Possibilities of electric railway express serv- ice [Munton], 993 — Possibilities of express business [Vaughn] 99/ — Possibilities of electric express service [Star- key], 995 Fuel: — Cost analysis discussed by American Electric Railway Engmeering Assn.. *75 Gary, Ind. : — Gary Street Ry.: Double-end pay-as-you-pass cars. *83 Fare increase granted, 875 Gasoline vs. Electric Motor for Street Railway Service [Storer], r27 Gears and Pinions : — Adjuster for gear-ease springs. '566 — Gear cases electrically welded, '942 — Heheal gearing discussed by A. E. R. E. A., r82 — Helical gearing for railway motors [Phillips]. •934 — Providing proper fit [Dean], 759 — Putting on motor pinions discussed by Ameri- can Gear Manufacturers Assn., •889 — Reiiitor<-ed su-spension for sheet steel gear cases. •1004 — Troubles, 577 , ^.^ ^ General Gas & Elec. Co. (see New York City) Georgia Ry. & Pr. Co. (see Atlanta, Ga.) Girardville, Pa. : -Schuylkill Ry.: . . Fare increase approved by commission. 44 Grafton, W. Va.: — Grafton Lt. & Pr. Co.: Mav be included in merger, 772 Properties taken over by Potomac-Edison Gas & Pr. Co., 1019. Proposal of sale, 409 — Grafton Traction Co.: May be included in merger, 772 Properties t:iken over by Potomae-Edison Gas & Pr. Co., 1019. Proposal of sale, 409 Grade Indicator: — Effective homemade indicator [Harte], •933 Grand Rapids. Mich: - — American PubUc Utility Co.: Earnings 1918-1919. 451 Grand Trunk Ry. (see Stratford. Can.) Great Britain : — British Electric Traction Co. zone fare sys- tems [Jackson], •ISS , -on — British tramway conditions [Madgen], 439 — Crovdon, Fare Practice in, •476 — Edinburgh Corporation Tramways: Resourcclulness during coal strike, 1034 — Energy-saving instruments, practice with. •521 — Electrification j.roposals [McCallum], 474 —Electricity supply bill, 35 — Fare practice [Jackson], 341 . — Glasgow Municipal Tramways: Statistics. tr.afBc. revenues, capitaliz.ation, 1918, 'Si 6 — ^Deeds Zone system in [Jackson], *7, '66 — Sheffield Corporation Tramways and Motors: Results of motor omnibus service, 865 — West Ham Corporation Tramways: Telephone control system, '397 England (see Great Britain and London) Guelph, Can,: — Grand River Ry.: . . Citizens vote against agreement with city, 535 H IlUnois Electric Railways Assn.: — Summer meeting, 159 Illinois Traction System (see Peoria, 111.) Indiana: — Assessments of all railways. 42 — Indiana Public Service Commission: Comments on railway situation. 334 Indiana Rys. & Lt. Co. (see Kokoma, Ind.) Indianapolis, Ind. : — Indianapolis Street Ry.: Courtesy campaign started. 877 Merger with IniJianapolis Traction & Termi- nal Co. approved. 42, 91, 500 Sept. 1 dividend postponed, 497 — Indianapolis Traction & Terminal Co.: Merger with Indianapolis Street Railway approved, 91, 500 Induction Regulator : — Experiences with [Wensley], '887 International Railway (see Buffalo, N. Y.) Inter-professional Council : — Conference planned, 801 Interstate Commerce Commission : — Hearings on mail pay concluded, 286 — Mail pay hearings, 1002 Inventories : — Inventorying materials and supplies [Yung- bluth], •SIS Investment Bankers Association of America: — Annual convention. 797 Iowa: — Regulating rates [Chamberlain], 28 Iowa Elec. Ry. Assn.: —Committee meeting, 328 — Midyear meeting, 541, 587, 761 Italy: — Italian car design experience, *909 — For handling railway equipment, 686 Japan : — Imperial Government Rys.: — Electric railway transportation. Practices and tendencies [Sano], ^4 Electrification favored. 516 Joint Use of Tracks & Terminals: — Discussed by A. E R. T. & T. A.. r64 Heavy Electric Traction: - — Advance in Sweden. 225 — Comparison in America and Europe by French Commission. 834 — Discussed hv N. Y. R.R. Club. 918 — Electrification of French railways, 857 — European proposals [McCallum], '474 — ^Japan, Favored, 515 — Progress on the Midi Railway across Pyrenees mountains [Pahln], •475 , . ,. Status of Swiss electrification [Ateliers de Construction Oerlikonl. c696 — Status in Switzerland, 227 ■ — Switzerland, war time progress, 486 Heaters : — Hot blast forced-ventilation heater. '290 One man car used by Brooklyn Rapid Tran- sit Co.. *789 ^. , , High-tension Lines (see Power Distribution and Transmission Lines) Holland: Railways and Tramways. DifBeulties during war " Interview with H. F. Adams. 215 Housing Conditions in Leeds, England [Ja<;k- son], *7 Houston. Tex: . ... mirr Houston Elec. Co.. Valuation situation. 1017 Illinois: — Public Utilities Commission: Supreme Court upholds in fare question. 1064 K Kansas : — Public Utilities Commission, Permits refund- ing of bonded and other indebtedness. 194 Kansas City. Mo.: . . — Court grants 2% cent a mile rate, enjoining commission, 957 — Kansas City. Clay County & St. Joseph Ry,: Employees request cancellation of union contract, 536 — Kansas City Rys.: Abuse of transfers, 361 Arbitrators recommend fare increase, 77b Changes in safety car design, ^998 Eight-*nt fare, 303 Line seniority to continue, 257 One man car successful [Kealy], r31 President gives dinner to directors and of- ficials, 870 Prospects greatly improved, 1016 Service not fares zoned in, 362 Supreme Court upholds commission. 959 Ticket situation, 775, 875 , , „ , Traffic changes suggested by J. A. Beeier, 1064 Transfers. Triplicate. •401 Wage increase sought, 136 Kokomo, Ind. : — Indiana Rys. & Lt. Co.: Air-operated tower for line cars. Safe for fare box. •758 Stockroom records and practice, — Missouri & Kansas Interurban Ry.: Refunding permitted by Kansas UtiUties Commission, 194 Legal (Continued) : — Joint use of tracks and terminals discussed by A. E. R. T. & T. A.. r64 — Legal notes, 458, — Legislation slow in New York [Choate], 690 — Massachusetts provides act for investigation of electric railways. 250 — Nebraslta court decides railway must have adequate temporary rate pending appraisal. 199 — Pennsylvania, Court sustains fare increase, 197 — Prospective legislation on electric railways in Massachusetts, 698 — Proposed legislation on electric railways, 838 — .Referendum a failure in deciding economic questions, 814 — Toledo mayor dispossesses Toledo Rys. & Lt. Co.. 133 — Transit legislation to be considered in New York, 1055 Lighting : — Detroit cars. •8()4 — Electric lights to replace oil tail lights, ^939 — Portable foot-candle meter, ^940 — Portable utility Ught, •940 Locomotives : — Midi Railway electric locomotives, character- istics [Pahin], •476 — Modern electric loc omotives discussed by N. Y. R.R. Clab, 918 — St. Paul cascade electrification. Comments on. 782. 815 London : — London buses carry large proportion of Lon- don traffic [Beaumont], c727 — London Count} Council, Zone fare systems [Jackson], '210, •2-0 — London County Council Tramways: More passenfers better than too-high farea [Thomas], o"'27 — London Electri- Ry. : Coasting reccrds, 526 — London letter, 34, 247, 490, 697. 729 — London's tubes and buses [Jackson], *708- •816 - — Metropolitan Estrict Ry. : Car design, 345 — St. Paul loconotive tested, •827 Los Angeles, Cal: — Los Angeles R. Corp.: Commission idvises one man cars. 959 Wage increae, 251 — Pacific Elec. ly. : Conductors o be instructed by traveling agents, 87 Improving rounds a proflable investment [Elliott], 'ei? Normal series resumed, 493 Substations, Fireproof construction [El- liott], 48 Unusual m(hod for moving two 250-hp. boilers [lliott], '123 Wage inereje, 251 Louisville. Ky. : — Louisville & Iterurban Ry.: Reduction c suburban rates, 95 Lubrication : — Improved wit changed motor axle boxes. •757 •794 '861 Public Labor: — Comments on [Sidlo], rl30 — Co-operative welfare vs. collective bargain- ing. Comments on [Weston]. 529 — Discussed before Federal Electric Railways Commission. r98. rl03, rl07. rl08 — Eflect of shortage on maintenance during war [Phillips], 19 — Eight hour day. Comments on. 510 — Labor aspect discussed before Federal Elec- tric Railways Commission. 238 — Labor's contribution to solution of railway problem. 705 — Organized labor, what it can do, 511 - — Philadelphia conditions described before Fed- eral Electric Railways Commission. r94 — Statistics on labor and Uving conditions [Emery]. •.394 — Superfluous labor on two man cars 370 — Union methods discussed before Federal Elec- tric Railways Commission, rl07 (See also Employee) Lawrence, Mass. : — Railway service restored. 948. 1056 — Service to be suspended unless jitneys are curbed, 877 Legal : ^ m -r — Bill Introduced to abolish Department ol In- terior and substitute Department of Pub- lic Works, 38 . _, — Federal legislation. Report on. American Elec. Ry. Assn., r46 M Mahoning & Senango Ry. & Lt. Co. (see Youngston.O.) Mail: — Committee oi mail pay meets, 444 — Compensation Report of American filec. Ry. Assn.. r46 — Hearings on ail pay, 386 — Mail pay heangs before Interstate Commerce Commissioi 1002 — Postal zone w attacked by Senator Capper, 692 Maine: — Public Utiliti Commission orders zone fares, •622 Maintenance Dieulties During War [Phillips], 19 Maintenance Rords and Costs: — Cost of one an car maintenance. Comments on, 883 — Estimates ofVisconsin Railroad Commission. 892 — Repair shop jrms used in Des Moines [Me- Mahon]. 19 Management : —Cooperation ith merchant to develop trans- portation, omments on, 969 — Discussed bire Federal Electric Railways Commissio rl06 — Discouraged ailway official. Comments on [ Johnson]c44.3 — Manager shol mix with ear riders. 153 — Morale aftecl by adverse conditions [John- son], 289 — Officials aiT'ed in Davenport, la., for sus- pending srice, 674 — Promoting operation of directors and of- ficials. Kaas City, Mo.. 870 — Simplificatio of corporate structures [Cooke]. 58 Market Condits: — Aluminum. 1 — Bond testerf965 — Carbon bruf outlook promising, 811 — Car equipmf 811 — Coal. 964. '26 — Coal strike iditions on Nov. 8. 811 — Copper and ass. 50. 306, 506 — Copper prods advancing. 148 — Cotton and k. 306 — Cotton and ste, 506 — ^Cross arm a pin orders. 604 — Difficulty osecuring supplies during war [Phillips] 9 — Door and st control market active. 741 — Effect of ren of steam roads. 879 Abbreviations: •Illustrated, c Communication, r Page in ReportNumberfoict.il READ THE INSTRUCTIONS AT THE BEGINNING OF THE INDEX July-December, 1919] INDEX VII Market Coiiditiojis (Continued) : — Fare device sales, tiS'Z —Glass, 100, (3852, 965, 1026 — Hand brakes, 96i — Heaters, ,50, O.'iO. 741 — High tension insulators, 306, 366 — Insulating materials, 148, 840 - — Iron culvert, 06,5 — Jacks, Sales increasing, 704 — Malleable iron delivery uncertain, 741 — Metals, 51, 149, !J64, 367, 607, 606, 1068 — Overhead fare recorder, 506 —Paints and varnishes, 417, 779 — Pole market fair, 779 — Brake shoe demand heavy. 779 - — Power saving devices. Sales, 682 — "Price at delivery" policy, 604 — Rails, 100. 366, 604 — Railway accessories and supplies, 51, 149, 264, 367, 507, 605 — Railway motors, 263 — Rubber covered wire, 879 — Sanitary hand straps, 417 — Scrap iron and steel. 879, 965 — Shop machinery. 460 — Sleet cutter sales increase, 964 — Snow plow deliveries thirty days, 846 — South American, 50 — Steam-ttirbines, 306 — Steel pole and tower, 204 — Steel and iron products, 263 — Steel, Electrical sheet, 551, 1026 — Steel situation, 704, 879, 846 — Ties, 417, 1068 — Tie tamping tools, 964 — Tool specialties. 506 ■ — Track brooms. 96,5 — Track tools, 879, 846, 1026 — Trolley wire, 1068 — Uniforms, insignia and equipment. 366 — Used equipment sales. 604 — Water wheels, 551 — Wire and cable, 460 • — Wood tie reservations, 1068 Manufacturers : — Report on, by American Elec. Ry. Assn., r47 Massachusetts : — Anti-strike bill killed. 1014. 1030 — Board of trustees report to Federal Electric Railways Commission, r96 — Fares a political issue. 769 — Fare situation, 311 — Fare situation [Macleod], 428 — ^Investigating Commission on electric railways: Appointment, 250 Boston Elevated Ry. investigated. 445 Electric railway essential, 538 Report on railway situation. 871 — Legislative solution of troubles [Macleod], 429 — ^Prospective legislation on electric railways, 698, 838 — ^Proposed measures against strikes, 873 — Public Service Commission: Public ownership a means of restoring credit [Macleod], 437 — Temporary subsidies favored, 673 — Wage increase. Effect of, 354 Master Car Buildens Assn.: — Equipment standards of [Chance], 931 Metal Tickets (see Tickets) Michigan : — Regulative commission for all public utilities provided, 591 Middlesex & Boston Street Ry, (see Boston, Mass.) Milwaukee. Wis.: — Fares increased by Wisconsin Railroad Com- mission, 891 — Milwaukee Elec. Ry. & Lt. Co.: Notes sold at home. 734 Operating statistics compared with Cleve- land and Philadelphia 1918, rllO Sells direct to investor, 497 Thermit-welded crossings are long lived, •1008 Wage increase and eight-hour day sought, .351 Weekly pass in Racine. 502 Zone fare system. *613, 808 — Milwaukee Light, Heat & Traction Co.: Fare decision, 843, 891 Minneapolis, Minn.: — Minneapolis Street Ry.: Accepts franchise, 580 Franchise defeated, 1013 Franchise draft, 251 Service-at-cost defeated by people, 1013 — Twin City Rapid Transit Co.: Educational publicity, *400 Face plates for straightening and bending special work, '559 Making American citizens, *279 Serviee-at-cost franchise to be voted on. 536 Spring switches and crossovers made from standard trolley frogs, *566 Tower trucks and cars, *121 Missouri & Kansas Interurban Ry. (see Kansas City, Mo.) Monetary Standard: — Described by Prof. Fisher at Washington hearing. •381 Monongahela Valley Traction Co. (see Fairmont, W. Va.) Montgomery. Ala.: — Montgomery Light and Traction Co.: Report of receiver, 358 Montreal, Can.: — Montreal Tramways: Franchise, Essential features [Hutcheson], •r24 Statement 1918-1919, 840 Motor Buses: — Baltimore, Results of operation [Palmer], rl2 — Boston, Mass., Service proposed, 456 — Carry large proportion of London traffic [Beaumont], c727 — Comments on, 553, 1030 Motor Buses (Continued) : . — Comments on [Walker], 661 — Competition from motor vehicles [Stone], 979 — Competition with electric railways [Palmer], rll — Cost of operation compared with electric car [StorerJ, r27 — Effect on electric railways [Storrs], 184 — Pacts regarding motor-omnibus service, '926 . — Jitney competition. [Eddy], 691 — Lawrence, Mass., to be earless unless jitneys are curbed, 877 — Leeds, England, situation [Jackson], "ll — London's tubes and buses [Jackson] — I, ♦708; II, »816 — Motor trucks and electric road, [Watts], 980 — Motor truck competition, [Whiteside], 981 — New York City, Replace electric cars. 701 — Opposed by Eastern Massachusetts Street Ry., 593 — Pave the way for the tramway, British Elec- tric Traction Co. [Jackson], 157 — Promotion. Comments on. 814 — Rail lines vs. buses [Jackson]. 392 — Results of service in Shellield. Eng., 865 — Ruled out of Portland, Me.. 360 — Service and jitney competition [Clifford], r35 — Toledo, O., Operation during earless peroid, 974 — -Truck competition discussed by C. E. R. A., 991 Motor Cars. Gasoline: — Automobile arranged to operate on steel tracks, •976 Motors : — Armature troubles [Dean], 759 — Commutator slotting device for use with double spindle lathe, •578 — -Drying armatui'es in electrically heated oven. •746 — Gasoline vs. electric motor for street rail- way service [Storer], r27 — Improved lubrication with changed motor axle boxes, •757 — Locomotive motor for Chicago, Milwaukee and St. Paul. ^827 — Lowering grid resistors to provide increased ventilation. ^938 — Midi Railway across Pyrenees mountains [Pahinl. 476 — Motor Hashing troubles, 577 — Reclaiming worn armature dust collars, *937 — Regenerative braking with single phase com- mutator motors in Switzerland, ^910 — Remedies for brush holder and carbon brush troubles [Dean], 759 — Remedies for worn split motor housings [Dean], 759 — Removing armatures from box frame motors, •632 — Safety motor starting switch, ^941 — Standardization of parts discussed by Ameri- can Electric Railway Engineering Assn,, r68 — Test of materials by manufacturers [Dean], •321 Moving Picture Films: — Illustrating one man ear operation, ^668 Municipal Ownership: — Advocated by governor of Massachusetts before Federal Electric Railways Commis- sion, *232 • — Chicago, favored by mayor and committee, 535, 769 — Discussed by Public Ownership League of America, 895 — Discussed before Federal Electric Railways Commission. 165, 238, 337, r96 — Investment Bankers Association does not favor, 797 — Is un-American [Bradley], •r53 — Japan, Tokyo's street railway system [Sano], 6 — Massachusetts Street Railway Commission opposed to, 871 - — Means of restoring credit [Macleod] . 427 — Municipal roads are not independent of eco- nomic laws. Comments on. 1031 ■ — New York City, possible development. 967, 1012 — Ontario Hydro Electric Commission recom- mends for Grand Trunk Ry., 491 — Political platform, 309 — Recommended before Federal Electric Rail- ways Commission. 285, 378 —Recommended by Dallas (Tex.) Ry., 291 — Rejected in Detroit. 872 — Report of National Association of Railway and Utilities Commissioners. 824 — Seattle municipal lines [Murphine]. 897 — Seattle. Wash.. Profit, 496 — Situation in San Francisco [O'Shaughnessy] , 896 — Windsor. Can., to purchase railways. 873 Muskegon. Mich.: — American Light and Traction Co.: Fare situation. 362 N National Association of Railway and Utilities Commissioners : — Annual convention, 824 National Safety Council: — Americanization, Letter on. 70 — Annual congress. Oct 1-4. 693 — Eighth annual safety congress, 790 — Organizing engineering' section, 908 Newark, N. J. : — Public Service Ry. : Publicit.v of zone fare system, ^484 Decision of War Labor Board, 37 Flat rates restored, 1022 History of recent fare increases, 282 Requests return to fiat rate, 715 Newark. N, J.: — Public Service Ry. (Continued) : Statistics, Traffic, revenues, capitalization, 1918, •.376 Zone fare loss fl. 500, 000, 1065 Zone fare collection, 283 Zone fare system, 268, 545, 599, •637, 783, 843 , Zone fare system approved by Board of Public Utility Commissioners, 258 Zone fare system abolished, 957 Zone fare system. Obstacles encountered. Comments on. 744 ( See also New Jersey ) New Brighton, Pa.: — Beaver Valley Traction Co.: Employees service code. 603 Successful traffic count, '865 New Haven. Conn.: — Connecticut Co.: Comments on zone fare system, 707, 813 Decision of case against New Haven & Hartford R.R.. Travelers Insurance Co. & Aetna Life Insurance Co.. 450 Layout of coal handling equipment [Wood], •312 Observations on zone sy.stem by N. J. Board of Public Utilit.v Commissioners, 1035 One man cars. Change boards, •.3-42 Preparing the public for zone plan. 1032 Wood block. Relaying [Crandell], '316 Zone fare system outlined, 807, •852 Zone fare system protested, 1022 New Jersey : — Boycott zone fare plan. 678 — Board of Public Utility Commissioners: Depreciation of electric railway dollar, 868 Observations on the Connecticut zone system, 1035 — Refuse return to flat rate, 716 Traffic checks of non-riders, 132 ^ (See also N'ewark, N. J.) New York City: — Buses replace electric cars, 701 — Cities Service Co.: $100,000,000 second preferred authorized, 950 — Citizens committee act on railway problems, 837 — Commissioner Nixon offers solution to elec- tric railway problem, 292 — Commissioner to urge merger as means to traction settlement, 946 — Eighth Avenue R.R. : Organizing. 414 Separation from New York Rys.. 139 — Electric railway situation [Hedges], r6 — General Gas & Elec. Co. : Changes in holding. 357 — Interborough Rapid Transit Co. : Blue lights in subway, Significance of [Porr], •579 City and railway partnership. Comments on, 311 Deficits for 1920-1924. 497 Earnings. July-September 1919, 840 Financing problems discussed before Fed- eral Electric Railways Commission, 234 No surplus possible until 1922 with 8-eent fare, 1058 Passenger handling records 1918-1919. 775 Report of Stone & Webster, 358 Stone & Webster report on earnings, 1016 $8,473,098 deficit in 1918. 1059 Strike, 404 Women workers disappear, 838 $5,000,000 deficit. 953 — Manhattan & Queens Traction Co.: Fare increases blocked by state supreme court. 701 Fare situation, 546, 738 Increased fares sought, 603 — Municipal ownership suggested, 1012 New York Municipal Ry. Corp. : 4000 fans ordered for subway cars. 1009 — New York. New Haven & Hartford R.B.: Income statements for 1918, 195 — New York Rys. : Abandonments authorized, 596 Abolishes transfers pending rehearing, 257 Receiver recommends transfers be abol- ished, 46 Receivership troubles. 3 Separation of the Eighth Avenue R.R., 139 Stone & Webster report on earnings, 1016 Transfer case, 876 Transfer order enforced, 301 Tw^o^-cent transfer charge granted, 56, 94, Wage increase. 403 $106,000,000 security shrinkage, 952 — Politicians oppose fare increase. Comments on, 510 — Public Service Commission : Comments on railway situation, *379 — Railway representatives and public service commissioner confer. 731 — Third Avenue Ry. : Amalgamated Assn.. Statement regarding, 447 Transit legislation to be considered 1055 — Tunnel to Staten Island proposed 803 — Zone fare system politically barred •SSI — Zone f;n-e vs. multi-fares. Comments on. c868 — 104.403.015 more passengers, 960 New York Elec. Ry. Assn.: — Conference of electric railway executives 688 • — Dinner. 978 — Fall meeting. 977 — Meeting of electric railway executives, 609. 674 New York Railroad Club : — Annual electrical night meeting, 918 New York Rys. (see New York City) Abbreviations : •Illustrated, c Communication, r Pag-© In Report Number for Oct. 11, READ THE INSTRUCTIONS AT THE BEGINNING OP THE INDEX VIII INDEX [Vol. 54 New York State: . , Consistant state policy is necessary [ChoateJ, Mayors confer on fares, 540 Norfolk, Va. : — Virerinia By. & Pr. Co. Negro problem in relation to one-man cars solved, 8i;l New franchise offered, 870 Net revenue declines, 9.54 Requests fare increase, 301 Safety cars experience [CallardJ, Northern Ohio Traction & Ltg. Co. (see Akron, O.) Norwich, Conn.: — Shore Line Elec. Ry. : . Abandonment before superior court 956 Accident reduction campaig-ns, *2S1 Making- over open cars for prepayment fare collection. *113 Receivership, 804 , Resume sei-vice, 393 Strike, 135 Zone fare system described, 'baS o Oakland, Cal. : Oakland & Antioch By.: . Afl'airs taken over by San Francisco & Sacramento R.R.. 1019 San Francisco-Oakland Terminal Rys. : Ten day strike, 731 Reorganization planned, &9t> ^Promotion operation and dismantUng of an electric and steam line [Finger], • 1036 Ohio Electric By. (see Springfield, O.) —Saving in the shop, '582. (see also Lubrica- tion ) Olean NY* Western New York & Pemisylvania Traction Strike and rioting, 448 Omaha, Neb.: „ . Omaha & Council Bluffs Street Ry. : Fare situation. 363 Nebraska Court grants adequate temporary rate pending appraisal, 199 Skip stops continue, 701 One-man cai-s (see Cars, One-Man) Ontario, Can.: . „ .i, Associated Municipalities of Northwestern Ontario : Organization, 81 Ontario Hydro-Electric Ry. Assn.: — Annual meeting, 593 Operating Practice: ^ , , ,,,,11 Advantages of higher schedule speeds [Beeler], •657 British Electric Traction Co., characteristic features [Jackson], 156 — Claim adjuster's views on car operating econ- omy [Giltner], 1045 ■ — Dispatcher's view of car operation economies [Harris], 1044 — Economies in car operation [Phillips], 1039 — How the master mechanic looks at car oper- ating economy [SeuUin], 1044 — Human factor in safe operation and main- tenance of rolling stock [Phillips], 793 — Increasing schedule speed of cars [Dehore], •917 — London County Council Tramways [Jackson], •311 — London tubes and buses — XI [Jackson], '816 — Questionnaire of Federal Electric Railways Commission, 573, 574 — Schedules, layouts and routing [Beeler], rl32 — .Superintendent's viewpoint on car-operating economics [Snell], 1045 Operating records and costs: —Cutting down operating expenses on a small interurban road [Dehore]. •915 — Discussed by A. E. R. E. A., •r74 . — Economies in car operation discussed by A. E. B. A.. 991 — Economies in Philadelphia discussed before Federal Electric Bailways Commission, r94 — Estimates of Wisconsin Bailroad Commission, 89'3 — Great Britain, London County Council [Jack- son], •37'3 — Operating engineer frowns upon theoretical calculations, (Castig Lioni], c350 — Pre-war conditions vs, today [Doolittle], r9 — Statistics of Philadelphia Rapid Transit Co., •1000 — Tower trucks, 133 Overhead contact system: — Double trolley favored in Japan [Sano], '5 - — Line materials, 417 — Statistics on cost [Emery], •395 Overload release for power driven machines, 346 Pacific Claim Agents Assn.: — Annual convention, 69 Pacific Electric Ry. (see Los Angeles, Cal.) Paducah, Ky. : — Paducah Traction Co. : Franchise, 477 Paints and Painting: — Development in japanning, 443 — Insulating vaxnish solvent chart, 348 — Paint Mixer driven by remodelled air drill, •1007 . — Shop methods used in paint shop, •921 Passenger Handling Becords: — Leeds, England [Jackson], ^12 — New York City, 960 — Time of passenger interchange on double end vs. Peter Witt cars [SulUvan], •656 Pavement : — Hints on paving [Pindley], 764 — Kreolite paving blocks and sectional paving for railway tracks, ^30 — Pneumatic tools foi- breaking up pavement, •584 —Pneumatic tools for breaking up pavement [Burn], *583 — Public authorities should assume this burden [Tinnon], 331 — Repairs to wood-block paving [Swartz], c588 — Results with wood-block paving [Buehler], c767 — Wood-block paving [Basmussen], c767 — Wood-block, relaying [Crandell], *316 Pennsylvania : — Public Service Commission : Comments on railway situation, 369, ^383 — Receivership [Ainey]. 391 Pennsylvania Street Railway Assn.; — Annual meeting, 13 — Traffic studies of the non-riders discussed, 55 Peoria, 111. : — Illinois Traction System: Operating costs and revenues, 89 Philadelphia, Pa.: — American Rys. Co.: Fare increase earnings. 167 — Comparison of invesments in transit facilities. Philadelphia and Boston, 1001 — Pares in Chicago, Cleveland and Philadelphia compared [Busby], 795 — Philadelphia Bapid Transit Co,: Comparison of fare situation with other municipaUties, 851 Co-operative plan [Mitten], rll4 Co-operative Welfare Association annual picnic, 537 Correspondence on hearings before Federal Electric Railways Commission, 907 Earnings increased, 537 Gross revenue and increase 1903 to 1919, 999 "L" nearing completion, 403 Operating statistics compared with Cleve- land and Milwaukee. 1918, rllO President's transit plan attacked, 950 Proposal to lease Frankford Elevated, 733 Safety-first movement, ^399 Service and fare conditions analyzed, ^999 Traffic court [Horton], '75 Wages readjustment, 36, 291 — Practice described by Mr. Joyce before Federal Electric Railways Commission, r94, [Mor- timer], rl08 Pittsburgh, Kan,: . — Joplin & Pittsburgh By. : Court grants 2 J cent a mile rate, 957 Pittsburgh, Pa. : — Pittsburgh Bys.: Appraisals, 409 Arbitration before War Labor Board, 38 Court sustains fare increase, 197 Fare increase earnings, 165 Fare increase helpful, 735 Bequests taxes remitted, 397 Strike situation, 405, 445, 491 Ten-cent fare necessary, 357, 302 Valuation, 357, 436, 1017 Valuation of property as basis for fare increase, 93 Wage increase sought, 136 — Street railway situation [Babcock], rll6 — Subway planned, 85 — Voters recommend loop plan be abandoned, 950 Pittsfield, Mass.: — Berkshire Street Ry. : Receiver appointed, 496 Plymouth, Mass. : — Brockton & Plymouth Street Ry. : Building special work with an oxyacetylene cutting and weldins outfit [Smith], ^317 Poles: — Pole-pulling jack, ^941 — Spacing for transmission line [Harte], ^563 — Steel gain, •346 — (See also. Transmission Lines) Portland, Me. : — Cumberland County Power & Light Co.: Car mile and ear hour earnings, ^624 Fare increase earnings, 166 Zone system, •631 — Motor buses ruled out, 360 Portland, Ore, : — Portland Ry., Lt. & Pr. Co.: Fare increase sought, 776 Higher fare urged to save from bankruptcy, 1031 Mr, Strandborg discusses the dollar, 596 Wage situation, 403, 949 Power Development : — Stimulus given to water power development in Sweden. 148 — Water power development hastened in Sweden, 335 — Discussed by American Electric Railway Engi- neering Assn., r71 — Keeping up the troUey voltage [Place], 27 Power Distribution : — Maintenance of high tension lines [Drabelle], 335 — Melbourne (Australia) Suburban Railway, •904 — Street and interurban railways [Drabelle], 765 — Voltage surveys give information for varying station voltage, 976 Power, Purchase of : . — Discussed by American Electric Railway Engi- neering Ass'n, •r74 Power Stations and Equipment: — Air blast transformers. Maintenance of, "424 — Automatic devices, Progress of, 370 — Coal handling equipment layout at New Haven [Wood], •SIS — Dead gas pockets for protecting soot-cleaner elements, '936 . — Discussed by American Electric Railway Engi- neering Ass'n, r73, 74, 76 — Economies in Steam generating stations [Finn], 1047 — Evaporating water in steam boilers, chart showing cost of, •586 — Feed water regulator, *036 — High efficiency of modem steam-turbme plants, 933 . — Limitations in steam-turbine design discussed by A. L E. E„ •933 — Measuring boiler draft conditions, 1008 — Mechanical overload release for power driven machines, '346 — Melbourne (Australia) Suburban Bailways electrified, ^903 — Neglect of power plant fatal, 209 — Steam condenser construction, 578 — Underfeed stoker, automatic cleaning feature, •585 — Unusual method for moving two 250-hp, boil- ers [Elliott], 133 Power Transmission : — Conditions in Sweden, 226 Providence, R.I,: — Rhode Island Co.: Earnings and operating expenses Jan. -June 1919, 413 Fare increase hearing, 412 Public pay subsides, comments on, 426 Results of higher fare, Washington testi- mony, 339 Service suspended by strike, 191 Six-cent fare, 702 Publicity : — Accident prevention campaigns advocated, 719 — Educational publicity of Twin City Bapid Transit Co., ^400 — Effect of cartoons upon public sentiment, 850 — Inform people through representatives, com- ments on, 849 — International Bailway, 36 . — Men with the nerve to tell the people the facts needed [Hedges], •rS — National campaign needed, 464 — Newspaper most influential [Mullaney], 316 — Preparing nublic for zone system in Con- necticut, ^852 — Preparing the public for zone plan, 1032 — Public education of railway facts urged [Pardee], *r3 — Public Service Bailway for zone fares, '484, •638 — Bailway utUity a good source [Mullaney], 316 — Selling transportation, comments on, c534 — Speak the speech of the people, comments on, 849 — State facts to public [Ainey], 387 — Straight-forward pubUcity bring results [Fredericks], 938 — Value and necessity of [Burroughs], r90 — When and where successful, 367 — Zone fare system in New Jersey, ^484, ^638 Publicity Agents: — Organize as committee of American Asso., r89 Public Ownership (see Municipal Ownership) Public Ownership League of America: — Conference Nov. 15-17, 895 Public Sendee and Begulative Commissions: — Commission co-operating with companies, 13 — Commissions have failed properly to ad- minister the intent of the law [Schadde- lee], 340 — Commission regulation at fault. Discussion before Federal Electric Bailways Commis- sion, 334, 335 — Consistent state poUcy is needed [Choate] , 689 — Constructive attitude, 798 — Co-operation of commissions and municipali- ties. 688 — Detroit mayor disagrees with commission, 802 — Federal Electric Bailways Commission (see Federal Electric Bailways Commission) — Industrial conference should include electric railway industry, 509 — Local versus state commissions [Eriekson], 243 — National Association of Bailway and Utility Commissioners. Meeting, 824 — New York Court of Appeals decides commis- sion can raise rates, 143 — Begulation not a primary obstacle [Ainey], 389 — Begulation should be simplified [Rifenberick], 66 — Supervisory force, comments on by T. & T. Ass'n, r54 Public Service By, (see Newark, N, J.) Purchasing: — Problems of Purchasing agents [Whiteford], r88 Purchasing Agents and Storekeepers: — Organize as branch of Engineering Ass'n. r87 Quiney, Til. : — Quiney By.: Seven-cent fare, 96 Abbreviations: •Ulustxated. c Communication, r Page in Report Number for Oct. 11. READ THE INSTRUCTIONS AT THE BEGINNING OF THE INDEX July-December, 1919] INDEX IX R Heat & Pr. Co., Fares Bail Joints and Bonds: — Bonds lor temporary and permanent track oonstruction [McKelway], 'H* — Bond troubles, 577 — Button-head on terminal type [McKelway], *11B — Expanded type [McKelway], 'llS — Joint without bolts, 'S-iS — Soldered bonds lor track bonding- [McKelway], 899 Rails: — Age and its relation to tracks and cars, com- ments on, 71:5 — Brinell hardness test for girder rails, com- ments on, 432 — Chemical analysis [Cram], 113 — Composite [Cram], 'llO — Composition of [Cram], '111 — Cutting- rails with a power sawing- machine, •1049. — Curved rails, use of. Manganese steel in, 54 — Girder rails, recommended designs [Cram], •558 — Girder rail specifications revised (A. S. T. M. annual meeting), 34 • — History and early types [Cram], '106 — Length increases [Cram], '113 — Making accurate measurements of railwear [Ferguson], •1006. — Rehabilitating track joints with an arc welder, '83 — Selection of [Cram], '656 — Sorbitic method of hardening, 'SD — Standardization of [Cram], '109 — Statistics on selling price [Emery], '395 — Third rail: Standardization drive, 3 ■ — ^Uses of oxyacetylene cutting and welding out- fit [Smith], '317 Raleigh, N. C. : • — Carolina Pr. & Lt. Co. : Race Segregation with safety cars, 877 Racine, Wis. : — One dollar a week pass started, 502 — Wisconsin commission withholds fare in- creasfe, 843 Reading, Pa. : — Reading Transit & Lt. Co.: Employees refuse ownership, 836 Receiverships : ■ — Aurora, Elgin & Chicago, R.R., 409 — Brooklyn Rapid Transit Co., 138 — Pennsylvania [Ainey], 391 — United Rys., St Louis, Mo.. 139; Court orders liquidation of indebtedness to War Finance Corp., 194 Rehabilitation : — How the railways can be rehabilitated [Cooke], rl37 Repair Shops: — Commutator slotting device for use with double-spindle lathe, •578 • — Saving oil, •583 — Stockroom records and practice, *861 Repair Shop, Material and Equipment: — Choice of, comments on, 554 — Commutator slotter, *347 — Electrically heated oven, *746 — Self-centering chuck, ^347 Repair Shop Practice: — Discussion on slack adjusters, meters, wheel grinding, etc.. by Iowa Elec. Ry. Ass'n, 761 — Handy shop carriage for fenders, *Q2,b — Maintenance kinks [Dean], 759 — Maintenance of equipment [Sutherland], 766 — Portable rivet heater. *488 — Removing armatures from box frame motors •533 Rhode Island: — Rhode Island Public Service Commission, com- ments on railway situation, 338 Rhode Island Co. (see Providence, R, I ) Rivet Heater: — Portable for shop use, •488 Rochester, N. Y.: — New York State Rys.: Fare decision stands, 737 Roslyn, N. Y. : — New York & North Shore Traction Co.- Fare situation , 738 Zone fare system established, 501 Safety car (see Cars, one man) Safety-first Movement (see Accident Preventions) Saginaw, Mich. : — Saginaw Bay City Ry.: Voters approve fare increase, 776 San Diego, Cal.: — San Diego Elec Ry. : Commission orders zone system and com- mends one man cars, 961 Zone fare system recommended, 501 St. Louis, Mo. : — United Rys. : Court orders liquidation of indebtedness to War Finance Corp.. 194 Drag line car for handling track materials. •531 Fare increase situation. 503, 599 Maintenance of air-blast transformers *435 Metal tokens popular. 961 Notice of default served. 139 Power contract upheld. 836 Receiver's report. 955 Vice-President re-views finances, 254 Wage award changed, 769 Wage increase, 404 Where the six-cent fare goes, ,3.57 St. Joseph, Mo,: — St. Joseph Ky., Lt., Increased, 1U31 Sandwxeli, Windsor & Amhurstburg Ry. (see Windsor, Can.) San Fraiicisco, Cal,: — Municipal Ry. ; Depreciation fund situation, 450 San Francisco & Sacremento R. R, : — Affairs of Oakland & Aulioch Ry. taken over, 1019 — Street railway situation [O'Shaughnessy ] , 896 — United l-l. R. : Readjustment plan modified. 734 San Francisco-Oakland Terminal Bys. (see Oakland, Cal.) Schenectady, N. Y.: — Schenectady R.v. : Fare situation, 689 Schuylkill Ry. (see Girard-viUe, Pa.) Scotland: — Glasgow Corporation Tramways: Income account, 1918 and 1919, 595 Seattle, Wash.: — Municipal ownership successful, 496 — Municipal Ry. : Financial report. April-June. 1919. 386 Improvements planned, 1054 Profits for May, 89 — Puget Sound Traction, Lt. & Pr. Co.: Purchased by city, 897 — Seattle municipal lines [Murphine], 897 — Tr,action snuation [Hanson], 386 Service and Tower Wagons: — Air-operated tower for line cars, ^794 — Tower trucks and cars at Minneapolis, *131 Service-at-cost (see Franchises) Sherbrook, Can.: — People vote to increase fares, 677 Shore Line Electric Ry. (see Norwich, Conn.) Signals: — Annunciators for fire sprinkler system, ^937 — Blue lights and their significance in New York subways [Porr], '579 — Combined signal and telephone box [Restof- ski], '901 — Effect of electrification, 380 — England, West Ham Corporation Tramways telephone control system, '397 — Equipment of York (Pa.) Railways increased. •130 — -Maintenance, observations on [Nachod] , 442 — Operating without telephones, Boston elevated Railway [Dana], *ZS Skip Stops (see Stopping of Cars) Southern Traction Co. (see East St. Louis, Ind.) Spain : — Central Metropolitan Railway of Madrid, sub- way nears completion, 'SI Special Work : — Consti-uction by oxyacetylene process [Smith], •318 — Continuous rail crossing, •936 — Face plates for bending and straightening, •559 — Home made high speed trolley frogs, ^943 — Labor saving tools useful [Findley], 763 — Screw spike vs. cut spike, Comments on, 969 — Spring switches and crossovers made from standard trolley frogs, 566 — Switch construction [Smith], '318 — Tests on holding power of railroad spikes, •975 — Thermit-welded crossings are long lived, '1008 Spokane, Wash.: — Spokane & Inland Empire R. R. : Court grants wage increase, 539 Foreclosure, 840 Springfield. Mass.: — Springfield Street Ry. : Energ,v saving campaign. '246 Zone fare system described, *628 Springfield, O.: — Ohio Electric By. : Observations and queries on safety car oper- ation [Moore], 131 Standardization : — Applying salesmanship to the engineering standards, 465 — Buildings and structures [Cram], 567 — Cars, one man [Wells], r36 — Classification of accidents, A.E.R.C.A., — Classification of accounts, A.E.R.A.C., — Danger of laxuess, comments on, 743 — Engineering standards discussed by A.E.R.E.A., r81 — Engineering standards. Report of A.E.R.A., r47 — Equipment standards of A.E.R.E.A. [Chance], 931 — Equipment standards of Master Car Builders' Assn., 931 — One man cars considered [Kealy], r31 Wells, r36 — One man car discussed by Central Electric Railway Assn., 64 — One-man cars. Comments on, 743 — Present status of engineering association standards [Welsh], 932 — Rails [Cram], '109 —Report of A. E. R. E. A., r70 — Use of standards by railways. 3 — Use of standards may be stimulated [Schrei- ber], 34 — Way matters [Cram], 568 — Wheels, 568 — Wheels, rails, bearing, motors and brake shoes discussed by A, E. R. E. A., •r77 Standards of Service: — Prewar versus today [DooUttle], rlO Staten Island, N. Y.: — Tunnel to New York City proposed, 803 Statistics : — Accidents, Shore Line Elec. Co., 1917-1919. •281 — Automatio substation operation data on, [Cadle]. 980 — British tramway expenses, 1913-1914 [Mad- gen] , 440 r83 r85 Statistics (Continued) : — uildings and structures, standardization of, 567 — Way matters, standardization of, 568 — Notes on the history and development of elec- tric railway rails, ^106 — Selection of rails for electric railway service •556 Crandell, J. S. Relaying wood block in Bridge- port, Conn., •316 Culkins, W. C. Incentive to efficiency is needed. 79 Cusani. Ferdinando C. Typical zone tickets from abroad. •479 Giltner. T. W. A claim adjuster's -views on car operatnig economy, 1045 Greenland, Sam W. One man car operation, 67 D Dana, Edward : — Operating without telephones. '33 — The street inspector as he was and is to be. •372 Dean, J, S.: — Manufactui-ers' tests of materials for railway motors [Dean], •321 — Railway shop, maintenance kinks, 759 Dehore, C. T. Cutting down operating expenses on a small interurban road, ^915 Dixon, Alves. A claim agent's experience with one-man cars, 730 Doolittle. F. W. Relationship of items of cost under pre-war conditions and today, r9 Doty, W. A. Fare collection with frequent changes in rates, r40 Draper, Walter A.: — A need for incentive for economical operation under servipe-at-cost franchise, 177 — Some elements of the Cincinnati franchise, •rl8 Drabelle, John M.: — Keeping the high-tension line in good repair, 335 — Power distribution for street and interurban railways, 765 Drury, A. C. Removing- track with a small force of laborers. 906 Eddy. H. C: — The street railway outlook, 691 — Traffic checks of non-riders, cl33 Edison. Thos. A. Communication to Federal Electric Railways Commission in regard to electric railways, c239 Elliott, Clifford A.: — Fireproof construction for substations, 487 — Pacific electric has complete parking program, •517 — Using lever throw-type track switches for safety, '987 — Unusual method for mo-ying two 350-hp, boilers. *133 Emery. J. A.: — Statistics show railway's plight. 394 — The future fare system for small cities, ^695 Erickson. Halford. Financing, state vs. local regulations and service-at-cost plan. 343 Fearnle.v, A. R. Facts regarding motor-omnibus ser-yice. ^936 Ferguson. Alexander D. Making accur,ate measurement of railwcar. '1006 Findley. R. H. Ho-w to maintain track. 763 Finger, Charles J. History hath its lessons, •1036 Finn, S. M. Economies in steam-generating sta- tions. 1047 Fredericks, Ernest B, Straightforward publicity does bring results, 938 H Handlon, J. H. The psychology of claim adjust- ment, 157 Hanson, Ole. Traction situation in Seattle, 386 Harris, R, E, A dispatcher's view of car opera- tion economies, 1044 Harte, Charles R, : — An effective home made grade indicator, ^933 — Laying out a power transmission Une, *561 Hedges. Job E. Men with the nerve to tell the people the facts needed, •r5 Horton, R. H. Methods of observing and an- alyzing passenger traffic. '75 Hutcheson, J. E. Montreal cost-of -service plan. •r24 Insull. Samuel. Communication to Federal Elec- tric Railways Commission in regard to elec- tric railways, c336 Jackson, A. A. Railways must sell their trans- portation, c587 Jackson, Dugald C. Status of the electric rail- way, 391 Jackson, Walter: — Foreign fare practice, 431 — London's tubes and buses, *708. ^816 — Possible operating economies and sales meth- ods. rll7 — Side lig-hts on the zone fare — congestion or diffusion? •376 — The zone fare in practice. *56 — The zone fare in practice, Croydon. England. ♦466 — The zone fare in practice, Leeds — Part 1, *7; Part II. •56 — The zone fare in practice. London County Council — Part 1. ^310 — Part II, •370 — The zone fare in practice, the British Elec- tric Traction Co., '154 — Zone fares for small cities, cl051 Jefteries. Guy K. Co-ordination of safety be- tween transportation and equipment de- partments, 694 Jirgal, John. Accounting for depreciation. 799 Johnson Geo. H.: — Morale of executive staff is affected by ad- verse conditions. c389 — The discouraged railway official. c443 Johnson. H. A. Coasting results on the Chi- cago Elevated, •377" K Kealy, Phillip J.: — Safety car scores a success in Kansas City. rSl — 'Valuation and accruing depreciation, 530 Kuemmerlein, George. Jr. Collection of zone fares, r68 Laney, Charles J. Obstacles to electric express 996 Lloyd. C. P. Some elements in a satisfactory =..ht.t!,tinn building, •833 Abbreviations: •TllustratecJ, c Communication, r Pagre in Report Number for Oct. 11. READ THR INSTRUCTIONS AT THE BEGINNING OF THE INDEX XII INDEX [Vol. 54 M Madgen, William L. Some light on British tramway eODditions, 439 Main, Edwin, Mowing- weeds on interurbau rig-ht-ol-way, *569 McCallum, Alexander. European electrifica- tion proposals, 474: McDoug-all, R. E.: • — Electric railway hazards — causes, effects and remedies, 693 • — Org-anization lor public accident prevention campaigns, 723 McLaughlin, J. F.: Metal tickets as a sub- stitute for multiple coins, r43 McKelway, G. H.- — Bonds for temporary and permanent track construction, *114 — Soldered bonds for track bonding, '899 McMahon, C. R. Car maintenance records fa- cilitate work, *119 Macleod, Frederick J. Public ownership may be only means of restoring credit, 437 Moore, F. J. Some observations and queries on safety car operation, 131 Mitten, T. E.: — Philadelphia's answer to the traction ques- tion, rll4 —Working hours of motormen and conductors. continuance of the 5-cent fare, erlll Mortimer, J. D. Can service costs be collected from traveling public. *rl4 Mullany. Bernard J. Getting the right kind of publicity. 216 Munton. C. J. Possibilities of electric railway express service, 992 Murphine. Thomas F. Seattle municipal lines. 897 N Nachod. Carl P. Some observations on signal maintenance, 442 Nash, L. R. The possibilities in readlness-to- serve fare schedules. 647 Nicholl, H. A. Interurban Express, 993 o O'Shaughnessy, M. M. Street railway situation in San Francisco. 896 Pahin, Lucien A. Progress on the Midi rail- wa.v pyrenean electrification. *475 Palmer. !>. H. Are high costs of ser\nce likely to develop permanent competition, "rll Pardee. J. H. Wage scales must be on reason- able basis, •r2 Perkins. R. W. State subsidies for the street railway companies, '645 Phillips. Frank R.: — Economies in car operation. 1039 — The human factor in safe operation and maintenance of rolling stock, 793 — The maintenance man's experiences during the war. 19 Phillips W. H. Helical gearing for railway motors. '934 Place, C. W. Keeping up the trolley volt- age. 27 Porr, Edward A. Blue lights and their sig- nificance in the New York subways, '579 Pringle, P. J. The principle of differential wages in awards, *c943 Proctor. C. B.: — Why does not every electric railway have a safety oi'giinization ? 792 — Written discussion on Mr. McDougall's paper. Organization for public accident preven- tion campaign, 734 R Rasmussen, W. C. Wood block paving, c767 Reid, Harry. Nationalization and standardi- zation of accident prevention. 791 Rostof ski. Harr.v : — Combined signal and telephone box, *901 — Voltage sui-veys give information for varying station voltage, '976 Rifenberick, Robert B. Burdens from which we should be relieved. 66 ' Robson. W. Tuke. Experiences with Thermit insert welding, •1049 Roderick, T. C. Earnings of the safety ear, 26 Sailers, Earl A. Accounting measures to meet business depression in the industry, r37 Sano, Shiro. Practices and tendencies in Japanese electric railway transporta- tion. '4 Schaddelee. Richard. Commissions have failed properl.v to administer the intent of the law. 240 Schneider, E. F. Safety before and after the war. 791 Schreiber. Martin. Use of standards. c34 Seullin Terance. How the Master Mechanic looks at car operating economy, 1044 Seelar. L. F. Swing of radial coupler on curves. •489 Sidlo. Thomas L. Relief for the present trac- tion conditions. rl29 Sisson. F. H. Street railway credit and cost of capital. 178 Smith. Montelle C. Building special work with an oxygen-acetylene cutting and weld- ing outfit. •SI? Snell, O, C. Superintendent's viewpoint on car-operating economies. 104.5 Spring. Edward C. Electric railways from an operating standpoint. 17 Stanton. H. C. Handling the freight business. 982 Starkey. J. F. Possibilities of electric express service. 99.5 Stevens. R. P. The Youngstown service-at- cost franchise. r21 Stipall. E. E. Purchasing agents and store- keeper urged to attend the Atlantic City convention. c589 Stone. C. I. Competition from motor vehicles, 979 Storer. Norman W. Gasoline vs. electric motor for street railway service. r27 Storrs. L. S.: — Competition of motor vehicles. 18.5 — Reasons for railways' present condition. 175 SulUvan, R. T. The collection of odd street railway fares, •053 Sunderland, John A. How a motorman can help in car operating economy. 1043 Sutherland, John. Maintenance of equipment, 766 ^ . Swartz, A, Repairs to wood block paving, Taylor, A. Merritt. The valuation of electric railway properties, 128 Thirlwall, J, C. General observations on Bir- ney cars, r33 Thomas, Theodore B. More passengers better than too-high fares, c727 Tinnon. John B. War-time progress in main- tenance of way. 320 Tynan, L. J. A fixed schedule for Injured per- sons other than employees, 721 u Unland. H. L.: — Electric arc welding methods, *343 — Use and misuse of arc welding apparatus, 757 — Welding wrought iron and steel. 581 V Vaughn. S. L. Possibilities of express business, 997 w Walker. E. M.: — Business follows service, ^660 — Safety cars and the results of their opera- tion, 161 Watts. F. W. Motor trucks and electric road. 980 Welsh. J. W. Present status of engineering association standards. 922 Wensley. R. J. Some experiences In the de- velopment of automatic sub-stations. ^886 Weston. George. Electric railway policy. .529 Whiteford. William. Problems of the purchas- ing agents. r88 Wells. Gardner: — Standardization of Birney safety car. r3R — Some safety car objections answered. 983 Whiteside. W. J. Motor truck competition. 981 Winsor. H. G. Written discussion on Mr. Dixon's paper. A claim agent's experi- ence with one man cars. 721 Wood. George E. Insuring adequate coal sup- ply with the least expenditure. •313 Woods. Robert P. City representation in elec- tric railways. 726 Wright. T. T. Advertising publicity, 287 Yungbluth. B. .T. Inventorying materials and supplies. '519 Abbreviations: *Illustrated. c Communication, r Page in Report Number for Oct. 11. READ THE INSTRUCTIONS AT THE BEGINNING OF THE INDEX PERSONAL INDEX (with biographical notes) Adams. H. P 49 Allen, Horace 99 Anderson, Walter E 261 Bailey, R. W '703 Bauer. John ^1025 Beach. H. L 262 Bicknell. M. 0 49 Blair. Col. E. J 740 Blanks. P. H 1067 Boardman. A. Jay 303 Bolt, Walter C 203 Bramlette. John M 778 Brown. Harry L 48 Buffe, F. G ^99 Burr. George L 549 Butler. Henry O '703 Callaghan. W. C 416 Cameron. Bruce *98 Campbell Gordon '48. 261 Chamberlain, F. C 365 Cram, R. C •147 Crane, C, F 778 Daly, David 603 Dana, Edward '364 Dcmnsey. J, J *S05 Dillon, Col. T. H 963 Fas-an. J. F ^505 Edstrom, Sigfrled J 845 Fmmons. CD 203 Estill. G. C •459 Fitch. Howard F 202 Flowers. Herbert B 810 Ford. A. H 778 Frauenthal. B. W 878 Gahoury. Arthur ^1067 Gillette. Maj. Geogre 878 Gordon. Leroy 0 739 Hardy. Frank 1 203 Harr. Augustus E 365 Harrsen. H. P 549 Hedley. Frank •739 Hill, Otis R 549 Hunt, Edward J 49 Ingle, J. P •48 Jackson. Caleb S 202 Jackson, Walter 48 Johnson, C, C 878 Johnson, Eugene C 98 TInox. R. R 1067 Larrabee. Harold D 146. 203 Leiissler. R. A ^810 Libbey. Joseph H 202 Lvons. William L 416 Merrill, E. D ^146 Milliken. E. L 878 Morgan. C. B 778 Mover. C. C 963 McCormick. Maurice E. . 146. 845 Neal. J. Henry 810 Perkins. Col. A. T *146 Pierce. Daniel T 963 Porter. H. Hobart •778 Ray, William D 263 Renshaw, Clarence 203 Rolston, Wilham E ^963 Root, Oren 680 Seeley, Garrett T ^740 Sheehan. Patrick P 878 Sloan, M. S 262 Sparks. Ralph M 147 Steams. Robert B 202 Stocks. Carl W 262 Stovcl. Russell W 963 Stratton. M. G 740 Sullivan. Patrick F 203 Sullivan, Richard T ^739 Paurman, A 778 Trazzare. J. P 1067 Von Phul. Wilham •49 Waldo. Ralph 416 Ward. Frank D 202 Waring. George H 263 Warner. Robert 1, 146, 365 Warnock. A. W 49 Walker. Frank B 202 Wayne. Joseph E 363 Wellman. Louis W 202 Wh.arton. J. S. M 261 White. Louis C 48 Whitlock. W. L 505 Willcutt. George B 99 Witt. John P 261 (•Indicates Portrait) Journal Consolidation of Street Railway Journal and Electric Railway Review Volume 54 Ncw York, Saturday, December 27, 1919 Number 22 The next issue of this paper will be the annual sta- tistical number. The most striking facts that the tables will show are that of the cars ordered in the United States by city surface lines nearly 75 per cent were of the one-man safety type, and that of the motor passenger cars ordered by these lines the percentage was even higher. The statistical issue will contain a suggestive symposium on the electric railway situa- tion from a number of points of view. Notice About Binding THIS issue of the Electric Railway Journal com- pletes Vol. 54. There have been twenty-three issues which should be included in the bound volume, namely, the twenty-two issues which carry the regular serial numbers and the report issue of the Daily, published on Oct. 11 with the report of the Atlantic City convention. The publishers recommend that this report issue, whose pages are numbered from 1 to 130, should be bound at the end of the volume as a supplement. The editors believe that the index to Vol. 54 which accompanies this number will prove especially useful because more than the usual care has been given to its compilation. The system of key words adopted some years ago to standardize the terms used in the index has been continued and somewhat elaborated. A description of the plan followed will be found on page II of the index. A large number of subscribers to this paper bind their issues at the end of each half-year, and it is a plan which could well be followed by all. A Decade of Mid-Year Meetings of the Association THE Cleveland meeting of the American Electric Railway Association, to be held on Jan. 8, will be the tenth in the series inaugurated in 1910 under the presidency of James F. Shaw. The first five of these were held in New York but beginning in 1915 a differ- ent city has been chosen each year, namely, Washington in 1915, Chicago in 1916 and Boston in 1917. They were begun because a definite need was felt by the rail- way executives for an opportunity to talk over pressing problems of the business away from the bustle of the annual convention and the distraction of every-day work. The conference plan sprang immediately into favor, and in due course the conference was made an official meet- ing of the association with full legislative powers. At first the winter meeting was rather incidental tc a group of committee meetings which were called at the same time. As the committees were naturally made up of leaders of thought and practice in the several depart- ments of the industry a representative attendance at the conference of all branches of the business was as- sured. Gradually, however, the practice of holding these various committee meetings at the time of the mid-year meeting fell into disuse, the principal reason being the general feeling that the work of the affiliated associa- tions and of the committees should be started earlier in the association year. The present plan by which this work is begun soon after the October convention is desirable in many ways. Nevertheless, the earlier plan has many advantages and we suggest the matter again be considered before the 1921 meeting to determine whether possibly the circumstances have changed suffi- ciently to warrant a return to the older order. The Mid- Year Meeting Programs Epitomize the Industry's Thought AS the mid-year meetings enter their second decade, il one's thought naturally turns back to review the 1910 to 1919 meetings in perspective as they changed in character from conference to full-fledged meetings. All have related directly to the financial side of the industry, and it is instructive to recall that even at the first (1910) meeting, emphasis was laid on the declining at- tractiveness of the electric railway as an investment and on the necessity for higher fares. This led natu- rally to studies of the proper rate of return (1911) and to proper bases for rates of fare (1912-13). By 1913 the drive of cities for lower fares had largely subsided, but the upward tendency of operating expenses was even then so marked as to cause great apprehension, and this was seven years ago. The principles of commis- sion regulation logically came in for attention in 1914, and the 1915 meeting was appropriately held at the nation's capital. The great war had then begun, and it was not difficult to foresee that very close relations between the federal authorities and all industrial and transportation enterprises were inevitable, especially if we should enter the war. The 1915 meeting was ad- dressed by President Wilson, who declared in memorable words that if the companies treated their employees and the public fairly and if their methods were above reproach, they could "pile up profits as high as the Rockies, and nobody will be jealous of it." The follow- ing two meetings (Chicago and Boston) immediately preceded our entry into the European conflict, and were given over to valuation, rate of return, regulation, em- ployees' welfare and, last but not least, the adaption of merchandising principles to the selling of transporta- tion. No winter meeting was held in 1918, but last March many of our representative men got together to confer as to the fundamentals of economical operation which had to be applied immediately in view of the crisis forced upon them directly by the war and indi- rectly by several factors which would have acted ad- versely even without the war. These have continued to act during 1919. The experience of the past ten years has shown mid- year meetings to be decidedly worth while, and we ex- pect definite progress from that at Cleveland. 1030 Electric Railway Journal Vol. 54, No. 22 Massachusetts Anti-Strike Bill Was in the Right Direction SPEAKING of the coal strike in 1902, Theodore Roosevelt said : "No man and no group of men may so exercise their rights as to deprive the nation of the things which are necessary and vital to the com- mon life." This sound principle was again emphasized recently in several statements issued by President Wilson to the striking bituminous miners whose ob- stinate tactics threatened for a time to bring serious disaster upon the nation, as they had already resulted in real discomfort for millions of citizens. There can be no gainsaying the statement that a strike which ties up the transportation of a great community is a strike invested with a public interest, and as such it should merit the condemnation of right- thinking persons everywhere. For this reason an un- usual interest attaches to the draft of an act recently recommended to the Massachusetts Legislature by the Street Railway Commission, the purpose of the proposed legislation being "to secure continuity of service on street railways under public control." In brief, this bill was an anti-strike measure. It was printed in full in the Journal of Nov. 8, page 873, and while it sub- sequently failed of passage the issue involved deserves serious consideration. People no longer question the right of men to combine and strike for a lawful purpose, but when in doing so the strikers trespass upon other rights which are no less sacred, a sharp line must be drawn between the liberty of the individual and the interests of the greater public. This is peculiarly true in the case of a strike on a railway system. Here is involved the distinction between the carrying on of public utilities and of a private enterprise. Presumably, a person enters the service of a public utility voluntarily. He may quit that employment without hindrance when he chooses to do so. But when the public service is interfered with "by concerted action, combination or agreement" of employees, as the proposed Massachusetts act contemplated, a greater issue is at stake. As the United States Supreme Court pointed out in passing upon the validity of the Adamson law, the right of an employee to leave the employment if he desires and by concert of action to agree with others to leave, is "necessarily subject to limitation when employment is accepted in a business charged with a public interest." Also, in the well- known Debs case, the Supreme Court sustained the action of the lower tribunal which took steps to prevent the wrongdoing of one resulting in injury to the gen- eral welfare. Agitators and supporters of the radical labor point of view often are heard to say that proposals to prevent strikes have a tendency to create "involuntary serv- itude." As a matter of fact, the law which was recom- mended in Massachusetts would not restrain a man from refusing to work, but it would prevent his stopping an important public service by a combination with others. Thinking people of all civilized nations have had occasion in the past year to give more than the usual amount of serious consideration to the labor situation. Apostles of discontent have sown the seeds of dissension everywhere, and there seems to be an almost universal demand for the highest possible pay for the least pos- sible amount of work. It would seem that the average workman no longer takes pride in work for itself and that he places his pay above all other considerations. While this situation in itself is fraught with peril, the disturbances are still more threatening when they tend to paralyze whole communities in their commercial and social activities through strikes on street railway sys- tems or in any business alfecting the greater part of the public. We believe from recent public utterances of candidates for political office and other reasons that sentiment is tending toward passage of anti-strike legis- lation as regards the kind of properties mentioned, and we look upon it as a tendency in the right direction. Some More Bus Calculations IN OUR issue of Nov. 1, we had occasion to analyze some recent bus-promotion literature under the title of "Bus Facts Versus Bus Fancies." This time we are not concerned with the J. Rufus Wallingford promises of the private promoter, but with the optimism of the municipal officer who confuses utility to the public with profit to its civic purse. As an instance, we have in mind the estimate of bus costs presented to the Board of Estimate and Apportionment, New York, on Nov. 21, by Grover A. Whalen, Commissioner of Plant and Structure. Mr. Whalen is the official who is in charge of the extemporized bus services that are now in vogue on nearly a dozen lines, either to replace abandoned car lines or to give a more convenient service than is possible with the disrupted routes of some of the railway companies. Realizing that the present scheme of haphazard operation with individually-owned buses cannot be continued with safety to the public, let alone fairness to the railways, Mr. Whalen has pre- sented an estimate for a municipal bus system. In figuring that of 100 buses, not more than ninety- two would be constantly available, Mr. Whalen is within bounds; nor is his estimate of $5,500 for a twenty-six or twenty-seven-seat bus unreasonable. It is also noteworthy that he has allowed 30 per cent for depre- ciation, although a careful bus operator might get up to five years effective life. On the other hand, his estimate of $10,000 each for "spare parts" and "garage equipment" totals only 3.6 per cent of the $550,000 required for new buses in comparison with an allowance of 10 per cent by actual operators of bus systems. A i-esponsible bus company, just like a street railway, must also be prepared to operate in snowstorms and on icy pavement. Hence snow scrapers and sand spreaders are a necessity unless the buses are going to stay in the garage until the street railways and the street cleaning department clear the streets for them. Mr. Whalen's estimate makes no allowance for such equipment; nor can we find any reference to the service vehicles which would be needed for pulling in broken- dovni buses, carrying repair parts between the garages, handling cash, etc. Unless the "garage" item of $25,- 000 covers all storage and upkeep structures the omis- sion of "land and buildings" indicates that a kindly city will place facilities of that nature at the disposal of the bus department! This is a typical instance of how real costs can be covered up in an undertaking where one department can sponge on another. In the still more important matter of operating costs, we are informed that the total daily charge per bus - ill be $17.40, M'hich compares with an actual derived average cost of $20 a day for smaller buses in the ^ame service. As a matter of fact, the cost of operating buses of less than the capacity proposed has run as December 27, 1919 Electric Railway Journal 1031 high as 35 cents per bus-mile. To secure more than seven 5-cent passengers per mile average with a twenty- seven-passenger bus in order to break even means that the bus services will have to stick to the short-haul, dense-traffic sections. In other words, neither the city of New York nor any other operator of buses can make money at a 5-cent fare unless said operator de- liberately robs the electric railway of its only profitable traffic. If, on the contrary, the bus services are for localities where the street railway is no longer available, or accessible, they will undoubtedly be a public benefit but a financial loss generally. Our objection is simply that our public officials deceive both themselves and their citizens when they fail to point out that they are embarking on a general philanthropic enterprise, where- as some give the impression that there's a lot of money in it. The bus is bound to have an ever-wider field as highways continue to improve and electric railway burdens continue to increase, but let it be understood that wherever there is any worth-while density of traffic an organized, responsible, 365-days-a-year bus service costs more and not less than the modernized electric railway. True Economy Must Operate from the Bottom Upward SEVERAL pages in this issue are devoted to a symposium on operating economy which formed an important part of the program of the Grand Rapids meeting of the Central Electric Railway Association. It is worthy of careful study because it gets right down to the ground in this matter. There is apt to be a great deal of talk about economy without much real saving being accomplished unless the co-operation of the ulti- mate spenders of a company's money is enlisted. On the other hand, without a comprehensive view of the matter undue attention to detail may result in a policy of "saving at the spigot and wasting at the bunghole." The Grand Rapids symposium ought to be helpful in guiding the thought of the readers between these two extremes. The program committee for the C. E. R. A. meeting asked F. R. Phillips to outline the field of possible electric railway savings preparatory to having the details of the many-sided problem presented by repre- sentatives of the several component departments. The theory of this is ideal, it is the basis of conferences of competent advisers which in these days are held before any important matters are decided. And it worked out very well in this case. To be sure all departments do not agree in details. For example, the operating man wants more car speed to cut down labor and other costs chargeable to him, while the claim agent fears that too much speed may cut into the allowance for accident claims. Obviously a compromise must be effected here. The master mechanic says that the painstaking work of the shop men can be "knocked into a cocked hat" by a few minutes of reckless operation. Obviously the far- reaching effects of carelessness need to be preached to the car crews if the mechanical department is to be placated. But why multiply illustrations? These indi- cate the principle which we have in mind, a principle which is being applied increasingly well. We hope that maintenance costs will be sensibly decreased as a result of the discussion at Grand Rapids. Also, the poly-sided symposium plan of program so profitably used there might well be used at other meetings and on other electric railway topics. Municipal Roads Are Not Independent of Economic Laws DELEGATES to the conference of the Public Owner- ship League of America, held recently in Chicago, appeared to be a well-satisfied aggregation as they adjourned after adopting resolutions in support of the principles to which they are all committed. They had heard their leaders tell of the growth of sentiment in favor of public ownership, and they seemed happy in the thought that the dawn of a new era was at hand. Two papers were read at that conference in which statements were made which tended to show that even municipal ownership cannot accomplish the impossible — that is, pay all the costs of street railway service out of a 5-cent fare. One of these was made by the city engineer of San Francisco who had much to do with the construction of the municipal line, and the other by the chief executive of the Seattle property. Of these two roads, the former is one of the oldest, and the latter is the largest of our municipal railway undertakings. Mr. O'Shaughnessy of San Francisco explained that it had been the custom to set aside 18 per cent of the gross receipts to cover depreciation and damages. He admitted that in order to meet the July expenses it was necessary to borrow money from this fund, and he did not know whether this practice would be continued. He also conceded that "it is much more desirable that the returns to the corporation or to the municipality be sufficiently high to insure first-class service rather than to retain a low fare and allow the service to deteriorate." Mr. Murphine of Seattle declared that no amount had been set aside for depreciation of the municipal rail- way— that the authorities believed rather in spending this fund than in allowing it to accumulate. He did not think it a proper railway expense under city owner- ship and management to care for and maintain that portion of the street covered by tracks, and this is not being done in San Francisco. This official also admitted that municipal ownership alone would not make a nickel fare go as far as formerly, saying that it would have to be accompanied by relief from franchise obligations and by economies in operation. "Relief from all fran- chise obligations is imperative," said he, "and under public ownership and management there can be no just reason why any portion of the nickel fare should be taken to pay other than legitimate railway expenses." A Massachusetts advocate of public ownership recently said : "Even if public ownership be adopted we shall have to utilize the service of human beings." He might just as truly have said that under public ownership a nickel fare would not be found any more elastic nor would it have lower expenses to meet either for labor or materials. These M. O. "fans" are inclined to be very frank among themselves. They admit that they cannot work miracles. But they do boast that they can furnish local transportation for a 5-cent fare "if" — Ah, there's the answer! — if they are relieved of non-transportation charges such as paving, taxes, etc. — burdens which they have been refusing for years to lift from the shoulders of those who have been striving to make a success of the 5-cent fare under private operation. As a recent Massachusetts report stated: "Public ownership will not change these facts. All these amounts must be met either by the car rider or by the taxpayer, whatever be the system of ownership or management adopted. Facts exist even when concealed by the magic mist of public ownership." 1032 Electric Railway Journal Vol. 54, No. 22 Preparing the Public for the Zone Plan The Inauguration of the New Method of Charging for Transportation on the Connecticut Company's Lines Was Preceded by a Long Program of Publicity SUPPLEMENTING the general article on the in- auguration of the zone plan in Connecticut, printed in the Nov. 8 issue of this paper, the officials of the Connecticut Company have furnished more detail regarding the methods used in preparing the public and the employees for the new system. According to these men the chief fact by virtue of which the zone system was established on the company's 700 miles of track without the slightest disturbance from the public or material interruption of service was the existence of close co-operation between the company and its em- ployees, and between the employees and the public. The zone system is declared by all of the officers of the com- pany to be "an unqualified success." It was inaugurated on Nov. 2. Eight days later the company issued a statement to the press that the system was a success and that, while it was too early to make financial compari- sons, the situation was very satisfactory. Company Agreeably Surprised as to Revenues Since that announcement was made there has been a steady improvement, both as to the smoothness of the system's operation and in the company's financial con- dition. Although the company expected a temporary decrease in revenue when the new system, with its radical changes in the customs of passengers and crews, was established, there was only a single day that showed a decrease in revenue as compared to the correspond- ing day in the preceding year, that day being the one which had to be compared to "armistice day" of 1918, when railways throughout the country did holiday busi- ness. The co-operation which made possible the successful establishment of the new system was not brought about in a day. It was the result of a very carefully planned educational campaign, designed first of all to inform the company's 4500 employees regarding the condition of the company, and, secondly, to bring the public to realize that the continuance of electric railway service in Con- necticut— and anywhere else, for that matter — depended entirely on the willingness of the people to pay a fare that would enable the company to meet its obligations and obtain a return on its investment, so that it might provide the improved service made necessary by the growth and development of the communities. This educational campaign was a success. The decision to try the zone system had been under consideration for many months before it was put into effect, for the company concluded not to make the change until the most favorable time came. Mean- time the campaign to educate the employees and the public as to the necessity of obtaining increased revenue was carried on. Services of a Newspaper Man Were Secured About a year ago President L. S. Storrs decided that the time had come when the company should employ an expert in publicity. Although it is one of the largest electric railway properties in the United States, the Connecticut Company had never attempted any definite program of education. Mr. Storrs obtained the services of a man who had spent his life in the editorial end of the newspaper business, and who had, in some degree, been a student of street railway problems. The com- pany gave him the title of "Executive Assistant," and told him that it was largely up to him to work up a program and carry it through, subject of course to the approval of the president. The first work attempted was the education of the company's employees. As a beginning, a short bulletin, printed on the president's letterhead, was mailed to the home address of every employee to emphasize how im- portant it was that the company should win the good- will of the public. It declared that the officers and the employees formed "one big family" which must work together, and called on every officer and employee to give the company's problems his very best thought. It invited suggestions from the men and included a sheet bearing the letterhead of the company and the following paragraph : "I believe the service of The Connecticut Company on the Division would be improved if attention were given the following matters:" An envelope addressed to the president was inclosed with this letter so that employees might have every facility for sending in their comments. This letter re- sulted in several hundred constructive suggestions be- ing received by the company, many of which were valu- able. State Commission Inquiry "Aired" the Company's Needs About the time this circular was sent out an inquiry into the condition of the electric railways of the State was begun by a special commission appointed by the Governor and the General Assembly. The hearings be- fore this commission resulted in much publicity about the condition of the company, which, because of in- creased expenses, had been unable to pay its State taxes or to meet various other obligations. These hearings focussed public attention on the railways and as it had been known that The Connecticut Company, which then had a 6-cent fare, was considering a higher fare, there was considerable guessing in the newspapers as to what the company would do. Then came the report of the special commission to the General Assembly, and hearings before committees of the assembly to which the bills reported by the com- mission were referred. Everybody agreed by this time that the electric railways of Connecticut needed help, but the legislators and other representatives of the cities and towns who appeared before the legislative committees were unwilling that their particular com- munities should be deprived of any of the financial as- sistance the railways were required by law td give them. The limits to which the Legislature was willing Electric Railway Journal Consolidation of Street Railway Journal and Electric Railway Review Vnhinie 54 New York, Saturday, Julv 5, 1919 NiiDiher 1 Central Association Boat Trip a Harbinger of Peace ONE of the most homogeneous organizations in the electric railway industry is the Central Electric Railway Association. The railways operating in the territory of this association are in a position to profit to a rather unusual degree through co-operation, due to the fact that their business is in considerable part made up of interurban traffic. Their lines radiate and interconnect in a remarkable manner, and the interur- ban roads themselves and those which do city business can greatly' augment their own income by assisting in promoting the prosperity of their neighbors. The ter- ritory is compact geographically and is closely knit to- gether by interurban and steam lines. Moreover a spirit of good fellowship permeates the territory which, com- bined with the ease of getting about, conduces to making the meetings of the association very attractive to the members. This applies particularly to the summer cruises, which are resumed this week after a wartime lapse. The cruise this year lasted from Monday to Thursday inclusive and short stops were made at points of great interest. There was sufficient of a program to form a skeleton for the meeting, and the papers and discussions were well worth while. However, the principal feature was the opportunity furnished for developing personal acquaintance, which is greatly needed in these trying times if the status of the electric railway is to become what it should. Other associations may well envy the Central its wonderful summer outings and may properly hold it responsible for results commensurate with its unusual facilities for getting together. the decision by the United States Housing Corporation to buy cars built according to the "standards" pre- pared for it by a war-time committee appointed by the Electric Railway War Board. The signing of the ar- mistice put an end to the Housing Corporation's plan, otherwise fifty cars of this type wou'd have been ordered immediately. It is unfortunate that these cars could not have been completed, if only to determine their post- Vv-ar marketability by actual sales. The present acute shortage in electric railway funds is having its effect in the line of standardization. For example, many roads are buying safety cars to the manufacturers' rather than their own specifications. They could well follow the same procedure in purchas- ing larger cars. It is quite true, however, that it is easier to use a standard small car than large ones because clearance difficulties and other limiting condi- tions do not enter into the calculation. Any road can utilize a small car, as far as ability to get it over the road goes, whereas each road seems to be hampered by "special conditions" with respect to the use of large cars. Even with this handicap, however, some of the lessons taught by the safety single-truck car develop- ment can be applied to their larger contemporaries. Standardizing Ships, Electric Cars and Other Things 44/^AN the world be persuaded to buy ships as it V> buys automobiles? that is the question." This extremely timely query is propounded editorially by a New York City daily in a recent number. The ques- tion was obviously prompted by the feat performed by the Emergency Fleet Corporation on the previous day in launching five ships of a combined tonnage of 39,000, all within a period of forty-eight minutes. The point made Vi'as that if the public will buy ships fabricated and assembled by the methods found applicable in war time, it will be possible to continue the operation of the Hog Island shipyard. Otherwise it may be neces- sary to scrap the equipment assembled there at so great a cost. What is true in the shipbuilding field applies with modifications in the construction of electric cars. And, it is profitable to note, there was an analogy here in There Is Growing Recognition of the Value of Good Service IT IS REFRESHING and encouraging to read editor- ials such as have appeared in many of the metropolitan dailies recently on the traction situation. In all of the large cities there seems to be a wider reali- zation than ever before of the fact that electric rail- way companies are not immune to the effects of ordinary commercial laws. Everyone knows that the cost of labor and materials has gone up, and that in other lines of business this has been met by an increase in the price of the commodity. This raises the natural inquiry, why should the same course not be followed with street car fares? It is still more satisfactory to find that there is grow- ing understanding of the importance to a city of good service. This, for example, was the fundamental ar- gument in a recent editorial in the Minneapolis Journal, reproduced in our issue of June 21. The Minneapolis editor insists that service is para- mount in any settlement of traction affairs — "more im- portant to the individual car rider, and more important to a growing city which cannot permit its development to be stunted by lack of transportation facilities." He contends that if Minneapolis had a 6-cent service, with plenty of cars running, with extensions built where necessary, while St. Paul struggled with a 5-cent service that meant cars crowded and infrequent and no ex- tensions, the people of the latter city would not be long 2 Electric Railway Journal Vol. 54, No. 1 in recognizing that their 5-cent bargain is no longer a good one. The editorial is an answer to the argument that the proposed service-at-cost franchise in Minne- apolis will mean a 6-cent or 7-cent fare for Minneapo- lis while St. Paul, with a franchise guaranteeing a 5-cent fare and eighteen years to run, will have an unfair advantage. Both cities are served by the Twin City Rapid Transit Company which has expressed its approval of the pending ordinance. The people as a whole also, we believe, are coming more and more to realize the value of good service. This was one of the strongest arguments which won over a majority of the Chicago city council to support a service-at-cost franchise some months ago. They recognized an increased fai-e as unavoidable and their principal differences were on a proper distribution of transportation improvements. If the companies had been able and willing to guarantee rapid transit facili- ties to every ward the popular support of the plan would have been more generous. It was really a question of making an enlarged elevated and subway system self- supporting on a reasonable rate of fare. We look for interesting developments in the Minne- apolis-St. Paul controversy. We believe the near future will show the wisdom of the Minneapolis Jounial's argument. Local transportation is a community prob- lem in which the interest of the public is even greater than that of the owners of the railway utility and the public interest can be best advanced by securing ade- quate service. A 5-cent fare was never expected to bear the burdens of present-day costs, and those com- munities which insist on carrying out such a contract are biting off their nose to spite their face. Five-cent service is better than no service at all, but the financial condition of many railway properties is approaching a crisis where 5-cent service will probably mean no serv- ice or very poor service. A right-thinking public will pay the price of good service before it is too late. Electric Railway Transportation in the Orient ACCORDING to the picture sketched by Shiro Sano, whose article on electric railway conditions in Japan is printed in the present issue, this utility is suffering in the Far East from difficulties of the same sort as are being encountered in the United States. While conditions in the two countries are radically different in many ways, it is at least of interest to compare them and to draw such conclusions as apply in our own country. The fact that the electric railways of Japan are compelled to rely for support to an increas- ing extent upon another utility indicates that there is an unfortunate relation of expenses to fares which must be corrected by means of better and more economical service and by increase in fares as well. Judged by our standards wages in Japan have been very low but they are increasing at a rapid rate, greatly aggravating this condition. The fare-collection scheme used in Tokyo appears cumbersome and as not tending to high schedule speed, but presumably time saving is not considered so essen- tial there as in an American city of the same size. Again the wide use of the double trolley in Japan strikes us as peculiar. While this scheme has had a slight use in the United States it involves very great complication in overhead construction, and the improve- ments in the track return circuit have largely removed the argument in its favor. Municipal ownership and operation is having an extensive trial- in several Jap- anese cities. In time there should be valuable data available as to the success of these experiments. Look About You Now and Then SOMETIMES we marvel that a man in the station in life of a public utility manager can allow him- self to be so far behind the times in his own business. It is lamented that acknowledgment of this- condition in our industry is now and then forced upon us by elementary questions about things which we thought were fully known to all railway operators — things really vital from the standpoint of holding dovvm one's job, let alone efficiency of management. For example, can you imagine a manager in a good sized tovra not know- ing even the rudiments of the safety car idea? But it is a fact. Would that we had the power to direct such managers to spend $50 to proceed to the nearest city operating safety cars, there to learn by sight what they have failed to absorb from volumes of printed matter and hours of discussion. This is a knoclj, but it is more than that. There can be no excuse for such neg- lect in keeping abreast of the industry on the part of a responsible management, and the knock is therefore a helpful hint to the delinquents to look about them now and then. The Forgotten Man in the Railway Tangle SOME forty years ago a prominent professor of politi- cal economy at Yale coined the phrase "forgotten man" to describe the individual in the community who is often entirely overlooked in a great many civic and other government betterment programs. For instance, A considers that it would be a fine thing for B if the municipality or state should make a grant of money to him or otherwise give preference to him over his fellow citizens. The plan is enthusiastically approved by B, and both arrange to carry out the project. The "forgot- ten man" is C, the average citizen, who is not consulted in the matter and whose only connection with the affair is to pay the cost of carrying out the idea so gener- ously conceived by A and so gratefully accepted by B. There is a forgotten man, or several representatives of that genus, in pretty nearly every traction dispute on fares. When an increased fare is proposed to cover the increased cost of operation, the municipal authori- ties are usually very conspicuous in their denunciation of the plan and give out lengthy statements on the hard- ship which will result to the populace, and indignant citizens write to the daily press in opposition or head delegations to protest in municipal councils. Undoubt- edly, both the authorities and the citizens (A and B in this case") are right in their contention that low fares on the local railway system are desirable as a means of community development. The trouble is that they forget entirely about C, at whose expense they seem to expect that this improvement will be maintained. A striking illustration of this situation has been given in New York City during the past week. The New York Railways, after trying for a considerable time to accomplish the impossible task of making a profit by carrying passengers at less than cost, passed into the hands of a receiver, who finds himself in a position where he cannot pay the rental of all of the I July 5, 1919 Electric Railway Journal 3 leased lines of the company. He has, therefore, an- nounced that he will be obliged to turn back the lines on Eighth Avenue and Ninth Avenue to their owners. This would mean, of course, that transfers would no longer be given between these lines and those of the New York Railways system of which they formerly con- stituted a part, and consequently that some of the car- fares in New York City will indirectly be raised. This proposed action of the receiver is being vigorously pro- tested by the city. "What?" they say, in effect, "Charge an additional fare at the points of intersection at which formerly transfers were given without charge? This is more than a hardship, it is an outrage!" If the present transfer law, which, by the way, was passed long after the companies received their charter to charge 5 cents, does not require transfers between two independent lines, these protestors seem to think it should be amended to overcome this defect. Now, all this is very well, but who is to pay the deficit which will be caused if transfers are continued? Surely, not the New York Railways. The company is insolvent now. Nor is there any reason why the owners of the Eighth or Ninth Avenue lines should bear the ex- pense. They are looking forward to beginning inde- pendent operation under not very cheerful circumstances and have already seen the market value of their securi- ties suffer a considerable fall because of the financial conditions now surrounding electric railway operation. The community has certainly no right, legal or other- wise, to ask the railway companies or any of them to make up deficits from operation. If New York City or its citizens want a service, they are rich enough to pay for it and they ought to do so. This is the only con- clusion which can be drawn from the Eighth and Ninth Avenue case. A Constructive Suggestion on the Use of Standards A CONSTRUCTIVE suggestion to assist in the more general use of standards is made in a letter con- tributed to this issue by Martin Schreiber, chief engi- neer Public Service Railway, and a member of both the American Electric Railway Engineering Standards Committee and of the recently formed American Engi- neering Standards Committee. In the past there has been a great deal of complaint" that while the idea of standards was generally accepted, very few railway companies actually employed them. Each company accepted the desirability of standards in the abstract, but when it came to purchasing equip- ment always seemed to find some reason why a modifi- cation, more or less important, in the standards should be made to suit that company's local conditions. The association obviously has no authority to order the use of any particular standard, and there the matter has stood. The experience during the war in reducing the num- ber of patterns in other lines of manufacture, however, has been a stimulus toward similar progress with elec- tric railways. The suggestion of Mr. Schreiber is that the manufacturers agree to refer to the association any departures from the standards which they are asked to make, and that the appropriate committee of the as- sociation should then endeavor to find out the reason for the change before the order is actually executed. Such a plan involves no sacrifice of personal liberty. If the change is a good one the standards committee of the association wants to know about it. If it is not necessary, the railway company presumably is equally anxious to be informed. The industry as a whole has an interest in this matter because reductions in cost of production will follow the greater use of standards, and thus every purchaser will be benefited. If the individual customer, after this examination, insists upon departing from standards and thus neces- sitating, perhaps, the preparation of new patterns or the cutting of new rolls, he is entirely within his legal rights. But the plan suggested, we think, would head off a great many unnecessary changes, and this would eventually mean that the price for the standard designs or rail sections would be less than that for the non- standard. As soon as this condition began to prevail, there would be a still further tendency toward the use of standards. We hope some steps can be made in the direction pointed out by Mr. Schreiber. Start a Third Rail Standardization Drive AN ARTICLE in the June 14 issue of this paper de- scribed some of the various types of third rail installations which are in use for electric railway opera- tion. One cannot fail to be impressed by the large num- ber of the different types, and the need for standardiza- tion. Climatic conditions and the necessity for protect- ing the third rail to prevent accidental contact appear to be the chief reasons for the development of most of the types. The question of cost is an important con- consideration and in a good many cases has proved mis- leading. It is a comparatively easy matter to obtain the Initial cost as so much per mile of single or double track, but this does not form a basis for ascertaining what amount will be involved for modifications, renewals and disturbances necessary to existing permanent way where electrification is undertaken to lines already existing. A further and probably the most important item is the cost of maintenance, which must be ascertained if a true estimate for comparison is to be made. Electric rail- ways have practically standardized the equipment for their power houses, plants, switchboards, substations, cables, etc. These can be ordered to fulfill the require- ments from the various manufacturers, but as soon as an attempt is made to equip the permanent way with an electrical conductor a wide divergence of opinion is found with no attempt at standardization. To the practical man familiar with the prevailing conditions there appears to be no difficulty in starting standardization. In such a consideration the weight, section, location of the conductor and method of con- tact should be the first consideration. The insulation, supports, sectionalizing and bonding would follow. The many points such as anchoring, expansion joints, clear- ances, protection, etc., could be taken up, but would of necessity have to be adapted to the various locations and conditions to be contended with. A standard clearance for third rail installations was adopted in 191G, by committees of the American Railway Association, the American Railway Engineering Asso- ciation, and the American Electric Railway Association. There is still much work that could be done along this line. Such an investigation made by our various electric railway association committees appears essential, if any advance is to be made in this matter. (I 4 Electric Railway Journal Vol. 54, No. 1 Practices and Tendencies in Japanese Electric Railway Transportation Both Double and Single Trolley Are Used. Track Gages Are Far From Standard and People Seem to Lean Toward Public Ownership By SHIRO SANO El.ectiical Engineer. Tokyo. Japan IN 1890 the Tokyo Electric Company imported two electric cars from the United States for the purpose of dem.onstrating the advantages of electric traction. These cars were purchased from the Sprague Electric Railway & Motor Company. They were used on the grounds of the Third National Exposition, held in Tokyo that year, and created a favorable impression. It was, however, five years before the experiment produced results, although in 1893 the Kyoto Electric Railway Company was organized with a capital of $150,000 (300.- bined railway and light companies is $152,000,000 of which $132..200,000 has been paid in. The annual income from railway service totals $15,500,000 not including the income from light and power sold by the railway companies. The annual car mileage last reported was 117,120,000, the corresponding number of passengers carried being 704,470,000. Although most electric railways in Japan are owned by private companies, some belong to the municipalities and still others to the central government. In the large 1904 I90( 1906 1910 1912 Tears 1914 191fc / 1904 1906 1908 1910 1914 191fc 1400 IJOO 1200 1100 1000 900 800 tt) 700 600 ^ 500 400 300 200 100 0 1904 1906 1906 1910 191? Yea rs 1914 I91(b ri<( )(.;K10S.S 0¥ EI.KCTI-UC RA1LWAY-S in .japan, left, CuMPANIES: center, CAPITALIZATION; RIGHT, MILEAGE 000 yen i . A 5-mile track in Kyoto was constructed and operation began on Feb. 1, 1895. In Kyoto one 25-hp. motor was used on each car, the car bodies as well as the motors were built in Japan and power was supplied from a water-power plant. As an electric car was looked upon as a serious accident hazard a special runner with a lantern in hand was sent ahead to herald its approach. The Kyoto Railway was a success from the start, and led to the construction of many other lines. To-day, according to the latest returns of the Department of Communications, there are ninety electric railway com- panies in Japan, including sixteen which have lines under construction. The total power consumption of the railways is not known exactly, as more than one-half sell power for lighting and other purposes. The power plant capacity is, however, 164,624 kw. The line mile- age is 890, the length in single-track equivalent being 1368 miles. Of the 4492 cars in use 4077 are motor cars and 415 are trailers. The aggregate capital for electric railways alone amounts to $15,700,000 of which $14.- 500.000 has been paid in. The total capital for com- cities the tendency seems to be in favor of municipal ownership. Of the six largest cities in Japan Tokyo, Osaka, Kyoto and Kobe have municipally owned railways while those in Yokohama and Nagoya are under private ownership. Electrification of steam railroads has made very slow progress in Japan but is promising for the future. The passenger steam railway operating in the outskirts of Tokyo has been electrified, but freight is still hauled by steam locomotives. The passenger traffic between Tokyo and Yokohama is now mainly done by electric power, where steam prevailed until a few years ago. The long tunnel at Usui has been completely electrified, passenger as well as freight trains being hauled by powerful elec- tric locomotives. This, however, is the only place where real electrification work has been done. The development of the electric railway industry in Japan can best be seen with the aid of the charts re- produced herewith. From these it is evident that rail- way enterprises have grown marvellously since 1907, due principally to the successful conclusion of the Russo- Japanese war and the general prosperity which suc- ceeded it. The charts show also that the railway com- July 5, 1919 Electric Railway Journal 5 panies have increasingly been engaged in ligiiting and power business outside their transportation activities. This may be explained by the fact that the net earning capacity of companies engaged in lighting and power supply is much greater than that of those engaged simply in transportation work. This point is taken up more fully in the following paragraphs. As a business proposition the electric railway in Japan is not very profitable. The latest returns available show that the mean dividend for companies doing a straight electric railway business is but 5.6 per cent per annum, this being the average for twenty-six companies. The corresponding figure for companies doing a combined railway, light and power business is 8 per cent, a mean value for forty-eight com- panies. The return to 442 companies doing a light and power business is 9.35 per cent. This ex- plains the tendency for railway concerns to take up lighting business as a side issue, particularly as a dividend of 5.6 per cent is not attractive to Jap- anese investors where average good concerns in other lines pay 10 per cent or more. The inter- ihMiiaiiiiiiiiitft in practice as to gage. The principal railway gages can be grouped into three classes, 4 ft. 8i in., 4 ft. 6 in. and 3 ft. 6 in. Thirty-nine of the present seventy-three electric railways in the country have the 3-ft. 6-in. gage, twenty-three have standard gage, ten have 4-ft. 6-in. gage, the remainder being divided between 2 ft. 6 in and 4 ft. 8 in. The prevalence of the 3-ft. 6-in. gage is probably due to the fact that this is the standard for steam railroads. The 4-ft. 6-in. gage owes its existence to local condi- tions. For example, in one case an old horse-drawn tramway had this obscure gage when it changed over its motive power to electricity. To avoid interruption to service the old gage was adhered to. There are two principal plans for charging for transportation in Japan, one in which the fare has some relation to mileage and the other in which a uniform charge is made irrespective of the length of ride. For obvious rea- sons the suburban and interurban railways use some kind of a mileage plan exclusively, while the tendency of the street railways is to use uni- AT TOP, SUBURBAN CAR NEAR TOKl'O ; DOUBLE TRdLLEY DOWN SINGLE TROLLEY UP ; NOTE BRIDGE CONSTRUC- TION ALSO. AT LEFT. EXAMPLE OF JAPANESE ELECTRIFICATION — INTERURBAN LINE BETWEEN TOKYO AND YOKOHAMA. AT RIGHT, ELECTRIC CAR OPERATING IN THE OUTSKIRTS OF TOKYO est paid at bank rates is 6 per cent to 7 per cent on fixed deposits in ordinary times, although at present the rate is lower due to extraordinary inflation of cur- rency incident to the war and the holders of national securities receive 6 per cent on paid-in value. Double Trolley Is Favored in Japan In the early development of electric railways in Japan there was a wide difference in opinion as to the system to be adopted. The dispute concentrated on the relative merits of single-trolley and double-trolley contact sys- tems. The general policy of the government at present is to permit the use of single trolley on suburban rail- ways only, the double trolley being standard for street railw^ays. Of six large cities, Tokyo, Yokohama and Kobe use double trolley and Osaka, Kyoto and Nagoya use single trolley. Although the modern tendency is to adopt the stand- ard track gage of 4 ft. 8* in. there is a great variety form rates. Some large cities, however, still adhere to the old system of divisional charges, in which the city is divided into a number of sections and a fare is charged in each. In Tokyo, Osaka and Kobe the uni- form rate is charged, while in Kyoto, Nagoya and Yokohama a division rate is the rule. In addition there are several kinds of special charges, such as those involved in the use of commutation tickets, season tickets, discounts for workingmen and students, dis- counts for school children, discounts for soldiers, etc. As an example of the special charges the practice of the Tokyo Street Railway will be given in full. These will be given in Japanese money, the yen having a value o about 50 cents in American money and the sen being worth one-hundredth of the yen. The single ticket is 5 sen plus a transit tax of 1 sen, making a total of 6 sen. Return tickets are sold for 9 sen plus 1 sen tax, a total twenty-trip commutation ticket, including transit duty, of 10 sen. Soldiers can buy return tickets at 7 sen. A 6 Electric Railway Journal Vol. 54, No. 1 costs yen 0.95, a thirty-trip ticket yen 1.40 and a fifty- trip ticket yen 2.50, Boys and girls attending middle schools or lower schools, properly indentified by school authorities, are entitled to purchase a twenty-five-trip ticket, including duty, for yen 0.80, and a fifty-trip ticket for yen 1.55. Other students and workingmen are entitled to ride on a single ticket, including tax, at 4 sen and a return ticket at 7 sen. This low rate of fare applies only during certain periods as follows : March 1 to April 30, 5 to 6.30 a.m. ; Oct. 1 to Nov. 15, 5 to 6.30 a.m. ; Nov. 16 to Feb. 28, 5.30 to 7 a.m. ; May 1 to Sept. 30, 4.30 to 6 a.m. As a prac- tical matter all riders during these hours are considered as either workingmen or students unless they specifically state that they are not. Regarding the transit duty of 1 sen, it will be noted that this is paid every time a passenger rides except in the case of commutation tickets. This duty is not re- stricted to street railways but extends to all public vehicles in the empire. Fare collection in Tokyo is done by means of tickets. A passenger on entering the car waits until the conduc- tor comes to him to collect the fare. On paying this he receives a ticket along with a transfer ticket if he desires one. At the transfer station he returns the original FORM OF TRANSFER USED ON CITY LINES IN TOKYO ticket. On boarding the second car he asks for another transfer if he desires one, retaining his first transfer as a ticket and surrendering it at the next transfer station if he desires to transfer a second time. This is continued until he reaches his destination. The date is printed on the transfer ticket and by means of a special punch having different figures the conductor punches the hour of transfer, to even half hours, the route number, the name of the transfer sta- tion and the destination. School children taking advantage of the special dis- count are required to change cars at the transfer station specified on the ticket cover. Workingmen's and students' discounts apply only in the specified hours mentioned but there is no specification as to the time when the return trip must be taken. With a return ticket two passengers may ride at the same time, thus saving 1 sen of transit duty. Commutatin tickets are sold both at the railway oftice and in the car and need not be used by the original buyer. There is no season ticket issued by the Tokyo Street Railway. $25 Per Month Is a High Wage in Japan Wages of motormen and conductors vary somewhat with location, but the recent scarcity of men in general has tended to raise the standard of wages and to even out the inequalities. At present a conductor or motor- man in Tokyo and other large cities receives about 30 yen. per month at the start, increasing up to about 50 yen as he acquires experience. In Tokyo a boy above eighteen years of age is eligible for work as conductor but twenty years is the lower age limit for motor'^ An apprentice conductor or motorman receives 5U 3. a per diem, and undergoes training for about fifty days before he is eligible to serve as a regular employee and to receive the 30-yen wage. Of late it ha3 been difficult to secure conductors or motormen since the great war created an abnormal demand for men of all classes, and high wages have been paid in other occupations. The present high wages are the result of this competition. The sum of $15 per month for a young man of eighteen just out of his apprentice- ship is a high wage, although the recent inflation o^ currency has boosted up the general prices of commodi- ties. On one electric railway an attempt has been made to employ women as conductors, and with excellent results. The proverbial modesty and kindliness of Japanese girls are said to do much to promote harmonious relations between passengers and conductors. However, this is an experiment and it is very doubtful if the practice of employing women on cars will prevaiL Tokyo Owns Its Street Railway System The city railway systems in Tokyo may be consideret' typical on account of the importance of the city. Here there were at one time three separate street railway com- panies, but these were finally combined into one and bought by the municipality. The result has been that the technical details of the equipment are rather com- plicated, as the original companies used different stand- ards of cars, rails, generator frequencies, etc. In the city, double trolley, with 500 volts direct current, is standard and the track gage is 4 ft. 6 in. Grooved girder, tee and step rails are used in different parts of the city. In general two types of cars are used, the smaller being four-wheel cars of 7 tons weight with a maximum carrying capacity of forty passengers. The larger ones are double-truck cars weighing from 9^ to lOh tons, with a capacity of sixty-six passengers. The city ovras 919 of the small cars and 530 of the larger ones. In Tokyo there is a track mileage of 79.8, or 159.2 miles of single track, and the power is supplied by a private water- power company. Besides the street railway owned by the city there is a government electric railway entering it and five more suburban electric railways terminate in the city. On these double trolley is used in the city, and the change is made to single trolley at the city line. Although the electric railway industry in Japan has made marked advance in the past, much is left for the future. Electrification of steam railroads is sure to come on account of the abundance of water power still undeveloped and the increasing difficulty of securing coal. High-speed transit in the large cities is of no less impor- tance, and there is still a field for interurban and subur- ban railways. In Tokyo, for instance, high-speed transit is ah acute necessity, and a project is now under con- sideration for the construction of an elevated and subway system. High-speed electric railway operation between Tokyo and Osaka, a distance of 356 miles by the presen'' steam route, is contemplated, and application has been made to the government for permission to put this proj- ect through. July 5, 1919 Electric Railway Journal 7 The Zone Fare in Practice LEEDS, PART I A City that Has Grown Rapidly without Any Aparlment House Development — Efforts Have Been Made to Cultivate Off-Peak Traffic — Trackless Trolley and Bus Service Also Conducted but Only as Feeders to the Trolley System — Comparative Bus and Trolley Statistics Are Presented By WALTER JACKSON BOAR LANE IN THE SHOPPING DISTRICT OF LEEDS 1EEDS is the great clothing center of England, located 185 miles north of London and exactly half- — iway to Edinburgh. In addition to the clothing industry, which is predominant, Leeds possesses great engineering works, a big leather trade and an unusual diversity of other manufactures. Coal mines and quar- ries are also in the immediate vicinity. In general, the best residential district is on high ground in the north, while the manufacturing district is in the river valley to the south and southwest. Since the rise of the manufacturing era, Leeds has grown apace, as is clear from the accompanying table of population and ratable value: Population 181 1 .. 62,534 1891 1861 207,149 1911 1871 259,212 1917 Ratable Value 1861 £504,885 1891 1871 759,896 1901 1881 1,125,852 1917 * Enlarged city of 21,593 acres. 309,119 417,051 *459,260 £1,279,213 1,741,373 2,258,486 Leeds is also in close touch with a number of smaller cities and towns which reported the following popula- tions in 1911: Guiseley (woolens) 4,925; Rawdon (woolens) 3,200; Yeadon (woolens) 7,442; Horsfortli (residential) 9,145; Pudsey (weaving) 14,027; Roth- well (colliery and residential) 14,279; Shadwell (resi- dential) 1,239, and Morley (woolens) 24,285. With these and some other communities, the population of the Leeds district amounts to approximately 500,000. Fur- thermore, traffic from these sources is supplemented by business with the city of Bradford (350,000 population) 9i miles distant. Leeds and Its Back-to-Back Houses At the risk of wearying the railway reader, it is desirable to present some further statistics on the sub- ject of housing to emphasize the fact that there is no special connection between congestion and the zone-fare system. It will be recalled that although Glasgow has the cheapest and most frequent tramway service in the world, the prevailing type of dwelling is the four or flve- story tenement ; while in New York City, with the most extensive universal fare existent, the elevator apartment house almost invariably follows the opening of rapid transit lines — the change of the Brooklyn section from small houses to big being especially marked. So, then, in examining the housing conditions at Leeds, one is struck again by the tremendous influence of habit, for Leeds, true to English predilections, has few multi- family houses. Out of 112,000 houses in the city of Leeds, 76,000 are of the odd back-to-back brick type that has become almost traditional in the Midlands and northern coun- ties. Since the common back wall of each pair of houses thoroughly eliminates open areas at the rear, satisfac- tory ventilation and lighting are considered impossible. Hence the construction of such houses was forbidden by 8 Electric Railway Journal Vol. 54, No. 1 the housing and town planning bill passed by Parliament in 1909. Although the back-to-back house would seem to be economical of ground space because of the absence of yards, the contrary is the case. In the first place, the houses are only two stories high and made for single families. In the second place, the blocks are extremely narrow, with the result that a most disproportionate area of land is taken up by paved streets — and these serve largely for laundries, playgrounds and other uses incident to the needs of the inhabitants. One curious consequence of having so many extremely short blocks is the ingenious variation of the names of thorough- fares. One often runs across a series in which every synonym for a passageway has been exhausted, thus: Hunslet street, avenue, terrace, road, mount, lane, crescent, grove, hill, parade, promenade, gate, etc.! Although further construction of the back-to-back house is forbidden, som.e particulars of the several types an attic bedroom of 140 sq.ft. One group of such houses showed a frontage of 21 ft., a combined depth of 30 ft. for two houses, a basement height of 6 'ft. 3 in., a first- floor height of 9 ft., a second-floor height of 9 ft. 8 in. and a total overall height of 39 ft. 6 in. to the ridge. In a statement concerning the housing and town plan- ning bill of 1909, the Lord Mayor and Aldermen of Leeds protested against the summary prohibition of back-to-back houses. After quoting the extremely low death rate of Leeds in comparison with other British cities, despite Leeds being an active manufacturing district, the protest went on to say : It is presumed that the object of the bill is to secure better dwellings for the working classes; but the view taken by the corporation is that should the clause prohibit- ing the erection of back-to-houses pass into law, the posi- tion of the working classes in Leeds, as far as housing is concerned, will be worse than it is today. The effect of the clause will be to make compulsory the building of large tenement dwellings, which, unless there is a great change in public opinion, will never be fully occupied, or in the alternative will compel the building of through houses 1^0 r/mos — S T R E e T 14- Yards Vi i d e S T n c E T 12 Yards Wide Street f 2 yards w / o e Street /4 Yards W / s T a t E T 14 Yards wide Street /. Yards Wide \ r Type 1 Type 2 BLOCK AND STREET PLANS OF LEEDS BACK-TO-BACK HOUSES Type 3 used in Leeds, illustrated herewith, may be given as a matter of record. Type I — The ideal houses are in groups of eight without • any forecourt, but with an open space of 15 ft. at the end of each block, abutting upon streets not more than 360 ft. in length and 42 ft. wide. This means a space of 72 ft. between buildings made up of the street and forecourts. In these houses the basement has a coal place and pantry; the ground floor a kitchen and scullery, with bath, divided into 165 sq.ft. of kitchen and 66 sq.ft. of scullery; the second floor, one bedroom of 145 sq.ft. and another of 64 sq.ft.; the third floor, an attic of 185 sq.ft. The toilet facilities are located between each group of eight buildings. Type 2 — The second oldest houses are in groups of eight with forecourts or gardens 6 ft. deep and with an open space of 15 ft. at the end of each group, abutting upon streets not more than 360 ft. in length and 36 ft. wide. This means a space of 48 ft. between buildings. In these houses the basement has a coal place and pantry; the ground floor, 176 sq.ft. of kitchen besides the scullery; the second floor 176 sq.ft of bedroom besides a bath and toilet; the third floor, an attic of 176 sq.ft. and another attic of 48 sq.ft. Type 3 — ^bout one-half of all the back-to-back houses are,' of the latest sort, in a continuous row with forecourts or gardens of at least 15 ft. in depth, abutting upon streets not more than 360 ft. in length and 36 ft. wide. This means a space of 66 ft. between buidings. The basement has a wash cellar in addition to the coal and larder sec- tions; and the ground floor a living room of 186 sq.ft., a scullery of 66 sq.ft. and a bath; the second floor, one bed- room of 162 sq.ft. and another of 64 sq.ft.; the third floor. only, which will mean occupation by two or more families, that being the only way in which the people will be able to pay the necessary rent. The working classes in the city have a decided aversion to tenement houses, which are the only alternative to back- to-back houses (on the assumption that each family is to occupy a separate dwelling), for it has been found in working-class districts the houses are in many cases oc- cupied by two or more families, a state of things which is conducive neither to morality or public health. It is obvious enough from the foregoing that apart- ment-house life is not palatable to the Englishman des- pite its possibilities in reducing work for the housewife and other conveniences like central heating. In earlier days the efforts of the Leeds municipality v,'ere concentrated on the elimination of slum areas (£775,928 for clearance work alone) and the widening of streets in the business section. The capital expendi- tures for street improvements had run up to £2,500,000 by 1917. In late times the purchase of land for housing projects has been taken up ; by 1917 the city had put up fifty-one houses. In 1918, however, war conditions made it impossible to put up more than five. The need for new buildings is emphasized by the fact that the number of vacant houses dropped from 7144 in 1911 to 462 in 1917. Of course, many of these houses are such in name only. July 5, 1919 Electric Railway Journal Within the present city limits Leeds has already acquired for housing development, on the basis of ten to twelve houses to the acre, the following sites : Stan- ningley Road, 53^ acres; Hawkesworth, 70 acres, and Cross Gates, 831 acres. The real garden city develop- ment, however, would be on the south side of the River Aire at Middleton, where theie is room on 450 acres for more than 5,000 houses and gardens on a plateau about 500 ft. high. The City of Leeds already owns in this neighborhood a public park of 350 acres, but the housing development is dependent upon Parliamentary sanction to permit the extension of the city boundaries travel is coming later on account of the shorter work- day. Engineers now start at 7:30 instead of 6 a. m. and the mills are also expected to make 7 a. m. their opening hour. Outdoor workers begin at 7 a. m., many factories at 7:30 to 8 a. m., and most offices and stores at 9 a. m. These changes are going to sharpen the morning peak, but this disadvantage may be offset by eliminating many of the less-than-cost workmen's cars, which must be boarded before 7:45 a. m. to get the half- rate fare. Besides making frequent traffic checks to determine the influence of these important changes, the Leeds Type 1 to include the areas re- ferred to. In connection with the Middleton develop- ment J. B. Hamilton, gen- eral manager Leeds City Tramway, is already plan- ning a right-of-way service that will enable workmen in Middleton to travel 3 miles to or from work in twelve minutes or less. This will give most of the residents a clear half hour for lunch. In this way, the line will get a better load factor, and the patrons of the line will get more pleasure out of their home life. The first cars on the Leeds City Tramways are out at 4:30 a. m., and the last cars leave the center of the city at 11: 30 p.m. This is half an hour earlier than before the coal stringency, which led to a cut of 15 per cent of the mileage of some lines. Leeds, however, developed so many munitions factories that the actual total mileage was practically unchanged. The traffic characteristics graph, such as that given on page 12 for the Headlingley route on Oct. 21, 1918, shows the first peak between 5 and 6 a.m. outbound and from 7 to 8 a.m. inbound, between 12:30 and 2:30 p.m. both ways, between 5 and 6 p.m. outbound, between 7 and 8 p.m. inbound and again between 7 : 15 and 8 ; 30 p.m. out- bound. Roughly, there are three peaks, morning, noon and night. As in other British cities, the early workmen's Type 3 prom the old to the new with leeds famous back-to-back houses Type 2 tramways management has taken up the subject of staggering the hours of work. The employers are agreeable enough, but it is harder to convince the em- ployees. Many of the lat- ter live so close to their work that tramway com- fort means little to them, and they do not care to dis- turb the hours of opening and closing unless, per- chance, they do the disturb- ing themselves ! In gen- eral, all routes are continu- ous through the center of the city wherever possible. This is shown in detail in Table I on page 10, in which the through routes are bracketed. One of the first points to be observed from this table is the sizable length of the routes, even when considered from the through-routing basis. This shows that there is ample open ground accessible, although for topo- graphical and industrial reasons the development has not been uniform. A second point to be observed is the splitting up the through services where traffic on opposite sides of the center is uneven, such as the division of the Upper Wortley service among Killingbeck, Halton and Sea- croft, or again supplementing of the Harehills Road service from Haddon Place by cars from Beeston. Through this division and overlapping of services, the actual headways available at the more important traffic 10 Electric Railway Journal Vol 54, No. 1 gathering points are better than the tabulation indicates. It is fully realized that the zone fare compels short headways, for otherwise the low fare alone wouid not attract so great a proportion of short riders. There is food for reflection in the fact that one of the first altera- tions made in the service by Mr. Hamilton when he came to Leeds in 1902 was to substitute a five-minute service with single cars for a ten-minute service with trail- ers, the response being an immediate jump in short- haul traffic. Nor does the operation of the zone fare interfere with the economical use of car mileage as obtained through turnbacks. For example, on the 13.62-mile Roundhay Guiseley line, the service to the first turnback, Haddon Place, 2 miles out, is two and one- half minutes, and to Horsforth, G miles out, five minutes, leaving a ten-minute service in the four-mile open country run to Guiseley. As shown on the route and fare map, the central gathering places for the converging routes are near the Town Hall and Briggate (Street). The great loading point is on Briggate, where the cars arrive about every thirty seconds during the rush hours. Here, the open or sidewalk queue system has been superseded by some- thing more efi'ective, owing to the fortunate circum- stance that Briggate is a reasonably wide street. It has been found feasible, since the spring of 1918, to use railed passage ways divided and marked for the various routes. Outgoing cars refuse to accept passengers at certain discharge points in the congested district, and prospective passengers make use of the stockades at all times of the day. Such means have proved most effec- tive in avoiding unnecessary and unfair crowding. The standard car seats twenty-four below and thirty-six above. All passenger interchange, except at heavy load- ing points, is on the rear platform only. The schedule speed for the system as a whole is 7.72 m.p.h. with free running speeds of 16 m.p.h. in the outer areas. Prior to the coal-saving measures, stops As commercial manager of the City of Leeds, John Baillie Hamil- ton ("JB") holds an unusual posi- tion, but one similar in several ways to that of city manager, which has made considerable headway wherever American municipalities try to keep business principles and political job- bery apart. Mr. Hamilton has been general manager of the Leeds City Tramways since 1902, coming direct from the position of chief assistant at Glasgow except for a pleasure-and-business interim in the United States. The title of commercial manager became added in this way: During 1913, when the public services of the city were paralyzed by strikes, the Council of Leeds appointed a committee of five to co-ordinate and re-organize the work of the several departments affected. To concen- trate responsibility, the Council deemed it necessary to engage one executive. The office of commercial manager was therefore created, and Mr. Hamilton was asked to add this to his other responsibilities. One of the most import- ant features of the commercial manager's work is the em- ployment bureau. All applications for work must be made to this bureau, and when a department head needs help he must draw upon the list supplied by the bureau. This avoids undue pressure on the department head and goes a long way toward preventing the creation of easy and need- less positions. Mr. Hamilton is also surveyor of highways and superintendent of the street-cleaning department. Since he is in charge of all highway facilities, he has used his tramway experience to save paving charges by transfer- ring heavy drayage to electric motor cars where possible — a unique situation indeed! During his off-hours, Mr. Ham- ilton acts as a consultant on all transport problems and specialist in rate cases, valuation proceedings and the like. were spaced 540 to 750 ft., but the present range is 660 to 900 ft. Most of the tweive traffic regulators and timekeepers are stationed in the downtown district, as the ticket inspectors also handle traffic along the line. Telephones are installed about every i-mile for emer- gency and general traffic regulation use only. How Traction on Tires Works Out The Leeds City Tramways offer interesting examples of every kind of urban and suburban surface transit. From a car route like Hunslet earning 22.04 d. (44 cents) a car-mile to a motor bus earning only 9.65 d. (19.3 cents) one gets nearly the entire range of economics in highway transportation. Therefore, the experiences of the Leeds lines and the deductions of the management should prove of more than usual interest TABLE I.--THROUGH-ROUTIiNGS OF TRAMWAYS IN LEEDS Route .Street Railway:* Hunslet Balm Road Cardigan Road Dewsbury Road Harehills Dewsbury Road Compton Road Beeston Woodhouse Stiett. . . . Beeston Harehills Rood Park Gates (Beeston). Belle Vue Road jMorley Meanwood Domestic Street Victoria Read Whitehall Road Lower Worthy Easy Road. Upper Wortley . Killing' Route Length Maximum in Miles Minu 2.00 3 2.23 7i 2.50 4:73 n 2.61 4 2 03 J 4. 64 8 2.61 4 1 87 4' 48 8 2 32 5 2, 14 4.46 10 2 32 5 1.89 A.Zi 10 1.79 3 2.49 4.' 28 10 6.35 7i 2 69 9!64 n 1.70 10 2.00 3; 70 10 1.46 10 2^9i 10 1.95 4^86 10 3.05 4 2.33 5! 38 4 3.05 4 3.24 6^29 10 3 05 4 3 17 6^22 10 5.48 5 6.61 15 5.75 10 3!68 1 5 9.94 1 13^62 10 3.68 1 5 5.45 1 9. i3 5 3 68 1 5 3.33 1 7.0\ 5 2.00 1 24 1 .89 i 3. 89 2 4.58 1 10 5. 14 / 9.72 10 3. 14 3 2.80 I 5^94 3 length igbeek. Upper Wortley. Halton Upper Wortley. Seacroft Stanningley . . . . Pudsey Rodley Roundhay Guiseley Roundhay Horsforth Roundhay Kirkstall Haddon Place. . Harehills Road. Lawnswood .... Street Lane. . . . Headingley Chapeltown .... * Total single track, approximately 121 miles; double (rack route approximately 54 miles. Trackless Trolley; Farnley 4.01 30 Guiseley and Otley 3.19 20 Guiseley and Burley 2.91 .... 40 Motor Bus: Moortonn and Shadwell 2.72 .... 45 to operators who are worried about the possibilities of traction on tires instead of rails. One rail-less or trackless-trolley car is operated as an extension of the Guiseley line to Otley 2,1 miles distant along one road and to Burley 3 miles distant along another. Otley has from 10,000 to 12,000 people and Burley from 5,000 to 6,000 but the intervening country is sparsely settled. In summer this district is a vaca- tioning ground to which the tramways carry a heavy travel, but for the greater part of the year nothing better than a twenty-minute maximum and sixty-minute hourly service appears justified. This is indicated by the return for the week ended Feb. 8, 1919, when the total traffic was only 7,691 passengers for 1,688 bus- miles. The maximum fare, which is slightly higher than the street-car fare basis is 4d., and the gross earn- ings per bus-mile for the week named were 13d. This service has now been operated for five years with a 28- July 5, 1919 Electric Railway Journal 11 passenger vehicle whose driver is assisted by a boy to care for the collection of fares. The trackless trolley service to Farnley, 4 miles dis- tant, is operated directly frovn the center of Leeds, although it runs along the Tramway tracks for 1 mile. The service on this route varies from twenty to thirty minutes. The maximum fare is 3d. For the week ended Feb. 8, 1919, 7409 passengers were carried a total of 1421 bus-miles, and the earnings were ll.OSd. per bus-mile. Of still less importance than the trackless trolley services is the extension bus line (2} to 3 miles long) to concerned, that form of operation cost about 2d. per mile more than the trackless trolley. It was justified chiefly in localities where the permanence of develop- ment was uncertain or where the business fluctuated because of market days, holidays, outings, etc. Quite recently Mr. Hamilton was one of a board of three engineers which carefully considered whether it would be preferable to use motor buses at Edinburgh or to electrify the cable system. The decision, as noted in the article on Edinburgh, in the Electric Railway Journal of May 3, 1919, was to electrify, a few buses being used only until such time as certain extensions \i END OF TRAMWAY CU/SELEy ADEL CUM ECCUP A LWOODLEY Leeds trolley system /f auxiliary seri^ices Outside connecting lines either trolley ordus • = 6d Where only one emt'lem is s/iown i/ie distance is measured /rom the center of the city. DRICHLlNCrON Ml DDL ETON • • , ROTHWElL ROUTING OF LEEDS TRAMWAY SY'STBM AND LOCATION OF STAGE POINTS Shadwell. This has no fixed headway, the bus making eight round trips between 8 a.m. and 6.30 p.m. to suit the convenience of its patrons, the country cottagers. For the week ended Feb. 8, 1919, the bus carried 1248 passengers. The number of bus-miles run was 272, and the intake per bus-mile, 9.65d. In discussing the reasons for the installation of these services, Mr. Hamilton said that he regarded the track- less trolley simply as a means, where good roads were available, of putting down a tramway on the installment plan. Tracks would be justified when the density of population reached say 5000 per mile or route, or to put it another way, when the traffic warranted a head- way of at least ten minutes. As far as the bus was could be built. Mr. Hamilton's arguments ject were expressed fully in a paper c senger Transport" read by him bef^ Tramways Association conferenc lowing quotations from the par- as they also take up the opening Mr. Hamilton " In many provincial to the introduction of tral and older parts of ti The provision of a reg'u center of the city and the \ fares, at frequent intervals pletely metamorphosed the t. parts of the town. ... In . 12 Electric Railway Journal Vol. 54, No. 1 14| 14 '2, I I 2 10 (S^CiOOOOOOOOOO — — — — ~ — — Traffic Receipts per Mile with 1895, just shortly after the corporation had taken over the working of the tramway under- taking, the population residing in the two central business wards of the city has decreased in one case by 25 per cent, and in the other by 35 per cent., while during the same period increases from 40 per cent to 60 per cent have taken place in dis- tricts outside the central zone. The requirements of the form of traction necessary to meet the (city) conditions which I have outlined must first provide for vehicles capable of dealing with large variations in the number of passengers. . . . One car may have practically no passen- gers, while the following car may have from forty to fifty. The size of the vehicles should, therefore, be capable of meeting the public requirements by hav- mg a large carrying capacity. The point in the whole matter is that if a vehicle with a capac- ity of approximately sixty (seated) passengers can be pro- vided at the same cost as or less than a vehicle with a capacity of about thirty-four (seated) passengers, then even at the less busy periods of the day it is very likely to pick up more passengers, and, at any rate will carry them, other things being equal, with greater comfort than a smaller vehicle possibly could. Worby Beaumont's alternative to the tramcar, viz., the motorbus, with its strong smells and its tendency to skid, and with the fact that at the rush periods of the day every tramcar as at present would be represented by two motorbuses, will produce a mental picture to every delegate here of the condition of congestion and confusion which would occur every day in the central thoroughfares of the towns they represent. I have said that the carrying capacity of a motorbus is only half of a tramcar. ... In inclement and rainy weather the effective carrying capacity of the motor bus (open tops) is further reduced by fully one-half. Surely if there is any obstruction caused by tramcars, the cure proposed — that of substituting four buses for one car — is worse than the disease. Continuing, Mr. Hamilton said that the large bus development of London was due to conditions almost unique, the streets being too narrow for any kind of rail traction. Finally, on the basis of all the figures of bus costs then available, Mr. Hamilton calculated ;v.M. -^NoonK 2^ 10 9 ' 2 o ^5 6 - 5^ - 5 - 4^ _ 4 3i (yiCSIOOOOOOOOOO ■ Mileage Run RECEIPTS PER CAR- MILE, PASSENGERS AND MILEAGE IN LEEDS SINCE 1898 Note — Passengers per car- mile were 13.04 for year ended March 31. 1918, as compared to 11.61 for pre- ceding year. o^cy>oooooooooo — — — — — CO cool criC5>a^ 0^CT><5>'^O(5iTi<5^cr^'3>^C^G^OC5) Passengers • Carried 2 = T LINEJROM / \ / /\ 1 1 1 — -j A t "J ' — U NE ■ C1T1 TO/ r ' — s V P.M. Number of Cars per Hour to City 14 19 19 14 12 n 18 18 18 17 18 10 20 12 .8 4 Number of Cars per Hour from Ci+y ■s^ :^'^^'^f'ylf*^i^IO"W•ING NUMBER OF PASSENGERS PER HOUR ^A^^i^^-? -i^fl CAR ON HEADLINGLET ROUTE AT LEEDS that in Leeds motor-bus operation would cost £137,600 a year more, leaving a deficit instead of a surplus (for relief of the rates) of £61,000. The annual cost per seat for motor buses compared with cars in 1912 was as £47 to £23. One other variety of electric railway operation at Leeds remains to be mentioned — inter-operation with adjacent undertakings. Perhaps the service to Brad- ford, 94 miles distant, is most notable as it represents the earliest important attempt to overcome both the legal and the physical handicaps of inter-operation. Leeds has a gage of 4 ft. 8* in., and Bradford one of 82 in. less. This made it necessary to devise an axle of expanding type so that the same cars could be run on both gages. This was successfully operated for five years, but owing to the shortage of equipment and the greater difficulty of maintaining non-standard appara- tus, trucks with expanding axles had to be temporarily- discontinued late in 1918. It has been observed that the absence of through- car service perceptibly injures travel despite the fact that the transferring passenger always finds a connect- ing car waiting for him. This traffic is quite consider- able, 61,395 passengers being carried during the week ended Feb. 8, 1919. For the same week, the mileage run was 6940 and the earnings 16.30d. per car-mile. The service is given in competition with steam trains, which lost a large part of their travel when the government made a general rate increase of 50 per cent. A through- running arrangement is also in force with Wakefield, 9i miles distant. Contents of Later Article In the second and concluding part of this descrip- tion of the Leeds transportation system an account will be given of the fares charged and the labor condi- tions, with statistics of operation. The method of ac- counting for fares will be described and illustrated with reproductions of some of the blanks used. July 5, 1919 Electric Railway Journal 13 Optimism Prevails at Pennsylvania Association Meeting Pronounced Spirit of Fairness and Helpfulness of Commissioners, In- creased Riding Due to Populations Returning to Pre-War Normal, and Revenue from Increased Fares Serve as Antidotes for War Period Gloom IN SESSION when the world's most momentous peace document was being signed, the electric railway men gathered in the annual meeting of the Pennsylvania Street Railway Association at the Penn-Harris Hotel, Harrisburg, Pa., on June 27 and 28, seemed to sense the beginning of a new order of things in the electric railway industry contemporary with the optimism and hopefulness for a new order of things in the political world. They realized they were rapidly emerging from the war conditions and that the outlook for the future, as it may be interpreted from the attitude of the public and the commissions and from the comparison of operat- ing revenues of the last few months with those of a year ago, was most encouraging. This meeting of the Pennsylvania association was the first regular meeting since before the war, the annual meeting of a year ago having been simply a small business session at which the officers were elected and other essential work done, and the members gloried in the renewed interchange of ideas and discussion of their respective operating conditions. Undoubtedly the principal encouragement the mem- bers took home with them from the annual meeting of this week was contained in the informal address of Chairman William D. B. Ainey, of the Pennsylvania Public Service Commission. Some of his remarks were reiterations of thoughts he had expressed before the mid-winter meeting of the American Electric Railway Association and before the Chamber of Commerce of the United States at its meeting in St. Louis in April. But the note of sympathetic approach to the electric railway problem, which he has pronounced as the atti- tude of the Pennsylvania commission and the one which should actuate all public service commissions to render helpful assistance, will bear much repetition. He was anxious to make clear to the members this spirit of help- fulness with which the commission undertook to solve the problems of the public utilities which constantly come before it. He said that the commission felt that the great corporations were as necessary as the air we breathe and the food we eat, and considered them to be in a sense wards of the commission, though of course recognizing the obligation the commission holds to the public. In this work the commission has carefully refrained from setting itself up as being able to operate the properties better than the manage- ments, feeling certain that the railway men knew better than any member of the commission how to op- erate their properties. He wanted to get away from the idea that the public utilities commission should occupy a position of antagonism toward the railways. The commission, he said, was not a court, but an inquisi- torial body, before which the railway men were invited to come and talk over with the commission their respec- tive problems, so that they might be fully appreciated and the commission might then act in a manner which would be helpful and not in any sense as a judge be- fore the court. The aim of the commission was not to render a iudgment against any one, but to give a decision in each case which would be fair and just to every one. The court must weigh the evidence pre- sented, but the commission can go beyond this and invite information and seek to help in the solution of the intricate problems of the utilities. Commenting upon the paper on methods of analyzing passenger traffic by R. H. Horton, which had just previously been read, Mr. Ainey added the important thought that traffic studies should not stop with the people who do ride on the cars and where they go and when, but should also study the courses of the people who do not ride. The enormous number of people who walk represent to a certain extent potential riders, and if data were at hand regarding the movements of these people, it might be used as an important guide to the company in providing a service which would attract their patronage. A large proportion of the walkers represents a revenue which belongs to the street rail- way companies, and having proper information they should go after it. Later in his talk he referred to this source of revenue as the unearned increment of the electric railway business. Complaint Department of the Commission In the course of his talk Mr. Ainey referred to the manner in which the old Greeks classified all strangers and things about which they were unadvised as enemies and in a spirit of antagonism, and then referred to the great value of keeping the public informed of the causes of failures and delays in the service, many of which were beyond the control of the company. He also told of the informal complaint department of the commission and pointed out how he believed this to be a proper function of the commission work. The pyschology behind this department is really the impor- tant thing, for the public in general seems to prefer to address its complaints against public utility com- panies to the commission rather than the companies, since it feels that the commission is a disinterested body and therefore inclined to be more fair and responsive. This department of the commission serves as a clearing house for a great number of complaints, the great ma- jority of which are probably inconsequential. These are all treated with care, however, and are usually re- ferred to the company concerned, thereby giving it an opportunity to call upon the complainant and discuss the causes of the complaint, this usually resulting in a much better understanding between the person and the utility. 14 Electric Railway Journal Vol. 54, No. 1 Taking up the discussion of fares and revenues for the utility company, Mr. Ainey said that the commis- sion had no objection to or antipathy against any rate of fare, whether it be 5 cents, 6, 7, 8 or 10 cents. Before granting any particular rate of fare, it was simply interested in knowing whether the company had gone deep enough into its own problems to know that the rate of fare desired was necessary, and then whether there wei'e not other elements than the increase which might be taken advantage of to produce the re- sults without the fare increase. The commission is of course duty bound to go into all factors in the interest of maintaining a reasonable fare for the riding pub- lic and at the same time in the interests of retain- ing to a company a large share of its potential passen- gers; in other words, to make sure so far as it is able that the fare proposed will not react to the detriment of the company rather than to its advantage. It is the duty of the commission to join with the companies in rendering good service, and only as they have ade- quate revenues can this end be accomplished. In other words, the commission and the companies come to the same end in striving to serve the public, for they are both interested in the prosperity of the company. The hearing of a company in a rate case involves two factoi's, the first being the determination of how much additional business may be secured by proper service and mer- chandising methods, and then how much additional revenue must be derived in the way of a fare increase in order to bring about the desired revenue. Mr. Ainey thought that the minds of the manage- ments should be directed toward the fact that a great many companies are burdened with intercorporate obli- gations and corporate complexities which bring about undue overhead expense and that there must some time be a lessening of these burdens. Mr. Ainey took occasion to break down the barrier which he said existed in many operators' minds that it was necessary in order to avoid discrimination, to have one rate of fare all over a property. He said that there was nothing in the law against discrimination, but rather unjust discrimination. The zone system of fare collection does not necessarily add any burden upon the public through its diflferentiation between riders for the conditions of length of ride, service, etc. He did not expi'ess himself as to the value or effect that would re- sult from the use of the zone system, but simply clari- fied its legality. Compensation for Efficiency Mr. Ainey sounded a new note in commission regula- tion of utilities when he asked the help of the companies to solve the problem of compensation for efficient man- agement. He said it was his belief that there was something radically wrong in not giving compensation or recognition to the well-regulated and operated property as compared with the return to the poorly managed property. He said there must be some formula which will recognize good management and bring back an incentive for that. He expressed his sympathy with greater return so earned, and said that such compensation would make a spur to the company to practice economy if it could share in the results. The company should not have to strive for efficient management with the motive of preserving life, but to the end of earning more for the stock- holders, provided that the public would likewise benefit through such economy and efficiency in operation. ADDRESS OF THE PRESIDENT In his presidential address, Gordon Camobell, presi- dent York Railways, referred to the war and the in- evitable after-war conditions in this country and abroad. He mentioned particularly the effect of these conditions on the electric railway industry and the higher cost of material and labor. Some companies have received power to increase rates, but there are others where this permission has not been granted. The speaker did not think much could be expected from referendums on the rates of fare. It is true, people realize that costs have increased, as when they pay ten cents to the baker for a loaf of bread which they formerly bought for 5 cents. But, he asked, would they vote for a higher bread price if they had an opportunity, merely because the baker argued that the price of wheat was higher, and that without an in- crease the ultimate production would decrease and the public interest suffer? These questions of utility rates, in his opinion, should be left to a responsible commission, having in mind the ultimate public interest. The wrecking of electric railways would be a public disaster. Increases in revenue are necessary and can be obtained only by increased rates of fare. A 10-cent fare to-day is no higher, measured in commodities, than a five-cent fare was formerly. Any reduction from the 10-cent fare would therefore be a reduction in price. Adjustment of fares for the depreciation of currency will bring increased revenues, in his opinion. He quoted Pro- fessor Fisher on the future trend of prices and pointed out that if later prices should decrease, fares could bo lowered. Continuing, Vie said : While open to consider any device or method of reducing operating costs, let us not give encouragement to the idea that reduced fares can be maintained thereby. This is al- ways a popular idea but at this time is rather dangerous. New things cost money. They require capital. They are experimental, and if time proves that we were on the wrong track another "mistake of management" is charged up to us. Let us meet the main issue first, that revenues must be provided. And if, under commission supervision, satisfactory service can be produced for lower fares, let that be fully demonstrated first. It is easy to lower fares. And, in principle, we believe that the lowest price at which trans- portation can be sold profitably is the best price. How about fixed charges? It is said that car fares need not increase because fixed charges have not increased and form so large a part of the cost. But less than one-fourth of the receipts are now applicable to fixed charges. Fixed charges have increased continually and must continue to increase. True, they cannot be reduced, for which reason we cannot stand a reduction in revenues, but in order to keep pace with the public needs we must buy more cars, more power facilities must be provided, paving (imposed on us by city ordinances) is continually extending. It now requires $2,000 to pay for what could formerly be done for $1,000 and rates of interest have increased. These same facts apply to depreciation. It will cost more now to re- place property when it becomes worn out or obsolete, and it behooves us to set aside a greater reserve for deprecia- tion. Now, it is true that in readjustments interest on fixed investments has not increased, and thereby the holder of bonds is a sufferer. His 5 per cent interest will only buy half what it formerly did. He has our sympathy, for he has provided capital for the development of public utilities which the public now enjoy. We cannot argue for an in- crease in return to the former investor in bonds, but we can say this for him: It is our bounden duty to keep faith with him; to see that the interest return he is entitled to is assured to him; that his property is not run down and July 5, 1919 Electric Railway Journal, 15 wasted but maintained in a high state of efficiency; that ample reserves be provided for contingencies and that his property should show earnings, not merely sufficient to pay his return but to assure it doubly and to provide a fair return to those who have operated the properties in the joint interest of the public as users and of the public as investors. The Proper Basis For Fares After referring to the hope of the industry that the Federal Commission would be of help in bringing about a recognition of the infallible underlying truths of the industry, Mr. Campbell discussed methods of proportion- ing fares. He referred to the zone plan of the Public Service Railway of New Jersey, and gave the theory of the zone fare advocates, which was, first, that it is more equitable to distribute the cost in proportion to distance traveled, and second, that by preserving the short-distance riding revenues will be maintained with the lower general scale of prices. He thought that ex- cept under certain conditions the volume of this short- distance riding might be overestimated, and that this plan placed the burden of providing the increased reve- nues on part instead of all of the riders, though for some longer hauls he thought higher fares are in order. Besides the short rider, there are two other classes of patrons who might be entitled to special consider- ation. According to the speaker, they are: First, the regular rider, the man who, rain or shine, rides twice or even four times a day, bearing his full share of the cost of maintaining the service, while there are others who only use the cars in rainy weather or when their motor car is undergoing repairs, generally on the most crowded trips. It does not seem right that this latter class should have this service at their command without paying a serv- ice charge. Second, the off-peak rider. This plan was suggested by the Bay State Company. The arguments in favor of would, no doubt, be that it would induce those who could do so to ride at other hours than those of heav- iest travel and that, when the travel is light, those who might otherwise walk would be induced to ride. We have thus three conditions which might be considered in the theoretical construction of rates for street railway transportation. But, are not these only diversions from the logical conclusion that the car fare should increase as the value of money falls? If this increase could have been gradual and in inverse proportion, there would, no doubt, have been no disturbance in the normal travel. Unfor- tunately, this was not practicable. Unfortunately, relief has been delayed too long in some cases and is too timidly applied in others, and the results, I fear, will be costly reconstruction in many places. What The Public Wants The speaker thei. referred to the work of the execu- tive committee during the year, the coming hearings on the question of increased compensation for carrying United States mail, and the activity of the legislative committee in protecting the companies from the effects of ill-advised legislation. Concluding, Mr. Campbell said : The question is asked. Why are the street railways so unpopular? Is it because they have been for a long time trying to do something for less than it was worth, the re- sults being reflected in the wages and the service? Is it because they are tax gatherers — for the street railway col- lects from all its passengers a tithe for government taxes, another for State taxes, a tithe for city taxes and another to pay for paving the city streets? Is it because they make no concessions? But the street railways do generally carry child ren for half fare, smaller children free, baskets and bun- dles without charge, policemen and firemen of the city free, and in many cases they have assumed expenses, willingly or otherwise, as a concession to public opinion. But are they really so unpopular or is this hostility subjective in the mind of the propagandist and only objective in the public mind? Of course, people generally "knock" the public servant. They have to complain of something. We know how it is ourselves. We used to complain of the servant at home. We don't now, for there is none. Well-intended criticism is to be taken seriously, but ordinary grumbling probably reflects the momentary frame of mind of the complainant. If we give the full service which we honestly believe is the public due, striving ever to better it, we can ask the return with a clear conscience. It is my own belief that the real demand of the public is good service, rather than cheap service. The class of travel which we have lost came from those who can afford the very much higher cost of private automobiles. Possibly, before long some will travel in the air with still greater elements of cost and risk. Likewise, I am an advocate of fair wages and conditions for our employees. We have it on no less authority than the President of the United States that if we have treated the people from whom we are making our profits as they ought to be treated, if we treat the employees whom we use in earning these profits as they ought to be treated, if our methods of com- petition are clear and above reproach, nobody will be jealous of our profits. Do not understand me as under-estimating the difficulties. This is not to be accomplished without combined effort. I assume that the street railway men will continue their devotion and unremitting effort toward the cause. It has been a long and grueling fight with heavy casualties, but now that we have reached this point let us see it through. What I wish to suggest is renewed courage and confidence in the future. DISCUSSION ON MAINTENANCE AND FARES After the address by President Campbell and the reading of the papers by F. R. Phillips and E. C. Spring at the first session of the association, Friday afternoon, the discussion of the members centered about the sub- jects which had been taken up in the papers, abstracts of which are published elsewhere in this issue. W. E. Boileau, general manager, Scranton Railway, told of the task to which his company had been put in keeping the cars running during the war period. Rails had been taken from the scrap heap and put back in the street, and at one time when it was impossible to get car wheels, the ones in use became worn so low that the gear cases were striking the pavement and so the company lowered the pavement. He said that the maintenance program which the company had been forced to follow during the war would now require between $300,000 and $400,000 expenditure within the next one or two years to put the property back in normal condition. The population of about 280,000 served by his company had lost over 75,000 people during the war. The riding went dovra and down with each draft and with the exodus of workmen to other places of employment until the company was compelled to increase its fare to 6 cents. This was not great enough, and as the riding continued to drop off, the fare was raised to 8 cents. At this rate of fare the revenue become better almost daily and the number of riders was coming back and was nearly up to the number which had been carried at the 6-cent rate when the commission ordered a cash fare of 7 cents with four tickets for 25 cents. The increase of riding, which had been expected from this decrease in fare, had not been realized, and he doubted if the 7-cent fare would ever bring sufficient return to make the business profitable. With the present rate of fare, he said that about 73 per cent of the fares collected were tickets, it having been estimated that this would go to 90 per cent. The largest percentage of cash fares is paid on the lines carrying a high percentage of foreigners who do not seem to invest in tickets. In the better sections of the city, tickets are used almost 16 Electric Railway Journal Vol. 54, No. 1 exclusively. One line which carries almost entirely foreigners collects over 60 per cent cash fares, while a line in the better section of the city collects only 22 per cent cash fares. William 0. Hay, general manager, Northampton Traction Company, Easton, reported that in 1916 his company had increased its fare from 5 cents to 6 cents and had been disappointed in the per cent of increase in revenue received. A good many of the riders had walk- ed rather than pay the increase. On Sept. 23, 1918, the company went to a 7 cent fare and since that time has been realizing a comfortable return. The people have seemed to recover from their soreness and are again riding the cars. The results this year have been very good and the company now sees its way out of the woods, so to speak. He also commented on the fact that the company had learned a lot about develop- ment of the scrap heap during the war as a means of keeping the cars operating, and told how brakeshoes had been recovered, scrapped axles refitted, cars robbed of parts to keep others going, etc. H. G. Morse, of the General Electric Company, and W. G. Kaylor, of the Westinghouse Traction Brake Company, were called upon by the president and they recited some of the severe difficulties which the manu- facturers faced in their endeavor to keep the operating companies supplied with necessities. F. R. Phillips, Pittsburgh Railways, remarked that there seemed to be something inseparable between the rate of fare and the revenue received. In connection with the so-called superimposed fare system of Pitts- burgh, whereby there existed a 5 cent inner zone and a 7 cent outer zone, he reported that there had been a traffic increase of about three per cent in the 5 cent inner zone, but a decrease in the number of riders in the 7 cent zone, with a net revenue very much less than that previously derived by the company. In the outer zone, it seems that there was formerly a great deal of riding from home to the local theatres in the evening, and these people complained that it was entirely un- just to charge them 7 cents for that ride, whereas an equivalent ride in the central district would cost only 5 cents. This system of fares is about to be abandoned, and replaced by a fixed flat fare all over the city of 7i cents (four tickets for 30 cents) with a 10-cent cash fare. The 10-cent cash fare entitles the rider to a transfer to ride across the city, it now being neces- sary to pay two fares to ride across the city. There is thus no increase in the fai-e to the passenger who rides across the city, but the new system will bring about a 2] -cent increase in the central zone and a i-cent in- crease in the outer zone. Under the superimposed sys- tem, the total net increase in receipts in the 7-cent area was 9 to 11 per cent, whereas it should have shown a 40 per cent increase. Mr. Phillips commented that it was very difficult to tell what effect the rate of fare has on the amount of riding, since there are a number of ele- ments which have a bearing. For instance, he cited the fact that at present the industries of Pittsburgh are operating at only 62 per cent normal, and he in- ferred from this that the amount of riding on the cars might likewise be assumed to be about 62 per cent. R. B. Hull, general manager, Lancaster County Rail- way & Light Company, Lancaster, said that his com- pany, by increasing its fare from 5 cents to 6 cents and eliminating all unnecessary service, had been able to make a good showing and that for May and June of this year it had shown a 20 per cent increase in revenue over that during the corresponding months of last year. Less Than Five-Cent First Zone Fare C. B. Fairchild, Philadelphia Rapid Transit Company, was inclined to think that the industry had arrived at the time when it must right about face and collect from the passenger for what he wanted to buy ; namely, so many units of transportation at a proper unit charge. He was inclined to believe that this unit charge for the first zone should be something less than a nickel. He argued that it cost so much to produce this street car service, a figure differing with all of the special conditions of each locality. The first problem is to de- termine what the cost of producing the kind of service the public wants, plus a fair return on the investment given, is. The company must then derive that amount of money in order to produce the service required and then the public can arrange to pay the corresponding fare in any manner in which it prefers. If the cost of paving streets and various other items of cost which must now be borne by the car rider, were removed then the cost of producing the transportation could be re- duced, and it should be the endeavor of the industry to bring about a rock bottom basis for figuring trans- portation costs. Mr. Fairchild remarked that the industry had violat- ed every principle of merchandising by continuing from the old days to charge 5 cents for a ride, regardless of how long or how short a ride the passenger desired to purchase. He believes that, like the merchant, the railway company must be prepared to sell the cus- tomer the size of package he wants, which means that he must come to a zone system, and this zone rate must be low enough to attract customers. He said the industry had overlooked one thing which had made European business attractive — the short-haul riders. It should be the aim to get onto the cars the people who are now walking at the hours when the companies are hauling empty seats around, and this means a rate of fare less than five cents for the first zone. He thought that the bulk of the business which is available can be classified as short haul. He also pointed out that it would not be necessary to carry as many passengers in this country as they must in Europe to realize an equivalent return, because of the lower unit fare pre- valent there. Referring to the protest of the suburban- ites against the zone fare system, he said that he did not think their case was well founded and that he did not believe they would object strenuously. President Campbell took an opposite view of the fare situation. To carry a passenger one to two miles for something less than 5 cents would be going backward, his contention being that the value of the nickel has changed so materially that a ride of that distance for 5 cents now would be giving more than to give an equal ride for half that amount in 1900. He said that fares in effect have been cut in half already and that instead of looking toward lower fares, the in- dustry should be looking toward increased fares, that it had been looking too long toward small fares. He was inclined to doubt that short-haul traffic would be stimulated by the small fare, or if it were stimulated, that there would not be sufficient additional riding July 5, 1919 Electric Railway Journal 17 so that the company would realize an increase in reve- nue. He was looking more toward the basis of rides for 5 cents which existed twenty years ago as a proper readjustment basis for fares at this time. At that time the length of ride for 5 cents was in the neighbor- hood of 2 miles. Even at that rate of fare, the passenger of today would receive more for his money due to the infinitely better service, more lines, better cars, etc., taking into account all the progress made through engineering. Thomas A. Wright, vice-president and general mana- ger, Wilkes-Barre Railway, told how his company had increased its fares from 4 cents to 5, then 6, and later to 8 cents, which has finally yielded a satisfactory return. His return for May had shown a 47 per cent increase over the corresponding month last year and the reports showed a steady decrease in the loss of pas- sengers. In the population of 250,000 served, there had been a decrease of 25,000 to 30,000 people during the war who were now gradually coming back, and condi- tions were becoming normal. He had just finished his testimony before the commission on the rate case of his company and the question which was uppermost in his mind was as to what the effect will be on the in- dustry if a fixed rate of return is generally determined upon. Tf that is all that the companies will be allowed to earn, h3 Avondered what incentive there would ba from the manager down to try for better operation and better economy. Mr. Kaylor and A. M. Eicher of the Westinghouse Traction Brake Company, upon request, described the safety car and told of some of the splendid results which are being obtained through its use in several cities and presented the evidence which the use of these cars furnish, that more frequent service does sell trans- portation. At the banquet given by the association on Friday evening, Lieut.-Gov. Edward Biddleman, of Pennsyl- vania, was the principal speaker. He was followed by Chairman Ainey of the public utilities commission, who briefly addressed the gathering, and by several of the state legislators. The secretary of the association, Capt. Henry M. Stine, acted as toastmaster. Mr. Bid- dleman said in the course of his remarks that it was high time that men in public stations should exercise the courage to let industry earn a fair return, whatever the cost might be. If an increase of fare becomes nec- essary in order to sustain the cost of transportation, then it becomes the duty of the officers of the common- wealth to approve and support that increase. He said they should stand up for what they believe to be to the interests of the public whether that is popular for the moment or not. At the Saturday morning session, after the reading of Mr. Horton's paper on "Methods of Observing and Analyzing Passenger Trafl[ic" an abstract of which will appear in next week's issue, Mr. Boileau stated that his company had used two and three-day traffic check data very effectively in handling complaints made by the merchants' and other associations. Mr. Fairchild said that the number of complaints of service had been reduced over 80 per cent in the last year and a half, due in large part to the data made available from traffic studies. His company keeps a record of all delays and finds that this record is very helpful in explaining to patrons who complain of poor service and long delay, by showing them the cause is usually one beyond the control of the company. All complaints for the Philadelphia Company are handled by the welfare and public relations department, which is in charge of a vice-president, the office having been created with the organization of the department, and a transportation superintendent of wide experience pro- moted to the place. Mr. Spring told of a bulletin board which his com- pany has at the interurban station in Allentovra, upon which the cause of delays or other information is writ- ten for the information of the passengers. He has found this to be of greatest value in allaying criticism, for when the public is advised of the fact that a parade in a certain town has held up the car and there will be none for thirty minutes, or given other similar infor- mation as to conditions, they then know it is beyond the control of the company, and are decidedly more content in their wait. Election of Officers The nominating committee which was appointed by President Campbell, reported at the close of the Satur- day morning session that it was recommended no change be made in the administration of the association and that the present officers be re-elected. Upon motion, the wishes of the committee were carried out, and the officers below re-elected for another year : President, Gordon Campbell, president and general manager, York Railways Company, York, Pa. Vice-President, T. B. Donnelly, claim agent. West Penn Railways, Pittsburgh, Pa. Secretary and treasurer, Henry M. Stine, 211 Locust Street, Harrisburg, Pa. Electric Railways from an Operating Standpoint* Policies and Methods Which Will Aid in Securing Better Operating Ratio — Merchandising Prin- ciples Applicable in Selling Car Rides By Edward C. Spring Superintendent of Transportation, Lehigh Valley Transit Company, Allentown, Pa. MY OPTIMISM and faith in mankind lead me to believe that the future of electric railways is as- sured, but not without most serious thought and sleep- less nights. The department which occupies the most prominent position in the field of activities is the oper- ating department, and upon it in no small measure de- pends the working out of the difficulties in which the industry now finds itself. The men at the head of the operating department are close to the public they serve, and the service they give is vital to the welfare of the company and the growth of the community — a relation- ship filled with great responsibility and opportunities demanding sane and sound judgment. The operating department has in its hands two impor- tant factors to use in safeguarding the industry ; namely, the power to create and the power to save — two factors which are essentially vital in the future of our proper- ties. These embody the power to create business and develop it along the most economical lines, and the power to save in all branches of operation in order that there shall be no waste. * Abstract of paper read before Pennsylvania Street Railway Association at Harrisburg. June 27, 1919. 18 Electric Railway Journal Vol. 54, No. 1 Our employees should be trained in the art of co-op- eration. We need men who can think and solve the seeming impossible, who will dare to tackle the problems that are confronting them. To them we shall look for the progress that will make the operating department count 100 per cent. The employee who takes a personal inter- est in his work and feels that the company is his, who realizes his individual responsibility, is the man of the hour, and he will in turn find his position easier and more pleasurable. The more quickly the trainman real- izes that his car is one of a chain of stores, and he the manager and salesman selling transportation and delivering it in the package of service, the sooner will he become one of the co-operating parts of the organi- zation. To such an employee is encouragement and ap- preciation due. There is one expenditure in the account of the elec- tric railway which brings back no return, and that is the element of accident claims. In no better way will the efforts of an employee be felt and appreciated by the management than in promoting to the limit the safety program. The slogan of the electric railway sec- tion of the National Safety Council, "One less accident for every mile of track in 1919 over 1918," should be impressed upon the entire personnel of the organization, in order that they shall be on the alert to safeguard the company's interest. The equipment department, in promoting the inter- ests of the company, should see to it that defective roll- ing stock is not allowed to go beyond a reasonable period before repairs are made. The cost of main- tenance can be materially kept down if the defects are remedied and repairs made as soon as they are ap- parent, and not allowed to go over for the general over- haul. Such repairs should always be, if possible, of a per- manent character, rather than of a temporary nature. The reclaiming of old material should continue to receive the attention it has during the war period. In the track and roadway department, the adoption of standards is strongly urged as a means of promot- ing economical maintenance of tracks and roadways. This is desirable not only because of the importance it has in keeping the stores and stocks down to a minimum., but of increasing the general efficiency of the work done. Workmen handling the same type of material repeatedly become more proficient in making repairs, and not only is the work better and more quickly done, but more cheaply. Another saving is the time involved, which may be minimized by making early repairs. The cen- tralization of stores and tools, the reducing of all gangs to the lowest possible working force, and the making of estimates of cost and proper disposition of cost will assist the way department in promoting economy. In connection with the work of the superintendent of overhead and distribution lines, transmission and tele- phone lines should be inspected and all weak places where winter weather might cause trouble put into shape, for much labor can be eliminated by doing this character of work during favorable weather. All over- head work done in cold weather is generally over-ex- pensive. The centralization of distribution points for material and an accurate check of materials on hand are great factors in bringing about savings. In the transportation department, serious thought should be given to traffic studies, and the effect of dis- tance, time, stops, skip stops, slow downs, length of stops, speed and general operating conditions upon the grade of service and cost of operation. Traffic charts made at frequent intervals to show the load factors and traffic changes are absolutely necessary for good service and operation. The car mileage of any system should be checked daily so that any increase can instantly be ac- counted for. Development of the freight service offers other great advantages for increasing the revenues at this time of high costs. If made a part of a proper organization plan, the interurban railway may be made of most effective value in eliminating the middleman's profits and reducing the cost of foodstuffs to the con- sumers. Fares and Increased Revenue An electric railway has every right to operate at the lowest possible cost, even if it shall neglect maintenance for one or two years, but it is a very dangerous habit to get into. Probably more properties have been wrecked as the result of this policy than from any other cause. As a member of the committee appointed by the American Electric Railway Association to make a report at the Atlantic City convention on the subject of rates of fare and methods of collection, it would be unwise for me at this time to do more than make a few general statements. It is apparent that no company has as yet reached a final solution of the rate problem, although re- cent developments would tend to indicate that a zone plan of operation has many advantages over the so- called horizontal fare unit increase. The latter, which has been the one most tried out, has not shown the gain expected, but in many cases has been accompanied by a decrease in revenue. Observations have led to the belief that a well defined zone system offers the greatest advantage to passengers and will retain a larger proportion of the existing travel than any other method of increasing the revenue. I am a firm believer that transportation is a commodity and service is the package in which the conmodity is deliv- ered to the customer, and that our business should be handled on a commodity basis. If this is true, then the zone system is the logical solution of increased revenue. The length of the zone and the rate per zone must be determined according to the conditions which exist. I do not believe that a hard and fast rule can be laid down for all cases. A so-called inner zone of 5 cents would seem mandatory in the business district, and it seems to be the most logical. The inadequate financial results from most of the zone systems placed in operation, have resulted from inaccurate estimates of travel oh the sys- tem. An accurate estimate can only be made from a check of each passenger, and the actual length of ride of each passenger. The greatest difficulty with any zone system is the col- lection of fares and their proper registration. The di- versified methods in present use on the various systems tend to enhance the pockets of the conductors rather than the company. The various systems employed in the collection of fares on the lines by the zone system prac- tically make bookkeepers out of the conductors and form a source of annoyance to the passengers, being particu- larly bad in congested areas during peak load move- ments. I believe that in solving this great problem before the industry that it will be possible by acting with wis- dom, coolness and firmness to apply a remedy which will wholly or in a great part re ""ove the existing evils July 5, 1919 Electric Railway Journal 19 while leaving the good behind. We must be cautious in our movements so that we will not discourage enterprise. We do not desire to destroy communities, but we do de- sire to put our commodities fully at the service of the people on a profitable basis. Nothing needs closer attention, nor deserves to be treated with more courage, caution and sanity, than the relationship of the corporations to the municipalities. The law of public opinion in its broadest sense must be cultivated and matured in every community. It is well to remember that the adoption of what is reason- able in the demands of a municipality is the surest way to prevent the adoption of what is unreasonable. We need in this country a greater number of news- papers dedicated to the cause of unbiased truth in order that the public mind may not be confused, but so molded in public matters by honest and faithful counsel that the people at large will realize that the problems of the transportation companies are in reality those of the community, and that they can best be solved if the two will act together. The Maintenance Man's Experi- ences During the War * How the Difficulty of Securing Supplies and the Shortage of Labor Affected Street Railway Operation By F. R. Phillips Superintendent of Equipment, Pittsburgh Railways Company EVEN several months prior to the declaration of war by our government, and increasingly so thereafter, the electric railway industry began to feel its -pinch. Huge demands for supplies and munitions of war were made upon the industries of this country by the allied governments and by our own. These supplies were sim- ilar in many respects to the material and supplies used in large quantities for the upkeep of street railways. For when we speak of steel, we think of rails, wheels, axles, shells, guns, bars, bolts, shapes, sheets, etc. When copper or brass is referred to we think of coils, brush - holders, controllers, trolley wheels, trolley wire, over- head material, cartridges, shell casings, etc. The se- rious shortage of coal because of the enormous consump- tion here and abroad together with the restricted produc- tion in foreign countries nearly put an end to street car operation in a number of communities. As time progressed and our government increased its prepara- tions for war, with greater and still greater intensity, many manufacturers of street railway apparatus prac- tically withdrew from the market, leaving many of us in a somewhat precarious position. This forced us into the practice of using substitutes and required a, change in practice which proved decidedly uneconomical. More- over, in order that some semblance of service might be maintained, we were compelled to rob some cars to keep others in a serviceable condition. The Army, Navy and other governmental departments made conscientious efforts to relieve the situation, but with no practical result. Priority certificates were ad- mirable pieces of paper, and a thing much coveted, but they rarely earned dividends. Furthermore, the quality and workmanship of the supplies and materials which were secured were far below normal. "Abstract of paper read before Pennsylvania Street Railway Association at Harrisburg, June 27, 1919. Materials that were welcomed with open arms and glad hearts during this period would, prior to the war, have been promptly rejected or scrapped. The exigen- cies of the situation, however, taught us many lessons in reclamation of material, although the line of demar- kation between a sensible and a mistaken economical practice is still a question of some debate. The shortage of material also led many of us to use materials and supplies beyond the time usually consid- ered economical. Of course, prices increased in leaps and bounds and in many instances beyond reason. One instance perhaps will suffice to illustrate. A certain class of material used in large quantities for the insulation of electrical apparatus, prior to the war sold for 90 cents a pound. During the most critical period and a time when it was most needed, the price was $9.80 a pound. This material was not used in quantities for war pur- poses and is produced in this country. Labor Shortage an Additional Burden Companies operating in districts within and contin- gent to large manufacturing centers where munitions of war were manufactured, even before the war keenly felt labor shortage. Manufacturers of munitions in their anxiety to serve their country bid against each other for the labor supply, and the pace became so hot that the poor street railway man soon became an "also ran." Many of the trained employees, especially in the equipment departments, soon joined the stampede. More- over, large numbers of the employees through enlist- ments and the draft entered the service of the Army and Navy and other branches of governmental work and the two combined causes of exodus made serious de- creases in the employee rolls of railway companies. While the maintenance departments of street railway companies draw largely upon the various trades for their labor supply, still the work is of a special nature and requires special training before the men become proficient. It has been estimated that the cost of re- placing the average shopman and completing the trans- action costs approximately $75 per turnover. One com- pany in an effort to maintain its quota of men during the period from July 1, 1917 to Dec. 31, 1918, em- ployed 3083 men to fill 600 jobs, or an average of five men to each job during the eighteen-month period. Furthermore, it was not possible to maintain the nec- essary quota of men within fifteen per cent. Many of the larger companies resorted to the em- ployment of women in occupations which had hereto- fore been considered of a character beyond the possi- bility of performance on the part of the gentler sex. Three years ago who would have supposed it possible that women would be oiling motors, painting cars, re- pairing cars, motors, trucks, controllers or winding armatures. It must be said to their credit, for the most part, that they performed their tasks nobly and well, and in some instances, had it not been for them I fear that our very poor showing would have been much worse. Under such circustances, it was, of course, impos- sible to maintain previous standards and schedules of work despite our utmost effort to meet the situation. Then the unprecedented weather of the winter of 1918 added to our difficulties. In certain districts, particu- larly in the east and middle west sections, there were continued low temperature conditions with repeated snow, rain or sleet storms. In my vicinity for fifty-one 20 Electric Railway Journal Vol. 54, No. 1 consecutive days in the winter of 1918, the temperature was below zero or it snowed, rained or sleeted, and on many of them there was a combination of two of these. Like other public service undertakings, many of the municipal departments were operating below normal and were unable or at least did not perform their proper functions. The streets in many cities were packed with snow and ice, and practically the only navigable area within the streets was in the railway area. All of the traffic was concentrated within the trench cut through the snow by scrapers and sweepers. Due to the fact that catch basins and other surface drains were closed, this trench became the surface drainage system for the time being. As one master mechanic very aptly put it — "railway motors are not submarines," nor have rail- way motors capable of operating continuously in salt and acid water yet been designed. The result was an avalanche of disabled equipment. Many governmental departments (national, state and municipal), unfamiliar with the well-nigh insurmount- able conditions which we were compelled to meet, through various institutions and agencies brought to bear all the pressure possible to force us to improve the service, and in their earnest efforts to secure what they considered proper transportation facilities for mu- nition workers, more often than not, imposed conditions upon us that only served to add further to the already heavy burden. But this experience of the war period has served to provide a fund of knowledge which will no doubt be in- valuable in solving the problems of the future. Up Goes Sheffield, Too ATA RECENT meeting of the Sheffield (England) ^Council the following figures were quoted as repre- senting present prices for tramway material and those quoted four years ago: Price — Article Unit 1914 Dec, 1918 Tramway rails Ton $29.20 $85, 16 Cement Ton 8.28 31 . 28 Gear wheels Each 15 00 67 64 Armature coils Set 24.33 83 95 Oil .24 ,73 Tickets .06 ,30 The cost of timber during the same period has risen 500 per cent. In 1916 tenders for the construction of fifty cars were asked for, and the price quoted was $5,840 per car. Recently $14,600 apiece was paid for fifty cars of a similar type. In consequence of the increase of wages, alterations in working hours, higher cost of materials, and addition- al capital'expenditures, and allowance for contingencies, the estimated increase in expenditure in conducting the tramways department will be $744,300 per annum. The estimated increase in revenue from the advance in fares is $914,900 per annum. Some of the Parisian society people are taking a hand in strike breaking for the purpose of assisting Paris to regain her much needed street transportation service. Baron Henry Rothschild has been a chauffeur of an auto- bus, making regular trips over a city route, while Count- ess Villestrey has been punching tickets in a subway station. Federal Commission Completing- Plans THE Washington representative of the Electric Railway Journal reports that since the first offi- cial hearing of the Federal Electric Railways Commis- sion in New York City, June 19, questions of organiza- tion and the formulation of plans for its continued work have absorbed its attention. There have been confiict- ing opinions as to the period of the commission's exist- ence, owing to the fact that the President's contingent fund, out of which the commission's expenses are to be paid, was not made available after June 30. Some officials in Washington have thought that the commission would be obliged to wind up its work on that date. Others, among them the Attorney-General, have taken the position that the commission will not expire until the President issues the proclamation of peace, and that it may continue to function, provided the $10,000 set aside at the President's direction for its use, can be made secure, in accordance with the usual practice of the Treasury Department in such cases. The commission, fortified by the opinion of the Attor- ney-General, will therefore continue its work and has already appointed as its executive secretary Charlton Ogburn, formerly examiner of the National War Labor Board, in charge of the electric railway section. Mr. Ogburn is now appointing his staff and arranging for the commission's offices in Washington. As heretofore announced, all persons interested in the electric railway problem, including state and munic- ipal authorities, civic associations, chambers of com- merce, boards of trade and electric railways themselves, will be given an opportunity to appear before the com- mission and testify as to the conditions in their re- spective states and communities. It is also proposed to issue questionnaires in order that the commission may receive a report from all in- terested parties unable to appear in person. A force of statisticians and accountants will be employed to ex- amine the reports made to the commission, and the testimony of witnesses will be reviewed and classified. The information so secured will form the basis of the commission's report to the President. If it is im- possible to prepare a complete report prior to the proc- lamation of peace, action will be taken for legislation necessary to continue the commission until its work be completed. The commission has already received a number of unofficial requests from interested parties in various cities, urging the importance of making a local investi- gation of the electric railway situation. Whether the commission will be able to heed these requests de- pends of course upon the number of communities desir- ing particular investigations, the length of the com- mission's term of office and the sufficiency of funds made available for its use. No decision has as yet been reached by the commission with reference to this branch of its activities. Eugene Meyer, Jr., managing director of the War Finance Corporation, whose place on the commission has been temporarily filled by Louis B. Wehle, counsel of the corporation, is expected to return from Europe in the near future and take his place on the commission. It is proposed to hold two hearings a week in Washing- ton until all those desiring to be heard have had an opportunity to present their views and give information regarding transportation conditions as they find them. July 5, 1919 Electric Railway Journal 21 ONE OF THE STATIONS AS COMPLETED Subway in Madrid, Spain, Nears Completion Present Congested Transportation Conditions in tiie Spanish Capital Will Be Greatly Relieved by the Com- pletion of the First Line of the New Subway Next Fall THE Central Metropolitan Railway of Madrid, Spain, will provide a rapid means of transporta- tion between the city's most densely populated districts, and between these and the principal railway stations. Double-track subways will be constructed to constitute the main arteries of a network which at some date will cover the whole of the capital and its suburbs. The capital of Spain has developed rapidly, due to the increase in transportation facilities already provided. This has caused a spreading out of the population, as the inhabitants, trusting- the transportation facilities as to future adequacy, have moved away from the centers. The network of electrical carlines is, however, inade- quate to satisfy the growing needs of the capital. Many of the city streets are so narrow as to preclude the use of more than a single track. The consequent throttling of traffic, added to the tie-up caused by con- gestion of vehicles, leads to a service necessarily very slow and irregular. This condition cannot be remedied by increasing the speed of the vehicles and adding to the number of cars, as the difficulties at the crossings would make matters worse rather than better. On the "Metropolitano" the average speed will be 15.5 m.p.h., with sufficient capacity to permit a two to three- minute headway between trains. These will consist of five-car trains, comfortably accommodating 250 persons per train. The two-track tunnel has been designed to accommodate wide and comfortable cars, which will be well lighted. Some Details of the Madrid Central-Metropolitano Railway The present plan includes the construction of four lines to constitute the Central Metropolitano system. Line No. 1 will run north and south, from Cuatro Cam- inos to Progreso, line No. 2 from Ferraz-Puerta del Sol- Calle Alcala to Goya. Line No. 3 the full length of Ser- rano Street and line No. 4 from Ferraz-Boulevares-Goya to Alcala. The total route mileage of this system is about 9. The tunnel will be double-track throughout its full length, and of solid concrete construction similar to that of the Paris subway but in dimensions slightly smaller. The stations will be 197 ft. long and built as near the street — n .2.40.. m Jul' TYPE OF MOTOR CAR USED FOR SUBWAY OPERATION 22 Electric Railway Journal Vol. 54, No. 1 SECTION OF SUBWAY AT STATION level as possible to make them easily accessible. The maximum grade of this section, which follows the street center, is 4 per cent; the curves have a minimum radius of 328 ft. The construction of the tunnel has advanced continu- ously since 1918, in accordance with the plans previously made, and at the end of the year the stretch from the Puerto del Sol to Cuatro Caminos was completed. At the same time the approaches to the stations have been under construction as well as the shops at Cuatro Ca- minos. At the time of the publication of the last annual re- port of the company but a small number of brace beams and supports with removal of dirt, were necessary for completion. The decorative details for the stations, vestibules, kiosks, etc., are now being taken up and it is expected that the whole work, tunnel as well as superstructure, will be completed before fall. Material such as rails, ties, car bodies for the motor cars and trailers, trusses for the shops, machinery, etc., are being produced in Spain. As regards material of foreign manufacture, the copper is being furnished by the Standard Underground Cable Company, Pittsburgh, Pa., and it is now stored in the shops at Cuatro Caminos. Of the twenty-four Westinghouse and Schneider motors, one half have already been delivered and the remainder are in transit. The operating accessories for the mo- tors are from the General Electric Company, Schenec- tady, N. Y., and the forty-six forward trucks were fur- nished by the J. G. Brill Co., Philadelphia, Pa. The manufacture of these details was pushed rapidly to pro- vide for early operation. Assuming that the American manufacturers can make shipment on the expected dates, the contractors promise to put branch No. 1, from Sol to Cuatro Caminos, in operation next October. The total cost of the north-to-south branch is follows : as I'nderstructure $ 787,396.57 Superstructure 188,991.61 -Mobile material and coaches 316,520.00 Repair shops 106,482.90 Formation of the company, making of the plans, management, and interest for the second year of construction 144,608.92 Tot3l $1,544,000.00 The prices given are the same as those which have been contracted to be paid for all the additional under- ground work in Madrid. During the second week in May the Glasgow, Scotland, Corporation Tramways made a record for receipts, tak- ing in for that week £33,514, which is £161 more than the previous record. TYPICAL SECTIONS OF SUBWAY July 5, 1919 Electric Railway Journal 23 Operating Without Telephones "Preparedness" Plans Made by Boston Elevated Railway During the Recent Strike of Telephone Operators in New England By EDWARD DANA Superintendent of Transportation, Boston Elevated Railway ♦ THE strike of telephone employees in Boston which occurred on April 15, 1919, and lasted approximately seven days, immediately raises the question in the minds of street railway men as to how a transportation system operating 15,000 trips daily and spread over 125 square miles and running its 1600 cars 160,000 miles daily could carry on its business without aid of the telephone upon which it of necessity depends to such a large ex- tent in handling its 6300 men, its accidents and delays and its executive functions. The Boston Elevated rents its telephone system from the local telephone company, but except for the pro- vision of current to its central switchboard from f^e batteries of the public telephone company, its telephone system is entirely a self-contained affair, operated by its own employees and designed to meet its own re- quirements. The central board has 275 connections, of which twenty-four lines are directly connected with the main exchange of the telephone company. These lines were completely out of service during the strike, but while there was great concern as to whether the power which energizes its local system would be main- tained by the telephone company, this complete shut- ting down of its plant did not occur, and consequently its operation was relatively little affected by the strike which paralyzed other industries. Of course the failure of public lines leading to its switchboards necessitated securing the co-operation of the police in the various communities in case of serious accidents or delays, and men were stationed at police headquarters representing the company. This in reality connected the police patrol boxes with the company in case of serious trouble. The only real problem which the company had to face was that of keeping in touch with its operating officials during the evening and the night when they were not avail- able at their offices. This was accomplished by pro- viding automobiles at the five locations where divisional headquarters are maintained, and -after the first night this plan was found to be reasonably satisfactory to meet emergencies and relieved to a large extent the concern of the management, although the oflScials were handicapped in doing the business that a railway oper- ating man necessarily does by telephone from his resi- dence. Company's Plans in Case of Total Failure OF Telephones The object of this article is to outline what further arrangements were contemplated had the central branch exchange switchboard of the campany been deprived of its battery current and the system been entirely deprived of telephone service. Such a study is not alone dependent upon the occurrence of a strike but might very well occur through the destruction by fire of the building in which this switchboard was located, map of boston ELiiVATED RAILWAY MESSENGER LINES although under such conditions the results would not be so disastrous aS in the case of a strike because the public lines would in that condition be available. The Boston Elevated Railway has six divisions — four operating divisions, one elevated division, and one non- operating surface and subway division. When the seriousness of the situation became apparent, the trans- portation department officials conferred and laid out a "time-table of communication" which in some respects afforded advantages of communication by messenger which even surpassed the teleephone. The office of the superintendent of transportation was deemed to be the heart of the communication system, and from that point a trunk line was planned to each of the division headquarters upon which would be operated upon a moment's notice a regular headway of messengers leaving every five minutes over a defi- nitely planned route. These messengers would use in each case the quickest available method of transpor- tation, which for a certain portion might be walking to a subway station; another portion, the rapid transit service, and still another portion, an automobile. This 24 Electric Railway Journal Vol. 54, No. 1 would require a definite number of men exactly as a car line demands a definite number of cars and crews to maintain regularity of service. All concerned would know of the exact route, and that verbal or written messages could be handed to this conspicuously-marked constantly-moving chain of men, at any fixed point along the route. It was found that after allowing for reasonable delays and layovers as well as relief to cover the en- tire operating period of the day that the several di- visions which are respectively — 4, 3.70, 3.52, 2.16, 2.16 and 0.25 miles from the office of the superintendent of transportation could be maintained with twenty-five men and four autos. When this had been arranged the backbone of the system had been provided, and it was a relatively simple matter to arrange local schedules in the divisions to tap the trunk line at divisional headquarters. In addition it was planned to arrange an automobile patrol which would help in the elimination of long delays or lost cars, as for instance when a car operated on an infrequent line should get out on the line and become derailed or disabled and have no means of com- munication with the outside world. Superintendent's Office Made Clearing House Much of the success of the plan would have depended upon the work done in the office of the superintendent of transportation in sorting mail and in classifying reports and in promptly and correctly forwarding in- formation received. To this end additional help was arranged for, but the quickest method of securing re- sults here would have been demonstrated by actual experience after the plan was in operation. While the operation of the system under such an arrangement would have taxed the patience of the operating officials, it was confidently expected that if the word came that the telephone service had "gone" there was not so much to fear as might at first be supposed. Fortunately this did not occur and the officials can only feel satisfied at the "prepai'edness" measures, but it might have occurred and may actually occur some day on some property. Tool Holders for Use in Close Quarters ANEW LINE of set screw pattern turning tools has recently been placed on the market by J. H. Wil- liams & Company, with plants at Brooklyn and Buffalo, N. Y. These tools are provided with right and left-hand offsets and straight shanks. The nose of the holder is beveled to permit their use in close quarters. The tools are all drop forged with a strong tough grade of steel and are submitted after forging to a special heat treat- ment. The cutter-holding channel is broached to ac- curate size in special machines and provides a rigid seat for the cutter. The electric cars on all lines in and near the city of Tokyo, Japan, carried some 1,450,000 passengers during the day of April 1 last. The income from this source was 63,136 yen, or $31,568. This is the largest amount ever recorded since the operation of this serv- ice. The corresponding figure for the same day last year showed 120,000 fewer passengers carried. A. S. T. M. Shows Strong Spirit of Co-operation At the Annual Meeting Held in Atlantic City Last Week Several Subjects of Interest to Electric Railways Were Taken Up THE American Society for Testing Materials held its 22nd annual meeting last week at Atlantic City, N. J. The significant development of the meeting was the great expansion of co-operative work with other soci- eties and with testing and research laboratories. Re- newal of vigor in materials study was apparent, not only in the unusually strong program of papers pre- sented, but also in the announcements of work in prog- ress or to be undertaken. New policies were fixed by several decisions of vital importance which the Executive Committee reported to the meeting, though matters of great moment are still in abeyance. A definite organizational policy has been established, with the first independent headquarters in the society's history. C. L. Warwick, long the assistant of the late Professor Edgar Marburg, secretary of the society since its foundation, has been appointed secre- tary-treasurer to succeed him. The society's office will no longer be at the University of Pennsylvania, but is to be located in the building of the Engineers' Club of Philadelphia, 1315 Spruce St., and is to be manned by a full-time organization. During the past year the society has gone outside the close bounds of its technical activities by joining the Engineering Council and by participating in the formation of the American Engi- neering Standards Committee. Both of these new ac- tivities have brought into being very serious problems, not yet solved. Furthermore, many demands for taking up joint committee work in different technical subjects arose after the end of the war, and they led finally to the society's entering upon a much broader program of co-operation than has prevailed at any previous time since its organization. All these matters produced ac- tive discussion at the meeting, but in the sessions of the society attention to the questions at issue was restricted to brief announcements by the chairman, with no dis- cussion. While these matters were in the foreground of atten- tion, notable technical work constituted the essence of the meeting. In the matter of steel rails, results were reported that give distinct promise of an early advance in this difficult subject. A classic group of papers on magnetic study of steel quality was presented. Fatigue and impact testing were brought into new prominence. Several ingenious new testing instruments gave further proof of the activity of laboratory investigators. A remarkable paper on paints injected new vitality into the lagging thought in this subject. Girder Rail Specifications Revised Sub committee I has had under consideration in co- operation with a committee of the American Electric Railway Association the question of omitting the drop test in the standard specifications for open hearth steel girder and high Tee rails, with the intention of sub- stituting a ball impression test for this. The previous test did not bring out the quality most desired by users of girder rails, viz., resistance to wear. Moreover, girder rails owing to their irregular section are difficult to test in the drop, and their practical use is such that the drop test is not considered to be an essential July 5, 1919 Electric Railway Journal 25 one. To meet the demands of the users of this rail an impression test to determine hardness was drawn up in co-operation with the A. E. R. A. committee. The following are sections relating to this test: 7. (a) Four representative sections of rail from each melt shall be selected by the inspector as test specimens, (b) Excess scale on the head of the section shall be care- fully removed. 8. (a) The head of each specimen shall be subjected to a pressure of 50 net tons. (100,000 lb.) for a period of 15 seconds applied through a ball | in. in diameter, (b) The average depth of impression obtained on the four specimens shall not be more than 3.8 mil., for Class A rails nor not more than 3.6 mil. for Class B rails. 9. If the average of the impression tests from any melt fails to conform to the requirements specified in Section 8 (b) the manufacturer may at his option test each rail from such melt by making an impression test on the web as described in Section 8 (a). Rails so tested which conform to the requirements as to depth of impression specified in Section 8 (b) shall be accepted. The committee believes it is justified in recommending an impression test differing from the standard Brinell test for several reasons: First, that the use of the larger ball is more convenient in view of the considerable number of tests contemplated. (Four from each melt with provi- sions for testing possibly every rail.) And the size of the specimen; second, that the test is intended to be compara- tively simple so far as girder rails are concerned and not ab- solute— that is, that the user is not particularly interested in the Brinell hardness of the rail; and third, that the pro- posed test is in agreement with the present foreign prac- tice in tests of girder rails. . The proposed revision has been approved by the members of the A. E, R. A. committee with which sub- committee I has been co-operating, and it is understood that this committee will recommend its adoption by the American Railway Association at its next meeting. New Tinning Test for Copper Wire In the specification for tinned soft copper wire pro- posed as tentative standard there is included a new method for determining the integrity of the tin coating. It is based on the view that the tin coating must be entire, but should not be thicker than this object neces- sitates, as a thick coating will crack when the wire is bent or stranded and in any case reduces the conduc- tivity of the wire. For these reasons only two cycles of dipping in the test solutions are specified — the second cycle to make sure that spots which though not bare have too thin a coating are detected. The specified method is to dip a clean sample of the wire into dilute hydrochloric acid (sp.gr. 1.088) for 1 min., washed, wiped dry, and then dipped for 30 sec. into sodium poly- sulphide solution (sp.gr. 1.142), which will blacken bare copper; then to repeat this cycle. If these two cycles produce any blackening of the wire beyond i in. from the cut end, the sample is considered to have failed. Other Features of Committee Reports A remarkable paper on paints injected new vitality into this subject. A flashpoint test worked out for paint thinners other than turpentine has, during the past year, been found to be accurate also for turpentine, and the preservation coatings committee therefore recommended its extension to cover all thinners. The same committee continued the inspection of test panels erected two years ago as a means of determining the best way of prepar- ing iron and steel surfaces for painting. No conclu- sions will be reported before another year or two of exposure, but one well-defined result obtained so far is that cleaning a deeply rusted surface with scraper and wire brush is an unsatisfactory preparation for paint- ing; the panels prepared in this way have failed badly. On the other hand, the plates which were painted as received from the mill, with mill scale intact and ad- herent, are among the best up to date. With the presentation of tentative specifications for viscosity tests of lubricants, a long contest in com- mittee came to an end during the past year. The Saybolt instrument was decided on, in spite of the objection by various laboratory investigators that it does not give "absolute viscosity." The method for determining the fusibility of coal ash presented by the committee on methods of sampling and analysis of coal is one which was formulated by A. S. Fieldner and has been used by the U. S. Bureau of Mines for several years. It was endorsed in joint action with the American Chemical Society. C. E. R. A. Cruises on Great Lakes Association Charters S.S. "South American" for Four-Day Meeting — Safety Cars, Relief for Railways and Other Topics Discussed THE Central Electric Railway Association celebrated the return of the country to a peace basis by hold- ing a summer meeting on the Great Lakes, having the exclusive use of the large cruising steamer South Amer- ican, from Sunday, June 29, to Thursday, July 3, inclu- sive. The steamer sailed from Toledo on the morning of June 30, touching at Detroit in the afternoon. About noon on Tuesday it reached Perry Sound, and later made a two-hour stop at Georgian Bay. On Wednesday a brief stop at Mackinac Island was made according to a report telegraphed from that point, and the schedule called for other short stops at Harbor Springs, and Benton Harbor early Thursday morning. The cruise was to end at Chicago on Thursday afternoon. The two-hour stop at Owen Sound which was planned, was not made. The steamer, which has a capacity of 360 persons, had 350 on board, and all were delighted with the trip. The sentiment which prevailed was that much credit was due John Benhamof the International Register Company, and James H. Drew of the Drew Electric & Manufactur- ing Company, for the fine arrangements and entertain- ment for which they were responsible. The newspaper men in the party published a small daily under the cap- tion Central Daily Spray, which furnished a means of communication among the attendants at the meeting and also supplied some material of the "lighter vein" variety. The program opened with a meeting of the executive committee on Monday morning, followed by a business session with reports of committees on Monday after- noon. On Tuesday morning S. W. Greenland, general manager, Fort Wayne & Northern Indiana Traction Company, Fort Wayne, Ind., presented a paper on "One-Man Car Operation." This paper and the lively discussion which followed 'it will be given in a later is- sue of the Electric Railway Journal. On Wednesday, the formal paper was by Robert Rif en- berick, consulting engineer, Detroit (Mich.) United Railway, on the subject, "Burdens from Which We Should Be Relieved." In his absence it was read by Charles L. Henry. As this was the first boat trip of the association since 1916, it was like a big reunion and the usual good fellowship of the C. E. R. A. members was more than ever in evidence. 26 Electric Railway Journal Vol. 54, No. 1 Earningrs of the Safety Car* Analysis of Its Possibilities on a Forty-Car Line — Approximately Sixty-six Per Cent Return on Investment Is Shown By T. C. Roderick -Assistant General ^Manager', Tri-City Railway, Davenport, la. IN a great many cities, mostly through the aid of public utility commissions, an increased fare ranging f oil 6 cents to 10 cents has been established to meet the increased operating costs that prevail at the pres- ent time. But the results obtained by increasing fares have been far from satisfactory. In some cases the relief is only temporary. In other cases the expected re^'cf did not materialize. In still other cases, on the fir"t favorable showing of the monthly reports, there was an immediate demand for a restoration of the old rat3 of fare. Again where the relief had been obtained by action of political boards, such as city councils or city commissions, a change in the political control was fo'lowed by an immediate reduction of the fare, and t':e constant turmoil has kept the business and the pub- lic in such a state of uncertainty that the question of service has been almost completely forgotten. With all of these discouraging conditions there is one ray of hope which not only gives promise of in- creased revenue but also gives decreased operating ex- per.ses and possibilities of more frequent service with greater satisfaction to the riding public. These re- su'ts can be obtained by the use of the safety car. To show the possibilities of the safety car we will apply its costs of operation to the Tri City Railway of Iowa. The operating costs per car-mile during the past eight months, for the four primary accounts mentioned and the possible figures for the safety car follow: Present Safety Cost Car Maiiitenanee of way and structures $0.0208 $0.0125 Maintenance of equipment .0.574 .0187 Power 0706 .0353 Transportation .1120 .0615 Total $0.2408 $0.1218 The majority of the cars in Davenport weigh approxi- mately 40,000 lb., have four .35-hp. or 40-hp. motors, are from 42 ft. to 44 ft. over all with a seating capacity of forty passengers and have an average schedule speed of 8.87 m.p.h. The weight of the safety car is approxi- mately 7 tons with a seating capacity of thirty-two. Maintenaiice of Way and Structures. — Without exact figures for comparison a reasonable method would seem to be a comparison of axle tonnage of each type of car over the track, though the hammer blow of the heavier car would be more severe than in direct propor- tion to its weight. The tonnage per axle of the pres- ent car is 5 tons, for the safety car 3^ tons, while the ratio of axles per car is two to one. If 50 per cent more safety cars were used than of the present equip- ment the percentage of axle tonnage would be 522 per cent. If we allow 7* per cent for extra cars of the present type, the tonnage over the track would be 60 per cent of the tonnage of the present cars. Applying this percentage to the present cost of maintenance of way and structures would give us, for the safety car, 60 per cent of $0.0208 = $0.0125. "Abstract of paper read at meeting of Iowa Electric Railway Association, Colfax, la.. June 19, 1919. Maintmavce of Equipment. — This item is subject to a great many variables such as wage scale, grades, curvature, condition of track and climate conditions. Re- ports from systems that have had these cars in opera- tion for three years give cost of maintenance of equip- ment for the past twelve months at 1.2 cents on one and 1.02 cents on the other. Others give reports vary- ing from 15 per cent to 50 per cent saving over previ- ous cost of heavier equipment. Reports from Cedar Rapids, where they are operating safety cars with two men, indicate the saving would be approximately 50 per cent of the present cost. Applying this percentage to the present of maintenance of equipment would give us for the safety car, 50 per cent of $0.0374 = $0.0187. Power. — This is an item in which the saving is very apparent, due to the light weight of the car and smaller number and size of motors. Comparing the kilowatt- hours used per car-mile of the safety cars operated in Cedar Rapids with the cars operated in Davenport, on both of which the kilowatt-hour is metered at the car, we find the safety car using 47 per cent of the other car. This comparison is made with the line with the least grades in Davenport. On an average for the sys- tem it would be less. Assuming a power consumption of 50 per cent present cost we have for the safety car 50 per cent of $0.0706 = $0.0353. Transportation. — The use of one man per car is a very apparent saving in the safety car operation. It has been customary to give this operator a higher com- pensation for the added responsibility, and this rate has been usually 10 per cent. At this rate the reduction in expenses amounts to 45 per cent. This would make the cost for transportation $0.0516. The figures for traffic and general would remain the same as at present so that on the basis of these assump- tions there is a saving per car-mile in operating ex- penses of $0.1127 or nearly 48 per cent. The safety car, having only 80 per cent of the seating capacity of the present equipment, 25 per cent more cars would be required to furnish the same number of seats. The total car mileage of the Davenport lines for 1918 was 2,067,450. The increased car mileage due to the decrease in car interval would be 568,586 miles, which, at 0.1281 cent per car-mile, would cost $72,872. Nearly all systems that have decreased their car interval by the introduction of safety cars have shown an increase in receipts practically equal to the increased mileage. Assuming in this case 50 per cent of the car mileage increase we would have a 15 per cent in- crease in gross receipts, or $78,495. Credit: Savings on operating expenses 2,067,450 ear miles at. . $0. 1 1 27 $233,002 Increased earnings 78,495 Total increase $311,497 Debit; Increased operating expense $72,872 Increased annual charge, 15 per cent on $275,000 41,250 Total increased expenses $ 11 4, 1 22 Net increased earnings. $197,375 Fifty safety cars at $6,000 each, would cost $300,000, an amount which would be partially offset by the sale of forty double-truck cars at possibly $2,500 each. Necessary track changes would cost $75,000. The ac- count would then stand as above. The annual increase in earnings is $3,947.50 per car or nearly 66 per cent of the investment. This is exclusive of the saving in accidents, which reports from nearly all companies show to be very materially reduced. July 5, 1919 Electric Railway Journal 27 Keeping Up the Trolley Voltage* Automatic Substations Have Demonstrated Ability to Improve Operating Conditions, and Possibilities Are Attractive By C. W. Place Engineer, General Electric Company, Schenectady, N. Y. IN ANALYZING many sets of conditions under which electric railways have in the past found it advan- tageous to use manually operated substations I became thoroughly convinced that power can be most continu- ously and satisfactorily delivered by having the trans- forming device automatically rather than manually controlled. The automatic substations can be put where they are needed and have capacities proportioned to the load in the immediate vicinity instead of having to provide for the load plus losses in long feeders. The transforming devices need not be bunched to accommo- date the operator as to living conditions, or to minimize investment in property. Railway systems fall into two natural divisions or classes as regards the application of automatic control, namely, those furnishing interurban service or service approaching it in character, and those furnishing city service. The advantages of automatic substations for interurban service have been fully and properly dis- cussed and seem most generally appreciated. In this type of service the more infrequent the cars the greater will be the proportional saving beyond the labor saving. In city service the advantages over manual operation multiply in proportion to the density of the traffic and the load difference between rush and slack hours. The larger the city and the more congested the traffic, the greater the advantage of using some type of automatic control for the machines and the feeder circuits. It seems to me that in the immediate future, due to present housing conditions, there will be much agita- tion resulting in the development of many real estate additions, with a demand for railway service which may not promise profit for some years. The only way that I can see for the railways to make the necessary ex- tensions is by putting in small automatic stations and using light-weight, one-man cars. All companies must lay out their feeder, transform- ing and generating Systems on the basis of the peak load, hence anything that increases the peak requires additional investment. This is why reduction in weight of cars, which must be accelerated most frequently dur- ing the peak, is receiving so much attention. Every volt drop in potential from power plant to motor repre- sents wasted power which must be paid for before re- turns on the investment can be realized. Furthermore, it is the drop in the return circuit which provokes elec- trolysis discussion. Hence any remedy that cuts down the loss on the positive side of the complete circuit does the same on the negative. The maintenance of the trolley voltage cannot be divorced from the way in which the power is used when supplied. Reference has been made to the effect of the peak on the size of equipment all along the line. The use of automatic substations improves this peak '■ondition immensely and certain modifications in the conditions under which the cars are operated would allow the substations to help still more. •Abstract of paper read at meeting of Towa Electric Railway Association, Colfax, la., .lune, 1!), 1919. For instance, if the railways could prevail upon the state commissions and the public to allow them to operate their present heavy cars as express cars, stop- ping them only at transfer points until far out into the residence district, and to pick up the intermediate, and short haul people with one-man cars, stopping anywhere, the railways would lower theii' peaks, would require less transforming apparatus to handle the same number of passengers and would economize the passengers' time. There is another phase of the question that everyone may not fully appreciate. At present, with commutating poles, flash guards, and other safety features on rotary converters, the whole limitation of service from a ma- chine is dependent upon heating. Less capacity is re- quired to deliver a given number of kilowatt-hours from a number of machines if the iron losses are removed during practically idle periods. For example, the no- load losses for a 300-kw. set recently investigated were 3.33 kw. for the transformer and 8.7 kw. for the rotary; while the possible shut-down period was eleven hours out of the present eighteen-hour day. To return to the general principles involved in this matter, voltage between trolley wheel and rail is a factor in making the car move and the nearer to normal it is the more efiRcient is the operation. As long as volt- age is maintained at the car and none of your equip- ment up to that point becom.es dangerously hot, it is undesirable to have any underloaded machines on the line. It is desirable, however, to have one or more additional machines, as near the load as possible, come into the circuit as soon as the voltage really begins to go down (not on a momentary dip). When this time comes the machine should come in promptly. All of the operations of starting up must occur in the proper se- quence and as rapidly as possible within the capacity of the machine. Hand operation can be improved upon considerably by fixing the polarity of the machine and hastening its building up by exciting the fields at the proper instant. Next the rotary comes onto the line by the rapid cutting cut of a load-limiting resistance. After the machine is on the line this load limiting resistance prevents injury to the machine itself by preventing the current from building up unduly. The lowering of voltage on the line caused by introducing the resistance in turn starts up another station in exactly the same way as the first machine was started, or the high current itself brings in. another machine. At each point it has been considered advisable to have a check on the proper completion of one operation before the next can occur. The load-limiting resistors mentioned have been fur- nished a number of times for use on hand-operated machines, where it was not considered possible to go to the expense of making stations automatic. Where the station supplies power over a number of feeders the resistance has been split up and part put in the machine and part on the individual feeders. There are other types of feeder control which involve breaking the feeder circuit on the occurrence of trouble on the outside circuit. Still another phase of this automatic control question that is worth consideration is this: Fuel costs money, and any energy obtainable without burning something means a cut in operating expense. An induction motor driven above speed by a waterwheel delivers real energy when it is connected to a system on which frequency is established and magnetizing current supplied by cue I 28 Electric Railway Journal Vol. 54, No. 1 or more synchronous machines. There may be possi- bilities of utilizing this fact on some alternating current circuits. The addition of such source of energy will tend to improve voltage conditions and cut down alter- nating-current distribution losses just as an automatic substation will do on the 600-volt circuit. Most railway systems could stand some of these in- duction generators as a means of improving the power factor. If the effect of the magnetizing current on the power factor is too great an automatically-controlled synchronous machine can be used to neutralize it. Many of these low-head, small automatic stations will be in- stalled, and there is no reason why anyone possessing a fairly good location should not put in one or more. A good location involves banks high enough to give, say. about 10 ft. head without flooding valuable bottom lands. Regulating" Rates in Iowa* Rates Stipulated in Franchise Ordinances Are Not Contractual but Legislative in Character, and Cities Can Alter Them By William Chamberlain General Counsel United I^iKht & Railways Company. Grand Rapids. Mich. HAVING in mind that it lies wholly within the power of the Legislature to establish rates of service for public utilities and that this power may be exercised by it (1) directly either through contract in which it reaches an agreement with the utility or by legislative act in which it establishes the rate by law and needs to bargain with no one (and is subject to no limitations save those of the constitution), or (2), indirectly through delegation of the same powers to some one or more of its minor governing subdivisions, we are in a position to examine the situation in Iowa. Except as to passenger fares upon railroads, the Iowa Legislature has never directly exercised its power over rates, but has on the contrary expressly delegated this power as to all the ordinary utilities save street railways to the cities and towns within which the utili- ties operate. This delegation of power is found in Sec- tion 725, Code of 1897, as amended. The city power to legislate as to rates, however, is not abridged by the fact that maximum rates have been fixed in a franchise voted upon by the people. Unfortunately, street rail- way rates are not covered by Section 725, and the power of city councils to increase these rates above the maxi- mum provided in the franchise without a vote of the people is questioned. The Iowa supreme court has never made a decision on this point, nor has any district court, so far as I am aware. My own studies of the subject, however, which have been quite extensive, have con- vinced me that this power does not exist in city coun- cils, whether charter cities or those organized either under the general law or commission plan law. Status of Council's Acts The question as to the proper municipal officer or body to exercise this rate-m^aking power is not the vital question. The vital question now is whether the acts of councils in naming maximum rates in franchises are to be considered as consummating contracts or are to be considered as purely legislative acts of the council. ♦Abstract of paper presented before Iowa Electric Railway Association, Colfax. Iowa, June 18, 1919. If contractual in character they are binding upon the utility regardless of whether its last dollar is exhausted in fulfilling the obligation of its contract; if purely legislative in character, that is to say, the initial exer- cise by the city of its power to fix rates by law, they are subject to attack if by reason of changed conditions the rate fails to yield a fair return upon the fair value of the property devoted to the public use. It is the opinion of those of us who have been en- gaged in the rate litigation now before the State and Federal Courts that these franchise rates are to be considered as purely legislative in character and subject to attack as confiscatory under present day conditions, while city officials have earnestly contended that fran- chise rates are contracts binding upon the company but not upon the city. So far we have had no controll- ing decision. Judge Wade of the Federal Court has in an interlocutory opinion held adversely to us. Judge Applegate, one of the most distinguished of the District Judges of Iowa, has held with us; while the State Su- preme Court, in the case of Town of Williams vs. Iowa Falls Electric Company, has very strongly intimated if not fairly declared its opinion that our view is the correct one. Why Franchise Rates Are Legislative AND Not Contractual Unless it is granted in express terms, cities have no legislative power whatever over rates of public utilities, and in but few states has this legislative power over rates ever been granted to municipalities. It is out of this failure of many states to grant to municipalities this law-making power over rates, coupled with the fail- ure of the legislatures to exercise it directly, that the courts of many states have held that cities may have the power to contract as an implied power even though no express power to contract was granted. This rule is so firmly established and supported by such an abundance of distinguished authority that were it not for Section 725 delegating express legislative authority over rates to our cities and towns, our position would be clearly untenable. But in Iowa the cities and towns have been granted complete legislative authority over rates, and that the power to fix rates by law ob- viates all necessity of possessing the power to fix them by contract admits of no dispute. However, implied powers are not to be found to make things more con- venient or more desirable; they must be necessary to the proper functioning of the city upon a given subject or they do not exist. Therefore, we confidently assert that while cities and towns in Iowa have complete authority to fix rates by law, they do not have power to fix them by contract even though the contract be binding only upon the utility. Ordinance provisions, therefore, must be considered as legislative and treated by the courts as such. It is perfectly proper for a city council to include regulations of rates in the ordinance granting the fran- chise and such regulations do not, from the mere fact that they are included in the ordinance granting the franchise, become contractual in character by reason of the acceptance of the franchise. They are legislative rate regulations to exactly the same intent and purpose as though enacted by the city in a separate and distinct ordinance and should be so treated. This rule is better for the city, for the utility and for the consumer. If it be held by our Supreme Court that July 5, 1919 Electric Railway Journal 29 the so-called franchise rates are legislative in character and thus subject to attack if so low as to be confiscatory under present prices, the decision will be welcomed not only by the utilities but also by the greater proportion of the city councils of the state and by practically all the consumers. It is a remarkable and gratifying fact that in the greater portion of our Iowa cities and towns the city officials have responded to the needs of the companies with a promptness and fairness unexcelled by any of the public utilities commissions. Pending the ultimate solution of this problem by the decision of our high courts, no utility should accept a new franchise in Iowa which is granted in an ordinance attempting also to fix rates. If the cities or towns desire the rates to be fixed, they themselves should establish them by separate ordinance which is the fair, just and legal method of proceeding. A number of years before the outbreak of the war some of the companies I have represented adopted this policy, and many fran- chises have been granted throughout Eastern Iowa in this manner. It is needless to say that these companies have not been troubled during the war with any litiga- tion over increased rates, as automatically the councils are obliged to increase the rates to keep pace with the cost of production and all have willingly done so. It is only where the average mayor or councilman feels that he may be criticised for his action in relieving the com- pany from a contract that he hesitates about meeting the situation fairly. If this litigation should be decided adversely to the companies, then in my opinion no Iowa gas or street railway company would be warranted in spending any substantial sums for improvements or extensions until it has first secured a new franchise drawn upon proper lines. No franchise at all would be much superior to a so-called contractual franchise, for the reason that the Supreme Court of the United States in the late Denver water case and again in the late Detroit United Railway case has held that even though a utility has no franchise at all, those accepting its service must pay a rate which will yield a fair return upon the reasonable value of the property devoted to the public use. I believe that most city councils with a full apprecia- tion of the situation would rather accept a surrender of an old franchise to which is attached rates so low as to bring about the practical insolvency of the company and grant a new franchise without rates under the Iowa law than face the inevitable outcome of the ruin of the utility. If this rate litigation is decided ad- versely to the companies, there should be immediate effort on the part of all utilities to secure franchises without the rate provisions. Sorbitic Treatment for Rails Can Be Applied to New Rails or Those in Place — The Rail Surface Is Hardened by Use of This Process REFERENCE has been made in these columns to the sorbitic method of hardening rail surfaces, de- veloped in Great Britain and invented by C.P. Sandsberg. When applied at the mill, the heads of the rails, as they come from the hot saw at a temperature of about 900 deg. C, are subject to a blast of air at 15-lb. pressure from a series of discharging nozzles. The result of this treatment is the formation in the rail head of different structures which vary according to their depth from the surface, the outer being sorbitic, while pearlite without lenticular formation is found in the center of the head. Sorbite is the term applied to denote the hard, fine granular structure, ob- tained without loss of tensile strength or elongation, and with granules scarcely dis- tinguishable with a magnifi- cation of 1000 diameters. A special feature of the sorbitic process is that it need not be applied only to new rails, but Tails or special work in place in the street can be treated without disturbing the pavement. In fact, extensive orders for the treat- ment of rails in situ are being executed for tramways in Croydon, Birmingham, Manchester, Bournmouth, London, Liverpool and Glasgow. On March 13, 1919, through the courtesy of T. B. Goodyer, general manager of the Croydon Corporation Tramways, a demonstration was arranged for a repre- sentative of the Electric Railway Journal by Scholey & Company, Westminster, agents for Mr. Sandberg. A length of rail was subjected to the flames from a spe- cially designed twin or duplex oxy-acetylene blow pipe, mounted on a light hand-propelled, geared truck, which advanced at the rate of about 1 ft. per minute. The rail surface was raised to a red heat and immediately quenched by means of water jets, close to and just be- hind the blow-pipe nozzles. After the passage of the truck, large, freshly-ground cold chisels were applied to both treated and untreated portions of the rail. No difficulty was experienced in notching the untreated rail, but the edges of the chisels were immediately turned up or chipped on being applied to the treated portions. The speed of the operation may be regulated to suit the particular requirements of the case by the use of twin, triple, quadruple or fishtail burners. diagram of rail, showing sections from which mi- crophotographs were taken A. B. C MICROPHOTOGRAPHS SHOWING GRADUAL CHANGE OF STRUCTURE IN RAIL, HEAT TREATED BY SANDBERG PROCESS 30 Electric Railway Journal VJ. 54, No. 1 An interesting experiment was carried out two years ago on the Leeds Tramways, with the in situ treatment. Here a length of rail, heavily corrugated, had the corru- gations removed and a portion of the rail was treated. So far, the corrugations have not recurred on the treated rail although they are fully developed on the untreated length. A similar experience is now reported from Birmingham so. that the process may have an important bearing on the solution of the corrugation problem. Ashes — Handling by Steam Conveyor Versus Manual Labor A CORRESPONDENT who is friendly to the steam- jet conveyor plan of handling ashes, calls attention to the need for additional information if the compari- son contained in the brief article on page 951 of the May 17 issue of this paper is to be applicable under conditions more general than those described. On re- quest of the editors of this paper the American Steam Conveyor Corporation has furnished the following addi- tional information: The steam ash conveyor figures previously given were for an installation in the Big Mine of Canada. This does not have an ash storage bin, but discharges the ashes onto the open prairie, about 140 ft. from the boiler house. Farmers frequently come from the sur- rounding territory and haul away the ashes for filling purposes. As to an item to cover fixed charges on the steam conveyor and the ash storage bin, there undoubt- edly should be such an item, but an analysis of a num- ber of steam conveyor systems which have been in oper- ation for several years has shown that the charges are quite low when the cost per ton of ash is taken into consideration. In the charge of manual labor there would be an item of $5.50 for carting and no equivalent charge where the ashes were handled through the steam conveyor. This is due to the fact that in this case the ashes were discharged onto a pile far enough away from the boiler so that they would not interfere. In the case of the manual labor item the ashes were wheeled outside, and then loaded onto wagons, which hauled them to a dis- tance of 250 ft. from the mine. No steam allowance was made in the comparison as the Canada West *Coal Company, which operates this mine, burns in its power RAIL AND LIG BLOCKS FOR PAVIN3 IX STREET CAR TRACKS plant a dirty, fine slack which had been stored on the open prairie. This is practically refuse coal which the company cannot sell, and consequently the charges for steam were disregarded. Paving: Blocks and Sectional Paving for Railway Tracks New Type of Construction Along the Tracks of the Toledo Railway & Light Company Is Giving Satisfaction THE accompanying views illustrate several specially shaped wood blocks for paving along railway lines. One of the illustrations shows alternate rows of Kreolite end-lug wood paving blocks and ordinary second-hand paving bricks laid alternately. The wood blocks were laid about J in. higher than the bricks so that the annealing effect of traffic could weld the wood over the edges and prevent cobbling of the bricks. This method of installation also tends to reduce the noise produced by vehicular traffic and as well provides a non-slippery surface. The Kreolite blocks are treated with 6 lb. of creosote per cubic foot by the Rueping process. The end-lug block absorbs all expansion and prevents buckling or thrust against the rails. One il- lustration shown which is of particular interest is that of a pavement which has been in service for six months and illustrates how the wood blocks iron out over the bricks. It was taken along the Main Street tracks of the Toledo Railway «fe Light Company. Another illustration shows how the header blocks are set in a trench and concreted into position. These header blocks serve as a boundary between the railway company's and city's paving. They prevent loosening of blocks in the city's portion of the pave:Tient which might be caused by vibration of the tracks. The illustrations showing the sectional paving for crossings were also taken on the lines of the Toledo Railway & Light Company. The sections are not fast- ened down but simply laid in place and can be removed bj' two men with crowbars. It is thus not necessary to take up all the pavements to repair frogs, as only that portion adjacent to the frogs need be removed in order to make repairs. Of the two intersections shown, one cost $121 and the other $129 installed. It is estimated that the cost LUG AND RAIL BLOCKS WITH STRETCHER BLOCKS OUT- SIDE OF RAILS July 5, 1919 Electric Railway Journal 31 \ SECTIONAL PAVINt; CROSSINGS ON THE TOLEDO RAILWAY & LIGHT CO.'S LINE— AT LEFT, liMTERSECTlON AT CHERRY AND MICHIGAN STREETS ; AT RIGHT, INTERSECTION AT CHERRY AND HURON STREETS necessary to install concrete, wood block or brick pave- ment at these points would have been slightly more than ?100, and these would have had to be renewed every time that the crossing needed repair or renewal of worn parts. The intersection at Cherry and Michigan Streets, Toledo, is a 9-in. 125-lb. groove-rail built-up crossing and that at Cherry and Huron Streets is a 9-in., 137-lb., hard-center crossing. These two intersections cost more than if the track had been a 6-in. rail, as it was necessary to use additional planking under the sectional pavement in order to bring it to the full 9 in. which was the rail height. These two intersections were installed in March of this year and are giving good satisfaction. Inspections made at the Cherry and Huron Streets crossing showed that all four of the crossing frogs were working. This would have destroyed the usual type of paving and would have necessitated an expense of from $50 to $100 to replace it, while with this special construction it has not been necessary to disturb the pavement, the expense of replacing it has been saved and the annoyance of bad crossing conditions, to both pedestrians and vehicles, has been avoided. The Kreolite blocks used were made by the Jennison- Wright Company, Toledo, Ohio. Cement •Morfar ,7 T- rail anot Guard „ 5z x5i Header B -ei ^Spjkeol to Planking 100 lb. T-rail f'T-railanol ^i^^i Header 5i Lug Block Toe Guarol\ ^^piked to Plank Ba^e /^'^"ed foPhnkBase V X'' ^.'ilUJ '" .Spike Toe Nailing ^rWFWVMW\'€W^^WW^'^ 1 Block to Plank Base 100 lb. T-rail Lug Rail Block _], j x5 Ties InBa/fasi „ ., ^ '■ -.^"x 8" Plank inq Spiked 100 lb. 6 T-rail, furies Lug Nose Block' . K Lug Block.^ TOP, LEFT. CONSTRUCTION OF ELECTRIC RAILWAY TRACK PAVING WITH SPECIAL BLOCKS. TOP, RIC'HT. CONSTRUCTION DETAILS OP SECTIONAL PAVING FOR CROSSINGS. BOTTOM, SECTION OF PAVING ALONG TRACKS WITH HEADER BLOCKS ON OUTSIDE SET IN CONCRETE 82 Electric Railway Journal Vol. 54, No. 1 Committee of One Hundred Revised List of Those Who Will Present the Case of the Electric Railways Before the Federal Electric Railways Commission RESIDENT J. H. PARDEE of the American Electric Railway Association has giv- en out a revised and complete list of the committee of 100. Their names follow. The chairmen of the four subcommittees mentioned on page 33 are included in this list among the vice-chairmen, as with the vice-chairmen and the chair- men they form the executive com- mittee of the committee of 100. MILTON E. AILES, Vice-President Big-g-s National Bank, Washington. D. C. W. R. ALBERGER, Vice-President San Franciseo-Oal5land Terminal Railways Coraiiany. Oakland. California H. M. ATKINSON. Director Georgia Railway and Power Company, Atlanta. Georgia JULIAN M. BAMBERGER. President Bamberger Electric Railroad Company, Salt Lake City, Utah S. R. BERTRON. Dijector United Gas and Electric Engineering Corp.. New York City HENRY A. BLAIR. Chairman Board ol Directors Chicago Surface Lines, Chicag^o. Illinois CHARLES BOETTCHETR. Chairman Board of Directors Denver Tramway Company, Denver, Colorado H. G. BRADLEE. President Stone & Webster Management Corp., Boston, Massachusetts NICHOLAS F. BRADY, President New York Ed. son Company, New York City FRANK W. BROOKS, President Detroit United Railways, Detroit, Michigan BRITTON I. BUDD, President Metropolitan West Side Elevated Railway Company, Chicago, Illinois H. M, BYLLESBY, President H. M. Byllesby Company. Chicago. Illinois CLARENCE M. CLARK. President E. VV. Clark Management Corporation, Philadelphia. Pennsylvania B. C. COBB. Vice-President Hodenpyl, Hardy aaid Company, New York City BARRON G. COLLIER. President Barron G. Collier. Inc., New York City E. G. CONNETTE, President International Railway Company, Buffalo, New Y'ork NORMAN Mc. D. CRAWFORD, Vice- President Columbus Railway, Power and Light Company, Columbus, Ohio THOMAS A. CROSS. President United Railways and Electric Company, Baltimore, Maryland GERHARD M. DAHL, Vice-President Chase National Bank, New York City ARTHUR V. DAVIS. President Aluminum Company of America, Pittsburgh, Pennsylvania MOREAU DE'LANO, Brown Brothers, New York City A. C, DINKEY, President Midvale Steel Company, Philadelphia, Pennsylvania HENRY L. DOHERTY, President Henry L. Doherty & Company, New York City WALLACE B. DONHAM, Vice-President Old Co.ony Trust Company, Boston, Mass. R. J. DUNHAM. Vice-President Armour and Company, Chicago, Ilhnois W. CARYL ELY. Barron G. Collier, Inc.. New York City VAN HORN ELY. President American Railways Company. Philadelphia. Pennsylvania 'EDWIN C. FABER. Vice-President Aurora. Elgin & Chicago Raih'oad Company. Aurora, Illinois HENRY FLOWERS, President FideUty National Bank and Trust Com- pany, Kansas City, Missouri ALLEN B. FORBES. President Harris Forbes and Company. New York City FRANK R. FORD. Ford. Bacon and Davis, New York City FRANK W. FRUEAUFP. Henry L. Doherty and Company, New York City FREDERICK GOFP President Cleveland Trust Company, Cleveland, Ohio GEORGE DE B, GREEN, Vice-President California Railway and Power Company, New York City FRANKLIN T. GRIFFITH, President Portland Railway, Light and Power Com- pany, Portland, Oregon E. K. HALL, Vice-President Electric Bond and Share Company. New Yorlt City Chairman Guy E. Tripp Westinghouse Electric & Manufactur- ing Company. New York City Vice-Chairmen John H. Pardee President American Electric Railway Association. New York City A. W. Brady President Union Traction Company of Indiana, Anderson. Indiana Joseph K. Choate Vice-President J. C. White Manage- ment Association, New York City Samuel M. Curwen President J. G. Brill Company. Phila- delphia. Pennsylvania Philip J. Kealy President Kansas City Railway Com- pany, Kansas City, Missouri Thomas N. McCarter President Public Service Railway Company. Newark. New Jersey James H. McGraw President McGraw-Hill Company. Inc., New York City J. D. Mortimer President North American Company, New York City Lucius S. Storrs president The Connecticut Company, New Haven. Conn. H. L. Stuart Halsey Stuart Company. Chicago. 111. O. B. Wilcox Vice-President Bonbright & Company. New York City 0. D. Young Vice-President General Electric Company. New York City W. P. HAM, President Washington Railway and Electric Company, Washington, D. C. GEORGE E. HAMILTON, President Capital Traction Company, Washington. D. C. C. H. HARVEY. President Knoxville Railway and Light Company Knoxville. Tennessee ANTON G. HODENPYL. Hodenpyl, Hardy and Company, New York City FR-4.NCIS T. HOMER. President. American Cities Company, New York City SAMUEL INSULL, Chairman Board of Directors Metropolitan West Side Eflevated Railway Company, Chicago, Illinois A. B, LEACH, President A. B. Leach and Company, New York City ARTHUR W. LOASBY, President First Trust and Deposit Company, Syracuse, New York HOMER LORING, Chairman Public Trustees Bay State Street Railway System. Boston. Massachusetts HORACE LOWRY. President Twin City Rapid Transit Company. Minneapolis. Minnesota A. M. LYNN, President West Penn Railways Company. Pittsburgh. Pennsylvania RICHARD McCULLOCH, President United Railways of St. Louis. St. Louis. Missouri WILLIAM B. McKINLEY, President IlUnois Traction System. Peoria. Illinois SAMUEL McROBERTS. Executive Manager National City Bank. New York City S. Z. MITCHELL. President Electric Bond and Share Company. New York City THOMAS E. MITTEN. President Philadel- phia Rapid Transit Company, Philadelphia, Pennsylvania RANDALL MORGAN. Vice-President United Gas Improvement Company, Philadelphia, Pennsylvania J. K. NEWMAN. Chairman of Executive Committee American Cities Company, New Orleans, Louisiana J. R. NUTT. President Citizens Savings and Trust Company. Cleveland, Ohio E. H. OUTERBRIDGE. President Pantasote Compan.v. New York City J. S. PEVEAR President Birmingham Railway. Light and Power Company, Birmingham, Alabama E. W. RICE. Jr.. President General Electric Company. New York City EDWIN W. ROBERTSON. President Columbia Railway. Gas and Electric Co., Columbia. South Carolina E. N. SANDERSON, Sanderson and Porter, New York City W. KESLEY SCHOEPF, President Cincinnati Traction Company, Cincinnati, Ohio J. N. SHANNAHAN. President Newport News and Hampton Railway, Gas and Electric Co. Hampton. Virginia THEODORE P. SHONTS. President Interborough Rapid Transit Company New York City PAUL SHOUP. President Pacific Electric Railway Company, Los Angeles, California CLEMENT C. SMITH, President Wisconsin Securities Company, Milwaukee. Wisconsin JOHN J. STANLEY, President Cleveland Railways Company, Cleveland, Ohio R. P. STEVENS. President Mahoning & Shenango Railway & Light Company New York. N. Y. CHARLES A. STONE Stone and Webster, Boston, Mass. J. J. STORROW, Lee, Higginson and Company, Boston, Massachusetts J. P. STRICKLAND. President Dallas Railway Company, Dallas, Texas KNOX TAYLOR. President Taylor-Wharton Iron and Steel Company High Bridge. New Jersey A. W THOMPSON, Federal Manager Baltimore and Ohio Railroad Company, Baltimore. Maryland W. B. TUTTLE. First Vice-President San Antonio Public Service Company, San Antonio. Texas T. H. TUTWILER President Memphis Street Railway Company. Memphis. Tennessee WILLIAM VON PHUL, President United Railroads of San Francisco, San Francisco. California ' G. W. WATTLES. Vice-President Omaha and Council Bluffs Street Railway Company. Omaha. Nebraska EDWIN S. WEBSTER. Stone & Webster Management Corp., Boston, Mass. H. H. WESTINGHOUSE, Chairman Board Westinghouse Traction Brake Company, New York City THOMAS N. WHEELWRIGHT, President Virginia Railway and Power Company, Richmond, Virginia JAMES G. WHITE, President J. G. White and Company. New York City HARRISON WILLIAMS, 60 Broadway, New York City TIMOTHY S. WILLIAMS, President Brooklyn Rapid Transit Company. Brooklyn, New York GEORGE T. WILSON, Vice-President Eauitable Life Assurance Company. New York City J. H. WILSON. President Mobile Light and Railroad Company, Mobile, Alabama July 5, 1919 Electric Railway Journal 33 American Association News Committee of One Hundred Meets Four Sub-Committees Appointed — Preparing Case for Early Presentation THE committee of one hundred appointed by the American Electric Railway Association to prepare the case of the electric railway industry for the presen- tation to the Federal Commission, designated by the President of the United States, to investigate the elec- tric railway situation, held its first meeting in New York on June 26. Chairman Tripp presided and in addition to the members of the committee Philip H. Gadsden, the member of the commission representing the American Electric Railway Association, was present. Mr. Gadsden stated that the present plan of the commission contemplated holding hearings in Washing- ton once or twice a week and that it was the present purpose not to consider individual cases except in so far as they might have bearing on the whole situation. As a result of the meeting it was decided to appoint four sub-committees, one each on recommendations, presentation, finance, and information and service. The membership of the sub-committees is as follows: Committee on recommendations : O. D. Young (chair- man), H. G. Bradlee (vice-chairman), H. M. Byllesby, C. M. Clark, Frank W. Frueauff, Samuel Insull, Randall Morgan, J. J. Stanley, H. H. Westinghouse, E. N. Sanderson. Committee on presentation : J. K. Choate (chairman) , Philip J. Kealy (vice-chairman), E. K. Hall, A. W. Brady, Britton I. Budd, R. P. Stevens, Frank R. Ford, Francis T. Homer, J. D. Mortimer, Lucius S. Storrs. Committee on information and service: Lucius H. Storrs (chairman), W. F. Ham (vice-chairman), Francis H. Sisson, W. R. Alberger, Barron G. Collier, B. C. Cobb, T. A. Cross, James H. McGraw, J. N. Shannahan, Britton I. Budd, T. S. Williams. Committee on finance: H. L. Stuart (chairman), Thomas N. McCarter (vice-chairman), Samuel M. Curwen, Henry L. Doherty, Samuel Insull, A. B. Leach, Randall Morgan, E. W. Rice, Jr., Edwin S. Webster. Under the direction of the committee of one hun- dred, of which Guy E. Tripp is chairman, the Ameri- can Electric Railway Association is preparing the case of the electric railways, to be presented to the commis- sion appointed by the President to investigate the elec- tric railway situation. It is now probable that a request will be made to the commission for a hearing to start in Washington on July 14 and to continue until the entire case is presented, which it is estimated will take two weeks. The corrimittee on presentation, under the chairman- ship of J. K. Choate, and the committee on recom- mendations under the chairmanship of 0. D. Young, will meet on July 7 to give formal approval to the tentative program which is already prepared. If this program is accepted, the case will be presented under three headings: 1. Present conditions of the industry. 2. The causes which have led to these conditions. 3. Suggested avenues of escape. The association is endeavoring to present to the com- mission an array of witnesses who are thoroughly famil- iar with the various phases of electric railway opera- tion, finance and economic theories which govern pub- lic utilities. The list includes some of the best-known men in America — financiers, economists and men thor- oughly familiar with public life. It is commandeering the services of witnesses wherever the best men can be obtained. Chairman Tripp believes that the situation is one in which it is the duty of every man interested to render what service he can. An opportunity is offered for presenting the case of the railways in such a way as to impress upon the people of the United States the desperate straits in which the industry is at present, and the necessity for immediate action in the interest of the public, the em- ployees and of the owners of these properties. Presentation of the case, under Chairman Choate, will be in direct charge of a railway attorney of na- tional reputation, who has participated in a number of investigations along similar lines and who is thoroughly familiar with the subject. As far as possible the evi- dence will be brought before the commission in a sequence which will develop the case from the start to the conclusion. Among the important evidence to be presented is that dealing with the present price level and its prob- able maintenance for an indefinite period. It is the intention of the committee to show that what was at first considered a matter of short duration is in reality a condition that is likely to maintain for a long period of time. All of the various phases of the situation, the causes which have led up to them, the various remedies that have either been suggested or applied in particular situations, are to be brought out. Included is a very complete and thorough analysis of the statistics of electric railways as developed by the United States Census as well as later statistics which have been com- piled by the association for that purpose. Equipment Committee Holds Busy Session AT THE MEETING of the equipment committee of the Engineering Association, held in New York City on June 26, the chairman, Daniel Durie, Connells- ville, Pa., presided, and the others present included W. S. Adams, Philadelphia, Pa.; W. W. Brown, Brook- lyn, N. Y., representing W. G. Gove; R. H. Dalgleish, Washington, D. C; E. D. Priest, Schenectady, N. Y.; K. A. Simmon, Pittsburgh, Pa. ; N. B. Trist, East Pitts- burgh, Pa., and F. A. Vial, Chicago, 111., representing G. W. Lyndon. The sub-committee appointed to consider the develop- ment of check gages and templets for wheels and truck parts presented recommendations for wheel mounting, a check gage and a rotundity gage for wheels together with terms and gaging points for wheels and tracks. They also included tables of dimensions for standard wheel designs for use on electric railways. The sub-committee on standardization of motor parts presented a list believed to cover the best possible field for standardization and recommended that the parts listed be considered in connection with any program for future work. The limited time which had been avail- able for this work prevented the formulation of definite recommendations for standardization. The sub-committee appointed to co-operate with the National Fire Protective Association in formulating a 34 Electric Railway Journal Vol. 54, No. 1 code for l^OO-vclr car wiring reported that it had been co-operating with this association, but at present no definite recommendations could be made. Committee Meetings of Week THIS is a busy time at association headquarters. Besides the equipment committee, whose meeting is mentioned in a separate paragraph, the committee on collection and registration of fares held a meeting during this past week. Those in attendance were: W. J. Harvie, chairman, E. C. Spring, C. W. Stocks and L. H. Palmer. At this meeting the final draft of the report was prepared. During the coming week committee meetings sched- uled include the following: July 7, code of traflSc prin- ciples of the T. & T. Association and recommendation and presentation of the committee of 100; July 8, termi- nal contracts of the T. & T. Association, information and service of the committee of 100, and the sub- committee on exhibits of the main association; July 9, executive committee of the T. & T. Association and fi- nance committee of the committee of 100; July 10, full meeting of committee of 100: Jub^ 11, sub-com- mittee of committee on zone fares. "Tramway & Railway World" Discusses "Journal's" Glasgow Articles A PLEASANT note of gentle raillery against the American flat fare and free transfer is sounded by the Tramway & Railway World of London, in its May 15 review of Walter Jackson's first three articles on "The Zone System in Practice." These were the Glasgow articles published in the Electric Railway Journal for Feb. 22, March 8 and March 29. Among other things, it says: The native home of the tramway is in a rather confused state, and its guardians are looking for some way out of the trouble. Tramway managers in the United States are nnding that the incomes of their undertakings do not bal- ance expenditure, and as Wilkins Micawber testified from the depths of experience, that means misery. For a long time the cause of the trouble seemed difficult to locate. Here, said the American tramway managers, in effect, • we have an ideal system for collecting cash; every passen- ger, no matter how short the distance he travels, must put down his nickel. No fuss, no trouble, no worry in collec- tion— it is all so simple a child could collect the 'fares — and yet there is the deficit. What is wrong?" In the days of their prosperity the tramway managers in New \oYk, and beyond, had seen and sniiled at the British method of charging and collecting fares. It had seemed to them much trouble for very little gain. Cent, 2-cent, 3-cent, 4-cent, and so on, tickets, with a conductor ranging through the car continually collecting coins and punching tickets, carrying a ticket bank as long as his foi-earm, struck our transatlantic friends as very near'y the acme of the ridiculous. They had escaped all that by the mere application of common sense at the start — charge the passenger 5 cents when he boards the car, and there is an end of it. The success of British tramway undertakings, which carry enormous numbers of passengers at the equivalent of a 2-cent fare, has latterly, however, begun to give t' em quite an air of respectability in the eyes of United States managers, and the zone system of charging fares shares n the enhanced repute. After all, for a thickly-populated old country zone fares were not altogether to be despised; but, of course, for a country like America the uniform charge was the more suitable. In that tolerant frame of mind, our transatlantic friends arrived at 1914. Then a mysterious' disease began to attack all grades and classes of tramway un- dertakings. Traffic increased, and receipts mounted up, but so also did expenditure, and while the increase in receipts slowed down, the additions to expenditure quickened pace. Indeed, it seemed as though things were working backwards, and that the more traffic there was on a system the worse were the financial results. Here was a mystery. At last it occurred to someone to ask if every passenger who paid a 5-cent fare really defrayed the cost of his ride. Nobody knew; short-distance, middling-distance, and long-distance passengers were all lumped together, and the only thing that remained certain was that cars did not pay the ex- penses of their journeys. To avoid bankruptcy, some tram- way undertakings have adopted the expedient of putting a limit to the 5-cent journey, and making an additional charge for any distance beyond. Results have shown im- provement, and therefore the question whether or not the zone fare system should be adopted in America has become a live topic over there. Up till about twenty years ago it was a widespread belief that the first-class passengers on railways were the chief contributors to revenue, though railway officials had long known that the case was exactly opposite. The report of the Peel commission in 1867 clearly showed that the back- bone of railway passenger revenue was the third-class, but the superstitious reverence for the first-class survived till the last few years of the nineteenth century, when the con- dition of railway aff'airs became so critical that inquiry into all the facts became an absolute necessity. After that, the first-class passenger traffic was recognized as a costly form of advertising. A similar process has taken place with regard to long- distance traffic on the tramways. In the early days the through passenger was considered most important by tram- way authorities, but the essential quality of a tramway system is its adaptability to the needs of the short-distance traveler. Experience has shown that the latter is not only the largest factor, but also that he pays best for his ride. Mr. Jackson brings out the point clearly in his observation of the Glasgow tramways. Our contemporary concludes its review by referring to the problem of auditing and checking the great variety of fares required with the zone system, but expresses the opinion this is a light task compared with that of checking the time limits and other features of the American transfer, and says that in this opinion "everyone at all familiar with the diflficulties of in- spection and the abuses to which the latter gives rise, will emphatically agree." Letter to the Editors How the Use of Standards May Be Stimulated Public Service Railway Newark, N. J., June 30, 1919. To the Editors : I have read with interest the editorial in your last issue about standards. It seems to me that we now have a splendid opportunity to make great progress in standards. As you say, we have learned a lesson from the war, and, besides, the manufacturers are now more closely allied with the association than ever before. I believe it would be a simple matter, for example, to limit all of the rail sections rolled to standard sections as designated, say, by the way committee of the associa- tion. When an order is placed for a rail of a type other than the standards set forth, the manufacturer would at once take up the question with the Way Committee, or some other authorized agent of the association. Then, if there was some good reason to have the extra section rolled, the manufacturer would be advised that it was O.K. ; otherwise, the manufacturer would refuse to roll the rail. Similar arrangements could be made for me- chanical and other parts that are standards. Martin Schreiber, Chief Engineer. July 5, 1919 Electric Railway Journal 35 Recent Happenings in Great Britain Review of Legislation That Is in Prospect — London Traffic Unprece- dented— Military Motor Lorries Converted to Passenger Service iW)-om Our I'lgnlar Correspondent ) The course of legislation affecting traction interests in Great Britain con- tinued to te of much interest during May. Events seem to be now fairly on the way toward the state of things in which national control, unification and co-ordination will take the place of individualism. The hope is for greater economy and efficiency; the fear is of the smothering of individual enterprise and the paralysing effect of red tape and bureaucracy. Government's Bill Modified The Ministry of Ways and Com- munications bill has at length passed through its long period of discussion and criticism by a standing committee of the House of Commons. It has been modified in some respects, chiefly in the direction of lessening the autocratic powers to be conferred on the new minister, and for retaining more Par- liamentary control. The minister is to act with the help of advisory com- mittees, and when he proposes to em- bark on new schemes costing more than £1,000,000 he must get the sanction of Parliament instead of proceeding by orders in Council. In general, however, the wide powers of the Minister are retained for dealing with all systems of transportation — unifying, co-ordinating and improving — but municipally-owned tramways are still excluded from the scheme. The powers are so wide and general that it is not possible to say exactly what the minister may do. The bill will probably be passed into law during the summer or autumn. The other leading measure affecting traction interests — the electricity sup- ply bill — passed its second reading in the House of Commons on May 14. As it is a long and complex bill and as it touches so many interests, its detail consideration by a committee is likely to be protracted. Cheap Electricity the Aim The fundamental object of this meas- ure is to provide a cheap and abundant supply of electricity for all purposes throughout the United Kingdom. The main organization proposed consists of a central controlling body called the electricity commissioners and a num- ber of district electricity boards. The commissioners will act under the general direction of Minister of Ways and Communications. They will di- vide the country into districts, and for each district they will constitute a Dis- trict electricity board. These boards will be composed of representatives of local authorities, companies and other authorized undertakers, large consum- ers and labor. The district boards will take over all generating stations and main trans- mission lines, erect new stations and extend and consolidate the whole sys- tem of supply on uniform lines. Dis- tribution to consumers will remain in the hands of the existing authorities, municipal or company. Financing is to be done locally so far as possible. The weak point in the bill is that so many of the powers are to be permis- sive instead of mandatory. For ex- ample, the commissioners "may" set up a board for each district. So some dis- tricts may have boards and some not. Yet one of the essentials for a na- tional supply is uniformity. Necessary provision is made for technical knowl- edge and advice. The ideal aimed at is expected to be the shutting down of many small sta- tions and the substitution therefor of a few enormous stations feeding into great main transmission lines, from which distribution for all purposes will take place. The two leading kinds of opposition to the scheme promise to be those of the municipalities which will be shorn of some of their powers, and a part at least of the engineering and manufacturing interests who object to the great powers to be conferred on the district boards, and want more free- dom and room for private enterprise. Crowding on the Underground There has been a fierce agitation among London members of Parliament in connection with the overcrowded state of the underground railways and the tramcars and the omnibuses and also over the subject of the increased fares. They have had interviews with leading officers of the various under- takings, who tried to convince them that everything possible was being done to overcome the difficulties. They have sent deputations to the Local Govern- ment Board and to the Board of Trade, and these departments have promised to do what they can. The upshot of the matter is that the transport au- thorities cannot help themselves for the time being. Plenty of new rolling stock is on order to meet the unprece- dented demand for accommodation, but only now after long waiting does there seem to be a prospect of getting some new cars delivered. Labor is getting more plentiful, but material is still scarce. As for cost, it is beyond words. It is probably safe to say that no fresh capital expenditure incurred in present conditions can be remunerative, despite increased fares. The first sen- sible relief from congestion may not come till the autumn or winter, by which time London should be consid- erably emptied of its present excess of temporary population and troop traffic should have died down. For the pres- ent the local London passengers are as the sands of the seashore for multitude; they are unprecedented, overwhelming. Only the enormous increases in wages and other working expenses prevent the transportation concerns from being in a state of financial prosperity. This London transport agitation led in the end of May to the Government consenting to appoint a select commit- tee of the House of Commons to in- quire into the subject and propose remedies. The committee promptly started work in the beginning of June before Parliament rose for the Whit- suntide recess. The members continued hearing evidence during the holiday time. In the meanwhile a new phenome- non burst upon the eyes of Londoners early in June in the shape of a number of military motor lorries converted into omnibuses by the provision of cross seats. They are no longer needed for war, and they are being used to allevi- ate congestion until more omnibuses of the ordinary kind can be built. Mr. Stanley Underground Chairman A man who is about once more to be officially concerned almost more than anybody else with London transport problems in their underground railway and street omnibus aspects is Sir Albert Stanley. Owing to persistent ill health he has been obliged to relinquish his office of President of the Board of Trade, and on the last day of May he sailed for America in the hope that the visit would re-establish his health. Be- fore he left he was elected chairman of the Underground Electric Railways, London, Ltd., and he thus returns to a position of even more influence than he formerly occupied in connection with the associated London transport under- takings. Sir Albert was made managing di- rector of London underground railway systems more than ten years ago. The business developed enormously under his administrative talent. Then in the earlier period of the war he, like a number of other capable railway men, was induced for the time being to leave his own occupation and to join the gov- ernment in order to give practical help in time of emergency. He was appointed President of the Board of Trade, and later on in recognition of his services in that capacity he received the honor of Knighthood. He has carried on his work with little external show, but with much efficiency. The good wishes of all who "know him go with him to America, along with the hope for his speedy return in restored health to take up the great task, now more urgent than ever, of developing the railways and other undertakings with which he is again connected. Every effort is being made in this country to hasten the renewal of tram- way tracks worn out during the war. A number of tramway authorities have also been in the market lately for addi- tional steam and electric plant and cars. There is much difficulty and de- lay in getting the wheels of production into motion again, and that despite the fact that there are about 1,000,000 men discharged from the army who cannot flnd employment. News of the Eledric Railways FINANCIAL AND CORPORATE • TRAFFIC AND TRANSPORTATION PERSONAL MENTION Winnipeg Strike Over Six Weeks of Disorder, During Most of Which City Went Entirely With- out Railway Service Winnipeg's general sympathetic strike of 35,000 workers was called off by the strike committee at 11 o'clock on the morning of June 26, having lasted exactly six weeks, and having accomplished practically nothing. The account of the trouble in the Electric Railway Journal for June 21, page 1238, traced, briefly the early develop- ments of the strike and told of the attempt of the strike leaders to tie-up completely all industries and public utilities in the city. The splendid voluntary services of the citizens of the city, who resisted such a ruthless assault, and who saw in it an attempt to establish the rule of the soviet in Winnipeg, kept all utilities operating, and after the third week of the strike employees be- gan to drift back to their jobs. The City Council of Winnipeg, however, de- cided not to take back any emjjloyees who refused to sign a pledge express- ing complete loyalty to the city, declin- ing to join a union affiliated with any outside organization, and also refusing at all times to go out on a sympathetic strike. This applied to the firemen and policemen, who went out on strike at the call of the strike committee. At present all utilities are manned by regular staffs, while most of the for- mer police and firemen are back on their old jobs, having "signed the pledge." The ignominious ending of the strike, resulting in complete defeat for the strikers, has brought about a serious split in tne labor ranks. The saner ele- ment are dissociating themselves from the more radical trades unionists, and denunciation of the strike leaders by the mass of the workers is general. As stated in previous dispatches the Winnipeg Electric Railway was ordered by the City Council to resume service after the strike had been in progress four weeks. The company made an ap- peal to the men to return, but without success. On June 17, however, A. W. McLimont, vice-president and general manager, issued an ultimatum to the effect that employees who did not re- port and were not available when re- quired to enable the company to re- sume service would be replaced by per- manent new employees and lose their seniority. It was further announced that new employees taken into the service would not be dismissed to make places for any old employees who sub- sequently decided to return to duty. 'This ultimatum expired at 8 a.m., on June 19. It resulted in several em- ployees returning to work. These, to- gether with supervisors and inspectors, manned the cars and gave service on the principal lines in the city. Fourteen cars were operated on June 19, and this number was gradually increased up to fifty cars by the time the strike was called off. Upon "peace" being de- clared the company's employees re- turned in a body and normal service was soon restored. On the whole, the strike was a very orderly one. On two occasions the strikers clashed with the special police, but only in the encounter of June 21 were cars running. In this instance the crowd attacked the car, pulled off the trolley, smashed every window, and tried many times in vain to upset it. Unable to do this they piled newspapers in the interior and set them on fire. Just at this moment a detachment of mounted police arrived on the scene, the fire was put out, and the car was run back to the carhouse. The mounted police, stoned by the crowd, retaliated with their revolvers. Two of the crowd were killed and scores injured. As an offshoot of the strike, strike leaders face charges of seditious conspiracy. The strike was called off by the strike committee "unconditionally," but the Provincial Government has appointed Judge H. A. Robson, a commission to inquire into the origin and the whole circumstances surrounding the strike. Wages Readjusted The co-operative plan of the Phila- delphia (Pa.) Rapid Transit Company now in effect provides a permanent basis of adjusting the wages of the employees of the company by averag- ing the wage scales of the four cities covered by the War Labor Board wage award of August, 1918, namely, Chi- cago, Cleveland, Detroit and Buffalo. The maximum wage paid the Detroit trainmen has under the recent settle- ment now been advanced to 60 cents an hour. The maximum in the cities of Chicago, Cleveland and Buffalo is 48 cents per hour. This produces an average maximum of 51 cents an hour for the Philadelphia trainmen, viz.: First three months, 45 cents an hour; next nine months, 48 cents an hour; thereafter, 51 cents an hour. At a meeting of the transportation committee, established under the co- operative plan, held on July 1, the above wage scale was announced to become effective at once. The wages of other employees will be adjusted according to the provisions of the co-operative plan as soon as the necessary facts and figures are obtain- able. Publicity Pays in Buffalo Marked Change in Attitude of Public Toward International Railway Fol- lows Publicity Campaign There has been a decided change in sentiment in Buffalo, N. Y., toward the International Railway since the com- pany started its publicity campaign about two years ago and turned the spotlight upon its financial condition and its internal affairs. Company Establishes Paper One of the biggest factors in bring- ing about this change in sentiment is the publication of the Service Spot Light, the editor of which has never been publicly announced by the com- pany. This little publication is issued every Monday morning and is placed in the "Take One" boxes which have been installed in all of the cars operated in the city and on the interurban lines. The first and second pages are occu- pied every week by an editorial in which the company usually takes the position that it is being unfairly attacked by outside influences and individuals who do not understand the real situation in the company's internal affairs. In a recent issue the Service Spot Light took a shot at the Mayor for his recent speech before the state conference of mayors at Schnectady in which he said the company is not playing fair with the city; that it promoted the recent strike of the company's platform men and that it never was sincere in the service-at-cost proceedings which have since been abandoned. Space is given in the little paper for brief letters from car riders praising or criticising motormen and conductors. Letters which give the badge numbers of the crew are translated by the com- pany so that the names of the crew are published. In other space current events are listed which should attract people and add to travel over the com- pany's lines, and considerable space is given to facts about the International Railway's suburban and freight and ex- press service to points along its lines, and to jokes. Display Advertising a Feature Large display advertisements are ap- pearing in rural newspapers in locali- ties through which the company oper- ates cars pointing out why interurban fares have been increased and asking the public whether or not it is fair to criticise the company merely because it has raised fares to meet increased cost of operation. For a time the company's publicity department used considerable news- July 5, 1919 Electric Railway Journal 37 paper advertising space to offset hostile newspaper articles, but this form of advertising has been discontinued. An- other campaign carried articles signed by E. G. Connette, president of the company. These articles were displayed on posters in the car windows and swinging signs suspended from the roof of the car. Each of these different forms of publicity has done its share of the work of converting the public, according to President Connette. Through the medium of the Service Spot Light the International is showing the car riders how much more it is costing to operate the lines than it did five years ago; how much more is being paid out in wages to all of its em- ployees; how much is being paid yearly for paving between its tracks while this paving is constantly being destroyed by heavy trucks and other vehicles not owned or operated by the International, and how the cars are delayed beyond the control of the company's operating force. Very few letters are now received criticising the company and its officials. For a time when the company was under newspaper fire thousands of let- ters were received monthly scoring the alleged inefficient methods of the com- pany. The vote against higher fares, almost five to one, also indicated the hostile attitude of the general public. All this has now apparently been changed, and in its place has arisen an attitude of helpfulness toward the com- pany on the part of its riders through a keener appreciation on their part of the problems by which the company is confronted. New Jersey Award Announced War Labor Board Makes Public Its Findings but Reserves Decision on Important Issue The War Labor Board made awards on June 26 in the dispute between the Public Service Railway and its em- ployees, the awards being based, under the 1918 agreement for arbitration by the board, on the evidence taken at Newark since the settlement of the strike last March. Hours a Problem Among the demands of the employees was that all runs be made straight runs, thus eliminating gaps, and that the working day be nine hours for ten hours pay, that runs of eight and less than nine hours be paid on the basis of ten hours work and that runs of six and less than eight hours be paid on the basis of nine hours work. In announcing its ruling on this demand the joint chairmen said: At this time we are unable to grant the demands of the men as made. We do think, however, that some revision of the company's schedules should be made, if possible, to minimize the spread time and provide a full day's work for their trainmen. The spread time on some of the company's runs is now unduly long, and we recognize the justice of the men's claim for relief from such runs. To grant the demand of the men as made in Paragraph V (of the employees' claims) would mean a radical revision of the com- pany's schedules. The company maintains that such a revision is entirely impractic- able. The company has considerably more than 1500 runs of nine hours or over. We feel that a more careful study must be made before we can pass on this ques- tion. The evidence introduced at the hear- ings did not give us sufficient information. This is a work of painstaking study and care, and we are delegating to our electric railway examiner, Charlton Ogburn, the task of making this study and reporting on what revision, if any, can be made in the company's schedule toward meeting these demands of the men, and would authorize him to make a ruling covering the demands embodied in paragraph five of the com- plainant's petition, after he has ascertained to what extent the company's schedules can be revised in a manner that is practicable. His ruling is to be subject, however, to the approval and adoption of the joint chairmen as arbitrators and is to be coverea by their award. The board confined its awards to the platform men. The demands of shop- men and miscellaneous employees of the company were referred back for special hearings. The other issues before the arbitra- tors for the most part related to de- tails of the working conditions. In all there were twenty-four issues submit- ted and on several of them the parties were in agreement already. These is- sues, however, were incorporated in the awards of June 26 at the request of the employees. The first four demands related to union recognition, or rather presup- posed recognition of the union by the company. On this the board said : The employees understood at the hearing, that the board would not grant them and the demands must be taken as having been abandoned by the employees. We rule, however, that under the rulings of this board, the company must do nothing to prevent or discourage its employees from becoming a member of a union and must in no way discriminate against an employee because he is a member of a union. These employees made no specific complaint in this regard, however, and so far as the evidence shows this company gives full right to its employees to join a union, and no charge or discrimination was made against the company in this regard. Demands of employees that men be selected for snowplow work on basis of seniority were denied by the board on the ground that "the present prac- tice of the company is satisfactory." The demand of the men for special pay for waiting time was denied be- cause "the present practice of the com- pany is fair and equitable in paying for their waiting time only at the reg- ular wage, except where overtime is in- volved." The demand of the men for addi- tional pay for instructing new men was not granted in full, but the board did order that all instructors should receive 5 cents an hour additional for actual platform time in such work. The demand that the company pay for the meals of crews when they are prevented from going to their homes at their regular meal time was granted. It is said this practice is substantially in operation now. The demand for stools for motormen and conductors was granted, the use of the stools, however, to be subject to regulation by the company. The demand of the men that free transportation be extended to em- ployees in civilian attire, as well as to those in uniform, was granted. The board thinks, however, that this prac- tice must be safeguarded from abuse and suggests that the officers of the company meet committee of employees and endeavor to agree upon the form of free transportation to be adopted. If this conference fails to agree, Mr. Ogburn, examiner for the board, is to make the decision as to the form. The demands of the m°rt. embodi^-d in Paragraph 15 of their complaint, for pay for certain kinds of extra work were denied because the matter was covered in the findings for increased pav made by the board July 31 last. Operators of one-man cars are awarded 5 cents an hour additional pay. The demands of the men relating to uniforms were granted, the board hold- ing that "the men should have a right to buy their uniforms in the open mar- ket provided they conform to the speci- fications of the company." The next demand related to bulletin boards at the carhouses and the right of the employees to post notices thereon. This issue was settled at the time the strike was called off, but the board was asked to interpret the agreement. On this point the board said: Our construction is, that the company, by giving the men the right to put their notice on the company's bulletin boards in the carhouses, has complied with the agree- ment and that the company has the option of saying whether the men may use their own bulletin boards or the company's. The awards are effective as of May 1, 1919, and continue until peace is for- mally announced by executive procla- mation. Should any difference arise relative to construction the secretary of the board is authorized to appoint an examiner, who shall hear such dif- ferences and who shall announce his decision, from which^an appeal may be taken to the arbitrators. The men originally demanded a nine- hour day with ten hours' pay. The National War Labor Board decided on other matters, but, as previously stated, referred this particular subject back to Mr. Ogburn for further investigation and report. In the meantime the men became dissatisfied with the decision and threatened to strike. They then demanded an eight-hour day with 65 cents an hour. Mr. Ogburn on July 2 passed upon the matter of hours and granted the original demand of the men for a nine-hour day with ten hours' pay. On the afternoon of July 2 the state conference board representing the employees met President McCarter and other officers of the company and both sides agreed to accept the findings of the War Labor Board. The company further agreed to enter into a civil contract binding both parties to the terms of the award for a period of two years. 38 Electric Railway Journal Vol. 54, No. 1 Cleveland Wages Discussed Men There Want Twelve Cents More an Hour — City Against Interfering Problems arising from the demands of the conductors and motormen of the Cleveland (Ohio) Railway for an in- crease of 12 cents an hour in wages were discussed at the regular meeting of the City Council of Cleveland, Ohio, on the evening of June 23. Members went on record against interfering in negotiations between the company and its employees. J. J. Stanley, president of the Cleve- land Railway, had made a proposal which involves a profit-sharing idea and this may be discussed at a public meeting which was set for the after- noon of July 2. Mr. Stanley proposed that the men be granted the increase asked and at the same time that the rate of dividends to stockholders be advanced from 6 per cent to 7 per cent. Retaining the present rate of fare, he suggested that if the receipts then failed to take care of the advance in wages and the increase in return to investors, both the wages of the men and the rate of return on the invest- ment be reduced, but not below the present figures. In this connection he advocated the removal of the minimum and maximum fare limits from the Tayler franchise. Council members, however, objected to this. They said they would take care of any future emergency just as on previous occasions. A request has been made of Coun- cil that operating allowances be in- creased from 20 to 23 cents a car-mile and that the maintenance allowance be raised from 5 cents a car-mile to an average of 9 cents annually. State Credit and a Public 3Ianager Calvin Coolidge, Governor of Massa- chusetts, on June 27, sent the follow- ing message to the Legislature: The situation in relation to the street railways of Massachusetts, as pointed out in the inaugural address, is one of great difficulty. Some of them are not earning enough money to meet their expenditures. This can have only one result if continued — tliat is, the suspension of operations. In many localities the operation of street railways is a public necessity. It would be a great public inconvenience if, on account of conditions which it is trusted may be temporary, street railways should cease to operate or if their operation should be greatly impaired. This is a condition which exists all over the nation and investigation has been undertaken by the federal authorities. It is hoped that it will he temporary. It is. however, very desirable that some emer- gency legislation should be provided which could be put into operation if the con- tingency arises. It is, therefore, recommended that pro- vision be made for the temporary operation of a street railway by a public manager, so that such street railway may be under the exclusive control of public officers and public agents, with authority to fix fares subject to revision by the Public Service Commission ; and that temporarily for the public convenience in order to operate street railways hereafter placed under such control, provision be made for extending the credit of the commonwealth and of the cities and towns in which such street rail- ways operate. Such management should be approved and supervised by the Public Service Com- mission, and public credit should be ex- tended only so far as is necessary to keep the roads in operation by taking cars of valid operating deficits, for a limited period in any event, and only so far as existing necessities require, without in any way impairing or restricting a further and different action in the future, or imposing in any event an undue burden upon the taxpayers. Pittsburgh Arbitration Completed Final Hearing Before the War Labor Board on Wages Held in Washington Final argument was heard before Chairman Basil M. Manly and Frederick Judson of the War Labor Board in Washington on June 25, on the demand of the platform employees of the Pitts- burgh (Pa.) Railways for a 12-cent in- crease in wages. Counsel for the receiver of the rail- way showed that increases in wages ranging from 65 to 95 per cent have been received by the Pittsburgh men since 1914. At the present scale a man working thirty days a month can earn $153, and in twenty-seven days he can make $125. It was represented by counsel that this constituted a very fa- vorable showing as compared with the returns from labor in skilled trades. In rebuttal counsel for the employees attacked the scale of 1914, reached by arbitration before Judge Joseph Buf- fington, of the United States court of Western Pennsylvania. The principal argument of counsel for the receivers was based upon in- ability of the company to pay. Mr. Alter for the company declared : During the first four months of the cur- rent year there was a deficit of $494,707 without taking into consideration interest on bonds, rentals and other items of fixed charge. The total deficit for the period was $1,. 549,849. If the wage increases now asked had been in effect during those four months the company would have lacked $81,698 of hav- ing enough to pay mere operating ex- penses and taxes. Pittsburgh's experience with fare in- creases has not been very encouraging, according to Mr. Alter. Neither the 52-cent fare nor the 5-7 cent area sys- tem brought revenues up as much as had been expected. The 51-cent fare, indeed, did not increase them at all. The proposal to institute a universal 7i-cent fare by tickets, with a 10-cent cash rate on Aug. 1 does not offer any hope of sufficient increment in revenues to provide for any such wage increase as the men want, either, Mr. Alter in- formed the board. He said further that "any present increase in wages can be accomplished only by abandonment of rehabilitation measures essential to safe operation of the lines." The finding of the War Labor Board will not constitute a final award in the case. Under the terms of the agreement which ended the four-day May strike in Pittsburgh, the finding will be subject to review by the United States District Court, under which re- ceivers are operating the Pittsburgh railways. If a decision favoring the men is negatived by the court, the em- ployees have the right to strike again. Engineering Department Bill Introduced to Abolish Department of Interior and Substitute Depart- ment of Public Works Far-reaching changes in the execu- tive machinery of the federal govern- ment are proposed in bills introduced in each house of Congress on June 25. The federal Department of the Interior will become the Department of Public Works, if legislation proposed and in- dorsed by the National Service Commit- tee of the Engineering Council is en- acted. The main idea is to assemble all engineering activities of the gov- ernment in one department. Such bu- reaus of the Interior Department as are non-engineering in character are to be placed under the jurisdiction of appropriate departments. Thus, the Patent Office is to be placed under the Department of Commerce, the Bureau of Pensions under the Treasury Depart- ment and the Bureau of Education under the Department of Labor. At the same time engineering bu- reaus from other departments are to be included in the Department of Public Works. Thus, this department is slated to absorb the Supervising Architect's Office of the Treasury Department, the Construction Division, River and Har- bor Improvements, Mississippi River Commission, and California Debris Commission of the War Department; the Bureau of Standards and the Coast and Geodetic Survey of the Department of Commerce, and the Bureau of Public Roads and the Forest Service of the Department of Agriculture. The bill provides that the Secretary of Public Works "shall by training and experience be qualified to administer the affairs of the department and to evaluate the technical principles and operations involved in the work there- of." The measure excepts from the foregoing provision the Cabinet officer who is at the head of the department at the time of the passage of the bill. It was introduced in the upper House by Senator Wesley L. Jones, of Wash- ington, and in the lower House by Rep- resentative Frank C. Reavis of Ne- braska. Ottawa Men Insist on Wage Increase The Ottawa (Ont.) Electric Street Railway and its employees who have been negotiating for some time past over the demand by the men for an in- crease in wages, have arrived at a dead- lock, and fears were expressed on both sides that a tie-up of the railway sys- tem was inevitable on July 1 when the present agreement expired, unless the only solution which they believe fits the situation is introduced by the mu- nicipality. The company through its superin- tendent. Major F. D. Burpee, explained in a lengthy statement that the situa- tion of the company financialhr was such that it was utterly impossible for the increases demanded by the men to be granted. July 5, 1919 Electric Railway Journal 39 The solution sought by both the em- ployees and the company was that not- withstanding the franchise agreement which the company has with the city, whereby it is pi'ohibited from charging a higher transportation charge for passengers than 5 cents straight, the city should agree to allow the railway to increase its fares, so as to take care of the increased expenditure it would be called upan to meet should the de- mands of its employees be complied with. Wage Case in East St. Louis Argued A hearing on the demands of the conductors and motormen on the elec- tric railways of East St. Louis, 111., and neighboring cities for an eight- hour day and for a wage increase amounting almost to 100 per cent was held at East St. Louis, 111., recently before Charlton D. Ogburn, examiner appointed by the War Labor Board. W. H. Sawyer, president of the East St. Louis & Suburban Railway, testi- fied that it was utterly impossible for the company to grant any increase in wages under present conditions. He declared that prices of the necessaries of life are now on the downward trend and it was his belief that the wage paid by the company was a "living wage." The car crews of East St. Louis now working under a sliding scale of 41 to 45 cents an hour, are asking 80 cents an hour. The employees of the intci'urban lines leading out of East tjt Lju.s, now receiving 47 cents an hour, are asking for 87i cents. Both demand an eight-hour day. The com- panies involved besides the East St. Louis & Suburban Company are the East St. Lcuis, Columbia & Waterloo Railway and the East St. Louis, Alton & Grani.e City Railway. Rapid Transit Report Presented for Cleveland A report on the proposed under- ground rapid transit road, prepared by R. M. Brinkeroff of Barclay Parsons & Clapp, New York, was placed before the Rapid Transit Commission of Cleve- land, Ohio, on July 2. It is based on the needs of a population estimated at 1,000,000 now, 1,500,000 within the next ten years and 2,000,000 within twenty years. Two main arteries, one east and the other west, are suggested. A system of subway loops is provided in the Public Square. For early construction a sub- way is suggested under Superior Ave- nue to East Twelfth Street to take care of the traffic on the Superior, St. Clair and Pain Avenue lines. Another sug- gestion is that a subway be built under On'avio Street to the Central market house to take care of traffic on the lines southeast and southwest. A digest of the report is being prepared for publication in the Electric Railway Journal. News Notes Berlin Takss Over Surface Lines. — The municipality of Greater Berlin has acquired the metropolitan surface lines for a consideration of $25,000,000. The shareholders were paid off in municipal bonds with a premium. Employees Reject Wage Proffer. — The striking employees of the Toronto (Ont.) Railway in mass meeting on June 27 voted 1521 to 11 against ac- cepting an offer of 48 cents an hour made by the Ontario Railway Board, which has taken over the line. The men demand 55 cents an hour. Shamokin Employees on Strike. — The employees of the Shamokin & Mount Carmel Transit Company, Shamokin, Pa., went on strike on June 14 for higher wages and shorter hours. The men have been receiving 38 cents an hour for an eleven-hour day. They ask 45 cents an hour for a nine-hour day and time and a half for overtime. The company offered 40 cents an hour for a ten-hour day. Union Chartered. — The Oklahoma Union Railway Employees' Association of Tulsa, Okla., has been granted a charter by Secretary of State Lyon. This is a labor union embracing em- ployees of the Oklahoma Union Rail- way, which operates an interurban line fi'om Tulsa to Keifer and the local sys- tems in Tulsa and Sapulpa. It was formed some time ago and its recogni- tion by the interurban company was forced by a strike. The association has no capital stock. Changes in Yale's Electrical Staff. — Prof. C. F. Scott, head of the electrical engineering department of Sheffield Scientific School at Yale University, has announced several appointments of assistant professors of electrical engi- neering. One of these is L. W. W. MoiTow, formerly director of the School of Engineering at the Univer- sity of Oklahoma. Another is that of G. F. Wittig, at one time with West- inghouse, Church, Kerr & Company, and later at the University of Alabama and the University of Pennsylvania. Another is H. M. Turner, for several years in the electrical engineering de- partment of the University of Minne- sota. Seattle Men Insistent. — The members of the Seattle local of the street rail- way men's union have voted to stand squarely back of their demands for increased wages, taking the position that the increase asked is not unrea- sonable from the standpoint of the present cost of living. Ot ler municipal employees have asked increases cf $60 a month above the maximum rates paid in 1915 on the theory that actual living costs have increased that much, and the railway men will co-operate with the other city employees to obtain ad- vances. A publicity committee has been ; i:)point£d to lay the facts before the puoiic, in an effort to obtain the co- operation of the patrons of the Mu- nicipal Railway. Arbitration Arranged in Davenport. — A strike of motormen and conductors of the Tri-City Railway, Davenport, Iowa, was averted when the company agreed to arbitrate differences with the men. The committee representing the men and officials of the company de- cided that arbitration should be under the Rock Island city franchise. This grant provides that all differences of wage and working conditions shall be submitted to a board of three composed of one member appointed by the com- pany and one by the men, with the third selected by the two previously appoint- ed. The company originally demanded that its ability to pay an increased wage be considered. The men are said to be willing to postpone arbitration if the company will agree to negotiate a wage increase over the company offer of 46, 48 and 50 cents an hour if a 7-cent fare is allowed by the Public Utilities Commission, and to arbitrate a reduction in wages if the 7-cent fare is not granted. Wage Contract Ordered Extended. — P'ederal Judge Martin J. Wade has ordered that the contract between the Des Moines (Iowa) City Railway and its employees be extended for another period of six months. Judge Wade's opinion was in answer to a petition filed by the receivers of the Des Moines City Railway. The contract governs work- ing conditions, wage scales and methods of their adjustments. One clause of the contract provides that differences on the wage question are to be submitted to a board of arbitration and for notice of contemplated or requested changes in wage scales to be served on either party thirty days previous to March 1, 1919. The employees have made the request for higher wages within the allotted time so that the next step in the controversy will probably be the appointment of the arbitration board. In the hearing before Judge Wade, Emil G. Schmidt, one of the receivers and the president of the Des Moines City Railway, testified that the company's books show a deficit of $23,522 for the first five months of 1919. Program of Meeting Illinois Electric Railways Association The Illinois Electric Railways Asso- ciation will hold its mid-summer meet- ing at the Rockford County Club, Rockford, 111., on July 16. The fore- noon will be devoted to several inter- esting papers. In the afternoon, golf, a trip to Camp Gi'ant, swimming, etc., v.'ill be provided for the entertainment of those attending. 40 Electric Railway Journal Vol. 54, No. 1 Financial and Corporate Operating Rates Up 5.34 Per Cent in March The Effect of Increased Wages and Prices for Materials Is Reflected in Detailed Accounts The operations of electric railways for the month of March as reflected in the tables compiled by the informa- tion bureau of the American Electric Railway Association indicate that throughout the country there has been little if any improvement during the month. Increases in operating ex- penses continue to outstrip increases in revenues and the net return is in con- sequence correspondingly diminished. For the country as a whole the decline is apparently a slower one than has here- tofore been registered and this fact affords the only possible consolation that may be derived from the other- wise depressing situation revealed by the returns shown in the accompany- ing tables. In Table I a comparison is made with the figures for March, 1918, of fifty-one companies, and in Table II the same figures are shown on a per car-mile basis. Referring to Table I it will be seen that the operating revenue in- creased 14.71 per cent, a healthy growth. This advance, however, is more than wiped out by an increase of 23.47 per cent in the expenses. The result is a net revenue from operations of 9.08 cents in 1919 as compared with 9.62 cents in 1918, a decrease of 5.61 per cent. This of course takes no ac- count of taxes or fixed charges, which have to come out of this net revenue. In 1919 taxes amounted to 2.32 cents and fixed charges to 6.81 cents per car- mile which when deducted from the net revenue of 9.08 cents, leaves a deficit from railway operations alone of 0.05 cents per car-mile as compared with a surplus in 1918 of 1.18 cents per car- mile. This would seem to indicate pretty definitely that in March, 1919, electric railway operation by itself simply did not pay its own way. How- ever, non-operating income and return from auxiliary operations amounted together to 1.95 cents per car-mile and with this help the industry managed to keep its nose above water with a net income of 1.90 cents per car-mile. In 1918 the net income was 2.48 cents per car-mile so that the 1919 figures indi- cate a decrease of 23.9 per cent dur- ing the year. The operating ratio was 75.23 per cent as compared with 69.89 per cent in 1918. As in the past the returns have been classified according to the fol- lowing geographic grouping: East- ern District — east of the Mississippi River and north of the Ohio River. Southern District — south of the Ohio River and east of the Mississippi River. Western District — west of the Missis- sippi River. Although the South shows actually the best return of the three — net income in March, 1919, of 2.87 cents per car- mile compared with 1.42 cents in the East and 1.90 cents in the West — rela- tively, it has recently been losing ground much more rapidly. Its net revenue from operations in March showed a de- crease from 1918 of 24.79 per cent as compared with a decrease of 6.07 per cent in the West and an actual gain of 1.85 per cent in the East. After deducting taxes and fixed charges and adding in miscellaneous revenues, the South shows a decrease of 61.39 per cent in its net income while the West which comes next in the amount of its falling off shows a decrease of 15.93 per cent and the East a decline of 4.05 per cent. To what extent weather conditions in 1918 affected the returns it is diflficult at this time to say. The operating ratio in the South jumped from 57.79 in March, 1918, to 71.80 in March, 1919, while in the East it increased from 74.97 to 77.58 and in the West from 67.47 to 73.63. Table III gives the operating ex- penses divided up among the several departments while in Table IV the ex- penses per car-mile of these depart- ments is shown. Sixty-four companies are represented and analysis of their expenses contributes to a better under- standing of the returns in Tables I and II. The increase in the cost of materials throughout the country is reflected strongly in the maintenance expenses. The rise in the cost of labor is re- flected better in the conducting trans- portation account. In 1918 this was 9.56 cents per car-mile and in 1919 it had risen to 11.71 cents per car-mile an increase of 22.48 per cent. This increase in the cost of labor and material while extending generally throughout the country is more marked in the South and West, or at any rate it appears so in the tables, probably because of the unfavorable weather in the East in 1918. The cost of mainte- nance of way and structures increased 56.0 per cent over 1918 in the South, rising from 1.75 cents to 2.73 cents per car-mile. In the East it rose from 3.11 cents to 3.67 cents per car-mile, an increase of 18.0 per cent, and in the West it jumped from 2.02 cents to 3.05 cents, an increase of 50.99 per cent. Maintenance of equipment costs in- creased 53.47 per cent in the South, 42.91 per cent in the West and 31.83 per cent in the East. The cost per car- mile of this account in March, 1919, was 2.87 cents in the South, 3.33 cents in the West and 4.39 cents in the East. The conducting transportation ac- count rose from 9.34 cents to 12.19 cents per car-mile in the South, an in- crease of 30.51 per cent. In the West the increase in this cost was 14.61 per cent and in the East it was 28.54 per cent, the amounts per car-mile in 1919 being 11.06 cents in the West and 12.25 cents in the East. The increase in the cost of power was 1.42 per cent in the East, 17.86 per cent in the West and 122.41 per cent in the South. Bad weather conditions in 1918 in the East which increased the unit cost at that time probably accounts for the small increase in that section of the country in 1919 and the method of taking care of power in accounting in the South, makes the figure for the in- crease in that section unreliable. In Tables V and VI the income state- ment for March, 1919, of 129 companies is shown, both the actual amounts and also the amounts per car mile. Table VII is a detailed statement of the operating expenses for March, 1919, of 152 companies, and in Table VIII the same statement is shown on a per car- mile basis. The most interesting of these is Table VIII in which the operating ex- penses per car-mile are given and divided among the main operating de- partments, way and structures, equip- ment, power, etc. TABLE I— INCOME STATEMENT FOR FIFTY-ONE ELECTRIC RAILWAYS FOR MARCH, 1919, COMPARED WITH MARCH, 1918 ■ United States . • East South . . West 1919 1918 Operating revenue $10,712,640 $9,393,281 Operating expenses 8,059,755 6,564,681 Net operating revenue 2,652,885 2,828,600 Netrevenuefrom auxiliary operations 120,238 Taxes 677,385 596,916 Operating income 2,095,738 2,231,684 Non-operating cncome 449,539 382,687 Grossincome 2,545,277 2,614,371 Deductions from grossincome 1.990,026 1,884,580 Netincome 555,051 729,791 Operating ratio 75 23 69 89 Cax-miksoperated 29,226,103 29,397,146 1919 1918 1919 1918 1919 1918 $4,796,405 $4,138,309 $965,507 $858,132 $4,950,728 $4,396,840 3,721,249 3,102,450 693,261 495,902 3,645,245 2,966,329 1,075,156 1,035,859 272,246 362,230 1,305,483 1.430,51 1 105,088 8,921 6,229 260,741 219,034 99,541 80,752 317,103 297,130 919,503 816,824 181,626 281,478 994,609 1,133,381 120,725 149,162 157,254 166,719 171,560 66,806 1,040,228 965,986 338,883 448,197 1,166,169 1,200,187 867,078 786,938 224,623 225,629 898,325 872,013 173,150 179,048 114,260 222,568 267,844 328,174 77.58 74.97 71.80 57.79 12,230,697 1 1,993,575 2,954,608 2,954,626 14,040,798 14,448,945 TABLE 11— INCOME STATEMENT IN CENTS PER CAR-MILE FOR FIFTY-ONE COMPANIES SHOWN IN TABLE I, FOR MARCH, 1919 COMPARED WITH MARCH, 1918 ■ United States . . East ■ South . . West ■ Per Cent Per Cent Per Cent Per Cent 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase Operating revenue 36.65 31.95 14.71 39.20 34.50 13.6 32.68 29.04 12.53 35.26 30.43 15.8/ Operating expenses 27.57 22.33 23.47 30.41 25.87 17.5 23.46 16.78 39.81 25.96 20.53 26.44 Net operating revenue 9.08 9.62 6.61 8.79 8.63 1.85 9.22 12.26 —24.79 9.30 '9.90 6.07 Netrevenuefrom auxiliary operations. 0.41 0.86 0.30 0.04 .... Taxes 2.32 2.03 14.29 2.13 1.83 16.39 3.37 2.73 23.44 2.26 2.06 9.70 Operating income 7.17 7.59 6.5S 7.52 6.80 10.59 5.15 9.53 i6.96 7.08 7.84 9.69 Non-operating income 1.54 1.30 18.46 0.99 1.24 SO. 16 5.32 5.64 5.68 1.22 0.46 166.94 Grossincome 8.71 8.89 2.02 8.51 8.04 5.85 10.47 15.17 30.99 8.30 8.30 Deductions from gross income 6.81 6.41 6.24 7.09 6.56 8.08 7.60 7.64 0.55 6.40 6.04 5.96 Netincome 1.90 2.48 Z3.S9 1.42 1.48 —i.05 2.87 7.53 61.89 1.90 2.26 16.9.3 Operating ratio 75.23 69.89 7.64 77.58 74.97 3.48 71.80 57.79 24.24 73.63 67.47 9. 12 Car-miles operated 29.226,103 29,397,146 0.68 12,230,697 1 1,993.575 1.98 2,954,608 2,954,626 14,040,798 14,448,945 2.82 NOTE — Figures in italic denote decrease. TABLE III— OPERATING EXPENSES OF *SIXTY-FOUR ELECTRIC RAILWAYS TOR MARCH, 1919, COMPARED WITH MARCH, 1918 . United States . East ■ . South . West . 1919 1918 1919 1918 1919 1918 1919 1918f Operating expenses >[$8,880,713 ^$7,193,519 =$4,230,223 "$3,503,424 $930,126 $664,834 $3,720,365 ''$3,025,261 Wayandstruetures 1,056,449 790,538 505,587 419,678 111,472 71,778 439,390 299,082 Equipment 1,202,422 870,918 604,449 450,431 1 17,714 76,110 480,259 344,377 Power 1,450,173 1,301,743 787,013 762,198 92,542 41,589 570,618 497,956 Conducting transportation 3,777,927 3,101,449 1,685,659 1,287,155 498,059 382,570 1,594,209 1,431,724 Traffic 38,549 29,870 19,307 12,589 . 2,721 2,641 16,521 14,640 General and miscellaneous 1,145,870 1,008,704 544,723 485,843 107,617 90,146 493,530 432,715 Transportation for investment — Cr 7,276 50 7,176 50 Car-miles operated 32,257,315 32,435,875 13,759,122 13,509,446 4,085,132 4,094,519 14,413,061 14,831,910 * NOTE — This table includes the expenses of the fifty-one companies shown in Tables I and II, and in addition thirteen other companies which are not included in Tables I and II, because of the fact thatthey do a power andlight business and do notseparatetheirrailway taxes and fixed chargesfrom the taxes and fixed charges of their ither business. ' Includes $2 16,499 undistributed depreciation. -Includes $90,347 undistributed depreciation. 'Includes $83,485 undistributed depreciation. "In- cludes $85,530 undistributed depreciation. £ Includes $133,014 undistributed depreciation. " Includes $4,817 undistributed depreciation. TABLE IV— OPERATING EXPENSES IN CENTS PER CAR-MILE OF THE SIXTY-FOUR ELECTRIC RAILWAYS APPEARING IN TABLE III, FOR MARCH, 1919, COMPARED WITH MARCH, 1918 . United States • East ■ . South . . West . Per Cent Per Cent Per Cent Per Cent 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase Operating expenses i 27.53 ' 22.18 24.12 ' 30.74 " 25.93 18.55 22.76 16.24 40.15 = 25.81 « 20.40 26.50 Way and structures 3.28 2.44 33.98 3.67 3.1 1 18.00 2.73 1.75 56.00 3.05 2.02 50.99 Equipment 3.73 2.68 39.17 4.39 3.33 31.83 2.87 1.87 53.47 3.33 2.33 42 91 Power 4.49 4.02 1 1.97 5.72 -5.64 1.42 '2.27 ' 1 . 02 122.54 3.96 3.36 17 86 Conducting transportation 1 1.71 9.56 22.48 12.25 9.53 28.54 '12.19 ' 9.34 30.51 11.06 9.65 14.61 Traffic 0.12 0.09 33.33 0.14 0.09 55.55 0.07 0.06 16.66 0.11 0.09 22 22 General and miscellaneous 3.55 3.11 14.15 3.96 3.60 8.33 2.63 2.20 19.55 3.43 2.92 17.46 Transp. for investment — Cr 0.02 0.05 Car-miles operated 32,257,315 32,435,875 0.55 13,759,122 13,509,446 1.85 4,085,132 4,094,519 0.S3 14,413,06114,831,910 S.8S ' Includes 0.67 cents per car-mile undistributed depreciation. - Includes 0.28 cents per car-mile undistributed depreciation. = Includes 0.60 cents per car- mile undistributed depreciation. " Includes 0.63 cents per car-mile undistributed depreciation. Includes 0.92 cents per car-mile undistributed depreciation. 'Includes 0.03 cents per ear-mile undistributed depreciation. 'A number of companies in the South include the cost of power under conducting transportation which accounts for the apparent disparity of these figures. TABLE V— INCOME STATEMENT OF *129 ELECTRIC RAILWAYS FOR MARCH, 1919 United States East South West Operating revenue $26,006,594 $17,415,970 $1,419,198 $7,171,426 Operating expenses 19,505,913 13,200,1 15 1,024,502 5,281,296 Net operating revenue 6,500,681 4,215,855 394,696 1,890, 13o Net revenue :Auxiliarv operations 586,660 280,336 142,488 163,836 Taxes 1,660,716 1,057,133 143,449 460,134 Operating income 5,426,625 3,439,058 393,735 1,593,832 Non-operating income 683,232 309,083 162,390 211,759 Grossincome 6,109,857 3,748,141 556,125 1,805,591 Deductions from gross income.. . 5,400,998 3,504,656 355,714 1,540,628 Netincome 708,859 243,485 200,41 1 264,963 Operating ratio 75.00 75.79 72.19 73.64 Car-miles operated 70,878,195 46,192,903 4,195,805 20,489,487 *|Includes the companies shown in Tables I to IV and others for which the 1918 figures are not available. STABLE VII— OPERATING EXPENSES OF * 152 ELECTRIC RAILWAYS MARCH. 1919 United States East South West Operating expenses '$20,576,266 '$13,782,866 $1,271,087 '$5,522,313 Way and structures 2,376,009 1,528,317 153,260 694,432 Equipment 2,721,559 1,810,903 159,956 750,700 Power 3,279,832 2,294,963 137,265 847,604 Conducting transporta- tion 9,073,51 1 6,060,039 652,949 2,360,523 Traflic 84,784 42,849 4,898 37,037 General and miscellane- ous 2,578,837 1.707,082 162,759 708,996 Transportation for in- vestment—Cr 74,507 1,528 12,979 Car-miles operated 75,131,551 48,068,190 5,368,142 21,695,219 NOTE — This table includes the expenses of the 129 companies shown in Tables V and VI and in addition 23 other companies which are not included in Tables V and VI because of the fact that they do a power and light business and do not separate their railway taxes and fixed charges from taxes and fixed charges of their other business. f > Includes $476,401 undistributed depreciation. 'Includes $340,401 undis- tributed depreciation. ' Includes $136,000 undistributed depreciation. TABLE VI— INCOME STATEMENT OF TABLE V, SHOWING THE AMOUNTS IN CENTS PER CAR-MILE United States East South West Operating revenue 36.67 37.70 33.82 35 00 Operating expenses 27.50 28.58 24.42 25.77 Net operating revenue 9.17 9.12 9.40 9.23 Net revenue: Auxiliary operations. . 0.83 0.61 3.39 0 80 Taxes 2.34 2.29 3.42 2.25 Operating income 7.66 7.44 9.37 7.78 Non-operating income 0.96 0.67 3.87 1.03 Grossincome 8.62 8.11 13.24 8.81 Deductions from gross income 7.62 7.58 8.48 7 52 Netincome 1.00 0.53 4.76 1.29 Operating ratio 75.00 75.79 72.19 732.4 Car-mile operated 70,878,195 46,192,903 4,195,805 20,489,487 TABLE VIII— OPERATING EXPENSES OF THE 152 COMPANIES APPEARING IN TABLE VII, SHOWING THE AMOUNTS IN CENTS PER CAR-MILE FOR MARCH. 1919 United States East South West Operating expenses ' 27.38 ' 28.67 23.68 '25.45 Way and structures 3.16 3.18 2.85 3.20 Equipment 3.62 3.77 2.98 3.46 Power 4.37 4.77 2.56 3.90 Conducting transportation 12.08 12.61 12.17 10.88 Traffic 0.11 0.09 0.09 0.17 General and miscellaneous 3.43 3.55 3.03 3.27 Transportation for investment — Cr COS ., 0.06 Car-miles operated 75,131,551 48,068.190 5,368.142 21.695.219 ' Includes 0.63 cents undistributed depreciation. ' Includes 0.70 cents un- distributed depreciation. -'Includes 0.63 cents undistributed depreciation 42 Electric Railway Journal Vol. 54, No. 1 Indianapolis Merger Conditionally Approved Company Disposed to Reject Changes in Plan Which Have Been Suggested by Public Service Commission The Indiana Public Service Commis- sion handed down an order on June 28, conditionally approving the merger of the Indianapolis Traction & Ter- minal Company and the Indianapolis Street Railway. After hearing the case as reported in the Electric Railway Journal of June 21, page 1243, the commission submitted a radically modi- fied plan of merger. This provided for placing the reduced Indianapolis Trac- tion & Terminal stock in the hands of five trustees, to be selected by the commission from fifteen citizens nom- inated by the company. Other re- quirements were so stringent that the committee of stockholders and officers of both companies declined to consider the proposal of the commission, which would have required the calling of an- other meeting of the stockholders. The commission was informed that the time was too short, and that the merger already approved by the majority of the stockholders should be approved by the commission or the company would not be in a position to provide necessary financing on July 1. The controlling part of the order is as follows: The merger agreement is hereby ap- proved svibject to the following conditions: 1. That the $2,500,000 of common stock of the consolidated company to be issued in lieu of $5,000,000 of common stock of the Indianapolis Traction «& Terminal Company be reduced to the par value of $1,000,000. 2. That all bonds accumulated or ac- cumulating in bond sinking funds shall be retired and cancelled. 3. All payments of interest on bonds in jinking fund shall be permanently dis- continued. 4. No direct payments hito bond sinking funds shall be made until Jan. 1. 1923, and until Jan. 1. I'.i23. the amounts of such direct payments which otherwise would be paid into said sinking funds, shall be utilized and expended for additions, ex- tensions, improvements, equipment or for other proper capital expenditures. If such direct payments are resumed in 1923, such payments into said funds and the disposi- tion thereof shall conform to the provisions set out in the Sixth paragraph of the agree- ment submitted to the commission ; that is to say, that said direct payments into said sinking funds shall be utilized in the pur- chase, retirement and cancellation of the bonds of the Indianapolis Street Railway and the Indianapolis Traction & Terminal Company in the proportions provided in the respective trust deeds or mortgages and upon such retirement and cancellation, bonds of the consolidated company to the par value amount of bonds so retired and cancelled, shall hnmediately be available for additions and extensions. Dividend Payments Fixed 5. The consolidated company shall as- sume the complete performance of the franchise obligation of each constituent company. 6. Until April 7. 1933. no dividends shall be paid on the $3,000,000 of preferred stock of the consolidated company issue in lieu of the $5,000,000 of common stock of the Indianapolis Street Railway and no dividends shall be paid on the $1,000,000 of the common stock of the consolidated company issued in lieu of tlie $5,000,000 of the common stock of the Indianapolis Traction & Terminal Company while or at any time tliere is a failure to comply with the francliise conditions or requirements of the franchise of either of the constituent companies. The Public Service Commis- sions of Indiana shall have the right and authority to determine when there is a failure to comply with or default of such franchise requirements. The commission will look to tlie city of Indianapolis for notice of sucli failure or default. 7. Whenever any dispute shall arise be- tween the consolidated company and the city of Indianapolis tlie matter shall be referred to the Public Service Commission and the consolidated company shall agree to abide by the decision of the commission with respect to sucli matters with the right to appeal, as provided by law. Maintenance and Depreciation Charges Fixed 8. Until the further order of the commis- sion. 21 per cent of the gross revenues of the consolidated company shall be set aside in a separate fund to be used for mainte- nance and depreciation. This amount, un- less otherwise ordered by the commission, shall be set aside in cash and shall be iiandled separately and with proper ac- counting. 9. There shall be no redemption or retire- ment of tlie preferred stock of the con- solidated company before April 7, 1933, or before the extended maturity date of any bonds, the time of payment of which is extended, 10. Nothing contained in Paragraph 6 of tlie agreement submitted or in any of its other provisions, shall either expressly or impliedly bind the commission in any matters of future security regulation. 11. The consolidated company shall apply to tlie commission for authorization and approval of all stock and bonds to be issued. Tlie commission in no wise guarantees tlie payment of any dividends on stocks, bonds or otlier securities and the consolida- tion and merger lierein conditionally ap- proved is a matter entirely independent of rates, without any obligation, express or implied, on the part of the commission, to provide the payment of any interest charges or dividends. The commission is in no wise bound to provide rates which will permit or enable dividends or interest charges to be paid on the stocks or bonds of the consolidated company. Tlie commission reserves to it- self the rigiit to fix rates, independent of and unaffected by the securities of tlie con- solidated company or by its approval of the merger and consolidation. 13. Nothing in tlie commission's approval of the merger or the consolidation agree- ment shall, in any manner, relieve the con- solidated company- from any of the lia- bilities, claims or obligations of or against either or both the Indianapolis Street Rail- way and the Indianapolis Traction & Ter- minal Company and the merger agreement is approved, subject to the assumption by the consolidated company of all the obliga- tions, liabiliti»s and claims of or against said Indianapolis Street Railway Company or the lidianapolis Traction & Terminal Company. Acceptance Necessary by Sept. 1 14. That on or before Sept. 1. 1919, the parties to tliis agreement shall file or cans? to be filed with the Public Service Com- mission, the written acceptances, approvals and consents of all parties whose accept- ances, approvals and consents are legally necessary to the conditions and stipulations Iiereinbefore set out. It is furtlier ordered, that the consoli- dated company shall, without unnecessary delay, proceed with the making of exten- sions and additions in accordance with the franchise requirements. pany's revenue during the month was $152,692, which was $12,310 more than for the corresponding month a year ago. Operating expenses also increased, but only $3,288, leaving an increase in the net revenue from operation, mak- ing no allowance for depreciation, of $9,071. The net revenue in May, 1919, was $44,980. Mr. Dicke in his letter accompanying the report says in part: With respect to the increase in net from operation, I want to say for your informa- tion that we have not as yet for this year increased our maintenance gangs for the purpose of doing the usual amount of maintenance work during the summer sea- son. Salt Lake Revenues Increase In the monthly statement filed by Manager H. F. Dicke of the Utah Light & Traction Company, Salt Lake City, Utah, with the Public Utilities Com- mission, it is shown that during May, 1919, 9314 more revenue passengers were carried by the company's cars than during the corresponding period of May 2 to June 1, inclusive, 1918. The total this year was 2,788,535 pas- sengers, of whom 43.6 per cent paid cash fare of 6 cents each. With the increased fares in force by the order of the commission, the corn- Indiana Assessments Announced Under the 1919 assessment of utili- ties announced by the State Board of Tax Commissioners of Indiana large increases have been made over the 1918 assessments. The assessments may not be final, as the various properties will have recourse to a rehearing at the second session of the tax commission to be held in July. The assessment of the constituent companies of the Indianapolis city rail- way system was increased from $7,- 992,719 to $16,425,010. The Indinap- olis Street Railway is increased from $5,739,903 to $11,905,080; the Indian- apolis Traction & Terminal Company from $2,222,190 to $4,448,250; and the Broad Ripple Traction Company, a part of the Indianapolis system, from $30,- 625 to $71,680. The assessment of the value of the railway lines in Indianapolis is nearly $500,000 more than the outside figure of the tentative valuation placed on the traction property by the Public Service Commission during the hearing last fall on the fare increase matter. The assessments for all interurban railways of Indiana for the year 1919 as compared with 1918 are as follows: 1919 1918 Union Traction $9,731,522 $3,257,860 Terre Haute, Indianapolis & Eastern 12,520,448 4,115,443 Indianapolis & Cincinnati 1,953,651 665,031 Interstate P. S 2,422,125 66,839 FortWavne& No. Indiana... . 5,639,075 1,899,722 Chicago, Lake Shore &S. Bend 3,163,305 856,145 Louisville & Northern Ry. & Lt. 552,645 184,370 Beech Grove Traction Co 139,750 30,625 Central Ind.Ltg Co 97,555 34,265 Chicago, South Bend & North- ern Indiana 3,163,305 995,640 Cincinnati, Lawrenceburg & Aurora 174,780 71,886 Evansville Rys 63,678 316,154 Evansville S. & N. Ry 648,590 266,195 Ft. W.& Decatur Tr 224,590 110,345 Ft. W. &Nw. Ry 821,935 277,937 Ft. Lick & W. B. St. Ry 26,880 9,240 Gary Connecting Ry 147,850 49,350 Gary & Hobart Tr 112,350 32,606 Gary & Sou. Tr 282,682 85,587 Gary St. Ry 1,124,330 304,880 Gary & Valparaiso Ry 281,032 52,580 Hammond, Whiting & E. Chi. 2,141,240 460,935 Indiana Rys. & Ltg. Co 1,41 1,510 495,950 Indiana Utilities Co 23,310 11,160 Indianapolis & Louisville 937,049 260,449 Indianapolis, N.C.& East.. . . 1,058,263 363,955 Lebanon-Thorntown 103.201 40,326 Ijouisville & Northern 552,645 184,370 Louisville & Southern 731,948 27,036 Madison Lt. & Ry 35,900 15,050 Marion & Bluffton 583,050 199,425 Muncie & Portland 573,795 196,230 New Albany St. R. R 332,610 119,585 OhioElec. Ry 778,518 259,221 Public Utilities 1,558,320 619,635 Southern Michigan 169,672 56,484 Vincennes Tr. Co 115,005 47.545 Washington St. Ry 30,500 11,925 Winona Interurban 1,394,685 460,988 Winona & Warsaw 80,320 27,870 July 5, 1919 Electric Railway Journal 43 Financial News Notes Authorize Three- Year Bond Issue. — The stockholders of the Nova Scotia Tramways & Power Company, Halifax, N. S., have authorized an issue of $2,- 000,000 of three-year 7 per cent gold bonds, of which $1,000,000 is to be issued presently for improvements sub- ject to the ruling of the Public Utilities Commission. Successor Company Organized. — The Pittsburgh, Butler & Harmony Con- solidated Railway & Traction Com- pany has been incorporated in Delaware with a capital of $6,500,000, presum- ably as the successor to the Pittsburgh, Harmony, Butler & New Castle Rail- way, change in control of which was noted in the Electric Railway Journal for June 28, page 1290. Abandonment Hearing Concluded. — The Massachusetts Northeastern Street Railway, Haverhill, Mass., has peti- tioned the New Hampshire Public Service Commissioners to close the branch of the railroad from Smithtown to Salisbury Junction, on the claim that travel there does not warrant continua- tion from a financial standpoint. Fol- lowing a hearing the commission re- served decision on 'the appeal of the company. Baltimore Company Again Defers Dividend. — The directors of the United Railways & Electric Company, Balti- more, Md., at their regular meeting on June 25 again deferred action on the quarterly dividend on the common stock. This is the second time this year that the board has postponed ac- tion. So far, only 1 per cent has been distributed to common shareholders this year. After the meeting no intimation was given as to when the board would again take up the dividend question. Receiver for Vincennes Company. — E. C. Cheobold, Vincennes, Ind., has been appointed receiver of the Vin- cennes (Ind.) Traction Company by Judge A. B. Anderson in the United States District Court. The receiver was asked in a complaint filed by the Mercantile Trust Company, St. Louis, Mo., against the Vincennes Traction Company and the City Trust Company, Vincennes. The allegations in the com- plaint were admitted by the defendants and consent was given for the appoint- ment of a receiver. Will Not Sell Collateral Now.— It was announced in Chicago, 111., on June 27 that not only would the Chicago Ele- vated Railways be forced to default on its $13,600,000 of 6 per cent notes, due on July 1, but it would be unable to pay even the interest. A. G. Hoyt, New York banker, representing the protec- tive committee formed on behalf of the noteholders, said: "The noteholders have a first lien on the collateral securi- ties, but they do not propose to fore- close immediately, fearing to harm still further the elevated companies' credit. We shall make a general survey of the situation and hope for a fair return for the service the properties render." Brooklyn Interest Payment Deferred. — The directors of the Brooklyn, Queens County & Suburban Railroad, the Nas- sau Electric Railroad, and the Coney Island & Brooklyn Railroad, all includ- ed in the system of the Brooklyn (N. Y.) Rapid Transit Company, decided to defer, temporarily, at least, payment of the interest due on July 1 on the bonds of those companies. The amount in- volved is about $450,000. The mort- gage securing these bonds provides varying periods of grace before default can be declared, and the directors hope that before these periods expire condi- tions will permit the payment of the interest. It was announced that the rental by the Brooklyn Heights Rail- road to the Brooklyn City Railroad, due on July 1, would be paid. Abandonment Petition Denied. — The Indiana Public Service Commission has dismissed the petition of the Central Indiana Lighting Company, Columbus, Ind., for authority to abandon service on its Maple Grove line. The petition to discontinue the line was made on the assertion that the building of the Nen- trup road would result in such loss to the company that it could not afford to maintain that branch of its service. The State tax board later denied authority to build the Nentrup road. The" com- pany thereupon decided to continue the Maple Grove line. Those who favor the road being built are not preparing to make a test case to determine the con- stitutionality of the tax law, under which the ruling was made. Notice of Sale of Collateral.— The Equitable Trust Company, New York, N. Y., as ti'ustee for the issue of five- year 5 per cent convertible gold bonds of the Eastern Power & Light Corpora- tion, New York, N. Y., dated March 1, 1913, has given notice that default hav- ing been made in the payment of the principal of these bonds and in the pay- ment of certain interest due on them, it will sell at public auction in New York on July 15 the collateral pledged as se- curity for these bonds. Included in this collateral are 12,482 shares of the com- mon stock of the West Virginia Trac- tion & Electric Company, 26,000 shares of preferred stock of the Reading Tran- sit & Light Company, and 73,000 shares of the common stock of the Reading Transit & Light Company. Dallas Results for May. — Earnings of the Dallas (Tex.) Railway for the twenty months of operation under the service-at-cost franchise amounted to but slightly more than 4 per cent of the agreed property valuation, as against a permitted return of 7 per cent. The deficit in the permitted return for the period is $369,241. The gross earnings for May were $194,379 (not including interurban terminal receipts). This represents an increase of about 48 per cent in comparison with last year. The railway operating expenses were $165,- 178, an increase of about 40 per cent over last year. The net earnings from railway operations were $29,200, and from interurban terminal operations $4,659, making the total net earnings $33,860. This amount is equivalent to a rate of return of 4.96 per cent per annum on the property value. Bond Extensions Approved. — The In- diana Public Service Commission, in orders issued on June 13 extending bond issues of the Union Traction Com- pany of Indiana, asserted its jurisdic- tion in this field for the first time. Members of the commission said that the body had never before acted formal- ly on utility bond extensions, reserving the right merely to pass on new issues. The commission approved the exten- sion for three years of $4,623,000, par value, 5 per cent bonds of the Union Traction Company, which expired on July 1. The interest rate is to be in- creased to 6 per cent and the federal tax on the interest coupons up to 2 per cent is to be paid by the company. The Union Traction Company was also au- thorized to extend for three years the outstanding 6 per cent bonds of the Indianapolis, Newcastle & Eastern Traction Company, amounting to $1,- 200,000, par value. These bonds also expired on June 1. A five-year exten- sion of the Marion City Railway bonds of the Union Traction Company was approved. The par value of these 6 per cent bonds is $328,000. They expired on May 1. OfiFering on Sioux City Service Bonds. — Halsey, Stuart & Company, Chicago, 111., and New York, N. Y., are offering for subscription at 89 and interest, yielding 6.75 per cent, $880,000 of Sioux City (la.) Service Company first and refunding mortgage sinking fund 5 per cent gold bonds dated Jan. 1, 1910, and due Jan. 1, 1928. The bonds are se- cured by an absolute first mortgage on the electric light, power and steam heat distribution systems and the electric generating and steam heating plant of the company, and, upon the retirement of $750,000 of first mortgage 5 per cent bonds of the Sioux City Traction Com- pany, due on July 1, 1919, will also be secured by an absolute first mortgage upon the entire electric railway prop- erty of the company. The present issue of refunding bonds will provide for the retirement of the electric rail- way bonds just mentioned. The mort- gage under which the bonds are issued creates a sinking fund obligating the company to deposit with the trustees sums which will aggregate $1,200,000 at the maturity of the bonds, at least half of which must be used in retiring first and refunding bonds and the bal- ance for permanent extensions and im- provements. 44 Electric Railway Journal Vol. 54, No. 1 Traffic and Transportation Girardville Case Different Increase to Eight-Cent Fare Allowed to Road in Mining District with Few Short Riders The Public Service Commission of Pennsylvania has dismissed complaints as to increased rates for service on the lines of the Schuylkill Railway, Girard- ville, Pa., due to the fact that the in- <;rease was necessary to meet increased operating expenses. In its ruling, re- ferred to very briefly in the Electric Railway Journal for May 10, page, 939, the commission said that as an emergency measure and for the purpose of giving the company what appeared to be the necessary relief it would grant the application for an 8-cent fare, but would refuse that part of the application which provided for thir- teen tickets for $1 and would order the company to sell seven tickets for 50 cents on cne day's notice until June 1, 1920. At that time the company is to report to the commission the result of the experiment. The complaint of the Borough of Mahonoy as to the service rendered will be disposed of by the commission in a separate report. The commission says that peculiar conditions surrounding the operation of the railway place it in a class by it- self. It is pointed out by the commis- sion that the line is constructed in a mountainous country, in some places over mines, and that the wear and tear on the cars and the condition of the surface of the line over which the right- of-way runs entails more expense in keeping the cars in order and maintain- ing the roadbed than is usual. The company has no large cities from which to draw its patrons, and, while the road connects comparatively populous com- munities, some of its divisions traverse regions that aVe sparsely settled. The road has very few short riders to de- pend upon. For these reasons the com- mission distinguished this company from most of the other companies oper- ating in the State. third-mile zones so that passengers get- ting on in the middle of a zone would ride to the middle of the next zone without being compelled to pay two zone fares. He contended that this would be fairer to the short distance rider and claimed that it would not complicate the fare collection system, but simply required the conductor to change the zone indicator oftener. It was Mr. Whitten's opinion that the plan suggested by the Public Service Railway for fixed one-mile zones would make the loading very uneven, as pas- sengers would be inclined to walk to zone points. This would slow down car movement and would have a tendency to increase traffic congestion. He said tbat the prime function of the electric railway was to sei-ve the needs of the comparatively short distance rider. The steam roads and rapid transit lines could if necessary take more of the longer hauls. The direct examination of Mr. Whitten was concluded late on June 26. The hearing was then ad- journed until July 1. Further Testimony by Municipalities Robert H. Whitten, formerly with the Public Service Commission for the First District of New York, utility ex- pert and technical advisor to the Cleve- land City Plan Commission, testified further at the hearing in Newark on June 26 before the Board of Public Utility Commissioners of New Jersey in regard to the plan submitted by the Public Service Railway for installing zone fares. Mr. Whitten, who appeared for the municipalities, advocated the division of the proposed one-mile zones into one- Ten-Cent Fares for Bay State The public trustees of the Eastern Massachusetts Street Railway, Boston, Mass., voted to withdraw on July 1 the 7-cent tickets and tokens from the Bay State system. It was an- nounced that on and after that date the initial fare north and south of Boston would be 10 cents, as it has been since Jan. 8 for a single cash fare. The 7-cent tickets and tokens will be redeemed at 7 cents each. The public trustees took possession of the property on June 1. An estimate of the earnings and expenses for the month indicates a deficit of approxi- mately $300,000. Nothing was earned toward interest charges or the princi- pal of the State guaranteed bonds. Steps have been taken by the public trustees substantially to reduce the management expenses throughout the system. Notwithstanding these eco- nomies, neither an 8-cent nor a 9-cent fare would produce enough revenue to meet the cost of service, as provided by law, or even the interest charges, which must be met if the company is to remain solvent. As soon as the cost of service can be determined accurately in each of the twelve districts under the home rule plan of operation and accounting, which also goes into effect July 1, the fares in these districts will be changed accordingly. It is the intention of the public trustees to issue at frequent intervals statements showing the receipts and expenses of each district. Fares Compromised Residents Along Monongahela Valley Traction Line and Company Settle Dispute in Conference A compromise agreement has been reached between the Monongahela Valley Traction Company, Fairmont, W. Va., and the special committee ap- pointed at a recent mass meeting to represent the several hundred residents and patrons of the company between Parkersburg and Williamstown who protested against the application be- fore the Public Service Commission for a 7-cent flat rate. Protests Withdrawn This compromise in the form of an agreed order has been sent to the com- mission and will be filed by this body, the protest of the residents being with- drawn and the company withdrawing application for its requests not in- cluded in the compromise agreement. The fare from the limits of Williams- town, W. Va., over the bridge to Ma- rietta, Ohio, is fixed by the compromise agreement at 5 cents, as at the present time. There are to be four zones be- tween Parkersburg and Williamstown as at present, the zone limits to be the same with one exception. The cash fare per zone will be the same as that which the Public Service Commission determines should be al- lowed for the city of Parkersburg, but in no case is it to exceed 7 cents. In other words, if Parkersburg has a 6- cent rate the interurban rate will be 6 cents. Coupon books of fifty or 100 tickets, good on both the interurban and city lines, are to be sold by the company at i cent less per ticket than the cash fare charged. Tickets without a time limit are to be sold for transportation between Parkersburg and Greenmont at the same rate as the cash fare charged in the city as fixed by the Pub- lic Service Commission, but in no case for more than 7 cents. School tickets between Parkersburg and Greenmont and between Williamstown and Central are to be sold for 3i cents. School tickets are good for any school child any day in the school year from 7 a.m. to 6 p.m. Rates Increase Slightly The fare rates as agreed in the com- promise are to take effect when any new rate allowed by the Public Service Commission in the city of Parkersburg goes into effect. The compromise rates mean that it will cost 6 cents more than formerly to go to Williamstown or Marietta if one travels on a book of tickets and if the 7-cent fare should be granted. On the other hand, the fare for school children is decreased from 5 cents to 3i cents so that residents on the inter- urban might actually save money under some conditions. The lines of the Monongahela Valley Traction Company connect Fairmont with Mannington. In extent they cover more than 110 miles of road. July 5, 1919 Electric Railway Journal 45 Ten-Cent Fare Announced for Boston The State Public Control Act Would Seem to Leave No Other Alternative, Trustees Say The trustees of the Boston (Mass.) Elevated Railway, to meet the deficit which has been created by reason of the added cost of service, have an- nounced that they will establish a 10- cent fare on July 10. While the legal title to the property is vested in the stockholders, the complete control of the Boston Elevated Railway has passed to public trustees. Stockhold- ers have no voice in the management and no control over service, receipts or expenditures. The trustees serve no private interest. Public Trustees at Work a Year When the railway was turned over to the trustees on July 1, 1918, the deficit for the preceding six months of private management, though no dividends had been paid and little attempt made to maintain the property, was $570,000. In the first month of public control, namely, in July, during which the 5- cent fare was continued, the deficit, augmented by the burdens of dividend rental maintenance charges, increased cost of supplies and materials, wage in- crease and rental of the Dorchester Tunnel, was $700,000. The trustees in- troduced a 7-cent fare. That fare failed to meet the cost of service by about $600,000 a month. An 8-cent fare was then established. That rate has been in force since Dec. 1, 1918. The 8-cent fare has also failed to meet the cost of service, the net operating cost for six months to May 31, 1919, having been $1,519,974 in excess of the receipts. The statute under which the experi- ment in public control was begun pro- vides that at the end of the year which closed on June 30 accumulated deficits should be met by a payment from the State Treasury, the amount so paid to be assessed upon the cities and towns in which the railway is located. Despite the general notion that this payment of deficits is a contribution by tax pay- ers to car riders, the statute makes it a loan to be repaid to these communities when and as fast as receipts exceed the cost of service. The car rider contin- ues to carry the entire burden of the service. Nine-Cent Fare Unwise Under the statute as quoted, the trustees were required to advance the fare. A study of receipts and expendi- tures convinced the tnistees that it would be unwise if not unlawful to ex- periment with a 9-cent fare. The aver- age cost of carrying a passenger under existing conditions, without considera- tion of the obligation to repay deficits or the outcome of the pending arbitra- tion over a further advance in wages, exceeds 9 cents. There was also to be considered the uncertainty of the effect of the higher fare upon net revenue, owing to loss of passengers. Under the 8-cent fare there was in December a loss of nearly 15 per cent in travel. From natural increase in business and from returning patronage that per- centage has gradually diminished until in May the loss was reduced to 9 per cent. The trustees point out that there are certain items in the cost of operation that have special interest. For in- stance, $2,004,000 is annually reserved for depreciation. For the eleven months ended May 31, 1919, for which com- plete figures of operating cost are available, the charge amounted to $1,- 837,000. This reserve is based upon in- dependent expert opinion as to what should be set aside yearly in order to provide for renewals and replacement as necessity arises. Applied to the in- dividual fare since Dec. 1, 1918, the in- creased allowance for depreciation amounts to 0.497 cent per passenger. In the eleven months $1,243,222 has been expended in rental dividends to stockholders. These annually aggre- gate $1,403,970 as the fixed return upon their investment. This applied to in- , dividual fare amounts to 0.416 cent per passenger during the past six months. The sum of $1,365,636 has been paid to the city of Boston in sub- way rentals that now represent an an- nual charge of $1,491,560, the amount having been increased this year by $473,000 upon the opening of the Dor- chester tunnel. These rentals, in the opinion of the trustees, are unjust to the car rider. The additional amount assumed during the period of the 8- cent fare as applied to the individual fare has cost 0.183 cent per passen- ger. A bill was introduced in the Leg- islature to relieve the riders from this burden during public control of the railway, but it failed of enactment. More than $12,272,000 has been spent during the eleven months for wages. This constitutes 45 per cent of the total of fixed charges and operating ex- penses. The total wage increase for the period was $3,996,883, of which $2,- 750,000 was due to the award of the War Labor Board, the remainder due to the increase in going rates of craft organizations and to additional serv- ice and higher standard of maintenance. The increase in wages as applied to the individual fare amounted to 1.751 cents per passenger in the six months period ending May 31. Under present condi- tions the trustees declined to grant the recent demand of employees for still higher wages. In consequence that de- mand is now under consideration by the War Labor Board before which final arguments were made on June 25. The sum of $2,312,728 has been ex- pended for maintenance and repairs of track and repaving of streets, for no part of which any provision is made in the reserve for depreciation. Increased cost from rising prices of supplies and materials has been felt most in the matter of coal, which, during the period named, has advanced in price to such an extent as to make an additional out- lay of $405,000. When applied to the individual fare this amounted to 0.126 cent per passenger during the six months ending May 31. In announcing the 10-cent fare the trustees after reviewing affairs of the year, said: Public interest in the service is as Iteen as it is in the fare. To imagine that a new management, hampered by the de- preciable character of the railway, the un- precedented war conditions, and the lack of capital and income, could promptly bring the impaired service to a proper standing, gage the cost and fix a fare commensur- ate and reasonably cheap, is to imagine what commonsense forbids. Realizing what their task meant, the trustees laid out a program which will cover a term of five years. A substantial beginning has been made toward the consummation of that program bringing with it new cars, new track, better trains in subways, larger ac- commodations on surface lines, cleanliness and ventilation of cars. What of the future? "Without being un- duly optimistic the trustees believe that the cost of the service measured by fares, is reaching its highest level ; that gradual improvement in service with gradual re- duction in fares is to be expected. In brief, the trustees are confident that the goal which they have had in view — a, service of high standard at lowest possible cost — is not unattainable. The time within which this goal can be reached will depend largely upon the promptness with which the deficit of the past year is made good and upon the relief that the L-egislature may give by just and wise legislation. Chapter 159, special acts of 1918, inaugurated the experiment with public control. Private management of the Boston Elevated Railway under a char- ter permitting not over a 5-cent fare under a public policy that imposed upon it subway rentals and street im- provements, and with rising cost of supplies and materials to add the fin- ishing touch, had resulted in failure. Three courses were open to the Leg- islature. It could let the property go to ruin, regardless of interrupted serv- ice and wasteful cost; it could embark upon government ownership and con- trol, or it could try out government con- trol with private ownership. The last plan was adopted. The property in ef- fect was leased by the stockholders to the State for ten years at a fixed rental paid in the form of interest on out- standing bonds and dividends on out- standing stock. The dividend for the first two years was fixed at 5 per cent, for the next two years at 5J per cent, and thereafter at 6 per cent on par value of shares. The capital stock on which these dividends are paid com- prises common stock amounting at par to $23,879,400 and preferred stock amounting at par to $3,000,000, an ag- gregate of $26,879,400, which, with premiums amounting to $2,707,000, makes a total investment of $29,586,- 828. The real dividends therefore are for the first two years 4.74 per cent, for the next two years 5.15 per cent, and thereafter 5.55 per cent on actual cash investment. When the trustees took over the rail- 46 Electric Railway Journal Vol. 54, No. 1 way on July 1, 1918, they found a large number of cars totally unfit for use, much of the remaining rolling stock of obsolete type, unclean, and unpainted, many miles of track badly worn and some unsafe, power plant in part out of date, and repair shops inadequate. The service was approaching the point of collapse. The trustees faced an impera- tive need of new capital and an even more imperative need of larger rev- enue. For capital $2,000,000 was avail- able from the proceeds of the preferred stock authorized in the act establish- ing public control. This was immedi- ately applied toward the purchase of 250 new cars. Fifty center-entrance trailers have been received. The deliv- ery of the remaining 200 cars, delayed by war conditions, is assured within the next four months. No more capital stock can be issued because by law it must be issued at par and the market price has been con- tinuously below par. No more bonds can be lawfully issued because the bonds outstanding equal the outstand- ing stock and premiums. There was one soui'ce of additional capital. This was the Cambridge subway. The com- pany had been allowed to build and own it as an exception to the well-settled and sound policy that foi-bids private ownership of public highways. Every other subway in Boston has been built and owned by the public. The trustees submitted to the Leg- islature a bill to authorize the purchase of this subway by the State as agent for the communities which the subway serves. The price named was less than actual cost and far below cost of re- placement. The bill required an imme- diate lease of the subway to the com- pany at a rental sufficient to meet the interest on the State loan and to pro- vide a sinking fund from which to pay eventually the entire purchase price of the subway. This bill was passed by the Senate, but was rejected by the House of Representatives. This was peculiarly unfortunate for the reason that while the proceeds of the subway could only be invested in permanent improvements, such investment would mean large operating economies. The statute establishing public control pro- vided that "if on the last day of June, 1919," it appears that "during the pre- ceding three months the income has been less than the cost of the service," the trustees shall within one month thereafter put into effect "a higher grade of fare." In consequence the 10- cent fare has been announced as best suited under existing conditions. Receiver Would Abolish Transfers Would Charge Three Cents at Ninety-nine Intersection Points Where Transfers Are Now Issued Free Job E. Hedges, as i-eceiver of the New York (N. Y.) Railways, has petitioned the Public Service Commission for the First District for permission to abol- ish ninety-nine free transfer points on the system under his management, and to establish a charge of 3 cents for transfers made at such points. Free transfers are now given at 113 points on the lines of the New York Railways system. Fourteen such free transfer points will be left if the commission grants the company the relief desired. Those remaining are transfers which are required by the conditions of mu- nicipal consents and franchises. The re- mainder were established either by gen- eral provisions of the public service commissions law or by specific orders of the commission. The petition of Receiver Hedges al- leges that the earnings of the New York Railways system show an emergency which is likely to disintegi'ate the prop- erty entirely unless some relief is af- forded at once. The charge for trans- fers made at the ninety-nine points involved in the petition, according to the application, would produce a reve- nue approximating $900,000. It is stated in the petition that the relief thus afforded would only be partially what the company needs to meet its operating expenses, interest charges, etc. It is also alleged that the average rate of fare actually received by the company for each individual line is only a little more than 3 cents. At the hearing on June 30 Henry L. Stimson, counsel for Mr. Hedges, the receiver, led the argument for the ap- plication, assisted by James L. Quack- enbush, counsel for the New York Rail- ways. Corporation Counsel Burr, ap- pearing with E. J. Kohler for the city, objected to the taking of any testi- mony until an up-to-date appraisal of the property could be made. As Judge Mayer, in the Federal Court, has fixed July 8 as the time when he will decide whether the Eighth Avenue and the Sixth Avenue lines shall be turned back to their original owners because the New York Railways cannot pay the rental charges. Public Service Commissioner Nixon announced that he wanted the question of whether transfers should be abolished settled be- fore that date. Evidence given by F. T. Wood, assist- ant to Frank Hedley, vice-president and general manager of the company, was to the effect that the abolishment of free transfers and the charging of 3 cents for them would bring an additional rev- enue to the road of $853,981 a year. It was stated that rentals now due and unpaid to subsidiary lines amount to $667,510. If Judge Mayer does not get assurance by July 8 that the rentals can be paid, it is believed he will sepa- rate the Eighth and the Ninth Avenue lines from the consolidated system. The earnings for the system up to March 31 were $50,000 short of paying the in- terest on the bonds, not to say any- thing of the rentals. This interest was due on July 1 and will have to be de- faulted, Mr. Stimson said. It was a desperate situation, Mr. Stimson urged, and he declared that im- mediate relief was required if the sys- tem was to continue service. Under the so-called Quimby or Rochester de- cision of the Court of Appeals, four- teen of the 113 transfer points seemed to be without the jurisdiction of Com- missioner Nixon, although Mr. Stim- son was not sure that the law might be construed to take those in as well. Corporation Counsel Burr said that the city was agreed that there would have to be a rock-bottom basis for a re- adjustment, but said this could not be arrived at until the city had had the opportunity to look over the books and a new valuation of the property had been made. Toledo Fares Increased The Toledo Railways & Light Com- pany, Toledo, Ohio, has increased the rate of fare to 6 cents, with 2 cents for transfers. Under a decree of the United States Courts, the company has the right under present conditions to fix the rate of fare under which it oper- ates, its increase from the old franchise rate to 5 cents having been approved. This being true, it has the right to make the further increase that is nec- essary to pay the additional wages just granted to the men by the War Labor Board. A resolution was introduced in the City Council on June 25 to oust the company from the use of the streets, as it has been operating without a fran- chise since 1914. Should this resolu- tion prevail, it is said that further ac- tion will be taken in the United States District Court. More than 2000 employees of the To- ledo Shipbuilding Company refused to submit to the increased fare on the evening of June 25, and after an alter- cation, two cars were ditched, and sev- eral others were stoned., One of the cars took fire and the service of the fire department was necessary to extin- guish the blaze. St. Louis Fare Hearing Postponed The hearing on the United Railways fare case scheduled for June 24 at St. Louis, Mo., was indefinitely postponed by the Public Sei'vice Commission of Missouri. Coincident with the announce- ment of this postponement City Coun- selor Daues of St. Louis issued a state- ment saying that the city will wait until Oct. 31 before beginning an active fight for reinstituting the 5-cent fare at St. Louis. Mr. Daues said that the city was in favor of giving Rolla Wells, re- ceiver appointed by the United States District Court, a chance to see whether the United Railways could be operated profitably under less than a 6-cent fare. July 5, 1919 Electric Railway Journal 47 Transportation News Notes Interurban Will Install One-Man Cars. — The New Jersey & Pennsylvania Traction Company, Trenton, N. J., an- nounces that it will shortly install cars of the one-man type on some of its divi- sions. Increase in Fare in Quincy. — The Public Utilities Commission of Illinois has issued an order increasing the fare of the Quincy (111.) Railway from 5 cents to 7 cents. Four tickets will be sold for 25 cents. One-Man Cars for Galesburg. — The Public Utilities Commission of Illinois has issued an order authorizing the Galesburg Railway, Lighting & Power Company, Galesburg, 111., to operate one-man cars in that city. Missouri Interurban Wants Increase. — The Southwest Missouri Railroad, Webb City, Mo., has applied to the Public Service Commission of Missouri for permission to increase passenger rates between Webb City and Carthage. Chicago Railways Rate Hearing Sept. 2. — The hearing on the appeal of the Chicago (111.) Surface Lines in the 7- cent fare case, from the denying order of the Public Utilities Commission of Illinois, has been set for Sept. 2 in San- gamon County Circuit Court. Increased Fare at Youngstown. — It was announced that fares on the Mu- nicipal Railway at Youngstown, Ohio, controlled by the Mahoning & Shenan- go Railway & Light Company, would be increased from 5 cents to 6 cents on July 1. This will be done under the new service-at-cost plan adopted some time ago. Wants Fare Increase Continued. — The Aurora, Elgin & Chicago Railroad recently filed a petition with the Public Utilities Commission of Illinois asking for a continuation of the order which granted the company an increase in fare from 5 cents to 6 cents on the city lines of Elgin and Aurora. The orig- inal order expired on July 1, 1919. A Courtesy to the Soldiers. — The Quincy (111.) Railway, included in the system of the Illinois Traction Com- pany, considered all men in the uni- forms of United States soldiers and sailors as the guests of the company during Quincy's big welcoming demon- stration. Conductors of the company were notified not to collect fares from the men in uniform. Fare Increase Again Refused at Warren. — On June 11 the City Council of Warren, Ohio, rejected the ordi- nance granting the Mahoning & She- nango Railway & Light Company a re- newal of its franchise for twenty-five years and an increased rate of fare. This ordinance has been drafted four times, passed twice by Council and vetoed both times by Mayor Parks. One-Man Cars Authorized. — The Public Service Commission of Massa- chusetts on June 30 approved the pur- chase and operation by the Berkshire Street Railway, Pittsfield, of seventeen one-man safety cars. The commission has also approved the construction and operation by the Milford, Attleboro & Woonsocket Street Railway, Milford, of two safety cars operated by one man. I. T. S. to Run Its Own Express Business. — The Illinois Traction Sys- tem, Peoria, 111., resumed express busi- ness over its lines on June 29. The Adams Express Company operated over the lines of the Illinois Traction System until the express companies were con- solidated into the American Railway Express Company. The Illinois Trac- tion System now plans to operate the express business and to extend the scope of the work. Memphis Fares Upheld. — The Su- preme Court at Nashville, Tenn., on June 28 upheld the legislative act cre- ating the Public Utilities Commission and the 6-cent fare that commission authorized for the Memphis Street Rail- way. The 6-cent fare in Memphis is already in effect and seems certain to remain in full force until an appraisal is made and a permanent decision ren- dered by the Public Utilities Commis- sion. The new fares seem to be work- ing well. Wants Both Passenger and Freight Advance. — The Joplin & Pittsburg Railway, Pittsburg, Kan., has applied to the Public Service Commission of Missouri for an increase in both pas- senger and freight rates. The present appeal of the company is for an ad- vance in passenger rates in Joplin and in freight rates between Joplin and Pittsburg. Some time ago the com- pany was authorized to increase pas- senger rates between the city limits of Joplin and the Missouri-Kansas state line. One-Man Cars for South Bend. — One- man cars may be introduced into South Bend., Ind., as a result of a visit made to Gary, Ind., by Mayor Carson, City Attorney Slick and R. R. Smith, super- intendent of the Chicago, South Bend & Northern Indiana Traction Company. The Mayor and the city attorney were favorably impressed with their visit to Gary and it is thought that a plan will soon be worked out by which one-man cars will be placed on the streets of Scuth Bend. The safety cars in Gary were described and illustrated in an article, "Safety Cars in Gary Make Jitneys Unprofitable," in this paper for May 17, page 967. Defeat of Fare Referendum Urged. — On June 19 petitions were presented to the North Side Impi'ovement Associa- tion containing the names of 500 resi- dents of the North Side, Columbus, Ohio, urging defeat of the proposed referendum on the ordinance giving the Columbus Railway, Power & Light Company an increased rate of fare. The directors approved the petitions, which urged the association to go on record against the proposed referendum. They voted to submit the petitions to the membership for consideration. Smoking Permitted on Elevated Cars. — The Chicago City Council believes smoking ought to be allowed on the ele- vated trains, as it was a year ago, when the influenza epidemic caused the health department to issue an edict against it. By a vote of forty-eight yeas to eleven nays the Council on June 23 adopted resolutions directing the health department to set aside the order. The elevated system heads can restore smoking or not, but if they re- fuse to restore it on the Council's reso- lution, an ordinance will be passed di- recting that it be done, according to statements made after the meeting. New Rates at Cincinnati. — The Cin- cinnati (Ohio) Traction Company an- nounced the following rates of fare, to take effect on July 1: Adults — Tickets, 64 cents, strips of six tickets for 39 cents, cash fares, 7 cents; children un- der ten years — tickets, 31 cents; strips of four tickets for 13 cents; two chil- dren carried for one adult ticket of 61 cents, cash fare, 4 cents; transfers — issued under the present rules; in- clined plane passengers — tickets, 3i cents; strips of four tickets for 13 cents, same tickets will be used for in- clined plane fares as for tickets; cash fare, 4 cents. Arrangements have been made for the use of old tickets by add- ing the difference in cash. These changes have been referred to previ- ously very briefly in the Electric Rail- way Journal. Increases on Elmira Suburban Lines. — The Elmira Water, Light & Railroad Company, Elmira, N. Y., has filed with the Public Service Commission for the Second District, a new tariff which it proposes as effective on July 20 on the Seneca Lake division — Elmira, Elmira Heights, Horseheads, Montour Falls and Watkins and the towns of Elmira, Horseheads, Veteran, Catlin, Catherine and Dix. Changes proposed are: One- way fares between points Horseheads to Watkins, inclusive, established on the basis of 3 cents per mile, minimum fare 5 cents. Increases are effected. The new regulation provides for the sale of fifty-two-trip monthly commutation ticket books for travel between points named and at the following prices per book: Pine Valley and Elmira, $10.40; Pine Valley and Horseheads, $4.68; Millport and Elmira, $13.52; Millport and Horseheads, $8.32; Millport and Montour Falls, $7.03; Montour Falls and Watkins, $3.64. Changes in char- tered car rates, package rates and for checking trunks effect increases. 48 Electric Railway Journal Vol. 54, No. 1 Personal Mention Ingle President specialize on modern operating econo- mies, the building up of short-ride zone Manager of Keokuk Property Elected fare systems and the co-ordination of to Head the Iowa Electric ^us and electric railway service. Dur- Railway Association jj^g recent years, Mr. Jackson has given At the annual meeting of the Iowa t^ese subjects wide study, both in Electric Railway Association held at America and abroad, and his writings Colfax, la., on June 18 and 19, J. P. t^ese topics have been of most Ingle, manager, Keokuk (la.) Electric stimulating character. Mr. Jackson Company, was elected president of the ^^^^y with him m this new work association for the ensuing year and ^^^^ wishes of his recent associates member of the board of directors for success. five years. Mr. Ingle was born at Salis- bury, Md., on Oct. 27, 1882, and lived Capt. Harry L. Brown, U. S. A., has at Atlanta, Ga., from 1882 to 1906. He returned to the editorial staff of the was educated in the public schools of Electric Railway Journal after an Atlanta and worked for the Atlanta absence of a year and a half spent in Gas Light Company as office boy, bill- the signal service. He was formerly ing clerk and bookkeeper from 1897 the Western editorial representative of to 1902. From 1902 to 1906 Mr. Ingle the paper, with headquarters in Chi- cago, but will now be stationed in the New York office. George H. Wygant, for the last nine and a half years commercial agent of the Tampa (Fla.) Electric Company, has been transferred by Stone & Web- ster to Baton Rouge, La., as manager of the Baton Rouge Electric Company, which furnishes gas and electric light and power, as well as electric railway transportation, to the community. J. Augustus Hageman has been made traffic superintendent of the Trenton & Mercer County Traction Corporation, Trenton, N. J. The new official succeeds Thomas J. Connelly, resigned. Mr. Hageman has been connected with the company at Trenton for the last thirty years and has filled various offices with the corporation. Mr. Con- nelly will return to Troy, N. Y., to re- join the United Traction Company. C. Gordon Reel, who retired as vice- president and general manager of the Kingston (N. Y.) Consolidated Railroad in 1911 and later was first deputy su- perintendent of highways of the State of New York, is now a captain in the United States Aviation Service. He was navigator of one of the airplanes which flew down New York Bay on June 28 to greet the crews of the NC 4, who returned to New York on the Zeppelin on that day. Louis C. White has been appointed counsel to John H. Delaney, new tran- sit construction commissioner of New York. The transit construction com- missioner has taken over all rapid transit construction work from the former Public Service Commission. Mr. White has for ten years past been attached to the New York City law department, and has during most of that time been engaged in the acquisi- tion of property for rapid transit and water supply purposes, and in the trial of suits growing out of rapid transit construction contracts. J, p. INGLE attended the Georgia School of Tech- nology, graduating the latter year with the degree of Bachelor of Science, Civil Engineer. In 1906 he became assistant superintendent of the Gas Light Com- pany of Columbus, Ga., and in 1908 superintendent of the gas department of the Baton Rouge (La.) Electric Com- pany. In 1908 he went to Keokuk, la., as superintendent of the gas depart- ment of the Keokuk Electric Company, becoming general superintendent of the company in 1914. From 1915 to date he has been manager of this company, which does all of the electric railway, lighting, power and gas business in Keokuk, and also serves several other surrounding towns in Iowa and Illinois. Mr. Jackson Retires Walter Jackson, who has been con- nected with the Electric Railway Journal for seventeen years succes- sively as assistant editor, associate editor and as business manager, has resigned to enter independent consult- ing electric railway work. He will Gordon Campbell Re-elected President of Companies at York Re- elected to Head of Pennsylvania Street Railway Association Gordon Campbell has been re-elected to serve a second term as president of the Pennsylvania Street Railway As- sociation. His re-election took place at the Harrisburg meeting of this associa- tion on June 27 and 28. He became a member of the executive committee of the association in December, 1914, was advanced to vice-president in December of the following year and continued in that position until June, 1918, at which time he was elected president. Mr. Campbell has been president and gen- eral manager of the York Railways and the Edison Light & Power Company of York, Pa., since January, 1910. He graduated as mechanical engineer from Stevens Institute in 1886 and entered the railway field as a draftsman at the Denver shops of the Union Pacific Rail- way shortly thereafter. Subsequently he became superintendent of the Colfax Electric Railway, Denver, purchasing GORDON CAMPBELL agent and master mechanic of the North Jersey Street Railway, Newark, N. J., general superintendent of the railways in Providence, R. I., now op- erated by the Rhode Island Company, and purchasing agent of the Washing- ton Railway & Electric Company, Wash- ington, D. C. This was followed by his connection in August, 1908, with the York Railways as vice-president and general manager, that position having been retained until he was promoted to the presidency of the York Company. W. B. Yearance, who for a number of years since leaving direct corporate ad- ministrative service has been engaged in consulting, operating and engineer- ing work on many of the important un- dertakings for the largest utilities in the East, has just been elected by the boards of directors of the Eighth and Ninth Avenue Railroads, New York, as "general manager and chief engineer in whole and responsible charge for the operation of these properties and the administration of their interests." July 5, 1919 Electric Railway journal 49 H. F. Adams has resigned as man- ager of the Haarlem (Holland) Electric Railway, and is now in this country, where he expects to purchase some ap- paratus, particularly motors and con- verters, for his property. During the war it was impossible to get this equip- ment, and service had to be cut for that reason, and a fuel shortage. After the purchase of this equipment Mr. Adams intends to remain in this country and will make application for American citizenship. He believes that vdth the signing of peace there will be a revival of Dutch electrical enterprises, and pos- sibly extension of the existing trunk line electrification. Mr. Adams, who is a graduate engineer from Delft and Carlsruhe, was engaged for some time in turbine manufacture in Great Brit- ain and then engaged in railway elec- trification in Holland. He became con- nected with the Haarlem Electric Rail- way when it was owned in America, the shares being in possession of the Neth- erlands Tramway Corporation, New York. This was in 1912. Later the property was taken over by the Holland Railroad System. The line is some 30 km. in length, double track, and con- nects Amsterdam, Haarlem and Zand- voort. During rush hours trains of two and three cars are run on a ten- minute headway. A. W. Warnock has resigned as gen- eral passenger agent of the Twin City Rapid Transit Company, Minneapolis, Minn. The resignation becomes effec- tive early in the fall when Mr. War- nock plans to go into business for him- self. In his fourteen years as head of the passenger department of the com- pany Mr. Warnock has systematized the work and has introduced many inno- vations, some of which have been adopted for use of systems in other cities. His two books, "How to Treat the Public" and -"Selling Street Car Rides" are text books which every Twin City trainman studies. Many other systems have also adopted them. Along this same line of reducing fric- tion between trainmen and the com- pany's patrons, Mr. Warnock has deliv- ered 150 lectures to Twin City train- men. Other notable work by Mr. War- nock has been the twelve annual fold- ers devoted as much to the Twin Cities as to the electric railway lines; the es- tablishment of the first electric railway publicity bureau on a large scale, and the complaint and suggestion bureau. Before entering electric railway work Mr. Warnock was for three years ad- vertising manager of the Northwestern Railroad, and for nine years was a member of the editorial and advertis- ing staffs of the Minneapolis Journal. He was one of the organizers of the Publicity Club of Minneapolis, which was later merged into the Minneapolis Civic & Commerce Association, and was its first president, from 1907 to 1909. It was under -his leadership that the ornamental street lighting system of Minneapolis was conceived and first installed on Nicollet Avenue, from Washington Avenue to Ninth Street, in 1908. Mr. Warnock has also been ac- tive in civic work. By virtue of his unanimous election by the clubs of the city as president of the Minneapolis Civic Celebration Association Mr. War- nock was foremost in planning and managing the seven-day outdoor cele- brations of the event during the first week of July, 1911. Mr. von Phul San Francisco President William von Phul, who has been vice-president and general manager of the United Railroads of San Francisco since 1916, has been elected president and general manager of the company succeeding as president the late Jesse W. Lilienthal. Mr. von Phul was grad- uated from Tulane University in 1891 with the degree B.S., and two years later as mechanical engineer. He was subsequently employed as general su- perintendent of the Louisiana Electric Light Company and of the Edison Elec- WILLIAM VON PHUL trie Company, New Orleans, until 1902, when he became associated with Sai'- gent & Lundy, engineers of Chicago. He represented that firm as engineer in charge of construction for the Cin- cinnati Gas & Electric Company, later becoming general superintendent of that company until 1905, when he was em- ployed by Ford, Bacon & Davis. Since 1907 Mr. von Phul assisted in the firm's engineering and operation of the elec- tric railway and lighting companies in a number of large Southern cities com- prised in the American Cities Company, including the Birmingham Railway, Light & Power Company, Memphis Street Railway, Nashville Railway & Light Company, Little Rock Railway & Electric Company, Houston Lighting & Power Company and later the New Orleans Railway & Light Company. In 1912 he became a member of the firm of Ford, Bacon & Davis. Mr. von Phul is a member of the American Society of Mechanical Engineers and the American Society of Civil Engineers, and is responsible for a number of im- portant inventions which made possible the construction, at greatly reduced cost, of the large cotton warehouse ter- minal which Ford, Bacon & Davis de- signed and constructed at New Orleans for the Board of Port Commissioners of the State of Louisiana. M. O. Bicknell, who has recently been appointed traffic manager of the Sac- ramento Northern Railway, with head- quarters at San Francisco, Cal., was born at Vincennes, Ind., on March 22, 18G9. He began railway work in Janu- ary, 1888, with the Evansville & Terre Haute, at Vincennes, as bill clerk in the local freight office. The following year he was promoted to agent of the same road at Patoka, Ind. In Novem- ber, 1891, he went to the Southern Pa- cific Company as operator and ticket clerk at Deming, N. M., since which he has been consecutively traveling freight and passenger agent with headquarters at El Paso, Tex., until August, 1895; general freight and passenger agent of the Maricopa & Phoenix at Phoenix, Ariz., until January, 1898; superintend- ent of the same road until January, 1902; general freight and passenger agent of the Arizona Eastern and Southern Pacific until 1907; assistant general freight and passenger agent of the Southern Pacific, Pacific System, with headquarters at Tucson, Ariz.; chairman of the Arizona Railway Com- mission at Phoenix, Ariz., until 1909; chairman of the trans-continental bu- reau at San Francisco, Cal., until 1910; assistant to the president, Sacramento Northern Railway, which position he held until his recent appointment. Edward J. Hunt, who has been western manager of Electric Railway Journal, with headquarters at Chi- cago, for the last eleven years, sails on July 5, for the West Indies, Central and South America, Japan and China, in the interest of Hitchcock, Lloyd & Com- pany, Inc., exporters and importers. New York City. His assignment is that of studying the trade conditions in the various countries, and establishing sell- ing connections and creating organ- izations to handle the company's lines. Among these are machine tools and hardware, steam and elec- tric railway supplies, central station equipment, etc. Mr. Hunt's early training was in elec- tric railway construction work. He had charge of the construction of the third- rail on the Aurora, Elgin & Chicago Railroad and on the Jackson & Battle Creek Railway. He was also in charge of building the overhead on the Lansing & St. John Railway and on the Sterling, Dixon & Eastern Railroad. He joined the staff of the Electric Railway Jour- nal in 1908, when this paper absorbed the Electric Railivay Review. In 1910 he was placed in charge of the ad- vertising in the Chicago territory, and held this place until February, 1919, when he resigned to take up the for- eign work for Hitchcock, Lloyd & Com- pany. Mr. Hunt's long experience in the selling activities of the electric railway field have given him excellent training for his present work. Manuf adures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER. SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS South American Traction Materials Market Some Manufacturers' Agents Report Good-Sized Orders, Principally for Line Materials Some fairly good-sized orders from South America for different kinds of electric railway material and equip- ment, principally line materials, have been reported recently by several man- ufacturers' agents. From all appear- ances the material was for new work rather than for maintenance. One of the larger exporting houses, however, finds the electric railway sup- ply business to South America a little quiet just at present. Even under nor- mal conditions South America is not as heavy a purchaser of traction material, according to this exporter, as might be supposed. The reasons given for this condition are the size of the South American countries, the great distance between cities, and the light passenger and heavy freight traffic. While the interurban and freight work is quiet in South America there are indications that the transit systems in the larger cities are expanding some- what. Copper and Brass Products Higher Sheets, Tubes and Rods Increased 3 Cents Within a Week— Bonds Again Advance 3 Per Cent With copper prices well over 18 cents the latter part of last week, prices of copper and brass rods, tubes and sheets advanced about 2 cents a pound. That brought hot rolled cop- per sheets to 27.50 cents and round copper rods to 24.25 cents a pound. Seamless copper tubing went to 32.00 cents. An additional increase of 1 cent per pound applies to manufactured copper and brass products as of July 2. Copper was quoted at 19 cents on that date with the tendency still upward. So within one week there are found two advances in copper and brass products totaling 3 cents a pound. Copper products follow the metal upward in price cent for cent, manu- facturers say, while brass products follow in the ratio of about 4 cent for 1 cent rise in copper. All rail bonds are not sold under the same con- ditions; in some cases they follow the copper market closely and are sold on quotation. Where the discount is ap- plied they change in price only on about one cent copper changes. The discount on these bonds changed on June 27 and 28 from 22i to 20 per cent, another increase in price of slightly over 3 per cent. This makes a price increase of 61 per cent within three weeks. Although there has been reported no increase in brass overhead line material other than wire, it would not be sur- prising to see advances shortly in trolley cars, splicers, etc., in the near future with the raw metal tending- upward. Copper Wire Still Advancing in Price Volume of Sales Increases and Short- ages in Some Kinds and Sizes are Already Reported Wii-e is steadily increasing in price as a result of the almost daily higher copper prices. Within the past week an advance averaging 1 cent per pound was made in most every make of cop- per wire. Rubber covered wire on Monday morning was on a 23-cent base. Weatherproof and slow burning was quoted from 22 to 23i-cent base. Bare wire was 21 to 22i-cent base. The volume of wire sales is getting larger right along. Wire mills are most conspicuous of the copper buying interests. Reports of shortages on cer- tain sizes of weatherproof, particularly No. 10, and flexible armored conductor, are coming in from different sections of the country. A much better market for bare wire is reported. Considei-able business is coming through from central stations for transmission systems. Trolley wire is being sold in one mile lots. Sales of signal wire, however, have been very light of late. Foreign inquiries for wire of all kinds are coming in in larger numbers, although the export ti'ade in American wire has grown by leaps and bounds during the last three or four years. High-Tension Insulator Sales Are Not Large While there are a number of inquiries out for high-tension insulators, actual sales, manufacturers report, are be- low those of last year and not very good. Generally speaking, sales are for small quantities. This is to be expected as new long lines have been very scarce. Considerable work is pro- jected, and some is under way. Insulator sales consequently are in- creasing and, judging from the amount of projected work, the prospects for future business are bright. Many in- nuiries are coming from without the United States. Time Now Right to Order Heater Parts Later Purchasing for Fall and Winter Requirements May Not Secure Such Favorable Terms or Shipments With the summer season well under way, there are a number of good mar- ket reasons why traction companies should consider seriously their heating needs for the coming fall and winter. There is no better time for that than right now, manufacturers say, because there is no evidence that prices will be lower this fall and because deliveries can be best obtained by getting in orders as early as possible. On the other hand, manufacturers really feel that circumstances justify advancing prices for new electric heat- ing equipments and for repair parts this fall and winter. The tendency of porcelain, resistance elements and iron work is upward rather than downward, and labr.r cannot be expected to be lower this year. The early summer season is of course the slack season in the manufacture of electric heaters, and manufacturers have to keep on hand a certain force of workmen. The factory cannot build up at this time either repair parts or complete heaters for stock, in anticipa- tion of the fall demand, on account of the varied requirements of the different railways. Consequently, if ordering is put off until September and October and pile up all at once, shipments will necessarily run up to two or three months. Orders for repair parts placed now, it is learned, can be filled and shipped for delivery at any time in the fall or win- ter, and billed as of that date. Orders placed in September can probably be shipped in 30 days, while those placed in October are liable to require sixty to n'.nety days in filling. Stocks of raw materials on hand amount to about 20 per cent of the season's requirements, so late orders may have to await until these can be replenished. The whole tendency of late ordering is toward higher costs and longer ship- ments. In the past four years pro- ducers have absorbed considerable amounts of the additional expense, but if costs of material go higher they feel that these must be passed on to the c nsumer in greater proportion than heretofore. Repair parts orders in the past two years have been about 10 per cent of normal, so evidences point to a much larger volume of prdering than hereto- fore if traction companies are to put and keep in shape their electrical heat- ing equipment for this winter. July 5, 1919 Electric Railway Journal 51 Rolling Stock New Orleans Railway & Light Com- pany, New Orleans, La., has started to equip cars on its Coliseum line with safety doors and steps. When this work is finished it is expected to simi- larly equip cars of its other lines. Tidewater Power Company, Wilming- ton, N. C, has received motors and trucks necessary for changing two of its interurban trail cars into motor cars. Shipment of the eight cars, to be rented from the Emergency Fleet Cor- poration, has been held up on account of the delay in delivery of motors, which were secured in Boston. Recent Incorporations Pittsburgh, Butler & Harmony Con- solidated Railway & Traction Company, Pittsburgh, Pa. — Incorporated in Dela- aware with a capital stock of $6,500,- 000, presumably as the successor to the Pittsburgh, Harmony, Butler & New- castle Railway, change in control of which was noted in the Electric Rail- way Journal for June 28, page 1290. Power Houses, Shops and Buildings Pacific Electric Railway, Los An- geles, Cal. — Plans have been completed by the Pacific Electric Railway for the construction of a combined passenger and freight station at Harbor Boule- vard, San Pedro. The building will be 190 ft. long and have an average width of 30 ft., and will be of brick consti-uc- tion. The total expenditure, including the rearrangement of trackage neces- sary, will be approximately $50,000. Philadelphia, Pa. — Sealed proposals will be received by William S. Twining, director, Department of City Transit, until July 8 for the following work: Contract No. 553. — Station buildings of brick, steel and reinforced concrete for Frankford Elevated Railway, at the southeast corner of Front and York Streets, and at the southwest corner of Front and Dauphin Streets, including the removal of the existing building at the southwest corner of Front and Dau- phin Streets. Contract No. 554 — Sta- tion buildings of brick, steel and rein- forced concrete for Frankford Elevated Railway, at the northeast and north- west corners of Front Street and Girard Avenue, including the removal of the existing building from the north- west corner of Front Street and Girard Avenue. Contract No. 555 — Group of both contracts 553 and 554 in one. Con- tract No. 563 — Steel sash and wood closures for the entrance openings of the existing station buildings at 4269, 4270 and 4604 Frankford Avenue and southeast corner of Frankford Avenue and Margaret Street. Contract No. 113 — Return piping for steam heating sys- tem in basement of City Hall. Con- tract for building partitions of wood and glass in the offices of the Depart- ment on the eleventh and twelfth floors of 1211 Chestnut Street. Copies of plans and specifications may be ob- tained upon deposit of $10, to be re- funded upon the return of plans. Track and Roadway Los Angeles (Cal.) Railway Corpora- tion.— The Board of Public Utilities has ordered the Los Angeles Railway Corporation to install double tracks on new Broadway, between Tenth and Pico Streets, in order to relieve traffic con- gestion. It is estimated that the in- stallation of the double tracks, with switches, turnouts, etc., will cost about $50,000. Miami (Fla.) Traction Company. — It is reported that the Miami Traction Company will construct 3 miles of track. Susquehanna Traction Company, Lock Haven, Pa. — Work has been be- gun by the Susquehanna Traction Com- pany on the reconstruction of its line in Lock Haven. Fort Wayne & Northern Indiana Traction Company, Fort Wayne, Ind. — Extensive improvements will be made by the Fort Wayne & Northern Indiana Traction Company of its Broadway line between Main Street and the plant of the General Electric Company. The company will also double track South Calhoun Street from Creighton Avenue to Pontiac Street. St. Louis, Mo. — Resolutions intro- duced in the Board of Aldermen of St. NEW YORK METAL MARKET PRICES June 1 8 July 2 Copper, ingots, cente per lb 1775 19.00 Copper wire base, cents per lb 20 00 to 20 50 20. 50 to 21 . Lead, cents per lb 5 40 5 40 Nickel, cents per lb 40.00 40.00 Spelter, cents per lb ;.. 6 90 7.35 Tin, cents per lb t72.50 70 50 Aluminum, 98 to 99 per cent, cents per lb 33.00 33.00 t Governmeni price in 25-ton lots or more f.o.b. plant. 00 ELECTRIC RAILWAY Rubber-covered wire base. New York, cents per lb Weatherproof wire (100 lb. lots), cents per lb.. New York Weatherproof wire (100 lb. lots), cents per lb., Chicago T rails (A. S. C. E. standard), per gross ton T rails (A. S. C. E. standard), 20 to 500 ton lots, per gross ton T rails (A. S. C. E. standard), 500 ton lots, per gross ton T rail, high (Shanghai), cents per lb. . Rails, girder (grooved), cents per lb. . . . Wire nails, Pittsburgh, cents por lb ... . Railroad spikes, drive, Pittsburgh base, cents per lb Railroad spikes, screw, Pittsl>urgh base, cents per lb Tie plates (flat type), cents per lb .... Tie plates (brace type), cents per lb . . Tie rods, Pittsburgh base, cents per lb. Fish plates, cents per lb , Angle plates, cents per lb Angle bars, cents per lb. . Rail bolts and nuts, Pittsburgh base, cents per lb . , . Steel bars, Pittsburgh, cents per lb . . . Sheet iron, black (24 gage), Pittsburgh, cents per lb Sheet iron, galvanized (24 gage), Pitts- burgh, Cvjnts per lb Galvanized barbed wire, Pittsburgh, f er ta per lb June 1 8 22 23.25 to 26.00 25 75 to 26. 50 $49 Goto $51 00 $47. 00 to $49 00 $45. 00 to $47.00 3 3 3.25 3 35 8 .2.75 2.75 7 3 3.90 3.90 4 35 2 35 4 20 5.25 4. 10 July 2 23 27 25 75 to 26 50 49 OOto 51.00 47 00 to 49 00 45 00 to 47 . 00 3 3 3 , 25 3 35 8 2, 75 2.75 7 3 3 90 3.90 4.35 2.35 4 20 5.25 4 10 OLD METAL PRICES— NEW YORK June IS July 2 Heavy copper, cents per lb 15 OOto 15 50 16 OOto 16 50 Light copper, cents per lb 12 OOto 12 75 13 OOto 13 50 Heavy brass, cents per lb 8 50 to 9.25 8 50 to 9 .'^0 Zinc, cents per lb 5 25 to 5 50 5 25 to 5 75 Yellow brass, cents per lb 7 50 to 8.00 7 75 to 8 25 Lead, heavy, cents per lb .• 4. 75 to 4 87^ 4 75 to 4 87 j Steel car axles, Chicago, per net ton. . . $23 00 to $24 00 $25 00 to $26 nu Old carwheels, Chicago, per gross ton. . $21 00 to $22 00 $22 00 to $22 50 Steel rails (scrap) , Chicago, per gross ton $18 50 to$19 00 $19 00 to $20 00 Steelrails (relaying), Chicago, gross ton. $19 50 to$20 00 $20 OOto $21.00 Machine shop turnings, Chicago, net ton $6.50to $7.00 $7.75to $8.00 MATERIAL PRICES June 18 July 2 Galvanized wire, ordinary, Pittsburgh, cents per lb 3.70 3.70 Car window glass (single strength) , first three brackets, A quality. New York, discount t 80% 80% Car window glass (single strength, first three brackets, B quality) , New York, discount 80% 80% Car window glass (double strength, all sizes AA quality) , New York discount 81% 81% Waste, wool (according to grade), cents per lb 14 to 17 14 to 17 Waste, cotton ( 1 00 lb. bale) , cents per lb. 8 to 1 2 J 8 to 1 2 ', Asphalt, hot ( 1 50 tons minimum), per ton delivered Asphalt, cold ( 1 50 tons minimum, pkgs. weighed in, F. O. B. plant, Maurer, N. J.), per ton Asphalt filler, per ton $30.00 $30.00 Cement (carload lots), New York, per bbl $2,90 $2 90 Cement (carload lots), Chicago, per bbl. $3 05 $3.05 Cement (carload lots), Seattle, per bbl. . $3,13 $3.13 Linseed oil (raw, 5 bbl. lots), New York, pergal $1 83 $1.90 Linseed oil (boiled, 5 bbl. lots), New- York, pergal $1 75 $1.92 White lead (100 lb. keg), New York, cents per lb '3 '3 Turpentine (bbl. lots), New York, .cents _ . . , pergal «1.I7 I. OOto 1.03 t These prices are f. o. b. works, with boxing charges extra. 52 Electric Railway Journal Vol. 54, No. 1 Louis by the Tenth Ward Improve- ment Association last week ask that the city take action toward the estab- lishment of loops and passenger wait- ing stations for the convenience of per- sons using the interstate electric lines between St. Louis, Mo., East St. Louis, 111., and other Illinois points. Schenectady (N. Y.) Railway.— The Schenectady Railway has been author- ized by Governor Smith to use the new gateway bridge across the Mohawk River. The company plans to double- track the new bridge and continue the tracks down State Street, cutting off the tracks now on Washington Avenue and along the Scotia dyke. The cost will be about $170,000. Canadian Government Railways, Brockville, Ont.— The Brockville Public Utilities Commission is considering equipping the Brockville and Westport branch of the Canadian Government Railways for electrical operation. The line is 45 miles long and serves a farm- ing section. Waco-Temple Interurban Association, Waco, Tex. — The Waco-Temple Inter- urban Association has been organized at Waco for the purpose of building and operating an interurban line be- tween Temple and Waco. Officers of the association are: 0. A. Ryfle, presi- dent and general manager; John F. Wright, vice president; J. L. Davidson, secretary and treasurer; Alva Bryan attorney, all of Waco. A survey of the proposed route will be begun at once. Richmond & Ashland Railway, Rich- mond, Va. — Operation has been begun by the Richmond & Ashland Railway on the line of the Richmond & Chesa- peake Railway, which it recently pur- chased. Manitowoc & Northern Traction Company, Manitowoc, Wis. — The City Council of Manitowoc has ordered the Manitowoc & Northern Traction Com- pany to extend its lines. Trade Notes Watson-Stillman Company announces that on June 2 it moved its general sales and advertising departments from Aldene, N. J., to 50 Church Street, New York City. Walter A. Zelnicker Supply Com- pany, St. Louis, Mo., has added 2,000 sq. ft. to its present office space at 325 Locust Street, St. Louis, Mo., an in- crease of 33S per cent. Gold Car Heating & Lighting Com- pany announces the receipt of an order for electric heaters for the 200 safety cars ordered by the Brooklyn (N. Y.) Rapid Transit Company. Safety Insulated Wire & Cable Com- pany, New York City, Le Roy Clark, president, announces the appointment of Francis E. Donohoe as special agent of the company, effective June 1, 1919. Indiana Mill & Lumber Company, 1405 Fisher Building, Chicago, III., has announced that it is handling a line of Southern white cedar poles in addition to its line of hardwood and pine rail- road ties, piling, pine and oak timbers. Samuel F. Joor, a consulting engi- neer of Chicago, has joined the Ameri- can Steam Conveyor Corporation, Chi- cago, as sales engineer. Mr. Joor has had wide experience in the conveyor field, at one time being western mana- ger and sales engineer of the Jeffrey Manufacturing Company and previous to that, with the Link Belt Company. Eastern Foundry & Machine Com- pany, Inc., announces that it is now op- erating its new plant at Ambler, Pa. The buildings are the modern daylight type, and the equipment the most scien- tific procurable. With large quantities of raw materials always in stock, and under the ideal conditions now afforded, the company states requirements in bronze castings, bushings, chord bars, bearings, or specification work, will re- ceive prompt and satisfactory fulfill- iTient. Standard Scientific Company an- nounces that the manufacture of Melio- rate solderless terminals has been taken over by the Standard Scientific Com- pany, 70 Fifth Avenue, New York City. These terminals were introduced a number of years ago by the Meliorate Manufacturing Company, which has now disposed of its entire rights and interests therein to the Standard Scien- tific Company, which is expending the same care and attention on the product as its predecessors. Midwest Engine Company of India- napolis, Ind., announces the opening of four offices in this country in order to more fully cope with and meet the growing demand for prime movers, pumping equipment, etc. Jacksonville, Fla., El Paso, Tex., New Orleans, La., and New York City are the locations selected. D. J. Garrison represents the Midwest Engine Company in Flor- ida, with offices in the Florida Life Building, Jacksonville. Mr. Garrison was formerly connected with the Busch- Sulzer Brothers Diesel Engine Com- pany of St. Louis., Mo., and later started a manufacturers' agency at Jacksonville, handling miscellaneous equipment to shipyards under the name of D. J. Garrison & Company. Ches- ter B. Loomis is representing the com- pany in western Texas, Arizona, New Mexico and southern Califoraia, with offices at 303 Caples Building, El Paso, Tex. Mr. Loomis had a consulting and mechanical hydraulic engineering office in Los Angeles, Gal., for several years before entering the service. B. H. Downing is eastern sales manager, with offices at 111 Broadway, New York City. J. R. Lowe, with offices at 617 Maison Blanche Building, New Orleans, La., represents the company in the south. Blaw-Knox Company, Pittsburgh, Pa., announces that the sale of its plant at Wheatland, Pa., to Sharon interests, is in line with its program which was outlined some time ago for either the removal or sale of the Wheatland plant and the building of an extension to its plant at Hoboken, Pa., to take care of product formerly manufactured at Wheatland. This is done for the pur- pose of concentrating all of the manu- facturing at Hoboken, which was found to be the most advantageous point both for manufacturing and for shipping fa- cilities. About one-half of its new plant at Hoboken has been completed, and it is anticipated that the entire addition will be completed within the next few weeks. The combined plants at Hoboken now under construction will contain about 30 per cent more floor space than was available in the two separate plants. In addition to the foregoing activities the Blaw-Knox Company is engaged in the construc- tion of a welding plant at Hoboken ad- joining its present plant, and will spe- cialize in this department on steel mill and chemical plant specialties. The combined plants at Hoboken will em- ploy about 1200 men as against 700 men who have been employed by the company heretofore at Hoboken and Wheatland. The manufacturing site of the company at Hoboken covers 50 acres, and in point of shipping facili- ties for incoming material and out- going product as well as in the matter of labor supply is most fortunately situated. In order to take care of the additional labor required the company has purchased 15 acres of additional ground on which houses are being erected for the use of its workmen. New Advertising Literature Liberty Manufacturing Company, Pittsburgh, Pa.: Catalog "Z" describes the operation of turbine cleaners, pneu- matic cleaners and other products of its factory. Mitchell-Rand Manufacturing Com- pany, 18 Vesey Street, New York City: Form No. 245 — "Discounts on Elec- trical Tapes and Webbings," with ref- erence to form No. 226, which was issued previously. Holden & White, Inc., Chicago, 111.: Bulletin on Garland ventilators for large passenger coaches, showing typi- cal installations for either monitor or arch roof cars of larger types, and de- scribing the Garland blower systems. Gilbert & Barker Manufacturing Company, Springfield, Mass.: Booklet on "Oil Storage Systems," for storing, handling and distributing volatile, lubricating and paint oils in machine shops, power plants and electric rail- way oil houses. Electric Railway Equipment Com- pany, Cincinnati, Ohio: First edition of Catalog "F," showing reproductions from actual photographs of its combi- nation railway and lighting poles in- stalled in many cities. It also illus- trates these poles supporting General Electric Novalux units and luminous arc lamps, besides lamp standards, lighting brackets and mast arms. Electric Railway Journal Consolidation of Street Railway Journal and Electric Railway Review Volume 54 ^, "'['^■jS^Qw York, Saturday, July 12, 1919 Number 2 Don't ThinIc''of tlie Electric ^' Railway in the Past Tense ANY tendency, if such exists, to feel or assume that the electric railway has done its best work and must look forward to early retirement should be em- phatically discouraged. The electric railway in which the present generation is interested is the railway of the future. And the industry is as yet a mere infant in point of years as compared with transportation as a whole. Just a third of a century covers its whole com- mercial career, of which the most useful part is spanned by two decades. Thirty years ago the electric rail- way had the field to itself, now there is vigorous com- petition. But fair competition is the life of every in- dustry and it ought to be the life of transportation. Let us not forget that Oliver Wendell Holmes said that Tvhen the individual becomes retrospective he is showing signs of age. Surely this business is not turning gray at thirty-three. All Means for Helping the Industry Must Be Utilized THE two topics considered at the Great Lakes cruise meeting of the C. E. R. A. are indicative of the thinking, and acting, too, of the industry at this time. The paper on safety cars aroused lively and continued discussion. This was due to the fact that the men who are operating the electric railway utilities are looking for means to enable them to give an approximation to the service which the people demand, knowing that if they can do this it will be much easier to secure the relief from taxation and fare-limitation burdens which they so much need. The paper outlining the development which has led to the present inequalities in financial and other burdens, with the supplement thereto by A. W. Brady, painted a rather gloomy picture of the situation from what might be termed the "negative" side. This side must be considered with a view to securing readjustment, and so long as politics plays so important a part in public relations as it does to-day, the industry will be under the necessity of keeping its case directly before the public. The discussion at this meeting once more emphasizes the fact that the traction business must be put upon its feet by using all of the three available means, namely, (1) adjustment of fares to fit the purchasing power of money and the quantity and quality of the service; (2) adjustment of direct and- indirect taxation in all fair- ness to the railway user and non-user, to the security holder and the non-security holder; (3) improvement of output so that expansion of business will reduce the unit cost of furnishing it. The industry is shaking itself preparatory to a mighty forward move. Realizing the essentiality of electric railway transportation the public is, reluctantly but posi- tively, recognizing the need for higher fares. The fed- eral government has at last provided a mechanism to permit the people as a whole to appreciate the nature and needs of the business. The interest in the safety car reflects the desire of both public and operators for better service. These encouraging signs are stimulat- ing and presage, to our mind, a general improvement in the situation. As the French say: "En avant!" One-Man Cars Must Be Laborless and Safe IT IS a little discouraging in examining the statistics of one-man car installations, as presented by S. W. Greenland on July 1, at the meeting referred to in the preceding editorial, to find that so many of these cars have been put into operation without de- creasing but rather augmenting the work of the car operator. We do not refer, of course, to stub-end operation or other lines averaging only two passengers per car-mile, but rather to those cases where a speed- ing up of the service would bring more dollars to the company and more satisfaction to the platform man and the public. For example, those managers who express satisfac- tion because nobody is complaining are uttering a merely negative opinion. If they add air brakes to their cars, they are taking the first step in higher schedule speed, in greater safety inside and outside the car and in less work for the operator. If they add air-operated doors and steps to their cars, they take a second step forward, particularly in reducing standing time and in permitting better collection of fare. If they take the third step of interlocking all the oper- ating appliances of the car, they have attained the high- est degree of operating economy, the safest attainable schedule speed and the maximum satisfaction to both the patron and the platform man. Now each step, made individually or collectively, will cost money, but wasted platform time also costs money. The trouble is that because we think of the expense in dollars and of the waste in cents, the real economies tend to become obscured. Let us assume, for instance, that the car with all the speed-up and safety appliances is good for 10 car-miles more a day. Then the faster car would earn say $2 a day more if the average revenue was only 20 cents per car-mile. More than half of this would be sheer profit because the wages in both cases would be for hours and not for miles. Even if we made a liberal allowance for the extra weight of the speed-up equipment and the energy required therefor, the surplus would surely run between $1.25 and $1.50 a day on any line with something better than inter- urban schedules. Does it require a knowledge of the higher mathematics to figure out how quickly the auto- matic apparatus would pay for itself? 54 Electric Railway Journali Vol. 54, No. 2 In all this we have said nothing about the reduction of the accident expense. Any electric railway surely would be willing to pay a good premium per annum per car to any casualty company that would be willing to accept the risk. Why not then treat part of the cost of automatic appliances as if it were an insurance premium. It is all very fine to boast that no accidents have occurred despite the absence of modern safety appliances, but if the accident does come the cost of the settlement will depend very largely upon the defendant's ability to prove the best and most comprehensive devices that its operating conditions justified. The ultimate economy of putting safety first is but a matter of dollars and cents and common sense. The Use of Manganese Steel In Curved Rails Is Not Always Economical THE use of manganese steel and other alloyed steel in special track work, including curves, upon electric railways was a rather fixed practice before the steam railroads began to take an interest in the subject. In fact it took a long time to prove to them that even a trial would prove its worth. Once convinced, the steam roads have become large users of this material for some kinds of work. Meanwhile the electric railways had gained considerable experience in comparative wear of manganese steel as against bessemer and open-hearth steel, especially in curves, and some street railway engineers were long ago bold enough to voice the re- sults of these experiences, which were to the effect that for plain curves the conditions must be exceptionally severe to warrant the added expense of the manganese, even at the pre-war price differences. Some electric railways have found that they could afford to renew a curve three times with open-hearth steel for the same total expense as was involved in one manganese curve. The tendency in the use of expensive manganese curves is also toward permitting the curves to remain in service long beyond the time when good maintenance would call for their removal. Similarly it was found that only in certain excep- tionally severe locations was it advisable to install the excessively expensive manganese special track work. The steam roads are beginning to find out the truth of this matter also, if the reports of tests on alloyed steel rails in service in curves, as recently rendered by the committee on rails of the American Railway Engi- neering Association, can be taken as a guide. Here, two different railroads report that when the high cost is con- sidered, the proposition can hardly be considered eco- nomical. It is also noted that the manganese rails be- come distorted more easily than bessemer or open-hearth rails, an observation which confirms electric railway ex- perience. In fact, in electric railway service, the dis- tortion has been the real cause of removal in several instances, rather than direct abrasion. Similarly, in special work for steels in many cases so-called soft centers (medium-steel or sometimes chromium-steel) will serve the purpose better than manganese at less cost. The lesson to be learned from these combined ex- periences seems tj3 be that a very careful study of con- ditions should be made before a decision is had as to the advisability of substituting manganese steel in curves and other special work, since it will often be found that some other alloy-steel or even open-hearth steel will eventually prove more economical. What the Committee of 100 Can Do IF THE plans of the American Electric Railway Asso- ciation and its committee of one hundred in connec- tion with the presentation of its case to the Federal Electric Railways Commission are carried out, the work will be most exhaustive. No such comprehensive review as that proposed has probably ever before been made of any industry, because parallel conditions in any other have not occurred. The investigation and testi- mony will necessarily be largely along financial lines because the present crisis is a financial one. Neverthe- less, the inquiry will necessarily also cover to an ex- tended degree questions of engineering, law, social bet- terment, government and banking. The task which the industry, through the associa- tion and its committee of one hundred, has set for itself is outlined in the program presented on July 10 by the committee on presentation, and published elsewhere in this issue. Briefly this program may be divided as follows : 1. To describe the present status of the industry, 2. To outline the causes which have led up to the present condition, 3. To prove the continuous social need of urban and interurban transportation service. The duty of supplying the data covered by these three divisions belongs to the committee on presentation, while that of suggesting means of escape from the existing tangle is the work of the committee on recom- mendations. In a general way the facts covered by the three para- graphs given above are known to most men in the in- dustry, but they are known only in a general way. In consequence the data which the association and its ex- perts are collecting ought to be most instructive even to men actually engaged in railway service, as it will be derived not only from operating sources but from every collateral direction. Incidentally, we believe, the in- quiry will accomplish a great deal of good in addi- tion to proving the need of greater financial return for electric railway properties. It should prove the close connection between community prosperity and that of the local transportation system and the advantages of active co-operation between municipal and railway au- thorities for the common good. It ought also to ex- plode some popular misconceptions about the prevalence of water in electric railway capitalization and the profits of railway operation. From the evidence thus presented by the associa- tion it will be the duty of the federal commission to make recommendations, and if we assume that the in- dustry proves its case in regard to clause (3), i.e., that there is a continual social need for urban and interurban electric railway transportation the recommendations of the federal commission on the presentation of this evi- dence wiU have to be constructive. At present railway construction is not only at a standstill, it is going back- ward, and electric railway credit is dead. The worK of the commission, therefore, if its members accept the electric railway as a necessity, will be to suggest sucn means that a reasonable return will be earned on utility capital, not only in the immediate future but at all times. In this way only can electric railway credit be restored so that urban and interurban properties of the country can expand their facilities to accord with the community needs. Jidy 12, 1919 Electric Railway Journal 55 On Editing a Technical Journal THE editors of this journal are not endowed with powers of omniscience. They sometimes wish that they could be, to the extent that they might have a more all-seeing knowledge of things which are going on in the electric railway industry. Possessed of such power, the task of editing and producing a paper which will best cover all phases of the business would be greatly simplified. In the absence of such ability and being merely human, the editors must depend upon their personal contact with the men in the industry for most of the information which is necessary, in order to keep in touch with the progress in such a many-sided industry. That progress may obtain, it is the chief function of a technical or trade publication to gather and dis- seminate news and information which principally is of interest as a record of progress. In the gathering of such matter, the tendencies of the trade activities are focused or centralized in the editorial office. From this center of information, the editors attempt to select articles which will be of interest to the greatest num- ber of readers. Incidentally they attempt, from time to time, to direct attention upon matters of timely interest by comment in these columns. The task of issuing a paper of this character fifty- two times a year is no light one and the editors wish again to remind the readers of the Journal that its columns are at all times open to the discussion of timely topics. The receipt of communications from the men in the field, either for publication or for information and use editorially is always appreciated and the editors will be glad to have the feeling prevail that the Journal aims to be of the utmost possible service to the indi- vidual as well as to the industry as a whole. The motto of the Journal is "Service." Transfer Charge Granted in New York THE approval of Public Commissioner Nixon of the first district. New York, to a charge of 2 cents for transfers at 99 points on the surface lines in Manhattan is a most encouraging sign of the times. It can hardly be said greatly to relieve the situation in which the railway systems have been placed by the rising costs of labor and materials. But it will bring in some addi- tional revenue and, what is more, it will establish a precedent for further public recognition of an intoler- able situation and encourage the security owners to work toward substantial rehabilitation. The form of relief granted, a charge for transfers, is that for which the companies originally petitioned and is one to which the general plan of New York with its distinctive longi- tudinal and crosstovra avenues and streets makes it better adapted than would be the case with a fan- shaped city. The opponents of the charge for transfers are loud in their complaints of the additional "burdens" placed on the traveling public, but have no substitute except municipal ovraership. That there is really an additional burden, we do not admit. The fare is nominally higher, it is true, but actually it is not as high as before the war, and the slight additional charge is not a burden if recognized as a substitute for the only other courses open, namely, dissolution of the New York Railways into its constituent elements with a separate fare on each, serious deterioration of the service or municipal ownership and operation. Of these especially the last would be a very onerous burden on the city of New York whose large investment in the dual subway agree- ment is not only entirely unproductive, but is having piled against it a constantly increasing amount of pre- ferred charges, simply because the city will not recog- nize changed business conditions in its rapid transit investments. The 2-cent charge for transfers is the first ray of light since the war began on the New York Railways situation. Take Traffic Checks of the Non-Riders TRAFFIC studies of the non-riders, as a source of data that might show the way to an inauguration of service which would attract many of the pedestrians to the street cars, was a suggestion made by Chairman Ainey of the Pennsylvania Public Utilities Commission at the recent meeting of the Pennsylvania Street Rail- ways Association. He referred to these potential riders as representing the unearned increment of the electric railway business. The suggestion offers possibilities. The idea has been presented before, but no one has really gone into it ex- tensively, so far as we know, since the days of prospect- ing new lines. Now that there is a decided trend of thought through the industry along the line of selling transportation as a merchandising proposition, this idea of seeking out new sources of riders may perhaps be more feasible. Its value goes hand in hand with the ability of a company to supply transportation of a kind and quantity and at a price which will induce these walkers to ride. That means fast, frequent and fairly low-priced service. As Mr. Fairchild well said in the discussion, the railway company, like the merchant, must be ready to furnish the kind of merchandise that is wanted, but the size of package will vary. And when one thinks of those requirements, he immediately asso- ciates with them, for most municipalities, the safety car. To get a traffic check of a reasonable proportion of the walkers offers some difficulties, for it is hardly prac- ticable to trail each individual found walking on the street. But there are undoubtedly localities in every community where there are considerable numbers of factory or office employees who walk in a few fairly well defined common paths from work to home and thus form a movement that a traffic checker may readily analyze. Having plotted on a map or chart the various main courses of these pedestrians, the cause of the ex- cessive walking may be determined and the practica- bility of meeting that condition with a suitable service studied. It seems logical to assume that at least all persons (excluding those who ride in automobiles) who must walk in excess of one mile between their home and work, may be considered as car riders. And if the traffic study shows that there is a large percentage of such persons among the walkers, then it should serve as good evidence that additional business can be secured and how much. Mr. Ainey has done the industry a service in emphasizing in the Harrisburg meeting and also in the address presented by him at the Chamber of Commerce meeting last May the essential merchandizing phase of the electric railway industry. 56 Electric Railway Journal Vol. 54, No. 2 The Zone Fare in Practice LEEDS, PART II Recent Fare Increases of from 50 to 100 Per Cent Have Borne More Heavily on the Clerical than on the Working Class — Despite Higher Fares and a Cut in Service, Traffic Fell Off Only 3.4 Per Cent and Revenue Jumped 23.3 Per Cent Last Year By WALTER JACKSON IN THE last issue of this paper an account was pub- lished of the development of the housing conditions and tramway system at Leeds, the important man- ufacturing city in the midlands of England. The pur- pose of this article is to describe the present tramway operating conditions in Leeds and how the tramways increased fares 50 per cent and decreased its car mile- age more than 4 per cent, yet its decrease in passengers carried was less than 3* per cent. The present article includes a statement of the local labor conditions in the city. Up to June 10, 1918, a *d. ticket was available for general riders to a distance of A mile, while the standard penny ticket was good for an average of 2 miles. In its day, the ^d. ticket was a great success in getting TAKK RijW. AX iKTAXT ST1;1;I-:T IX TllK BL'SIXKSS DISTRICT OF LEEDS people to ride extremely short distances. It is sig- nificant, however, that when experimentally the 4d. rate privilege was extended to permit a ride of about i mile, it had to be restored to the 4-mile basis because a 1-mile ride for a id. cut too deeply into the Id. riders. This example from Leeds' experience is simply another illustration of the opportunity^ which the zone-fare principle provides for scientific traffic analysis and development. A 50 TO 100 Per Cent Increase Has Not Discouraged Traffic For the year ended March 31, 1918, the earnings per car-mile were 14.746d. on the basis of i mile for id., 2 for Id., 2i miles for l^d., 4 miles for 2d. and 6 miles for 3d. With the great increase in cost of tramway operation, Leeds could no longer afford to give a general fare of id. It was therefore necessary to go to the Id. fare as a starting point. In making the change, the management generally consolidated two of the old id. fare stages so as to give about 1 mile for Id. The 2 miles formerly given for Id. now cost lid. The highest regular fare is now lOid. for the 13.62 miles between Guiseley (White Cross) and Roundhay. In general, fares above Id. have been increased about 50 per cent. In one sense, the substitution of a Id. for a id. fare meant an increase of 100 per cent; but when averaged out the increase was less inasmuch as it did not effect at all those passengers who rode between i and 1 mile. The only id. fare that remains now is a ticket good before 7.45 a.m. for workmen and at any time for children between five and twelve years of age. The id. ride for a penny privilege is also granted to children up to fifteen years of age in going to and from school. A LIVELY day on A LEADING THOROUGHFARE IN THE CITY OF LEEDS The lid. ride is available to children for Id., the 24d. ride for 14d. and so on, but no special tickets are used in such cases as the conductor simply punches the ticket forward for the appropriate additional number of stages. Special rates for workmen also include afternoon re- turn or round-trip tickets up to lOJd. The last repre- sents the Guiseley-Roundhay ride previously mentioned. Here is a case where a workman pays only lOid. for 27.24 miles, whereas the ordinary passenger has to pay 21d. Although the workmen's return half must be used the same day, as hereinafter explained, it is obvious that the concession, is more than generous. Here, again, it may be emphasized to those who associate congestion with zone fares and the laborer, that it is precisely the workman who has had less-than-cost transportation for years. Even though the proportion of workmen's fare travel in Leeds is only 10 per cent of the total revenue or 17 per cent of the total passenger rides, it costs the Leeds system at least £12,000 a year July 12, 1919 Electric Railway Journal 57 Number of Regular Route Passengers Cars Hunslet (Leeds cars) 61,440 Hunslot (Wakefield cars) 60,200 Cardigan Road and Balm Road 134,255 Dewsbury Road and Beckett Street 245,682 Beeston, Woodliouse, and Belle Vue Road 229,915 Morley and Meanwood 141,109 Domestic Street and Circular Route Whiteliall Road and Harehills Roarl I^ower Wf)rtl('>' and lOasy Road. Upper Wort lev and llalton. . . . Pudsey and St aiininnley Leeds and Bradford ( Leeds cars) Leeds and Bradford (Bradford carsi Rodley and Corn Exchange . . . Guiseley, Horsforth, and Roundhay Lawnswood and Street Lane. . Farnley (rail-less) Otley and Burley (rail-less) . . iShadwell Motor Bus Parcels Miscellaneous receipts Conductors' shorts collected. 222 Overs 19-18- Shorts not charged 1-2- Shorts. Decrease on previous week . . . Increase on corresponding week last year more than the revenue. This is in reality a subsidy to one class of the population at the expense of the rest. As is admitted by all, the greatest sufferers from war are the clerical classes. In Leeds, the effect of the in- crease in fare was to inter- fere appreciably with the rid- ing habit of this portion of the population. Many shop clerks and others who had been in the habit of riding home for lunch seem to have adopted the expedient of bringing it with them. More- over, it is evident from the traffic returns that some of the old penny riders are walking at least one way be- cause they feel that they can- not afford to pay Hd. Condi- tions of this sort indicate un- fair the archaic rate for workmen has become. Table II herewith shows the weekly traffic return for the week ended Feb. 8, 1919, com- pared with the same period of the preceding year. To the original figures on Table II has been added the con- sumption of tickets report for the week ended Feb. 9, 1918, to show how the propor- tions of the different classifi- cations have been shifted by the change in fares. In 1918, for the week un- der consideration, the most popular full-rate ticket was the Id. one, amounting to 63 per cent of the total; in 1919 it was the lid. ticket, amount- ing to 43 per cent of the total. What might be defined as "the average ride passenger," therefore, dropped in numbers to the extent of 20 per cent. ====^=== The actual drop of passengers overall was only 9 per cent, as the number of passengers paying a higher rate than lid. was naturally augmented by the advancement from the lower-rate classifications. At the same time, it is to be observed that the number of maximum ride passengers at 7id. was less than at 5d., from which it is apparent that even the long rider can cut down on his traveling if necessary. From the same table it will be noted that the 2d. ticket for both one-way and workmen's return use has been eliminated. The thought that lay behind this was that the passenger who has to travel at least lid. worth will not be likely to get off and walk the rest of the way in order to save a penny. The fiscal year of the Leeds City Tramways ends March 31, and as the fare increase did not become effective until June 10, 1918, complete comparative re- sults are not available. Table II, on page 58, giving the TABLE L— LEEDS TRAFFIC RETURN FOR WEEK ENDED FEB. 8, 1918 AND 1919 Average Receipts per Mile Car 64,289 11,703 101,853 217,638 101,469 61,395 21 18 3 2 9 25 9 7 Miles Run 6,477 8,189 14,370 15,181 13,313 4,546 1,251 7,017 16.990 8,520 6.940 . — Total Receipts- 1919, £ 293 301 595 730 1,222 1,173 1.040 323 54 529 1,319 733 471 471 1918, £ 277 261 538 571 1,007 938 807 260 52 486 1,033 512 265. 200 466 1919 d. 1918 d. Previous Week in 1919, d. 22. 04 19 40 22. 37 21. 41 16. 81 21. 33 20, 42 15. 89 20. 92 17. 23 15. 33 19. 48 18. 74 14. 64 19. 22 17. 06 13. 95 18. , 10 10. 40 8. 94 7. 56 18. 17 16. 65 18. 78 18. 63 14. 61 19. 32 20. 67 14. 26 20. 21 16. 30 16. 00 17. 18 57,964 8 6,439 426 351 15, 91 13. 24 16. 14 405,412 47 38,540 2.826 2, 105 17, 60 13. 10 17. 90 305,813 33 25,367 2,070 1.513 19. 02 14. 22 20. 02 7,409 1,421 65 45 1 1 , 05 7 55 11. 15 7,691 1,688 91 81 13 CO 12. 34 12. 67 1,248 272 10 9, 65 6. 00 10, 21 2,222,028 176,521 13,647 21 35 10,830 18.55 18-16- 4i 51 13,698 14.72 £87 £2,817 19 05 Consumption of Tickets: ^Week Ended Feb. 8, 1919— Week Ended Feb. 9, 1918 1 d. 535,387 i d. 355,933 H d- 953,258 1 d. 1,542,891 2 d. 287 H d. 102,314 2i d. 142,684 2 d. 155,094 3 d. 102,719 2i d. 10,198 4 d. 15,283 3 d. 52,591 4i d. 36,684 4 d. 6,399 6 d. 5,420 5 d. 5,285 7J d. 3,747 6 d. Workmen's id. 57,413 i d. ii'osg Workmen's 1 d. return 56,770 1 d. 20,826 Workmen's H d. return 98,200 2 d. 55,624 Workmen's 2i d. return 20,759 3 d. 9,707 Workmen's 3 d. return 20,070 1 d. (exchange) 13,610 Workmen's 4 d. return 4,762 2 d. (exchange) , P**88 \ 50,184 Workmen's 4J d. return 4,021 3 d. (exchange) 8,666 Through tickets l| d. child's 502 Through tickets 3 d. 3,518 Through tickets 3 d. workmen 437 Through tickets 3 d. exchange 264 2,037,455 184,573* 2,418,220 This represents the number of return tickets issued, beini 2,222,028 : included twice to get the total passengers. statement for the year ended March 31, 1919, however, shows an increase of 23.36 per cent in receipts as com- pared to the normal increase of 11.7 per cent from April 1 to June 9, 1918, before the increase in fare. In spite of the 50 per cent increase in fares and abolition of halfpenny fares, the number of passengers carried was only 3.426 per cent less despite a cut of 4.109 per cent in mileage. The actual cut in mileage on individual lines was much greater than this average indicates, be- cause on lines with war industries it was actually nec- essary to increase the service. Thus the actual cut on the lines of lesser industrial importance was severe enough to have a bad influence on the retention of short-haul riders, who must have a frequent service re- gardless of the rate of fare. The results cited for the last fiscal year, however, indicate that traffic will re- turn once it is possible to restore the compulsory cuts in service. 58 Electric Railway Journal Vol. 54, No. 2 LEEDS CITY XR AM WAYS. CIRCULAR & DOMESTIC STREET.— WAYBILL. Date .. Duty .Vo Tarmlnui. CITT SQUARE. HTOE PARK, OOHESTIC ST. AotlUJ f»r8«. Cirr SQUARE. HTOE PARK, DOMESTIC ST. Aotual TIma ot Id. Id. Ud. lid. 2fd. 2id. 3d. 3d. 1 Id D Ud. 1 d. 2^d. 2.',d. 3d. ad. 3d. Id. Id. ir Id. 14 Id. Ud. 1 td. 2 id. 2'd 3d. 3d. • Id i;,d. 2:d. 3d. id. 1.1. r.d. 2Jd. 3d. CafhUr'i Inititil H'orkmanS Keturn Utter _ CONDUCTOR'S AVATBILL FOR COilPLETE WORK IN LEEDS DAY'S As previously intimated, no attempt is made to carry separate -]d. tickets for workmen and children respect- ively, or to have special tickets of higher denomina- tions for children only. The workmen's return ticket, however, does call for special treatment. The rule in connection with these reduced-rate tickets is that they must be presented for the return trip on the same day as issued. The conductor on getting his waybill TABLE II.— COMPARATI VE STATISTICS OF LEEDS CITY TRAM- WAYS FOR THE YEAR ENDED MARCH 31, 1918 AND 1919 Increase or Percentage 1919 1918 Decrease Change Total rtceipts £723,022-3-11* £586,086-8-9 + £136,935-15- 2 +23.364 Number of miles run 9,155,355t 9,547,670 —392,315 —4. 109 Number of passen- gers carried 120,252,950* 124,519,1 19 —4,266,169 —3.426 Receipts per mile (d.) 18.953* 14.732 + 4.221 + 28.652 Average fare paid per passenger(d.) 1.418* 1.110 + 0.308 +27.747 Population served. Number of times 542,000* 542,000 population car- carried 222* 230 —8 —3.478 Amount paid per head of popula- tion 26/3* 21/3 +5/0 + 23.529 LEEDS CITY TRAMWAYS. TRAFFIC DEPARTMENT. A comparison of your Punch Register, Tickets, and Cash Return shows deficit as under. You will please sign and return to Depot Inspector immediately, making any explanation you can offer. You may see the Way Bills and obtain any ottwr in- formation you desire by calling at the Traffic Office, Swine- gate, first opportunity during relief. It is important you should attend promptly. J. B. HAMILTON, General Manager. .\ Deficit in Money amounting t A Deficii ol Tickets, a EXPLANATION HOW A LEEDS CONDUCTOR NOTIFIED OF SHORTS IS *Fares increased 50 per cent and jd. fares abolished, June 10, 1918. tShortage of rolling stock owing to inability to obtain repair parts and suffi- cient labor. LAWNSWOOD and STREET LANE Leave Depot TIME POINT BOARD CARRIED ON EVERT LEEDS CAR when beginning his day's work is ad- vised by a rubber- stamp initial there- on that such initial is the one he is to punch that day when issuing a re- turn ticket. The conductor who gets the ticket in the afternoon can see at once whether or not it is valid. Be- fore returning the ticket to the pas- senger for use as a receipt, the second conductor cancels it against re-use by punching to the hour and quarter hour in the spaces provided on the back of the ticket. This cancellation is made with a separate pricker to avoid confusing the count of the ball punch, which is employed only in the issuance of tickets. In this way no exchange tickets are re- quired— an advantage of more importance on a large system in simplifying the number of tickets than any possible abuse of the return-ticket privilege. The general control of the correct use of tickets is effected in the customary manner through thirty-six ticket inspectors. These men average sixty cars a day, the same car being boarded by different men three or four times a day. Their visits are always attested by the signature of the conductors. The ticket in- spectors work nine hours each, but their shifts are so arranged that all are on hand during the heavy hours. Besides handling their ticket-check duties, these men help to correct irregularities in traffic, running time, etc. Since the Leeds system gets its tickets from an outside printer, the plan of using individual serial num- bers for conductors until 10,000 of each kind have been exhausted is not followed. Instead, the ticket boxes issued daily to the conductors are filled from a common stock (kept up three weeks ahead) to the extent that traffic fluctuations on the given routes justify. These boxes, together with punches and waybills, are for- warded to the inspectors at the several depots. The waybill, as shovsoi herewith, is divided to cover a full day's work, individual journey bills not being consid- ered necessary. The depot inspectors issue the boxes to conductors as they book on for duty. In the matter of cash re- turns, a conductor may make his turnover either at the central cashier's office down- town or to his depot inspec- tor. In most cases the con- ductors hand the returns, in- cluding tickets and waybills, to the night depot inspec- tor, who checks the cash in their presence and delivers receipts out of his dupli- Eoute Xi July 12, 1919 Electric Railway Journal 59 cate receipt book. Cash does not get into the ticket department at all but is forwarded to the cashier at the central office. Here it is counted independently, checked against the totalized receipts of each depot in- spector and tallied against the statements of the ticket department. The cashier's office is open from 6 a.m. to 9 p.m. In it there are, besides the cashier, three male assistants and twelve girls. Two of the assistant cash- iers are always on duty during the busy periods. In the ticket department there are thirty-seven em- ployees, all female except two laborers. Of this num- ber twelve take care of ticket boxes and four handle the punches. Miscellaneous duties include the prepara- tion of the daily and the weekly traffic returns similar to those shown in Table I. For 557 conductors 1050 punches are required. These are supplied by the Bell Punch & Ticket Company, London, at a rental of 9s. a year each, including upkeep, transportation, etc. It COST OF TICKET CHECK ON THE LEEDS CITY TRAMWAYS . 1913-1914—^ — 1917-1918 . Total Cost per 100 Total Cost per 100 Cost Passengers Cost Passengers £ rl. £ d. Tickets, ticket boxes and repairs 1,149 0 294 4,277 0.825 Punchsealsandhire ofpunchts. 399 0 102 438 0.085 Ticket inspectors 2,509 0,643 3,689 0.711 Ticket-room and punch-room staff 1,224 0 313 2,571 0,494 Sundries 81 0,921 249 0,048 Total 5,362 1 373 11,224 2.163 Per cent of revenue 1.27 1,95 Their wages are charged against Account No. 3, "Wages of Other Traffic Employees." The Leeds City Tramways follows the usual British practice in the assignment of duties for the platform employees, but the management has gone a step far- ther for the convenience of the men by printing both the "rotation of duties" sheet posted at the depot and the more detailed "duty sheet" (see illustration). The RAILKD LANES FOR SEGREGATING PASSENGERS AT IMPORTANT LOADING POINT IN LEEDS may be appropriate to say here that punchings are counted so seldom that this tedious work does not call for all the time of even one girl. The employees re- quired at the seven depots in connection with the mis- cellaneous transportation and ticket and cash-handling duties number fourteen. British tramways, which use the uniform system of accounting adopted by the Municipal Tramways As- sociation, place all charges strictly due to the ticket system under Account No. 7, "Ticket Check," covering "cost of tickets, conductors' punches, wages of ticket inspectors, clerks in punch and ticket office, less deduc- tions from receipts from advertisements printed on back of tickets." The summary herewith shows the exact distribution of expenses under "Ticket Check" and the relationship to general revenues. "Ticket Check" does not include the cashiers. These come under Account No. 1, "Superintendence," since the cash would have to be handled in any event. Moreover, no account is taken of the depot clerks or inspectors, who would also be required under any fare system. latter is also printed, route for route, in book form for the employee to carry in his pocket. The lists are made out for weekdays, Saturdays and Sundays to show a man with a given duty (run) number at what times and places he is to report. The booklet also contains a miniature of the "rotation of duties" sheet, so that on and off days and the total hours to be worked in one week can be seen at a glance. In addition, a time-point board is also put on each car by the first motorman of the day. Bundy time recorders are installed a-mile from twelve terminals for ringing in and out. As stated in the "duty sheet" booklet, the following times are granted to motormen and conductors in addi- tion to actual time on the car, so as to allow for ex- amining the car, reporting at depot or cash office, etc. : Fifteen minute s when taking car out of depot. Fifteen minutes when taking car into depot. Ten minutes when commencing duty on route. Ten minutes when finishing.* Five minutes when relieved for meals. Five minutes when leaving or taking up a car not at meal times. Before the war fifty-four hours was a normal work- ing week, but by arrangement with the men a sixty- 60 Electric Railway Journal Vol. 54, No. 2 IjAWNSWOOD & STREET LANE. ROTATION OF DUTIES. Week ending CHAPELTOWN DEPOT. NAMES. FRIDAY SATURDAY. SUNDAY. MONDAY. TUESDAY. WEDNESDAY. THURSDAY. Total Hours. Duty. Hour?. 10 .. \i\ Duty. Houri, 10 .. Duty Hours Oil Duty Du^y. Hours 1 . . !l Duty. Hours. 1 . . ;i Duty. Hours. 1 . . fl Duty. Hours, . . !t 621 6 . II 6 1"! 2 , - M 13 . ^; Off fluty 10 .. \l\ 10 , 6 3 J, 5 1,3 . s.i on Duly 6 .. II 6 ,. 11 6 .. 11 6 .11 02,1 2 ..91 2 . . :t\ 8 . . lu 12 . . MJ 12 . n 12 . yJ Oft i)ut\ •OSj- 13 .. 8 .; 16 .. 1(1 Off Duty, 2 . , <) ' 2 . 0.1 2 . . 9i 2 91 .56f 9 lU 9 .. lOj 9 . . 91 16 .. !" 16 , 10 Off Duty. 12 . . 9J 6U 17 .. 9?, 17 • Off Duty. 5 .. n; 5 9J 9 .. 11! 9 V (ili Ofi Duty. 5 . . sj 5 .12} 17 .. 9} 17 . . 9 ). 17 .. 9J 17 . . 9! 19 9 1 Off Duty 9 .. \\\ 9 . . 1 li 5 ..9} 5 .. 9j 1 ..9 1 . . 9 1 .. t)J Off Duty. 14 .. luj 14 .. 10) 14 .. 101 7 . . JO 1 KOTATIUN OF DUTIES IN PRINTED P'ORM FOR A LEEDS DEPOT hour week has been the rule during the period of man shortage. At this writing, negotiations are in hand that will seriously modify both working hours and wages. The following additional facts may, however, be information of value and prove of interest to the American operator: Platform employees receive uniforms, great coat, mackintosh and other outer clothing free. Rest days are one in seven. One week's holiday with pay is granted after twelve months' service, but during the war if a man elected to work during his vacation he received double pay. Christmas work also earns double pay, but as that holiday is a great home-festival in Eng- land a man is at liberty to ask someone else to take his run. One and a quarter overtime rate is paid for any excess over fifty-eight hours a la 9532 CHILD'S «rWOFI(Hirs Whiu Crei- Nunro>d Carr l^-o Uft'J Lam Eittsl*ll Prmt in til UvehiUi S 2 Fourdbsv Qi 6831 1' Carr Un« L*r- H..1I Ljuie = 11 H»|i Lan* < %%% Ro»d Harcbilli- Oi*dhoi. Ud« ft' BoaidbtY T»TBjDtl» Dr 7210 amwrm on. lA week. Spare conductors or extras are guaranteed five and one-half days work out of a six-day week. As for spreads for any class of platform men — when the spread does not exceed twelve hours, a margin or off-duty period of three hours is agreed upon with no deduction for meal time. On all duties exceeding a twelve-hour spread and up to fifteen hours, a margin of two hours is allowed. On all duties exceeding a fifteen- hour spread a margin of one hour is allowed. On all duties exceeding twelve hours, a half hour is deducted for meal time. Conductors start at 5id. an hour, advance to 5|d. after six months and then to 6d. and 6Jd. in the follow- ing two years. If advanced to the position of motorman, they receive 7d. an hour for the first six months, 71 d. for the following year and Tid. thereafter. These figures are independent of the war bonus of 30s. a week, N n 1 H 1 3 1 a Ha 8313 m < H X WORtiMaN'S RtTLffiN TICKET. FAKE 14d. k 11,1 FliU L -' It''- Fn!] Lane C tirte.'jU iik&Uii J Boer Byron Wood Pc m BooDdn»y T-rSifTirK f:m.y Termini SOME VARIETIES OF LEEDS FARE RECEIPTS, INCLUDING RETURN TICKETS WITH TIME LIMITS July 12, 1919 Electric Railway Journal 61 so that the actual earnings an hour are practically double th& rates given. Platform men who have served seven years wear a chevron and receive an additional shilling a week. Platform instructors receive 3d. an hour extra while teaching. Women conductors begin at the same rate as men but are not advanced at the same rate. Their war bonus is 24s. a week. With regard to the matter of retaining women in the service, Mr. Hamilton points out that this rests largely with the employees themselves. The women are full-fledged members of the union, and they see no reason why they should make way for men unless they have failed to make good themselves. One woman conductor said: "My man was a conductor. He went into the army, leaving me with two children, and I took LEEDS Ticket Inspector's Report / CITY TRAMWAYS. Ullo Na Conduciw'i Ufi Cu FORM OF REPORT FOR USE BY LEEDS TICKET INSPECTOR his place. I arri sorry to say that he'll never come back. I wouldn't think it unfair if I had to give up this job to a tramwayman who did come back, but I wouldn't care to give it up to anybody else. I like the work and I need the money." Good Food Conduces to Good Work Strangely enough, it was not until women conductors were employed in large numbers that the management found it highly desirable to see that employees got plenty of nourishing food. Whereas the men always brought or purchased solid nutriment, the women were inclined to get along on a cup of tea and a cream puff with dire results to themselves and the duty sheets. The management consequently arranged to oifer first- class meals at a first cost of 7d. (since increased to 9d. and lOd. because of rise in food prices) . The Corporation of Leeds furnishes the necessary equipment and labor without charge: The- food is so good and so well cooked that it is regularly furnished to the officers mess. The officers pay a few pence more to get coffee, cheese or other extras. Beside these meals at the central office and depot, fully-cooked meals are sent out hot to four mess-rooms at other depots. Men on early runs are also supplied at nominal cost with hot soup purchased from the na- tional kitchens. Leeds, to be sure, is not the first elec- tric railway to supply meals at or below cost, but the Leeds management also realizes that nothing but the best will do. If other executives would eat the same meals as the rank and file, there might be less grumbling about the ungrateful platform man. A British contemporary states that in one of the in- dustrial districts of Manchester a crowd on two succes- sive nights recently stopped the tram cars to call atten- tion to the insufficient supply of liquid refreshment in the local public houses. The nucleus of the crowds con- sisted of workingmen who were disgusted at the fre- quent display of "No Beer" signs. Transporting Shipyard Workers at Quincy Bay State Street Railway Is Handling Throngs at Fore River Shipyard in Spite of Impracti- cability of Using "Split-Shift" Plan By W. B. Conant Concord Junction, Mass. THE Fore River shipyards of the Bethlehem Steel Corporation are located on Weymouth Fore River, in the city of Quincy, Mass., 4 miles more or less from the outer limits of Boston. From 12,000 to 15,000 workers are employed at the yards. About 50 per cent of the working force come from distances which neces- sitate the use of public transportation facilities. A large number live in Boston and in the suburbs to the north of the city. These use the Boston Elevated lines as far as the junction with the Bay State system at Neponset Bridge, which is about 4 miles from the plant. When the war broke out the shipbuilding company employed about 3,000 persons. Of these the Bay State Street Railway, which is the only line reaching the works, was called upon to carry 1000 to 1100. The cars ran between the plant and the central square in Quincy over a single-track road, which was totally inadequate to handle the additional load. From Quincy Square, the half-way point, the route in the direction of Boston, via Neponset Bridge, was also limited to a single track on the bridge. The condition of the roadbed and the rolling stock of this railway, which has for some time been in the hands of a receiver, made the task of hand- ling the workers one of great difficulty. With the entrance of the United States into the war, the plant at Fore River increased its force rapidly, and LOOP AT FORE RIVER SHIPYARD, QUINCY, MASS. it was apparent that a constructive plan of some magni- tude would have to be worked out in order to meet the transportation situation. A contract was entered in- to between the railway, the Emergency Fleet Corpora- tion, agent for the federal government, and the City of Quincy for the financing of the construction of a double, track, and the widening of the street between the plant and Quincy Square, a distance of 1^ miles ; for the construction of a double-track loop at the shipbuilding plant, with a prepayment inclosure; for the construction of a loop at the square; for the building of a new sub- station, and for the double-tracking of the line on the Neponset River Bridge and the establishment of a pre- payment station at Neponset where the Bay State sys- tem joins the Boston Elevated system. The company 62 Electric Railway Journal Vol. 54, No. 2 agreed to repay the funds advanced on the basis of fares collected at the terminal. About the middle of January, 1918, the double track and loop at the works were first used, and within a month the daily traffic had increased about 2000 arrivals and 2400 departures. At this time all departments of the works opened at 7 a.m. and closed at 4.30 p.m., except that many workmen worked overtime, until 6 p.m. The night force came to work at 6 p.m. and left at 6 a.m. The number of employees increased rapidly, so that on April 22 the opening- and closing hours were so changed as to spread over an hour morning and night. The change provided that certain departments opened at 7 a.m. and closed at 5 p.m., while others opened at 8 and closed at 6. The night shift began work at 6 p.m. and left at 5.30 a.m. On Saturdays, the hours were from 7 a.m. to 12 m. and 8 a.m. to 1 p.m. It Was hoped ington that it was impossible properly to handle the traffic with but one opening and one closing hour. The joint shop committee of the shipbuilding Com- pany, however, issued a circular letter to the employees in which the co-operation of the men was solicited. They were asked to take early cars for the works in the morning, to avoid later congestion which had resulted in about 20 per cent of the employees being late to work; to buy tickets in advance so as to aid ticket sellers and conductors, and to make way quickly in boarding cars and in moving inside the works gates. A card index was made up of the places of residence of the employees, showing whether they came by trolley, jitney or private conveyance, or walked to and from work. Each rider was assigned to his proper car by the proper routing. The loop at the works, which was of two tracks separated by ordinary spacing, was spread PORE RIVER SHIPYARD WORKERS ENTERING BAY STATE PREPAYMENT STATION, QUINCY, MASS. that this "split-shift" plan would help to relieve the congestion at the times of peak load. In the meantime a new rescheduling and rerouting of lines had been effected in Quincy to improve the rush- hour conditions. A new through double-track route from Neponset Bridge had been opened, and a special depot car service had been established between the plant and the New Haven Railroad station at Quincy. "Split-Shift" Plan of Operation Had TO Be Advanced Unfortunately the "split-shift" plan was strenuously objected to by the employees, who deplored the loss of the daylight hour in the evening, "when they wished to work in their war gardens." The men, too, were dissatisfied because they believed that the difficulty could be met in some other way. On two occasions a strike was narrowly averted from this cause. The shipbuilding management, moreover, held that the plan caused loss of efficiency through one crew having to wait for the coming of another in the morning, and because tasks could not be completed in the late afternoon after a part of the men had left. The departments so overlapped that it was impossible to make up separate groups of workers without a loss in efficiency and co-operation which was estimated to be equivalent to 6000 to 8000 man-hours daily. It was thus seen to be very desirable to return to the old system of one shift, and the plan was abandoned on Aug. 19, 1918, after about four months of use, although transportation experts from the Emergency Fleet Corporation had reported to Wash- so as to form a double loading space, with 8 ft. of space between tracks. A total of about sixty trips morning and evening through the loop was thus made possible. Of these cars, forty are now moved in fifteen minutes. A portion of the outgoing cars had previously started from a street area with no prepayment facilities, result- ing in a great loss of revenue to the road. These cars were brought inside a second prepayment inclosure near the main office by means of other tracks. Four cash turn- stiles and six ticket entrances were provided at the works loop, and three ticket booths were opened in the yard from which eight women of the Bay State, Boston Elevated and New Haven sold tickets every noon and evening. The cost of this service was borne by the shipbuilding company. One of the main reasons for the successful working of the "Quincy plan" is the readiness with which the shipyard workers have adapted themselves to the situa- tion. They have recognized the fact, as shown them by the joint shop committee, that it is best to subordinate personal conveniences to the general good, with the re- sult that all are better served than otherwise would be possible. In addition, the improved power situation brought about the presence of the new substation; the addition of thirty-seven new cars of the double-truck type and large capacity operated in trains, and the double-tracking of the principal routes to the yard and on the hridge have relieved a situation which govern- ment experts, and indeed the officials of the railway, had despaired of, with the single opening and closing system in effect. July 12, 1919 Electric Railway Journal 63 C. E. R. A. Cruises on Great Lakes At Meetings Held on Board S.S. "South American," Discussion Centers Around Safety Car and Relief for Electric Railway from Illegitimate Burdens AS LAST WEEK'S issue of this paper went to J-\ press the Central Electric Railway Association X X. was concluding its summer cruise from Toledo to Chicago via Perry Sound, Mackinac Island, Harbor Springs, Macatawa and Benton Harbor. Three hundred and sixty persons made up the party and every pos- sible provision was made for their comfort, entertain- ment and instruction by the committee of arrangement. This comprised S. D. Hutchins, Westinghouse Traction Brake Company, chairman ; John Benham, International Register Company, secretary; James H. Drew, Drew Electric & Manufacturing Company, in charge of enter- tainment; F. R. Coates, Toledo Railways and Light Company; H. A. Nicholl, Union Traction Company of Indiana; L. G. Parker, Cleveland Frog and Crossing Company, and H. E. Rasmussen, Indianapolis Electric Supply Company. Dr. R. C. Harpster, Toledo Railways and Light Company, served as ship's surgeon. A humorous daily, The Central Daily Spray, was is- sued during the cruise under the direction of H. H. Norris and.L. C. Paul of the Electric Railway Jour- nal staff, with the assistance of other present and former newspaper men in the party and of L. E. Early- wine, assistant secretary of the association. This served to supplement the formal program and also served to encourage informality and good-fellowship. An interesting feature of the meeting was the pres- entation to C. L. Henry, Indianapolis and Cincinnati Traction Company, and F. D. Carpenter, Western Ohio Railway, of traveling bags, in recognition of their long and fruitful service to the association. Mr. Henry cele- brated his seventieth birthday anniversary and Mr. Car- penter his sixty-ninth, on July 1. In responding to ad- dresses of felicitation the former said that the "Cen- tral" is the best association in the country, and the lat- ter dwelt upon the changes which have occurred in the industry during the time of his connection with it. One-Man Car Operation Had the Floor Tuesday Afternoon A paper on "One-Man Car Operation" was presented by S. W. Greenland, general manager Fort Wayne and Northern Indiana Traction Company, on July 1. The paper is abstracted elsewhere in this issue. In intro- ducing Mr. Greenland President J. F. Collins, vice- president Michigan Railways, said that two subjects of great importance today are one-man cars and higher fares. He said, however, that one-man cars alone can- not run a railway and that that which is needed most is organization and co-operation. The employees must be educated and this fact is just as important as the increased fare and the one-man car. In connection with the paper Mr. Greenland said that his company is planning a line extension on which only one-man cars are to be used. The track for this will prob- ably be made lighter than the usual type to take advantage of the light weight of the cars. It is expected that by fall all of the eighty-five cars in Fort Wayne will be equipped for one-man operation. He said that his company had not found the use of safety devices necessary, but their use might be warranted if neces- sary to "sell the idea" to public and employees. The discussion was opened by a communication pre- pared by F. J. Moore, general superintendent Ohio Electric Railway, and read by L. A. Mitchell, Union Traction Company of Indiana. This will be abstracted in a later issue. The next speaker was E. M. Walker, general man- ager Terre Haute lines, Terre Haute, Indianapolis and Eastern Traction Company. He outlined the experience at Terre Haute as covered in the article in the issue of this paper for June 28, copies of which were dis- tributed at the meeting. In that city the people want the whole property put on a safety-car basis. Mr. Walker expressed his disbelief in the advisability of using converted cars; both public and employees want something better than this. He favors light cars, which, he said, will prove durable with proper care. To illus- trate the truth of the principle that "service increases business" Mr. Walker cited the experience in Terre Haute where the replacing of four cars on ten-minute headway by six cars on six-minute headway brought in $35 of additional revenue per day. In reply to a query Mr. Walker said that the safety cars are adaptable to zone fare collection with the aid of a fare box. For example, on a two-zone line pas- sengers boarding in the first zone would pay one fare upon entering, those leaving in the second zone would pay one fare upon leaving, these being the only collec- tions necessary. W. S. Rodger, Detroit United Railway, said that his company is using one-man converted cars in several small cities on its system. J. M. Bosenbury, Illinois Traction System, traced The Central Daily Spray Issued for the^ Good of the Lakefarcrs On Board S. S. South American Sailing Toledo-Chicago, June 30-JuIy 3, 1919 SoE.e\7ner3 East of iUchiEran June 50, 191S THE T^ATKER TOHORRO" FOREr/ORD: TO EACH Ai:D EVERY LAKEFARER, GREETING On behalf of the officers and com- .T.ittemen of the C.E.R.A., V'ELCOI.E, THRICE v:elC0ME to our p srap etet ic( i s tlnat spelled right?) meetin? place . This reservoir of scintillit ing rit ■vili each di-V be filled to overflo.7- ing for the dciectation of you South Amerikaners on your first post-uar cruise. After President Colline.Sec- ritary Neerean.er and Chairrrian Hutch- ins have had their say(very briefly, Dind you) the entire r^raainin^ sirace (if there io any) rill be taken up with comments on the appearance of the members, sly rerr.arlc3 as to their personal characteristi cs , syeculation' as to the'"axe6 they have to grind" and other iter.is not likely to offend, Frank' That's ue all over llabie. There will be no advertisements, Heavens, No ! I ! ! Vol . 1 1 , Nc. 1. IS LIKELY TO. EE DRY A VORD FRO!: PREXY JAV.'W Kind friends through the SPRAY Ve v/elcome you today I'ay everything -Te do and cay Be pleasin' Our good ship's staunch and true There's lots of food for you And entertainment too The speeches are but fe?? So -.That more could \7e do I? J.F.C. Is Starkey.the sweet singer of Sandusky, on board? If so pipe us a tune, Joe, and .Te v;ill join In the chorus . TODAY'S PROGRAM To fill In the morning and take a reasonable amount of space in the jrrogram.the E^tecutive Comn:itteeT.e_t at 10 ^Bv-Sre^cial _ PART OF SAMPLE PAGE OF C. E. R. CONVENTION 1 >A1LV 64 Electric Railway Journal Vol. 54, No. 2 briefly the story of the modern safety car. His com- pany had been operating cars with one man since 1892, but in 1911 it became apparent that something must be done to produce a car especially suited to one-man operation. A car was designed, which, however, the local city authorities did not consider safe, but they agreed to permit its use if operation were duly safeguarded. The Westinghouse Air Brake Company was asked to co- operate. Cars weighing, at first 32,000 lb., later 16,500 lb., were placed in operation in 1913, and orders were later placed for a total of sixty-two Bimey cars. Mr. Bosenbury's experience has been that the cities demand the use of safety appliances. Safety Car Lends Itself Readily TO Standardization Following Mr. Bosenbury, the general principles of the safety car were explained by Carl H. Beck, Westing- house Traction Brake Company. Of course, said he, this car is an innovation in street railway practice or it would not be up for discussion at this time. It is suitable for use in cities of any size. Standardization has been an essential but "ticklish" element in connec- tion with its development. The new car contains so many new elements that there was an excellent oppor- tunity for standardizing in the construction of the car unit and in its operation. As a result the car has been standardized to a remarkable extent and Mr. Beck expressed the hope that the standardization will be maintained. In approaching the subject on the basis of standardizing the car unit it is necessary that the best possible obtainable unit be put on the city streets as the car must be "sold" to so many interests. Other- wise all that is possible cannot be secured from it. Mr. Beck pointed out that the "safety" car is not the "one-man" car. It is the safest unit used in any form of transportation to-day. It is necessary to prove to commissions that this is the case. For safety it is essential that the motorman should "perform some con- scious act" to keep the car in operation, that otherwise the automatic apparatus shall bring it to a stop. After going into some detail of the equipment of the car, which has been covered in earlier issues of this paper, the speaker said that the public and the employees must share in the benefits if the new type of car is to suc- ceed. If they do the result is sure. The matter of weight of car is secondary, but all of the benefit is lost without standardization. The operating men simply must get together with regard to it. Walter Jackson Gives Results of Observations at Home and Abroad The safety car and related topics were next taken up by Walter Jackson, formerly business manager Electric Railway Journal, who explained that he had visited safety car installations as rapidly as they had been made. It would seem unnecessary to argue nowa- days regarding the benefits to be derived from its use, but there are heard certain notes of dissonance which indicate that operators have not all grasped its real meaning. Referring to Spokane he said that in this city previous to the coming of the safety car, the cars in use were exceedingly heavy. This was typical of the liking of the industry for heavy cars at that time. The im- portance of developing the riding habit was not then realized. With the development of safety appliances it was possible to produce with the small car the same effects as with the long car. All of these devices save time and the small car sometimes yields more seats per unit of time than the large ones. Mr. Jackson said that in Spokane the large cars, when operated by one man, made a low schedule speed. They could, in some cases, make only one trip during the "peak" whereas the small cars could make two. It is, he said, very important to automatize the operation of the car, without which he considered the car as of the "stone age" of electric railway operation. Mr. Jack- son urged increase of business as an essential feature of safety-car operation, reduction of expenses being far from the whole story. Jitney and automobile competi- tion have brought real competition into the business. A rider in an automobile is like the lion who has tasted human flesh, he wants more. In England even municipally-owned lines cannot secure protection from bus lines, and the only remedy is the giving of service of a quality that the jitney cannot match. The speaker deplored the tendency to increase weights of safety cars, pointing out that it is not now necessary to use the same materials as entered into car construc- tion ten years ago, as better materials have been de- velepod. The question is then not how much heavier the car should be, but rather how much better it can be built. Increased weight means greater energy con- sumption, and energy is very expensive now. Mr. Jack- son said further that remodeled cars are not safe. It certainly strengthens the case of a railway, on the occurrence of an accident, if a railway can say that it has the best obtainable equipment. In conclusion Mr. Jackson discussed the fare situa- tion. Why, said he, have fare increases failed to produce the desired effect? His answer was that the em- phasis is in the wrong place; it should be on increase in service. On one property where a 6-cent fare prevails, safety cars were introduced with a 50 per cent service increase. The result is 50 per cent more traffic. In Eng- land fares have been increased more than in this coun- try and with better success, due to the wide development of short-haul traffic. The inhabitants of the two coun- tries are not substantially different, and Americans will ride for a few blocks if service is increased and the zone fare system introduced. In Aberdeen 25 per cent of the passengers ride but 0.6 mile. In Reading short- haul traffic is still further developed. In a certain town in this country the flat fare is 5 cents, but the railway is operated by a merchant as a side line and he sells tickets at Si cents each in quantity. Such reduction develops traffic. A. W. Brady Sounds a Note of Encouragement On Wednesday C. L. Henry read for R. F. Rifenberick, Detroit United Railway, a paper on "Burdens from Which We Should Be Relieved." This also is abstracted elsewhere this week. The discussion on this paper was opened by a communication sent by Arthur W. Brady, Union Traction Company of Indiana, and read by L. E. Gould, Economy Electric Devices Company. Mr. Brady said that Mr. Rifenberick had set forth clearly and forcibly a number of factors which enter into the elec- tric railway problem, but are often overlooked or receive insufficient weight even by electric railway men. The fundamental difficulty, he said, with the relations be- tween the electric railways and other public utilities on the one hand and the public on the other is mentioned July 12, 1919 Electric Railway Journal 65 at the beginning of the paper. Every student of utility problems knows that "the consumer pays the cost," but there is a large part of the public, including many of its leaders, who do not know or realize the effect of this principle. The people applaud the imposition of undue taxes, the return of excessive verdicts, the encourage- ment of unrestricted jitney competition, the establish- ment of unwrise regulations, and other similar measures, as attacks on that vv^hich the common people hate above almost all else — monopoly. They fail to see that every unfair burden cast on a utility must be paid for. Pay- ment may be made by increased rates, by reduced, or in- sufficient service, or by the checking of development essential to the growth and prosperity of the country; yet payment is always made. Even though the utility may seem at the time to be the payor, ultimately, it is the public itself that foots the bill. This is true even though the utility be pushed to the wall, for the effects of a mistaken or unjust policy in the treatment of the utilities are likely to be felt for years after the origi- nal sufferers have disappeared from the boards. That "the Consumer Must Pay the Cost" Is Increasingly Recognized In the times there are some signs to encourage the electric railway man, in spite of the unwillingness mani- fested by the voting public in some important cases to assume any part of the burdens cast on electric railways by the war. There are other indications, however, of the drift of the public mind which carry hope. The increasing of railroad, express, telephone and telegraph rates by the federal government has opened the eyes of many who once saw not. These increases were neces- sary to meet advancing costs, as was announced by the government as the reason for them. What the gov- ernment was forced to do, it recommended to the state and municipal authorities of the country that the privately operated utilities be permitted to do. Commissions have very generally adopted these recommendations to a greater or lesser extent. The public has, as a rule, recognized the fairness of the action taken, and accepted uncomplain- ingly these increases as necessary. It can safely be asserted that never before has a greater proportion of the American people recognized the principle that the consumer must pay the cost, and that if the cost be not paid in rates the consumer nevertheless must pay in some other way. It is the duty and the interest of every man connected directly or indirectly with the electric railway industry to see that this elementary yet often overlooked truth is so well known by the public that it will be acted on as a matter of course by their chosen representatives. Following the reading of Mr. Brady's letter, W. S. Rodger, Detroit United Railway, stated that on Aug. 14 of this year all electric railways in Michigan re- porting earnings of less than $8,000 a mile will be permitted to charge 2h cents a mile. When the earn- ings reach $10,000 a mile the rates must be reduced to 2 cents a mile. The rate for children will be li cents a mile and baggage will be carried free. The new rates will be under the jurisdiction of the new Public Utilities Commission of Michigan. R. N. Hemming, Fort Wayne & Northern Indiana Traction Company, then announced that from Sept. 29 to Oct. 1 the electric railway sessions of the National Safety Council will be held at Cleveland, Ohio, and urged a representative attendance. The business of the convention was purposely lim- ited in order that all might thoroughly enjoy the trip. A short meeting of the executive committee was held on Monday morning at which time the handling of mail on interurban cars was discussed and a meeting was called to be held at Indianapolis within a few days to decide upon a general plan to be presented at Wash- ington. Interurban freight and motor truck compe- tition was also taken up. At a business session on Monday afternoon the applications of eight new supply members were accepted. This brings the total supply membership to 151, the largest by two in the history of the association. On motion of Harry Reid, presi- dent Interstate Public Service Company, it was decided to send A. L. Neereamer, secretary of the association, as a delegate of the association to the Atlantic City con- vention of the American Electric Railway Association in October. Social Features Keep Everybody Happy The social program was ably handled so that none ever found time hanging heavily with nothing to do. Each evening an entertainment was held in the "grand salon." The program included moving pictures, story telling, vocal music, community singing, sleight-of-hand, a mock wedding, a lecture on some of the American battles of the great war, and local talent exhibited in various ways. The entertainment was over at ten each evening following which a dance was held in the ball- room. Moving pictures were also taken on the boat and at the various stopping places. An open air, wire- enclosed playground provided amusement for the many "kiddies" aboard. The opportunity to visit a number of points of his- toric interest was appreciated by the party. The town of Parry Sound, Ontario, was inspected briefly on Tues- day. On Wednesday morning a three-hour stop was made at Mackinac Island, and most of the members of the party visited historic and other interesting points on the island such as old Fort Mackinac, Sugar Loaf Rock, Arch Rock, etc., and otherwise passed the time in purchasing curios and other trinkets for the folks at home. Two hours were spent at Harbor Springs, Mich., on Wednesday afternoon and a short stop was made at Macatawa, Mich., early Thursday morning. Benton Harbor was reached about 11 a. m". and here special interurban cars from Indiana, Ohio and Michigan met those who wished to reach home for the Fourth. At IMacatawa Mr. Collins' private car was in waiting and took a large party, via Holland, Grand Rapids and Battle Creek, to Jackson, whence its members scattered in all directions. Many continued on to Chicago and the trip officially ended at the Municipal Pier about 4.30 p.m. on Thursday, July 3. All in attendance agreed in extending congratulations to the committees in charge of the arrangements, par- ticularly to Messrs. Hutchins, Benham and Drew on whom fell the heaviest responsibilities of the cruise and entertainment, to Chas. L. Henry, chairman of the pro- gram committee, and to Secretary A. L. Neereamer. The steamship South America proved to be well adapted to the purposes of the C. E. R. A. cruise. There was sufficient reserve in capacity to prevent crowding, and captain, steward and purser and their subordinates vied with each other to insure the comfort of the pas- sengers. Fortunately the weather was such that the voyage was unmarred by cases of sea-sickness. 66 Electric Railway Journal Vol. 54, No. 2 Burdens from Which We Should Be Relieved* Five-Cent Fare Should Be Retained Until All Possible Operating Cost Reduction Has Been Achieved By Robert B. Rifenberick Consulting- Engineer, Detroit (Michigan) United Railway THE present-day electric railway industry is of re- cent origin, and has improved so rapidly in the science of its art, that only lately has time and oppor- tunity afforded or necessity required a careful analyti- cal study of its cost of service, and of the elements that constitute such cost. This study has been brought to a scientific, logical and economical conclusion, but for political reasons government officials have not as yet wholly availed themselves of such conclusion. Un- der these circumstances it is very probable that in many instances the consumer of such service did not and is not now paying in full the cost of service re- ceived. This fact, however, in no sense impairs the logic of the axiom : "The consumer pays the cost." If the electrical railway industry is to be kept off the rocks of complete financial disaster (and it appears to be the aim of some politicians and newspapers to put it there) it is up to every member of the C. E. R. A., to every employee of all the utilities of which the industry is composed and also of all our allied industries to acquire this knowledge, then to impart it to the public without any further waste of time. The most economic basis of fare applies to the single coin, and as our national government has not as yet pro- duced a single coin of greater value than its 5-cent and less value than its 10-cent coin, we should use every en- deavor to continue as long as financially possible the 5-cent coin as the basis of a single fare. To permit this, relief from the numerous unjust burdens to which the industry as a whole is now encumbered must be had. Regulation Should Be Simplified Electric railway utilities should be relieved from the burden of being subject to and regulated by the numerous regulative bodies which now have super- vision over their various functions. Such diversified reg- ulation with the ^heterogeneous burdens imposed is necessarily expensive, and for this largely unnecessary expense the patrons pay the cost. As a natural public utility monopoly the industry should properly be reason- ably controlled, but such control should be judicial to pass upon complaints concerning the reasonableness and adequacy of rates, passenger and traffic, and to pre- scribe a uniform system of accounts. The executive and administrative duties of operation should rest in the management of the properties, subject only to such judicial rulings as above prescribed. The promiscuous, conflicting and excessively burden- some regulation under which \ many electric railway utility properties are being operated today, seriously restricts the natural development and resources of these properties and is in fact, and in some instances deliber- ately, forcing them onto the rocks of bankruptcy. Electric railway utilities should be relieved of the numerous political investigations, surveys and appraisals •Abstract of paper read at meeting- of Central Electric Railway Association, S. S. "South American," on Great Lakes Cruise, July 2. 1919. of their property to which many of them have been subjected. To my own knowledge one electric railway utility has in the past ten years been compelled to ex- pend over $500,000 and the city in which it operates has spent more than $200,000 for such purposes to no end whatsoever to date. The game of making this utility the stepping-stone to public office has been going on for twenty-five years, during all of which time the utility has continued to render to its patrons the best service the management could devise under such irritat- ing and adverse conditions. Taxation Needs Adjustment to Insure Fairness to All Electric railway utilities should be relieved from the burden of all taxes, state, county, city and national, except possibly the usual taxes on such property of the utility as is devoted exclusively to furnishing service to its patrons, namely, real estate and personal property other than foundations for tracks, and paving in public streets and thoroughfares. In the days of the horst' railway the burden of paving in and adjoining its tracks was imposed wholly on the utility. There was some logical reason for this because the horses of the company were, supposedly at least, the greatest users of such paving. However, then as to-day the best paving of the street was generally in the car tracks, which naturally drew the vehicle-using public to the use of the tracks. Thus an unjust burden was imposed on the patrons of the utility in paving requirements, which to have been equitable, should at least have been apportioned between the general public and the street railway car rider. To-day there is no reason for the continued imposi- tion of this burden on the patrons of the utility. Furthermore, vehicles other than electric railway cars should be absolutely prohibited from the use of the tracks, and such use by these other vehicles should be at their own risk and damage liability. Electric railway utilities should be relieved from the burden of paying for damages to vehicles, and for injury to persons occupying them, caused by collision with their cars, because these cars have an absolutely fixed line of travel on which they have the right of way. If the utilities, in case of a collision be- tween a vehicle and its car, would bring suit against the owner of such vehicle for damage to their property, and the court would render judgment for such damage, these unnecessary collisions would very soon disappear. Other tax burdens from which the patrons of the utility should be relieved, that are wholly in the nature of exclusively class taxation, are franchise, gross income and license taxes, which penalize the patron for re- quiring electric railway utility transportation. Another serious, unjust and expensive burden from which the utility patron should be relieved is that of free transportation of policemen, firemen and other public officials. Further, street lighting, sprinkling and street cleaning should not further continue to be a burden on the utility patron, exclusively as such, but the cost of these should also be paid from the general taxation. Electric railway utilities should be relieved of the burden of building extensions in advance of such exten- sions being self-sustaining. They should be relieved of the burden of such limited term grants, the existence of which by their very nature require the accumulation July 12, 1919 Electric Railway Journal 67 of a large amortization fund, paid by its patrons, during such limited term, to protect its investment at the end of such term. They should be relieved of the burden of carrying the mails without just recompense for the service rendered. Should Present Fares Include Provision For Ultimate Purchase op Utility? Another penalty imposed on the user of electric rail way transportation from which he should be relieved, is that of requiring him to pay a profit to the city for the privilege of being transported by the utility. That effi- cient and prudent utility management should be re- warded is a good economic policy for the consumer; but bj' what law of economics can it be sanely reasoned that A, B and C should pay enough for transportation to the electric railway utility, so that at some future time D, E, F and the rest of the alphabet should own such utility? Wherein lies the reason for placing such an un- just burden on the present generation? Each generation m.ust take care of its own social, political and economi- cal problems as they arise, but no present generation should shift such burden onto a future generation or relieve, at its own expense, a future generation from the problem that rightly belongs to it to solve. Electric railway utilities should be relieved from the burden of competition, whether from competing lines, jitneys, motor buses, or otherwise, to the end that its patron shall not be required to pay an iota more for his transportation than is economically necessary. If this statement is unsound, the proposition that a public utili- ty is natural monopoly is also unsound. It seems only necessary to bring into review the operating and finan- cial methods of a day long since passed, to prove the logic for, and necessity of, a public utility being recog- nized as a natural monopoly and being protected as such for the economical benefit of the user of its service. The electric railway utility should and must be re- lieved of the burden of the political and newspaper hazard that so often causes the utility increased operat- ing and capital expenses, for which its patrons must pay. This hazard is wholly unnecessary and unjust. Summary and Conclusions I have endeavored to outline the principal burdens from which the electric railway industry must be re- lieved if any successful attempt is to be made to main- tain the 5-cent coin as the single unit of fare. It is a grave question whether the removal only of the burdens outlined, including any which may have been omitted, will make possible the use and continuation of the 5-cent fare, but the experiment is well worth a trial. Should such trial prove that still further revenue is necessary, then must come a charge for a transfer, with this transfer charge increasing, if necessary, until it reaches a practical maximum ; and finally before get- ting away from the 5-cent fare, should come a more restricted zone in which this rate of fare would apply. In closing I would emphasize the fact that the re- pressing burdens herein outlined, have made it im- possible for the electric railway utilities to obtain capi- tal for the improvements and extensions so urgently needed to render the service required, or properly to maintain their existing properties. The limit of oppres- sion is reached. A reaction must set in that will pro- vide such just and reasonable rates of fare as will enable the utilities to exist and perform their functions to their patrons; otherwise such of our utilities as are not al- ready in the hands of receivers, will speedily land there to the irreparable damage, not only to the owner of and investors in these properties, but to the patrons of the service. One-Man Car Operation* The Author Gives Recent Data Showing That the Light-Weight Car with One Operator Is a Demonstrated Success By Sam W. Greenland General Manager, Ft. Wayne & Northern Indiana Traction Company, Ft. Wayne, Ind. THERE are 102 cities and towns in this country and Canada where 1164 one-man cars of all descrip- tions are being used. This number has increased rapidly during the past two years on account of the conditions through which our industry has passed. Un- doubtedly the one-man car is at least one of the good things coming to the industry out of this experience. The development of the art has brought us the pre- payment type of car, the light-weight motor, the fare box, the low or stepless car and the elimination of the conductor. If with these are combined the light-weight car-body and truck construction, we have the modern one-man car. This development has proceeded step by step. There seems to be no limit to the use of the one-man car, so far as the population of a community is con- cerned. Probably the smallest community in which this type of car is being used at present is Columbus, Ind., where five cars are serving a population of 3000. The largest city in which it is being used extensively is Spokane, Wash., where eighty-five cars are operated to serve a population of 135,000. The one-man car is not a "cure-all," or a car that can be operated under absolutely all conditions. There are, however, lines in almost every community where its use will improve service. Local conditions exist with all companies, which at times we feel cannot be changed, but in reality a number of these can be changed. For example, the problem of flagging railroad crossings can be solved in a number of cases by the electric railway companies paying one- half of the steam railroad companies' expenses for flag- men. In some cases, the operator of the one-man car can do his own flagging, say at railroad crossings where the use is infrequent by the steam railroad. While we all look upon the one-man car as being new, the following companies have been operating one-man cars for more than ten years: East St. Louis & Sub- urban Railway, Beaver Falls Traction Company, Hat- tiesburg Traction Company, Owensburg City Railroad, and Salina Street Railway. These companies, of course, have not had the latest type of one-man car, but have been operating the regu- lar single-truck car, designed in such a way that the entire operation is in charge of one man. On an aver- age ninety-eight companies in the country have op- erated one-man cars about three years, so that the specially designed and built one-man car has surely passed the trial or test period. There are in service as one-man-operated cars the ♦Abstract of paper read at meeting of Central Electric Railway Association, S.S. "Soutli American," on Great Lakes cruise, July 1, 1919. 68 Electric Railway Journal Vol. 54, No. 2 converted car, the Birney car, and other one-man de- signed cars. In the converted car, the saving is in the operators' wages. In the Birney car, the saving is in the reduction of power consumed as well as operators' wages. In the other t^pe of one-man cars, the savings are the same as in the Birney cars and in addition to these savings, the comfort and convenience of the pas- sengers are very much improved. In the above comparison it is assumed that the con- verted cars are equipped with platform doors, which have reduced the number of boarding and alighting accidents. Energy Is Saved in Proportion to Weight Power consumption has, of course, been one of the principal items considered in the designing of the latest type of cars. This consumption varies, naturally, with the weight of the car. Some information has been ob- tained in a typical Middle West city, where several types of single-truck cars are being operated, the en- ergy consumption being taken at the car and including only that used for motors and compressors. The read- ings obtained were as follows: Weight of car, lb. 26,900 21.000 13,500 Number and capacity of motors 2—40 hp. 2 — 25 hp. 2—25 hp. Average kilowatt-hours per car-mile 2.32 1.30 1.05 The average reduction in power consumption by all companies using the Birney type of car in the country, was 51.2 per cent. On the converted type of car, the power consumption remains the same as when the car was operated by two men. In some cases, this consump- tion has been increased, as cars have been equipped with air brakes in order further to reduce the work of the motorman. Most Companies Pay Higher Wages The rate of pay to trainmen for the operation of one- man cars varies throughout the country. A number of companies do not pay any additional amount for one- man operation; other companies pay an additional amount per hour ranging from two to ten cents. Some con.panies have found it advisable to place this matter on a percentage basis ranging from 10 to 30 per cent of the existing rate. This is governed entirely by local conditions, but inasmuch as additional duties are as- signed to the operator som.e increase in pay should be granted. Furthermore, it is necessary to have operators of a higher grade on the one-man cars, if they are to Ix" operated properly. In many instances it appears that a conductor de- velops into a m.ore efficient one-man-car operator than a motorman because he has had the general experience of dealing with the public, making change and issuing transfers. It is therefore only necessary for him to learn physically to operate the car. The motorman has much more to learn. This, of course, does not hold good in all cases. Schedules Can Be Improved with One-Man Cars With the placing in service of one-man cars it has been necessary in many instances to revise the schedules. According to reports from ninety-four companies, sixty- four have not increased the number of cars operated, while twenty have done so. Of the companies making increases in their schedules, the increase has averaged fifty per cent. Some of the increases, however, have been much greater, and in a number of cases reductions in running time of 15 to 20 minutes have resulted. It is undoubtedly necessary in most cases to increase schedules and furnish more frequent service if the full advantage of the car is to be realized. During these days, when the automobile is so generally used, more frequent service will to a certain extent be justified, because the operation of the one-man car so materially reduces the operating expense. This frequent service will assist very considerably in meeting "jitney" com- petition and in some cases it has been known entirely to eliminate it. Reports from forty-three companies show they have had an increase in earnings from the operation of one- man cars, while thirty-five companies report that their earnings have not been affected either way by such operation. It seems to be invariably true that where the converted cars have been used there has been very little, if any, increase in earnings. The greatest in- creases in earnings are snown where the new type of car has been placed in service. This is not surprising v/hen one considers the viewpoint of the public. In most cases the cars that have been converted still re- tain the same general appearance, with the undesirable longitudinal seats and high steps. Practically all that has been done has been to install additional doors and, possibly, air brakes. With the new type of car the public is immediately impressed by the low step, cross seats and other items of improvement. While this may be a purely psychological effect, the increase in earnings surely justifies the adoption of the new rather than the converted type of car. One illustration of increased earnings where the new design of car has been installed is in the Central West, where a population of 20,000 is being served by eight regular cars with a daily mileage of 135 miles per car. Formerly this system operated with the same number of cars on the same schedule, the cars being of the con- verted type with longitudinal seats and platforms pro- tected by doors manually operated. During the five months from Jan. 1 to June 1, 1919, the earnings were $40,980, or 25.3 cents per car-mile. For the same period in 1918 the earnings were $25,522, or 18.5 cents per car-mile. The increase is $15,458, or 60.6 per cent, the greater portion of which is, in the opinion of the operators of this property, due to the one-man cars of new design. Similar reports have been received from other communities. It should not be understood that increased earnings will be shown immediately when the new cars are placed in service, as there are a number of improvements that must be installed on a system where the service is frequent if the public is to be better served and all of the advantages realized. The following changes and improvements appear to be necessary prior to the placing in service of this type of car: (1) An educa- tional campaign for the benefit of the public. (2) Training of the operators. (3) The adoption of the simplest form of transfer possible. (4) The provision of change racks for the operators, where fares are other than five cents. (5) The installation of auto- matic blocks instead of hand-operated blocks for pro- tection on single track. (6) The installation of electric track switches. In considering the question of accidents from the operation of one-man cars, the relative values of the data depend entirely upon the classes of equipment July 12, 1919 Electric Railway Journal 69 operated previously. When the platforms have been protected by doors in the past, the reduction in accident expense has not been material. With the loading and unloading of passengers under the supervision of one man, the operator should be able to reduce to the mini- mum the boarding, alighting and platform accidents. Collisions with automobiles and other vehicular traffic have been somevi^hat reduced because the lighter car is under excellent, control. The employment of a better class of operators, as previously referred to, will ma- terially reduce collision accidents. As to cost of maintenance, both on cars and track, the little information available is largely an estimate on the part of the officials of the operating companies. However, with the reduction in weight there undoubt- edly will be less track maintenance. Apparently no operating company has attempted to construct its track for the special operation of the lighter cars. This un- doubtedly will be done in the extending of present tracks and in rebuilding. The one-man car has come to stay and changes in the design of track construction will follow. Cars Can Now Be Purchased on Car Trust Certificates In the total of 102 companies now operating the 1164 one-man cars, there are in service 620 converted cars, 443 Birney cars and 111 other one-man cars, so that more than 50 per cent of the present cars operated are of the converted type. This undoubtedly is due in many cases to the inability of the operating companies to secure new cars. Arrangements have been made by the car builders whereby the new type of car can be purchased on car trust certificates, with an initial pay- ment of 25 per cent. These certificates run for three to five years, the unpaid portion of the certificates bear- ing interest at 6 or 7 per cent. There is available at the present time, therefore, a plan which permits of the purchase of these safety cars on a fairly liberal basis. The weight of the one-man car has probably been dis- cussed more than any other phase of this subject and it is interesting to note that the newly designed car was built, in some instances, with a total weight of ,10,000 lb. The standard Birney car to-day, I am advised, weighs 13,500 lb. On specifications which have been recently prepared by one of the larger eastern companies for one-man cars, the weight has been placed at 16,000 lb. From the experience we have had on our system, where twenty-five of these newer type of cars have been op- erated, it is our opinion that a reasonable weight for a car of this type would be approximately 18,000 lb. The manufacturers who furnish the motors state that this is the maximum weight to be handled by their present design of motor. This weight permits of a sufficiently large platform to provide both entrance and exit doors at the front ; provides for a double floor, comfortable, reasonably wide seats, and an aisle of ample width. All of these items are of great impor- tance for the convenience of passengers. While it undoubtedly will require more power to oper- ate this car, weighing 350 lb. more than the present standard, the difference will not be serious when the question of the public's comfort and convenience is con- sidered. Therefore in designing standards it may be necessaory to have cars of two weights. Pacific Claim Agents Hold Large Meeting Automobile Accidents and Analysis of Human Nature in Making Claims Demand Prin- cipal Attention of the Association RESUMING pre-war activities, about 100 members .of the Pacific Claim Agents' Association met at the Hotel Oakland, Oakland, Cal., on June 19 to 21 for the tenth annual convention of that body. The three-day meeting was presided over by President H. G. Winsor, Tacoma Railway & Power Company, Tacoma, Wash. By way of diversion from the business meetings the members were entertained with luncheons at the Hotels Oakland and Claremont and a dinner at Canyon Inn, a theater party, a street car ride over the scenic route in San Francisco, an automobile ride to Canyon Inn and another over Sky Line Boulevard in San Francisco. The first paper read at the Thursday afternoon session was by J. H. Handlon, claim agent United Railroads of San Francisco, on "The Psychology of Claim Adjust- ment," an abstract of which will appear in an early issue. At this session a paper by F. J. Lonergan, at- torney Portland Railway, Light & Power Company, on "The Claimant, the Claim Department and the Physician and Surgeon," was read. This was followed by two papers on "Motor Vehicle Accident Investigation and Adjustment," by S. A. Bishop, claim agent Pacific Elec- tric Railway, Los Angeles, and by V. Laursen, solicitor British Columbia Electric Railway, Ltd., Vancouver. More Safety Must Be Taught "The Safety Problem" from the viewpoint of the com- panies and of the public was presented respectively in papers by Thomas G. Aston, claim agent Washington Water Power Company, Spokane, Wash., and Police Lieut. H. S. Lewis, in charge of the police traffic bureau of Portland, Ore., and occupied the attention of the mem- bers on Friday morning. A written discussion of these papers was presented by Charles A. Blackburn, claim agent Butte (Mont.) Electric Railway. In his paper Mr. Lewis remarked that, speaking generally, he had found the owner of an insured automobile to be more careless or indifferent in his handling of motor vehicles than the uninsured, for he feels that if an accident oc- curs the insurance company will pay the bill, and it is therefore no concern of his. After much study and in- vestigation of the subject of automobile accidents Mr. Lewis said he was convinced that every city should estab- lish a board of examiners for automobile drivers, and re- frain from issuing certificates until the applicants had sho\vn proficiency in handling the wheel and brakes, passed a reasonable eye test, and demonstrated a thor- ough knowledge of traffic laws. He believed this to be the foundation of any plan for the prevention of acci- dents. His conclusion from much study of this question was that traffic bureaus should be established in every city for the purpose of handling and solving the prob- lems of traffic only. The members of the bureau should be specialists in their subject and should meet from time to time with members of the traffic bureaus of other cities, in convention, or otherwise, in order that the very best results might be obtained through the interchange of ideas and viewpoints. In his written discussion of the safety problem Mr. Blackburn lamented that our great nation, leader in 70 Electric Railway Journal Vol. 54, No. 2 practically everything pertaining to the sciences and industry, is suffering annually the economic loss incident upon 14,000,000 casualties, while the public is so apa- thetic that disciplinary measures, coercion, if you please rather than education, have been found to be most effec- tive in dealing with this tragic condition. He said the trend of modern safety work as applied to the public, as well as to the employer, was in that direction. He called attention to how ineffective education had been among automobile owners, how strenuously individual owners and automobile clubs have objected to traffic reg- ulations, and how prone they are to disregard and violate not only the moral obligations resting upon them to avoid careless practices but also the statutes and ordinances enacted by the authorities. Nevertheless, the educational work must be persist- ently and methodically continued. But more must be done. The co-operation of the public must be sought, and a corrective education promoted. Every accident should serve as an object lesson and should be used as a text in training employees and the public. In no sort of industrial work, and particularly in electric railway operations, can the employment of men who are person- ally incapacitated for the work, who become negligent due to laziness or thoughtlessness, indifference, because of the monotony of their calling, or because of willful negligence, be continued. The responsibility of the railway management, he pointed out, does not end with the bare instructions and admonitions to the men to practice the safety-first prin- ciples. A man must be shown the correct way to work, and then by frequent inspection and careful observation, the management must see to it that the correct method is followed. The men must be made to understand that they must maintain a certain standard of efficiency in the matter of accident prevention, as well as in other matters, and this is about the only way to answer the question of how to keep the employees interested in the safety-first work. The end sought should be to have all •employees so imbued with the safety movement that the careful workman will insist upon his co-worker being careful and will report him (turn him in) for careless- ness just as he now turns in a report concerning a defective machine or appliance. The fear, now quite general among workmen, that if they do this they will be considered by their fellow workmen as a "snitch" or "stool pigeon," must be overcome, not alone by appeal- ing to pride and self-interest, but also through fair treatment and consideration, and by making an honest effort to correct improper efforts by other than dis- ciplinary measures. Office Suggestions — Benefits of Association On Friday afternoon, Thomas A. Cole, claim agent, Los Angeles Railway Corporation, read a paper on "Of- fice Kinks in Claim Departments," in which he called attention to the great desirability of settling as many claims as possible in the company's claim offices, saying that in that manner one man could dispose of more cases or make more settlements in one week than a field man could make in one month. He also thought that it was important that the offices of the claim department should be attractively furnished. He could not agree with the old-time idea that it was necessary to impress claimants with the poverty of the company by having dilapidated chairs, bare floors and bare walls with which to receive them. On the contrary, he felt that the of- fices should be so equipped and furnished that they would impressi the claimant with the comfort, attention and courtesy of the place, and indicate to him that the department was run in a business-like manner, and that the company had abundant resources for defense. At this session a paper was also read by Frank D. Oak- ley, attorney Tacoma Railway & Power Company, on "How to Handle Fraudulent Claims and Actions Having No Merit." This session was closed by a paper by Secre- tary B. F. Boynton on "Benefits of the Pacific Claim Agents' Association," in which he reviewed at quite some length the accomplishments of the association and the benefits derived by its membership from its activi- ties. By way of emphasizing the great importance of the safety work of the association, Mr. Boynton quoted some figures showing the tremendous toll of life taken through accidents in this country. He said that during the nineteen months of our participation in the war, while there were 56,227 American troops killed on the field of battle and in the various ways pertaining to wai activities, there were killed in peaceful America, where we have plenty, with no uprisings, 126,654 through ac- cidents. In other words, 70,427 more people were killed by accident in peaceful America in various ways than were killed in the great war, and also, during that samb period more than 2,000,000 people were injured suf- ficiently severely so that a record was made of the case. This meant that there were 220 people killed or injured every day, or one every twenty-two seconds. The Saturday morning session of the association was devoted to an open discussion of "Claim Department Problems," and this discussion was led by A. M. Lee, claim agent Northern Pacific Railway Company, Seattle. Officers Elected The following officers were elected: President, W. H. Moore, claim agent San Diego (Cal.) Electric Railway; first vice-president, Charles A. Blackburn, claim agent Butte (Mont.) Electric Railway, and secretary-treas- urer, B. F. Boynton, claim agent Portland Railway, Light & Power Company, Portland, Ore. Americanization — What Is It? The National Safety Council recently sent out a letter on Americanization, which is suggestive for the electric railways which are taking, or will take, an active part in this important movement. The letter says, in part: Americanization is not simply conducting classes in Eng- lish for foreigners, or even putting them through the ceremony of naturalization. It is much more than that. Americanization means accepting the immigrant as a brother, and in the spirit of brotherhood, helping him to understand us, our traditions, ideals, standards and insti- tutions. It is an effort to establish contacts and to provide facilities whereby he may more easily adjust humself to his new environment and become an integral part of our nation. The alien comes to our shores with great expecta- tions of enjoying the benefits and privileges of a free man in a free country. Americanization aims to help him share those benefits, and to fit him for his responsibilities and duties as a citizen. The final purpose of every Ameri- canizing influence is to instill in his heart a love for Amer- ica, so that he will desire always to remain here and serve the country of his adoption loyally, and in the whole meas- ure of his power. It is just as important for Americans to understand the peoples who come to them from foreign lands as it is for those peoples to understand us. All these foreigners who have chosen to live and labor under our flag bring more than hands with which to toil. They bring personal quali- ties, traditions, customs, ideals, new points of view, expe- rience in other forms of social organization, many of which may become valuable contributions to American culture, - July 12, 1919 Electric Railway Journal 71 Cleveland Rapid Transit Report No Rapid Transit Recommended Now — Downtown Surface Car Subways to Relieve Congestion — Unification of Street Car and Ultimate Rapid Transit a Necessary Step in Financing Tracks fot>e extended over / the new Huron-Lorain Vhducf THE report to the Rapid Transit Commission of the City of Cleveland on a rapid transit system which has been in course of preparation by Bar- clay Parsons & Klapp, consulting engineers, and di- rectly in charge of H. M. Brinckerhoff, since September, 1918, was made public last week. The general object of the report is d3fined as being primarily to suggest a means of relief for the pres- ent street railway, vehicle and pedestrian congestion in the center of the city, and second- arily so to plan this relief as to form a logical nucleus for the development of a rapid transit system for the city as it may grow in the future. As the result of their study, the engineers arrived at conclusions which may be summed up in the following ten recommendations : 1. A definite plan should be decided upon under which the city rapid transit line may be built as part of or co-ordi- nated with the city controlled surface lines, in order to elim- inate the duplication of in- vestment which would result from building competing lines and secure to the traveling- public the greatest variety of routes and transfer privileges with the lowest practicable fare. 2. The first step toward rapid transit and one which is now warranted should be the construction of subway loops in the center of the city in order to place the surface cars under ground and relieve the congestion in this district. 3. All sections of the subway should be designed of such a size as to accommodate full-sized rapid transit and interurban cars and so located that they may be- ■come part of rapid transit routes. 4. A system of subway loops in the public square should be provided and constructed in sections as re- quired to relieve the most crowded streets, such as Ontario, Euclid and West Superior avenues. 5. These subway loops in the public square should be so connected as to permit of turning cars at this point and also of running them through, since both methods of operation on the surface lines will be necessary for the best results, especially up to the time when through rapid transit can be established. A general typical diagram illustrating how this may be done is shown in Fig. 1. 6. The initial rapid transit line should consist of a central through route east and west, passing under the public square and planned to collect passengers from intersecting and branch lines of surface and other cars by transfers, so as to concentrate a traflfic of sufficient density to support a train service at frequent intervals. Provision for this rapid transit track is made as shown in Fig. 5. This main trunk line east and west should be arranged to receive branch lines to radiate southeast and southwest as the city development may require. INITIAL STREETCAR A NO RAPID TRANSIT SUBWAYS CENTER or CITY FIG. 1. SUGGESTED ROUTES OF INITIAL SUBWAYS FOR SURFACE CARS IN CLEVELAND 7. Arrangements should be made for turning back special surface tripper service short of the public square in order to induce passengers to walk outward from the districts in returning home at night, rather than in- ward toward a central point. This system, of subsidiary loops can be developed in connection with the subway when the through trunk line becomes overcrowded. The idea should be to maintain and increase capacity and speed of service to and through the main delivery dis- trict and handle the surplus by surface cars from the edges of the district. The most practicable arrange- ment will be a progressive shifting of the long-haul travel to rapid transit routes and the handling of short haul by surface cars. 8. Efforts should be made to provide further routes from the east to the west sides by bridges, and thus keep out of the central district the passengers who wish to cross the city. 9. Streets especially adapted to vehicle traffic across the city should be developed to facilitate the diversion of this kind of traffic from the congested area. By this means the necessity for part of the extensive subway construction may be postponed. 72 Electric Railway Journal Vol. 54, No. 2 10. The building of subways should be limited to the congested business districts, and other cheaper forms of rapid transit such as open cuts, elevated lines, or the use of steam and suburban railway rights of way should be resorted to whenever possible, since by such economy the development of rapid transit lines to the greatest number of outlying districts would be possible in the shortest time. In brief, the general scheme recommended for reliev- ing the situation in Cleveland is first to alleviate the extreme congestion which is now present at the public square, by in effect making the square a two-surface level, and operating some of the car lines in subway loops. As the traffic grows, one after another of these loops can be put under ground and the cars thereby re- report does not include any estimate of the expendi- ture which would be required to construct the exten- sions to the rapid transit systems (beyond the subway portion), and which in effect will be necessary before a transportation which may be classed as rapid transit will be possible. The subway construction indicated above is shown in the heavy lines of Fig. 2 exclusive of the loops, which are shown in Figs. 1 and 5. SUPPORTING DATA Population Study After considering in some detail the conditions sur- rounding Cleveland favorable to its commercial grovvd;h, the engineers arrived at the conclusion that the present population of approximately 1,000,000 people will reach 1,500,000 by 1930, and 2,000,000 not later than 1940. GENERAL PLAN FOR DEVELOPAfE/VT OF A /fAP/D TTMA/S/r SYSTEM FOR CLEVELAND Miles „ Llcva-ted or open cut or Steam or InlerurtJCJn n.K, right of way Union Terminal Go's Shaker Heigh^sLine K ^ FIG. 2 — ULTIMATE SUGGESTED SUBWAY AND ELEVATED RAPID TRANSIT SYSTEM moved from the congestion on the surface, and then when the total traffic warrants, this underground sys- tem through the central district may be connected up with a rapid transit subway extending east and west parallel to the lake. The cost of carrying out the plan, involving the con- struction of the subway loops in the public square, and the connecting subways to 22nd Street on Euclid Ave- nue, 9th Street on East Superior, the Market House on Ontario Street and the high level bridge on West Su- perior Street is estimated to be between $14,000,000 and $15,000,000, figuring costs at the present prices. The In arriving at the proper location for a rapid transit line, the engineers made an exhaustive study of the dis- tribution of the present population of the city and en- deavored to learn what the probable future distribution would be. For this study, data were collected showing the density of population for each quarter-square-mile area of the city and suburbs, the grouping of factory employees about and within walking distance of their employinent, the number of building permits issued in each of the natural sections of the city in the years 1910 to 1918, etc. The analysis of these data led to July 12, 1919 Electric Kailway Journal 73 the conclusion that the further development of the city must be looked for by a filling-up process of the vacant spaces between the various outlying residential groups along the lines of transportation, this depending largely on the development of rapid transit facilities. These residential groups and the delivery districts are so located as clearly to indicate that the logical initial rapid transit line should be laid out along Euclid Avenue on the east side and Detroit Avenue on the west side. Traffic Conditions Along with the growth in population, the total pas- sengers carried by the street railway company has ad- vanced rapidly, and in fact has practically doubled since 1907. In that year the total passengers carried were 188,192,508, whereas in 1917 there were 398,358,894. The number of fares collected per capita for 1910 was about 285, and this had increased to 326 in 1917. Of the revenue passengers about 36 per cent transfer to other lines. From the general characteristics of the Cleveland traffic, the engineers conclude that the num- 5,580 Passengers Transfer to West Side Lines at Public Square Loading Scale 0 1000 7000 5000 1 1 1 1 Distance Scale- Mil« z >A W \ \ EUCLID AVE LINC Dl^TRlBUTCsAcoOROino'Io FIG. 3— TYPICAL "ON AND OFF" CHART MADE FOR EACH OF TEN PRINCIPAL, LINES Summary of Length of Passenger Rides Average hauL Annual aa Per Cent of 1918 of Total 5,034,357 18.22 5,263,693 19.05 5,432,242 19.66 4,440,291 16.07 2,309,946 8.36 1,765,617 6.39 1,646,804 5.96 1,737,986 6.29 27,630,936 ber of rides per capita will have reached from 350 to 360 rides per annum when the estimated 1930 popula- tion is reached. This would result in the necessity to handle 525,000,000 to 540,000,000 revenue rides per annum. With a population of 2,000,000 and 370 rides per capita, there would be 740,000,000 revenue rides. It is pointed out that with a population in Cleveland now approxi- mately at the million mark, it compares about equally with the population which existed when the first rapid transit lines were in- stalled in Chi- Boston Philadel- TRANSFERS AT PUBLIC SQUARE FROM WEST TO EAST OECCMBER IZTH,l9ia sr CLAIR AVE. SUPERIOR AVE FIG. 4 — CHART SHOWING DISTRIBU- TION OP TRANSFER PASSENGERS AT PLTBLIC SQUARE 3,017 miles c a g 0 and phia. The general character of the street railway traffic of Cleve- land is into the central business district from the various residential dis- tricts and to and from the factories, much of the latter p a s s i n g through the central business district. The traffic to the central district is essentially radial, coming from east, west and south. The travel to the factories, however, was found to be largely of a crosstovra char- acter. Of this riding, a complete traffic check giving the origin and destination of passengers on ten of the principal lines of the city, and a special check on two crosstown lines, together with a classifica- tion of the transfers collected on the entire city sys- tem for a twenty-four hour period, reveals the fact that the average haul on the principal lines of Cleveland, such as Euclid, St. Clair and Detroit, is noticeably long. The report indicated this to be as high as on the prin- cipal surface lines in Chicago. The percentage of the passengers riding three or more miles is also as high and in most cases higher than either Detroit or Chicago. The Detroit Avenue line, for instance, with an average haul of 3184 miles per passenger carries over 46 per cent of its passengers 3 miles or more, and over 22 per cept 5 miles or more. The Euclid Avenue line with an average haul of 3.017 miles per passenger, carries over 45 per cent of the passengers in excess of 3 miles. The St. Clair Avenue line with an average haul of 3.122 miles per passenger carries over 44 per cent of its passengers more than 3 miles. The average haul on the ten lines checked was 2.53 miles per passenger. Estimating the haul on the re- maining lines by observation and from the city's and company's records, the engineers found the average haul on all lines in the city systems to be 2.48 miles per passenger. The average passenger journey, includ- ing the average distance ridden on transfers, for which an average fare of 5.30 cents is collected is about 3.113 74 Electric Railway Journal Vol. 54, No, 2 miles. This compares with 4.16 miles in Chicago on the surface lines for 5 cents. These Cleveland lines are only eight or nine miles in length, while on lines of similar length in Chicago the average haul is found to be from 2.7 to 2.9 miles per passenger. The Chicago lines, however, have a much higher proportion of transfer passengers, which makes the passenger journey longer. The density of traffic on the Cleveland street car lines is relatively light compared to other cities such as De- troit and Chicago. Thus the Euclid Avenue lines in 1917 carried 2,628,000 total passengers per mile of single track, as against 4,640,000 passengers for Wood- v/ard Avenue in Detroit and 3.230,000 for Halsted Street in Chicago. It is pointed out, however, that the density of traffic on Euclid Avenue is low because it has been intentionally reduced by routing car lines over adjacent streets, in order to facilitate surface car opera- FIG. 5 — PUBLIC SQUARE SUBWAY LOOP SYSTEM WITH MEZZANINE PASSAGE FOR PASSENGERS' USE IN TRANSFERRING tion and overcome the increasing delays from vehicle and other interference. The engineers conclude, from this condition, that by revising the process and feeding into Euclid Avenue a system of cars from St. Clair and Superior and other lines, the density of traffic on this thoroughfare could be increased sufficiently to pro- duce the traffic density necessary for the support of a rapid transit line. Analyzing the result of the 24-hour check on transfers, the engineers found that for the entire system 272.336 passengers used the privilege of the transfer, and of these, 79,458 transferred at the Public Square. This represented 29 per cent of the total for the city. Of the balance, 137,141, or 50 per cent of the total trans- ferred to and from the two cross-town lines, 55th and 105th Streets at various intersections with other lines. The remaining 21 per cent were distributed in relatively small groups at the various street-car transfer points throughout the city. The heaviest transfer outside the public square at a single intersection of surface lines was found to be at St. Clair Avenue and 55th Street, where 6139 passengers transferred on the day checked. The transfers at the public square are found to be broken up into a great diversity of routes, with the heaviest transfer movement from the Detroit and Clif- ton lines to the Euclid Avenue line and from the West 25th and Loraine lines to Euclid Avenue, St. Clair and Superior. The transfer at the public square is therefore seen to be principally a matter of convenience in distributing passengers to various destinations from the central point. The diversity of destination of pas- sengers on each line makes through routing from one side of the city to the other very difficult. For even if cars were run through from Euclid to Detroit, or from St. Clair to Lorain, there would still be a large pro- portion of passengers on these cars who would transfer to other diverging routes at the public square. Financing the Project Sizing up the practicability of a rapid transit system for Cleveland, the engineers point out that the difficulty which is most apparent in the whole problem is the question of cost. On account of the radiating character of the city's thoroughfares and the large number of directions in which the residential section can and prob- ably will extend, a system of rapid transit to serve the city best, must give the greatest diversity of routes into the residential sections, but financial considerations demand that the mileage must be reduced to a minimum consistent with adequate service. The concentration upon a few rapid transit lines of a large part of the passengers, with frequent transfer connections to dis- tributing surface lines, seems to offer the most prac- ticable solution in providing Cleveland with any rapid transit at an early date. The expense of attempting to reach all these outlying residential districts from the heart of the city by subway or elevated lines would be so great as to seriously delay the materialization of these facilities. If the existing street-car system, the suburban lines, and parts of the rights of way and other facilities of the Union Terminal Company are utilized in combination with city-built sections of subway in the business district, adequate service and most eco- nomical operating cost will be produced with the mini- mum investment. These considerations led the engineers to the con- clusion that a through line extending from the city limits at Laltewood, on or parallel to Detroit Avenue, passing through the public square and out Euclid Ave- nue a suitable distance east, appears to be the initial step in the development of rapid transit. The capacity of a two-track rapid transit line of this character with train operation would accommodate for many years east and west long-haul business, and would be capable of handling transfers from the north and south and other divergent lines. Additional rapid transit lines, as in- dicated in Fig. 2, would then evidently form part of later developments of the transportation system. Speaking of the initial subway construction consist- ing of loops under the public square, the engineers point to the difficulty which arises that while the construction of subways in this part of the city for use of surface cars would be very efliective in facilitating the move- ment of traffic of all classes and greatly relieving the congestion on the surface at that point, now, it will nevertheless not produce sufficient revenue to cover the charges on the new investment, although a material saving would be effected in the cost of operation. In another part of the report, however, it is stated that the advantages of such a plan to the public, should be so apparent that it should be willing to provide the necessary funds through bond issue to make this con- struction possible. July 12, 1919 Electric Railway Journal 75 Methods of Observing and Analyzing Passenger Traffic The Merits of Several Methods of Obtaining Data Are Pointed Out, Together with Helpful Advice on How to Use Traffic Study Data By R. H. HORTON Traffic Engineer, Philadelphia Rapid Transit Company TRAFFIC ANALYSIS has perhaps for its prime object the elimination of wasted effort. It should always lead to better service by having the cars on the streets when and where the people need them. A few of the points the traffic analyst looks for are: 1. Fitting the Service to the Traffic. — Too often a solid schedule is continued longer than necessary after the morning rush and is started earlier than necessary before the evening rush. 2. More Efficient Routing. — Combinations of routes are sometimes possible, to make one car do the work of two. A through routing often makes a remarkable decrease in operating expenses. 3. Decrease in- Running Time. — Increasing the schedule speed with the consequent decrease in running time is one of the most effective methods of securing economy of operation, and it also results in one of the greatest benefits to the traveling public. A factor in speeding up schedules is the elimination of unneces- sary stops. 4. Turn-Back Points. — No more cars should be scheduled to the end of a line than the traffic justifies. Herein lies one of the greatest sources of wasted effort. The proper turn-back points can be easily determined by means of a simple traffic count and this information is useful in meeting the inevitable complaint arising from the few passengers located near the end of the line. 5. Regulation of Vehicular Traffic. — A knowledge of the characteristics of vehicular traffic leads to co- operation on the part of the city authorities in securing better regulation of this traffic so as to reduce inter- ference with street car traffic. Proper regulation of vehicular traffic usually results in speeding up all classes of traffic. 6. Development of the Community. — A constantly checked industrial survey of the community is most essential to efficient street railway management. This not only tells the changing traffic requirements as to sections of the city but leads to great possibilities in building up short distance riding. Traffic analysis may be broadly divided into field work or observations, office work or compilations, and drawing conclusions or deductions. Some of the methods employed in field work are as follows: By using conductors and thus avoiding the expense of observers, some very excellent records often result, but when such work is in progress there should be an inspector or street superintendent on the line to remind the conductors of their duty, as it is sometimes found that if no such reminder is given they will be •Abstiact of paper read at meeting of the Pennsylvania Street Railway Association, Harrisburg, Pa., June 27 and 28, 1919. back to the carhouse in the evening with the blank form just as blank as it was handed to them in the morning, and when reminded by the carhouse clerk that a traffic slip should be turned in they will proceed then and there to fill it out. Naturally the data given are far from accurate. If inspired with the proper interest conductors can give very good information as to the maximum load on each half-trip. They should be supplied with a form that calls for a notation of the greatest number of passengers on the car at any one time on each one- way trip. This information is most useful in schedul- ing, as will be explained later. A similar form might be used asking the conductors to count the load at any given point or any series of given points. In this case even more particular atten- tion must be paid to the work and the conductors reminded of their duty when approaching the point of observation. In the same manner register readings may be ob- tained. From the register readings and the load on the car, deductions may be made concerning "local traffic" or "short riders." Street Corner Observations The work by trained observers usually produces the best results. We have found the trainman excellent for this class of work and he rapidly becomes quite expert in counting passengers. In the ordinary street corner observation, an ob- server is stationed at the corner to note the passengers boarding and leaving each car, and the passengers on the car when leaving. The instructions given the ob- server are to note the destination sign, block or car number, and the time, while the car is approaching and before it comes to a stop. The passengers waiting to board the car will sometimes form a compact knot of people and thus may be counted before the car comes to a full stop. Then a check may be made of the alight- ing passengers, and during the last few seconds the car is at the corner the observer is able to walk along- side and count the number of passengers on board. We have found that after about a week's work a man will be sufficiently expert so that his data may be used for work requiring considerable accuracy. On and Off Counts On the riding count, or "on and off" check as it is sometimes termed, an observer boards the car at the starting terminal and rides the entire trip, counting the number of passengers that board or leave the car at each stop. This is one of the most satisfactory methods of making a general check on a line, as it will include the maximum load on the trip, the point at 76 Electric Railway Journal Vol 54, No. 2 which the maximum load occurs, whether too many cars are operated to the extreme outer terminal, whether a turn-back point is feasible, and nearly every varia- tion of the traffic. We have found it possible to use the same form on this count as on the street corner observations, by writing in the names of the stops in the block number, direction, and destination sign columns. The work of observers is comparatively simple and requires no detailed explanation. Identification Ticket Count There have been a few attempts to count the pas- sengers by means of identification tickets; that is to tag each passenger and thus determine the point at which he entered and at which he left the car. For this purpose two observers are used; one placed at the entrance of the car and the other at the exit. The man at the entrance hands to each passenger entering a ticket which indicates either the exact point at which the passenger boarded the car or, if the line has been previously divided into traffic sections or zones, the traffic section in which he boarded the car. When the passenger alights the slip is taken up by the observer at the exit and the point or traffic section at which he left the car is indicated thereon. There have been very successful counts made by this method, one in particular on an elevated railway in which more than 99 per cent of the passengers retained the slips and turned them over in good order to the observer. This count should give all of the data obtained in the "on and off" count previously described, and in addition should show the exact origin and destination of pas- sengers on the line observed, giving an indication of the amount of short-haul riding and at which part of the line it takes place. Origin and Destination Count Efforts have been made in several cities to take a complete origin and destination count. The method, which is a further refinement of the identification ticket count, is to give the passenger a slip indi- cating his point of origin on the line, this slip to be later collected by another observer who asks the passenger to what point he is destined, not only the point on the line observed but, if he intends to transfer, to what line and to what point he is going on the line to which he transfers. There have been some very good results obtained by this method, and also some which are very much open to question, but it is so complicated and so susceptible to error that it is very doubtful if results would be secured which were accurate enough to form a basis for the consideration of any very im- portant matter. Check on Running Time There have been few systematic checks on running time, but on the Philadelphia Rapid Transit system we have just completed a very thorough check along the following lines: The check was based on the relation between stops per mile, the length of stop and the possible schedule speed of the car. This point will be discussed more fully later. Observers were sent out with stop watches and forms calling for the information indicated in the following paragraph: In the first column headed "street" the stops were listed. At each stop the number of passengers board- ing and leaving the car was noted in the column marked "B" and "L," and the column "O" was used for noting at frequent intervals the number of pas- sengers on the car. Under the heading "stops" the length of stop as determined by the stop watch is en- tered in the proper column ; passenger stops under "P" ; stops caused by vehicular traffic under "T"; stops caused by car ahead under "C" ; and stops for safety under "S." Under the heading "slows" a checkmark was made whenever the car slowed down. The check was made in the "T" column for slow-downs caused by vehicular traffic, in the column "C" when caused by car ahead, and in the "S" column when slow-downs are made for safety such as passing an intersecting street where ordinarily no stop is made. There is also a column for recording the actual time at each stop and the running time between that and the last stop. These observations have been made on every eighth car on two different days, or the equivalent of every fourth car in service. When the field work described was completed the car with the heaviest loads was selected and on this car at a later date we placed a crew to make the same observations as before, but the car was operated by an expert motormari under instructions to operate at the highest possible speed between time points and to wait at each time point and leave on the scheduled time. He was cautioned to obey all rules of the company and give due regard to safety, this being done to place a practical check on the theoretical, and knowing that the theoretical speed should never exceed that which this expert actually makes on such a test run. Analysis of Transfers Much can be learned through the analysis of the transfers used. The transfer is usually granted in lieu of a direct line, and situations may very easily develop where it is wise to sort out the transfers and deter- mine the number used at each point and the direction of the traffic, so as to be sure the transfer is the most economical manner of handling the various streams of traffic. Industrial Surveys As a matter of general information and to keep in touch with the conditions in the community, the traffic man may often find it advisable to take certain large manufacturing plants or business houses and plot on a map the address of each of the employees of such institution. We are now engaged on this work in Philadelphia for several large institutions and for the purpose have divided a map of the city into square- mile sections. Then with the aid of a street guide, we have listed alphabetically all of the streets, showing the house numbers on each street falling in each square- mile section. Thus, in using the card index of the plant, a reference to this directory will show immediately in which section the employee lives. We expect that three men should be able to plot about 2500 names a day. We have occasionally found it advisable to treat peti- tions received from associations, etc., in the same man- ner and have secured some surprising results, as we have sometimes found that a large percentage of the signers would be adversely affected by the change they were requesting. Where there are groups of industrial plants, a study of the opening and closing hours and the number of July 12, lyiy Electric Railway Journal 77 employees on each shift rewards one with much valu- able information. A study of population in connection with the built- up section of the city usually gives very interesting results. It is important that in a system of consider- able size one be advised not only of the growth of the city but the direction of that growth. These studies can be conducted through maps, either by spotting the population, which is the most common method, or plot- ting in different colors the different character of build- ings in the city and showing the growth of different sections in recent years. Office Work. In the field work as described, we have accumulated certain information as observed by conductors or ob- servers on the street showing the maximum load, the load at any one point or at a series of points. These observations are usually taken for schedule purposes as a measure of the service and traffic. Therefore, the most convenient method in which these statistics may be accumulated is to list them and show for each point of observation, in the order that the cars are operated, the load at that point. To make the data more comprehensible they should then be summarized by half hours, and it is strongly recommended that these half-hour periods be determined at the starting car at two points A and B, the reading at B being less, the register reading at A should show the number of passengers boarding in the district between A and B. The difference added to the load at A and sub- tracting therefrom the load at B will show the number of passengers leaving within this area. If the distance between the two points is not too long; that is, if it is a distance in which one would expect that few, if any, people would make their total ride within two points, an estimate of the passengers riding through may be made as follows: From the load at A subtract the passengers leaving as determined above, or from the load at B subtract the passengers boarding. This should give a fairly cor- rect figure. There are a great variety of methods which are used in the compilation of the "on and off" counts, depending largely upon the purpose for which the count was taken; that is, what particular question was to be answered. The more general method is to first accumulate the data on each observation sheet; that is, starting at the beginning of the line to determine the net of the passengers boarding or leaving the car at each stop, then take the algebraic sum of this net and it will show the number of passengers on the car at each stop. These data are then compiled into one statement, which as a rule should show the stops down 50 " 50 s 20 10 0. -fic Loa foil X Li-^ 1 IX. a/ nf - ^ -TO TAL PAS RDI 'SEN GER S I TO TAL LEi PASSEA IGEf -^5 TO) '5 S f S 'i p 5 per FIG. 3 n i I 12 IJ FIG. I FIG. 2 FIG. 1 — PASSENGERS-BOARDING AND PASSENGERS-LEAVING CURVES PLOTTED IN THE SAME QUADRANT. FIG. — PASSENGER-ON CURVE COMBINED WITH FIG. 1 DATA. FIG. 3. CURVE DERIVED FOR USE IN ESTIMATING INFLUENCE OF STOPS ON SCHEDULE SPEED terminal of the line; that is the final sheet should show for the half-hour ending at 7 :30 a.m. the number of cars leaving the terminal, the total load and the aver- age per car load on those same cars at the various points observed. The advantage of this may be more readily seen by considering the results in the case of the maximum load observations. The summary will then show that cars leaving the terminal in a certain half-hour will be required to lift a total load of such an amount regardless of the time they arrive at the maximum load point, which is really not an essential matter when considering service. What we first desire to know is how many people we are required to lift and at what time the cars should leave the terminal to lift them. Then we can get into the finer points as to where they are to be lifted and to what point they are to be carried. Register readings are usually observed for deter- mining the local traffic in a certain district or the passengers riding through a certain district. The com- pilation in the office should be a fairly simple matter with the application of a few formulas as follows: Having observed the register reading and load on the the left hand side of the sheet and the results for each separate trip placed in a column by itself and in chronological order. This, then, may be totalled across the sheet by rush-hour periods or for the total day as may be desired. A typical chart is sometimes developed from these data illustrating the conditions of the evening rush period, averaged to represent one car. The stops are laid off along the bottom to scale, and the number of passengers are laid off on the upright scale. The chart when completed shows the number of passengers on the car at every point on the line. The area of the figure inclosed by the line and the horizontal axis shows the total passenger mileage. The chart as so far described has been criticised in that it does not show the interchange of passengers at different points along the line; that is, that at a transfer point, for instance, all of the passengers on the car might leave and an entirely new group of equal number board, and the chart would show no record of this transaction whatever. This has been obviated by drawing at right angles to the horizontal axis a line showing to scale the number of passengers boarding 78 Electric Railway Journal Vol. 54, No. 2 the car at each stop, the boarding passengers being drawn above the horizontal axis and the leaving pas- sengers below. If, in the study being made, it is more important to consider this interchange of passengers, a chart similar to that shown in Fig. 1 may be used. In this case, the accumulated total of the passengers boarding the car at each stop is plotted, and similarly, the passengers leaving. The vertical distance between the two lines thus formed represents the passengers on the car. It will be observed that it more or less obscures the im- portant point of maximum load and is only recom- mended for use where the interchange of passengers is a very important factor. On important work the data of the passengers-on-car curve and of the passengers-boarding and pasengers- leaving curve may be combined as shown in Fig. 2. The objection to this latter chart is the large amount of work required for its compilation and the fact that it is apt to be complicated. With the origin and destination and identification check counts a great mass of detailed office work is necessary. It has been found that the Hollerith card sorting machines give much help. In the case of these counts there is a multitude of slips showing the origin and destination of each passenger; these data are transferred to Hollerith cards and indicated on those cards by means of holes punched in them, for which purpose special machines are provided. The Hollerith mechanism will then sort the cards out in almost any combination which may be desired. The final point to be covered is the running time check. In the field data we obtained the number of passengers boarding and leaving the car at each stop and the length of all stops in seconds. I wish to point out that in the running-time check as laid out you have with it an "on and off" check, since this is one of the most essential points observed. The first step in working out these data is to divide the line into zones or sections which may be those zones or sections formed by the present time points or others formed by points arbitrarily placed. The traffic conditions, that is, the conditions pertaining to vehicular as well as passenger traffic, should be the same throughout the zone. Then it is desired to accumulate the observed data for each zone. The form used is laid out to care for one trip and is, in fact, a summation of the observed data for each time point on that trip; that is, it shows the total number of stops, the total slow-downs and the total seconds stopped for each class of stop, with such derived data as stops per mile, slow- downs per mile, speed, etc. These data are then trans- ferred to another form so that the totals shovra on the previous form for an entire daj^'s record for a cer- tain time point appear on this sheet. Since the total number of passengers boarding and leaving has a direct effect upon the number of stops and the length of stops, we can then note from the data upon this general form the fluctuations and the time at which they take place. In a community in which there is any vehicular congestion or large numbers of passengers carried, it is a mistake to continue the same running time through- out the entire day, and these data will show conclusively the periods of the day at which more time is needed than at others. These periods are then located and a summation made of the most important points ; that is, the total number of stops, the total length of time stopped, and the number of slow-downs. It was not attempted to measure the length of time consumed in slowing down because it was not deemed practical to make an observation of this, and it was thought to be valueless unless the speed before and after slowing down could also be determined. Therefore, we have assumed three traffic slow-downs or two safety slows (that is, a slow-down at intersecting streets where no stop is made) equal to one stop. For instance, if we have a time zone in which there are five stops, three traffic slow-downs and two safety^ slows, we would have what we term seven equivalent stops. This is one of the basic factors in the derivation of the proper run- ning time for this particular zone. The other is the average length of stops. The total time stopped divided by the total number of stops (that is, actual stops and not equivalent stops) shows the average length of stop. Fig. 3 has been developed by a tedious process from the motor characteristics chart for the motor equip- ment in use and should be fairly correct for almost any 20-ton car in city service. From this chart with the stops per mile and average length of stop as pre- viously determined, we arrive at the average scheduled speed for this particular zone, and with that the proper running time. If we were to take this as the final result we would many times make grievous errors, for those intangible points of the human equation must be given exceed- ingly careful consideration. Therefore, taking the maximum conditions which might hold forth in this particular zone, that is, assuming that the car would be required to make every stop and each of a length of time equal to that found by observation, and slow down at all points required for safety, a second figure as to the scheduled speed under these conditions is de- termined from Fig. 3. This figure should be almost as much too low as the first figure might be too high. Then pick out the maximum trip under actual condi- tions and, in a similar manner determine the theoretical running time under those conditions and compare it with the actual observed. Then average the running time for all trips observed in the period under con- sideration, and finally, analyze the work of the expert motorman on his test run and compare the theoretical running time under the conditions of the test run with the actual observed. Thus we have six different figures for consideration: (1) the theoretical time under average conditions, (2) theoretical time under maximum conditions, (3) actual time under maximum conditions, (4) the aver- age actual time, (5) the theoretical time for expert motorman on test run, and (6) the actual time of the expert motorman. With these six figures, good judgment should easily determine a proper running time which can be made with safety and proper operation of the equipment. The first motor-bus ever used in Tokyo, Japan, has just been introduced. The bus weighs 1^ tons and has accommodation for sixteen seated passengers. It is capable of developing a speed as high as 12 m.p.h., which is the regulation limit in the city. A fare equiva- lent to 5 cents is collected for each section of the ride. It is proposed to order 150 more of this type of bus if it proves satisfactory. July 12, 1919 Electric Railway Journal 79 Incentive to Efficiency Is Needed Fixing of Rigid Rate of Return Limits Value of Service-at-Cost Franchises By W. C. Culkins Director of Street Railroads, Cincinnati, Oliio THE service-at-cost plan of electric railway fran- chise pre-supposes a desire upon the part of the municipal government to provide adequate street car service to its people at the lowest rate of fare com- mensurate with such service. The basic principle of such grants is that the city shall determine the char- acter of the service, and that the company may charge such rate of fare as will provide a sufficient revenue to cover operating expenses, taxes and an agreed return upon the investment of the company. Such an arrangement is so obviously fair that it has appealed strongly to both governmental and utility officials as a solution of the perplexing electric railway problem. But panaceas often carry their own dangers because they are unable to justify the miraculous re- sults expected, and practical values which really exist are disregarded in the disappointments which follow. If the service-at-cost plan is to be adopted as generally as tendencies now indicate, it might be well to con- sider its inherent weaknesses in connection with its method of application. The first and most important of these is that the fixing of a definite and rigid return on the investment destroys all incentive for the officers of the company to exercise efficiency and introduce economies in the operation of the property. Stockholders think in terms of dividends, and as long as these are produced at the maximum officials need have no fear of removal. Carlyle has said "Every man is as lazy as he dare be," and electric railway executives are no exception to this rule. There may be a very natural tendency to yield to ex- orbitant demands of employees, to be listless in making purchases, and in general to pass the buck to the city authorities in the matter of service requirements. Thus the city will be deprived of the keen cooperation of the trained and experienced executives of the com- pany, which is so necessary to the successful operation of this plan. A second difficulty, perhaps depending largely upon the first, is that while it seems a very simple process to have fares rise indefinitely with the cost of service there is a third party to be considered. This is the short-haul rider, who has the option of walking; and also, if fares become sufficiently high, the long-haul rider, who may elect to pay even more for his trans- portation by some other means than endure the in- convenience of rush-hour service at what he may re- gard as an unreasonable rate of fare. Experience has already shown that there is a point at which the economic law of diminishing returns be- gins to operate, and increases of fares no longer pro- duce corresponding increases in gross revenue. Inas- much as the fetish of the nickel has so strongly im- pressed the American mind, the danger becomes greater as the rate of fare rises above this standard, out of all proportion to the operation of the economic law as it applies to the price of other commodities besides trans- portation. If the success of the service-at-cost plan is to be measured by the extent of the departure of fares from the pre-war standards, then it obviously calls for the closest cooperation of governmental and traction offi- cials in the introduction of the highest efficiency in operation that fares may be kept to the lowest point consistent with good service. It is equally obvious that if a rigid rate of return tends to retard such coopera- tion, the opportunity to earn an additional reward would bring about the desired results. In the Cincinnati franchise a provision is included by which higher fares will always work to the financial disadvantage of the company. Whenever fares are higher than 6 cents, all of the surplus remaining after the payment of operating expenses, taxes and a fixed return to the company, is paid into a reserve fund toward the reduction of fares. When fares are 6 cents, however, the company is permitted to retain 20 per cent of such surplus in addition to its fixed return. When fares are reduced to 51 cents, the company re- tains 30 per cent of the surplus ; and when fares are 5 cents or lower, 45 per cent of the surplus. The re- mainder, in each case, goes to the reserve fund. It is believed that this provision is so simple and easily understood that were the officials of a company to fail in putting forth the desired joint effort, there Vvould be little difficulty in arousing the interest of the stockholders who were thus being deprived of the op- portunity for increased dividends. The danger that this incentive may be abused and that the company will seek to reduce expenses by im- pairment of service is obviated by other provisions of the ordinance, through which the city has reserved to itself the complete and final determination as to the character and the quantity of service to be supplied. The Cincinnati ordinance has been in effect only since last October, and the "surplus" thus far has been a minus quantity. Fares were advanced to 6i cents on July 1, and it is now hoped that this will be the maximum. The attitude of the company during this period has appeared to justify fully the wisdom of the incentive provision in the ordinance. To Arrange for Convention Transportation THE transportation committee of the American Electric Railway Association, under L. E. Gould, Economy Electric Devices Company, master of trans- portation, and Clarence Sprague, General Electric Com- pany, chairman, is now well organized. Regional chairmen have been appointed as follows : New England, R. M. Sparks, Boston, Mass.; New York State (exclusive of New York City), W. H. Collins, Gloversville, N. Y. ; New York City, Bertram Berry, New York ; New Jersey. Pennsylvania, Delaware and Maryland, N. D. Bolen, Newark, N. J. ; District of Columbia, Kentucky, Virginia and West Virginia, H. S. Newton, Fairmount, W. Va. ; Indiana, Ohio and Michigan, E. J. Smith, Detroit, Mich.; North and South Carolina, Georgia and Florida, W. H. Glenn. Atlanta, Ga. ; Tennessee, Mississippi and Alabama, F. W. Hoover, Chattanooga, Tenn. ; Texas, Oklahoma, Arkansas and Louisiana, L. C. Bradley, Hous- ton, Tex. ; Colorado, Arizona and New Mexico, F. W. Hild, Denver, Colo.; Illinois and Wisconsin, H. J. Kenfield, Chicago, 111. ; Minnesota, North and South Dakota, Iowa and Manitoba, J. J. Caufield, Minneapolis, Minn. ; Missouri, Kansas and Nebraska, J. R. Harrigan, Kansas City, Mo. ; Montana, Idaho, Utah and British Columbia, W. G. Murrin, Vancouver, B. C. ; California, Oregon and Washington, W. R. Alberger, Oakland, Cal. ; Eastern Canada, Patrick Dubee, Montreal. 80 Electric Railway Journal Vol 54, No. 2 Outline of Plan Adopted for Presenting Case of Electric Railways Before the President's Commission Statement in Behalf of Association Statement in Behalf of Committee of One Hundred The Present State of the Industry A. — Physical: Statistics based on census reports showing: (a) Miles of line (b) Miles of track (c) Number of cars (d) Employees (e) Power consumed (f) Riding habit These statistics will include a comparison between the different census years so as to bring out the retardation in the extension of lines. In addition — (h) Abandonments B. — Financial — (a) The balance sheet of the industry, in a form as nearly similar to the balance sheet of an ordinary company as it can be made, comparative for census years (b) The income account of the industry. Comparative for census years (c) Record of receiverships (d) Distribution of the securities among general public, savings, trust companies, etc. (e) Shrinkage of security market values (f) Yearly capital requirements of electric railways — (1) Refunding operations (2) New capital (g) Relation to condition of banking and trust com- panies and the general financial structure of the country Causes for the Present State of the Industry A. — Not caused by inefficient management: (a) Evolution of the modern electric railway in the matter of apparatus, methods and practice. (b) Economic development of the industry B. — Decline in the purchasing power of the nickel : (a) General (b) As affecting these elements of the cost of the service. (1) The cost of capital (a) Destruction of electric railway credit lb) High interest rates on securities (c) Failure of market for stock (2) The cost of operation: (a) The cost of labor (6) The cost of fuel, copper and lumber (c) Cost of other materials (3) The cost of taxes (a) Increase in normal taxes (6) Imposition of additional taxes (4) Replacements C. Elements of the cost of service D. Increased value for fare demanded by and given to patrons and communities — (a) Extension of lines in unroprofitable territories (b) Inauguration and extension of transfer system (c) Improvement in character of track and equipment (d) Imposts (paving, grading, bridge construction, franchise taxes, etc.) levied by communities (e) Use of money obtained from railway taxes to pro- vide right of way for competition (f) Varying cost of operation in different communities E. — Competition of motor vehicles: (a) The private automobile (D) I'ne Jitney (c) The motor truck F. — Increased physical difficulties of operation in cities: (a) Traffic congestion and its effect on schedules, acci- dent accounts, etc. G. — Restrictions put upon operation economies by authori- ties: (a) Limitation of speed (b) Veto upon skip stop (c) Requirements as to stopping places (d) Limitations on use of one-man cars (e) Limitations on short-routing of cars (f) As to proper traffic regulation Social Need for Electric Railways A. — The continuing need for urban and interurban electric railways : (a) Effect of service on the growth of cities (b) Effect of service on the growth of rural communi- ties (c) Effect of service on growth of industry and com- mercial business (d) Effect of service on social and living conditions Defects in Regulation (Applicable to cases where state authorities have jurisdiction) A. — Failure of commissions of their own initiative to pro- tect the railways B. — Long time to consider and act on cases C. — Suspension of filed schedules for lengthy periods D. — Impossibility of accurately forecasting revenues and expenses E. — Regulation should be automatic F. — Defective jurisdiction of some commissions Theories A. — Fundamentals : (a) Electric railways in Great Britain (b) Independent business men's viewpoint (c) Duty of government to electric railways (d) State regulation through commissions rather than local regulation; this does not prevent a proper degree of local control over service. B. — Public co-operation: (a) Mutuality of interest (b) Theory of principal and agent (c) Relationship of car-rider and tax-payer C. — Flexible fares based upon the cost of the service: (a) Value upon which return should be allowed (b) Rate of return (c) Franchises (d) Service at cost agreements (e) Profit sharing agreements (f) Incentive to efficient and economical management. D. — Methods of adjusting revenues to meet expenses: (a) Increase of fares through 1. Zone system 2. Flat rate 3. Charges for transfers (b) Decrease in expenses through 1. Elimination of unprofitable lines 2. Protection from competition 3. Elimination of special taxes 4. Elimination of all imposts (paving, etc.) 5. Participation of property owners, in cost of constructing and operating extension 6. Employment of operating economies (one-man cars, turn-back, skip stop, et cetera) July 12, 1919 Electric Railway Journal 81 Committee of One Hundred Ready for Hearings At Meeting of Committee on Thursday, Plans Were Announced for Presenting the Railway Case Before the Federal Commission at Hearings to Be Begun in Washington Next Tuesday — Plea Made for Holding Some of the Sessions in Cities in the Central West AN ENTHUSIASTIC meeting of the Committee of One Hundred, appointed recently by President ■L X. Pardee of the American Electric Railway Asso- ciation, to take charge of the presentation of the case of the electric railways before the recently appointed Federal Electric Railways Commission, was held in one of the rooms of the Engineering Societies' Building, New York, on the morning of Thursday, July 10. There was a representative attendance. Gen. Guy E. Tripp opened the meeting shortly after 10 o'clock and announced that the sub-committees ap- pointed at the previous meeting of the committee had been organized and had prepared reports for submis- tion to the full committee. He then called upon Joseph K. Choate, chairman of the committee on presentation, to give the plans adopted by that committee and ap- proved by the executive committee for presenting the case of the electric railvv^ays to the commission. The plan, which Mr. Choate said was tentative, covered the points which the electric railways hoped to prove to the commission. The plan is published on the opposite page. Reports of Subcommittees In continuation, Mr. Choate explained that the com- mittee was collecting data and would arrange with dif- ferent witnesses to present testimony on the points mentioned in the program. He added that Bentley W. Warren of Boston had been selected by the committee as its general counsel and that Thomas Conway, Jr., Ph.D., of the Wharton School of Finance, Philadelphia, would assist in the presentation of the case. Tuesday, July 15, has been designated by the commission as the date of the first hearing, and it was understood that the hearings will be held in the hearing room of the Interstate Commerce Commission in Washington and will be continued each day until the case is closed. The plan of holding continuous hearings has been adopted for the purpose of reaching an early decision in the matter. Mr. Choate said that the program as given covered only the line of testimony for which the association was responsible. He added that he understood the Com- mission did not expect to take up cases presented in in- dividual cities but only the broad aspects of the ([uestion. Upon motion, the report of the committee on presen- tation was accepted. On being asked to present the report of the committee on recommendations, O. D. Young, vice-president Gen- eral Electric Company and chairman of the committee on recommendations, said that the committee obviously could not present a detailed report of its recommenda- tions until after the testimony had been presented. B. C. Cobb, New York, then reported for the com- mittee on information and service. He explained that the committee expected, among other things, to report the sessions adequately and to prepare daily abstracts of the most important data presented for the benefit of the press and others interested, and that copies of these daily abstracts would be mailed to all railway companies. Samuel Insull suggested that it would be very desir- able to have some of the meetings of the Commission held in the Central West, if that were possible, and the chairman was authorized to appoint a committee to confer with the commission to learn whether this could be done. H. L. Stuart, of Halsey, Stuart & Co., chairman of the committee on finance, then made a verbal report on the expenses of preparing and presenting the case of the electric railways and urged that the committee receive the support of all electric railway companies, the manufacturing interests, and others concerned with the prosperity of the electric railways. Mr. Insull then suggested that other groups of public utility organizations be invited to co-operate in the presentation of the electric railway case. He thought that the fundamentals in the electric railway case ap- plied to the gas, water, electric light, and power in- dustries. The plan was approved by other speakers, and on motion was adopted. Good Attendance at Hearings Desired In conclusion. General Tripp urged all members to assist the committee by suggestions and to attend as many of the hearings before ^he Commission as possible. The committee then adjourned to meet in Washington at the first hearing and will meet each day until the Association's case is complete. Association headquar- ters will advise all electric railway companies of the dates set for the hearings and urge executives to attend as many of the hearings as possible, it being important that the industry manifest through its representation at the hearings its interest in and support of the work of the commission. Hydro-Electric Development Plans THIRTY-THREE municipalities covering a territory about 75 miles in length with tovras extending from Southampton to Wingham and across to Mildmay, organ- ized as The Associated Municipalities of Northwestern Ontario at a meeting called at Port Elgin by the local Board of Trade on May 8. The principal object in view is to secure electric power for the district included from the Provincial Hydro- Electric Commission. A resolution was adopted request- ing the commission to proceed at once with the develop- ment of power on the Sapgeen River and that the south- ern portion of the territory should be at once supplied from Eugenia Falls. The meeting also strongly favored the electrifying of the railroads and radial construction to serve the district. The following officers were elected: Chairman, H. H. Stevens, Port Elgin ; vice-chairman. Mayor Gurney, Wingham; secretary -treasurer, E. Roy Sales, Port El- gin; executive committee, W. J. Greer, Wingham; J. J. Hunter, Kincardine; Reave Steele, Paisley; Fred Lip- pert, Walkerton; J. A. Constantine, Ripley; R. Johnson, Lucknow, and A. McLean. 82 Electric Railway Journal Vol. 54. No. 2 Rehabilitating: Track Joints with an Arc Welder Union Traction Company of Indiana Builds Up Joints in Paved Streets by Reversing Joint Bars and Inserting Plate Under Joint THE accompanying photographs show the method used by the Union Traction Company of Indiana, for repairing in paved streets track joints which have become badly worn and out of surface. The first illustration shows the joint before any work had been performed. It will be noticed that in addition to the bad rail joint the working of the rail ends has loosened the paving. In the second view the bricks have been removed and the joint bars are shown to be worn under the head of the rail so as to leave a space of about J in. between the rail head and the bar. This makes it impossible to tighten these bars successfully. The bars, which are continuous joints, are therefore removed, the base is sheared off and the bars are re- placed with the base under the head of the rail as shown in the third illustration. Two bolts are used to draw the bars tightly under the rail. The rail is then loosened from the ties and a steel plate, 1 in. thick, the joint is ground to a smooth surface to remove any possibility of pounding. The last illustration shows the joint after the brick has been relaid and, the grinding done. This method of rehabilitating joints obviates the necessity of bonding and has been employed on 6-in. and 7-in. rail with very satisfactory results. Joints of this type have been in use on interurban track for a year and a half and are still in excellent condition. The cost of the work has varied from $6 to $9 per joint, depending on the condition of the ties, whether or not the joints were laid opposite, and how badly the rail ends were split or broken. EuiMing Up Flat Spots on Wheels and Re- pairing Worn Axle Collars by Welding IN THE DISCUSSION which took place following the presentation of the report on "Welding Truck Side Frames, Bolsters and Arch Bars," at the June con- vention of Section III, American Railroad Association, mention was made of the great saving which results from building up the collars on axles and filling in flat spots on cast steel and rolled steel wheels by welding. 1. A bad joint before re- habilitation. 2. Paving removed show- ing wear on joint bars. 3. Bars are inverted and welded to head and base of rail, and steel plate is welded on base. 4. Rehabilitated joint af- ter building up and grinding. METHOD OF REPAIRING BADLY WORN TRACK JOINTS 6 in. wide (for a rail base of 5 in.) and 24 in. long, is placed under the base extending from tie to tie. The ties are adzed for a good bearing surface if they are sound, otherwise new ones are installed. The entire joint is brought to a good surface, thoroughly tamped, and the bolts drawn as tightly as possible. An electric arc welder is used to weld the joint bars to the head of the rail, using as a shoulder the portion of the base that was not sheared off. The lower part of the splice bar is welded to the base of the rail, which in turn is welded to the 1-in. plate on which it rests. A soft grade of welding steel is used for this purpose. At most of these joints the head of the rail is more or less cupped, in which case this is filled with hard steel by the same welder. After relaying the paving, In connection with the building up of axle collars it was stated that where the collars are built up sim- ply to prevent excessive lateral movement, the welding process does not materially affect the strength of the axle. Several prominent railway men stated that they had reclaimed many axles by building up the collars, and that with the prices of axles as they are to-day such a process is a source of great saving. Railway officials also spoke of the satisfactory re- sults they were obtaining in building up flat spots on wheels by electric welding and stated that if the flat spots are properly cleaned off and cut in around the edges before the weld is made, rather than applying the metal direct to the top, no trouble is experienced with with the electric welding process. Mr. Dickson, master July 12, 1919 Electric Railway Journal 83 mechanic Oregon Electric Railroad, said that his com- pany has been welding flat spots successfully by the electric process. He finds the best material to use for filling-in to be cuttings from steel-tired wheels. Some diflRculty was experienced when other material was used. Double-End Pay-a£-You-Pass Cars fqr Gary TEN double-end Peter Witt cars were recently de- livered to the Gary (Ind. ) Street Railway. The bodies are mounted on Brill 77-E-l trucks. As was ex- plained in detail in previous issues of this paper, the design provides for the handling of large crowds during rush hours and for preventing delays in loading as well as for getting the passengers away from the con- gested points very quickly. As the conductor is sta- tioned in the center of the car body the entire front half of the car serves as a loading platform. Only those passengers who pass the conductor to get to the rear of the car pay their fares upon entering. Those in the front section do not pay until they have reached their destination. NEW CAR FOR GARY (IND.) STREET RAILWAY READY FOR SERVICE The new equipment is constructed for double-end operation with entrance doors located at diagonally op- posite corners. Exit doors are provided on both sides of the car at the center, one set of these being locked when the other set is in operation. The space directly in front of the doors is provided with hinged seats which can be raised out of the way when the doors are in use. The side construction of the car body is of semi- steel with plate-girder construction. The girder con- sists of a steel plate riveted at the bottom to the angle- steel sidesill and at the top to a flat-bar steel belt rail. The side posts are of T-section and the letter panel is of pressed steel. In addition to the angle sidesill the underframe is constructed of commercial steel shapes throughout. Two special features of these cars are the Brill Renitent side posts and the automatically placed win- dow screens. This post is made up of a casing of spring brass attached to the T-section side post by means of clips fastened to the casings and fitted into the stirrups riveted to the post. The casing offers elastic resistance to, the pressure of the sash and makes the contact wa- tertight, preventing warping of the sash. The sas'i may be removed without tools, is interchangeable be- tween windows and when raised will not drop suddenly if released. An iron wire screen of 2-in. diamond mesh is fitted to the bottom rail of each sash and when windows are shut the screens are inclosed in pockets formed between the outer steel sheathing and the inner finish below the belt. By this arrangement when the sashes are raised the window screens attached to them are drawn up and automatically close the window. A signal light gives the indication to the motorman when the center doors are closed and the car may be started without danger of accidents. Some of the general dimensions of the car are : Length over all 48 ft. 1 in. Extreme width 8 ft. 4 in. Height from rail to top of roof 10 ft. 8j in. Width of center door opening 5 ft. 6 in. Seating capacity 51 passen^rrs Truck wheelbase 5 ft. 4 in. Truck centers 22 ft. 3? in. Diameter of wheels 26 in. The electrical equipment furnished with these cars consists of GE-258 motors and GE-K-12 control. The INTERIOR VIEW AND SEATING ARRANGEMENT OF NEW GARY CAR motorman's door signal and the door and step operating mechanism is furnished by the National Pneumatic Company. The Ohio Brass Company's trolley base and trolley retriever is used, and the heating equipment is of the Consolidated Car Heating Company's type. The cars were built by the G. C. Kuhlman Car Company, Cleveland, Ohio. Theory and Practice in Electric Welding In the London Electrician for May 28, 1919, H. S. Marquand describes some power sets for the supply of energy for arc welding and makes a brief comparison between direct and alternating-current processes. He states that the direct-current process should be used where possible but that the alternating-current system is satisfactory where proper skill in the operation is used. In a previous article in the May 2 issue Mr. Marquand gave information relating particularly to wire welding. The preparation of the work, regulation of the current and the power necessary for making resistance welds was described. News of the Eledric Railways FINANCIAL AND CORPORATE • TRAFFIC AND TRANSPORTATION PERSONAL MENTION Progress in Detroit Agreement to Study Service-at-Cost Plan — Preparing for Fare Arbitration At a recent meeting of Mayor Cou- zens, the Street Railway Commission and the City Council of Detroit, Mich., the Council agreed to study the Tayler plan as it is in effect in Cleveland, and then discuss a plan for the city of Detroit with executives of New York rapid transit lines. This conference with the New York experts has been arranged for July 18 at Detroit. Mayor Still Favors Competition Mayor Couzens did not oppose the plans as decided upon, although he is apparently still in favor of a bond issue to build subways under downtown streets and obtain trackage to operate in connection with them. The Mayor's explanation that he meant that the Council had surrendered to the com- pany "in the interest of peace and har- mony" and not that he considered that they had received any political or monetary consideration when he made the charge that the Council had sold out "body and soul," was accepted by all parties concerned. The Mayor's contention that no rapid transit system should be planned until its future re- lation to the surface lines had been determined was backed by extracts read from the report of Barclay Par- sons & Klapp. In the Mayor's opinion the subway system itself could not be self-support- ing. A unified system of transporta- tion combining subway, surface and overhead systems was necessary to provide satisfactory service and prove a financial success. He also set forth that it would not be possible for the city under its pres- ent charter to finance both the con- struction of rapid transit lines and the purchase of the surface systems. Commission Against Competition Various members of the Council agreed fully with Abner E. Larned when he stated that the Street Railway Commission, of which he is president, believed it proper to enter into a part- nership agreement with the existing company. He said the commission did not favor the piecemeal construction of competing lines. At a special meeting of the Council on July 3 William H. Maybury, former commissioner of public works, was chosen by the Council to represent the city on the board of three arbitrators to determine the justice of the claim of the railway of the necessity for a 6-cent fare. Councilman Lodge ar- gued that little time remained before July 10, the date set by Judge Marsch- ner's court order, in answer to conten- tion by some of the members of the Council that the Detroit United Rail- way should appoint its member of the board first. The Mayor has not yet ap- proved the appointment of Mr. Maybury. The Detroit United Railway has an- nounced the appointment of John J. Stanley, president of the Cleveland Railway, as arbitrator for the com- pany, and at Mr. Stanley's suggestion the names of several men have been proposed from whom the third member may be selected. None of the men named, however, appears to meet whol- ly with the approval of the members of the Detroit City Council. Two accountants will be appointed by Corporation Counsel Clarence E. Wilcox, to make daily examination of the railway's books and I'eport to the city's arbitrator. The company's fig- ures will be furnished to the company's arbitrator for the same purpose. Wage Adjustment Near at Wheeling The wage disagreement between the Wheeling Traction Company and the West Virginia Traction & Electric Company and their employees has been partially settled, according to an official announcement. The annual wage scale has been signed by both factions for the electricians and firemen without the assistance of the arbitration board. The wage scale of the platform men and the engineers is still unsigned, but it is anticipated that an agreement will likely be reached between the com- panies and the union within the next few days. The scale for the inside electricians has not as yet been signed. The scale signed affecting the two crafts gives the men a substantial in- crease and more satisfactory working conditions. The water tenders receive an advance from $4.15 to $4.65 a day of eight hours; ash wheel and coal passers from $3.36 to $3.80; firemen from $3.56 to $4.10. Thus far an effort to agree upon the third member of the arbitra- tion committee has been unavailing. The old wage scale of all the crafts affiliated with the railway workers' union involved in the disagreement ex- pired on May 1, last, followed by a one-day strike. The men returned to work after they and the officials of the companies had agreed upon placing the disagreement in the hands of an arbi- tration board composed of three mem- bers. For the past several weeks both sides have suggested a number of men as the third arbitrator, but no selection has been agreed upon. Pittsburgh Plans Subway $6,000,000 Appropriated at Election for Constructing Loop for Surface Cars in Downtown Section The voters of Pittsburgh, Pa., on July 8 authorized a $6,000,000 bond issue for the construction of a down- town subway loop. The money for the loop subway, which has long been talked about, therefore is now available. Just what the city will do with the fund is not certain. The question submitted to the voters did not specify particu- lars of construction, except that the tube is be located in the two downtown wards and be built to specifications to be drawn up by the Mayor and Council by ordinance. Double-Track Loop Line Tentative plans prepared by city en- gineers and used in the campaign pre- ceding the special election, provide for construction of an underground loop approximately IV2 miles long. This is planned as a downtown terminal for a majority of the surface lines of the Pittsburgh Railways, to which it is proposed to lease the tube. The subway, according to the ten- tative plans, is to be double-tracked, traffic to be in the same direction on both tracks, every car using it to make the whole loop. Four portals are planned, at which surface cars will pass in and out, and six loading plat- forms. It is not planned at first to route cars from the northside section to the city through the subway. While the whole project is based upon the assumption that the subway will be leased to the Pittsburgh Rail- ways, no agreement has been entered into with that company as yet, and as far as is known its officials have not been approachable in the matter. The lines of the company are being oper- ated by receivers now. Construction to Start Soon While it appears the city plans the subway terminal as a start toward a more extensive underground traction system, it has been put forward pri- marily as a means of relief from con- gestion in downtoviTi Pittsburgh. Con- struction is expected to start within sixty days. With the subway bond item, there were presented to the voters at the special election six other improvement items, the whole issue totaling $22,000,- 000. All were approved. Most of this sum will be spent in street widening and bridge building, with the same aim as actuated the initiation of the subway proposal — relief of congestion. July 12, 1919 Electric Railway Journal Twelve-Cent Wage Advance in Cleveland Short Strike Ends with Full Compliance with Men's Demands and Arbitration of Company's Main Counter Demand Motormen and conductors of the Cleveland (Ohio) Railway walked out at 4 a.m., on July 6, because their demand for an increase of 12 cents an hour in wages was not granted when they thought it should be. They had threatened to strike some time before. The final decision was made when the company's officials refused on the pre- vious afternoon to yield unless the City Council granted the company the right to pay stockholders an additional 1 per cent on their holdings, as requested when the question of an advance for the men was presented. Company Prepared to Operate The company sent out a number of cars Sunday morning manned by dis- patchers and inspectors, but quickly withdrew them on account of lack of police protection. J. J. Stanley, president of the com- pany, afterward informed the city au- thorities that 600 men were ready to man cars on the morning of July 7 if the police department would furnish two officers for each car. Mayor Harry L. Davis said the police department did not have a sufficient number of men to do this. He insisted that the company should operate cars and allow its claims to be considered later on. An advertisement appeared in the newspapers Sunday morning asking for men and women as motormen and con- ductors. The wage scale offered was 49 cents for the first three months, 52 cents for the next nine months and 54 cents thereafter. This is an increase of 6 cents an hour over the scale that has been in efi'ect. It is said that the number of responses to the advertise- ment was very satisfactory. Council Seeks Solution The Council sat as a commission of the whole on the afternoon of July 5 for the purpose of devising some means of averting the strike. It was decided to make an additional appropriation to the operating expense to cover the in- crease of 12 cents an hour for the motormen and conductors and other em- ployees, but the request for an addi- tional 3 cents per car-mile for the main- tenance fund and for a 1 per cent in- crease in the return on the investment was refused. Mayor Davis approved the refusal to pay a higher return than 6 per cent on the value of the property as fixed in the Tayler grant, under which the company operates. The com- pany then refused the appropriation for increased wages. President Fred F. Telschow, secre- tary W. M. Rea and Business Agent Fred J. Schultz, representing the men, met President Stanley on the afternoon of July 5, but after the conference an- nounced that no conclusion had been reached. Mr. Stanley made the same announcement and added that he had instructed George L. Radcliffe, general manager, to operate all the cars he could the following day. The resolution adopted by Council, giving an additional appropriation for the employees, contained a condition that 1 cent per car-mile instead of 3 cents should be added to the mainte- nance allowance. In the discussion of this amendment, members of Council suggested that the request for an addi- tional 1 per cent return on the invest- ment be submitted to a vote of the electroate. Mr. Stanley informed Coun- cil that he would not agree to this unless the question of an advance of 12 cents in wages for the motormen and conductors be submitted to a vote at the same time. He expressed the opinion that the advance in wages and the extra 1 per cent dividend could be paid from the receipts under the present rate of fare, which is 5 cents and 1 cent for transfers. He said, however, that if wages went any higher than the 12-cent advance, the present fare would not be sufficient. An offer of an ad- vance of 6 cents an hour was made to the men, with the stipulation that if this was accepted the demand for an additional 1 per cent return to stock- holders would be dropped. The men refused this offer. They stated that they would accept nothing less than a 12-cent raise. On July 6 the rate of fare was re- duced from straight 5 cents and a 1- cent charge for transfers to eleven tickets for 50 cents. This followed a demand made by Street Railway Com- missioner Fielder Sanders, although Mr. Stanley informed Mr. Sanders that the reduction in fare seemed unwise when everything pointed to an increase in fare to 6 cents becoming necessary within a few months, if all the demands made upon the company were granted. The interest fund is now more than $700,000, and this sum, according to the Tayler franchise, marks the point where the rate shall be reduced. Ex- isting conditions point in the other di- rection, but the company concluded to follow the agreement. Settlement Reached At a conference of representatives of the company, the Chamber of Commerce and the City Council, on the afternoon of July 7, Mayor Davis proposed that the demand for an additional 1 per cent in dividends be submitted to arbitra- tion. Mr. Stanley said that if the city would promise to make an effort to pay the additional dividend, he would grant the demands of the men for an increase at once and then, if the divi- dends were not increased within a reasonable time, he would reduce the wages 6 cents an hour. The members of the Council refused to entertain the Mayor's proposition. A settlement of the strike was 85 reached on the night of July 7 in time to put the owl cars into operation shortly after midnight. Operation on full schedule was begun on the morn- ing of July 8. The agreement was reached at a spe- cial meeting of the City Council, at which Mr. Stanley and other officers of the railway. Street Railway Commis- sioner Fielder Sanders, Mayor Harry L. Davis, President Paul L. Feiss of the Chamber of Commerce and officers of the local branch of the Amalgamated Association were present. The terms of the agreement are: That the company shall grant the men an increase of 12 cents an hour in wages, as had been demanded ; the contract to continue for one year from June 1. That the company shall receive an in- crease in the operating allowance of 3 J cents per car-mile ; and increase of 2 cents in the maintenance allowance ; that the war-time emergency amendment to the Tayler grant providing that the maximum rate of fare shall be 6 cents with 1 cent for transfers be made a permanent part of the franchise, and that the demand for an increase of 1 per cent in dividends to stockholders be submitted to arbitration. The agreement was brought aboitt through correspondence between the company and Mayor Davis and between the company and President Feiss of the Chamber of Commerce. Members of Council changed their minds in re- spect to the suggestion of Mayor Davis that the matter of additional dividends be arbitrated. Wages under the 12-cent advance will now be 55 cents an hour for the first three months, 58 cents for the next nine months and 60 cents thereafter. The Chamber of Commerce officials suggested arbitration of the wage ques- tion on the ground that their contract provided for arbitration of all differ- ences, but the executive committee of the local branch of the union refused, advancing the old excuse that there was nothing to arbitrate. Mr. Stanley yielded his contention for the removal of the maximum fare limit fi'om the franchise and accepted the extension from 4 cents and 1 cent for transfers, as provided in the original franchise, to the war-time maximum of 6 cents and 1 cent for transfers. $960,000 Wage Increase The increase for the motormen and conductors will entail an additional expenditure of about $960,000, while a proportionate increase for the other employees will require about $500,000 more. The present rate of fare of eleven tickets for 50 cents will prevail until the interest fund drops below $300,000, when it will again go to 5 cents with 1 cent for transfers. It is believed this will occur within a few months, with the increased expendi- tures, dating from June 1. Interurban cars were run to the city limits only during the strike. An agree- ment, apparently, was reached between the city and interurban men that no cars should be operated on the city tracks. Some of the interurban roads arranged to transport their passengers within the city in buses. 86 Electric Railway Journal Vol. 54, No. 2 Tri-City Strike Averted Company at Davenport and Employees Reach Agreement Based on Action in Pending Fare Cases After nearly two months of negotia- tions the Tri-City Railway, Davenport, la., has averted a threatened strike of 425 trainmen and shopmen by granting an inci-ease in wages, a nine-hour day and giving the men the right to open up the wage question on Aug. 1, if an increase in fare is granted on the com- pany's Iowa and Illinois lines by that time. The settlement was reached without arbitration after the company and the men had appointed arbitrators and were ready to submit their argu- ments to the findings of a board. A Fifty-Cent Maximum The new scale is 46, 48 and 50 cents an hour, retroactive to June 1, the date when the old contract expired. The men have been working during the war on a scale of 36, 38 and 40 cents. The war-time scale superseded the contract scale existing at that time, which specified 28, 29 and 33 cents an hour. If a 7-cent fare is granted, either party can ask for a revision of the wage scale on Aug. 1. Should a 6-cent fare go into force prior to Aug. 1, the scale will be 42, 44 and 46 cents, with either party having the right to ask for a revision as in the 7-cent clause. If this new scale is fixed after Aug. 1 it is to be retroactive to that date. If no increase in fare is granted the scale is to drop to 36, 38 and 40 cents an hour, with the provision that either party can ask a wage revision at any time. Time and a half will be paid for overtime. This is the agreement for Davenport, 111., and the Clinton, Davenport and Muscatine interurban lines. In the city of Muscatine, where one- man cars are in operation, a scale of 43, 45 and 47 cents goes into eff'ect at once, retroactive to June 1. If a 6-cent fare is granted in Muscatine the trainmen get 39, 41 and 43 cents, and if no increased fare is given wages will drop to 35, 36 and 37 cents. Sepa- rate contracts were entered into with the Amalgamated Association, meaning that if diff'erent fares are granted on the Iowa and Illinois lines the rate of pay to the men will be different. Sixty-two Cents Asked Originally In their original demands the men asked for a scale of 58, 60 and 62 cents an hour. Negotiations were opened on May 5. The company and the men reached a practical agreement on all questions except wages within a few weeks. Both sides wished to arbitrate that question, but the men demanded that the company arbitrate according to their stipulations and passed a strike vote when the company officials demurred. The company then agreed to the men's stand to avert a tie-up in Davenport, la.. Rock Island, Moline, East Moline and Silvis, 111. Richard Schaddelee, Grand Rapids, Mich., vice-president, was then ap- pointed the company's representative on the arbitration board and the men chose Mayor Robert McNutt of Musca- tine. When the case was all ready to go before the arbitration board, with the provision that these two men were to select a third in case they could not agree, the company officials, with their fare increase at stake both in Iowa and Illinois, decided to accede to the de- mands of the employees and signed with the union. The union agreement and its stipulations were publicly an- nounced on June 29. Another Strike in Windsor Failure to Approve Fare Increase Results in Suspension of Service in Canadian Cities The by-laws to authorize the Sand- wich, Windsor & Amhurstburg Rail- way, Windsor, Ont., to charge higher fares was defeated by a large majority in the vote in Windsor and Walker- ville on July 5. The defeat of the measure was attributed by company officials to the attitude taken by Sir Adam Beck, chairman of the Ontario Power Commission, who in opposing the measure contended that the grant of a higher fare by the voters would enhance the value of the franchise held by the company. It was evident that the defeat of the measure for increased fares could result in nothing other than a second tie-up of transportation in the territory served by the railway, as the company was unable to meet the demands of its employees without the right to collect higher fares. The strike which went into effect on July 7 again tied up the lines in the border towns. The original demands of the men have been increased to 50 and 60 cents an hour, depending upon the length of service. The Council of Windsor will notify the Ontario Municipal Railway Board that the border municipalities are with- out railway service. Mayor Winter of Windsor is quoted as saying that fur- ther dickering with the company and the men is useless, as evidenced by the results of the attempts to settle the former strike when service was sus- pended for eleven days. It is believed that the railway board will ask the Council to grant an in- crease in fare for six months, and that this action could be approved by the Council without approval by the elec- tors, regardless of the large majority vote cast against the fare-increase measure by the electors at the election on July 5. No statement has been made by the railway officials as to what action vnW be taken in case the railway board takes over the lines, but the officers of the railway have said emphatically that the cars will remain in the car- houses until the employees return to their duties. Working for Relief Attempts Before State Legislature to Ease Electric Railway Burdens in Massachusetts The committee on street railways of the Massachusetts Legislature has been at work lately on measures for the re- lief of the financial situation in which the companies, generally, find them- selves, and is about to introduce two measures into the Senate for considera- tion during the present session. One of these will provide that elec- tric railways not under public control are to be relieved of all present taxes, except those on real estate, and in place of these taxes to substitute a tax of 6 per cent no the net income. The second measure provides that changes in fare by electric railways shall be effective pending a decision of the Public Service Commission as to their propriety. The committee endeavored to intro- duce into the House a measure provid- ing for the purchase by the State of the Cambridge subway from the Boston Elevated Railway at a price not to exceed . $8,000,000; but it is a question whether this particular legislation can again be brought up at this session, in view of its having received adverse action in the lower branch. The failure of this bill a few weeks ago was a serious blow to the hopes of the trus- tees of the Boston company to post- pone, if not to avoid, the increase of the fare unit to 10 cents, which became effective on July 10. The Worcester Consolidated Street Railway and the Springfield Street Railway have appealed to the Public Service Commission to revise the amounts of taxes assessed them for street repairs in various municipalities, claiming that in nearly every case the assessments exceed the municipal ex- penditures on the streets concerned. Official Statement of Jersey Settlement Thomas N. McCarter, president of the Public Service Railway, Newark, N. J., on July 2 issued the following statement in regard to the settlement of the differences of the company with its employees, to which reference was made in the Electric Railway Jour- nal for July 5. At a conference of representatives of the employees of Public Service Railway with myself and other officers of the company, held in the company's offices to-day, an agreement was reached which will save the liublic the inconveniences and business dis- turbances that would result from a strike. The recent award of the National War Labor Board including the supplementary decision filed by Charlton Ogburn to-day was accepted by both sides and the men were informed that in the interest of stability and with their promise of full co- operation in operation and a feeling of re- sponsibility on their part for its success, the company would agree to enter into a simple contract for a period of two years with its employees, members of the Amalgamated Association, for the mainten- ance of the wage scale and working con- ditions provided for by the award of the National War Labor Board. The men promised the heartiest co-operation on their part and agreed to submit a form of con- tract to be signed. July 12, 1919 Electric Railway Journal 87 Reserve Engineers' Travel- ing Expenses National Service Committee of Engi- neering Council Ready to Help Secure Legislation if Needed An account was published on page 1105 of the issue of this paper for June 7 of the efforts being- made by the National Service Committee of the Engineering Council in Washington in connection with the discharge of engi- neers enrolled in the Reserve Corps at points other than those in which they were enrolled. The case was cited ot some twenty-five or thirty engineers who entered the service while residing in the Philippines and of several who enlisted from Alaska, who were dis- charged in the United States, most of them in the eastern part. Further in- vestigation disclosed the fact that there were some 800 engineer officers who were deprived of mileage payment to their first stations under the present act. The correspondence between the National Service Committee of Engi- neering Council and the War Depart- ment mentioned in the previous article showed that the latter recognizes the situation but is powerless, under the existing law, to apply any general remedy. In a recent statement, the National Service Committee says it is will- ing to see what can be done in the way of legislation, but adds that it is obvious that Congress cannot be ex- pected to take the time to correct the situation if those in whose benefit it is proposed are too indifferent to relate the facts as they know them. It there- fore urges that any engineering officers who have had similar experience com- municate promptly with the committee, whose headquarters are in the Mc- Lachlan Building, Washington, D. C. $500,000 for Betterments The City Council of Seattle, Wash., recently passed ordinances appropriat- ing $500,000 for betterments and ex- tensions of the Seattle Municipal Rail- way, the appropriation being a loan from the general and electric railway funds to enable the railway department to start work immediately on a number of important improvements. One of the most important of these works to be undertaken at once is the double- track line on Avalon Way, West Seattle, to cost $60,000. This will pro- vide a direct route to that suburb on a much easier grade, and will eliminate the trestle approach on the West Alaska Street hill. Another item is $57,000 for tie-in tracks at East Union and Madrona. East Union will be double-tracked from Twenty-ninth Avenue to Thirty-fourth Avenue, allowing the residences of the Madrona district direct route to the city without transfer, and eliminating 2 miles of travel over the present route. An item of $49,800 is allowed for rerouting on Leary Avenue, to avoid several dangerous turns. Tie-tracks will be provided to the Fifteenth Ave- nue, West Bridge, to cost $30,000. The existing tracks on the bridge will be connected with the former traction lines on Forty-seventh Avenue. Other items include $26,000 for double tracks on West Sixty-fifth, Twenty-eighth Northwest, and Twenty-fourth North- west; construction of tracks on Third Avenue, from Stewart to Pine Streets, to cost $18,650; and numerous other minor improvements, designed to fa- cilitate operation. Toledo Company Ordered Off Streets The City Council of Toledo, Ohio, has passed an ordinance ordering the Tole- do Railways & Light Company, a sub- sidiary of the Cities Service Company, to vacate the streets over which the rail- way lines of the company operate by Aug. 1, this action affecting only the railway department of the company, and not in any way interfering with the operations of the electric light and power or gas departments. The passing of this ordinance fol- lowed the action of the Toledo Railways & Light Company in increasing fares from 5 cents and 1 cent for transfers to 6 cents and 2 cents for transfers. This increase was rendered necessary by the award of the Federal War Labor Board increasing wages of employees of the railway department of the Toledo Railways & Light Company. Through the Toledo Traction, Light & Power Company, the Toledo Railways & Light Company is an operating sub- sidiary of the Cities Service Company, but it is stated at the offices of Henry L. Doherty & Company that this action by the Toledo City Council will not be detrimental in any way to the income of the Toledo Traction, Light & Power Company, or of the Cities Service Com- pany. For some time the railway de- partment at Toledo has furnished trans- portation facilities to the city of Toledo and suburbs at a loss. Power Plant Rehabilitation Ordered Immediate steps to rehabilitate the Anderson power plant of the Union Traction Company of Indiana so that adequate and regular service can be given to the cities along the line were ordered on June 13 by the Public Serv- ice Commission of Indiana. The order is the result of a complaint filed with the commission by a number of prominent business firms of Marion. It was pointed out in the complaint that the franchise with the company called for hourly sei'vice through the city and that the company was giving only two or three-hour service and at times there were breaks of four or five hours in service. The Marion business men said the poor service was caused by the power plant at Anderson. The commission ordered an investiga- tion of the plant by the engineering department of the commission, which filed a report saying that the basic difficulty lies in the Anderson plant and was caused by deferred maintenance. Dispute Over Hours Results in Strike Railway Service Suspended on Illinois Traction Lines in Urbana and Champaign Railway service of the Urbana & Champaign Railway, Gas & Electric Company has been partially tied up since July 3. It seems that part of the employees were aflfiliated with the Amalgamated Association and part with a brotherhood. It is said that the union men were dissatisfied with the hours, claiming that the nine-hour day was agreed upon by the company last September, when the lines were tied up by a strike for about three days. The men say that they returned to work in September as a patriotic duty in time of war, with the under- standing that the day would be short- ened to nine hours. This, they say, has not been done. There is no diffi- culty regarding wages. The men who belonged to the brotherhood interpret the matter differently and did not strike. Suggests Settlement by Vote George M. Mattis, vice-president and treasurer of the Illinois Traction System, of which the Urbana & Cham- paign Railway, Gas & Electric Com- pany is a part, says that as the union men demand a nine-hour day and the brotherhood favors another set of hours the only fair way to settle the matter is to determine just how many hours should constitute a day's work. The company proposed, in writing, on March 20, 1919, that a vote be taken of all employees. It renewed this pro- posal on June 28. To both of these offers the union men turned a deaf ear, maintaining that the nine-hour day was promised as soon as the war period was over, and that they conceded a point in returning to work in the emergency. The union employees have also de- manded the return to the service of the company of four men who had been discharged. Mr. Mattis, in his pub- lished statement, says that only two men have been discharged and that the company has stated all the time to the union that the officers of the company are willing to arbitrate the dismissal of these men on request in writing to the company that the cases be arbitrated. With reference to wages Mr. Mattis says that the rates paid in Champaign-Urbana are the same as those paid in Danville, Decatur and Galesburg and higher than those paid in Bloomington, Springfield and Quincy. Loyal Men Refuse to Join Strikers The brotherhood was organized early in 1919, chiefly by older employees of the company. Members of the brother- hood prefer the long runs and the split runs rather than work nine hours straight. They are abiding by their contract and are at work, but are too few in numbers to keep all the cars running on anything like schedule. The strike had not been settled at 7 o'clock p.m., July 7. 88 Electric Railway Journal Vol. 54, No. 2 Cincinnati Employees Reject Agreement The tenns of the new agreement be- tween the Cincinnati Traction Company and its employees were rejected by the street railway employees' union at a recent meeting. Platform men are asking a 2-cent- an-hour increase, with an eight-hour day and time and a half for overtime. The old agreement provided for 44, 46 and 48 cents an hour for motormen and conductors, with time and one-third for overtime. Carhouse men who have joined the union are also asking for an increase. They formerly were paid a sliding scale, but were allowed 42* cents an hour by the War Labor Board. W. Kesley Schoepf, president of the company, accepted most of the pro- posals of the union, but stated that the company does not agree to the increase of 2 cents an hour in the wage of train- men from the maximum of 48 cents fixed by the War Labor Board last November, as the company does not be- lieve conditions have changed so as to warrant an increase. The company proposes to continue the War Labor Board award to miscellaneous em- ployees, except to car washers, curve cleaners and watchmen, whose rates it holds were fixed too high. The possibility of a strike is remote, since the old agreement provides that if the company and the union fail to arrive at a satisfactory agreement by June 30, thirty days grace shall be granted for a settlement by arbiti'ation. Strike Ended in Vancouver The men on the British Columbia Electric Railway's Vancouver city lines resumed work on June 30 after a strike of twenty-five days. They quit work in sympathy with the general strike in Vancouver and Winnipeg. The men went back, although the general strike in Vancouver had not yet been called off but was collapsing. Following telegrams from the inter- national ordering the men back to work in accordance with their agreement, a meeting was held on June 25 which was addressed by union leaders and by W. G. Murrin, assistant general manager of the railway. It was then decided to take a ballot. The vote showed a ma- jority of forty-five in favor of resum- ing work out of a total of 750. The New Westminster city lines and the Central Park and Burnaby Lake interurban lines, all of which came under the New Westminster local, were hot in operation from June 18 to June 23. The New Westminster trades and labor council declared a general strike on the arrest of the strike leaders in Winnipeg, and although the street and intenirban railway men voted 70 per cent to stay at work, they were forced out. On June 23, however, of their own volition, they decided to go back to work. Station agents and despatch- ers on the Fraser Valley and Lulu Island lines were involved in this phase of the strike and the company reduced its passenger service by one train a day on the Fraser Valley line and discon- tinued most of its freight service. The trainmen on these lines are members of the railroad brotherhoods and did not strike. New Franchise Planned for Covington An ordinance outlining a twenty- year franchise has been drawn up by legal representatives of the South Cov- ington & Cincinnati Street Railway, Covington, Ky., and was read at a re- cent meeting of the City Commis- sioners. The new measure, pattenied largely after a similar ordinance en- acted in Cincinnati, proposes a service- at-cost system with a sliding scale of fares. Increases or decreases in fares are to be made on a half-cent basis, de- pendent on the operation cost and the condition of the reserve fund, which shall be $50,000 at the minimum. Three appraisers are to ascertain the physical valuation of the company's property in Kenton County. The twenty-year franchise is to re- place the perpetual franchise which the company purposes to surrendei-. The changes in fares must be approved by Ludlow and Cincinnati before the or- dinance becomes effective. News Notes Strike in Ottawa. — The employees of the Ottawa (Ont.) Electric Railway went on strike on July 2. A board of conciliation is sitting on the dispute and on June 30 a request was made to the men by the chairman, Darcy Scott, to withhold drastic action until the award was made, but it was refused. Petition for Higher Salaries — Twenty employees of the Rapid Transit Com- mission of Cincinnati, Ohio, signed a petition lately asking for an increase in salary. Chief Engineer Frank Krug, Assistant Chief Engineer Fi-ank Raschig and Chief Clerk E. E. Hum- phries were the only members who did not sign. Strike of Linemen Settled.— The strike of linemen in the employ of the Fort Wayne & Northern Indiana Trac- tion Company, Fort Wayne, Ind., has been settled on a basis of an increase in wages of 10 per cent, effective from July 1 for all linemen, groundmen and truck drivers, with an additional in- crease of 5 per cent for linemen only, effective from Aug. 1. Union Recognition Made an Issue. — Conductors and motormen in the em- ploy of the Oklahoma Union Railway, which owns and operates an interurban line from Tulsa to Keifer and the local railways in Tulsa and Sapulpa, formed a union recently and struck to enforce their demands for recognition of the union. They won their point after be- ing out a few days. Service on the in- terurban and on the local lines was badly crippled until the settlement, when all men went back to work and all cars were started running on sched- ule. No question of wages or shorter hours was involved. Elevated Damaged by Fire. — A fire said to have been caused by an electri- cal short-circuit consumed five passen- ger coaches of the Third Avenue ele- vated line of the Interborough Rapid Transit Company, New York, N. Y., at the South Ferry terminal on the after- noon of July 2, damaged the front of the Staten Island ferry house, endan- gered hundreds of persons, and resulted in the injury of a half dozen firemen called to fight the flames. The fire forced a suspension of ferry service to Staten Island. The elevated structure was charred for a distance of about 300 ft. north of the ferry house. At one time the structure, the front of the ferry house and the four coaches were a mass of flames. Program of Meeting Illinois Electric Railways Association The mid-summer meeting and outing of the Illinois Electric Railways Asso- ciation will be held at the Rockford Country Club, Rockford, 111., on July 16. Through the courtesy of R. A. Moore, general manager of the Aurora, Plain- field & Joliet Railway, an invitation has been extended to join the members from Joliet on Mr. Moore's private car "Lou- isiana" on Tuesday evening, traveling over the properties of several of the member companies, and arriving in Rockford on Tuesday night. Lunch will be served aboard the car. Those who do not go on Tuesday night can take a special car on the Illinois Central train Wednesday morning, and will be met at Rockford by a special car for the Country Club. The convention will assemble at 10.30 a.m. Three papers will be presented and discussed. They are as follows: "Safety Cars and the Results of Their Operation," by E. M. Walker, general manager of the Terre Haute & Western Railway. "Track Maintenance," by John B. Tinnon, engineer of maintenance of way of the Chicago & Joliet Electric Railway. "Public Utility Life Insurance," by Bernard J. Mullaney, director of the Illinois Committee on Public Utility Information. Dinner will be served at the Country Club, following which those who de- sire may enter a golf tournament, the winner to receive a cup offered by the president of the association. This will be a handicap tournament. For those who do not play golf, a specially con- ducted automobile trip to and through Camp Grant has been arranged. July 12, 1919 Electric Railway Journal 89 Financial and Corporate had at the beginning. Under existing cir- cumstances, it is only fair that the court should co-operate with the commission in an endeavor to work out the problem under tl)e changed conditions and to study the exact situation as it shall develop before coming to a final oijinion. I. T. S. Costs Heavy Higher Rates Give Increased Revenues, but Expenses Rise at Greater Rate While general increases were author- ized in electric railway, lighting and heating rates of the Illinois Traction System, Peoria, 111., during the calendar year 1918, these were insufficient to off- set the advanced operating costs. As a result the net income for 1918 was only $413,744 as compared to $1,172,153 in the preceding year. INCOME STATEMENT OF ILLINOIS TRACTION SYSTEM FOR CALENDAR YEARS 1917 AND 1918 . 1918 , . 1917 . Per Per Amount Cent Amount Cent I nt er ur b an lines $4,740,079 31.1 $4,609,898 32 8 Citylines 3,351,256 21.9 3,198,056 22.8 Gas 1,282,104 8.4 1,035,169 7.4 Electric 4,887,743 32.0 4,295,501 30 6 Heat 412,779 2.7 383,092 2.7 Water 15,636 0.1 15,151 0.1 Miscellaneous 571,406 3.8 504,004 3.6 Total' gross revenues, $15,261,003 100.0 $14,040,870 100.0 Operating ex- penses and taxes 10,966,998 71 9 9,149,176 65.1 Gross in- come.. $4,294,005 28.1 $4,891,694 34.9 Interest o n bonds, etc... 3,880,261 25.4 3,719,541 26.5 Netincome. $413,744 2.7 $1,172,153 8.4 In spite of the so-called "lightless nights" and the influenza epidemics, the gross revenues of the various subsidi- aries in the system increased $1,220,133, or 8.7 per cent. Each department con- tributed to the result, the increase for the interurban railway lines being $130,183 or 2.8 per cent and that for the city lines $153,200 or 4.8 per cent. These gains compare with 15.4 per cent and 2.8 per cent respectively for 1917 over 1916. The total increase in operating ex- penses and taxes, which materially ex- ceeded the gain in revenues, was $1,- 817,822 or 19.9 per cent. Of this ad- vance in expenses a total of $1,505,675 was made up as follows: Wages, $700,- 086; steam coal, $545,636; materials and supplies, $142,425, and $117,527 for gas coal and oil. Had it not been for the company's direct control of consid- erable coal tonnage on its interurban lines, the expense for steam and gas coal would have been further materially increased. The effect of the revenue and ex- pense changes upon the gross income for 1918 was a loss of $597,689 or 12.2 per cent below the 1917 figure. The fixed charges increased, and the result was the big decline in net income above noted. Detailed figures for the last two years are given in the accompanying statement. The utmost effort was made by the management early in the year to secure an adjustment in rates necessary to provide revenue which would harmonize with the greatly increased operating expenses. On the interurban lines an increase of 25 per cent in joint freight rates became effective June 25, fol- lowed by an increase of 25 per cent in local freight rates on intrastate and interstate traffic, effective Aug. 3 and Nov. 1 respectively. On Nov. 15 an increase of 50 per cent in intrastate passenger fares became effective, and on Dec. 19 the Interstate Commerce Commission issued an order authoriz- ing a corresponding increase in inter- state fares, effective early in 1919. Segregation Decision Put Off Court Says Commission Decision in New York Transfer Case Changes Complexion of Affairs Judge Mayer in the United States District Court in New York City on July 8, after listening for more than an hour to numerous lawyers representing various interests at a hearing on the motion made some days ago to separate the Eighth and the Ninth Avenue Rail- road lines from the New York Railways because of default in rental, announced that he thought further consideration was called for under existing circum- stances and he accordingly adjourned both cases. In the case of the Ninth Avenue line. Receiver Job E. Hedges had suggested that inasmuch as the amount due it was less than $100,000, that amount be paid over at once in order to avoid separa- tion, and as the problem was compara- tively simple as regards that company, Judge Mayer adjourned the further hearing until Aug. 28. The amount due to the Eighth Avenue company is con- siderably larger and the situation is somewhat complicated by the fact that it owns some $3,000,000 worth of real estate. Judge Mayer said that he thought it would be desirable to have some further conferences respecting that company and he adjourned the hearing to July 11. In making this announcement. Judge Mayer said that the whole situation had been changed since the motion for separation has been made owing to the decision announced by Public Service Commissioner Nixon, permitting the charging of 2 cents for transfers at ninety-nine points in the system. This decision is referred to at length else- where in this issue. The court said: Commissionpr Nixon, in miking this de- cision, has not only co-operated with the court in a very serious problem, but he has in my opinion rendered a very distinct service by the promptness of his decision. Without in any manner commenting iii)on the course pursued by his predecessors, the fact remains that, although voluminous testimony was taken in similar proceed- ii^!?s no decision wps rendered and that at the end no one knew more than they Seattle's May Profit $5,301 Superintendent of Municipal Railway There Points Out Wherein Service Has Been Bettered According to a report filed by Super- intendent Thomas F. Murphine, the Seattle (Wash.) Municipal Railway during the month of May showed greatly increased service and a large gain in revenues compared with the corresponding month of May of last year. The city operated during May, 1919, a total of 148,758 car-hours, or 33,225 more car-hours than in May a year ago, or 4153 eight-hour days of serv- ice more than was provided in May, 1918. The figures include the com- bined lines of the Puget Sound Trac- tion, Light & Power Company, and the Municipal divisions "A" and "C." The report also shows that 260,347 more car-miles were operated last month than in May of last year by both railway systems. The revenues from all sources for May of this year totaled $439,932, a gain of $18,680 over April of this year, and an in- crease of $66,637 over May of last year. Operating Expenses Higher Operating expenses are shown to be considerably higher, due to increased wages in the car shops, payment of time and a half overtime, and to an increase, in some instances, in service. The report claims a net profit of $5,301 for the month. The letter of Mr. Mur- phine containing a summary of the report follows in part: The recapitulation of the financial state- ment of railway operating expenses and revenues for May, 1919, shows the rev- enues from all sources for said month to be $439,932, a gain of $18,680 over the month of April, 1919, and an increase of $68,637 over May, 1918 Known operating expenses are shown to be $354,458, as com- pared with $331,242.32 in April. This increase in expense is due to an mcrease of wages in the car shops, the payment of time and one-half for over- time (which was not in effect in April) and to an increase, in some instances, in serv- ice. However, there is shown a gain or profit for the month of May of $85,473. Prom this amount we have deducted an Item of $66 260, being the interest on out- standing bonds, and an item of $6,911, be- ing the maximum amount payable when called for as industrial insurance ; also an Item of $7,000 to pay this month's share of damage claims. Depreciation is more than offset this month by extraordinary expendi- tures in the way of maintenance. These various items deducted from the gam would leave a net profit of $5,301. It will be noted that the statement shows that we operated during this month a total of 148,758 car-hours, or 33,225 more car- hours than were operated in May, 1918, by the combined lines of the Puget Sound Traction. Light & Power Company and the Municipal Street Railway, Divisions "A" and "C." It is also shown that we operated 260.347 more car-miles than in the corresponding month of last year by both railway sys- tems. These figures show the increased service that the people of the city are now getting over the operation of last year. Wages piid to employees this month totaled $103,779 more than was paid in May, 1918. 90 Electric Railway Journal Vol. 54, No. 2 $33,040,795 Buffalo Valuation Arbitration Board Fixes Upon This Amount as Fair Basis for Rate Purposes The board of arbitration appointed by the International Railway, Buffalo, N. Y., and the municipal authorities to determine the valuation of the com- pany's property within the city, filed its report with E. G. Connette, presi- dent of the company, on July 3. The pi-operty is held to be worth $33,040,- 795. The report of the appraisers is not binding on either party, however, as the arbitration proceeding which was expected to lead to an agreement between the city and the company for municipal control of service was aban- doned by the city after Governor Smith had vetoed the enabling act. Final Report a Compromise If the New York State Court of Appeals decides on July 15 that the Public Service Commission has power to fix fares in Buff'alo regardless of the company's franchise, the International Railway will probably use the report of the board of appraisers as a basis for raising fares from 5 cents to 7 or 8 cents. The final report of the arbiters is a compromise between the $44,000,000 valuation sought by the company and a valuation of $22,000,000 sought by the city. James E. Allison, the com- pany's member of the board, would add $1,825,000 for going value, making a total of $34,965,795. Orson E. Yeager, the umpire, agreed with Professor Al- bert S. Richey, the city's member of the board, in opposition to the going value figured by Mr. Allison. The arbiters allowed the claim of the company for superseded property. Such property was defined by them as property that has become obsolete and discarded through progress in inven- tions and the arts or has become inade- quate or otherwise rendered useless before the termination of its useful life. The board found that $2,764,125 should be allowed for this item and he in- cluded in the valuation entitled to a return until such time as it may be amortized out of future earnings. Many Deferred Renevi^als No allowance was made by the board for depreciation of the company's prop- erty. The members think, however, that the company should be required to place all parts of its property in a condition of proper operating efficiency, such necessary renewals to be paid out of earnings, but without diminution of a proper return on the valuation found. Much evidence was submitted to the arbitration board to the effect that there is at present a considerable amount of deferred renewals, principally in the form of track and pavement. The re- port says in part: This is a condition in which many elec- tric railways are found at the present time, in general due to the inability of the com- panies to secure proper materials and labor during the past year or two. and also to the fact that many companies on account of rapidly increasing prices and fixed fares, with a falling off of traffic due to war con- ditions and automobile competition, have not been able to make such renewals after paying for operating expenses, ordinary maintenance and taxes. Explaining the allowance for pro- motion and consolidation, the arbitra- tors say: In the history of exx-ry property of the character of the one under consideration there have beennumerous special costswhich have been incurred for promotion and con- solidation. These costs are often met by the giving of securities or by consideration in the price at which securities are taken Ijy promoters and organizers. This portion of the expense, which is an actual expense to the corporation, is not usually traceable in the books on account of the nature of its payment, and even if it were it would be impossible to take as a figure in de- termining a rate base the sometimes fanci- ful amount of securities obtained as a re- ward for promotion. It is, therefore, nec- essary in this case, as in nearly all of them, to assigri arbitrarily an amount which in the opinion of the board should cover these outlays. In this case we believe $1,250,00U to be a proper allowance for these costs. A summary of the items entering into the value of the property, as fixed by the arbiters, is as follows: Physical value stipulated by city and company $22,356,736 Capital additions, real estate 300,000 Capital additions, new line 1 7,000 Omissions and contingencies 768,994 Engineering and superintendence during construction 613,354 Injuries and damage during construction. 1 67,976 Legalexpendituresduringconstruction. . 93,419 Administrative and miscellaneous ex- penses during construction 1 76,768 Taxes during construction 1 04,293 Interest during construction 737,947 Superseded property 2,764, 1 25 Cash working capital (in addition tostore and supplies) 284,026 Physical value, including overheads. . . $28,384,638 Promotion and consolidation costs $1 ,250,000 Cost of assembling capital 567,693 Capitalization of initial risk, including going value 2,838,464 Total finding of majority of board $33,040,795 .Addition in Mr. .^.Uison's opinion to cover initial deficit or "going value" $ 1 ,925,000 Total with Mr. .Allison's addition $34,965,795 As soon as the New York State Court of Appeals hands down its de- cision with respect to the right of the Public Service Commission to intervene in local traction matters and fix an adequate rate of fare despite the pro- visions and restrictions of local fran- chises, the company will apply for an investigation into local conditions so that a higher rate of fare can be fixed. Case Before St. Louis Special Master Closed The hearing in the case of John W. Seaman, New York, a holder of pre- ferred stock of the United Railways, St. Louis, Mo., against directors of the company for their discharge and for recovery from them of funds alleged to have been wasted through power contracts, mill tax litigation and other means, before Special Master Lamm at St. Louis came to an end at the close of the week of June 23 after several of the directors had testified in their own defense. The directors who took the witness stand were Frank O. Watts, Murray Carleton, Alanson C. Brown, A. L. Shapleigh and Henry S. Priest, who was formerly general counsel for the railway. Mr. Priest, who has been act- ing as counsel for himself and the other directors during the hearings, asked each of the directors the following question in regard to the passage by the board on July 9, 1918, of a resolu- tion declining to accept the resignation of Bruce Cameron, superintendent of transportation, following his indictment in connection with the referendum pe- titions theft: What knowledge or information had you at the time that Mr. McCulloch or Mr. Cameron had any part in the theft? Each director replied that he had none. Mr. Shapleigh went on to say- that Mr. McCulloch had told him he knew nothing of the theft. Collateral Securing St. Louis Loan Being Sold Attorneys representing the various interests involved in the suit for a receiver and an accounting against the United Railways, St. Louis, Mo., ap- peared before Special Master Lamm on June 30 to discuss the application of the receiver and the directors of the railway for permission to issue re- ceiver's certificates in sufficient amount to take up the loan of $2,500,000 made to the United Railways by the War Finance Corporation. As a result of the failure of the attorneys present to agree on any essential point, the Special Master postponed the hearing until July 10 to give the attorneys time to study the situation. The application for permission to issue the certificates was made by Charles W. Bates, attorney for the receiver. The directors of the railway joined in this request, but differed with the attorney for the receiver on details. Mr. Bates' plan was for the issue of general receiver's certificates. Henry S. Priest, representing the directors and attorneys for other interests, said these would not be subscribed, as in- vestors would not have the confidence that they represented an actual lien against the property. Mr. Priest sug- gested one-year notes secured by the Union Depot bonds. He said these could be marketed easily. This plan was objected to by counsel for the Leed Mining Company, one of the intervenors in the receivership suit. The War Finance Corporation loan became due on June 1. It has not been paid. It is secured by $3,485,000 of the Union Depot Railway bonds deposited with the War Finance Corporation. Of this collateral $800,000 in bonds al- ready has been sold by the War Finance Corporation. The principal purpose of the hearing was to lay plans for pre- venting further sale of these securities. Insisting that the matter be settled quickly, Attorney Priest said that the War Finance Corporation was becom- ing very impatient. Special Master Lamm then urged the lawyers to act with dispatch. July 12, 1919 Electric Railway Journal 91 Ten- Year Traffic Increase 51.9 Per Cent Previous Census Figures Supplemented by Capitalization and Traffic Details Director Samuel L. Rogers, of the Bureau of the Census, Department of Commerce, has issued the following statement, supplementing- that of April 21, in regard to electric railways in the United States : over 1907: those of the East North Central States, 2,712,624,699; increase, 68.7 per cent; of the New England States, 1,242,076,786; increase, 41.9 per cent: of the West Nox'th Central States, 902,368,927: increase, 46.6 per cent; of the South Atlantic States, 747,561,816; increase, 53.2 per cent: of the Pacific States, 707,310,819; increase, 45 per cent: of the West South Central States, 313,203,554, increase, 62 per cent: of the East South Central States, 292,- 004,689; increase, 32.2 per cent: and ELECTRIC RAILWAYS: UNITED STATES Capitalization Investments in securities and non- operating property New England Middle Atlantic East North Central West North Central. South Atlantic East South Central West South Central Mountain Pacific Net capitalization per mile of track. New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific * A minus sign ( — ) denotes decrease, t Not including real-estate mortgages 1917 1912 1907 $2,473,846,651 $2,379,346,313 $2,097,708,856 3,051,179,272 2,329,221,828 1,677,063,240 $5,525,025,923 $4,708,568,141 $3,774,772,096 642,261,722 465,250,414 374,664,197 $4,882,764,201 $4,243,317,727 $3,400,107,899 352,553,026 320,491,727 263,842,127 1,696,403,938 1,312,329,549 1,194,940,494 1,109,374,472 1,024,768,763 900,387,383 341,884,368 300,821,223 251,673,038 415,149,716 361,599,371 250,135,621 141,410,566 1 18,166,868 99,599,823 160,936,399 128,049,146 84,192,034 88,125,354 75,630,871 45,920,878 576,866,362 601,460,209 309,416,502 1 1 1,233 104,930 100,495 64,474 61,577 54,724 167,942 134,702 140,724 88,163 87,102 87,292 94,848 97,807 102,948 130,144 125,409 1 12,013 97,518 92,051 93,925 95,695 93,272 100,083 71,987 77,514 76,358 125,596 145,428 102,272 Per Cent of Increase * 1907- 1912- 1907- 1917 1917 1912 17.9 4 0 13.4 81.9 31 0 38.9 46.4 17 3 24.7 71.4 38 0 24.2 43,6 15 1 24.8 33.6 10 0 21 .5 42.0 29 3 9.8 23.2 8 3 13.8 35.8 13 7 19.5 66.0 14 8 44.6 42.0 19 7 18.6 91.2 25 7 52 1 91 .9 16 5 64.7 86.4 — 4 1 94.4 1917, $7,197,895; 1 9 1 2, $6,097,245: and 1 907, $4,059,805. The total capitalization of the elec- tric railways, street and interurban, for the year 1917 was $5,525,025,923, representing an increase of 46.4 per cent over 1907; and deducting investments in securities and non-operating property, the net capitalization was $4,882,764,- 201, as compared with $4,243,317,727 in 1912 and $3,400,107,899 in 1907, representing an increase of 15.1 per cent for the period 1912-1917 and of 24.8 per cent for the period 1907-1912, the rate of increase for the decade be- ing 43.6 per cent. The net capitalization per mile of track was $111,233 in 1917, as com- pared with $104,930 in 1912 and $100,- 495 in 1907. The roads of the Middle Atlantic States, New York, New Jer- sey, and Pennsylvania, taken as a group, showed the heaviest net capitali- .zation per mile of track, namely, $167,- 942 in 1917 and $140,724 in 1907; and those of the New England States the lowest, $64,474 in 1917 and $54,724 in 1907. The South Atlantic States aver- aged $130,144 in 1917; the Pacific States, $125,596; the East South Cen- tral, $97,518; the West South Central, $95,695; the West North Central, $94,- 848; the East North Central, $88,163; and the Mountain States, $71,987. For the United States the total num- ber of revenue passengers was 11,304,- 660,462 in 1917, 9,545,554,667 in 1912, and 7.441, 114, .508 in 1907, representing an increase of 51.9 per cent for the dec- ade. The roads of the Middle Atlantic States carried 4,225,287,044 revenue passengers, an increase of 48.8 per cent of the Mountain States, 162,222,128; increase over 1907, 43.2 per cent. The average number of revenue pas- sengers per mile of track (based on total track mileage, including sidings) was 252,323 in 1917 and 216,522 in 1907; the average number per passen- Merger at Indianapolis Approved Commission Modifies Its Original Order and Companies Involved Arrange to Carry Out Plan Following the order handed down by the Indiana Public Service Commis- sion on June 28 conditionally approv- ing the merger of the Indianapolis Traction & Terminal Company and In- dianapolis Street Railway, as reported in the Electric Railway Journal of July 5, page 42, an appeal was made to the commission to modify its order so that the consolidation could take place at once without calling a further meeting of the stockholders. First Commission Approval Conditional Under the terms of the order of the commission issued June 28 the merger petition was approved subject to four- teen conditions to be accepted by the parties involved on or before Sept. 1, 1919. Several of the conditions, how- ever, would have required the amend- ment of the original consolidation agreement as submitted to the stock- holders. This could not have been ac- complished by July 1. In issuing the original order the commission contem- plated that the merger could be made effective at once and the conditions met by the consolidated company. The at- torneys for the two companies, how- ever, showed that it would be impos- sible to reduce the stock of the Indian- apolis Traction & Terminal Company below the amount of $2,500,000 pro- vided in the merger agreement without the consent of the trustee, and the sus- pension of sinking fund payments would also have to be referred to the trustee for the bondholders. ELECTRIC RAILWAYS: UNITED STATES Per Cent of Increase Traffic 1917 Passengers carried 14,506,914,573 Revenue 11^304,660,462 Transfer 3,021,137,935 Free 181,116,176 Revenue passengers by divisions: New England 1,242,076.786 Middle Atlantic. 4,225,287,044 East North Central 2,712,624,699 West North Central 902,368,927 South Atlantic 747,561,816 East South Central 292,004.689 West South Central 313,203,554 Mountain 162,222,128 Pacific 707,310,819 .\verage number of revenue pas- sengers : Per mile of track (all tracks) .. . 252,323 Per mile of running track 260,868 Per passengar car-mile ' 5.41 Per passenger oar-hour 53.69 Per mile of track (all tracks) by divisions: New England 223,468 Middle Atlantic 400,322 East North Central 2 1 4,346 West North Central 246, 1 84 South Atlantic 228,064 East South Central 201,355 West South Central 186,162 Manhattan 127,877 Pacific 150,824 (I) A minus sign ( — ) denotes decrease. 1912 12,135,341,716 9,545,554,667 2,423,918,024 165,869,025 1,051,161,737 3,513,720,591 2,159,620,746 787,301,146 616,724,741 268,785,533 270,745.675 154,224,248 723,270,250 232,556 (2) 5.06 48,38 1907 9,533,080,766 7,441,1 14,508 1,995,658,101 96,308,157 875,1 15,527 2,839,019,161 1,607,894,497 615,630,852 487,981,528 220,887,485 193,338,141 1 13,304,063 487,943,254 216,552 (2) 4,70 43.06 1907 1917 52.2 51.9 51,4 1912- 1917 19,5 18.4 24.6 9.2 41 ,9 68,7 46.6 53.2 32.2 62.0 43.2 45.0 18.2 20.2 25.6 14.6 21 . 2 8,6 15.7 5,2 -2.2 1907- 1912 27.3 28,3 21,5 72,2 20. 1 23.8 34.3 27.9 26.4 21.7 40.0 36. 1 48 . 2 198,536 179,546 349,867 321,520 183,142 155,789 254,081 245,432 208,193 212,699 208,947 207,466 196,730 229,831 153,104 188,404 172,790 160,951 (2) Figures not available. ger-car-mile, 5.4 in 1917 and 4.7 in 1907; and the average number per pas- senger-car-hour, 53.7 in 1917 and 43.1 in 1907. Details appear in the tables herewith. The commission thereupon issued an order superseding its order of June 28. The modified order issued by the Public Service Commission on June 30, takes the place of the order issued Saturday. 92 Electric Railway Journal Vol. 54, No. 2 In the first order were fourteen points or conditions, precedent to approval of the merger. In the modified order there are ten conditions precedent, which were complied with at once by the constituent companies, and several additional conditions which are to be complied with by specified times in the future by the consolidated company. Of the conditions to be complied with by the consolidated company in the future, one requires that on or before Aug. 1, 1919, there shall be surren- dered to the consolidated company $1,- 500,000 of the $2,500,000 stock to be issued in exchange for the $5,000,000 stock of the Indianapolis Traction & Terminal Company. This would bring the amount down to $1,000,000, which the commission decreed in its first or- der. It was contended by the merger advocates that the trustee for the bonds of the Terre Haute, Indianapolis & Eastern Traction Company, with which is deposited the Indianapolis Traction & Terminal Company stock, would have to consent to the reduction to $1,000,000. The trustee had con- sented to a reduction to $2,500,000, as provided in the merger agreement, and the articles of consolidation provide for the $2,500,000. In the condition requiring a reduc- tion of $1,500,000, it is provided that if the Public Service Commission should find the value of the property as of July 1, 1919, to be in excess of all the stocks and bonds of the consol- idated company, then "additional stock to the amount of such excess value may be reissued." Must Meet All Conditions by Sept. 1 All other conditions not precedent to the merger are to be met by Sept. 1, 1919, the chief one being that the con- sent of the trustees of the bondholders would have to be obtained in connec- tion with the suspension of sinking fund payments until Jan. 1, 1923, and eliminating the payment of interest on bonds already in the sinking fund. After the order was issued the com- pany filed acceptance with the commis- sion, and articles of incorporation of the new consolidated Indianapolis Street Railway were filed with the Sec- retary of State. The members of the new board of directors named in the merger agree- ment to serve until the next annual meeting of the company are: Dr. Henry Jameson, chairman; Charles H. Becker, Walter J. Ball, W. T. Durbin, R. K. Willman, C. Thomson, J. A. McGowan, John J. Appel and Robert I. Todd. The directors met on July 2 and elected Robert I. Todd president of the new consolidated company, and J. A. Mc- Gowan, auditor of the Indianapolis Traction & Terminal Company, secre- tary and treasurer of the new company. As soon as the final order of the com- mission had been issued and accepted by the company, payment was made of bond interest on the Indianapolis Street Railway bonds. This payment had been been deferred at the first of the year. Financial News Notes Deferred Dividend Paid. — The divi- dend of 3 per cent on the preferred stock of the Virginia Railway & Power Company, Richmond, Va., declared on Dec. 20, 1918, payment on which was deferred, will be paid on July 20. Another Road Sold for Junk. — The Stoughton & Randolph Street Railway, Randolph, Mass., has been sold to a Chelsea junk dealer for $12,000, and work on removing the rails and ties will soon be started. Mr. Budd a Middle West Director. — Britton I. Budd, president of the Chi- cago (111.) Elevated Railways, has been elected a director of the Middle West Utilities Corporation, succeeding Fi-ancis S. Peabody, resigned. Company Accepts Offer from City. — The mortgagees of the defunct London & Lake Erie Traction Company have accepted an offer of $25,000 from the city of St. Thomas, Ont., for all of the property of the company in the city, including carhouses, freight house, etc. Compensation Fixed for Hudson & Manhattan Road. — Director-General of Railroads Hines on July 1 signed rail- road contracts with the Hudson & Man- hattan Railroad, operating under the Hudson River between New York and New Jersey, fixing the annual compen- sation by the government for that sys- tem at $3,003,362. Application for Receiver Heard. — Argument on the application for a re- ceiver for the Rock Island (111.) South- ern Traction Company has been heard by the Master in Chancery of Knox County, 111. The Continental Trust & Savings Bank, Chicago, representing the holders of bonds, is the complain- ant. Two- Year Notes Ready for Pay- ment.— H. M. Byllesby & Company, Chicago, 111., operating managers, an- nounce that the $450,000 of 6 per cent gold notes of the Arkansas Valley Rail- Avay, Light & Power Company, Pueblo, Col., which matured on July 1, 1919, are payable at the office of the Con- tinental & Commercial Trust & Sav- ings Bank, Chicago. Amount of Outstanding Bonds Re- duced.— The amount of first and re- funding mortgage 5 per cent bonds of the Kentucky Traction & Terminal Company, Lexington. Ky., due on Feb. 1, 1951, "has been reduced from $2,892,- 000 to $2,342,000. $550,000 of the bonds having been retired and cancelled by operation of the sinking fund as of June 5, 1919. Would Abandon New York City Lines. — The New York City Interbor- ough Railway, whose lines are now operated as a part of the Third Avenue Railway System, has applied to the Public Service Commission for the First District of New York for permission to abandon parts of unused or little used lines in the borough of the Bronx. Com- missioner Nixon has fixed July 24 as the time for a hearing upon the appli- cations involved. The proposals to abandon have already had the approval of the directors of the company. Court Confirms Rsceiver's Authoriza- tion.— The United States Circuit Court of Appeals has aflSrmed Judge Julius M. Mayer's order authorizing Lindley M. Garrison, receiver of the Brooklyn (N. Y.) Rapid Transit Company to is- sue receiver's certificates for $20,000,- 000. The Appellate Court, however, modified the order which made the cer- tificates a lien superior to that of the first - refunding gold mortgage of the Brooklyn Rapid Transit Company by maintaining the lien of that mortgage unimpaired. St. Louis Payments Authorized. — Federal Judge Dyer, on the recom- mendation of Special Master Henry Lamm in the so-called Seaman suit against the United Railways, St. Louis, Mo., has authorized Rolla Wells, re- ceiver of the company, to pay out of the revenue of the company certain in- come, license and mill taxes due the city of St. Louis under franchise ordi- nances. Judge Dyer also authorized payment of the unpaid coupons of the St. Louis Transit Company's bonds and the continuance of various depositaries for this purpose. The payment of these coupons had been strongly ob- jected to by attorney for the nlaintiff in the John W. Seaman receivership suit. Commission Administers Quietus. — The Illinois Public Utilities Commis- sion on its own motion has directed the Chicago, Fox Lake & Northern Electric Railway to cease selling its one-year 7 per cent notes and to de- sist from transacting any further busi- ness in Illinois. The company was granted a certificate of convenience and necessity on July 28, 1916, to oper- ate a suspended monotvpe railway be- tween Palatine and the Wisconsin State line. On April 17, 1918, the commis- sion denied an application for a certi- ficate of convenience and necessity to construct the mono-railway over a specified route between Palatine and the Wisconsin State line, and denied authority to issue capital stock in the amount of $2,500 and bonds in the amount of $5,680,300. The commission held that while some preliminary work had been done in connection with the laying out of the line and the securing of the right-of-way, outside of about one hour's work done in July, 1918, no work for the actual construction of the railroad, as proposed, was done until October, 1918, and that the company has not exercised its right conferred by the certificate of convenience and necessity granted under date of July 28, 1916. within the two-vear neriod and that the certificate authorizing the road is null and void. July 12, 1919 Electric Railway Journal 93 Traffic and Transportation Tri-City Company's Appeal Iowa and Illinois Railway in Receiver's Hand Except for Aid from Holding Company By making the concession to its em- ployees noted on page 86 in this issue, the Tri-City Railway, Davenport, la., Jiopes to secure the active support of all its employees and the public in the petition for higher fares, although the fare case is backed by strong argu- ments in the failure of the company's lovfa lines to pay operating expenses and in the great decrease in revenue compared with cost of operation in Illinois. The petition of the company for in- creased fares was presented to the Public Service Commission of Illinois nine months ago. No decision has yet been rendered. The company has been placed in the embarrassing situation of not being able to ask an increase on the Iowa side until it was informed of the finding of the Illinois commis- sion. The officials felt that they could not ask a 7-cent fare in Iowa if the Illinois board turned down its petition. It also believed that the company could not hope to get a 7-cent fare in Davenport if the Illinois commission awarded only 6 cents on the lines in Illinois. It had to wait until the Illinois board returned a verdict so that, if an in- creased rate were granted, the same rate could be asked in Iowa. It was at first believed that the rate in Iowa would be determined by a special election in Davenport. The company's attorneys, however, found in the Davenport franchise a provision which enables the City Council to change the passenger fare. Officials of the Tri-City Railway then presented their case in preliminary form before the Council of Davenport, notifying that body that it would ask in Daven- port the same rate that the Public Util- ity Commission of Illinois granted. Company Makes Statement The Illinois commission, however, has as yet made no decision, so the railway company has its hands tied, waiting for word from Springfield. On June 20 the company, in a state- ment from J. G. Huntoon, vice-presi- dent and general manager, called the Illinois board's attention to its embar- rassing situation, reviewed its labor trouble, emphasized for the commis- sion's benefit the fact that the fare sit- uation was holding up a settlement of its labor trouble, and stated that its financial condition demanded an imme- diate increase in revenue if the com- pany v/as to be kept out of the hands of a receiver. In conclusion the com- pany made an earnest plea for a speedy decision of the case. In this statement Mr. Huntoon said: Had these companies (Tri-City Railway of Iowa, Tri-City Railway of Illinois, and Moline, Rock Island & Eastern Traction Company) not been allied with a strong holding company organization (United Light & Railways Company), which has been able and so far willing to finance their need for new capital, to give them the advantage of holding company con- tracts at more favorable prices for mate- rials than would have been posssible under unit management, and to provide the best of management for their operation, they severally would have long since been com- pelled to resort to the bankruptcy courts for relief. The company closed its appeal with the request of a prompt decision to enable it to put into eff'ect at once "such street car fares as will enable us, in your judgment ... to realize an income sufficient to enable us to pay our legitimate operating expenses . . . plus a proper reserve for de- preciation and a reasonable return upon the fair value of our properties." The statement was accompanied by an exhibit showing the financial con- dition of the companies. Seven-Cent Fare Predicted for Youngstown The predictions of William L. Sause, Street Railway Commissioner, are to the eff'ect that the fare of the lines of the Mahoning & Shenango Railway and Transit Company at Youngstown, Ohio, will go to 7 cents on Aug. 1, under the recently enacted service-at-cost grant. On June 1 the stabilizing fund, which is the barometer for the rate of fare, dropped below the required $50,000 and the rate of fare was automatically in- creased to 6 cents and nine tickets for 50 cents. The increase in operating expense from 22 cents to 27 cents a car-mile, recently granted, was retro- active to May 1 and the allowance for May was $14,853 more than it would otherwise have been. The operating report for May shows receipts of $117,238. Deductions for operating and maintenance were $104,- 978, leaving a balance of $12,259. This amount was transferred to the stabil- izing fund. From this fund was de- ducted $32,796, used in paying return on capital and taxes, leaving $47,070. Under the 27 cents per car-mile the company operated during May at a deficit of $424 and under the 5-cent maintenance allowance there was a deficit of $703, making a total deficit of $1,127. These figures show the reason for Mr. Sause's prediction that another increase in the rate of fare will have to be made. Reports show that operation is costing more than the allowances, even as advanced, and the income, which is guaranteed, must be enough to prevent deficits. Fare Contest Expected strong Opposition Before Commission to Ten-Cent Cash Fare in Pitts- burgh Seems Certain Physical valuation of the properties of the Pittsburgh (Pa.) Railways, looked forward to for more than a year as a possible basis for final adjustment of the tangle in which that unfortunate corporation finds itself, probably will be a leading factor in the contest ovei the fare increase announced recently by the receivers, when the protest of the representatives of the city is heard by the members of the Public Service Commission within the next two weeks. Engineers Now Making Valuation Five engineers have been engaged in making physical valuation of the Pitts- burgh traction lines ever since the com- promise agreement reached between the city and the company early in 1918 when the fare was advanced to 5% cents. On July 7 Chairman W. D. B. Ainey, of the Public Service Commis- sion, announced that the commission expected to complete its task in time to report before the new fare increase hearing. This announcement was received with great interest by holders of the securities of the Pittsburgh Railways, who regard it as presaging the next step in the development of a way out of the company's difficulties. All in- terests involved have been marking time, practically, since the properties were turned over to the receivers, it being desirable, of course, before at- tempting to proceed with the reorgani- zation of the company to have a valua- tion as a guide. The appointment of the valuation commission, comprising two represen- tatives of the company, two of the city and the surrounding boroughs, and one of the Public Service Commission, was one of the items of the 1918 compro- mise agreement, it being understood that the value set upon the properties should constitute the basis of future tariff changes. Its existence probably has contributed fortuitously to an ear- lier final adjustment of the company's difficulties, as it was well along with its work when the federal court named receivers. Ten-Cent Cash Fare Proposed The fare increase, which is to be con- tested before the Public Service Com- mission, is from the present 5 and 7- cent rate to a straight IV2 cent fare by ticket and a 10-cent cash fare, effective on Aug. 1. A detailed account of the announcement made by the company with respect to the establishment of the new fare tariff was published in the issue of the Electric Railway Journal of June 28, page 1293. A slight extension of the transfer privilege will accompany the proposed new fare. Rebate slips will be attached to tickets sold under the new rates and given to payers of cash fares. 94 Electric Railway Journal Vol. 54, No. 2 Two Cents for Transfers in New York Commissioner Nixon Hopes Companies Will Relinquish Long-Term Franchise and City Consent to Flexible Fare Public Service Commissioner Lewis Nixon announced, on July 7, that he would issue an order r^ranting Job E. Hedges, as receiver of the New York Railways, authority to charge 2 cents for transfers at ninety-nine of the 113 points of the railway system through- out the city of New York where trans- fers heretofore have been given free. Receiver Hedges had asked for authority to charge 3 cents for such transfers. Commissioner Nixon announced his de- cision, as follows: The receiver who makes this appli- cation is an arm of the Federal Court. He has appeared before this commission, stat- ing in substance that if some immediate relief is not granted he will be compelled to disintegrate the lines under his control. Such a course, if possible, should be avoided. Having in mind the interests ot the city and its taxpayers, the commission has resolved to grant the receiver tempo- rarily a measure of the relief which he seeks. It has determined to empower him to charge 2 cents for transfers at points where he is legally entitled to charge for them. This relief, as stated, is temporary. The order will continue in force for one year. That will enable the city in the meantime to make the necessary appraisals. If at the end of six months the city is not satis- fied with the appraisal of the receiver, it is authorized to apply to have this proceeding reopened. This hearing, therefore, is ad- journed to July 7, 1920. This order is made upon condition that the lines of this com- pany are not disintegrated. If they are disintegrated by order of Judge Mayer, this commission will make such further order as the situation demands. Counsel for the respective parties will agree upon the form of the order. Later Commissioner Nixon issued a statement in which he reviewed the finances of the New York Railways at length, and the necessity for the ap- pointment of a receiver. He said: This case concerns the application of tlie receiver of the New York Railways Company to charge 3 cents for transfers at all intersections of lines where there are no specific requirements by local fran- chise to furnish free transfers. It is really a continuation of the application of the New York Railways in April, 1917, Case No. 2212, where the company asked for a charge of 2 cents for transfers. Dur- ing the pendency of the application the Court of Appeals decided in the Quimby case that the Legislature had not given the commission power to increase street rail- way charges above those fixed by local franchises. In line with this decision, the commis- sion held in the Third Avenue Railway case. No. 2211, also an application for a charge of 2 cents for transfers, that Its power to grant the desired relief was limited by local franchise provisions, which fixed the maximum single fare at 5 cents, and pointed out that relief must be sought from the city as represented by the Board of Estimate and Apportionment. Follow- ing this declaration, the New York Rail- ways did not pursue its application in Case No. 2212, but turned to the city for a modification of the franchise restrictions. Wlien the city did not act upon the applica- tion, the company again turned to the com- mission, which body as then constituted went out of office before action was rendered. The case of the company was pre- sented to the commission as a matter of great emei'gency, and it was so con- sidered by the commission. The prop- erty has been operated by a receiver since March 20, 1919, and there is a motion before Judge Julius M. Mayer in the United States District Court for the Southern District of New York to separate some of the leased lines on account of default in the payment of rent. The case was presented by counsel of the receiver fro n the stand- point that if no financial rel ef was granted the court would authorize the separation of the property, but that with relief the present system may be maintained. Commissioner Nixon pointed out that the greater portion of the case befor? Judge Mayer had been presented on th3 basis of operating results for the six months endfd March 31, 1919, and he said that for these six months the operating income above operating ex- penses and taxes, exclusive of any al- lowance for reserves, amounted to $200,000 in round figures, and that, ac- cordingly, the earning power of the company at present fares had been set at about $400,000 a year. He con- tinued: Testimony was presented showing that a 3 -cent charge for transfers would bring a maximum additional revenue of $900,000 a year, so that if the application be granted the company would have available a total income al>ove operating expenses and taxes of about $1,300,000 a year. This would be far from being an adequate return on the investment. It would not even be sufii- cient to pay rents on the leased properties, but would enable the receiver to pay the rentals on the most important lines and thus keep the heart of the present New York Railways system together. Counsel for the receiver believes that if only the least profitable lines were now cut off from tlie system the owners would finally be comjielled to accept a substantial reduction in their present rentals and the properties could ultimately be brought back into the system with greatly reduced rent charges. The present operating condition of the company was so presented that conclusions might Ije misleading. While tlie income above operating expenses and taxes for the six months ended March 31, 1919, amounted to only $200,000, this does not properly show a present earning power of only $400,000 a year. Stating the op- erating results separately by months, it appears that the low return of only $200,- 000 for six months was due to the very e.Kceptional months of October, November and December, when traffic was demoral- ized on account of the influenza. The commissioner stated that in Jan- uary operating conditions began to im- prove and in March, the last of the six months period, the net earnings above operating expenses and taxes amounted to $109,238, or over 50 per cent of the total for the entire six months. For April, he said, the net earnings were $188,865, for May the gross receipts were about $34,000 greater than for April, while in June they were about $5,000 less. Figures for operating ex- penses and taxes for these two months, he said, were not available, but if they were in the same proportion as for April the net earnings above operating ex- penses would be about the same as for April. Mr. Nixon then said: April is considered a typical or average month of the year. Its gross receipts are not the greatest of the year, but about normal, as are the expenses. If. then, the .\pril results for this year be taken as reijresenting what may reasonably be ex- pected during the next year, we have re- sultant net earnings in excess of $400,000 per year. On the other hand, the commis- sion realizes that maintenance of the property has probably not been adequate because of lack of resources, that there has been no allowance for reserves, which should properly be made, and that huge present obligations exist that must be paid. The commission is thoroughly convinced that in spite of the great improvements in operating conditions since the beginning of the year the company is not now earning and is not likely to earn a fair return upon its investment, if indeed it will hereafter be able to earn even rentals on leased lines. The commission, after careful con- sideration of all the facts, has decided to grant conditionally a charge of 2 cents for transfers. Average Return Not 6 Pe.i Cent Commissioner Nixon said that on the basis of the return to the State Tax Commission it is shown that the aver- age return since the reorganization of the company in 1912 has been under 6 per cent, and during the last year has been far below fixed charges. The com- missioner said in closing: The case, however, is not a simple one in spite of the company's financial diffi- culties. I believe that, except where there are specific requirements for free trans- fers at intersections of two lines, the com- mission possesses ample authority to deal with transfers as may seem reasonable under the circumstances, and I am now acting according to this view. My decision is this : I shall allow a cliarge of 2 cents for transfers at all lioints e.xcept where free transfers are now legally required. But this permission shall extend only to July 7, 1920, and is further conditioned upon the entire New York Railways system being kept together as at present constituted. Under ordinary circumstances I should consider a charge for transfers as wholly unreasonable, re- sulting in gross discrimination between dif- ferent classes of passengers and different parts of the city and in establishing a dis- jointed system of rates. But in the present case the choice is between an unreasonable system of rates and dissolution of tlie service. Which of these evils will cause the greater incon- venience to the public? The answer, to my mind, is clear, and I therefore seek to maintain the unity of the present system at the cost of a very unsatisifactory method of charging for service. Move to Gain Time The charge for transfers becomes rea- sonable only because it would be more un- reasonable to permit th? collapse of the service. My thought in limiting the in- crease to one year is in part to await fur- ther traffic development, but chiefly to make possible a satisfactory permanent settlement between the companies and the city. The present franchise under which the company operates is unreasonable in two respects : first, restrictions on fare, and, second, the permanent or long-time rights granted in the streets. Neither restriction nor privilege is justifiable. Both should go, the one with the other. My desire in granting temporary relief is to obtain suffi- cient time to get these adjustments. I hope that the city may be prevailed upon to consent to a flexible fare, while the company or the various financial In- terests will, in turn, give up their long- time or permanent rights to the streets. If these two things be accomplished it would then not be difficult to determine the value of the property and to fix rea- sonable rates. The city would then have the way clear for any transportation policy that may seem reasonable in the future, while the company would have safeguarded its investment. But unless the two things be accomplished there can be no final sat- isfactory settlement. In the end the charge for transfers would prove unsatisfactory and probably unworkable. It is justified only as a financial makeshift to gain time for settlement along proper lines. Mayor Hylan immediately announced that he was opposed to abolishing the transfers in any part of the city, as that would mean an increase in fare and would place additional burdens on the people. In consequence it is ex- pected that the city through Counsel Burr will seek to obtain a restraining order from the courts in a test case to determine whether Mr. Nixon has the right to allow a charge for trans- fers. It is said that Mr. Burr will contend that the city has not been given ample opportunity to prove that a charge for transfers is unnecessary. Juhj 12, 1919 Electric Railway Journal 95 It was announced on July 9 that taken with him the papers in the Brook- the order of Mr. Nixon, authorizing a charge for transfers, would not be for- mally entered for a day or two. Mr. Nixon left the city on July 8 on a two weeks' vacation and is said to have lyn Rapid Transit rate case. He is quoted as saying that he intended to study the situation carefully and might be prepared to make a decision with respect to Brooklyn within a week. Denver Sorely Tried Enforced Fare Reduction, Court Decision on Commission Jurisdiction, Reduction in Wages, Strike and Other Complications A decision by the Supreme Court of Colorado rendered on July 7 on re- hearing reaffirms the court's foriner decision in the case of the city of Den- ver against the Mountain States Tele- phone & Telegraph Company giving jurisdiction over the utilities in the home rule cities in that State to the municipal authorities. As in January last, when the original decision was rendered, the court on July 7 held that the sole power to regulate rates is vested in the people and that in home rule cities the Public Utilities Commis- sion has no jurisdiction. Five-Cent Fares Restored The 6-cent fare ordinance in Denver was repealed effective on July 5, re- ducing the fare on the lines of the Denver Tramway to 5 cents. On July 7 the tramway announced a reduction in service, abandoning entirely or par- : tially eight lines, installing stub line service on six others and cutting the schedules materially on twelve addi- tional lines. Only eight or nine lines are unaffected by the service reduction. The railway also notified the em- ployees that the 1917 wage scale would be effective from July 8, trainmen's rate being 30 cents the first year, 32 cents the second year and 34 cents thereafter. On Monday night, July 7, the City Council passed on first reading an ordi- nance allowing jitneys to operate at a 5-cent fare on prescribed routes and schedules for a period of ninety days. This measure cannot become a law until the week ended July 19. At midnight on July 7 the employees voted 976 to 2 to strike at 4 a.m. on Tuesday, July 8. In consequence, on July 10 nothing but mail cars and milk cars were operating in the city. The interurban cars are being operated by union men to the city limits as no fare or wage reduction was made on the in- terurbans. Jitneys Operating Without License On July 8 the Mayor authorized the jitneys to operate without schedules on certain routes for a 5-cent fare. About 370 dollar jitney licenses had been taken out up to July 19. The Mayor the same morning stated that the electric railway was no longer necessary to the city, and that motor buses would give adequate service per- manently for a 5-cent fare. Business men report 50 per cent losses in local business. The tramway adjustment committee of fifty-five citizens, which was ap- pointed in January by the Mayor and which recently recommended service-at- cost operation, met on July 8 to work out a solution of the problem on the basis of their previously-advocated set- tlement plan, referred to in the Elec- tric Railway Journal for June 14, page 1183. The Mayor on July 10 in- timated that he would not oppose an initiated petition for a 6 or 7-cent fare to be referred to the people if the com- pany would pay the expenses of the special election. The company has made repeated at- tempts to operate cars with company officials and supervisors, but it was blocked by the strikers although there was no violence. F. W. Hild, general manager of the railway, has announced that no professional strike breakers will be imported at present to operate the cars. He is advertising for men, but is offering only the 1917 wage scale. More than 1200 out of 1400 employees are on strike from every department of the railway except the power house and the general offices. Men Make New Demands The jitney service is inadequate and the unlicensed jitneys are charging 10 cents to 31.50 to haul passengers. On July 9 local union No. 746 pre- sented a contract to the company pro- viding for a closed shop and a 60, 65, 70-cent wage scale for trainmen with proportionate increases for all other employees. No action was taken on this by the management. The Mayor charges collusion on the strike between the strikers and the com- pany. This the management denies flatly, stating the strike to be the in- evitable and prophesied consequence of the Mayor carrying out his election platform promising a 5-cent fare. Five Cents for a Month The Grand Rapids (Mich.) Railway returned to a 5-cent fare on July 1 for an experimental period of one month. That the company would do this was noted previously in the Electric Rail- way Journal. The conditions under which operation will be carried out for July are reviewed in a letter of Benja- min H. Hanchett, president of the com- pany, to the City Commission. In this letter Mr. Hanchett said : In accordance with the understanding at a meeting of your lionorable body held on June 12, when this company agreed to put into effect, for the month of .July, the 5-cent fare, and discontinue the 6-cent fare, as authorized by the ordinance passed Nov, 4, 1918, orders have been issued to the conductors to begin collection of a S-cent fare on July 1, and to continue during the month of July, to test out the question whether the earnings of the company on this rate of fare will be sufficient to care for the operating and other necessary ex- penses. Notices have also been placed in ali the cars, as requested by your resolution, passed on June HI and the public has Ijeen advised through the newspapers that the 5-eent fare raif would be in effect for the month of July as above. This company will furnisli from its cashier's office a sworn statement of the car earnings daily, compared with the same week of the previous year, that is. the days of the week will be used in compari- sons, and also a schedule of all cars oper- ated on the various lines from 6 o'clock in the morning until the last car at night. Both of these statements will be sent*to the City Manager for the information of the special committee having the matter in hand, and also for the information of any of the commissioners who may be inter- ested in knowing how the 5-cent fare is working, as compared with last year. These statements of the car earnings will show the percentages of increase for each day in the month of July, The company will be willing to have a daily inspection of the earnings as well as the car service reports and will co-operate to this end in any way it may suit the pleasure of your honorable body. Louisville Suburban Rates Revised Reduced rates on all lines of the Louisville & Interurban Railway, Louis- ville, Ky., will go into effect on Aug. 1. This action is the result of an agree- ment between the railway and the Sub- urban Protective Association reached before the State Railroad Commission at a joint meeting on June 24. Under the new agreement, single- trip fares on the five Beargrass lines will be computed on the basis of 2i cents a mile; on the Lagrange and Shelbyville lines fares will be charged at the rate of 21 cents a mile. Round- trip tickets from all points where such tariffs have been arranged will be sold by conductors on all cars without extra charge to passengers. In the future, twenty-trip commuters' books will be sold at the rate of 2 cents a mile, except where book fares average more than the round-trip fare. In such a case the lowest fare will prevail. Commuters' books for the full month on the Lagrange and Shelbyville lines will contain sixty-two tickets instead of fifty-four, allowing for Sunday travel on these books in the future. A minimum fare of 6 cents will be charged on all lines. The minimum fare heretofore has been 5 cents. Books for school children on all lines will contain forty-trip tickets and will be sold at the same rate as prevailed prior to the tariff changes July 1, 1918. Recently, these books for school chil- dren contained forty-six tickets, which had to be used during the month in which the book was purchased. The forty-trip ticket books may be used dur- ing any month of the school year, and unused tickets are redeemable. The new fare scheme, as announced by Chairman Finn, of the commission, shows large reductions over the scale of cash fares now in existence. The reduction on the Beargrass lines will amount to 161 per cent; on the La- grange and Shelbyville roads 8J per cent. On all lines the commuters' book rates will be lowered approximately 25 per cent. 96 Electric Railway Journal Vol. 54, No. 2 In order that a check may be kept on operations under the new schedule of fares, the railway will make a monthly report to the State Commis- sion. The figures thus forwarded will be compared with corresponding months of 1917 and 1918. The revised rates could not be put into effect on July 1 because of the many new ticket forms which will of necessity have to be printed. Jitney Regulation Proposed for Kansas City The City Council of Kansas City, Mo., is considering ordinances for the regulation of jitney traffic. There are this summer fully 800 jitneys on Kan- sas City streets, of which about forty are large buses. The jitney drivers have an organization which from time to time has promised co-operation in such regulation as will provide the public with more regular and reliable service, and with protection against the many hazards involved in the operation of jitneys. So far, however, the chief activity of the organization has been to fight ordinances for regulation. A regulatory ordinance was passed by the lower house of the City Council on June 30, which required bonds, limited the parking privileges, and otherwise curtailed the liberties the jit- ney operators have enjoyed. Another ordinance has been introduced in the Council, which will be heard soon, re- quiring jitneys to maintain scheduled runs all day, and extend their service further into the suburbs. Jitney organization men say that they have not been able to secure bonds, the requirements of private com- panies for bonding being prohibitive. As an alternative, there is talk of some form of mutual insurance among the local owners themselves. Stockholders Asked to Aid in Fare Campaign Out in Columbus, Ohio, the voters are to be asked on Aug. 12 to approve the ordinance passed by the City Coun- cil granting an increase in fare from eight tickets for 25 cents to six tickets for 25 cents. As part of its campaign in behalf of the increase the company will put to a practical trial the sug- gestion made in an editorial in the Electric Railway Journal of June 28 by appealing to its stockholders in Columbus for help. The letter to the owners of the securities of the com- pany, signed by P. V. Burington, secre- tary, follows: An increase in rate of fare is of vital importance to all stockholders of the com- pany. The City Council has passed an ordinance g-ranting an increase from eight ticlcets for 25 cents to six tickets for 25 cents. Before becoming effective a referendum vote of the people is to be had at the primary election to be held on Aug. 12, 1919. WTiether the ordinance shall be sustained or defeated, is largely up to you and your efforts with other fair-minded citizens in voting to sustain the ordinance. Tlie need of an increase to maintain the service properly and protect the company is beyond question, and though small, the proposed increase will help. Be sure to place the importance of voting right in this matter plainly before all voters with whom you may be associated or come in contact. You can do much between now and Aug. 12 to secure this measure of relief liy personal touch with voters. ' If convenient, I would be glad to hear from you in this matter. Court Sustains Fare Emergency The Supreme Court of Wisconsin has reversed the judgment of the lower court in the La Crosse case in which Judge Stevens held that an emergency did not exist in establishing a 6-cent fare on the lines of the Wisconsin Rail- way, Light & Power Company in that city. The court said: In the instant case the petition was broad enough to cover a proceeding for emergency relief in due course under sec- tion 1797-12, statutes. It is clear from the record that the commission had juris- diction to proceed, and that all parties in- terested were before the court and a full and exhaustive hearing had, and the hear- ing covered all issues in the matter and the procedure was tlie same as in other cases where a general rate hearing is had li,-l'ore the commission. There was ample credible evidence in the record to show tliat the income was not sufficient to pay a reasonable return on the investment after allowing 3 per cent depreciation. It is un- necessary to go into a discussion of the facts and figures in the record, which are very voluminous and which appear to have been carefully considered by the commis- sion. Treating: the order as an order in due course under section 1797-12, it cannot be said that it was either unlawful or un- reasonaljle. The issues involved in this case were reviewed at length in the Electric Railway Journal for April 12, page 759. As explained at that time the Wisconsin Railroad Commission had on Sept. 12, 1918, granted a 6-cent fare in La Crosse upon the ground that an emergency existed because the old rate was insufficient to cover operating ex- penses, taxes and a 7i per cent return on the property value. Judge Stevens on March 21 held, however, that the grant of a higher fare was unlawful because no emergency existed within the meaning of the law. His general argu- ment was that a utility has no right to an emergency rate that would maintain its normal rate of income, and that the fact that a utility has set aside a sub- stantial surplus was one of much weight in determining whether an emergency exists. It is this decision that is now reversed. Seven Cents in Quincy The Quincy (111.) Railway, included in the Illinois Traction system, has been authorized by the Public Service Com- mission of Illinois to increase rates in Quincy. The company has made a con- tract to secure power from the Missis- sippi River Power Company at Quincy. The commission held in this matter that it would not be necessary for the exist- ing power station or equipment to re- tain the service until such time as an opportunity may arise to dispose of it to advantage, and in case of disposition it must be presumed that some sacrifice will have to be made on the part of the Railway, particularly as to the costs of the foundations, connections and other appurtenances which would be unsale- able in the case of the removal of the equipment. The issues on this point were whether the cost of the power station equipment should be included or excluded in the value of the property. It appeared to the commission that the change constituted an economic good for many reasons; that it enabled the utilization of water power that would otherwise go to waste, thus re- sulting in the conservation of fuel. If the value of the power station building and equipment were entirely excluded from the initiation of this improvement and the operating expenses determined solely upon the cost of the purchased energy then it is obvious that no in- centive would exist for the develop- ment of a project of this character. In this case the commission will con- sider the cost of the power plant and equipment depreciated to date as con- tributing to the value of the property and in giving consideration to the equity of the rates for railway service will consider that a sufficient amount must be allowed to amortize property over a reasonable period of time, while at the same time giving the public a portion of the benefits that will accrue from this improvement; and it would appear that ten years would be ample time to effect the amortization. The rates authorized until Dec. 31, 1919, are as follows: For single continuous passage between any two points: Cash fare 7 cents Four tickets 25 cents School children's tickets — good be- tween school hours — forty-ticket book $1 Each Division on Its Own Basis The trustees of the Eastern Massa- chusetts Street Railway, Boston, Mass., on July 1 made effective a new system — -known as the "home rule" system — by which they plan to determine the fare rate on each of the twelve divisions of the road. Under the new plan the manager of each division is held responsible for the service provided on his division. He is to be in charge of accounts, assisted by a clerical force entirely independent of the main office; of complaints and maintenance of service. At frequent intervals the district managers are to issue statements showing receipts and expenditures, in order that patrons in the respective districts may know the operating costs. On these figures will be based the fare rates for the differ- ent lines. The trustees took possession of the property on June 1. An estimate of the earnings and expenses for the previous month under the old system of man- agement indicated a deficit of $300,000. Nothing was earned toward the in- terest charges or the principal of the State-guaranteed bonds. The twelve divisions of the road are in Chelsea, Lynn, Salem, Gloucester, Lowell, Lawrence, Haverhill, Hyde Park, Quincy, Brockton, Taunton and Fall River. July 12, 1919 Electric Railway Joukwal 97 Transportation News Notes Press-ntirig- Valuatiin Testimony. — The League of Municipalities of New Jersey is now engaged in presenting its case with respect to the valuation of the property of the Public Service Railway, New Jersey, for rate-making purposes in connection with the plan suggested by the company for the pro- posed zone-fare system. Six-Cent Fare Sustained. — The Rail- road Commission of Wisconsin has handed down a decision denying the petition of the city of Sheboygan to reduce to 5 cents the 6-cent fare re- cently ordered, and also denying the application of the Eastern Wisconsin Electric Company to make the rate permanent that was ordered as an emergency measure. The commission held that the conditions at present do not warrant the re-establishment of the 5-cent fare at this time. Wage Increase for Municipal Em- ployees.— Wage increases for platform men, track and office employees of the San Francisco (Cal) Municipal Rail- way have been approved by the Board of Public Works and sent to the Board of Supervisors with recommendation that the ordinances fixing the deprecia- tion and accident funds be amended. It is asked that the depreciation fund be decreased from 14 to 12 per cent and the accident fund from 4 to 3 per cent to take care of the proposed wage Increase. Zones for Worcester. — The Worces- ter (Mass.) Telegram of June 30 said: "Plans are being considered by of- ficials of the Worcester Consolidated Street Railway for establishing a 5- cent fare in a general zone which would include parts of Worcester in what might be termed the central section of the city and a 10-cent fare for the re- mainder or outlying districts. In con- nection with the above plan the com- pany officials are also giving considera- tion to the establishment of shorter zones in the suburban lines with a re- duction in fare." Free Rider a Poser. — The finance committee of the City Council of Seat- tle, Wash., has asked Corporation Counsel Meier for an opinion on the question of whether the city's police- men and firemen can be compelled to pay fare on the cars of the Seattle & Rainier Valley Railway. The company has called the attention of the Council to the new tariff granted by the Public Service Commission which makes no provision for carrying policemen and firemen free, but the finance committee is under the impression that the com- pany's franchise provides that these employees shall be carried without charge. Fare on Suburban Line Increased. —The fare on the Westerville line of the Columbus Railway, Power & Light Company, Columbus, Ohio, has been increased from 5h cents to 6 cents per zone. This makes the total fare be- tween Columbus and Westerville and return 42 cents, as a city ticket must be used for fare within the city. There are three zones on the line. The fran- chise under which the company now operates provides for service at cost. Before it was adopted, the round-trip fare from Westerville to the center of Columbus was 25 cents. Another Ten-Cent Road.— The Mid- dlesex & Boston Street Railway, New- tonville, Mass., has again filed with the Public Service Commission a schedule of fares, effective on Aug. 1, which puts the system practically on a 10-cent fare basis. All present 8-cent lines go to 10 cents, as do all but routes "B," "D," and "E" of the 7-cent lines. The three sections remaining unchanged are certain lines through NevHon, Wal- tham, Waverly and Watertovra. Free transfer privilege will be eliminated under the schedule as filed, which pro- poses a charge of 3 cents for each trans- fer issued. Two Sevens Replace Two Fives. — The present fare on the Corry & Colum- bus Traction Company's line between Corry and Columbus, Pa., is 10 cents, namely, two 5-cent fares. It is pro- posed, after July 20, to charge 14 cents, namely two 7-cent fares, with eight tickets for 50 cents. If there is no opposition on the part of the public to the increase and the results under the increased fare justify, the road will be continued in operation, at the rates named. Otherwise another increase will be requested. If the road can not in some way be made to pay, the own- ers are prepared to shut it dovsm. Wants Six-Cent Fare Continued. — Extension indefinitely of authorization for a 6-cent fare is asked by the East St. Louis (111.) Railway in a petition filed with the Public Utilities Commis- sion of Illinois on June 25. On the ap- plication of the company for a 7-cent fare a year ago the commission au- thorized a 6-cent fare until July 31, 1919. The petition now filed points out that the 6-cent fare was allowed last year after the trainmen had been awarded an increase in wages and that these employees are now demanding an additional increase in wages of about 100 per cent. A decision on the wage demand by the War Labor Board is now awaited. Patrons to Decide Skip-Stop Matter. — The skip-stop system in Dallas, Tex., has been abolished on July 1 for a period of three months, during which time the old svstem will be tested and patrons will have an opportunity to compare the two svstems. At the end of the three months it is planned to have a referendum in which the rail- way patrons will express their choice. The railway promises to abide bv the result. The Dallas Railway will keep close check of the cars on the various lines during the three months test period. The office of the Supervisor of Public Utilities of Dallas has also made arrangements to check all the lines of the city to see that the service is kept up to the proper standard. Safety Cars for Galesburg.— The Public Utilities Commission of Illinois has passed an order authorizing the Galesburg Railway, Lighting & Power Company, included in the Illinois Trac- tion System, to operate one-man cars in the city of Galesburg, provided that such cars shall not be operated across railroad crossings unless flagged over the crossings after the car has come to a full stop and a conductor or flag- man has proceeded ahead to view the crossing, the motorman remaining in control of the car. The order of the commission is to apply only to cars especially modeled and equipped with safety appliances for one-man opera- tion. Specifications and descriptions of the proposed type of cars are to be filed with the commission for its ap- proval. Service to Be Resumed in Hastings. — Thomas J. Goodwin, president of the village of Hastings-on-Hudson, an- nounced on July 2 that electric rail- way service from Yonkers to the center of Hastings will probably be resumed soon. The formal consent of the Board of Trustees of the village, giving the Yonkers Railroad a new franchise, has been filed in White Plains with the County Clerk. The new franchise will permit the cars from Yonkers to con- tinue to the corner of Main Street and Warburton Avenue, instead of stopping at the village line, as they have done since the old franchise expired. The Uniontown branch, however, in the northern end of the village, which has torn up its track, will be discontinued. The discontinuance of service in Hast- ings was referred to in the Electric Railway Journal for May 10, page 938. Illinois Traction Increasing Facilities. — New schedules were placed in effect bv the Illinois Traction System, Peoria, 111., on July 6. On the lines between Peoria and Bloomington and Blooming- ton and Decatur the service has been almost doubled, giving an hourlv serv- ice between these cities most of the day as compared to practically a two-hour schedule previously. Few chanees will be made on the Peoria-Springfield-St. Louis line, as sei-vice on this division was maintained at a high level during most of the war period. Two parlor cars will leave Peoria every dav for Snringfield and St, Louis. Traffic on the various divisions of the Illinois Traction System is reported to be in- creasing. The company, itself, re- sumed the handling of ex^^ress June 29. The new department will be known as the Illinois Traction Exnress Com- nanv. It will be in charp-e of C. F. Handshy, assistant general manager. No express has been handled over this system since the Adams Extiress Com- pany was absorbed by the American Railway Exm-ess Company. The com- pany renorts a heavy tonnage of coal this summer. 98 Electric Railway Journal Vol 54, No. 2 Personal Mention New Engineer for Pacific Electric Eugene C. Johnson Made New Chief Engineer for the Pacific Electric Railway, Los Angeles, Cal. Eugene C. Johnson, who has served in the capacity of assistant chief engi- neer in charge of maintenance of way and structures of the Pacific Railway System in Southern California since the vear 1911, was recently appointed chief engineer, vice George E. Pills- bury, who retired on account of ill health. The position of assistant chief engineer has been abolished. Mr. Johnson becomes the active en- gineering head of the system in this new position, having jurisdiction over all track, paving, bonding, signal, bridge and structure manitenance, as well as all new construction, together with full charge of the valuation re- port of the company's entire properties as directed by the California State Railroad Commission during the year 1912. The jurisdiction of his new du- ties covers a trackage of 1092 miles. Mr. Johnson was born on July 16, 1881, at Des Moines, la., and was edu- cated in the public schools at Minne- apolis, Minn. Later he took a pre- paratory course in civil engineering at Armour Institute of Technology of Chicago, 111., and upon graduation from the Armour Institute he entered Cornell University. In 1905 he was graduated from Cornell University with the degree of civil engineer. In 1905 he was engaged as assistant engineer of the Buffalo Terminal Division of the Delaware, Lackawanna & Western Railroad. In 1906 he ac- cepted the position of terminal en- gineer of the Western Pacific Rail- road at San Francisco. During his work for the last-mentioned company Mr. Johnson had more or less to do with the Southern Pacific construction work of the Bay Shore Cut-off. In 1908 Mr. Johnson was recom- mended to the Los Angeles Pacific Company to handle the construction of two large and difficult tunnels for the Los Angeles Pacific Company's lines in the city of Los Angeles, these being known as an extension of the Hill Street line to afford a more accessable route for penetrating the Hollywood district. Upon the completion of this tunnel construction in 1909, Mr. John- son took charge of the Arizona Eastern Railroad's construction of its Gila Can- yon Cut-off line, one of the most diffi- cult pieces of construction the South- ern Pacific had ever undertaken in Arizona. After the completion of this work Mr. Johnson was appointed chief engi- neer of the Los Angeles Pacific Com- pany. This was in 1910. He then continued with that company until the consolidation of the local and inter- urban lines at Los Angeles in 1911 as the Pacific Electric System. Since then he has had charge of maintenance of way and structures of the Pacific Electric Railway with the title of as- sistant chief engineer. Mr. Cameron Resigns Retires As Superintendent of Transpor- tation at St. Louis, After Nineteen Years of Service Bruce Cameron, superintendent of transportation of the United Railways, St. Louis, Mo., has handed his resigna- tion to receiver Rolla Wells. In trans- mitting his resignation Mr. Cameron said in part: In July. ] !(] S. immediately after the ac- tion of the Grand Jury which indicted me, 1 directed a letter to the board of directors of the United Railways telling them I had no conned ion whatever with the theft of URUCE CAMERON llie referendum petitions and did not see how I could be indicted upon tlie testimony of a man named Jackson, who confessed that he did the deed himself, and that I did not wish to embarrass the board in any way whatever and if they thought it was best for the railway for me to discontinue my services with the company to consider that as my resignation, effective at their pleasure. The board did not accept the resignation and I have been continued as superin- tendent of transportation ever since. Recent developments have caused a great deal of unpleasant newspaper comment, and I am quite sure you are in an un- enviable position, hence I do not wish to embarrass you in the least and you may consider this as my resignation as super- intendent of transportation of the United Railways to take effect at your pleasure. I want to repeat, I had no connection with the referendum petitions in any way and future developments will prove this statement. May I ask that you, the public which you represent, as well as the stockholders of the company, reserve your personal opinions until this unfortunate muddle has been cleared up or my innocence established in the courts? I have dealt honestly with every one of the many problems coming to my depart- ment, and, in doing so, have, no doubt, made some enemies. My work has necessarily kept me on the job all of the time and Mrs. Cameron has passed through a year of un.iust and unfair criticism leveled at me, but her faith supports her, as she knows it will come out all right in the end. If at any time you wish to consult with me I am at your service. Bruce Cameron was bom on a farm in Missouri in 1877. After attending public and high schools of Nevada, Mo., he took a course at Fort Worth College, Fort Worth, Texas. His first business adventure was in the asphalt business at Dougherty, I. T. In 1900 he went to St. Louis and was employed by the St. Louis Transit Company in the en- ginering department. Later he was as- signed to the operating department, where he has been continuously since that time. As head of the transportation depart- ment of the United Railways it fell to Mr. Cameron to employ, instnict, train, discipline and commend the men who actually run the cars, also the superin- tendents, supervisors, clerks, dispatch- ers, switchmen, car sweepers and curve cleaners. In the department of which he had charge there are at present ap- proximately 3400 efficient, loyal, capable rnd honest men and women, many of whom have shared in establishing a record of accident reductions for the last eighteen months, the present ratio being twenty-five accidents to 1,000,000 passengers carried. Mr. Cameron per- sonally gave the property the very best that was in him. In fact he worked for the company from fifteen to twenty- four hours a day for nineteen years with only one vacation. Mr. Cameron has had several opportunities to better his condition vdthin the last two years. At present he is taking a much needed vacation. He has not made any definite plans for the future. George Kidd, general manager of the British Columbia Electric Railway, Vancouver, B. C, who left for England on April 12 in connection with affairs of the company, expects to return to Vancouver by Aug. 1. H. O. Buder, assistant superintendent of transportation of the United Rail- ways, St. Louis, Mo., has temporarily been given the duties of superintendent of transportation of the company fol- lowing the recent resignation of Bruce Cameron. R. V. Rose has been appointed su- perintendent of the Niagara Junction Electric Railway, Niagara Falls, N. Y. He succeeds Joseph McSweeney, who has been appointed head of the wel- fare department of the newlv-consoli- dated Niagara Falls Power Company. CoL George Alan Green, who as chief engineer and superintendent of the Fifth Avenue Coach Company, New York, N. Y., operating the buses on Fifth Avenue in that city, is largely respon- sible for the steady improvement and progress of the company, has been ele- vated by the board of directors to be general manager of the company. Col- onel Green recently returned to the company after active service in France in the British Tank Corps. James Watt, Pittsfield, Mass., has been appointed superintendent of equipment of the Hudson Valley Rail- way, Glens Falls, N. Y., succeeding George C. Murray, who resigned to return to Mexico City where he was employed previously. Mr. Watt has been with the Third Avenue Railway, New York, and the Public Service Railway of New Jersey. July 12, 1919 Electric Railway Journal 99 Lieut. Walter A. Neeley, formerly superintendent of the New Jersey & Pennsylvania Traction Company, Tren- ton, N. J., has received his discharge from the army after spending nearly two years overseas. He received severe wounds about the arms and body in the battle of the Argonne Forest and still has one of his wounded arms bandaged. Lieutenant Neely was a member of the old New Jersey National Guard for many years. He resigned from the railroad to enter the army. He will probably resume his old position with the New Jersey & Pennslyvania Trac- tion Company when he recovers entirely from his wounds. Horace E. Allen has been appointed general superintendent of the Saginaw- Bay City Railway, Saginaw, Mich., which includes the local railway sys- tems in both Saginaw and Bay City, and in addition operates an interurban line from Saginaw to Bay City. The Northeastern division of the Michigan Railway, of which Mr. Allen is also in charge, operates through cars from Bay City and Saginaw to Flint and Detroit. Mr. Allen was formerly as- sistant general manager of the Spring- field (111.) Consolidated Railway. Be- fore that he was with the Michigan Railway. After completing the course in electrical engineering at the Massa- chusetts Institute of Technology Mr. Allen accepted a position with the West- inghouse Company at East Pittsburgh and in 1910 became connected with the Toledo Railways & Light Company, serving with that company for six years. George B. Willcutt, secretary of the United Railroads, San Francisco, Cal., and its oldest employee in point of con- tinuous service, has been made vice- president and secretary of the company. Mr. Willcutt is a native of San Fran- cisco, in which city he received his early training and prepared for the Univer- sity of California. While in college he majored in chemistry and after gradua- tion in 1879 taught the subject at the University of California for three years. Leaving his professorship to take up mining, he was an early associate of John Hays Hammond and Henry But- ters. His father, J. L. Willcutt, was at that time general manager of the Market Street Cable Railroad, San Francisco, and in 1886 Mr. Willcutt joined this company as assistant to the general manager. In 1893 there was a consolidation of fourteen or fifteen of the small horse car and cable railways of San Francisco into the Market Street Railway Company and J. L. Willcutt was made secretary and comptroller, with his son as his assistant. In 1900 George B. Willcutt succeeded his father, who wished to retire from active life, and since that time has held the position of secretary and comptroller, being re- elected to the same office in 1902, when the United Railroads of San Francisco was formed. He has been a directo" of the company since 1907 and is con- sidered perhaps the highest authority on the history of street railways in San Francisco. He has an intimate ac- quaintance with the many changes that have occurred during the past two dec- ades and his service to the company is of inestimable value on this account alone. Mr. Buffe Made Manager Former Assistant to President at Kan- sas City Succeeds Mr. Gibson — Other Departmental Changes F. G. Buffe, connected with the Kan- sas City (Mo.) Railways since August, 1917, has been appointed general man- ager of the company, effective from July 1. Mr. Buffe had been acting in this capacity since the resignation of James E. Gibson, who had been general manager since the reorganization of the company. Following the appointment of Mr. Buffe, readjustments were made in the personnel, with the end in view of closer co-ordination and a reduction in the channels through which reports reach the officers of the company. Mr. Buffe had been assistant to the Presi- dent P. J. Kealy for more than eighteen months. F. G. BUFFE A. E. Harvey, who has been super- intendent of ways and structures, has been appointed chief engineer, in charge of ways and structures, and the electrical distribution system is added to his responsibilities. He will report to the general manager. S. H. Grauten, electrical engineer, will report to Mr. Harvey. H. W. Smith, now assistant super- intendent of ways and structures, be- comes engineer with this subject in charge. In the shop department George J. Smith, superintendent, will have the assistance of Henry S. Day, equipment engineer. Mr. Day will have particu- lar charge of details of inspection, maintenance and division repairs. W. C. Harrington, formerly super- intendent of equipment, will be super- visor of division repairs. Mr. Harring- ton will report direct to the equipment engineer. Mr. Buffe, the new general manager of the Kansas City Railways, was born on Sept. 5, 1881. He was graduated from Illinois Wesleyan University, Blooming- ton, 111., and did newspaper work in Denver, Col., and Peoria, 111. He was formerly managing editor of the Peoria Heruld-T yanscript . In 1909 he became connected with the Illinois Traction System, as manager of the department of publicity which he installed. Later he served as special representative for H. E. Chubbuck, vice-president execu- tive of that company, in connection with franchise and public service com- mission work. Mr. Buffe entered the service of the Kansas City Railways in August, 1917, for work in connec- tion with labor matters, and also served in the educational work of the utilities of the State of Missouri on the relations of these companies to the public. He was made assistant to President P. J. Kealy on Jan. 1, 1918. Upon the resignation recently of James E. Gibson as general manager, Mr. Buffe was made acting general man- ager. Mr. Day is a new man in the Kansas City Railways organization. After service with the Boston (Mass.) Elev- ated Railway, Mr. Day spent several years with the Westinghouse Electric & Manufacturing Company, specializ- ing on railway equipment. He had charge of all electrical equipment in connection with the electrification of the New York, New Haven & Hartford Railroad, and was in complete charge of the shops, inspection and maintenance work for this company. He has re- cently returned from France, where he served as captain of engineers. He also served with Sanderson & Porter, New York, N. Y., on valuation work. C. C. Bullock has been appointed su- perintendent, of transportation of Shreveport (La.) Railways to succeed J. W. Robertson, who resigned to ac- cept a similar position with the Shef- field (Ala.) Company, operating the railway in Sheffield. Mr. Bullock en- tered electi-ic railway work as a con- ductor with the company in 1910. Some years later he became night dispatch- er, serving in this position during the winter months, and as assistant sec- retary for the local baseball club dur- ing baseball season in summer months. Obituary John F. Merriam, seventy-one years of age, died on July 1 at his home in St. Joseph, Mo. About 1870 Mr. Mer- riam acquired an interest in the Citi- zen's Street Railway which operated on South Eleventh Street, St. Joseph. He served as superintendent of the line. The franchise of the company was purchased in 1888 by the People's Electric Railway and Mr. Merriam re- tired from railway work to devote him- self to banking and traveling. Manufadures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER, SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS Rail Inquiries Continue Favorable Showing Under Curtailed Production, Rush of Orders from Railroads Would Lengthen Shipments Conditions in the rail mills are be- coming better. Better orders for rails are coming in from domestic consum- ers, but the principal increase in orders is from abroad. Inquiries, too, are in larger volume, not only in number of orders, but also in size of order. The recent government order for 200,000 tons of rails has had little effect on rolling mills. The order was so split up among producers that it resulted in merely a mouthful per mill compared with normal orders. There seems to be no foundation to the rumored further order on the govern- ment's account for 300,000 tons of rails at this time. Manufacturers state that the withholding of the rail orders causes more injury to railroads than it does to the rail mills. This, of course, is true of the electric railways as well. Immediate Shipments Now Mills are operating at between 40 and 50 per cent of capacity, producers state. No stocks of rails can be made up in advance of the ordering, which manufacturers feel sure will soon come in, because of the number of different sections required by the various types of railways. It is expected that when ordering does start in it will be in large volume and for a great part all at once. At that time shipments will be ex- tended to long periods. For the pres- ent, shipments can be made immediate- ly. All orders are about completed. Export orders are looking up. The British mills have capacity well below demand and are not in a way to pro- duce rails to compete in price or deliv- ery with American rails. Manufac- turers of steel products in Great Brit- ain are studying American methods of production with a view to the adoption of measures that will reduce the pres- ent high costs of British manufacture. Glasgow has recently purchased 5000 tons of street railway rails from Amer- ica. The lowest British offer was given at £19 Is. 3d. per ton. The reported American quotation of £17 9s. is be- lieved to be too low, but it was under £19. Great Britain has done little electric railway work in five years, and her rail condition is seriously in need of care. Japan is reported in the market for 5000 tons of rails, although she only recently purchased 30,000 tons. France is in need of 5000 tons of rails and a like tonnage of other steel, while Spain is inquiring for axles, wheels and other equipment. Brazil also is extending railroads. These are merely indications or rail activity, and ex- pected further export orders will have their effect on the already curtailed rail mill production and shipments. Prices are holding firm for domestic consumption at the rate suggested the latter part of April, but thei'e is a tendency upward with other steel products. Fare Box Inquiries on the Increase Buying of New Boxes and for Changes Expected When Commissions Grant Relief Many inquiries are in the field and several orders for small numbers of fare boxes are in manufacturers' hands. Traction companies in many cases feel that the period of higher fares is drawing closer, and they are getting information on new fare boxes and* the work necessary to equip pres- ent boxes to handle different coins in advance of this change. Many of the inquiries concern applications of metal tokens. Actual buying of this equipment is being put off, it is stated, owing to un- certainty about the possibility of get- ting the desired increase in fare or doubt as to the permanency of any higher fare that might be obtained just now. Too long holding off of ordering, manufacturers say, will result in con- gestion of manufacturing conditions and shipments and will hold up deliver- ies for some time. There are lots of orders ready to come through, they say, and when relief is assured the railways will release them in considerable num- bers. No recent change in prices has been reported. The tendency, sales represen- tatives state, is upward, along with other railway material. It is expected that charge for trans- fers, such as it seems is about to go through for the New York Railways Company, will not require fare box changes, as it can be made merely a matter of the issue of a transfer by the conductor and the receipt by him of the pennies. Crossarms Higher Price increases have just gone into effect, although at this vsrriting the amount of increase is not available. It will probably be in the nature of a 10 to 15 per cent rise. Stocks are in quan- tity to make good deliveries. No Price Drop in Glass Expected Curtailed Production and Increasing Domestic and Foreign Demand Will Probably Keep Stocks Low The market for window glass has increased considerably in the last few weeks. In the agreement whereby one- half of the factories should work from December to the latter part of May and the other half from August to December, there is a belief among the trade that present consumption and that expected in the fall and winter, will so reduce stocks that longer pe- riods of production could have been permitted. Probably two-thirds of the year's production is already in storage. Man- ufacturers have a large part of this in stock, although dealers and jobbers are fast taking on large stocks for their own use. Jobbers' stocks, however,, it is stated, are not yet in sufficient quantity to meet all demands. Manufacturers can make immediate deliveries on most common grades of window glass, although there is one instance where no deliveries under thirty days can be made. Carload lots have been set down at sixty days. For some of the thicker sizes, around 22. to 29 ounces, deliveries are running from three to six months. This is be- cause of the heavy automobile top de- mand which the glass factories cannot supply in a short time with their pres- ent capacity. Prices on window glass have been holding firm for some time and no in- timation has been given by manufac- turers that there will be any reduction this year. For single strength, first three brackets, A and B quality, New York discount still holds at 80 per cent, while double strength, all sizes, AA quality, has an 81 per cent. New York discount. Although fall production will start up in August, present building de- mands, both domestic and foreign, deal- ers state, will take a large proportion of the window glass stock and produc- tion. The export demand in particular is in creasing to a great extent. The glass factories of France and Belgium are not yet in a position to supply the needs of those countries and, according to present indications, will not be for a long time, so that stocks in this coun- try naturally will be drawn upon to a large degree to fill their require- ments. The result to domestic consum- ers, it is stated by the trade, will be longer deliveries and, if stocks get much smaller, possible higher prices. July 12, 1919 Electric Railway Journal 101 Copper and Brass Products Hold- ing Firm for the Present Copper continues its advance, and at this writing is quoted at 20 cents a pound spot delivery. Copper and brass products which went up a cent a week ago have not undergone any further advance, although such advances are not expected. No increase has been noted in the price of commutator bars nor field and armature coils during the recent ascent of copper, but it is likely that price changes in this class of maintenance equipment will follow. Among orders for armature coils there is found one for about $80,000 in the New York district. Rolling Stock Delta Light & Traction Company, Greenville, Miss., has purchased two cars for early delivery. Arkansas Valley Interurban Railway, Wichita, Kan., expects to equip its lim- ited cars with heavier type motors to cut down the running time between Wichita and Hutchinson. Additional standard freight cars will also be needed by this company. Georgia Railway & Power Company, Atlanta, Ga., has ordered from the American Car Company for October de- livery fifteen new cars, seating 51 peo- ple each, with center-entrance doors opening very little above street level. These will be the first cars of this type to be seen in Atlanta, though they al- ready have been tried in a number of other cities and have proved vei-y suc- cessful. The new cars will be turtle- back, like the latest pay-as-you-enter cars built in Atlanta. They will have steel sides and steel reinforced timber underframing. They will be double ended, with nq bulkhead at either end and no difference of level between plat- form space and car floor. The motor- man will have his own enclosure shut off from the rest of the car. The cost of these new cars is given as $9,000 each delivered. San Francisco - Oakland Terminal Railways, Oakland, Cal., recently placed upon its lines a new street car which was built in its own shops from mate- rial bought in Oakland. It is knovra as double end drop platform with monitor roof and is divided into two compart- ments, one compartment for smoking, occupying about one-third of the car. The seats are transverse reversible and of spring rattan. Its length is forty- eight feet, width nine feet, and has large commodious platforms. The framing of the car is steel throughout, with the exception of the roof, which is wood and steel combined. The latest system of lighting is installed, with opal shades. The interior of the car is finished in Spanish cedar, natural fin- ish. The car seats fifty-two people and operates on the College Avenue line. The directors have authorized the build- ing of seventeen additional cars similar in all respects to this one. Recent Incorporations Sistersville & New Martinsville Traction Company, Sistersville, W. Va. — The Sistersville & New Martinsville Traction Company and the West Vir- ginia Power Company have been incor- porated with a capital stock of $500,- 000 as successor companies to the Union Traction Company and the Sis- tersville Electric Light & Power Com- pany. The extension of the road above New Martinsville to Clarington or Moundsville is contemplated. Impor- tant improvements are also being- worked out for Paden Park, which will make it one of the most popular and convenient pleasure resorts in that part of the Ohio Valley. Incorporators: R. Broadwater, W. J. McCoy, Nell Burns, W. R. Reitz and E. C. King, all of Sis- tersville. Franchises Little Rock, Ark. — L. Garrott has asked the City Council of Little Rock for an extension of his franchise to construct a line from Little Rock to Hot Springs. Miami, Fla. — The Dade County Com- missioners have granted a thirty-year franchise to the Miami Beach Electric Company to operate a street car line over the causeway. It is stipulated that within four months after the com- pletion of the causeway tracks tut. company shall have constructed anJ i-eady for operation a line extending from the eastern terminus of the cause- way to Miami Avenue, and that within a year it shall have completed and ready for operation a belt line at the beach. Track and Roadway Wichita Railroad & Light Company, Wichita, Kan. — The Wichita Railroad & Light Company has ordered 12,000 new ties to be used th^s year on streets to be paved. Frankford & Shelbyville Traction Company, Shelbyville, Ky. — L. C. Lash- met, secretary and engineer of Wadell and Sons, engineers of New York and Kansas City, who will construct the Frankfort-Shelbyville electric line, has arrived in Louisville to begin work. The last connecting link has been sur- veyed and it is planned to begin con- struction work so as to have it com- pleted January 1, 1920. It was thought that a new bridge over the Kentucky River at Frankfort would be necessary but the present plan is to use the bridge now in service over that stream. (Mar. 8, '19.) Springfield, 111. — It is proposed to construct an electric line between Springfield and Rushville, via Peters- burg and Chandlersville. John Rosen- wienkyle, 2145 North Racine Avenue, Chicago, is reported interested. Boston (Mass.) Elevated Railway. — Work will be begun soon by the city of Boston and the Boston Elevated Rail- way on the paving of Tremont Street from Berkeley and Dover Streets to Northampton Street. The city vntt spend $152,000 on the work and the Boston Elevated will spend $104,000 for its part of the work. New tracks will also be laid by the Boston Elevated Railway on this section. Norwood, Canton & Sharon Street Railway, Sharon, Mass. — A stock com- pany is being organized by F. A. Prince, of Dennet & Prince, Boston, to operate the Noi-wood, Canton & Sharon Street Railway. It is planned to have the road in operation by Aug. 1. Kansas City, Clay County & St. Joseph Railway, Kansas City, Mo. — Right-of-way has been obtained and construction will be begun soon by the Kansas City, Clay County & St. Joseph Railway on its proposed extension from Excelsior Springs to Richmond, about 18 miles. Pittsburgh (Pa.) Railways. — Work will soon be begun by the Pittsburgh Railways on the double-tracking of its line on Chartiers Avenue, Sheraden, at a cost of $103,614. Power Houses, Shops and Buildings East St. Louis & Suburban Railway, East St. Louis, 111.— The East St. Louis & Suburban Railway is in the market for a 60-cycle turbine, switchboard and other electrical equipment to replace material destroyed and damaged by an explosion. St. Joseph Railway, Light, Heat & Power Company, St. Joseph, Mo. — Im- provements and additions to the plant of the St. Joseph Railway, Light, Heat & Power Company planned for the year 1919 will amount to $1,- 250,000. The plans include the instal- lation of three additional 10,000 kw. generators with their boilers and ac- cessories, the installation of one 10,000- kw. turbogenerator with condensers, pumps, switchboard, boiler, stacks and other necessary equipment. Heavy expenditures are planned for next year as well. Interborough Rapid Transit Com- pany, N. Y. — Bids for the eonstniction of eleven stations on the Pelham Bay Park branch of the Seventh Avenue- Lexington Avenue rapid transit line have been asked for by Transit Con- struction Commissioner John H. De- laney. The bids are to be opened on Julv 24, and work is to be completed within six months after the contracts are awarded. The steel work for the Pelham Bay Park branch of the city- owned rapid transit system is already beino: erected, and will be ready for station finish within two months. All of the stations are located above ground, and it is estimated the work will cost $650,000. 102 Electric Railway Journal Vol. 54, No. 2 Trade Notes E. T. Causer has recently resigned as works manager of the R. D. Nuttall Company, Pittsburgh, Pa. Holden & White Inc., Chicago, an- nounce that the National Railway Ap- pliance Company of New York, will handle the sale of jewel forced ventila- tion heating systems and Holden & White electric heaters in the New Eng- land, Eastern and Southern states. Mr. Dennis' Title — A note in this column on June 28 referred to the title of Charles H. Dennis, while with the Railway Audit & Inspection Company, as "general superintendent of employ- ment." This paper is in receipt of a card indicating that his complete title was "superintendent of inspection and employment." Federal Electric Products Corpora- tion, 52 Broadway, New York City, an- nounces that the corporate name of the Federal Electric Company has been changed to Federal Electric Products Corporation, and the business will here- after be conducted under that name. Benjamin Blum, heretofore managing director of the Federal Electric Com- pany, has been elected secretary of the Federal Electric Products Corporation, and will be in charge of the company's business with the same duties as here- tofore exercised. Harrison Safety Boiler Works, Phila- delphia, Pa., announces that the Monash line of pressure reducing valves and pump governors, formerly manufac- tured and sold by the Monash-Younker Company, of New York and Chicago, has been acquired by the Harrison Safety Boiler Works of Philadelphia. The purchase includes a stock of manu- factured parts and valves, drawings, patterns, trade mark and good-will. The Harrison Safety Boiler Works will man- ufacture and market the valves under the trade name "Cochrane-Monash," and will supply repair parts for valves now in use. Allied Machinery Company of Amer- ica has increased its capital stock to $5,000,000. This was made necessary by the decision of the American Inter- national Corporation to group all of its machinery export selling subsidiaries under one head. All shares of the Al- lied Machinery Company will, as be- fore, be owned by the American Inter- national Corporation. J. W. Hook will continue as president and F. A. Monroe, S. T. Henry and T. G. Nee have been elected vice-presidents. Mr. Monroe is in charge of the administrative affairs of the company. Mr. Henry is in charge of sales and advertising and Mr. Nee is at present in Japan devoting his attention to the affairs of the company there. R. P. Redier is general sales manager of the company, vdth head- quarters at Paris. Henderson - Mockenhaupt Company, Chicago, has been organized to act as sales representatives for manufacturers of electric material. A. F. Henderson, president of the company, was former- ly secretary and general sales manager of the Electrical Material Company; B. J. Mockenhaupt, secretary and treas- urer of the new company, was formerly vice-president of the W. P. Crockett Company. Among the lines being handled by the Henderson-Mockenhaupt Company are those of the Independent Lamp & Wire Company, Electric Rail- way Equipment Company, National PJnameling & Manufacturing Company, and Rattan Manufacturing Company. A. C. Perrin, formerly railway and mine specialist for the Electrical Ma- terial Company, is also associated with the Henderson-Mockenhaupt Company. National Railway Appliance Com- pany, New York City, has just com- pleted arrangements with Holden & White, Inc., Chicago, 111., whereby they are prepared to offer in the Eastern and Southern States a new line of car heaters of various types. These include the Jewel hot-blast forced-ventilation stove and a complete line of electric heaters. The stoves are made by the Detroit Stove Works and the motor and blower are located below the fire box. A new tjT)e of construction has been introduced into the electric heaters. These are made by the Cutler-Ham- mer Manufacturing Company and in- clude a nicrome resistance ribbon wound on a mica center strap. This is in- cased in mica insulation and mounted on a metal bar bound with sheet metal in such a way as completely to sheath the unit. Col. Douglas I. McKay has been elected president of the Pulverized Fuel Equipment Corporation of 30 Church Street, New York, to succeed John E. Muhlfeld, who retires to return to con- sulting engineering practice. Since July, 1917, Colonel McKay has been en- gaged in war work and supply, where he had supervision over the purchasing operations of the several supply corps of the War Department, including the Ordnance Department, Quartermaster's Corps, Medical Corps, Corps of Engi- neers and Signal Corps. Colonel McKay is a graduate of West Point and a for- mer police commissioner of New York City. Upon resignation of the com- missionership he became assistant to the president of J. G. White & Com- pany, Inc., and two years later was elected vice-president and director, which position he held at the time he entered the service. Park-Union Foreign Banking Corpo- ration formally opened its doors for business on June 1, at 56 Wall Street, New York City, for the development of foreign markets. The new inter- national bank has been in the process of organization since March, when it "was incorporated under the laws of New York State, with a capital of $2,000,000 and surplus of $250,000. These figures, however will be in- creased as occasion demands. For the present the activities of the Park- Union wiW be devoted particularly to the promotion of American interests in the far Eastern field, says Dr. C. A. Holder, its president. Branches have been established in Yokohama and Shanghai, and negotiations are under way for offices in other important world centers. Offices in the United States have been located on the Pacific coast at San Francisco and Seattle. Ohio Electric & Controller Company, 5900 Maurice Avenue, Cleveland, Ohio, announces it has appointed as its rep- resentatives, the following firms: The Iron & Steel Equipment Company, 1502 First National Bank Building, Pitts- burgh, Pa.; Williams, Beasley Company, 343 South Dearborn Street, Chicago, 111.; Linn 0. Morrow, 707 Franklin Trust Building, Philadelphia, Pa.; J. W. Dopp & Company, 18 Columbia Street, Detroit, Mich.; Kelly, Powell, Ltd., 403 McArthur Building, Winni- peg, Canada; Wonham, Bates & Goode, Inc., Dominion Express Building, Mont- real, Canada; Shook & Fletcher Sup- ply Company, Birmingham, Ala. For export business the following repre- sentatives have been appointed: Won- ham, Bates & Goode, Inc., 17 Battery Place, New York, London, Paris, Ha- vana and Rio de Janeiro; Mitsui & Company, 65 Broadway, New York, Japan, China, Philippine Islands and Honolulu; Gustav Neilson A/S, Chris- tiania, Norway, Sweden and Denmark. New Advertising Literature \ Napier Saw Works, Inc., Springfield, Mass.: Form 60 on Napier band saw machines and hack saw machines. Trumbull Waste Manufacturing Com- pany, Manayunk, Philadelphia, Pa.: Booklet on "Tampico" and how to use it in journal box packing. Universal Packing & Service Com- pany, Railway Exchange,- Chicago, 111.: Double sheet on "Spring Journal Box Packing." Electric Arc Cutting & Welding Com- pany, Newark, N. J.: Booklet on "Portable Alternating Current Appa- ratus for Cutting and Welding Metals." Westinghouse Electric & Manufactur- ing Company, Pittsburgh, Pa.: Folder on the "FFI Electric Locomotive" — the 4800-hp., single 4-0 three-phase freight locomotive. Electric Service Supplies Company, Philadelphia, Pa.: Bulletin No. 157 il- lustrates and describes the "Golden Glow" demountable mirror unit for re- placing 18 in. X 9 in. metal reflectors. Thompson-Starrett Company, New York: Two finely printed brochures. One contains views and short descrip- tions of some of the important build- ings erected by the company. The other is a copy of an article which ap- peared in Scribner's Magazine for No- vember, 1918, written by Col. W. A. Starrett, and describes the construction of the city of Nitro, W. Va., at a cost of $50,000,000. This construction in- cluded the erection of 3000 individual buildings. Electric Railway Journal Consolidation of Street Railway Journal and Electric Railway Review Volume 54: Ncw York, Saturday, July 19, 1919 Number^ Cutting Service Is a Dangerous Economy DESPERATE diseases often need desperate reme- dies, but the medicine ought not be powerful enough to kill the patient. A few drops of "Cut Service Mix- ture" if well shaken before taken may enable the patient, Mr. Car Earnings, to hobble along; but a drop too much and he will never travel again. Whenever we read that this or that railway is going to run cars every twenty minutes instead of every ten and inaugurate a little cur- few of its own by stopping owl service, we pray sincerely that it will not kill the riding habit. Any measure of that nature is a sad sort of economy. We may not be able to make every car-hour pay with a 5-cent or even a 7-cent fare, but with too deep a cut in service we can bring even the present profitable hours to the wrong side of the ledger. Another factor in cutting down service, par- ticularly night service, is the loss of good-will at a period when good-will is needed more than ever. The traffic which the steam railroads are driving off to-day will have to come back — it has no remedy — but a lot of the traffic which an electric railway drives olf can stay at home or walk. Off Again, On Again, In Denver PITY the poor traction manager! Developments in Denver in the past year remind a person of one of those up-and-down rides at Coney Island or the adventures of our old friend "off again, on again, Finnegan." The news columns of the JOURNAL have recorded the vicissitudes of the Denver Tramway Company — the struggle under a 5-cent fare; the move upward to 6 cents and then to 7 cents; the quick slump downward to 6 cents, and then back to its former place in the 5- cent class. When the people of that city approved a 6- cent rate last September, Denver stood forth as an exceptional community because there were few instances where the car riders voluntarily assumed a share in the growing burdens of the transportation company. But the idea that it is a popular move on the part of politicians to bait the corporation will not down ; and they were not long in forcing lower fares. The action of the Mayor in giving free rein to jitneys was a sample of what the company management has to contend with. It did not seem to matter that business houses reported a loss of 50 per cent in trade. It is perhaps just as well, however, that the public should have had an opportunity of experiencing what it is to live in a "trolleyless" town. Later reports indicate that the people of Denver have learned that a railway is really a necessity. They found they could not get along without the cars and that the jitney in many ways was a "fair-weather friend." It is now announced that a 6-cent fare will be restored as quickly as possible, and that a cost-of-serv- ice plan will probably be adopted. Meanwhile the train- men have had the War Labor Board scale of wages restored, with prospects of a further increase later on. We sympathise with the Denver Tramway management and trust that the experimental stage with lower fares is past for ever. Perhaps the people and the politicians have learned something in the past few months. The Federal Hearings Are At Last Under Way THE hearings on the electric railway situation begun 'n Washington on Tuesday, we hope, mark the turning point in a most anomalous situation. Properties organized to provide an essential service for the public are being prevented from furnishing that service and are being driven into bankruptcy because the war has changed the status of values. Profiteering, or the use of the peculiar conditions brought on by the world's confiict to extort unusual and unfair gains from others, a practice rightly condemned both morally and legally, is being brazingly followed in many cities to compel the electric railway companies to furnish transportation at a loss. The unity in aims which should exist between the electric railway companies and the communities which they serve, as regards the provision of the proper transportation facilities on tracks already in existence and the construction of new lines into sections needing such facilities, has disappeared. The fact that the President has appointed the present commission shows that he recognizes the seriousness of the situation. Just what the commission can do and will recommend remains yet, of course, to be determined. But the electric railways at last have an opportunity to put before a national commission evidence of an im- pending disaster which is nation-wide and to impress on a governmental body the necessity of doing what is possible to avoid the threatened debacle. The hearings during the early part of this week show that the American Electric Railway Association has a well-prepared case, in spite of the short time available since the announcement of the appointment of the commission to collect and collate the facts. It will work under this disadvantage as regards statistics of past years that many of the factors which increase railway operating expenses are of comparatively recent date, while the latest government figures for the elec- tric railways of the country are for the year ended June 30, 1917. It will be necessary, therefore, as the association expects to do, to prove by witnesses not only what has happened, but what the present condition of the electric railways is and what the immediate future has in store unless remedial action is taken. 104 Electric Railway Journal Vol. 54, No. 3 The evidence being presented at Washington is of great educational value not only to those for whose use it has been primarily compiled but also for the railway men in attendance. There was a good representation of operators at the early sessions this week, but there should have been more. We realize that with conditions as they are at present it is hard for a manager to get away from his property for any great length of time. But there has never been an electric railway rate case in which the testimony has been so extended and of such a high order, and a trip to Washington for a day or more by any railway man, operator or investor who can get away will be well worth while, not only for the individual benefit to be derived but to indicate to the com.mission the vital interest which the industry is feeling in the hearings and their outcome. New Capital Cannot Be Coerced, Whatever Is Done to Old IS CAPITAL entitled to a higher emolument when the present return is no longer sufficient to attract investors? This is the interesting question arising from the recent labor difficulties of the Cleveland Rail- way Company, wherein the employees were granted their wage demands and the request for increase in the stock dividend rate from 6 to 7 per cent was left subject to arbitration. President Stanley has set a great many persons to thinking over his proposal. Officials of the Chamber of Commerce in Cleveland have expressed the opinion that his demands on behalf of the stockholders are entitled to consideration. When the late Judge Tayler wrote the Cleveland ordinance in 1908 he foresaw that prices would not be constant and wisely arranged that the rate of fare should fluctuate with the cost of service. One defect in the franchise provisions — which did not become em- barrassing until some years later — was the fixing of a maximum in the schedule of fares. This was tem- porarily cured in a recent amendment to the ordinance by raising the maximum rate of fare. Recent events, however, have proved the contentions of the manage- ment that the franchise will never be satisfactory while a maximum rate is fixed in the schedule. In this par- ticular the Boston trustee plan and the Cincinnati franchise have an evident advantage. But the framers of the Cleveland ordinance — an admirable document in many ways — would have done well to incorporate in its provisions, as well, a sliding scale for the return on new securities. Cost of capital fluctuates as it does for labor and materials, and while it is important to assure an adequate return on securi- ties already outstanding, it is no less essential that the franchise guarantee the market price on future issues of bonds and stock so that when new capital is needed for transportation improvements it will find the utility company as good a customer as any competitor. The people who insist on improved transportation facilities should appreciate this as readily as the company officials. When a million dollars is required and the company's new issue of stock will not sell at par the amount that can be raised is lessened to just the extent that a premium has to be paid. The Cleveland car strike .was as much a strike of capital as it was of labor. Money will not work on unattractive terms any more than the platform men will do so, and when the latter can gain their point by showing that other industries offer a better wage, the investor should get an attentive ear from the public by his threat of going elsewhere to find kindlier treat- ment. It might be contended that there is little element of risk in the investment in Cleveland Railway Company stock because the good faith of the municipality is in- volved in the keeping of its written agreement. It is perhaps true that securities are safest when protected by service-at-cost provisions in a grant, but the fact remains that the Cleveland Railway stock has been selling below par while many other securities, apparently no more sound, attract a higher price. Interest from bonds and dividends from stock help many a family to meet the cost of living, and if their holdings have depreciated to such an extent that the future is jeopardized it would seem only the part of equity to give a fair hearing to their petition for relief. Capital once invested may have no choice but to remain where it is. But no railway in a growing city can stand still. It must make extensions and improvements, and these means additions to its capital account. And this new capital will not be forthcoming unless the conditions are right. It can be as coy as labor. A community such as Cleveland will not suffer by establishing such a precedent as that proposed and by acquiring a reputation of being liberal to capital and labor alike. The outcome of arbitration proceedings in this unique "strike of capital" will be awaited with interest. Conserving the Technical Lessons Taught by the War ON JUNE 25 bills were introduced in Congress with the intent to consolidate the governmental depart- ments having to do with technical matters. The situa- tion was covered in a news item on page 38 of the issue of this paper for July 5. Whether these bills become law or not, the fact that they were introduced suggests the need for capitalizing the successful efforts put forth during the war to increase the productive efficiency of the country's industrial plants and utilities. The war has taught many vital lessons. Among other things we are learning that science and the scientific spirit in the broad sense are fundamental if we are to make ends meet in the future, that investigation and analysis are the foundation of national prosperity. Our wonderful country is so bountiful in supplying raw materials, and we have such a capacity for getting results somehow in spite of obstacles, that we have not always appreciated the necessity for conservation and effective utilization of our resources. There are, of course, many instrumentalities at work along scientific lines, some doing research work themselves, some utilizing and applying the work of others. Great industrial establishments have their development departments; the government has its Bureau of Standards and many other scientific bureaus; there is the National Research Council; college and university laboratories are almost numberless, etc. It would seem, however, as if there is -need for co-ordina- tion of all of this machinery. In fact, one important lesson of the war will have been lost if such co-or- dination is not brought about promptly. Could not the national technical societies, including the American Electric Railway Association and its satellites, get this movement started? The most immediately practical plan for doing so would be to memorialize Congress as July 19, 1919 Electric Railway Journal 105 to the importance of creating some agency, or utilizing some existing one, to study the problem and prepare a plan for its solution. If a governmental engineering department is erected, such agitation would help it. If not, the agitation might lead to constructive legis- lation of some other kind. There Is an Equilateral Triangle of Obligation THE fundamental object in electric railway opera- tion is now recognized as service, something which can be secured only by co-operative action among the three factors in electric railway operation, namely, the public, the company and the men. In the old days the interests of each of these three were "considered opposed to those of the others. It was thought that the public would gain most when it got as much out of the company in the way of taxes and other imposts as it could and at the same time paid a minimum fare, while the object of the company was to give as little service as it might for the revenue received. In the same way, it was believed to be in the company's interest to pay its men the lowest possible wage, while the men, it was thought, could most profit by forcing the company either by strike or otherwise continually to advance their wages. Actually, the real interests of all are identical. Thus the city will most benefit if it permits the company to earn a reasonable return on the investment made and the company will gain most if it gives as good a service as it is able to do for the fare paid. In like manner, the employees should receive a wage equal to that which they could earn in any outside industry calling for the exercise of an equal amount of skill, while the company can best profit if it pays such a wage. Finally, to complete the triangle of mutual dependence and co-operation, the employees can best serve their own interests if they co-operate with the company in giving the public as good a service as is warranted by the fare charged. If these mutual obligations were gen- erally accepted, strikes and the payment of inadequate wages and fares would disappear. Strikes are an economic waste, and while they or the payment of inadequate wages may seem at times to be of advantage respectively to the men or the company, yet if the ability of the railway to give good service is thereby impaired the results to both are unfortunate. In the same way, an inadequate fare will retard the proper development of the utility and too high a fare will injure the growth of the community which it serves, so that in either way the interests of both company and community suffer. Co-operation and a unity of purpose among the three elements of society, the wage earner, the investor and the public, should take the place of that antagonism which is now being recognized as detrimental to the best interests of all. Some advance has already been made in establishing this principle of co-operation be- tween the companies and the men, and the public should be brought in closer touch with the practical workings of our public utility properties, the first duty of which is to give service to the public. It is only through co-operation, under a cost-of-service plan, among the wage earner, the investor and the general public, that the transportation problem can be success- fully solved. Cars Should Be Still Lighter Not Heavier NOW that the war is- over and the metal market has become more normal, the builder of street railway cars will be able to get the higher-grade steels and other light-weight materials like aluminum alloys, that have been almost unobtainable. It is a matter for congrat- ulation that this is the case because of recent tendencies to ask for heavier rather than lighter safety cars. It is a fact that in a number of placesi, the safety car has been obliged to carry loads much greater than con- templated, and, in some instances weakness of struc- tural members has also been a factor. The easiest way, seemingly, is to make these parts, heavier. But this is not the easiest way in reality because the safety car is practically a unit for which certain motors, compressors, etc., have been especially designed on the basis that the weight would not exceed 15,000 to 16,000 lb. If we ex- ceed this weight, we disturb the entire balance. Greater weight will in turn demand heavier and more costly equipment throughout, while the power will jump back, considering the present increase in fuel cost, to where it was with the old time car that broke the backs of so many street railways. Actually thei easiest way of meeting this situation is to put into the construction of a street car better metal than ever before. This has become practicable now not only because of the better condition of the metal market, and the release of tools for making special shapes, but also by the standardization of the safety car itself. No car builder could be asked to keep special alloys on hand if only a fraction of the non-standard cars ordered would make use of such steels. With the quantity production of cars, the builder will feel at greater liberty to make use of the same high-grade metals and special light- weight materials as the automobile builder. We agree, for example, with the suggestion of J. M. Bosenbury of the Illinois Traction System, that serious attention be given to vanadium steel. This steel is far superior to ordinary steel in withstanding shocks and stresses in- cident to city railway operation. Put into a truck, it would give say 25 per cent increase in strength with no increase over the weight of the first safety car trucks. For sheathing, ingot iron (or coppered steel) is also an excellent material because of its greater resistance to corrosion. Furthermore, if this sheathing is covered with the cork-like balsa wood, and the latter in turn lined with a little veneer, the safety car will approach more closely the ideal of the noiseless car for all climates in addition to being much easier to heat when used in cold climates. But no matter how anxious the railway car builder may be to take advantage of these special materials, he can do little without the co-operation of the customers who must be willing to buy the best possible combination available even if they are tempted to ask for something just a bit different or cheaper here or there. The car builder may also have to charge more money for special steels than for ordinary commercial steel, but the operator will be justified in paying this higher price because of the many savings that he will be able to retain in other directions. In the long run, both the manufacturers and the operators will benefit because the very life of both depends upon the continued ability to conduct electric railway transportation cheaper and better than any other means of carrying people in public vehicles. 106 Electric Railway Journal Vol. 54, No. 3 Notes on the History and Development of Electric Railway Rails The Author Takes Up the Practical and Theoretical Considerations Which Are Gradually Leading to Rail Standardization and Simplification By R. C. cram Engineer Surface Roadway, Brooklyn Rapid Transit System IN SOME of the previous articles on way department matters the writer has discussed such features as subsoil, foundation, ballast and ties in their relation to track construction. The most important subject of rails is now taken up with considerable hesitation, in view of the vast amount of discussion already given to it. But no series of articles on way department matters would be complete without some mention of the rails, because they represent the fundamental part of the physical equipment of the great electric railway in- dustry and are the direct cause of the creation of way departments. In the main, this article treats of the early history and development of street railway rails. engineer may now be heard giving thanks for the breathing spell which the development of light-weight cars has caused. There is a movement toward making the cars suit the track instead of the long-continued reverse order of trying to make the track fit the ever- increasing weight of cars. Early History of Rails Rails were first used in the coal mines of England. According to Fred Bland, they were originally of planks or timber and the first record of their use is dated 1576. The word "tram," from which are derived the words tramway and tramrail, originally was the local name The rail has been the subject of more study than any or all other parts of the track, and its development represents the general progress in the development of the railroad. In recent years progress in rails has tended to keep somewhat behind the advances made in equipment. Car and engine-weights have increased so rapidly that it has been almost impossible physically to keep up to date with suitable rail sections, even when finance permitted. This is particularly true of rails laid in paved streets, and the street railway track for a coal wagon in the collieries at Newcastle. Since the rails were to facilitate the movement of the "trams," the rails were associated with them as tramrails or tramways. The first rolled rails were pieces of iron straps laid on longitudinal parallel stone or wooden sills or stringers. They were held in place by spikes driven into the wooden stringers or into wooden plugs set in holes drilled in the stone sills.' The rails were about i in. thick, 2 in. wide and 15 ft. long. All of the early July 19, 1919 Electric Railway Journal 107 steam road rails used in this country were imported from England. Some of the very early types are shown in the drawing reproduced on page 108. The street railway is distinctly an American idea and the first use of rails and flanged wheels in streets is credited to this country. The New York & Haarlem Railroad, built in 1832, was the first street railway ever built. It was not a financial success at first and the opposition to the early street railways was quite similar to the opposition that ^^77771 c. e. t SOMEJ EARLY TYPES OF RAILS (From Willard's "Maintenance of Way and Structure") a, b, c, earliest types, d, first T-rail. e, U-shaped rail of 1834. f, pear-shaped rail. appeared, many years later, against the construction of electric street railways. In both cases, this great factor in community life and development had to fight great odds for its birthright. How singular it is that to-day it is still fighting for even a bare existence, and against even greater odds! Strap or stringer rails were used by the steam roads and by the early horse tramways in this country up to about 1840, when the T-rail began to be used as a sub- stitute by steam roads because the increasing engine weights caused the rails to turn up at the ends. This by the way, was the beginning of our troubles with joints. The first rail approximating a T-rail was in- vented in America, in 1830, by Robert L. Stevens. The period between 1840 and 1850 marks the parting of the ways between the steam railroad and the street railway or tramway. The latter continued to use strap rails or flat tram stringer rails from the first real development period of 1852-1855 until the advent of the electrical development period, about 1890. Mean- while, steam roads had progressed far in the use and development of the T-rail under the far-reaching in- fluence of the American Society of Civil Engineers. The electrification of street railways, .by the use of heavier equipment, virtually forced the tramways to develop and use other rails, just as the steam roads had to do many years before. However, street traffic and pavements tended to cause the development of the tram-rail idea from the flat tram or stringer-rail to the 4i-in., 6-in. and later to 7-in. and 9-in. tram and groove girder rails. The 9-in. tram girder, or Phila- delphia rail, was designed by William Wharton, Jr. in 1890 although the general features were proposed by Jos. Quinn, of the Wharton Company about two years earlier. The tram part of the rail was distinctly a con- cession to, and continuation of, the use of rails by wagons in streets even though the cars had come to use flanged wheels entirely. A few railways went to the steam roads for their designs and developed the deep 6- in., 7-in. and even 8-in. and 9-in. "high-T" rails or plain girder rails, as they are more properly designated. The depth was, like that of the tram girders, largely to provide paving accommodations. There were several peculiar rail^|j|||ppments at that time which may now seem absurd flWrrney had consider- able vogue. One of them, the "Lewis and Fowler" box girder may still be found in sidings and in little-used or abandoned track in a few of our large cities. Some of these early sections are shown in an accompanying figure. It is of interest to note that the modem cross- sections of manganese rails used in crossings in special work have several features (particularly the double- web) in common with the Lewis and Fowler section, and the use of a rather similar double-web for modem heavy T-rails has been suggested by Gustave Ljnden- thal in his paper read before the New York Railroad Club on May 21, 1915. As noted in a preceding paragraph, rails were first designed to carry wagon wheels having flat tires. Some of the rails had an upturned flange which acted as a guard in keeping the flat tires upon the track and presented the appearance of equaWegged angle-iron bars. A sample of this kind of construction was until recently found in the colliery at Coalbrookdale, England. It was built in 1767 and was, when dismantled, probably the oldest tramway in existence. It was taken up only a year or two ago. The advent of the flanged wheel, an American in- vention, created the need for flangeways. These were provided for in American tram rails by raising a part of the section to form the "head," as the running surface is called. Such a rail was known as a steprail or side- bearing tram rail. Another reason for raising the head was to keep the bearing surface above the general level of the pavement, thus avoiding trouble from accumulation of dirt, snow and ice. The center-bear- Head Angle r-30' '-■ Back or Outside 01 Head of Web-- WBB: Sometimes called "Heck' Thickness of Web Top of Base '.tor Flange) '\ Fillet---. 13° E \ \c-646SLIIiE- Usually about ■ below Top of Head Edge of ' '■'-,-Gage Side of A ; Head -y'^ Depth of ■■■■ Head , , y''-- Depth of \ '.. Groove \ ' Top of Tram or Lip Top of Tram Underside cf Tram A, B, C. D are small Fillets E , F, &, H are Fishing Angles Dash Line of Tram Indicales "the Portion of Groove Girder Rails Originally called 1he "Trilby" Entire Base often called the Foot n " '• " " Flange Underside 'cf Base NOMENCLATURE OF DIFFERENT PARTS OF A TRAM GIRDER RAIL ing stringer rail and the later center-bearing girder rail were distinctly designed with that point in view. This rail also kept the loose paving stones of cobble and similar pavements, then prevalent, from interfering- with the path of the wheel. The center-bearing rail became objectionable to teamsters in the large cities and it was legislated out of existence by the State of New York in 1892. 108 Electric Railway Journal Vol. 54, No. 3 The idea of placing the flange on the rail, instead of on the wheel, as it was in the early days was revived by C. B. Voynow in a paper read before the American Street and Interurban Railway Engineering Association in 1908. While Mr. Voynow presented an ingenious exposition of the subject, the practical impossibility of changing the entire street railway track system, to say nothing of finance, prevented any serious con- sideration of the scheme. Mr. Voynow's proposed rail section is reproduced on page 109. The introduction of the groove in the stringer rail was probably the earliest means of providing room for the wheel flanges. It is understood that its invention in 1852 is credited to M. Loubat, a French engineer who was interested in American street railways. Fred Bland, in his paper on tramway track\ states that with the exception of one or two of the earliest street railways, the English street railways have rigidly ad- hered to the groove rail and the use of any other form is now prohibited by the Board of Trade, which has jurisdiction in such matters. Incidentally, the better pavements which prevailed in England in the early days permitted a wide use of the groove rail. The first girder guard rail similar to section "D" on this page was rolled in Birmingham, Ala., at a little mill with which A. J. Moxham, later president of the Lorain Steel Company, was connected. This was prior 'Journal of Permanent Way Institution, Inc., of Great Britain, Dec. 1918, page 113, abstract In Electric Railway Journal, Dec. L'8, 1918, page 1144. |< 3i SOME EARLY RAILS OF THE ELECTRIC DEVELOPMENT PERIOD A — Side-bearing stringer rail. B — Center-bearing stringer rail. C — Stringer guard rail. D — One of the first girder guard rails (1883). A similar design was first rolled in Birmingham, Ala., prior to that date. E — Early center-bearing rail (1888), "butter- fly" section. F — C. A. Richard's girder section (1885). G — Early girder guard rail, "bulb" section (1885). H — One of the earliest girder guards, having a base similar to modern sections. About 1889. I — Center-bearing girder rail. About 1889. J — Angle chair support for "bulb" section. K — Verv earlv full-groove girder rail, patented 1883. Used in Washington, D. C, about 1889. This design was originated in England. L — Duplex composite section, about 1891. These parts were held together in cast-iron chairs ; the chairs in turn were held to gage by tie rods. The chairs rested on the soil or were embedded in concrete. M — Lewis and Powler box girder, or double-webbed rail. About 1890. July 19, 1919 Electric Railway Journal 109 to 1880. In 1883 the Johnson Company rolled the guard "D." The early girders had no bases at first, and were generally held in some form of chairs. Even when the "bulb" began to appear as a sort of base the chair still prevailed and when the shallow girders having bases came forth, they also were carried on cast-iron chairs to provide for paving depth. A very low girder, about 4 in. high, was rolled by the Cambria Steel Com- pany in 1877. When we come to the full-groove girders, Washington and Cincinnati both claim priority of use, but the Wash- ington design, im- ported from Eng- land, seems to have the preference. It certainly was pat- ented in this coun- try in 1883, with later patents in 1889. The grooved gir- der was an out- growth of the tram girder, being form- ed at first by sim- ply changing the rolls so as to bend the tram upward to form the groove. It was first develop- ed in England as a means of better- ing paving condi- tions near the gage line, to offset the ruts which tend to form as a result of heavy wagon traffic. Its increased use in America has followed the general betterment of paving conditions. Right here a digression may be made to note that the wagon makers are wiseacres. Original- ly, it is believed the rail gage was made the stand- ard gage of 4 ft. 8i in. because it was wagon gage also, and wagons were first used on rails. However that may be, the writer has observed that in cities where the gage of the tracks is 5 ft. 2 in., the wagon gage is the same, and that in all cities the wagons generally will readily follow in- the tracks whatever the gage may be. We can be thankful that the steel-tired era for wagons is passing in favor of the rubber-tired automobile truck, which generally will transport far heavier loads with com- paratively little damage to most track pavements. Far Too Many Rail Sections Are in Use In the early days of electric operation, and dovra to a very recent period, each street railway engineer had his own ideas on rail design which resulted in a multiplicity of sections. In some cases franchises also permitted city engineers to specify what sections should be used and these engineers also exercised their "ability to design" in multiplying the number of sec- tions. The result of all this is realized more fully when we remember that the manufacturers have catalogued over 400 different sections. On page 106 are shown a half hundred different sections which have been used on one large property alone. The Massachusetts Street Railway Association con- sidered the matter of standard rails as long ago as MR. VOYNOW'S PROPOSED FLANGED RAIL SECTION 1892 when George W. Mansfield suggested six standard rails in a paper read before that body at its annual con- vention. The subject was also discussed before the American Street Railway Association in 1892, in a paper by John F. Ostrom entitled "Is a Standard Rail- Head Possible?" Those papers influenced the width of head and some other features to a considerable degree. Then followed a long interval of independent or "personal" designing and it has taken about twenty- three years for the industry actually to settle upon six standard girder rails. About 1907, the committee on way matters of the American Electric Railway Engineering Association commenced the study of rail sections with the view to standardization. It was not until 1913 that the work reached a conclusion and the association succeed- ed in adopting two standard groove girder and two girder guard rails to match. Similarly two plain girder (high-T) rails were adopted and a series of low T-rails ("standard section rails") were settled upon. The lat- ter are all American Railway Engineering Association standards. It will be noted that the tram girder was dropped entirely, but there recently has been an attempt in some quarters to revive it. (See article in Electric Railway Journal for Dec. 1, 1917, page 997.) While two depths of groove girders were adopted, a 7-in. and a 9-in., the writer believes that the 9-in. section has been used but little, as the tendency has been toward a very general adoption of the 7-in. depth, which seems to meet all requirements. Martin Schreiber discussed these standard rails in an interesting article which appeared in the issue of this paper for April 11, 1914, page 812, giving a histori- cal resume of the work of the way committee on the subject of standard girder rails. At first considerable objection was made to the new early track construction in boston with electrically welded chairs standard groove girder sections on account of their in- creased weights. The writer has held, however, that the increase was warranted by the requirements of good de- sign and observations covering over four years of com- parative performance of 105-lb. and 122-lb. groove gir- ders has confirmed this view. Weight well distributed gives that very desirable factor of stability which is an essential, particularly in connection with electric rail- ways in view of "deferred maintenance" which in many cases has meant no maintenance whatever until the cars 110 Electric Railway Journal Vol 54, No. 3 would no longer stay on the rails. The presence of pave- ment often causes needed maintenance work to be "defer- red." Under such conditions an 80-lb. rail, for instance, will give a track of fair riding qualities when it would be almost impossible to run a car safely over a 60-lb rail. It is quite obvious that for a given car weight and service there is a limit below which we should not go in selecting rails. As between 60-lb. and 80-lb. sections, the latter will require far less maintenance under the same traf- fic; so much so that the difference in first cost is more than made up in lesser maintenance expense. In more than one instance a difference of 20 lb. in the weight of rail prevailing on a railway has decided the question as to whether a banking firm would finance new enter- prises on old roads. (b) Outline of tread, (c) Top fillet of head, (d) Side of head, (e) Depth of groove, (f ) Width and angle of groove, (g) Tractive contact and electrical contact. 2. Vertical Stability: (a) Depth of section, (b) Lo- cation of web. (c) Width of base. ^. Permanency of Joints: (a) Depth of section, (b) Outline for splicing, (c) Electrical bonding. 4. Horizontal Stability: (a) Location of web. (b) Thickness of web. (c) Fillets at web. (d) Width of base, (e) Width of tram, (f ) Depth of section. 5. Distribution of Loads on Foundation: (a) Width of base, (b) Depth of section. 6. Accommodation for Paving : (a) Depth of section (b) Tram of rail. 7. Accommodation for Vehicular Traffic: (a) Dis- AMERICAN ELECTRIC RAILWAY ASSOCIATION T-RAIL STANDARDS Left — 90-lb. low T-rail ; center — 80-lb. low T-rail ; right — 7-in., 80-lb. plain girder (high T-rail) In spite of the ap- parent simplicity of outline, there are a large number of fac- tors which have an influence upon gir- der-rail design. Rails for use in paved streets present sev- eral added features which are not requir- ed in standard sec- tion (low-T) rails. While some of the general requisites of design were outlined by earlier commit- tees, it remained for the 1911 way com- mittee to present an analysis of section or design, which is a landmark in such committee work. That analysis presents a reason for every feature of a groove girder rail. The more general principles which control design of girder rails are: (1) Performance of existing sections in use with the view of retaining the good features and eliminating defects. (2) Redistribution of metal to give maximum strength at critical points. (3) Use of an outline of section and distribution of metal which will permit ease of rolling without sacrifice of essential characteristics. (4) Possibility of combining all the features that are necessary in a standard. The analysis of section must consider the following items : 1. Accommodation for Wheels: (a) Width of head. L — ^. J AMERICAN ELECTRIC RAILWAY Left — 100-lb. low T-rail ; right — 7- tance of tram below head. (b) Width and thickness of tram, (c) Width of groove. 8. Life in Service : (a) Depth of head. (b) Depth of groove. (c) Thickness of tram, (d) Possible life of substructure, (e) Thickness of base. 9. Weight: (a) Economical distribu- tion of metal. 10. Manufacture: (a) Distribution of metal for rolling. (b) Various angles and fillet details. From the foregoing it is evident that the design of a girder rail is far from being a matter of rule of thumb and should only be undertaken after the most careful investigation of available sections, of which there are now far too many. Composite Rails The fact that head wear usually determines the life of the rail and a loss of not over 20 per cent of the total amount of metal in the rail will cause its renewal has led to numerous attempts by inventors to devise some form of composite or renewable-head rails. A few of these sections are shown on page 111. The latest of these, the "Romapac" or continuous rail has been tested in service in Chicago. When the writer last saw it the de- association t-rail standards in., 91-lb. plain girder (high T-rail) July 19, 1919 Electric Railway Journal 111 fects in the scheme were becoming very noticeable and there does not seem to be much chance of its being given further consideration. The scheme is by far the most practical of the many renewable head designs which have appeared. The head section is "crimped" cold onto the base section by an ingenious machine and a similar machine is designed to remove worn heads. The Chicago test seems to have proved that the idea is fallacious in that the renewable feature introduces other conditions, not found in connection with the use of ordinary rails. and specifications were generally accepted without ques- tion. Nevertheless, the subjects of specifications and the need for them were discussed in a paper read before the American Street Railway Association at its meeting in Cleveland in 1892. The tendency in manufacture to put tonnage output ahead of quality led the railways into the field of specifications with beneficial results and both the American Railway Engineering Association and the American Electric Railway Engineering Association now have standard specifications for rails in their man- AMBRICAN ELECTRIC RAILWAY ASSOCIATION GROOVE GIRDER RAIL STANDARDS From left to right — 7 -in., 122-lb. rail; 9-in., 134-lb. rail; 7-in., 140-lb. guard rail; 9-in., 152-lb. guard rail which far outweigh whatever advantage may attach to the proposition. Composition of Rails Early stringer rails were made of iron, some of them being cast to shape. About 1860, Bessemer steel came into use and held sway until about 1903, when the open- hearth steel process began to supersede it and there is but a very small tonnage of Bessemer now produced in this country as compared with open hearth. In 1913 the tonnage of Bessemer was only one-third that of uals. The specifications of the latter association cover girder rails only. For low T-rails, the specifications of the American Railway Engineering Association or of the American Society for Testing Materials are largely used. The American Society for Testing Materials also approved the electric railway association specifications. Aside from iron, which constitutes approximately 98 per cent of the metal, the five most important ele- ments in rail-steel are carbon, manganese, phosphorus, silicon and sulphur. Steel containing these elements with carbon predominating is called carbon-steel. Car- 1^0 Q "RAMOPAC" OR CON- SOME RENEWABLE RAIL-HEAD SCHEMES TINUOUS RAIL DESIGN, A — A. E. SmitVi's proposed compound rail. B — James Keaton's proposed com- HAVING THE RENEW ABLE- pound rail. C — Bartheld's proposed compound rail HEAD FEATURE open-hearth and in 1918 about one-fifth. This change has been largely due to the increasing scarcity of low- phosphorus ores suitable for the Bessemer process. Fur- thermore, the chemistry and quality of open-hearth steel is said to be under better control than in the Bessemer process, which tends to production of more reliable steel. Neither the steam nor the electric railways paid much attention to the composition of rail steel until within the last ten or fifteen years and the manufacturers' analyses bon has the quality of adding hardness to the steel, but too much of it tends to make steel brittle. Early Besse- mer rails were low in this element, while recent rails contain three times as much as did the early rails. (See comparative analyses in Table I). The increase has been made in order to obtain greater wearing qualities. Another reason for the increase in carbon, in girder rails at least, was the desire to overcome the corruga- tion evil. Here it may be said that no very marked effect has been discovered. 112 Electric Railway Journal Vol. 54, No. 3 An increase in carbon content for street railway rails as a means of increasing resistance to wear was sug- gested by A. J. Moxham in his paper on Rails read before the American Street Railway Association at its annual meeting in 1898. The late Dr. F. S. Pearson had also experimented along the same lines about that time when he was connected with the old West End Street Railway of Boston. Mr. Moxham's experiments were conducted in Brooklyn and a study of the condi- tion of the experimental rails, including some of Dr. Pearson's rails, as found late in 1917 appeared in the issue of this journal for Jan. 26, 1918. In recent years several special alloy-steels have been used in experiments with rails with the view of produc- ing such qualities as high resistance to shock, high elastic limit and great resistance to wear. The alloys used principally are manganese, titanium, nickel, chro- mium and vanadium. In England, a rail having a high percentage of silicon, called the Sandberg rail, has been used with a large degree of success. As a general prop- osition alloy-steel rails are very expensive and of doubt- ful value. The addition of ferro-titanium, however, has become a fixed practice on the part of many electric railways. It has been called "rail insurance" and its addition to the steel tends to overcome impurities and prevent segregation. On this page is a reproduction of a sulphur print of a titanium-treated groove-girder rail. In exceptional cases manganese-steel rails have proven of value in sharp curves, having extremely heavy wear. Similarly, experiments with manganese and other alloy-steel rails in steam road curves have led to widely different opinions as to the ultimate economy, with the weight of the evidence somewhat against them. Incidentally, in carbon-steel girder guard rails, it has been found desirable to keep the carbon within the limits of the class A analysis (0.60 to 0.75 per cent carbon) of the American Electric Railway Engineering Associa- tion specifications in order to render the rails more suit- able for bending to the sharp radii of street railway curves. The specifications of the same association cover- ing materials for use in manufacture of special track work definitely provide the Class A analysis. Even this degree of hardness gives the special work manufac- turers considerable trouble. Length of Rails Has Gradually Increased It has been stated that early strap rails were about 15 ft. long. Some of the early cast iron rails of this type were as short as 5 ft. Think of that! Twelve times as many joints as would be needed for a modern girder rail. The desire to reduce joint troubles as much as possible, by eliminating the sources, mainly has been responsible for the increase in length of rails. For many years 30 ft. was the standard length on both steam and street railways. Experiments with welded joints in street work undoubtedly contributed to the increase from the 30 ft. to the 62 ft. length which is now the TABLE I— COMPAR.'i.TI\-E CHEMICAL ANALYSES OF STEEL FOR STREET RAILWAY RAILS, SHOWING INCREASES IN CARBON CONTENT Bessemer Open-Hearth Steel, and Open-Hearth Steel, Prior to Bessemer, Since 1 91 0, Am. El. Ry. Asso. Approximate 1898, I898-I9I0, Class A, Class B, Periods Per Cent Per Cent Per Cent Per Cent Carbon 0.280 0.59 0.60-0.75 0.70-0.85 Silicon 0.026 0.056 0.20 0.20 Phosphorus 0.106 0.097 0.04 Not over 0.04 Not over Sulphur 0.066 0.059 See Note See Note Manganese 0.790 0.830 0.60-0.90 0.60-0.90 NOTE — Sulphur runs undei 0.05 per cent in basic open- hearth pig iron. standard for street railway rails. The necessity of pro- viding for expansion is not present where rails are buried in pavements. This was proven by Moxham's experiments. (See his paper, "Experiments on the Expansion of Continuous Rails," in the 1892 Proceed- ings of American Street Railway Association.) In open tracks on both steam and electric railways the practice is confined principally to the use of 33-ft. lengths as standard because of the necessity for provi- sion against expansion and contraction of the steel with changes in temperature. However, 6 0 - f t . rails have been used in some cases on interurban roads in open tracks without any particular trouble and with no spe- cial provision for expansion and con- traction by means of slip joints. There is probably no very good reason why 45-ft. lengths could not be used on most electric railways, particularly in view of the fact that European railroads use lengths up to 59 ft., and 45-ft. lengths are standard on steam roads in England. Mill equipment has probably had more influence than any other factor in keeping rail lengths at the 33-ft. standard because comparatively few mills could roll longer rails without considerable change in equipment. The question of shipping and handling has also entered but electric railways have little trouble on this score. Some manufacturers have claimed that it is impossible to give as good a surface finish to long rails as to short rails, but electric railway use of long rails has not indicated that this is true, unless the tendency of long girder groove rails to corrugate may be taken as an indi- cation. Besides, long plain girder rails (high-T) sel- dom, if ever, suffer from corrugation. Of course, recog- nition must be given to the point that the factor which ultimately limits the length of rail in open tracks is the maximum expansion spacing which can be safely used at the joints. REPRODUCTION O F SULPHUR PRINT OP A TITANIUM-TREATED, 7-IN. GROOVE GIRDER RAIL In his annual report. President John D. Ryan of the Montana Power Company, says that aside from the completion of the Holter development and some sub- stations and transmission lines under way at the be- ginning of the year, very little new construction was done. For the purpose of supplying the development with additional power outlet a new 100,000-volt stan- dard bridge type underhung transmission line was constructed from Holter to the East Helena switching station, thirty-one miles. By means of a complete arrangement of air-brake switches this line offords duplicate service from Holter to the Butte and Great Falls districts, and also a direct feeder line from Holter to the Milwaukee Railway at Josephine, and allows for many combinations of transmission in case of line trouble. July 19, 1919 Electric Railway Journal 113 Making Over Open Cars for Repayment Fare Collection Shore Line Electric Railway Is Rehabilitating Rolling Stock Not Suited to Modern Methods of Collecting Fares THE Shore Line Electric Railway, Norwich, Conn., has found it desirable to remodel fifteen open cars primarily to simplify the problem of fare collection. At first it was thought that all that would be necessary would be to sheath the sides, provide sash and cut aisles down the center, in order to accomplish the work at a minimum of cost. It was found, however, that a more thorough overhauling would be necessary and the result is as seen in the accompanying illustrations. About a dozen of the cars are now completed and a number have been in operation, very satisfactorily, for some months. Some of the cars were provided with stationary sash, the remainder with sliding sash. The cost of the work in the latter case was about $1,250 per car, in the other case slightly less. No changes were made in the equip- ment of the cars. The first step was to build out the lower portion of the side posts so that i-in. poplar sheathing could be ap- plied in a vertical plane. On this No. 16 gage sheet steel was screwed, steel strips about 2 in. wide being used to cover the joints. In the cars with stationary sash the sash were held in place by means of screwed vertical strips ; for sliding sash the side posts were built out in the manner shown in the illustrations. The car dashers were not disturbed but a stool was fitted on the top of each to furnish a sill for the vestibule sash. To provide ven- tilation with the cars closed in, the old fixed sash in the monitor were taken out and mounted on pivots so that they could be opened. SUMMER CAR REMODELED FOR YEAR-ROUND USE AND PREPAYMENT PARE COLLECTION Meanwhile the bulkheads were removed. To stiffen the body ends against racking sidewise flat steel car- lines 2 in. wide and i in. thick, curved to conform to the archways were bolted over the archways, one to each. The seating arrangement decided upon was a combina- tion of cross and longitudinal seats, Hale & Kilbum "Walkover" seats being used for the former. In what was originally a fifteen-bench open car this arrangement permitted the use of seven cross seats on each side and two 7-ft. longitudinal seats at each end. To support the outside end of the cross seat the seat panel was blocked out in the manner clearly visible in the foreground in the car interior view. The old sheet-steel panels were allowed to remain. The seat- ing arrangement provides an aisle 22J in. wide. Fold- ing steps and doors, with operating mechanism, were purchased from the Wason Manufacturing Company, which also furnished the window sash. The canvas curtains used in the open car were re- tained, so that they serve as shades in all seasons and as storm protectors when the sash are removed as they are in summer. When the sash are out a heavy screen, 18 in. wide, is attached to the car side from end to end. The above covers the principal items in the remodel- ing, others of which, such as the sliding curtains pro- vided behind the motorman, can be noticed in the illus- trations. The weight of the remodeled car is approximately 39,- 0001b. Allofthiswork was carried out under the direction of John Mellor, master me- chanic of the railway company. The remodeling of these cars is part of the general program of making the equip- ment available for modern fare collec- tion, and to decrease the accident hazard to the lowest limit. LOOKING OUT THROUGH THE VESTIBULE OF SHORE LINE REMODELED CAR INTERIOR OP REMODELED SHORE LINE OPEN CAR- SHOWING CONSTRUCTION DETAILS 114 Electric Railway Journal Vol. 54, No. 3 Bonds for Temporary and Permanent Track Construction In This Article the Author Takes Up Various Types of Rail Bonds and Discusses Their Advantages and Disadvantages from a Practical Standpoint By G. H. McKELWAY Engineer of Distribution, Brooklyn Rapid Transit System THE most common types of bonds are those in which the terminals are driven into or expanded in holes drilled or punched in a portion of the rail, usually the web but sometimes either the head or the foot. The earliest bonds were of this type and there has never been a time when any other type of bond has been more generally used. The title "expanded terminal" bonds does not apply to all of these bonds, as in many of them there is no change in the shape of the terminal, but the close contact is obtained by driving into holes already drilled in the of channel pins and pieces of old trolley wire. Holes are drilled in the web of the rail, the diameter of the holes varying from i in. to 2 in., depending upon the size of the conductor to be used with the channel pins. The diameter of the cylindrical portion of the pins should be 1/32 in. greater than that of the hole so as to insure sufficient contact and also provide a good grip on the wire. The wire is placed in the hole in the rail and also in the groove of the channel pin, and the latter is then driven into the hole with a hammer. To keep the pins from rusting and to improve the contact with M0il ■ { z BONDING SLEEVE.S. CAPS AND CHANNEL PINS FOR TEMPORARY BONDING Fig. 1 — Channel pin for temporary bonding. Fig. 2 — Soft steel bonding caps. Left, regular cap for end connection. Right, cross- connecting cap for through wires. Fig. 3 — Copper bonding sleeve and attachment. Fig. 4 — Tools for installing copper bonding sleeves. Top. drift punch. Center, driving tool. Bottom, Upsetting tool. rail. The terminals are tapered and can be wedged tightly in the hole when driven home. The latter type of bond is seldom used except for temporary work as it will not maintain the close con- tact and high conductivity of the true expanded terminal bonds. For service where the bonds will be needed for only a comparatively short time or on sidings where the main return circuit will not be affected and where a few high-resistance joints will not materially increase the total drop in voltage, these bonds furnish a cheap and fairly efficient means of connecting the abutting rails electrically. The cheapest temporary bonding is done by the use the conductor and the rail the soft steel of the channel pins should be copper plated by the manufacturer. Another but very similar type of bond uses what is called a bonding cap instead of the channel pin. This, too, is slipped onto the end of the conductor and placed" in a hole which has been drilled in the rail. The cap is made of soft steel with a groove extending almost through the top to permit of its being squeezed tightly against the conductor and the rail. Its diameter is 1/32" in. greater than that of the hole to insure a tight fit between the cap and the sides of the hole. Caps used' for cross-bonding have the hole for the conductor ex- tending entirely through them so that the wire can be^ July 19, 1919 Electric Railway Journal 115 run through and connect to one or more rails while making connections between two others. Another type of connection, very similar to the cross- connecting cap, but made of another metal and installed in a different way, is the copper bonding sleeve. This is shaped as shown in an accompanying illustration and, like the bonding cap and the channel pin, is finished with 1/32 in. greater outside diameter than the hole into which it fits. Owing to the softer metal of which this sleeve is made more care is needed in installing it than where steel terminals are used. To install it a hole is first drilled in the rail and then any burrs that may have been formed around the edge of the hole are smoothed off by driving a drift punch into the hole from the side where the wire is to enter. The next operations are to place the wire in the sleeve, insert the end in the hole in the rail, and then drive them home with a special driving tool which is slotted for about half of its length so as not to interfere with the bonding wire. When driven home the sleeve is clinched with an upsetting tool. This tool has a hole in the end into which the wire can enter but not the bonding sleeve. The result is that when hammered in, the projecting end of the sleeve is rolled back, forming a button or shoulder against the rail. There is still another type of bond which is used for temporary work, which has the terminals attached to FIG. G— SOLID TERMINAL PROTECTED RAIL BOND. FIG. 7 — HOLLOW TERMINAL RAIL BOND the conductor so that the bonds do not have to be made up each time that they are installed. This bond is called a removable mine bond and is made up of a piece of stranded wire 22 in. to 28 in. long soldered into tapered steel terminals, the terminals having slots in the top in which the wire can lie and be safe from the blows of the hammer during installation. The terminals are long enough to project well through the web of the rail so that they can be easily knocked out with blows from a hammer as well as being driven in by the same means. Expanded Type Bonds Should Be Used for Long Life and Permanent Construction All of the foregoing types of bonds, however, should be considered as of value for temporary work only, and when bonds are to be installed with the hope of their remaining in good condition as long as the track, some other type should be used. The forms most generally used for permanent work are the solid terminal com- pressed type or the hollow terminal pin expanded type, the former being in more general use. The hollow terminal bond is easily installed without the use of any heavy tools and for that reason is pre- ferred by many companies. Another reason, for its be- ing in favor, especially on electrified steam roads, or on high-speed lines where traffic delays must be avoided, is that there is no compressor or other equipment necessary for its installation, which would project above and be at- tached to the rail head, and which would require removal before the cars can pass. Another advantage of the hollow terminal bond is that it can be installed entirely FIG. -REMOVABLE MINE BOND FOR TEMPORARY TRACKS from one side of the rail, which is of great value as it requires that the paving on only one side be opened up and it also makes possible the bonding of joints on curves or at other points where guard rail, which would prevent the use of a compressor, is used. With the hollow terminal bonds the only tools needed for installation, after the holes have been drilled or punched and perhaps reamed, are a heavy hammer, weighing preferably about 3 lb. ; a taper punch, and the little drift pins for plugging up the holes in the bonds. Sometimes a driving tool, to receive the larger end of the taper punch and protect it from the blows of the hammer, is also carried. This adds to the amount of the equipment to be carried around but prevents hard- ened steel pieces of the taper punch from being chipped off when the punch is struck. The approved method of installing the bonds, after the holes have been prepared, is to insert the terminal into the hole and then drive the tapered punch entirely through the hole in the terminal, this punch having first been greased or oiled. This punch not only prepares the way for the drift pin which is to follow and insures its being driven straight, but also expands the hole in the terminals in., the punch being that much greater in diameter than the hole. The pressure between the terminal and the rail is still further increased, a moment later, by the driving in of the drift pin, which forces the cop- per out another 32 in- While the above is the ap- proved method it is not the ordi- nary one, as it requires the use of too many dif- ferent tools to be followed out rily conscientious FIG. -SCREW WEB TYPE OF RAIL BOND COMPRESSOR carefully, unless more than ordina- bonders are employed or the men are carefully watched. A job that will look just as good and which, in many cases, will be just as good, can be dene with fewer tools and less labor, so that to the ordi- nary man there is no use in going to the extra trouble. 116 Electric Railway Journal FoZ. 54, No. 3 To install bonds in the simplified way, the terminals are merely pushed into the holes, perhaps tapped with the hammer to make sure that they have gone all of the way home, and then the drift pins are driven in, ex- panding the terminal by J in. at one operation. When this is done, very often the pin will not be driven in straight, and on other occasions, not being lubricated, it will tear the copper. However, while the railway com- pany is the loser if the latter method is used, the men are gainers as they do not have to carry around any tools other than the hammer and a pocketfull of drift pins. No grease, punch, or driving tool is needed. Greasing the punch is a messy job which the men do not like and the punches are liable to be lost, this being especially true where the men are working on bridges or elevated structures without floors. When the punch is driven through the terminal, unless care is taken, it will not be caught but will drop down between the ties and never be recovered again. For the installation of compressed bonds less equip- ment is needed, the compressor being the only tool re- quired, but this is so bulky as to weigh many times more than all of the tools used with the hollow terminal bonds. Bond compressors are made in sizes ranging from 25 lb. for use with the very small sizes of T-rail, up to 156 lb. which is needed to handle the large girder rails of 9-in. size. Hydraulic compressors often exceed 200 lb. in weight. Some of the compressors on the market are fitted with leveling or adjusting screws by which the vertical distance from the point of the plunger to the top of the rail can be altered and the compressor can rest on the rail directly over the bond hole. The point of the plunger will then be directly opposite the center of the terminal. This refinement, however, is really unnecessary and, if the bond holes have not been drilled at exactly the right height, something which often happens, the point will not compress the terminal at the exact point it should, unless the screws are turned again. This proceeding takes time, especially if the wrench is not handy, which it seldom is, and as a result the change in height is seldom made, as the class of men generally employed as bonders usually are none too care- ful in doing their work. The ordinary way is not to make use of the screws but to remove them, if the compressor is fitted with them, and then not to attempt to place the center of the compressor directly over the hole but rather slightly to one side of it, thus when inclined, the jaws will cover the terminal and the point of the compressor will be at the right height. This height can be easily altered by slid- ing the compressor a short distance, one way or tho. other, along the head of the rail. When making a comparison of the efficiency of the solid-terminal compressed bond with the hollow-terminal pin expanded bond, the claim has been made that the surface of the terminal of the latter type is everywhere brought into more intimate contact with the side of the hole than is the case with the compressed bond. The reason given for this is that the pressure from the pin is exerted equally at all points through the hole while the compressor is effective merely at and near the edges of the hole, and so hardens the copper that there is very little outward pressure at the center of the hole. When the copper in the terminals is sufficiently soft, however, and that is almost always the case, this trouble is not experienced in practice. Results of laboratory tests where, of course, greater care than that exercised in the field is taken, seem to indicate that the compressed bond has slightly less contact resistance than the pin- driven one. The difference in resistance of the two types, however, is so small as to be negligible for all practical work if the bonds are installed with the same care in the field as in the laboratory. That this is not Hi done is certain, and it is the writer's belief that it is easier to deviate from the correct practice when in- stalling the hollow terminal bonds than when the solid terminal type is used. Button-Head on Terminal Gives Greater Contact Area and Seals Cracks The compressor forms a "button" on the end of the terminal which not only gives a little more contact area by pressing against the web of the rail, but also seals any cracks that there might be between the terminal and the sides of the hole, thereby preventing the en- trance of moisture which would form rust and soon greatly increase the contact resistance. To form this button properly the compressed terminal should be ap- proximately I in. longer than the thickness of the rail web, or about i in. longer than that required for a properly fitting hollow-terminal bond in the same hole. It was formerly the custom to taper the bond termi- nals instead of machining them, but the present prac- tice is to make them perfectly cylindrical and to machine them. The latter practice is much to be preferred, as the finished terminal can be made a very close fit in the July 19, 1919 Electric Railway Journal 117 hole and yet there can be no danger of its not going all of the way through the hole. The most troublesome form of bond was the old tapered-terminal type, one end of which would easily enter the hole while the other end would be too large, thus forming a shoulder just before the bond was all the way home. The tapered terminal also left too much rope at the small end which 'had to be filled up with compressed copper. Compressed bonds have been used both in the base of all types of rail and in the tram of girder rails. Those compressed into the tram of the rails are now very seldom used although at one time they were in- stalled quite extensively. They were made in compar- atively short lengths and their installation required the disturbance of very little pavement. It did necessitate, however, the use of a special punch for making the hole in the rail and a special compressor for expanding the terminals in the holes so made. For bonding under the base of the rail, special com- pressors and punches are needed of different types from those employed when the bonds are placed in the tram of girder rails. These bonds are still used and in much larger quantities than those in the tram of the rails. Their use, however, is confined mostly to third-rails in- stead of running rails. The bonds are made of ribbons in the form of a "U," the loop hanging down under the rail. On account of the angle of the base of the rail ordinary terminals cannot be compressed satisfactorily, as much more of the button would be made on the lower edge of the terminal than on the upper. To avoid this the terminals are beveled as shown in the illustration. For installation on rails imbedded in concrete such bonds would have no flexibility, as they as well as the rails would be fixed firmly in the concrete. In such a situation, however, little flexibility would be needed, but on the other hand it would be almost im- possible to get at the bonds in order to make any repairs to them. The U-bonds have been used under the base of the rails in open track and have given fairly good service there although interfered with more or less by the ballast. It is impossible to install the bonds in rail already laid in concrete, and the best way, both there and in open track, is to bond the rails before they are laid and then line up a long section of rail at one time. Bonds for Installation in Head op Rail There are two types of expanded terminal bonds that have been designed to be installed in the head of the rail. In attaching the bonds, holes are drilled only part way through the head of the rail and then the bond ter- minals are driven into the holes with a hammer, com- pletely filling them. In an older type of not more than 250,000 circ.mil sec- tion two holes, each i in. in diameter and 4 in. depth, are drilled li in. apart in the head of the rail and close to its end. An annular groove or a series of threads is then cut in each hole, either by revolving a tool with cut- ting teeth in the hole and swinging it slightly so as to make the teeth cut the groove, or by tapping the hole so as to form the threads. Any burrs around the edge of the hole are then re- moved by lightly driving in a blunting punch. After this the terminals, which are J-r in. longer than the depth of the holes, are inserted and then driven in with a hammer. The first blows are light ones but more force is used to complete the operation. Directly over each terminal is a boss which receives the hammer blows and these blows are continued until the bosses are flat- tened out and until that portion of the terminal con- necting the studs has been hammered down somewhat. By that time the soft copper in the studs has flowed into the threads or ring in the sides of the hole so that it is practically impossible to remove the bond after it has been installed, and the close fitting ring of copper ef- fectually seals the hole against the entrance of moisture that would cause the contact to deteriorate. The use of two terminals gives an unusually large contact surface at each end of the bond, especially so since the stud makes contact with the bottom as well as the cylindrical surface of the hole. Another advantage in the use of two terminals is that each prevents any twisting strain from reaching the other, thereby help- ing to keep the studs tight in the holes. The wires lead straight down out of the terminals so that there is a minimum of danger of wire breakage due to ver- tical movement of the rails, while the U-shaped loop is well designed to with- stand stresses coming from other directions. These precautions are necessary, however, as the extended length of the bonds is ordinarily only 7 in., too short for track which has not a fairly good foundation and which is not well maintained. Another type of expanded terminal bond which is ap- plied to the rail head is shown in the illustration on this page. This has only one stud at each terminal. To provide greater contact area than that in a hole drilled with the ordinary twist drill, a special milling cutter is used. This cuts an annular hole in the rail f in. in diameter and I in. deep and leaves a i-in. pin in the center of the hole. The stud of the bond is hollow to fit over this pin and into the groove surrounding it. The bond terminal is fitted into the hole and then expanded by blows from a hammer as is done in in- stalling the twin terminal bond. The contact area is provided by the three sides of the annular groove. FIG. 14— SINGLE-STUD, DOUBLE- CONDUCTOR RAIL BOND Survey of Pole Lines A letter has been sent to member companies of the National Electric Light Association by William C. L. Eglin, chairman of the committee on safety rules and accident prevention, calling to their attention the sur- vey of existing pole lines throughout the United States and Canada, which the committee's engineers are con- ducting jointly with those of the Bureau of Standards. The survey is being made to determine for future aerial line construction the effect of the loading require- ments proposed in the new issue of the National Elec- tric Safety Code. It will be conducted, so far as possible through the geographic sections of the N. E. L. A., and it is expected that the work will be sufficiently well or- ganized so that each company to be visited will be notified in advance. Each company is requested to be prepared to desig- nate immediately the lines to be surveyed in order that all possible speed will be made. 118 Electric Railway Journal Vol. 54, No. 3 FORMS USED FOR FOLLOWING AND RECORDING MAINTENANCE WORK July 19, 1919 Electric Railway Journal 119 Car Maintenance Records Facilitate Work Simple, Accurate and Adequate Records Enable the Responsible Heads of Car Maintenance Departments to Supervise the Work Intelligently By C. R. McMAHON Master Mechanic, Des Moines (Iowa) City Railway THE Inter-Urban Railway of Des Moines, Iowa, has one main shop, where all cars are sent for heavy repairs, such as changing wheels, armatureS|, paint- ing, etc., two city operating carhouses, and one interur- ban operating carhouse where all inspections and run- ning repairs are made. Cars receive a general inspection on a mileage basis with 900 miles between inspections; this work, of course, is being done at the operating car- houses. The record of mileage is kept at the main shop, and as cars are due for inspection the operating car- house foremen are notified. The accompanying illustra- tions show several forms which are being used for following and recording this work. The "Daily Report of Car Repair Shop" form is made out daily and shows all cars in the shop for repairs, also cars not "OK" for service at the end of a day's work. Checks can be made of these sheets to locate cars in shops for repairs, also cars not "OK" for service at the end of a day's work. Comparison can be made of these sheets to locate cars that come to the shop too often. The form "Daily Report of Changes in Trucks" is filled out by shop foremen when wheels, axles, arma- tures, gears, pinions, etc., are changed. From this re- port the information needed to get the proper mile- age, etc., is transferred to the respective cards shown in the accompanying illustrations. The "Armature Record" tag is attached to all arma- tures removed from cars, and stays with the armature until it is completely repaired and tested "OK". The record is then transferred to a book kept by the arma- ture-room foreman for future reference. One of the most important of all our records is the blank called "Trainmen's Report of Condition of Car." This report is turned in daily by every car crew that puts a car in the carhouse. One blank report is put in a box provided on the car, nightly, by the man who takes the register readings. The first crew to take out the car signs up on the blank and leaves it with the car for the next crew, while the crew putting the car in the carhouse at night takes the report from the box and turns it over to the carhouse foreman. It is compul- sory that all crews handling the car sign the report, re- gardless of whether there are any defects on the car or not. Reports are examined by the carhouse foreman, and when the defects are repaired he signs the reports and sends them to the master mechanic's office for exam- ination and filing. We have found these reports to be valuable to the claim department in settlement of claims where defects to cars were claimed, as reports quite often show that the train crew had reported the car in good condition on the date of an accident. The form "Daily Car Damage" is made out daily and sent to the superintendent of transportation. This lists all damage done to a car, such as broken glass, fenders, steps, collisions, or anything where the crew may be responsible for the damage. With the proper follow-up system, this damage can be kept at the lowest point. The "Car Assignment" form is sent to the main shop from operating carhouses, showing where all cars are running. One blank is used for regular runs and one for tripper runs. From our sheet showing the mileage of each particular run, the individual car-mileage is added till it totals 900. The form "Cars Due for Inspection" is sent daily from the main shop to the different operating carhouse foremen. It shows the cars due for inspection on the following day. When cars are inspected the form is returned to the main shop with any notes under "Re- marks" to show why cars listed opposite were not inspected. The "Daily Inspection Record of a Car" form is filled out as to car number, date and operating carhouse, by the foreman and put on all cars due for inspection on that date. As the different men repair and inspect the equipment they sign their names opposite the parts listed. Reports are checked by the foreman at the end of the day and then are sent to the main shop for filing. The form "Daily Report of Car Failures" is made out daily by the operating carhouse foreman, and sent to the main shop. All cars pulled off the line for any ARMATURE RECORD TYPE _ HORSE POWER NUMBER.. WHEEL RECORD AUSE OF REMOVAL ARMATURE AND WHEEL, RECORD FORMS SHOW SERVICE OBTAINED 120 Electric Railway Journal Vol. 54, No. 3 defect are listed on this form. At the main shop these are transferred to the form shown as "Record of Car Failures," there being one of these blanks for each car, and by reference to them all the failures made by any particular car can be seen at a glance. It also shows the lines the car was on, and the motorman and conductor loinning the car at the time, thus giving a chance to check up and find out whether the fault lies with the car or the crew. From the "Daily Report of Car Failures" the form "Daily Report of Equipment Failures" is also made up. This shows at the end of the month the total number of failures and the exact number from any particular cause. On a large sheet similar information is shown for the full year. A record is also kept showing the number of cars turned in for defects by each individual motorman, who are all listed by badge numbers. This information is also taken from the "Daily Report of Car Failures" sheet. Increased Sig^naling on the York (Pa.) Railways The Use of the Tracks Signaled by Other Railway Lines Necessitates a Special Layout THE York (Pa.) Railways has recently increased its equipment of Nachod automatic signals by install- ing a block of two signals involving novel features required by the track layout. Referring to the accompanying diagram, the block to be protected is on West College Avenue from South George Street to the College turnout, and is used both ways by the North York-Princess Street line with fifteen minutes headway. At College turnout the layout is standard, with signal B near the switch point and facing toward the turnout. Trolley contactors 3 and 4 are located on the siding as shown, 3 being ordinarily used as a signal setting contactor, and 4 as a clearing contactor, though they are both of the "directional" type and function selectively to set or clear the signals according to the direction of the car. The signal A at the other end of the block faces north on South George Street. It is necessary that North York-Princess Street cars set the block A-B on South George Street before pass- ing into the single track; and it is this condition that causes the special layout. Of the double track on South George the southbound is also used by two other lines that do not use the block A-B; these being the South George-Jackson line with fifteen-minute head- way, and the Red Lion-Windsor line with hourly service increased to half-hourly morning and evening. Thus any contactor placed on the south-bound track on South N ^ -^1 2 W/res West College Ave. Prospect Line. George would be traversed also by the two lines just mentioned. The trolley contactor for setting the signals, located at point 1, is therefore of the "current selective" type. North York-Princess cars will use two or more points of power on the controller while passing the contactor, which will set the signals, while the other cars mentioned will drift under it and not affect the signals. Neither will these motormen observe the indi- cations. The clearing contactor for signal A would be placed on the crossover were it not for the fact that the cross- over, as well as the north- bound track, is used also by the Prospect cars with 30-minute headway. It is therefore placed at the point 2 on the single track curve and connected "uni- directionally" to clear only, it being inert when trav- ersed westward by the en- tering car. The arrows on the plan show the direction of cars. The signals are of the permissive variety, known as type CD. When the block is taken from one end, say B, the signal A governing opposing movements goes to "Stop", signal B show- ing permissive to allow fol- lowing movements through the block, while signal A at stop prevents opposing movements until the block is again vacant. This protection of a number of cars in the block is accomplished by a counter in the signal relay. The trolley contactors in the overhead are connected as directional and uni-directional and are of the shunt type, while the current selective contactors are of the series type. All of them are without moving parts and make a soft wiping contact with the flanges of the trolley wheel. The signals (as shown in the accompany- ing halftone) are in cast-iron cases mounted on re- versible iron brackets offset from the pole. They give indications by combined lights and disks simultaneously displayed, and have three positions. The signal relay, including magnet coils, contacts and resistances, is im- mersed in a tank of oil forming the lower part of the case. A junction box lower on the pole gives con- venient access to the circuits for fusing, testing and for manual control. The signal itself may be lowered to the ground without disconnecting the cable. Two line wires through the block connect the signals. MOUNTING OF SIGNALS AND JUNCTION BOX The National Board of Fire Underwriters has issued for members of the National Safety Council a special edition of the list of appliances inspected for accident hazards. Copies may be secured either from the under- writers or the safety council, with offices in Chicago, 111. CIRCUIT diagram FOR BLOCK SIGNALS The Indianapolis Traction & Terminal Company is re- building its cars for pre-payment operation. One hun- dred and forty-nine cars had been changed up to May 1, and others will be altered as they come into the shop for overhauling. The cars are single-ended. July 19, 1919 Electric Rai-lway Journal 121 Tower Trucks and Cars at Minneapolis The Twin City Company Has Built Four Auto Towers and Four Tower Cars, Which Handle All of the Emergency Work in Minneapolis and St. Paul IN THE MAINTENANCE and construction of more than 450 miles of overhead system the Twin City Rapid Transit Company, Minneapolis, uses four automobile tower trucks and four tower cars, half of them in Minneapolis and half in St. Paul. Although the tower equipment used on various railway systems is similar, this equipment is of particular interest in some details because it is standard throughout and be- cause it was all built by the company. The four automobile tower trucks are each equipped with a 2-ton commercial chassis. Trucks 1, 2 and 3 are each equipped with 35-hp. engines while truck 4 has a 45-hp. engine and weighs about 2000 lb. more than the three other trucks. The towers are built of wood, fir being used in most parts, steel being used only as bracing* in the platform and for the sliding surface of the removable section. The vertical members are 3-in. X 3-in., cross-braced by i-in. x 3-in. members in the low- er section and by 14-in. x 3-in. members in the upper section. The framework is bolted together with f-in. carriage bolts. The truck body has an over-all length of 16 ft. 10 in. About 7ft. at the rear end of this is taken up by the tower. The over-all width of the truck is 6 ft. The tower when lowered stands 12 ft. If in. high from the ground and can be raised to a height of 12 ft. 71 in. The height lowered is limited by the low overhead clearance of some viaducts under which the trucks must pass. The tower platform measures 10 ft. x 3 ft. in. with an overhang of 5 ft. llh in. Main Features of Towers One of the main features of the towers is that they are designed for complete rotation at the base. The reason for this is the desire for greater stability than usually results with rotation of the platform only. The radius of rotation is 2 ft. 10 in. and the station- ary surface is a 3-in. x 3-in. x i-in. angle ring, the bearing surface of the tower corners being steel plates. The tower is revolved by hand and is held in position by cam levers. It is also raised and lowered by hand, an eight-tooth sprocket on the crank operating a forty- tooth sprocket on the drum axis by means of a No. 55 Jeffrey detachable chain. This operation is easily accomplished by one man. Details of the tower equip- ment are shown in the accompanying illustrations. A supply of tools and small equipment is carried in boxes at the back of the truck while ropes, tackle, larger equipment, 500 ft. of span wire and 200 ft. of trolley wire are hung conveniently on hooks on the sides of the toAver. Signals are transmitted to the driver by a gong located on the tower. The cab is entirely inclosed for cold or inclement weather, although windows on all sides can be lowered when desirable. The trucks are equipped with 4-in. single tiros in front and 4-in. dual tires in the rear. These tires give an average of 10,000 RACK WITH BRAKE FOR TROLLEY WIRE REEL, ON TOWER CAR miles. The trucks weigh stripped from 6500 to 7100 lb. and the crew comprises three men. Car Towers Similar to Those on Trucks The towers for the cars are veiy similar in construc- tion to those used on the trucks. The vertical members are the same but the cross-bracing is I in. x 3 in. in 122 Electric Railway Journal Vol. 54, No. 3 the lower section and the same in the upper section. While the auto tower measures about 4 ft. square the tower on the cars is about 4 ft. wide by 6 ft. long. This tower also is not quite as high, either lowered or raised, as is the auto tower and has a little greater overhang. The rotation feature on these towers is the same as that already described, the radius of rota- tion in this case, however, being 3 ft. 9 in. The ar- rangement for lowering and raising these towers is sim- ilar, with the exception that one tower is equipped with a three-cylinder air motor for air operation. The capacity for tools on the cars is more extensive than on the trucks. On one side of the cab is a work bench with vise, etc., and on the other a series of pockets or bins containing all kinds of small sup- plies. The cars are also equipped with a reel of approxi- mately 1 mile of trol- ley wire mounted on a rack or wench equipped with a brake. The tower cars were built entirely by the company. The trucks are standard Twin City equipped with 4 GE-57 motors geared for a speed of 45 m.p.h. By means of a series- multiple switch the four motors can be operated on a series in the city and when stringing trolley wire giving a speed of about 4 m.p.h. on the first notch of series. The con- trol is General Electric K-14. The floor fram- ing is 4-in. x 6-in. yellow pine reinforced by 6-in. pine channels for the side sills. The flooring is 2-in. pine. The length FIG. 1. DETAILS OF AUTOMOBILE TOWER TRUCK CONSTRUCTION the width 7 ft. 8 in., the cab is 10 ft. long and the height from top of rail to top of cab is 11 ft. 4 in. On construction work the tjFolley wire is strung alive and furnishes energy to the motors of the car by a unique device as shown. The end of the reel is attached to the live overhead at the starting point. By means of a hook over the trolley wheel an auxiliary wheel is suspended and the new wire being strung passes through this wheel and over a roller on the front of the low- er platform. Thus the energy for oper- ation is furnished through the new wire being tak- en from the reel. Four men with this equipment can take down and reel up 1 mile of old trolley wire and string the same amount of new wire in four hours. The auto-towers are used on emergen- cy repair work and for small maintain- ance and construc- tion, as they can be located beside the track with no inter- ruption to traffic. The cars, however, are generally used on any work of over two spans in length and where traffic is light. This equipment has proved of great assis- tance in carrying on the maintenance work of the system and its operating cost has been very low, as is shown by the fol- TYPES OF AUTO TOWERS AND TOWER CARS Fig. 2, the Twin City auto tower truck and its equipment: Fig. 3, stringing live trolley wire from which the car is operated; Fig. 4, the Twin City tower car and its equipment July 19, 1919 Electric Railway Journal 123 The average cost to operate the tower trucks per registered mile for the years 1917 and 1918 has been: Truck 1 0.1413 cent per mile Truck 2 0.1576 cent per mile Truck 3 0.1098 cent per mile Truck 4 0.2069 cent per mile These figures include all expense such as gasolene, lubricating oil, tires, insurance, painting and general repairs. Unusual Method for Moving Two 250-Hp. Boilers Pacific Electric Plan of Moving Two Boilers From the Vineyard Power Plant to a New Plant Located at Torrance Is Described By Clifford A. Elliott Cost ^Engineer, Maintenance of Way Department, Pacific Electric Railway, Los Angeles, Cal. IN AN article in the Electric Railway Journal for March 22, 1919, covering the removal and reinstalla- tion of a power-plant smokestack, mention was made of the intended removal of two 250-hp. Stirling boilers from this company's Vineyard power plant to a new power plant at Torrance constructed to serve the car shops under erection at that point. When the occasion arose for the removal of these boilers it was at first thought to be impossible to remove each one complete, as each consists of four 24-in. drums with numerous 3-in. connecting tubes. The cutting of the tubes con- necting the four drums was considered and it was estimated that it would cost approximately $3,000 to remove them and to weld them in place. A contractor however, successfully carried out this work without dismantling the boilers, with considerable saving in time and expense. In carrying out this work each boiler was first re- leased from its permanent position on the brick founda- tion, and the bolts used to hold the steel frames in place were removed. The rear end was then elevated to the same level as the front, and after cribbing had been set up the boiler was moved on rollers across the steam mains, but without touching them, and over additional cribbing to a point opposite the door. This door was in the side of a concrete wall of the power plant, and it was necessary to enlarge it to 4 ft. jamb by 101 ft. high. A donkey engine located on a flat car outside the power plant was used to tow the boiler by means of a cable line. Planking was placed on top of the cribbing as a surface for the rollers. The maximum height of the cribbing units was lOi ft. When the boiler had been brought to a point opposite the door it was lowered by removing the sectional units of the cribbing. It was then turned at right angles to the door, and moved on rollers and skids outside the building. Here it was again moved by means of rollers up an impro- vised timber incline over an 8*-ft. retaining wall onto a steel flat car which transported it to Torrance. Four flat cars were necessary to handle the two boilers and equipment. One car was used for each boiler, a third car for valves, door fronts and miscellaneous parts and the fourth for the breeching, donkey engine and hoisting equipment. Safety Cars and Advertising IN A PAPER on the safety car recently delivered be- fore the Arkansas Utilities Association, A. L. Faber, Westinghouse Electric & Manufacturing Company, said: "The safety cars enable the railways to offer a service that will benefit the entire population of the community. The interrelation between full cars and th*! retail business of the city is perfectly definite. It is practi- cally as much to the interest of the merchant to have efficient and sufficiently frequent service as to the street railway. "Advertising of schedules and service conditions is, therefore, a very important factor, and since the in- terests are parallel, a booklet could be printed with representation of both the merchants and the railway in which the schedules and similar information can be given by the one and the sales message by the other. This booklet would represent the interests of the entire community and its cost would be very small to the railway company. "With the application of the safety car, a broader advertising policy and such relief in fares as the indi- vidual properties require, the street railway interests have some hope of operating for the benefit of all concerned." Be Wreckless — Not Reckless The National Safety Council, electric railway sec- tion, uses the above phrase in summarizing the causes of car wrecks. The causes listed are: Insufficient headway, conversation with motormen, taking curve too fast, slick rails, not signaling at crossing, improper testing of equipment, unreported defects and misunder- stood orders. ONE OF TWO 2 GO-HP. BOILERS MOVED INTACT BY PACIFIC ELECTRIC RAILWAY The Electric Railway Section of the National Safety Council announces the appointment of J. H. Mallon, safety engineer. Metropolitan West Side Elevated Rail- way, Chicago, as chairman of its bulletin committee. 124 Electric Railway Journal Vol. 54, No. 3 Photo hii llnnix Ik liirnnj. Wdsliinfituii. I). ('. NEW FEDERAL ELECTRIC RAILWAYS COMMISSION IN SESSION AT WASHINGTON, D. C. Left to Rigiit: Louis B. Wehle. lepresenting Eugene Meyer, Jr., of the War Finance Corporation; Dr. Royal Meeker, commis- sioner of stati.'itics of tlie Department of Labor ; Edwin F. Sweet, Assistant Secretary of Commerce and vice-chairman of the com- mission ; Cliai-les E, Ehnquist, president and general solicitor of the National Association of Railway & Utility Commissioners, who is cliairman of the commission ; standing. Charlton Ogburn, executive secretary of the commission ; Philip H. Gadsden, chair- man of the committee on readjustinent of the American Electric Railway Association ; Charles W. Beall, member of the firm of Harris Forbes & Company, New Yorli. Absent. George L. Baiter, Mayor of Portland, Oregon ; W. D. Mahon, president of the Amalgamated Association" of Street & Electric Railway Employees of America, Detroit, Mich. Federal Hearings Commence President Pardee and Chairman Tripp Open the Railway Case at Washington — Extended Statistics Presented on Status of Industry — Other Witnesses Give Testimony THE first session in Washington of the long-ex- pected federal inquiry into the status of the elec- tric railways of the country was held on Tuesday, July 15. One prior hearing was held in New York on June 19, when ex-President William H. Taft was the principal witness. Since that time the committee of one hundred has been organized to prepare and present the electric railway case, and this was the first meeting at which this committee was represented. The hearings were held in the large audience room on the twelfth floor of the Interstate Commerce Commission Building at Eighteenth Street and Pennsylvania Avenue, N. W., Washington, Chairman Elmquist opened the session on Tuesday morning, shortly after 10 o'clock. The commissioners in attendance, besides himself, were Messrs. Sweet, Meeker, Wehle, Beall and Gadsden. Those absent were Commissioner Mahon and the representative of the American Cities League of Mayors, Mayor Baker of Portland, Ore. Charlton Ogburn, council of the com- mission was also in attendance. The presentation of the case of the association and of the committee of one hundred was in charge of Presi- dent Pardee, Chairman Tripp, Counsel Bentley W. War- ren, Secretary Burritt, J. W. Welsh, and H. C. Clark. Others from the industry, or the committee of one hun- dred in attendance at the first day's session included S. M. Curwen, W. M. Coleman, W. J. Clark, Barron G. Collier, E. J. Dickson, W. C. Ely, Van Horn Ely, F. W. Frueauff, Edwin Gruehl, W. F. Ham, G. E. Hamilton, J, H. Hanna, C. S. Kimball, J. B. Lackey, Randall Mor- gan, E. J. Murphy and J. H. Stephens. Abstract of Mr. Pardee's Statement Chairman Elmquist in opening the meeting first asked Mr. Pardee to explain the position of the electric railways. In his address Mr. Pardee said in part: We are before your commission because a crisis has been reached in the conduct of this very important and essential enterprise. We are no longer able, under existing condi- tions, to continue in the performance of the functions which the electric railways are designed to perform. It is no longer a question of what return shall be allowed to the owners, it is a question as to what service, if any, shall be rendered to the public. Owing to the complete system of control and regulation exerted over us by the public authorities, which both pre- scribe our service and control our rates, we are unable to readjust ourselves to changing conditions as every other industry, not so hampered, is readjusting itself. We realize fully that your commission is without power to take per- emptory action, or directly to put into effect any recom- mendations which you may make. You, however, bear the commission of the President of the United States; you were appointed at the joint suggestion of the Secretaries of Commerce and of Labor. Your conclusions and recom- mendations will have the confidence of the people and will carry with them the weight that must always be attached to the wishes and conclusions of the National Administra- tion. Your appointment of the electric railway industry affords an opportunity of presenting to the public, whose representatives you are, a true picture of the state into which it has fallen through no fault of its own. There are two major phases of the situation which we now face. The first is that there has never been a proper Electric Railway Journal 125 Juhj 19, 1919 conception either on the part of the owners of these prop- erties, nor on the part of the public, as to the factors which should govern the service to be rendered or the fares to be charged by electric railways. This situation, which existed before the war, is entirely unconnected with the changes wrought by the war, but is one of the fundamental reasons why the war has helped to bring disaster upon us. The second phase was the direct result of the war. The government took control of our labor — it raised the wages of our employees in many cases as much as 100 per cent; it took command of our fuel supply, and fixed the prices which we were compelled to pay for coal; it fixed the price of every commodity that entered into the maintenance and operation of electric railways; in a vast number of cases it prescribed the service which we were to perform, and called upon us companies for construction involving many millions of dollars. In fact, there was not a phase of electric railway operation in which the government did not interfere, with the result that the cost of operating our roads was very greatly and materially increased. To assist us in bearing these burdens it did nothing. We are not here to claim that this action of the govern- ment was not entirely necessary and entirely proper, or that it exclusively affected our industry. But we do say that its effect upon the railways of the country was the more pronounced and the more disastrous because, alone of all the industries affected, the public utilities were unable to apply the obvious remedy — an increase on their own volition in the price of their product to meet the increase in its cost thus forced upon them. These two phases of the situation we propose to lay before you in detail. The association which I represent and the committee of one hundred, to which it has intrusted the presentation of its case before your commission, do not intend to impress upon you in detail their own views as to the remedies which should be applied to the cure of the situation. We do believe, however, that there are two fundamental ideas which will inevitably force themselves upon you for your consideration. The first of these is that the co-operation of the public is a sine qua non to the stabilizing of electric railvyay conditions; that there must be impressed upon the public a new conception of the relations between the com- munities and the public utilities which serve them; that the antagonism which has heretofore prevailed is disastrous to both interests, and that only when the public and the companies work together to secure efficiency and economy in operation can the desired service be furnished at "a reasonable price. The second is that in order to provide through the em- ployment of private capital proper transportation facilities for cities and for rural districts the basis of compensation must be so determined as to provide an assured return and a rate of fare so flexible as readily and automatically to adjust itself to the cost of providing the service. Mr. Warren Outlines Case At the conclusion of Mr. Pardee's address Bentley W. Warren, counsel for the committee of one hundred, outlined the case of the electric railways. He said that a very severe condition was confronting the industry and that the railways would endeavor to place before the commission statistics showing this condition and the possible remedies which might be supplied. He mentioned as an illustration of the situation that in Massachusetts, his own state, where there was an in- vestment in electric railways of almost a quarter of a billion dollars and gross receipts last year of approxi- mately $45,000,000, the deficit over operating expenses and fixed charges during 1918 was somewhat more than $5,000,000. Abstract of Address of General Tripp Mr. Warren was followed by General Tripp, who spoke as chairman of the committee of one hundred. General Tripp said in part: We are here not simply to give you the views of investors who have already suffered a great loss and who are threat- ened with ■ still greater loss, but also, as manufacturers, bankers and insurance men, to present this case in its very broadest aspects and as representing the business and industrial elements of the nation affected by an industry in which some $6,000,000,000 are invested, which has a reve- nue of $730,000,000 and which is in danger of complete collapse and dissolution. It jeopardizes more than the interests of those immediately connected with it. Its effect will be a real cause for alarm on the part of insurance companies, bankers, trust companies and other fiduciary institutions which in good faith and with then sound busi- ness judgment have invested savings intrusted to their care in the bonds and other securities of electric railways, and it certainly would be a matter of serious concern to manufacturers who find in the electric railways a cus- tomer for nearly $200,000,000 annually of their product. The appointment of this commission is evidence that the extremely critical situation in which the industry finds itself is also a matter of concern to the federal government, and I take it the concern of the government arises not wholly nor perhaps primarily out of any particular con- sideration for the railways themselves, but rather that its effect upon the general business fabric of the country, to which I have briefly alluded, is the uppermost factor which led to your appointment; and, consistent with that, there are represented upon your commission the Treasury Depart- ment, the Department of Commerce and the Department of Labor. The Treasury Department is interested because an indus- try, which requires each normal year new capital to the ex- tent of some $200,000,000 and whose refunding operations require even a larger sum, cannot indefinitely remain in such a condition as the electric railways are now in with- out having an adverse effect upon the financial system of the country. The Department of Labor is concerned because the ques- tion of wages and of working conditions and of employment are involved, not only as it directly affects railway com- panies but also as it affects the manufacturing, companies which supply the materials and apparatus used by the railways. The Department of Commerce is concerned because, to an extent seldom realized until strikes or other circum- stances cause an abandonment of service, the business and commercial life of the country is closely bound up with the system of transportation afforded by electric railways. The appointment of your commission furnishes the first opportunity for the electric railways to present their case as a national problem. The present methods of regulation and control of electric railways have failed. It needs no argument to prove that. The mere fact that a whole in- dustry, covering the entire United States and operating under different local conditions — the mere fact that such an industry as a whole is on the verge of bankruptcy at I time when unregulated industries are at the height of prosperity speaks tor itself. Present Methods Not Sufficiently Elastic The present methods of regulation and control are en- tirely too inelastic to respond to the stress of changing conditions and have not permitted the adjustment of the price of the product to meet the cost of the product. Any method of regulation which does not permit the application of that simple rule will always be a failure. No doubt this is a fundamental truth which every one recognizes, but in the case of electric railways there has been intro- duced a psychological factor which has hindered the ad- justment of the electric railway problem. The old system of contracts between communities and private companies, whereby the companies agreed for certain fixed fares to do certain fixed service, has resulted in the popular belief, which it has been hitherto impossible to eradicate, that furnishing street railway transportation through the me- dium of private enterprise amounts to giving away public privileges to private individuals who have realized enormous profits. The relations between the municipality and the electric railway cannot be satisfactorily fixed upon relations of a simple contract such as might exist between two indi- viduals. I entirely subscribe to the theory of state control and regulation of these utilities; and, that theory having been admitted, it is impossible for the parties to stand in simple contractual relations, and the idea should be entirely eradicated from the public mind and the proper conception of the functions of an electric railway be sub- stituted. This concept I believe to be that the electric railways are acting as agents for the public in furnishing transportation to the public, and for that service they should receive an adequate and just return upon the money invested in such service on terms capable of prompt adjust- ment to meet changing conditions of operation and of finance. 126 Electric Railway Journal Vol. 54, No. 3 The electric railway industry is faced at this moment with three alternatives and the issue will come immediately: (1) Municipal ownership. (2) Private ownership and operation resting on a sound fundamental basis of regulation and control. (3) Absolute disappearance of the service. In some cases the service has already disappeared and the rails have been taken up, but it is unthinkable that in the larger communities this alternative is possible except perhaps in part. Therefore the real issue comes between municipal ownership and private ownership. From the purely selfish standpoint of investors I have no doubt a great sigh of relief would go up if municipalities should purchase the electric railways at a fair valuation. But the experience of governmental operation of those utilities, the operations of which are of more or less a complex character, has not been reassuring, and I believe a great majority of the people of the country believe in private ownership and operation under proper regulations and control. At the conclusion of General Tripp's address, Mr. Elmquist asked how long the railways would require to present their evidence. Mr. Warren replied that it would take about ten days. Chairman Elmquist then announced that the commission would sit daily from 10 a.m. to 1 p.m. and from 2 p.m. to 5 p.m., but that it would not sit on Saturdays, unless a special announce- ment was made to that effect. Mr. Welch Presents Statistics The greater part of the sessions on Tuesday was de- voted to the presentation of statistics of the electric railway industry by J. W. Welsh, statistician. A num- ber of the charts presented by Mr. Welsh will be repro- duced in the next issue of this paper. W. J. Clark Testifies on Early Conditions During the latter part of Tuesday afternoon W. J. Clark, of the General Electric Company, took the stand and described some of the early electric railway condi- tions. He said that in the latter part of the decade be- tween 1880 and 1890 he became interested in a small street railway company at Derby, Conn. This road was equipped by him and his associates with the Van Depoele electric system. It was expected that the cars, motors, generators, etc., then provided would be good for serv- ice for 20 years or more. Instead, before 1896, the company had changed its car bodies three times and its motors five times and had built its third power station. This rapid obsolescence had caused large development expenses. Much of the so-called "water" in electric railway capitalization, in his opinion, represents actual cash investments of this kind. Mr. Clark believed that electric railways would survive if relief was afforded to them and that much of the traffic now lost to auto- mobiles would come back again. He said that one rea- son why the Thomson-Houston Electric Company had acquired the Van Depoele electric railway patents in 1888 was that its leading officials had come to the con- clusion at that time that the field for electric lighting apparatus was about saturated because most of the cities in New England had then purchased arc light- ing outfits. In the same way, many manufacturers of electric railway apparatus had thought in 1896 that but little remained to be done because most of the roads at that time had purchased equipment. He cited prices to show that the early electric railway equipment, al- though inefficient, was costly, yet the lines thus equipped had been a great benefit to the communities served and had been the nuclii from which large systems had sprung. General Tripp Discusses Finances Testimony relative to the financial condition of the electric railway industry offered by General Tripp oc- cupied the bulk of the time in the Wednesday proceed- ings. Asked to define the tendency in the electric rail- way world today, General Tripp said: "It is more than a tendency; it is a rapid progress toward bankruptcy." He gave as the main cause for this condition the decreased purchasing power of the dollar and said that the railway companies were unable to meet this depre- ciation because of the taxes fixed by franchise regula- tions and the ideas of the general public relative to a fixed standard fare. To show that overcapitalization, or "watered stock," was not the cause, he cited the case of the New York Railways, now in the hands of a receiver. The system when consolidated in 1911 was capitalized at less than its appraisal value and at that time was considered as established on an absolutely safe basis. In connection with this illustration General Tripp remarked. "We have all been living in a fool's paradise." He further said that a business which cannot increase its revenues under any conditions is not on a sound basis and that street railway credit can not be restored as long as the present relations exist between the companies and the communities they serve. As a general proposition General Trip approved the action of the National War Labor Board in raising wages since the wage earner had little or no margin to sustain himself with under depreciated currency con- ditions. In answer to a question from the commission he said that as he saw it no relief could be expected from lowered wages. The financial problem would have to be solved by the public and the railways. There Must Be a New Order of Things Questioned by the commission as to possible solutions General Tripp said that a new scheme of relationship must be devised and that the solution, whatever it is, must eliminate the fixed income problem which the rail- ways now face. This led to an extended discussion of the service-at-cost method of operation. General Tripp told the commission that it was his personal opinion that the easiest and fairest way of reaching a basis for calculating earnings was by studying the security issues of a company, determining from the history of these issues just what sum of money entered into the investment cost. He said that he felt that investment cost thus arrived at was more easily understood than a cost based on physical value, reproduction cost or other method involving the use of many technical and little understood terms. Other questions by the com- mission brought up the matters of paving costs, general taxes, effect of raising fares and the jitney. Relative to a reduction of taxes General Tripp said that this would help but would not solve the problem as long as the present inelasticity of income prevails. In answer to a question, General Tripp told the commission that he felt that the investigation should be directed toward a study of the fundamental difficulties common to all companies rather than the difficulties of individual com- pany and that local illustrations of conditions might be used only where they pointed a general moral. He also expressed belief that a strong recommendation by the commission in the way of fundamental methods would do much towards assisting in the solution of the problem. July 19, 1919 Electric Railway Journal 127 Utility Securities Are Not Salable, Says Invest- ment Banker Following General Tripp, H. L. Stuart, president of Halsey, Stuart & Company, investment bankers, Chicago, took the stand. Mr. Stuart said that in the past his company had done a large business in elec- tric railway securities and that these securities had been sold to insurance companies, banks, trustees and individual investors. He said that for some time street railway bonds had been regarded with distrust by investors and that during the last two years their sale had been practically impossible. Street railway stock had ceased to be regarded as a safe investment some years previous to this. He said that the forma- tion of public utility commissions in a number of states several years ago for a time had increased utility se- curity sales, as it was thought the action of these com- missions would be to increase the safety of utiHty securities. In answer to a question by the commission Mr. Stuart said that very large amounts of utility securi- ties are held by the ultimate investor. He cited the case of the Kansas City Railways' small bond issues stating that thousands of $100 bonds had been sold. It is Mr. Stuart's opinion that some form of cost-of-serv- ice plan is best and that the indeterminate permit is much better than the fixed period franchise. Like General Tripp, Mr. Stuart thinks that the solution lies between the railways and the public. From the invest- ment banker's standpoint Mr. Stuart said that he felt that the commission is the court of last resort. Mr. Hurley's Letter After the completion of Mr. Stuart's testimony, Bent- ley W. Warren, council for the American Electric Rail- way Association, read into the records a letter from Edward N. Hurley, chairman of the United States Shipping Board. Mr. Hurley pointed out that the rapid development of this country had been due in large part to the construction of transportation facili- ties and that adequate and efficient electric railway facilities are just as essential to the proper develop- ment welfare and prosperity of our cities as the trans- continental trunk lines are to the country at large. He said that the railways should be freely accorded the right to establish such rates as are necessary to meet operating costs and yield a reasonable return on the capital invested. In referring to the need for urban transportation he said : With the whole world endeavoring to improve its trans- portation services both on land and sea and spending mil- lions of dollars experimenting on transportation in the air, it is most important to the future prosperity and comfort of our people that the street railways be placed in a position where first-class service will be given the public at a just cost under the supervision of broad-minded, sound commis- sions. If state and national governments are to determine what is a fair street railway wage scale, then they should also assume the responsibility of determining and establish- ing what is an adequate street railway fare, and they should Vi^illingly, when the facts are presented, meet the new con- ditions by authorizing street railway companies to increase their fares. It is clear that every electric railway company should be freely accorded the right to establish such rates as are necessary to meet operating costs, including maintenance and depreciation and a reasonable return on the capital in- vested. If they are to be denied this right, it is perfectly clear that no additional capital can be safely invested in electric railway securities, that our electric railways will be unable to meet their obligations to the public and their security holders. As soon as the American public and the street railway corporations of this country are brought to a settled under- standing of what constitutes fairness in their mutual rela- tions, your problem will be solved. Capital already legiti- mately invested in public service will be safeguarded, the credit of our legitimate electric railway companies will be restored, new capital will be available to them as required for the development and expansion of their facilities to meet the requirements of the public, and the public will enjoy efficient, safe service. In conclusion Mr. Hurley said: "The true value of an electric railway property is the legitimate cost in- curred in establishing and developing its business and any method of valuation which disregards this prin- ciple is not fair." Service Has Been Impaired That service has been impaired was the testimony of Henry G. Bradlee, of the Stone & Webster Corpora- tion. Mr. Bradlee exhibited several charts showing the amount of capital required by several different types of industry and pointed out that the electric railways had been "living off their fat" as it were, for very little maintenance work has been done and few extensions have been built during the last few years. He stated that the street railway companies now need between $600,000,000 and $700,000,000 each year for new exten- sions and improvements. In addition to this, they need between $300,000,000 and $350,000,000 annually for re- funding outstanding securities, thus bringing the total financial needs to something like $1,000,000,000 a year. The question of new capital, to Mr. Bradlee's mind, was the crux of the whole railway situation. He pointed out there were only two ways to get this money, either through municipal ownership or through the estab- lishment of some plan so that the private investor will feel reasonably safe in buying railway securities. As illustrative of the increase in costs during recent years Mr. Bradlee presented the following interesting data pertaining to three of the Stone & Webster prop- erties : TABLE SHOWING PERCENT INCREASE OF EXPENDITURES 1919 OVER 1913 Houston Northern Texas El Paso Electric Traction Electric Item Company Company Railway Maintenance of Way and Structures 76 63.0 47 Maintenance of Equipment 58 83.5 61 ' Conducting Transportation 50 57.5 90 Miscellaneous 32 7.4 27 Total cost of operation 48.4 45.0 65.3 The figures are for the years ended April 30, 1919, and April, 1913. The 1913 cost figures were arrived at by taking the 1919 items and multiplying them by the unit costs prevailing in 1913. The high cost of conducting transportation increase for the last property as compared with the others is due to the fact that fuel for the first two is still being purchased on a pre-war contract while for the last property current fuel prices are being paid. When asked relative to the distribution of their se- curities, Mr. Bradlee stated that they were very widely held. He said the Stone & Webster properties were all operating under the old fashioned form of franchise. He stated that the fixed-period franchise is objection- able because the difficulty of securing new capital in- creases as the expiration time of the franchise ap- proaches. When questioned by the commission as to the trend in the power situation, Mr. Bradlee said that it would be more economical to have fewer and larger 128 Electric Railway Journal Vol. 54, No. 3 plants than we now have. Just how far this can be carried is a matter difficult of determination, however. The commission also asked Mr. Bradlee relative to the possibilities of the Ford gasoline car and the motor bus. Speaking of the first, Mr. Bradlee said that Mr. Ford as yet "had an idea, not a car," and with regard to the motor bus said that his company is operating motor buses in a number of places as feeders to their railway lines. He believes that in general the cost of transportation is greater with the buses than over the rails and sees no chance for them except in special cases where they run through sparsely settled com- munities. Program of Future Hearings Announced Announcement was made at the close of Thursday's hearing by Chairman Elmquist that upon the com- pletion of the railway testimony adjournment would be taken until Aug. 4. On that date Secretary Baker and a group of economists will begin testifying. On the completion of their testimony, another adjournment will be taken until Aug. 11 when the mayors of vari- ous large cities, including New York, San Francisco, Boston, Buff'alo, New Orleans, Seattle, Detroit, Chicago, Cleveland and others, will begin testifying. Members of various commissions also will be heard with this group. Dean Cooley and Others Testify On Thursday With the resumption of hearings on Thursday morn- ing W. J. Clark, of the General Electric Company, was again called to the stand to testify relative to the early history of electric railways. Counsel brought out the point that early experimental work was done at the expense of the electric railways and constitutes a part of the just investment. Mr. Clark compared American and foreign electric railways and discussed the causes of public prejudice at request of the commission. The commission at this point took a recess to permit a photo- graph of the commission being taken. After the recess Dean Mortimer E. Cooley, of the University of Michigan, was called to testify as to the elements entering street railway costs. The balance of the forenoon and a considerable part of the after- noon session were occupied by Dean Cooley, who was questioned at great length by the commission on depre- ciation, obsolescence and maintenance costs, and what should be done to improve the electric railway situa- tion. Dean Cooley said that it would take a generation to educate the public properly, which belief is needed now. He considered higher fares a palliative only. Every public utility needs a surplus fund, a surge tank, to take care of fluctuations. In regard to municipal owner- ship. Dean Cooley said he did not believe it would be a success but would be the best way of educating the public. "Municipal ownership is beautiful as an ideal but worthless as a practical thing," said he. In answer to a question from one of the commission as to what should then be done, Dean Cooley said: "I recommend that street railways have the right to charge fares that would permit them to meet their operating expenses, keep up their service, and maintain their properties intact." He indicated that the present fares should be at least 50 per cent higher, and sug- gested the removal of some of the taxes now borne by street railways and exemption from the obligation to maintain the paving between the car tracks. At the conclusion of Dean Cooley's testimony, Counsel Warren read into the record a statement from A. Mer- ritt Taylor, president Philadelphia & Westchester Trac- tion Company and formerly manager, division of ?iousing and transportation. United States Shipping Board. This statement will be found below. W. D. George, one of the receivers of the Pittsburgh Railways, was then called to testify as to the effect of zone fares and the effect of increased fares in Pitts- burgh. . As a real estate man by profession rather than a railway man, Mr. George was questioned by the commission at great length relative to the matter of public sentiment and interest in the electric industry as against the methods dictated by clear-cut business methods. Mr. George expressed himself as being op- posed to zone fares on the ground that they are inimical to the best development of a community. Further particulars of the sessions on Thursday and an account of the following sessions up to the press date of the issue of July 26 will be published in that issue. The Valuation of Electric Railway Properties* By a. Merritt Taylor Philadelphia, Pa. AN ELECTRIC railway company engaged in a legitimate constructive enterprise is entitled to charge rates for service which will yield a profitable return on the true cost of establishing and developing its property and business. Anything short of this means confiscation of money invested in public service. In order that exact justice shall be accorded all parties at interest, an electric railway property must be valued at the true legitimate cost of its establishment and development up to the date when the valuation is made. If, in the early stages of development, the net results of operation produce a return which is short of the amount required duly to compensate the owners of capital invested in the property for its use during such period, and to provide for normal depreciation and obsolescence, such shortage plus accrued interest on accumulated portion of just return withheld from in- vestors must necessarily be considered to be a part of the cost of the development of the property and its business, and be included as an element of value. If an electric railway property be valued (as is pro- posed by impractical theorists) at its cost less deprecia- tion and obsolescence, or at what would be the cost of reproducing it less depreciation and obsolescence in instances where the net revenue has been insufficient to yield a return on the capital invested therein duly compensatory for the service performed and the risks assumed, and or where the net revenue has been in- sufficient to provide for depreciation and obsolescence in addition to yielding a just return upon the capital, such valuation is unjustifiable and rates based thereon are confiscatory. An electric railway enterprise is entitled to charge such rates as are required to protect the capital legitimately invested therein and to yield to the owners of such capital a cumulative return which will ade- quately compensate them for its use, for the risks assumed and the service performed, and which are required properly to meet cumulative depreciation and * statement filed with Federal Electric Railways Commission and read at Washington, July 17, 1919. July 19, 1919 Electric Railway Journal 129 obsolescence, to invite corporate initiative and to' main- tain the credit and ability of the enterprise to procure such additional capital as is required from time to time for the purpose of expanding its facilities for public service. Capital will not be available for electric railway re- quirements in states and municipalities where there be question as to whether electric railway companies will be prevented by regulatory authorities from establish- ing rates required to yield an inviting cumulative re- turn on the capital invested therein. This fact must be recognized and steps must be promptly taken to remove the grounds for reasonable doubt in the prem- ises. Nothing short of a clear and common under- standing of how valuations of electric railway properties m.ade for rate-making purposes shall be arrived at, and of what elements must be regarded in the fixation of rates, will enable the electric railway enterprises to raise the capital which is required to meet their obliga- tions and expand their facilities as required for public service. There is a serious and inherent risk which confronts every investor who invests in electric railway con- structive enterprises, namely, the risk that such enter- prise will not yield a just return on the capital invested therein at any rate which its customers would be willing to pay for the service. In such instances where the rates are so high as to invoke the law of diminishing return, the management of the enterprise will neces- sarily have to decrease rates to such a basis as will yield the maximum net return, and the investor, in the absence of public assistance, will necessarily have to accept a lesser return on his capital unless through development of business the shortage can be made up and paid in later years. How Shall Maximum Net Return on Investment Be Secured? Many electric railway companies which are rendering essential service are now confronted with the fact that there is no rate of fare which will enable them to continue eificient operation of their properties and which will yield to them a return sufficient to meet the new level of operating and renewal costs resultant from the war, onerous conditions and charges imposed upon them by municipal, state and government authority, and to pay a just return on the capital invested in their prop- erties. In such instances the credit of the electric railway company is impaired; it can raise no money with which to provide the additional facilities which are required from time to time for the service of the public in a growing community, and the public must augment its net revenue in one way or another to an extent sufficient to enable it to maintain its credit and meet its just obligations, or, be deprived of essential service. There are many electric railways which will be com- pletely abandoned with the resultant incalculable loss to the communities which they serve unless their credit be promptly restored and maintained through public co-operation. It is quite possible that the city of Canton, China, may have greatly improved transportation facilities in the near future. The city wall is in process of being torn down and a corporation with a liberal capital has been proposed to develop an electric tramway on the improved streets which will be built after the removal of the wall. Denver Situation Clearing City to Re-Grant Temporary Six-Cent Fare — Strike Ended — Service-at-Cost Plan Likely to Be Basis of Settlement DENVER'S transportation troubles which came to a climax on July 8, as was noted in last week's issue of this paper, when 1200 employees of the Denver Tramway Company went out on strike after the an- nouncement of a wage reduction, have been temporarily settled after an interruption of service lasting nearly four days. Within that period the Mayor and City Council of Denver agreed to re-enact the 6-cent fare ordinance which they had repealed the week before, the notion of jitney buses as a means of transportation was buried beneath overwhelming popular disapproval, and arrangements were made between city and company for a permanent settlement of the street railway situa- tion on the basis of "service-at-cost." The employees presented demands during the walk-out for a closed shop, a 60, 6i and 70-cent scale for trainmen, and pro- portionate increases for all other unionized employees in the company. They went back to work at the 43, 46 and 48-cent scale, waiving the closed shop demand and leaving increased wages to settlement by arbitra- tion within the next six months. Approximately 625 jitneys were in operation the sec- ond day of the strike. The congestion caused on down- town streets, the terrific increase in accidents, the lack of schedules and failure of the jits to operate to the outlying districts of the city, coupled with the fact that scores of drivers disregarded the 5-cent limit and charged from 10 cents to $1.50, disgusted the public with jitney buses long before the strike was ended. The "jit" is dead in Denver; whoever tries to resurrect it will meet with violent opposition from the people who ride. The loss to the merchants of the city has not been estimated, but a thorough canvass of the retail houses discloses that 50 per cent is a conservative estimate of the loss of business during the strike. One department store lost $10,000 a day; a retail shoe store lost $800 a day and the downtown grocery and meat and drug stores had practically no business at all. The legiti- mate and vaudeville theaters suffered only a slight loss in their business, apparently because they drew all the tourist trade from hotels, but movies reported almost a total loss of business, especially in the afternoons. The working people of the city lost as high as one-fourth day's wages because of their inability to get to work on time. The advertisement of the strike outside the city un- questionably did tremendous damage to Denver's tourist business ; the full effect has not yet been felt. There was no violence whatever during the strike owing to its peculiar nature, otherwise the loss to busi- ness men and workers would undoubtedly have been much greater. The most unusual feature of the strike was the fact that the sympathies of the company were with the men, the management acknowledging that the men could not meet 1919 living expenses with 1917 wages. Advertise- ments for men to replace the strikers were placed in the newspapers, but only the reduced wage scale was offered and no professional strike-breakers were im- ported. Daily attempts were made to operate cars by company officials, who were good-naturedly but prompt- 130 Electric Railway Journal '• Vol. 54, No. 3 ly pulled off the cars by the strikers. The mayor charged that the company and the strikers were in col- lusion because of this aspect of the strike, apparently not realizing that the importation of strike-breakers by the company would have led to an outbreak of the Winnipeg and Seattle sort. In spite of the patent failure of the jitneys to meet the situation, the mayor issued a statement during the second day of the strike in which he declared that the tramway had been proven no longer necessary as a transportation system for Denver, and that the jitneys would supply all needs. He stated that it was "a great victory for the people" and declared the city would immediately spend $3,000,000 in equipping jitney bus lines as a permanent substitute for the street railway. Twenty-four hours after this statement was pub- lished, the mayor and the city council had agreed to revoke every jitney bus license, kill the jitney bill then before the council," re-enact the 6-cent fare ordinance for a period of 90 days, and before the end of that period to put before the people for their approval a service-at-cost plan based upon the recommendations of the Tramway Adjustment Committee of fifty-five, appointed by former Mayor W. F. R. Mills. Service Quickly Restored With this agreement between city and company com- pleted, General Manager F. W. Hild went into a series of conferences with the union officials. The union men finally agreed to go back to work at the old wage scale of 43, 46 and 48 cents and submit the demand for a 22-cent increase to arbitration. This submission will be made at some indeterminate date in the future, the men allowing a maximum of six months' time so that the company and city can secure a permanent solution of the transportation problem in the meantime. Cars reappeared on the streets of Denver in time for the evening rush hour Friday, July 11, and were the signal for a mild repetition of the jubilant scenes on the downtown streets when the world war ended. This was the first street car strike in the history of Denver. Strikes have been threatened several times in the last two years, but in each instance General Man- ager Hild has succeeded in averting them. On this oc- casion both the company and the men went on a strike. The 5-cent fare will be in effect during the time required to pass the 6-cent fare ordinance. July 12 the tramway put out petitions for an initiated 6-cent fare ordinance, and the required signatures of 4500 qualified electors were secured in about the time that would be necessary for that number of citizens to write their names. Final passage of the ordinance will probably be made by the City Council on July 28. The 6-cent fare will be effective for 90 days, or until the passage by the people of the permanent solution. Conferences looking toward the drafting of a "serv- ice-at-cost" ordinance began this week. Tramway em- ployees, as well as city and company's officials, will probably be represented at these meetings. The work should be completed within thirty days, inasmuch as the special election must be called sixty days before it is held. The city will bear the expense of the election. Service-at-Cost Plan Resurrected The foundation material upon which the various parties interested will build the permanent arrange- ments between city and tramway is the report of the committee of fifty-five citizens already mentioned and appointed by a number of civic, labor, commercial and improvement associations last January at the request of a former mayor. This committee took an active part in the 'settlement of the strike. Its report, which was filed with the city just before the present mayor took office and subsequently pigeonholed, embodies the conclusions reached after a thorough investigation of the transportation problem in Denver and other cities. The report, after pointing out that the committee's investigation of the tramway finances leaves no doubt as to the necessity of relief, goes on to say that all manner of suggested solutions were analyzed and dis- cussed, including the zone system, flat increases in fares, a proposal that the city be required by general tax levy to make up the deficit required for the efficient operation of the system as it would have to do if the city owned the lines, municipal ownership, the service- at-cost plan, and removal of extraordinary tax bur- dens and creation of new sources of revenue. In gen- eral, the service-at-cost plan is favored for the follow- ing reasons: The service-at-cost plan provides that the car riders of the city shall pay only the actual expenses incurred in operating and maintaining the system. It provides that the municipality, not the company, shall control the service given the public, the extensions that shall be made and the additions to service. It virtually takes control of the street railway system out of the hands of the board of directors of the company and places it in the hands of the municipality. It establishes a fair value of the property. It allows the company to earn no more than a fair return on only that value, no matter how many stocks and bonds may have been issued against the property. It provides an automatic decrease or increase in fares according to the cost of operating the system. It provides for non-political, expert management of the technical operation of the system. It encourages those in charge of operation to consider economy in purchase and efficiency in use; in some cities bonuses are allowed in this connection to stimulate extra effort. It provides for a depreciation fund sufficient to guarantee the replacement of old tracks, old cars and worn out equip- ment and buildings with new, modern facilities, that will render better service to the public, and places the disposi- tion of the money for such improvements in the hands of the municipality. It provides for the purchase of the property by the city at a fair valuation at any time the public may decide to substitute municipal ownership for municipal control and supervision. The service-at-cost plan gives the city all the advantages that might come from municipal ownership; yet does not burden the taxpayers with investment of the city's money in the property at this time, and in the committee's opinion coincidentally avoids nearly all other disadvantages of mu- nicipal ownership. The committee defined "cost-of-service" as including: 1. Cost of wages and compensation to employees. 2. Cost of materials used in the operation of the system. 3. Cost of depreciation and renewals of the property as it wears out. 4. Cost of taxes. 5. Cost of money invested in the property (reasonable re- turn upon the stipulated fair value of the system). 6. Cost of such incidental expenditures as are authorized under the rulings and uniform system of accounting of the Interstate Commerce Commission of the United States. The Board of Control constitutes one of the most important features of the committee's plan, and in the eyes of tramway officials is such a radical departure from present methods that it cannot be considered favorably by the ovraers of the property. The wide powers of this board include control of the quality and quantity of service, of capital expenditures, of the scale of fares, of the depreciation and renewal funds, etc July 19, 1919 Electric Railway Journal 131 The board consists of three members, two appointed by the mayor of the city and one by the company. As a basis for its plan, the committee adopted the evaluation of the property made by the Public Utilities Commission the previous year, v^^hich for both city and interurban lines vi^as $23,674,100 as compared with the company's valuation of $26,772,888. The committee allowed, upon the recommendation of Professor Ketch- um, L. R. Nash of Boston, and Charlton Ogburn of the National War Labor Board, a depreciation and renewal fund of $500,000 per annum, which is the amount authorized by the public utilities commission. On the rate of return the report recommends 7 per cent with a bonus when the fare is 6 cents or less. A sliding scale of fares is provided, with a fare control fund varying between the limits of $500,000 and $100,- 000 which acts to determine the time of changing from one fare schedule to another. Comments of Manager Hild General Manager Hild of the tramway considers the committee's service-at-cost plan a classic in its field, even though all its provisions do not meet with his un- qualified approval. He says: "From the standpoint of the tramway company there are three main objec- tions to the plan as recommended by the Committee of Fifty-five. "First, the valuation is too low. We still feel that we were in a better position to judge the valuation than anyone else and we believe that the valuation of the committee misses the mark by about $4,000,000. "Second, the rate of return allowed in the plan, we feel, is rather low for attracting capital into the enter- prise. "In the third place, the board of control feature can- not possibly be acceptable to the men who have money invested in the company. It is proposed that the power of administration be given to men whose appointments come from outside the company altogether. It is not natural for the tramway investors to be satisfied with having someone who is not connected with the enter- prise tell them what must be done. "There are many admirable features to the plan, however. I believe that under the service-at-cost plan the company would be able to start out with a 6-cent fare and very soon bring it down to 5^ cents at most." Status of Daylight Saving President Wilson has personally come to the support of the advocates of retaining the daylight-saving legis- lation. He has vetoed the agricultural appropriation bill containing the repeal of this legislation, making public a statement in which he says that he foresees a great economic loss from such repeal. Following the action of the President, which was taken in Wash- ington on July 12, the House of Representatives on July 14 refused by a vote of 247 to 135 to pass the agricultural appropriation bill over his veto. This refusal by the House resulted in taking from the Senate the opportunity to attempt to repass the bill. Notwith- standing the President's veto of the legislation and the refusal of the House of Representatives to pass it over his veto, conferences are being held in Washington be- tween members of the House and the Senate in an at- tempt to pass the legislation by force, under a proposed new ruling, as new legislation or by indefinitely hold- ing up the agricultural appropriation bill. Some Observations and Queries on Safety Car Operation* By F. J. MooEE Superintendent Ohio Electric Railway, Spring-field, Ohio WHILE all electric railway men will not agree that one-man car operation is the panacea for our ills, all will agree that revenues must be increased without a corresponding increase in expenses if we expect to continue business. City fares have generally, although not universally, been increased with a view to meeting the increased cost of operation in this way. I have in mind a city of 60,000 population where the fare was increased, first from the rate of six tickets for a quarter to a straight five-cent fare, then to a six-cent fare. The first increase produced a considerable increase in reve- nue, but the effect of the second was not so good. In other cities, where the fares were increased without an improvement in service by a reduction in headway, the result has been unsatisfactory. This has been due to the loss of short-haul business to a large extent. It is at this point that the one-man car is of service in fur- nishing the opportunity for shortening headways, thus appealing to municipal authorities and the public, and developing the riding habit. The combination of a higher fare and increased riding gives a better pros- pect that the electric railway will be able to stay in business. To illustrate the possibilities with one-man car oper- ation, I shall cite a city of 15,000 population where seven-minute service is given at an average speed of 12 m.p.h. The rolling stock consists of single-truck cars weighing from 6 to 8 tons. Some of the cars are of the rebuilt type with small platforms. There is one grade of 7i per cent about 600 ft. long on the line, and in the last eight years there have been no accidents due to cars getting away. In this city the cash fare is 5 cents, but thirty- three composition disks, good for one ride each, are sold for $1. No transfers are issued, but passengers are transferred from car to car at the transfer points. Approximately 2,000,000 passengers are handled per year. Service is given from 5:30 a.m. to 10:30 p.m. with an owl car on each line until 1 a.m., the fare for owl service being 10 cents. Conductors do not sell tickets, v/hich are sold at local stores at the rate of three for 10 cents. This line is operating at a very satisfactory operating ratio, and there is a noticeable tendency to short riding. I observed that many pas- sengers did not ride more than three or four blocks. The importance of reducing headway is seen when the growth of the use of the automobile is considered. In Ohio, in 1913, 165,000 automobile licenses were issued; in 1917 the num.ber was 346,262, and in 1919, up to the present time, 500,160 licenses have been issued. At the same time on checking up a number of city car schedules for properties serving populations from 25,- 000 to 100,000, I find that the same headway is in use in 1919 as in 1913. In conclusion I wish to list a number of questions which are of interest in studying the one-man car situation in any locality, as follows: (1) What was the determining factor that led to the adoption of the one- m.an car? (2) If an advertising campaign was con- *Abstract of contribution to discussion of Sam W Greeland's C. E. R. A. paper on safety-car operation. See issue of thi^ paper for July 12. * 132 Electric Railway Journal Vol. 54, No. 3 ducted, how long before the inauguration of service was it begun? (3) What criticisms have come from tha public and the local council after operation has com- menced? (4) Were any changes in schedule made on one-man car lines? C5) What provisions were made for railroad crossings? (6) How do the safety-cars handle rush-hour traffic? (7) Were any changes made in re- port slips or accounting methods from earlier practice to relieve operators of unnecessary duties? (8) Has it been found possible to adopt a zone system of fare collection on these cars? (9) How and when are trans- fers issued? (10) How have the Birney cars stood up under operation? Will this type of car be long- lived? What are the maintenance costs on these cars? (11) Is it desirable to use two trolley poles on the car so that the operator can change ends without leaving the car at terminals? American Association News Last Week's Committee Meetings The week ending July 12 was a busy one at the Amer- ican Association headquarters in New York City. The "doings" of the committees are summarized below. The committee on code of traffic principles of the Transportation & Traffic Association met on July 7 and put its report into final shape for presentation to the executive committee which met later in the week. H. B. Flowers, chairman, and A. Gaboury were in at- tendance. The committee on joint use of tracks and terminal facilities, of the same association, met on July 8, for the same purpose. Those present were: Frank Wert, rep- resenting chairman R. T. Sullivan; H. W. Clapp, mem- ber, and W. H. Collins, sponsor. The exhibit committee of the American Association met on July 8 and passed upon a number of applica- tions for space and considered other details of its work. The executive committee of the T. & T. Association met on July 9 for the purpose of finally passing upon the several committee reports which were presented by the chairmen of the several committees. Each re- port was considered in detail and a number of sugges- tions were incorporated. A tentative list of names of men to be invited to lead discussion of the various reports was also presented and approved. Those in at- tendance were: L. C. Bradley, president; W. H. Col- lins, first vice-president; L. H. Palmer, third vice- president ; E. B. Burritt, secretary ; W. J. Harvie, chair- man of committee on collection and registration of fares; H. B. Flowers, chairman of committee on code of traffic principles; Frank Wert, representing R. T. Sullivan, chairman of committee on joint use of tracks and terminal facilities, and H. W. Clapp member of the last-named committee. The arrangement of the formal program of the con- vention was discussed and the following tentative ar- rangements were agreed upon as covering the reports and discussion of each subject: Oct. 6, code of traffic principles; Oct. 7, one-man car operation; Oct. 8, col- lection and registration of fares; Oct. 9, joint use of tracks and terminal facilities and election of officers. The committee adjourned to meet again at the call of the chairman. The committee on zone systems, met on July 15 and went over the reports submitted by the sub-committee. A tentative form of final report was agreed upon in- cluding a terminology for several different types of zone systems. Those present were W. H. Sawyer, Col- umbus, Ohio, chairman; Thomas Conway, Jr., Phila- delphia, Pa.; R. M. Feustel, Fort Wayne, Ind.; James F. Hamilton, Rochester, N. Y.; Walter Jackson, New York City; L. H. Palmer, Baltimore, Md.; A. S. Richey, Worcester, Mass.; R. P. Stevens, Youngstown, Ohio, and C. L. S. Tingley, Philadelphia, Pa. "Meralco" Welcomes New "G. M." The Manila joint company section began its second half hundred meetings on May 6, with 175 members in attendance. The gathering took the form of a welcome to the new general manager of the Manila Electric Railroad & Light Company, R. W. Spofford, and no papers were presented. Mr. Spofford expressed great interest in the prosperity of the sec- tion and told of the excellent reputation which it holds in the United States. Dr. H. D. Kneedler, company surgeon, also received an ovation in recognition of his vvar-time service in Siberia. J. C. Rockwell, vice-presi- dent of the company, introduced as "grand-daddy," ex- tended a welcome on behalf of the company to the new manager, reinforcing the opening address of the presi- dent of the section, C. H. Van Hoven. Letter to the Editors Traffic Checks of Non-Riders Board of Public Utility Commissioners Newark, N. J., July 16, 1919. To THE Editors: I was much interested in reading the editorial in the issue of July 12 on the subject of taking traffic checks of non-riders. The writer has carried out this idea in connection with several traffic surveys which have been made under his direction, and it has been surprising to find, in many instances, the number of people that are walking simply because they are not provided with service or, if service is available, it is so circuitous that they pre- fer walking over a more direct route. This applies particularly, but by no means exclusively, to manufac- turing communities where large numbers of workers have frequently been found to be walking long dis- tances to and from their places of employment, doubt- less not for the purpose of saving the fare but rather in order to save time. Many companies appear to over- look the fact that the average traveler wishes primarily to reach his or her destination as quickly as possible and is willing to pay a reasonable fare for such trans- portation rather than walk. It is not difficult to determine, or at least closely esti- mate, the number of walkers, the general territory where their journey originates and their approximate destination. Familiarity with the territory under con- sideration and the intelligent placing of observers for a few days will soon tell the story. More attention to this matter on the part of operat- ing officials will undoubtedly result to the mutual advantage of both the community being served and the^ utility furnishing the service. H. C. Eddy, Traffic Engineer. News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION PERSONAL MENTION A Great Fuss Over Nothing High-Handed Tactics of Union Official Deprive Akron of Railway Service for Day One result of Akron's shortest and most inexcusable electric railw^ay "v/alk-out" has been the suspension from office of George Trahern, the president of the local union, who or- dered the walk-out at 5 a.m. on July 12, without public warning. A second result is that the employees, who walked out without even knowing what it was all about, have prepared an apology to the public of Akron for dis- rupting railway service in Akron. No Intimation op Trouble ■ A. C. Blinn, manager of the Northern Ohio Traction & Light Company, was informed at 5:30 a.m. on July 12 that the men would not take out the cars. No previous intimation had been given of any difficulty. No conferences had been held. No strike vote had been taken. No consultation had been held with the Amalgamated Association of- ficers. And most important of all no warning had been issued to the public. Mr. Blinn got in touch promptly with the president of the local union, George Trahern. That gentleman re- fused to discuss matters over the tele- phone. Mr. Blinn in a statement later declared that when he spoke in behalf of the public's right to service the local agent replied: "What do you care about the public? They voted down your 6-cent fare. The public can go to hell for all of me." Mr. Blinn then telephoned W. D. Mahon, president of the Amalgamated, at Detroit. He in turn wired the sec- retary of the local divison to put the men back to work by 4 p.m. or "the laws of the association will be strictly enforced." This, of course, meant a suspension of the local charter. Mayor Myers and President Gilletly of the Central Labor Union, who held that Mr. Trahern's order was unwar- ranted, set things in motion for im- mediate arbitration, but President Mahon's telegram settled matters tem- porarily. 40,000 Workers Walk The 40,000 or so workers in Akron's great rubber plants either walked to work or rode in trucks. It turned out eventually that a mid- night meeting for the purpose of elect- ing delegates to a convention in Chi- cago had not finished business and Mr. Trahern decided to hold another meet- ing at 10 a.m., the men meantime to take "a day off." Later in the day Tra- hern added that the company was not furnishing the men with suitable city directories, and decided to take this and one or two other minor grievances up at this meeting. Mr. Blinn in a public statement de- clared that the men's action was con- trary to the spirit of their contract with the company and that none of the complaints made by Mr. Trahern had any just foundation. He added that regardless of the merits of these minor questions the method taken to settle such complaints was unwarranted and without precedent in his long railroad experience. Wage Arbitration Suggested A committee representing the Nor- folk and Portsmouth divisions of the organized conductors and motormen of the Virginia Railway & Power Com- pany, in a letter to the company on July 7, withdrew their request for recognition of a "closed shop" union, and asked that the company go into conference or arbitrate their demand for increased wages and other ques- tions, treating with them as members of an "open shop" union. In reply to this the company, in a letter signed by T. Norman Jones, assistant manager, declared its willing- ness to confer with the men on the open shop basis, but suggested that a conference or arbitration over the matter of increased wages would be useless until the company were per- mitted to increase its fares. In the event of a 6-cent fare, according to Mr. Jones' letter, the c;mpany will fix a wage scale of from 41 to 45 cents. If arbitration is in sisted on, the com- pany will agree to City Manager Ash- burner as a third arbitrator, as sug- gested by the carm n's committee. New Jersey Agreement Signed The two-year a ,i - -ment between the Public Service Railway, Newark, N. J., and the Amalgamated Association cov- ering wage and working conditions was signed on July 9 by President McCarter of the railway and by the union officers. The agreement establishes a day of nine hours with pay for ten hours. Over- time, under the contract, is to be paid at a rate of time and a half for all time outside the regular day except the time consumed in completing a nine-hour run. Meetings will be held by the nine local unions in the State, at which the revised agreements will be read. The terms of the award of the War Labor Board in the New Jersey case and the conditions of the settlement subsequently agreed to between the company and the men were reviewed in the Electric Railway Journal for July 5, page 37. Mayor Signs Dispossess Toledo Company Preparing to Comply With Measure Ordering It off Streets on Aug. 1 Mayor Cornell Schreiber on July 11 signed an ordinance which, in effect, is an order to the Toledo Railways & Light Company, Toledo, Ohio, to cease operation on July 30. The ordinance had been passed by the City Council about a week before. It was referred to in the Electric Railway Journal for July 12, page 87. Preparing to Dismantle Road For several days the company has been preparing to obey the order. All improvement work has been stopped, and the men engaged on it were dis- charged. Other preparations have been made for dismantling the road. Frank R. Coates, president, is quoted as saying that the ordinance will be obeyed to the letter. Service, he said, will cease at midnight on July 30. Mayor Schreiber issued a call for the support of the people in this crisis and at the same time he promised to provide transportation. Just how he would do this, he did not explain. It is expected, however, that he will re- sort to the use of jitneys. Several times the company has offered the city service at rates and on conditions that were fair, but they were as often refused in an effort to estab- lish a 3-cent service or something equally as low. For several years the road has been operated without a fran- chise. A year or two ago a so-called street railway commission offered a plan for turning the road over to a community company, the city to pay for it partly in cash and the remainder from surplus from operation. Some time ago the company ad- vanced the rate of fare from six tickets for a quarter to straight 5 cents and 1 cent for transfers. This move was attacked in the courts, but the com- pany won its case. The court said the company had a right to fix a rate of fare, but the city might order it to cease the use of the streets. Then, when expenses had mounted high be- cause of the war, the rate was raised to 6 cents with 2 cents for transfers. Disorder Followed Fare Increase Since that time there has been oppo- sition of all kinds. Workmen at one time wrecked several cars and then attempted to operate the others them- selves. Mayor Schreiber has said that a franchise will be prepared and offered to the lowest bidder. 134 Electric Railway Journal Vol. 54, No. 3 Strike Declared on Boston Elevated Trials of Boston Elevated Seem to Have Become More Complicated Than Ever Under Ten-Cent Fare Despite all efforts of the trustees and officers of the company and of the pub- lic authorities to avert a walkout, the members of the carmen's union on the Boston (Mass.) Elevated Railway struck at 4 a.m. on July 17, tying up every surface and rapid transit car on the system. No attempt was made by the company to operate cars. An enor- mous traffic was handled during the day by the steam railroads and by automo- bile. On the afternoon of July 16 Sam- uel L. Powers of the board of trustees reached Chairman Taft by telephone at Point a Pic, Que., and Mr. Taft stated that the War Labor Board would hand down a finding by Aug. 2. Acting Mayor Ford of Boston called a meeting of union employees of the company at Tremont Temple on the evening of July 16, at which an appeal was made to the men to postpone the walkout, but with- out success. About 4500 car men are involved in the strike. W. Jett Lauck, secretary of the War Labor Board, wired the union leaders at Boston to the effect that as the case was submitted to the board on June 19, the time spent in consideration had not been unreasonable. He pointed out that the award would be retroactive, fully protecting the interests of the em- ployees, and declared that under such circumstances a strike would be unwar- ranted and an invasion of the rights of the public. He urged the rescinding of the strike vote pending the decision of the board. Charles G. Wood, of the Massachu- setts State Board of Conciliation and Arbitration, issued an appeal on July 16 to the union officials and membership urging them to abide by their contract and not to abuse the confidence of the public by acts in violation of their agreement. The employees voted, on July 14, to strike at 4 a.m. on July 17 unless in the interim the War Labor Board should hand down a decision in the pending wage arbitration case. Men Want 73* Cents an Hour The men demand a wage of 73 i cents an hour and an eight-hour day. Charlton Ogburn of the War Labor Board wired the union officials at Bos- ton on July 14 that it would be impos- sible to get an award on the Boston Elevated case before July 15 on ac- count of the location of the chairmen, and suggested a settlement between the company and the men as the best solution. The union officials claimed that the War Labor Board has had the case in hand for decision for the past three weeks. The Boston company started a 10- cent fare on its entire system on July 10, with the result that a large amount of traffic has been at least temporarily diverted to the suburban steam rail- road lines in the metropolitan district. The effect of the new fare upon the company's receipts had not been de- termined up to the present writing be- yond a reduction in the total number of passengers carried. It is the intention of the trustees, Mr. Jackson declared, to find out as soon as possible what can be done in the way of applying a zone system to Boston. The company has been called upon to make heavy expenditures in subway rentals and in maintenance and high- way contributions and is seeking legisla- tive action to be relieved of these burdens so that it may devote atten- tion to a zone system. The trustees are firm in their convic- tion that just as soon as the summer is passed, and the present ill feeling begins to subside, the passengers will return to the trolleys, hastened by the advent of any bad weather. The auditor of the road reports that under the first four days of the 10- cent fare, the revenues have made an Employees of the surface and ele- vated lines in Chicago, 111., took action on July 11 looking to an advance of 77 per cent in their wages. Conductors and motormen of the surface lines want the maximum wage raised from 48 cents to 85 cents an hour; motormen of the elevated road from 50 cents to 87 cents; conductors of the elevated lines from 45 cents to 82 cents; all other employees, both systems, 37 cents an hour increase all effective as of June 1. The employees want also an eight- hour day, a six-day week and time and a half for overtime, and insist that 80 per cent of the runs shall be "straight," the balance to be finished in limits of ten hours. The formal demands were presented to the management of both companies on July 12. L. A. Busby, president of the companies, said these increases would add about $14,000,000 a year to the payrolls of the surface lines and that" the only way to meet them would be to raise fares to 9 or 10 cents. The fare is at present 5 cents on the sur- face and 6 cents on the elevated lines. The men were promised an answer in a short time, it being generally under- stood that the solution of the matter lay with the Public Utilities Commission of Illinois, which some months ago refused to advance surface railway fares. The meeting where the demands were fonnulated was a joint session of the surface and elevated employees. average increase of more than 56 per cent over the same four days of last year. Statistics of Gain On July 10, there was a gain of 52.3 per cent over the corresponding day of last year; on July 11 a gain of 60.4 per cent; on July 12 a gain of 46.7 per cent, and on July 13 a gain of no less than 71 per cent. The revenue for the first day of 10-cent fares, July 10, was $77,645 against $50,982 for the corresponding day of a year ago; for July 11 $80,447, against $50,168 a year ago; for July 12, $84,200, against $57,149 a year ago, and for July 13 $55,000, against $32,166. Total passenger earnings for the first 190 days of the year, or up to July 11, were $14,178,971, against $9,- 830,056 for the same period last year. For the first eleven days of the month, passenger earnings were $761,- 394, against $551,210, or a gain of 38.1 per cent. However, the trustees are unwilling to draw any conclusions until after a thirty-day period has passed under the 10-cent fare, for there is much variable- ness, and always has been, in revenue. All the steam roads are reporting large increases in suburban patronage. The president of the union was quoted as saying: We don't care where the money comes from and are not interested in what the companies charge for fares. AU we want is our new wages and we are going to get them. We are going to give the com- panies only a short time. The Chicago Surface Lines union has more than 10,000 members and the elevated organization about 4000. The men still have contracts with the companies which do not expire until June 1, 1920. The wage terms were changed by the War Labor Board last August to continue for the period of the war. This award raised the pay- roll of the surface lines $4,200,000, and the elevated company's expenses about $1,700,000. President Busby said: To express the matter succinctly, the surface lines cannot meet any wage in- crease whatever without an increase in fare to cover it. The issue is of vital in- terest to the public. Under the present fare of 5 cents we have barely been able to meet interest charges, but have suc- ceeded merely because traffic has been unusually heavy for the last few months. The demands of the men will receive every consideration when formally presented, but I believe the facts will show that the men are seeking terms out of all pro- portion to the high cost of living here and elsewhere. The union employees say they will take a strike vote in a short time if their demands are refused. On July 14 the City Council of Chi- cago took action to avert a strike. A resolution was adopted directing the Mayor to appoint a commission of nine Ask 77 Per Cent Increase Chicago Men Threaten Strike Vote if Their Wage Demands Are Refused July 19, 1919 Electric Eailway Journal 135 members, consisting of himself, four Aldermen, two representatives of the trainmen and two representatives of the surface and elevated roads, to re- port at once on what must be done to obtain uninterrupted transportation. The Mayor would not say when he would name the commission. On July 15 the Board of Operation of the Chicago Surface Lines held a meet- ing which was followed by meetings of the directors of the underlying com- panies. At these sessions the directors decided to reject the demands of the men, on the ground that the companies were not in a position to grant any wage increase. President Busby sent a letter to President William Quinlan of the trainmen's union setting forth the con- clusion of the board of operation. In this he stated that for eleven months under the War Labor Board scale of wages there was a decrease in residue receipts of $2,620,705, and that the total net receipts for this period yield- ed a rate of return on the purchase price of 4.98 per cent. He called attention to the friendly relations that have existed between the companies and the employees. He said there had never been a disposition to deny the employees a fair wage, but on the other hand neither the management nor the people would approve any un- warranted wage increase or unreason- able working conditions. He said the demands of the organization would in- crease wages more than 77 per cent and that under them additional em- ployees would be required for opera- tion and supervision. While admitting that there had been a material increase in the cost of liv- ing, Mr. Busby denied that there was such an increase as that carried by the proposed new wage scale and he re- ferred to the report of the United States Department of Labor, that the cost of living is practically identical in Chicago, Detroit and Cleveland. The eight-hour day, he said, is not prac- ticable in train service in Chicago with the heavy traffic congestion and fre- quent blockades. The request for time and one-half for Sundays, holidays and overtime would impose a heavy and un- necessary burden on the public, and it would not be practicable to apply a uniform rate or percentage of in- crease to the wages of the employees outside the train service irrespective of their skill or value to the service. Municipal Ownership Resolution Adopted The General Council of Atlanta, Ga., has adopted a resolution asking the Legislature of Georgia to amend the municipal charter in order that the city may be empowered to acquire, either by negotiation or condemnation, the properties of the Georgia Railway & Power Company, and enabling the municipality to erect lighting and transportation plants for itself in case of failure to acquire the power company's property. The action of Council is the first important official step that has been taken in Atlanta toward municipal ownership since the initial announce- ment of Mayor Key that he had held a conference with the officials of the Georgia Railway & Power Company, in which he was given to understand that the railway and the gas properties would be sold to the city under certain conditions. The Mayor has given out statements from time to time, announcing his de- termination to bring about city owner- ship of the public utilities, and a mes- sage was sent to Council on July 8 by the Mayor, urging action upon the question. This message has been re- ferred to the charter revision commit- tee. The measure adopted by Council, if passed by the General Assembly, will give the city of Atlanta the right to negotiate with the Georgia Railway & Power Company for the purchase of its railway lines, its power lines, and its gas lighting plants in the city, or to acquire these properties by con- demnation, if necessary. Should the charter of Atlanta be amended in ac- cordance with the resolution, the city would also have the right to erect its own lighting and power plants, and its own street railways — in case the pur- chase and the condemnation proceed- ings prove impracticable. Fifty Cents an Hour Asked The City Commissioners of Trenton, N. J., have refused to act as arbitra- tors in the dispute between the Tren- ton & Mercer County Traction Cor- poration and its employees relative to the demands for increased wages. The commissioners, however, agree to act as mediators, hearing both sides, with a view of having the wage scale amicably adjusted. Rankin Johnson, president of the company, and the em- ployees then decided to continue the conferences. It was at first agreed to place the matter in the hands of the War Labor Board, but that organization said it could not take up any new cases at this time. President Johnson told the men that as Trenton people would have to pay for any increase granted it was up to the Trenton authorities to settle the wage dispute. The platform men are now receiving 42 cents an hour and the operators of the one-man cars 47 cents an hour. They want 50 cents for all employees and 75 cents an hour for all overtime. The company offered an increase of 1 cent an hour dating from July 1, and another increase of 1 cent an hour on Oct. 1. This was turned down. The company holds that the increase re- quested would involve more than $100,- 000 additional a year and that it can not meet the added payment out of present income. The remainder of the working agreement remains in effect until March 31, 1921. The choice of arbitrators is referred to on page 137. Strike on Shore Line Employees of the Shore Line Elec- tric Railway, Norwich, Conn., are seek- ing an advance in pay. In reply to the men's formal request for more money, R. W. Perkins, president of the com- pany, has addressed the representa- tives of the men, outlining the condition of the company. In concluding his statement of the financial affairs of the company Mr. Perkins points out that in 1918 the company had a net revenue of $45,947 with which to pay taxes of $68,266 and rentals and inter- est amounting to $402,490, so that the actual loss for the year, without figur- ing dividends of any kind, was $424,- 809. In conclusion Mr. Perkins said in part: Because of this unsatisfactory condition of earnings, the management is now malt- ing a careful study of schedules and where- ever the earnings are not taking care of the actual operating expenses, these sched- ules will be reduced, which will, of course, mean a reduction in the number of men employed, and a consequent reduction in the payroll, and every effort will be made to reduce operating expense to the point where earnings will cover it. The Shore Line is owned by the estate of Morton F. Plant, deceased, and the question raised by your request for an increase in wage has been taken up with the executors for final determination, and their conclusions are that, as executors, they are not justified, and, in fact, cannot legally put other funds of the estate into this property, but that they are willing to forego their claim for interest on the se- curities held by them long enough to de- termine whether with changed conditions resulting from the signing, of the peace terms the property can be made to operate at a profit. As a consequence, the management is in a position of being absolutely unable to meet any increased operating cost, and. while fully in accord with the idea of arbitration, can see no advantage that would result from arbitration, for it would be necessary to stipulate in the beginning of the negotiations that an award for an increase of wage would result in suspension of service, for as has already been shown, wages and material are absorbing every dollar that we are able to collect from our patrons, and the only way in which the company can meet the demands for in- crease of wage is through more liberal support of the company by the people of the communities it serves, and this the people seem unwilling to do, with the re- sult that if present conditions continue the communities face a very greatly reduced service, and in some instances, entire aban- donment of service, for it goes without saying, operation of the present schedule can only continue for, and so long as, the people will pay the cost of producing it. Both you and the owners of the property are confronted with a condition that 13 most critical, and it would look as if the industry held little encouragement either for labor or capital until the people can see the tremendous commercial, social and economic value of electric railway service, and give the company its patronage, in- stead of giving it to the other less reliable forms of transportation service. Count of the strike vote taken by em- ployees of the Shore Line Electric Railway showed 98 per cent of the 500 men in favor of a strike, it was announced on July 14. A conference will be requested with the Shore Line officials, and upon the result of that will depend the time of calling the strike. The men are asking a raise from 42J cents an hour to 60 cents an hour for an eight-hour day. On July 16 the men put into effect their threat to strike, and it was re- ported that service was entirely sus- pended on the entire Shore Line Elec- tric Railway system, which includes 221 miles of road. 136 Electric Railway Journal Vol. 54, No. 3 Wage Increase in Kansas City A wage increase, retroactive to July 1, has been put into effect by the Kan- sas City (Mo.) Railways. President Kealy, announcing the increase, said that it was made because of hoped-for favorable action by the Public Service Commission with reference to increased fares and would not be possible with- out such higher fares. Under the new scale, the minimum wages for extra men is $85 a month against the old scale of $75; other comparisons of trainmen's wages are as follows: Present Scale Period Rate First six months 35 cents Second six months 36 cen s Second year 37 cents Third year 38 cents Fourth year 39 cents Fifth year 40 cents New Scale Period Rate First three months 40 cents Second nine months 42 cen's Second year 43 cents Third year 44 cents Fourth year 45 cents Carhouse men will receive the same pay as trainmen. Five cents more than the scale is paid to operators of one-man car. Operators of mail cars receive 4 cents more than the scale. The company was in need of men when the wage increase was an- nounced; within a few days it had se- cured more than 100, because of the better pay. A few of the former em- ployees who had struck last year but had not taken a malicious part in the strike, returned to work. Increased Wage Predicted for Pittsburgh The War Labor Board does not feel that it can take into account financial difficulties of electric railways in con- sidering the wage increase disputes, according to a Washington dispatch published July 15 in the Pittsburgh Post. The story in which this statement appeared was a forecast that the board will make an award in favor of the employees of the Pittsburgh Railways, whose demand for a 12-cent increase is now under consideration. The men are asking a maximum rate of 60 cents. They will be granted a scale somewhere between 53 and 60 cents, according to the Washington correspondent of the Post. A new standard and a new maximum for large cities is expected to follow an award in favor of the Pittsburgh employees. Several new conditions are under consideration by the board, this report relates, among them increased cost of living, as compared with that at the time the 48-cent scale was es- tablished, and several settlements in which arbitration by the board was not invoked, by which the workers in- volved are now receiving more than 48 cents. The situation in Portland, Ore., is cited in particular, the men there receiving 50 cents. One of the objections of the receivers of the Pittsburgh Railways to a wage increase has been inability of the lines to pay more. On this matter the po- sition of the board is understood to be that it cannot concern itself with the revenues or financial condition of a company. The award in the Pittsburgh case is expected shortly after July 25, when Basil Manly, joint chairman with Will- iam Howard Taft, of the board will return to Washington from the Pacific coast. As has been explained before in the Electric Railway Journal, this award will not be final, as the United States District Court at Pitts- burgh has reserved the right of pass- ing upon it. In turn, the men have reserved the right to re-open their strike, which was brought to a close by submission of their demands to the board, if the court negatives any award in their favor. Kansas City Employees Aid Company The employees of the Kansas City (Mo.) Railways assisted materially in the application of the company for in- creased fares, before the Public Serv- ice Commission of Missouri. The em- ployees prepared a petition, signed by several hundred of them, pointing out to the commission that part of the in- come from increased fares would be used to give them more wages. A significant feature of the petition was the statement that the present em- ployees of the company do not believe in strikes; and that they are not now holding any threat over the company, the public or the commission, of going on strike if higher rates and higher fares are not granted. This position of the men is in con- trast with the attitude of the unions which formerly included a large pro- portion of the company's employees, the union men going so far as to threaten not only the company and the public, and inferentially the commission, but to intimate to courts that formal orders had no effect on their attitude. The Kansas City Railways did not wait for the formal order of the com- mission with reference to higher rates, but increased wages, about the time the petition was presented. The petition to the commission was presented by forty employees while the commission was holding a hearing at Kansas City on the matter of fares. Ex- cept for the preamble the petition follows in full : In considering- this petition we ask that you take into account the following facts; 1. That the present employees of the Kansas City Railways entered its service at a time when the people of Kansas City were denied transportation by the refusal of the company's former employees to work. 2. That we do not believe in strikes by employees of a public utility, but believe that we are rendering a public service, and we have every confidence that your body can and will make such adjustments as are necessary to secure for us an adequate and living wage. 3. We know that the financial affairs of the company are such that an increase in wages under present conditions is an im- possibility, and that any such increase without an increase in income will only result in bankruptcy to the company, re- duction of service to the public, and worse conditions than those we are now under- going. 4. We know that the management of the company realizes the necessity for an in- crease in wages and have the assurance that any increase in revenue granted the company will be shared by us. and that the company is willing that the commission so order. 5. We also desire to call to your atten- tion the fact that throughout the United States the street railway union in its nego- tiations with railways for higher wages recognizes the above conditions and has in many cases joined as we are doing with the company in an appeal to state authori- ties for relief. The union has. however, held as a club over the heads of the com- pany, the commissions, and the public, the threat to strike and disrupt the business and social life of the communities in which these companies operate. This we do not do. Therefore, having in mind these consid- erations, we respectfully petition your hon- orable body in its deliberations on the rate of fare in Kansas City to have in mind the service we are rendering and the fact that we address you without threat or compul- sion, and grant to the Kansas City Rail- ways, with all the restrictions and safe- guards necessary for the proper protection of the public, such a rate of fare as will allow this company to pay us a wage com- mepsurate with the rate paid for the same work in other cities, and that in so doing you incorporate in your decision the scale of wages to be paid by the Kansas City Rn ilways. Improvement Program Started The city engineering department of Seattle, Wash., announces that accord- ing to all indications, the work of com- pleting the necessary connections for the Seattle Municipal Elevated Rail- way will, in all probability, be com- pleted by Aug. 1 and service started at that time. The track work at the outer end of the elevated is completed. The northern terminus of the line will be relocated, permitting the patrons of the Lake Burien line to ride into the business section of the city of Seattle without transferring at Riverside, as hereto- fore planned. Work on a number of municipal rail- way projects will be started at once, with J. J. Wettrick, chief engineer, in charge. The projects were recom- mended to the Council by Thomas F. Murphine, superintendent of public utilities, after a careful survey of the system. The work of improvement that it is planned to carry out at this time is provided for in a bond issue of $750,000 passed recently. The proceeds from this issue will not reach the city treasury until Septem- ber, but the work will be financed by loans from the city railway and gen- eral fund. The most important work planned includes the double-tracking of Leary Avenue for use by Ballard ears; con- struction of a double-track line on Ava- lon Way; and making track connections at Third Avenue and Pine Street. The latter improvement is made for the purpose of enabling the city to operate its Division "A" or Ballard cars on Third Avenue, instead of Fourth Ave- nue, as at present, thus eliminating a monthly payment to the Seattle & Rainier Valley Railway for common- user rights on its Fourth Avenue tracks. < July 19, 1919 Electric Railway Journal 137 Receiver's Name on Cars.— The name of Job E. Hedges, receiver of the New York (N. Y.) Railways, is being paint- ed on all the cars of that company in letters 6 in. high, underneath the name, "New York Railways," and above and close to the wheels. Toronto Strike Settled. — Service on the lines of the Toronto (Ont.) Rail- way was resumed on July 4 after twelve days, on the announcement that the Ontario Railway & Municipal Board had agreed to accept the interim award of the Board of Conciliation to the employees, granting them a mini- mum wage of 50 cents an hour and a maximum wage of 55 cents. Kansas City Director Reappointed. — The Court of Appeals at Kansas City, Mo., has announced the reap- pointment of W. T. Kemper as a city director of the Kansas City Railways. His present term expires in August. Mayor Cowgill, in compliance with the franchise ordinance, submitted three names, including that of the retiring director, to the court. The other names were J. Q. Watkins and George H. Edwards. Employees Reject Oflfer. — Officials of the union have informed E. F. Schneider, general manager of the Cleveland, Southwestern & Columbus Railway, that the company's offer of an increase of 6 cents an hour in the wage schedule has been rejected. They are asking a maximum of 60 cents an hour. The company's offer is 41 cents for the first three months, 44 cents for t^^e next nine months and 48 cents thereafter. Receiver Authorizes Payment of Accident Claims. — Authority to pay accident claims found just after in- vestigation has been granted the receivers of the Pittsburgh (Pa.) Rail- ways by the United States District Court. This order settles one of the difficulties the receivers have faced. Numerous suits now pending in the Common Pleas Court can be settled at a saving and much future litigation may be avoided. Orders Tracks Removed. — The Com- missioners of Stark County, Ohio, adopted a resolution, on July 9, de- manding that the Northern Ohio Trac- tion & Light Company cease operation on the Canton-Massillon line within ten days and remove its tracks within thirty days. The resolution authorizes the prosecuting attorney to start and ouster suit in the Ohio Supreme Court if the company has failed to vacate the road at the end of thirty days. This tribunal some time ago held that the franchise expired in 1917. Barber, Cigar and Shoe Shining Privileges. — The Kansas City (Mo.) Railways is providing space at its Ninth and Brighton division head- quarters, for the opening of a barber shop, cigar stand, shoe shining out- fit, and other conveniences, to be oper- ated by' old employees, catering to trainmen. The company is not financ- ing the enterprise, but is assisting the men in establishing it on a sound basis. Moderate prices will be charged. The establishment of these conveniences at headquarters will obviate the neces- sity for the men going several blocks for such service. Trenton Arbitrators Chosen. — James H. Vahey, counsel for the Amalga- mated Association, has been named by the employees of the Trenton & Mer- cer County Traction Corporation, Trenton, N. J., as their arbitrator to consider the wage differences between the men and the company. A. S. Richey, Worcester, Mass., will act as arbitrator for the company. Messrs. Taft and Manly, joint chairmen of the War Labor Board, will appoint three others to act with Messrs. Vahey and Richey. The arbitrators will not meet for several days yet. Georgia Municipalities Favor Mu- nicipal Ownership. — The Georgia League of Municipalities in session at Atlanta, Ga., recently endorsed the principal of municipal ownership in its entirety and appointed a committee of five to appear before the present ses- sion of the Legislature of Georgia and appeal for legislation permitting mu- nicipalities to acquire or to build and operate such public utilities as they may desire. The Legislature will also be asked to guarantee to the munici- pality that their right to ovm and operate their own public utilities shall not in any way be abridged or re- stricted. Wage Question Compromised. — Through an agreement reached on July 11 between the representatives of the motormen and conductors and the officers of the Cleveland, Southwestern & Columbus Railway, Cleveland, Ohio, the threatened strike was averted. ■ The agree- ment was in the nature of a com- promise. The men are to receive 42 cents for the first three months of service, 46 cents for the next nine months and 50 cents thereafter. The old scale was 38, 40 and 42 cents. The company had previously offered the men 41 cents for the first year of serv- ice. 44 cents for the second and 48 cents thereafter. Broadway Subway Extended. — Two new stations on the Broadway subway line of the Brooklyn (N. Y.) Rapid Transit Company have been opened, thus extending the present line from Times Square, New York, to Fifty- ninth Street, at the point where the subway will turn east to connect the lines in the Borough of Manhatan with those in the Borough of Queens. The line has been in operation in Broad- way as far north as Forty-second Street for many months. Its extension farther north was delayed because of the complicated construction involved in passing underneath the line of the Interborough Rapid Transit Company just north of Forty-second Street. Municipal Ownership Committee Ap- pointed.— President Corcoran of the Common Council of Milwaukee, Wis., has announced the membership of the committee which will inquire into the feasibility of the purchase by the city of the utilities owned by the Milwaukee Electric Railway & Light Company. A law enacted at the present session of the Legislature provides for financ- ing the purchase of public utilities by the cities of Wisconsin with payment for any such plant by bonds issued against the value of the plant, a cer- tain percentage of gross earnings be- ing set aside to pay the interest and principal of the securities. Hereto- fore the only method of paying for public utilities purchased by cities was by general city bonds. With the con- stitutional debt limit of 5 per cent only a few cities had a sufficient bond issue margin to permit of purchasing public utilities. Improvement Plan Halted. — Lack of money and the difficulty of disposing of bonds will prevent the Chicago (111.) Surface Lines this year from carrying out the ordinance provision which re- quires 23 miles of track extensions ev- ery year. This announcement was made to the transportation committee of the City Council on July 9 by John E. Wilkie, assistant to L. A. Busby, presi- dent of the company. "The market value of our securities is so low," he said, "that we cannot afford to stand the loss of placing new securities on the market which would hardly give us half the value of the paper." The Surface Lines system has been growing rapidly because of this provision of the ordi- nance, and while there was little or no extension last year because of govern- ment restrictions the Aldermen had hoped that the building program would be renewed. The matter was left to a sub-committee. Service Restored in Urbana. — Twenty-minute service was given by the Urbana & Champaign Railway, Gas & Electric Company in Urbana, 111., on July 8. Each car was accom- panied by an armed guard, and no effort was made at any time to inter- fere with the free movement of serv- ice. No cars were run after 7 p. m. The cars were in charge of men who belonged to the "brotherhood," all union men being out on strike. There were no developments during the day, except a hint that there would pos- sibly be a general strike of all organ- ized labor in Champaign and Urbana in sympathy with the union street railway men. The strike was un- changed on July 14, the cars being operated under a twenty-minute sched- ule with guards on each car. No cars are operated after 7 p; m. The best of order prevails. The twenty-minute schedule is a source of inconvenience to the public, which is accustomed to a 10 and a 12-minute service. 138 Electric Railway Journal Vol. 54, No. 3 Financial and Corporate Revenues Jumped 86 Per Cent W, B. & A. System in 1918 Again Displayed a Marvelous Ex- pansion in Business The calendar year 1917, with an in- crease of $613,923 or 64.9 per cent in gross operating revenue, had seemed to set a mark which it would be difficult to reach again in the growth of the Washington, Baltimore & Annapolis Electric Railroad, Baltimore, Md. Nevertheless the succeeding year of 1918 pi-oved even more successful, for the gross operating revenues showed a gain of $1,341,889 or 86.0 per cent over those of 1917. INCOME STATEMENT OF WASHINGTON, BALTIMORE & ANNAPOLIS ELECTRIC RAILROAD FOR CALENDAR YEARS 1917 AND 1918 ^ 1918 • 1917 . Per Per Amount Cent Amount Cent Railway operat- ing revenues... $2,902,014 100.0 $1,560,125 100.0 Railway oper- ating expen- ses* 1,740,281 59.9 738,597 47.3 Net revenue rail- way operations $1,161,733 40.1 $821,528 52.7 Net revenue auxiliary op- erations.... 127,188 4.4 25,575 1.6 Net operating revenue ... .. $1,288,921 44.5 $847,103 54.3 Taxes assign- able to rail- w a y opera- tionst 523,426 18.4 129,052 8.3 Operating i n - come $765,495 26.1 $718,051 46.0 Nonoperating income 17,953 0.6 12,893 0.8 Gross income. . . $783,448 26.7 $730,944 46 8 Deductions from gross income 288,912 9.6 268,293 17.2 Netincomet. . . $494,536 17.1 $462,651 29.6 * Includes special depreciation on account of war- work facilities. t This item covers all taxes, including income and war taxes. t Net profit for the year, after the deduction of income and war taxes and special depreciation. The operating expenses, because of both the increased business and the higher costs, naturally showed a large increase too, but there was still left a gain of about $441,000 in net operating revenue. Of this sum $394,000 was taken up in the item covering taxes, in- cluding excess profits and war taxes. The final result for the year was an in- crease of $31,885 or 6 per cent in net income. Approximately one-third of the gross revenue only was derived from Camp Meade and practically all of the profit thereon was paid to the government in excess profits taxes. Therefore, the elimination, of Camp Meade, if con- temporaneous with the elimination of excess profits taxes, would not in the least affect the normal earn- ing capacity of the company. There has been, however, an official announce- ment that the cantonment at Meade is to be a permanent factor in the mili- tary program. When the Washington, Baltimore & Annapolis line was originally construct- ed about fifteen years ago, the terri- tory between Baltimore and Washing- ton was very sparsely settled and al- most undeveloped. It has taken this territory many years to come into its own, but with the advent of the rail- way and frequent electric service be- tween Washington and Baltimore and the intervening districts, there has sprung up an interurban population and traffic, rapidly extending, now suf- ficient in the judgment of the company to warrant the stability of the system. The total car miles operated in 1918 were 5,344,729, of which 5,101,507 were passenger. A total of 5.946,697 revenue passengers were carried in 1918 as com- pared to 3,429,966 in 1917. The earn- ings per car mile were the same in both years, at 58.98 cents. The total net expenditure for acquisitions and perma- nent improvements during 1918 was $700,424, of which $520,733 was for way and structures and $159,743 for equipment. Reorganization Approved The properties of the Oakland Antioch & Eastern Railway, Oakland, Cal., the Oakland & Antioch Railway and the San Ramon Valley Railroad, as planned by the committee named to reorgnize the three lines, are to be sold to a corporation to be formed for the purpose of carrying on the business of the three lines in accordance with the plans of the reoganization committee. The California Railroad Commission, in an order issued on June 27, has con- sented to the transfer of the properties to the new corporation as soon as it has been formed and has authorized the new company to issue the stocks and bonds necessary to carry out the reorganization plan. Of the bonds, there are to be not exceeding $1,950,000 bearing interest at not more than 6 per cent a year; $1,330,000 of 6 per cent preferred stock and $4,000,000 of common stock. The reorganization plan reduces the annual fixed charges of the proper- ties from $285,000 to $117,000 a year; the bonded debt from $6,444,000 to $1,950,000 and the capital stock from $8,711,300 to - at least $5,330,000. The holders of 92 per cent of the obli- gations of the three roads have ap- proved the plans of the reorganization committee. The details of the reorganization plan were reviewed in the Electric Railway Journal for May 17, page 981. Receiver for Surface Lines Brooklyn Roads Placed Under Mr. Garrison on Account of Impair- ment of Their Credit Judge Julius M. Mayer, in the Fed- eral District Court, at New York, on July 14, extended the Brooklyn Rapid Transit receivership so as to place Lindley M. Garrison, the receiver, in charge of the surface railways in Brooklyn. Previously, the receivership had covered only the Brooklyn Rapid Transit Company and the elevated and subway lines of that system. All Surface Lines Covered The extension was made to cover the Brooklyn Heights Railroad, the Nassau Electric Railroad, the Brooklyn, Queens County & Suburban Railroad, and the Coney Island & Brooklyn Rail- road which, through leases, virtually control all surface lines in Brooklyn. The action was taken at the instance of the Central Union Trust Company to foreclose the first refunding 4 per cent mortgage of the Brooklyn Rapid Transit Company, and to enforce a legal and equitable lien upon the prop- erty, as well as to protect the title to the real estate and personal property of the company. The additional bond of the receiver was fixed at $100,000, and the order putting him in charge of the surface roads was made returnable be- fore Judge Mayer on Aug. 26. Under the order the receiver will operate the surface lines as well as the elevated and subway lines. The first refunding gold mortgage under which the Central Union Trust Company is trustee was made on July 1, 1902, to secure an issue of bonds aggregating $150,000,000 due and pay- able on July 1, 2002. Of these bonds, which drew interest at 4 per cent, $57,- 240,000 was issued. Under the mort- gage $29,619,000 of the gold mortgage bonds which had been converted into capital stock have been surrendered and cancelled, leaving $27,621,000 outstand- ing- Credit of Surface Lines Impaired In the foreclosure suit it is alleged that since the appointment of Mr. Gar- rison as receiver for the Brooklyn Rapid Transit Company the credit of the surface railroads has become im- paired, and the companies vdll be un- able to finance their immediate and future capital requirements. It also is asserted that their available funds, receipts, and earnings are being ex- hausted because of the lack of credit and the necessity of making cash de- posits as security for stay or other bonds which they cannot obtain. Timothy S. Williams, formerly pres- ident of the Brooklyn Rapid Transit Company, it was announced, will re- main with the receiver, having charge of the operation of the surface lines. There will be no change in the man- agement or operation of the lines in- cluded in the surface railway system. July 19, 1919 Electric Railway Journal 189 Notice of Default Served The United Railways, St. Louis, Mo., has been served with notice of default by the trustees for holders of the gen- eral mortgage 4 per cent bonds, ag- gregating $30,000,000, it was revealed on July 10 in the hearing before Spe- cial Master Henry Lamm on Receiver Rolla Wells' application for authority to issue receivers' certificates or one- year notes to pay the government loan of $3,235,000, which is several months overdue. The inability of the company to raise the funds to pay off this loan, which was secured by the pledging of matured Union Depot Railway bonds, threatens the foreclosure of the gen- eral mortgage. The failure to release the Union Depot bonds for cancella- tion constitutes the alleged default. The default notice was served upon the United Railways by the St. Louis Union Trust Company, trustee for the United Railways' 4 per cent bonds. Judge George H. Williams, a bond- holder, and attorney for one of the bondholders, said the United Railways covenanted itself to pay off and re- tire the underlying bonds as they fell due and that its failure to take up the Union Depot bonds violates this agree- ment and constitutes a default. No foreclosure, however, under the terms of the general mortgage, can occur, Mr. Williams said, until ninety days' notice is given. The purpose of the hearing before Special Master Lamm is to devise some financial arrangement for paying off the War Finance Corporation loan of $3,235,000, which would release the Union Depot Railway bonds for can- cellation and thus avoid foreclosure. Charles W. Bates, attorney for the receiver, suggested to Special Master Lamm that Judge Lamm recommend to the court that it direct the receiver to issue certificates, these to be a first lien on the Union Depot Railway bonds, and that this lien be behind all of the di- visional mortgages and ahead of the 4 per cent bonds. Discontinuance of Service Threatened Unless the communities served by the Georgetown, Rowley & Ipswich and the New Bedford, Middleboro & Brockton branches of the Eastern Massachusetts Street Railway, Boston, Mass., are willing to contribute to the support of these lines under the pro- visions of Section 15, Special Act of the 1918 Legislature, which allows them to do so, service will be discon- tinued thereon on Sept. 1. , Notice to this effect has been served upon the public officials in the territory included in these two units of the sys- tem by the public trustees of the rail- way, who say they do not believe either can be included fairly in any of the adjoining districts. The trustees further declare that from figures available they are con- vinced that without substantial finan- cial aid from the cities and towns in- volved the lines cannot be operated without a loss. In the establishment of the "home rule" districts, the trustees feel that the complaint of many communities that they should not be made to carry the financial load of non-paying lines, with which they have nothing directly in common, is a well-founded one. On the Georgetown, Rowley & Ip- swich and the New Bedford, Middle- boro & Brockton branches there are about 54 miles of rail. The discontinuance of service on other unprofitable lines is also being considered by the trustees. Memphis Valuation Board Appointed . Prof. Albert S. Richey of the Wor- cester (Mass.) Polytechnic Institute has been appointed by the Railroad & Public Utilities Commission of Ten- nessee to act as its representative in the appraisal of the property of the Memphis Street Railway in accord- ance with the order of the commission dated June 12, which is quoted in the Electric Railway Journal of June 21, page 1247. Three appraisers are to be appointed to determine the value of the railway in its fight for a permanent 6-cent fare. The city of Memphis has announced that it will appoint Ross W. Harris, Madison, Wis., who represented the city in the preliminary hearing on the 6-cent fare. The third appraiser, to be appointed by the railway, has not yet been designated. Virginia Road Reclaimed The Richmond - Ashland Railway, Richmond, Va., organized recently, has taken over the property of the Rich- mond & Chesapeake Bay Railway and is actively rehabilitating the line under the plan to reclaim the road outlined briefly in the Electric Railway Jour- nal for March 29, page 662. The first 8 miles of the road between Rich- mond and Greenwood are now in oper- ation and during the month of July the complete line will be rehabilitated and will be in operation as far as Ash- land. The corporation has in contemplation some extensions of considerable general interest if it should be in position to carry out the proposed plans. The temporary organization of the com- pany consists of Jonathan Bryan, Richmond, president, O. J. Sands, Richmond, treasurer, and J. A. Baird, Petersburg, Va., general manager. Upon completion and beginning of the operation of the line between Rich- mond and Ashland the permanent organization will then take charge of the company and the property, but it is hoped that certain of the proposed additional plans will be worked out prior to that time. Segregation Permitted Judge Julius M. Mayer, in the United States District Court, made an order, on July 11, separating the Eighth Avenue Railroad from the receivership of the New York Railways. The order carries with it the proviso that the contract to be made by the receiver with this line shall, in the matter of transfers, be the same as if the sever- ance had not taken place. The order eliminates the danger of a 10-cent fare, as the old transfer system applies until the order of Public Service Commis- sioner Lewis Nixon, prescribing a 2- cent transfer charge, is confirmed or set aside. Judge Mayer said he had come to the conclusion that the Eighth Avenue line was not an asset but a burden to the estate under the receivership and should be severed therefrom. He made it clear that the order, when settled, should not be in conflict in any way with the order of Commissioner Nixon. He did not decide he had any authority to fix a joint rate between any lines involved in the transfer issue. Bronson Winthrop and Henry L. Stimson appeared for the receiver while Michael Kirtland and Morgan J. O'Brien represented the company seeking severance. Mr. Winthrop said: The Eighth Avenue Company is playing the part here of a company anxious to get baclc its lines, but without being able to show the court it can operate them. The most serious objection is that the Eighth Avenue line has no right to operate a double-track system below West Tenth Street, in West Broadway. It has only a single-track franchise. It must operate double tracks in this street if it can get anywhere where it can turn around and come back. This company has a single-track fran- chise down West Broadway to Vesey Street, and then up Church Street to Chambers. Tlie Church Street line is not in operation. From Vesey to Chambers it is a dead line. It would take two or three months to electrify a cross-over at either of the points named. Mr. Kirtland, for the applicant, said that all tracks south of Canal Street to Chambers were owned jointly by the Sixth and Eighth Avenue com- panies and all south of Chambers Street by the Sixth and Ninth Avenue companies. His company proposed to use the Cortlandt Street loop of the Ninth Avenue system until it could build its own crossovers. Sharon, Mass., to Control Elec- tric Railway The town of Sharon, Mass., will shortly begin to operate the former Norwood, Canton & Sharon Street Railway, which was sold for wreckage purposes recently to the Dominion Iron & Wrecking Company, of Canada. The town will proceed upon authority of an act passed by the Legislature of 1918, which allows municipalities to finance the operation of electric railways by the assessment of a tax of not over $1 per $1,000 valuation. The act was passed as a war measure but remains in force upon the statute books at tliis time. It is planned to sell stock to^ the citizens at $50 a share, an allow- 140 Electric Railway Journal Vol. 54, No. 3 ance of 6 per cent interest being ac- corded as a part of the regular oper- ating cost of the road. A stock com- pany composed of citizens was formed recently with the following officers: President, Vernon S. Hawkins, of the Sharon Board of Selectmen; clerk, Postmaster Joseph L. McGrath; treas- urer, S. G. Spear; directors, Frederick A. Prince and C. V. Reynolds. The road barely escaped being junked, the town coming to the rescue just in time to prevent dismantling. Court Upholds Milwaukee Purchase The State Supreme Court of Wiscon- sin has handed down a decision sus- taining the findings of the Circuit Court of Dane County, denying a temporary injunction restraining the Railroad Commission from proceeding to deter- mine the application of the Milwaukee Electric Railway & Light Company for leave to issue $1,600,000 of common stock in part payment for the purchase of the utility property of the Milwaukee Light, Heat & Traction Company. Deeds were executed and delivered cov- ering this property on Feb. 11, 1919. City Attorney Williams of Milwaukee sought an injunction before the Dane County Court to restrain the Railroad Commission from proceeding to deter- mine the application of the company for leave to issue certain securities and make certain payments for the prop- erty of the traction company. Judge Stevens denied the temporary injunc- tion, from which decision the city ap- pealed. In commenting upon the decision of the Supreme Court, S. B. Way, vice- president and general manager, said: The contention of the electric company in the matter of the purchase of the property of tlie Milwaukee Light, Heat & Traction Company has apparently finally been vindi- cated by the decision of the Supreme Court. In this, as in a considerable number of other cases in which the city attorney has appealed to the Supreme Court, the decision has been against the city. $2,500,000 of Receiver's Certificates As the result of an informal agree- ment between the various financial in- terests in the United Railways, St. Louis, Mo., involved in the litigation before Special Master Lamm, the latter indicated on July 15 that he would recommend to Federal Judge Dyer authorization of the issuance of $2,500,- 000 in receiver's certificates to take up the $2,400,000 defaulted balance and interest due the United States War Finance Corporation. The receiver's certificates will be secured by a first lien on the property of the Union Depot Railway, part of the Bellefontaine, Tower Grove, Cher- okee and Eighteenth Street lines of the United Railways. By the sale of these certificates the $3,500,000 of 6 per cent Union Depot bonds now held as collateral by the War Finance Corporation will be re- tired. It will not be necessary to issue a new mortgage to secure the receiver s certificates. If the certificates cannot be sold at a satisfactory price, the re- ceiver will come before Special Master Lamm with an alternate proposal. The special master made it clear that he did not favor selling the certificates at a heavy discount. The agreement was reached after Judge Lamm had expressed his opinion on the necessity of a reorganization of the United Railways from the ground up "on a substantial foundation." The master said: This corporation must cut loose and make a new superstructure on a decent founda- tion. We haven't got it yet. We will have it in a few months (referring to the valuation of the United Railway proper- ties now being made by the Missouri Pub- lic Service Commission). It is urgently necessary to preserve this property for the present. I am inclined to make this order (for the receiver's certifi- cates) to the chancellor. I would like to put a limit on the discounung of the cer- tificates, however. In an emergency such as this financiers might insist on a heavy slice. That would ultimately increase the bonded debt. The special master finally gave Re- ceiver Wells permission to drive the best bargain possible. Illinois Road Sold Under Foreclosure The property of the Southern Trac- tion Company, in the hands of a re- ceiver for five years, has been sold at public auction to H. D. Mepham, St. Louis, Mo., for $400,000. Mr. Mepham was one of the original builders of the road. He announced immediately after the sale that interests in the East would at once begin the operation of the road over the free bridge in East St. Louis and gradually would extend service to Belleville. The road was sold at the terminal yards of the company, at Tweny-sixth Street and Trendley Avenue, East St. Louis, 111., by Peter P. Schaefer, master in chancery of the Federal Court for the Eastern District of Illinois, under an order of Judge George W. English, who had decreed that $300,000 was to be the minimum price for which the pioperty could be sold. There were only two bidders for the property: Attorney Rowland, repre- senting Mr. Mepham, and Attorney E. C. Kramer, representing the South- ern Coal, Coke & Mining Company. Mr. Mepham presented a certified check for $30,000 on a New York bank. The next step will be the payment of the remaining $370,000 due on the pur- chase price. If any default arises, an- other sale will in all probability be ordered. The lines, according to the original plans, were to have been extended through a rich coal mining district, passing through the cities of Chris- topher, Duquoin, Benton and West Frankfort. Court proceedings insti- tuted in clearing up the claims against the Southern Traction Company prob- ably will not be disposed of for more than a year, it is said. Financial News Notes Sale of Jackson Property Reported. — It is reported from Jackson, Miss., that the property of the Jackson Light & Traction Company, has been pur- chased by M. H. Grossman, Milwaukee, Wis., whose bid was $5,000, subject to all liens, etc. Additional Preferred Stock Issued. — The Pacific Gas & Electric Company, San Francisco, Cal., has sold $5,000,- 000 of its 6 per cent cumulative pre- ferred stock to a syndicate of bankers. According to an official of the com- pany, the sale of the stock will increase the company's cash to an amount in excess of $10,000,000. Asks Reduction in Tax Value. — On July 9 the Cleveland (Ohio) Railway filed suit in Common Pleas Court against County Auditor John A. Zan- gerle and the members of the State Tax Commission, asking that the an- nual tax valuation of the company's property be reduced from $33,825,220 to $19,843,960. A similar suit filed a year ago has been carried to the Ohio Supreme Court. Jersey Central Traction Company, Matawan, N. J. — The Jersey Central Traction Company has been ordered by the Board of Public Utility Commis- sioners to make repairs and replace- ments to be completed not later than Nov. 9. On the Keyport-Perth Amboy division the company has been ordered to raise the tracks to the proper level at the approaches to the bridge across the Matawan Creek. Will Appeal Tax Decision. — Thomas W. Gregory, secretary-treasurer of the St. Louis & East St. Louis Electric Railway, East St. Louis, 111., operating on Eads Bridge, has announced that an appeal will be taken to the United States Supreme Court from the de- cision of Judge Bond in the Missouri Supreme Court, affirming a judgment in the suit of the city of St. Louis against the company for taxes amount- ing to $8,356. Bond Interest Payment Authorized. — Payment of $18,750 due on July 1, on the mortgage of the Pittsburgh, Canonsburg & Washington Rjailway, included in the system of the Pitts- burgh (Pa.) Railways, was ordered re- cently by the federal court, under which receivers are operating the lines. Hope that payment of fixed charges may be resumed is entertained since the announcement was made of an in- crease in the cash fares to 10 cents to take efltect on Aug. 1. Time for Consolidation Extended. — At a meeting of the City Commission of Dayton, Ohio, on July 9, the local railway companies were granted an ex- tension of time for consummating a July 19, 1919 Electric Railway Journal 141 consolidation. When they were grant- ed an increase in fare, it was on con- dition that they make an earnest effort to effect a merger. It is understood that satisfacory progress has been made by the City Railway looking toward taking over the People's Rail- way. Ohio Road May Be Junked. — C. G. Taylor, receiver of the Sandusky, Nor- walk & Mansfield Electric Railway, Norwalk, Ohio, is quoted as saying that this company's line, about 24i miles in length, may be junked. Mr. Taylor is reported to have said that the star of the interurban line seemed to be setting. There was too much competi- tion. According to him, the automobile has absorbed much of the passenger traffic and now came the automobile truck to take away what little freight business there was. Interest Payment Ordered. — Job E. Hedges, receiver of the New York (N. Y.) Railways, was ordered by Judge Mayer in the Federal Court at New York on July 14 to pay the Guaranty Trust Company, New York, N. Y., in- terest to Oct. 7 next, on a note for $400,000. The payment will prevent the Guaranty Trust Company from selling the collateral security, consist- ing of $1,000,000 first real estate re- funding 4 per cent bonds of the New York Railways. The Guaranty Trust Company, in 1917, lent to the New York Railways $1,200,000, which has been reduced since to the amount of the note, upon which no interest has been paid since April 2. St. Louis Receiver Reports Earnings. — The gross earnings from passenger traffic of the United Railways, St. Louis, Mo., during the period between June 1, 1918, and April 30, 1919, were $13,- 310,537, a gain of 14.56 per cent over the previous year, according to a re- port filed on June 27 with the Missouri Public Service Commission by Rolla Wells, receiver of the railway. Of these earnings $12,808,625 were from traffic within the city of St. Louis and the balance for St. Louis County. The increase in earning on the city division over the previous year was 15.42 per cent, while the county earnings of the company showed an increase of only 1.97 per cent over the previous year. The total number of revenue passen- gers carried during the period covered by the report was 225,983,272. $130,000 of Bonds Authorized. — The Public Service Commission for the Second District of New York, on July 10, passed an order authorizing the Poughkeepsie & Wappingers Falls Railway, Poughkeepsie, N. Y., to issue $130,000 of 6 per cent first mortgage bonds, provided the bonds shall not be sold until the proposed sale price is approved by the commission. The pro- ceeds of the bonds are to be applied to construction work partly completed and proposed relaying of track in Main Street, Poughkeepsie, from the car- house to Cherry Street and in Main Street from Cherry Street to Arlington switch including paving. The com- pleted work is principally in Wap- pingers Falls, including paving costs and other general track reconstruction and equipment. Application for Receiver Refused. — Judge Guy F. Nelson of the Superior Court has denied the application ot Mayor John L. Wisener for a receiver for the Muskogee (Okla.) Electric Traction Company in connection with the strike of the employees of that company. The court held, first, that the city had no standing in court, in- asmuch as it has nothing at stake fi- nancially, and that no one but a stock- holder or bondholder could maintain an action of this kind. Secondly, that the conditions charged by the city had been in effect for years and the city had taken no action which indicated the suit was brought in good faith. The court scored the city officials for failure to give the company police protection when it had twice made an effort to operate its cars. The judge said: "It is the duty of the city to furnish pro- tection for all property within the city and to funiish the protection needed to cai-ry on business." New Bill for Receiver. — A new bill for the appointment of a receiver for the Rock Island (111.) Southern Trac- tion Company, together with a motion to dismiss the old bill, has been filed in the Knox County Circuit Court at Galesburg, III. The old bill, on which evidence has been heard by the master in chancery, charged that the defend- ant company had allowed the rolling stock and property of the road to run down until there was danger that the stockholders and bondholders would lose their investments. The new bill charges that the company had de- faulted for six months in the payment of interest on the bonds. The old charge of allowing the property to de- teriorate is also included in the new bill. The financial affairs of the Rock Island Southern Railroad have been in court for some time and the new bill for a receiver is the final step in liti- gation between the Continental & Commercial Trust & Savings Bank, Chicago, 111., representing the holders of the secured debt of the company, and the owners of the road. Receivership Action Continued. — An attempt to throw the Galesburg & Western Railway, now under lease to the Rock Island Southern Railroad, into the hands of a receiver was blocked in the Knox County Circuit Court at Galesburg, 111., when Judge Thompson advised the attorneys for the Continental & Commercial Trust & Savings Bank, Chicago, 111., seeking the order, to ascertain whether the Rock Island Southern Railway is under government control. Judge Thompson questioned whether the fact that the Galesburg & Western Railway was leased to the Rock Island Southern Railroad brought the former under government control, if the Rock Island Southern connected with the Chicago, Rock Island & Pacific Railway and the Chicago, Burlington j< /c/ >| ROUTE AS DIVIDED ON NEW SYSTEM ••- I I I I I I I i I I i I n 0I2345&1S9IOIII2 Any four consecutive stages Id Any five " " //if e/ Any six " " /^a/ FIG. 1 — ZONE DIVISIONS UNDER B. E. T. "FAIR FARE" PLAN that is to say, if he did not get off and walk after riding a penny-worth. The passenger would also be likely to board the car in more comfort than if he had to take his chances with a crowd at a penny end- on stage. The introduction of the shorter stages made pos- sible by the farthing increment scheme was accompa- nied by the use of numbered stages. As the numbers were marked on the poles, the passenger was in no doubt as to his alighting point, since he had to watch only for the same number as that punched on his ticket. For still better identification, each section of the route 156 Electric Railway Journal Vol. 54, No. 4 was marked black or white by painting black or white bands around the poles. In addition, the sections were numbered consecutively by means of plates on the bound- ary poles of each section. One part of the plate bore the number of the completed section, and the other bore the number of the section just beginning. The black and white arrangement thus worked out is shown in Fig. 2. The tickets were arranged on the same principle, as shown in the accompanying views of Id. and lid. specimens. On these tickets the adjoining sections were distinguished by one bemg black and one of the color chosen for the specific denomination. When a pas- senger paid his fare, the conductor punched the ticket opposite the number of the stage to which the pas- senger was entitled to travel. Thus, if he got in at aiii]iBB[i][i]SBi][iHm] FIG. 2- -DIAGRAMMATIC VIEW OF B. E. T. LINE WITH BLACK AND WHITE .SECTIONS stage "2" he was entitled to ride to any point in "5" for a penny (or vice versa), the fare being, say, four sec- tions for Id. Likewise, if he traveled from stage "2" to stage "6," he would pay lid. instead of 2d. With the coming of the war, the farthing became too microscopic in value to be used as a fare increment. But by the time it was withdrawn it had done its work of creating the habit of taking the maximum- length ride instead of walking hundreds of yards to save a penny or even a half-penny. The car-mile earn- ings, even on routes where one can walk from end to end within an hour, are eloquent testimony to the strength of the riding habit in B. E. T. communities. It is also a fortunate fact for the company that war wages have been a big factor in increased riding. This has been the one offset to the great increase in the expenses of operation. New Standard B. E. T. Cars The company has recently developed three types of cars for use on its Black Countrj^ undertakings and on other properties to replace gradually the wide number of varieties now in service. These are illus- trated on page 154. Type 1 is a side-opening single-deck car, the openings being closed in winter by installing four doors on each side. This is a double-truck car. 44 ft. over all and 35 ft. over the body. It carries two GE-60, 35-hp. motors, which give it sufficient power to operate at fairly high speeds over country highways and right- of-way. The seating capacity is fifty-six. Type 2 is a double-deck single-truck car 27 ft. over all and 16 ft. over the body. It has an 8-ft. 6-in. wheel- base and is equipped with two GE-249, 40-hp. self- ventilated motors. The top deck is covered, and the platforms are partly vestibuled. This car seats twenty- two below and twenty-six above. It is being used for service into Birmingham. Type 3, the smallest, is probably the most interest- ing of the new cars. It is a single-deck thirty-four- seat car, 33 ft. over all and 22 ft. over the body, with a wheelbase of 8 ft. 6 in. Entrance is at the rear, as usual, but exit is on the rear side via a front door which, by means of a wire attached to the door-control handle, is operated only by the motorman. The motorman is ready to open the door as soon as the pas- senger operates a bell-cord inside the car or on the front platform, the idea being to have an alighting passenger waste as little time as possible. This third type of car is also remark- able in British prac- tice for its absence of bulkheads and interior trim. At night the motorman draws a curtain be- hind him to prevent dazzle. The car seat- ing is longitudinal. The car may be operated temporarily as it may also be operated EXAMPLES OF FARE" TICKETS X5.| IJ II ' t; ° a. S g 3 3«i c 3S!> ill a i \%i B. E. T. "FAIR a one-man car, and it as a pay-as-you enter car. The type has proved so popular at Dudley that it is earning as much per car-mile as the double-deck cars on the same route. On more interesting point is that this type of car will soon be equipped with two GE-258 self- ventilated, ball-bearing motors, probably the first Brit- ish application of this well-known "safety-car" motor. Some Characteristic Operating Features The great range of size and tha large number of undertakings operated by the British Electric Traction Company do not permit many specific statements as to details of operation, but the following facts may be of some value: A fair average for the distance between stops would be 600 ft. In some of the smaller tovras a passenger will be picked up almost anywhere but set down only at certain specified places. In general, it is not held to be necessary to space the regular stops shorter than 600 ft., but nothing that could attract the short rider is overlooked. Most stops are now made on the near side. Even in the smaller communities, short headways prevail as compared with those for towns of similar size in the United States where the big two-man car is still in use. Ten to fifteen- minute intervals are characteristic only dur- ing the off hours, much better service being given at other times. It is noted that the daylight-saving plan was of marked benefit in improving the evening shop- ping and pleasure travel. A like result is expected from the shorter workday, although the morning peak will be sharper with the coming of later hours for workmen. Loading in queues is being used more and more in recent years. It may be explained that Britishers have long been accustomed to stand in line for the cheaper seats at theaters, and they got further training during the day of the food coupon. Hence they take quite readily to this means of loading cars decently B. E. T. FARTHING TICKET TO INCREASE TRAVEL July 26, 1919 Electric Railway Journal 157 and in order. Standing in cars was rare before the war, but the shortage of equipment and the need of saving fuel enlarged the number of straphangers, at least temporarily. The schedule speeds on the different B. E. T. proper- ties vary in accordance with the characteristics of the services anywhere from 7 to 15 m.p.h. The actual net car-miles per car-hour are shown in the accompany- ing table, which is representative of some of the small associated undertakings, to range from 5.18 to 8.55. It is rather interesting to observe that practically all the tramways operating in round-the-year communities average more than 40,000 miles per annum from their cars, two of them exceeding 50,000 miles. The traffic density per car-mile, even in the case of the smallest properties, is in excess of ten passengers, with a maxi- mum of 16.9 on a short road and 19.4 on a long one — fair evidence that the service is well patronized. Buses Pave the Way for the Tramway The varied scope of the British Electric Traction Company's activities in small towns and large lends special value to its opinion on the operation of buses as derived from experience under a diversity of cir- cumstances. The company looks upon the bus as an excellent forerunner and builder-up of a traffic which can be operated more economically with a tramway as soon as conditions warrant a car interval of ten minutes or less. The capital charges on a tramway are too high to justify construction for a less traffic density than this. With a bus it does not matter whether the service is half-hourly or hourly, because the capital expenditure is almost in direct proportion to the number of buses. The bus services of the British Electric Traction Company are largely of this intermediate nature. The fares charged are invariably higher than the tramway fares. When the buses happen to run over a car route for part of the way the minimum fare on the bus is placed at a figure which will reserve it for the suburban long-distance rider for whom it is intended. For any tramway a number of buses could be ac- quired as a wise way of determining the ultimate traf- fic possibilities of new districts and of supplementing pleasure-travel facilities, particularly as buses may be diverted at short notice to wherever a traffic need arises. Probably no one man has had a wider experience in the promotion, construc- tion and operation of British tramways and electric light and power installa- tions than Emile Garcke, presi- dent of the British Electrical Associa- tion and for many years the managing director and now the chairman of the British Electric Traction Company. The B. E. T., as it is popularly known, con- trols outright or is associated with about sixty tramway, electric supply and other electrical undertakings having a subscribed share and debenture capital of about £24,000,000. The associated tramway companies operate about 430 miles of route and carry about 405,000,000 passengers per annum. In the earliest days of electricity, Mr. Garcke was active in manu- facture and installation. Between 1883 and 1893 he was with the Brush Company. In 1893 he became managing director of the Electric Construction Corporation and shortly thereafter managing director of the British Elec- tric Traction Company. Aside from his company and asso- ciation activities, Mr. Garcke is known, wherever British money is invested in public utilities, through his great "Manual of Electric Undertakings," published annually since 1896. The Psychology of Claim Adjustments* The Author's Impressions of the Human Factor in Settling Claims With Suggestions on the Diagnosis of the Type of Case By J. H. Handlon Claim Agent, United Railroads of San Francisco EXPERIENCE plus intuition and a broad perspective are the prime requisites of the successful claim agent, as we all know, and no fixed rules can be set for our guidance, yet there are certain features of our work that deserve more than a passing thought, and perhaps a closer adherence to the policies I am about to outline may bring our work to a more successful issue. Speaking generally, claims may be divided into five classes: (1) the just claim; (2) the claim not based upon the facts; (3) the exaggerated claim; (4) the ex- orbitant claim; (5) the false claim. Of the first classification — the just claim — there is nothing to say other than to urge the prompt adjust- ment of this type of claim on an equitable basis. It is important, however, that the claimant should be im- pressed with the courteousness of the claim agent and the honesty of his motives in the hope that the settle- ment may convert an enemy or strengthen a friendship. The second classification — the claim not based upon the facts^ — is of greater moment. An effort should be made to ascertain whether the claimant is sincere in his belief that he has a just claim or whether he is endeavor- ing to bolster up his case for dishonest motives. Having determined that there is no apparent attempt to falsify, then the claim agent should endeavor to edu- cate the claimant to his viewpoint, if the claimant ap- pears to be a fair-minded individual, and by means of oral and written arguments or physical proof strive to convince him that his claim is lacking in merit. Should it be determined that the claimant is attempting to strengthen a claim that could not withstand a close and impartial scrutiny, then it is good policy not to attempt to prolong negotiations but to take a firm stand and defy the claimant to proceed in the matter. In both instances however, there should be borne in mind, as in all claims, the wisdom of litigating the case and the advisability of effecting an amicable adjustment at your own figure. Classification three — the exaggerated claim — should pass through the same formula as the preceding type of claim. Having determined whether the claimant is sincere in his belief that the claim is as serious as al- leged, then the way is clear to decide upon a future policy. Should the claimant apparently labor under a mistaken idea that the injury is more serious than could be reasonably anticipated, then the claim agent should fortify himself with facts and figures to prove the un- reasonableness of such an argument. Time solves many problems and is a great reconciler. Often it works to the advantage of a claim agent in convincing a stub- born claimant that his claim is of lesser importance than he thinks. A rigid investigation starting off with the assumption that the claimant is deliberately exaggerating the extent of his claim will often reveal an attempted deception and no reasonable expense should be spared in furthering such an investigation. 'Abstract of paper read at annual convention of Pacific Claim Agents' Association, Oakland, Cal., July 17, 1919. 158 ELECTRIC Railway Journal Vol. 54, No. 4 Classification four — the exorbitant claim — may not arise from any dishonest motive of the claimant but it may be his or her conception of the value of their claim. This viewpoint may be based upon the advice of attor- neys, relatives, friends or neighbors or preconceived ideas that they have nurtured in their minds brought about by newspaper accounts they have read of sums sued for or recovered as a result of litigation. Again, it is a peculiar trait of human nature for those who have adjusted their claims to exaggerate wil- fully and voluntarily the amount they have collected. Through such channels as stories bandied about, witti- cisms, stage jokes, etc., there has arisen a popular notion that a public service corporation is legitimate prey and that a claim against such a concern has a false and exaggerated value and is not subject to the same eco- nomic laws that control other claims. It is an axiom that the average attorney is not a suc- cessful claim agent for the reason that in analyzing or partitioning a claim, and more especially a personal in- jury claim, he places too much stress upon his interpre- tation of the law and not enough upon the general facts or the loss involved. What is more vital in coloring the average attorney's perspective is his tendency in ad- justing a claim before litigation has been suggested, to say to himself, "What would a jury give in this case?" This is a very expensive attitude of mind. Unfortunately, some claim agents have the same at- titude of mind. It is this trend of thought that creates a claim agent whose offers are like bids in an auction room where $50, $100 or $1,000, or some such amount is added, regardless of the merits of the claim, but solely in the hope of adjusting it. Such a claim agent makes it difficult for the more enlightened claim agent in the same community to settle claims on an equitable footing. In all sincerity, why should not a personal injury claim agent take the same attitude as the average, pru- dent business man, who, when endeavoring to dispose of a commercial transaction (and that is all a claim is when reduced to its last analysis notwithstanding the attempt often made by the claimant to collect punitive damages,) endeavors to reduce the cost of the trans- action to the lowest possible figure. The competent claim agent, always open to conviction, having determined what he considers just, strives to effect a settlement on that basis, yet he is not so parsi- monious as to refuse to allow a reasonable deviation from the offer he has determined upon. The human element is so important a factor in adjusting claims that it is very difficult to proportion the constituent features of a claim. A claimant may be inspired in presenting a claim by a mere desire to be remunerated for his losses; again he may be inspired by mercenary motives or a desire to be revenged for some fancied wrong he has harbored against the company. Some claimant's actions are prompted by a dislike, for corporations in general and the corporation involved in particular, while others are of a naturally combative disposition and they welcome an occasion when they can present a claim. The inter- vention of advisers encourages persons to be claimants and even the discourteous actions of the company em- ployees immediately after the accident may cause the slightly injured person to press his claim to the limit. In general, claimant's motives are so varied and their attitude cf mind may be so complex that it is very dif- ficult to determine at times the reason or reasons that have caused the claimant to be so aggressive or liti- gious. To illustrate — even the nationality or length of residence in the United States of the injured party may have a bearing upon his attitude of mind and some- times he is influenced by the treatment afforded corpo- rations in the state or community where he formerly re- sided or now resides. I think we will all concede that the small towm man has a more exalted opinion of his claim than the city man. _ . : ' " The last type of claim — the false claim — should be given no consideration other than to spare no effort or expense to expose its falsity and to fight to the limit any attempt successfully to litigate it. "Millions for defense but not one cent for tribute," were the words of an American ambassador on a momentous occasion. Let me take the liberty of stating that in my opinion these words may well be applied to the handling of -the false or fictitious claim, ever bearing in mind, as -Shake- speare says, "In cases of defense 'tis best to weigh the enemy more mighty than he seems." - - Confidence Should Be Cultivated" . " " -- Much has been said and written about the importance of influencing the attitude of mind of the claimant so that he is in a more receptive mood to negotiate a reasonable settlement. This is a vital factor in the suc- cessful handling of a claim. Specifically speaking, an effort should be made at the outset to establish con- fidence and the claimant should be impressed, if possible, with the claim agent's frank and friendly attitude. When electric railways were more or less of an in- novation (and it was about at that time that the claim agent first became a necessity, for, as a veteran street railway official has wittily reaiarked, "In the horse-car days all the injured person expected was an apology"), it seemed to be the practice of street railway manage- ments to appoint an ex-city detective or some other kind of an ex-peace officer as claim agent on the theory I suppose that his experience in detecting criminals better qualified him to detect attempted fraud on the part of claimants. As a natural sequence, claimants were often looked upon with grave suspicion by that type of claim agent. The fact that a claimant had filed a claim was sufficient evidence to prove him a suspicious character, and claim agents themselves not infrequently resorted to unscrupu- lous tactics to further their ends. The claim agent of today has inherited some of the prejudices against claim agents that have been created by such tactics, therefore we should strive in every way from the very inception of the claim, to overcome this prejudice. Even the reception room of the office should be made comfortable and attractive and the reception of the claimant should be courteous. Correspondence should be polite but firm in tone. In brief, everything should be done within reason to create the proper atmosphere or as harmonious an invironment as possible. Beneficial results can be accomplished by establishing a reputation in the community for* fair, square dealing, and it is our duty as conscientious, progressive claim agents to strive to elevate the moral standards of our vocation by discountenancing unscrupulous actions on the part of a co-worker, who, blind to the future, does today what tomorrow he will be ashamed of, and who will justifiably reap the unwelcome harvest of lack of confidence and distrust and suspicion that he has sown. July 26, 1919 Electric Railway Journal 159 Illinois Association Holds Summer Meeting Large Attendance and Animated Discussion Add to Interest of Papers on Track Maintenance, Publicity and Safety Cars THE summer meeting and outing of the Illinois Electric Railways Association were held on Wed- nesday, July 16. At the invitation of President W. C. Sparks, vice-president Rockford & Interurban Rail- way, the meeting was held at the Rockford Country Club. A feature which contributed to the congeniality of the occasion was the means by which some forty of the members reached the scene of activities. At the invi- tation of R. A. Moore, general manager Aurora, Plain- field & Joliet Railway, members from Chicago and Southern points met at Joliet the previous evening and had dinner at the Joliet Commercial Club. Afterward the party left Joliet on Mr. Moore's special car, the Louisiana, and traveling over the Aurora, Plainfield & Joliet, Aurora, Elgin & Chicago, Elgin & Belvidere and Rockford & Interurban rights-of-way, reached Rockford about 11 p. m. Refreshments were served on the car. Wednesday morning automobiles conveyed the mem- bers from the hotel to the Country Club, where a brief welcome by President Sparks was followed by the roll- call, reading of the minutes and treasurer's report. The latter showed the assets of the association on June 30 last to have been $1,290.16. The membership commit- tee presented the applications of nine new supply firms and these were accepted. Monolithic Construction Not Approved A paper on "Track Maintenance" was presented by John B. Tinnon, engineer maintenance-of-way Chicago & Joliet Electric Railway. An abstract of this paper will appear in a later issue. Deviating from his paper occasionally, Mr. Tinnon said that open-track maintenance is practically the same on interurban and steam railways, but these methods do not apply on paved city streets. He also referred to solid concrete (monolithic) construction as not reducing the mainte- nance to any extent and thought that it would be wiser to make a saving of, say, $5,000 per mile in the construction of the track and add this to the maintenance allowance which has always been inadequate. Mr. Tin- non stated that money has no doubt been wasted in the track department. The time has come now when more money and more work are going to be put into main- tenance to prolong the life of the track rather than to put down new track when the old track is apparently worn out. In the discussion which followed this paper, D. E. Parsons, general manager East St. Louis (111.) & Sub- urban Railway, said that when the city is to put dovm a new paving his company asks to be relieved from the assessment and does its own part of the paving at one-half the cost of the assessment. Mr. Parsons agreed that concrete construction is too expensive and ..not warranted. W. C. Sparks said that on his property a good subsoil is available and that he uses 100-lb. 6-in. A.R.A. rail on wood ties and brought to grade on 6 in. to 8 in. of crushed stone. The only concrete used is enough to carry the brick pavement, and this is a 1:9 or 1:10, mix which is just strong enough to maintain the sur- face of the brick. A IJ-in. sand cushion with an asphalt filler is used. C. J. Jones, superintendent of transportation Aurora, Elgin & Chicago Railroad, said that on his property 6 in. of ballast is used under the tie and concrete is filled in to within 6 in. of the top of the rail. A brick pavement is used on a 2-in. sand cushion. The rail is 100-lb. A.R.A. Mr. Jones said that proper drainage is a very important factor. To illustrate this he cited a case where in well-drained track 4-in. rail had been replaced by a 6-in. rail and the wood ties which had been in the track for twenty-five years were in such good condition that they were left intact. No concrete was used even to support the paving, and this is still in good condition. A 6-in. vitrified tile is laid with open joints under all new or rebuilt track, both open and paved construc- tion, on his property, said D. E. Parsons. With double track the tile is laid under the track, while with single- track it is laid at each side. The tile is connected with the sewers. W. C. Sparks suggested that the railway companies seek relief from the paving burden through the Ameri- can Electric Railway Association at the hearings being held in Washington. T. D. Smith, publicity agent Chi- cago & Interurban Traction Company, suggested that some propaganda be carried out through the Illinois Committee on Public Utility Information. In a discussion on the maintenance of railroad cross- ings, several members stated that manganese crossings had proved an absolute failure and that the most im- portant thing was good drainage and careful and con- stant inspection. J. B. Tinnon said that his policy was to dig a catch basin and lay lines of tile in cinders. These are covered by 2 ft. of rubble stone and then a crushed stone foundation for the track. Mr. Tinnon stated that it is poor drainage and not the speed of oper- ation of the steam trains which tears up the crossings. "Get the Advertising Habit," Said Mr. Mullaney That the best means of winning sound public opinion is by publicity through the home town paper was the basis of the address on "Public Utility Life Insurance," by Bernard J. Mullaney, director Illinois Committee on Public Utility Information, which will be abstracted in a later issue. In addition to the points covered in the paper, he said that public good will is the basis for increased revenues, which in turn is the basis of credit for obtain- ing additional capital. In speaking of the work of his committee Mr. Mullaney said that the work of sending out publicity material to every newspaper in the State had been going on since May. The committee has since June 7 had a check on about 250 papers, representing about one-third of the papers v^hich receive the material. These papers have published data helpful to the utility business in an amount which has amazed the commit- 160 Electric Railway Journal Vol. 54, No. 4 tee, which would have been satisfied to see one-third of it printed. The material is being accepted by the papers without question. There are also intangible benefits, for even if the material is not printed, if the editor reads it his edi- torials will reflect the result. In this work the co- operation of the railways in the field is needed. The case is analogous to a commercial enterprise, wherein the salesman is necessary to follow up the advertising. In the same way the railway managers must help sell the ideas to the local publishers, by getting on good terms with them. Mr. Mullaney also spoke of the work done by the publicity section of the committee of one hundred. One of the most important results to be obtained from the hearings he said is the news value to the local papers. The committee each day will send a digest of the testi- mony to every electric railway and it is up to the rail- way to see that the vital points find their way into the papers and to use them as publicity in other ways. In answer to a question, the speaker said that the conversion of an unfriendly newspaper must be handled as a personal matter. It is a question whether it is advisable to buy advertising space in an unfriendly paper with the idea of combating the influence of the editorial pages. D. E. Parsons said that his company uses advertising space in every newspaper in every city and county through which they operate and also makes news for these papers. Safety Cars Again Prove a Popular Subject for Discussion The third paper, "Safety Cars and the Results of Their Operation," was read by E. M. Walker, general manager Terre Haute Lines, Terre Haute, Indianapolis & Eastern Traction Company. As stated in the paper, operating figures were omitted because these were in- cluded in an article which was published in this paper June 28. The paper which appears elsewhere in this issue covers the general facts which are of interest to the financial man who is some day going to ask the backward operator why he was not advised of these possible economies. A lively rain of questions followed the paper. These were largely concerned with such matters as flagging at railroad crossings, the duties of the operator in col- lecting fares, issuing transfers, changing his trolley and fare box, etc. Mr. Walker stated that in Terre Haute the safety cars operate over five steam-railroad crossings. Two flagmen are employed at each of these, each working nine hours per day at a salary of $70 per month. He also said that there had not been a personal injury on the safety cars in Terre Haute since they were placed in service seven and one-half months ago. The schedule speed is 11 m.p.h. When the discussion turned to the collection of fares, Mr. Walker emphatically stated that he did not believe in a fare over 5 cents. In fact he believes in fares below 5 cents and thinks that with the safety car the short-haul rider can be carried for such a low fare. Association to Be Represented at Atlantic City Following the papers a telegram from John H. Par- dee, president American Electric Railway Association, was read urging attendance at the hearings before the federal commission at Washington and asking advice as to when the individual members would be present. It was also decided that R. V. Prather, secretary of the association, should be sent to the convention of the American Electric Railway Association as a representa- tive of the Illinois Association. A rising vote of thanks was given to President W. C. Sparks and to R. A. Moore for their contributions to the success of the meeting. Before adjournment, H. B. Adams, safety supervisor Aurora, Elgin & Chicago Railroad, urged attendance at the electric railway sessions of the National Safety Council which will be held at Cleveland, Ohio, Sept. 29 to Oct. 1, and D. E. Parsons made a plea for in- creased membership in the National Safety Council. The meeting then adjourned for luncheon, following which a golf tournament was held on the eighteen-hole MEMBERS OF THE ILLINOIS ELECTRIC RAILWAYS ASSOCIATION July 26, 1919 Electric Railway Journal 161 course. Those who did not care to play golf were taken in private automobiles for an inspection of Camp Grant. More than sixty members attended the session and the number would have been considerably greater had it not been for serious labor situations on several large properties. Safety Cars and the Results of Their Operation* Author Says Increase in Revenue Keeps Parallel With Increase in Service and that a New Model of Car Each Year Might Be Desirable By E. M. Walker General Manager Terra Haute Lines, Terre Haute, Indianapolis & Eastern Traction Company THE synonymous use of the expressions "one-man car" and "safety car" is a confusion of terms. In these days of peril to the electric railways, when every effort is being and should be made to furnish urban transportation of the highest class at a minimum of cost, it is necessary to be specific as to just what we mean when we say "safety car." The study of one-man car operation will reveal that such method of operation is by no means a new thing. It takes us back to the earliest days of any attempt at the transportation of passengers in cities. The car- rier's cart, the omnibus and all the other forerunners of the car which finally moved on tracks were managed and operated by one man. Even the first of such cars themselves, those drawn by horses and mules, were also of the one-man type. Electrification of street rail- ways may therefore be said to mark the need of two- man operation. Naturally, in order to get back to safe operation by one man, it was necessary to intro- duce every device possible to promote ease of manipu- lation for the operator and comfort and safety to the passenger. This brings us down to the so-called "safety car," . •Abstract of paper read at Rockford meeting of Illinois Electric Railways Association, July 16, 1919. When we speak of the safety car we refer to the specially designed, light-weight, single-truck car, equipped with light-weight motors and air compressors, with air-operated door and step, in which the safety of the passenger is always assured while the car is in motion, so far as it can possibly be assured. Of this type there are now either in actual daily operation or on order for early delivery, from 1200 to 1400 cars in about 100 representative American cities. The success of the safety car has been so marked wherever it has been tried that its sponsors and the operators who have had experience in its use are prac- tically unanimous in the belief that it is applicable to most of the needs of urban transportation, regardless of the size of the city and in spite of so-called local conditions, which, in most cases, are more apparent than real. To the question as to the size of the safety car, "more cars and oftener" is the answer, and the slogan "A car in sight all the time" is an easy one to live up to with safety cars on the tracks. In some of our cities it is not an uncommon sight to see large crowds collected on the street comers melt away under the incessant attack of the jitney bus, whose average seat- ing capacity is no more than five persons. And yet in these cities large street cars are being operated ten and fifteen minutes apart. Surely in a case like this "service" means the employment of a vehicle that will at least approach the frequency and speed of the jitney bus and that will exceed it in comfort and safety. The writer has been called an enthusiast on the safety car. In explaining this attitude at a recent meet- ing of electric railway men, he had occasion to say that he was strongly in favor of the safety car, because it provides safety for the passenger, safety for the operator, safety for the company adopting it and safety for the banker behind the company. Thirty safety cars of the standard Birney type were purchased by the Terre Haute division of the Terre Haute, Indianapolis & Eastern Traction Company in the latter half of 1918. They were purchased because IN ANNUAL CONVENTION AT ROCKFORD, ILL.. JULY 16. 1919 160 Electric Ra il wa y Journal Vol. 64, No. 4 tee, which would have been satisfied to see one-third of it printed. The material is being accepted by the papers without question. There are also intangible benefits, for even if the materia] is not printed, if the editor reads it his edi- torials wiU reflect the result. In this work the co- operation of the railways in the field is needed. The case is analogous to a commercial enterprise, wherem the salesman is necessary to follow up the advertising. In the same way the railway managers must help sell the ideas to the local publishers, by getting on good terms with them. Mr. Mullaney also spoke of the work done by the publicity section of the committee of one hundred. One of the most important results to be obtained from the hearings he said is the news value to the local papers. The committee each day will send a digest of the testi- mony to every electric railway and it is up to the rail- way to see that the vital points find their way into the papers and to use them as publicity in other ways. In answer to a question, the speaker said that the conversion of an unfriendly newspaper must be handled as a personal matter. It is a question whether it is advisable to buy advertising space in an unfriendly paper with the idea of combating the influence of the editorial pages. D. E. Parsons said that his company uses advertising space in every newspaper in every city and county through which they operate and also makes news for these papers. Safety Cars Again Prove a Popular Subject for Discussion The third paper, "Safety Cars and the Results of Their Operation," was read by E. M. Walker, general manager Terre Haute Lines, Terre Haute, Indianapolis & Eastern Traction Company. As stated in the paper, operating figures were omitted because these were in- cluded in an article which was published in this paper June 28. The paper which appears elsewhere in this issue covers the general facts which are of interest to the financial man who is some day going to ask the backward operator why he was not advised of these possible economies. A lively rain of questions followed the paper. These were largely concerned with such matters as flagging at railroad crossings, the duties of the operator in col- lecting fares, issuing transfers, changing his trolley and fare box. etc. Mr. Walker stated that in Terre Haute the safety cars operate over five steam-railroad crossings. Two flagmen are employed at each of these, each working nine hours per day at a salary of $70 per month. He also said that there had not been a personal injury on the safety cars in Terre Haute since they were placed in service seven and one-half months ago. The schedule speed is 11 m.pJi. When the discussion turned to the collection of fares, Mr. Walker emphatically stated that he did not believe in a fare over 5 cents. In fact he believes in fares below 5 cents and thinks that with the safety car the short-haul rider can be carried for such a low fare. Association to Be Represented at Atlantic City Following the papers a telegram from John H. Par- dee, president American Electric Railway Association, was read urging attendance at the hearings before the federal commission at Washington and asking advice as to when the individual members would be present. It was also decided that R. V. Prather, secretary of the association, should be sent to the convention of the American Electric Railway Association as a representa- tive of the Illinois Association. A rising vote of thanks was given to President \V. C. Sparks and to R. A. Moore for their contributions to the success of the meeting. Before adjournment, H. B. Adams, safety supervisor Aurora, Elgin & Chicago Railroad, urged attendance at the electric railway sessions of the National Safety Council which will be held at Cleveland, Ohio, Sept. 29 to Oct. 1, and D. E. Parsons made a plea for in- creased membership in the National Safety Council. The meeting then adjourned for luncheon, following which a golf tournament was held on the eighteen-hole July 26, 1919 Electric Railway Journal 161 course. Those who did not care to play golf were taken in private automobiles for an inspection of Camp Grant. More than sixty members attended the session and the number would have been considerably greater had it not been for serious labor situations on several large properties. Safety Cars and the Results of Their Operation* Author Says Increase in Revenue Keeps Parallel With Increase in Service and that a New Model of Car Each Year Might Be Desirable By E. M. Walker General Manager Terre Haute Lines, Terre Haute, IndinnaDolfs & Eastern Traction Company THE synonymous use of the expressions "one-man car" and "safety car" is a confusion of terms. In these days of peril to the electric railways, when every effort is being and should be made to furnish urban transportation of the highest class at a minimum of cost, it is necessary to be specific as to just what we mean when we say "safety car." The study of one-man car operation will reveal that such method of operation is by no means a new thing. It takes us back to the earliest days of any attempt at the transportation of passengers in cities. The car- rier's cart, the omnibus and all the other forerunners of the car which finally moved on tracks were managed and operated by one man. Even the first of such cars themselves, those drawn by horses and mules, were also of the one-man type. Electrification of street rail- ways may therefore be said to mark the need of two- man operation. Naturally, in order to get back to safe operation by one man, it was necessary to intro- duce every device possible to promote ease of manipu- lation for the operator and comfort and safety to the passenger. This brings us down to the so-called "safety car.". When we speak of the safety car we refer to the specially designed, light-weight, single-truck car equipped with light-weight motors and air compressors', with air-operated door and step, in which the safety of the passenger is always assured while the car is in motion, so far as it can possibly be assured. Of this type there are now either in actual daily operation or on order for early delivery, from 1200 to 1400 cars in about 100 representative American cities. The success of the safety car has been so marked wherever it has been tried that its sponsors and the operators who have had experience in its use are prac- tically unanimous in the belief that it is applicable to most of the needs of urban transportation, regardless of the size of the city and in spite of so-called local conditions, which, in most cases, are more apparent than real. To the question as to the size of the safety car, "more cars and oftenei-" is the answer, and the slogan "A car in sight all the time" ia an easy one to live up to with safety cars on the tracks. In some of our cities it is not an uncommon sight to see large crowds collected on the street comers melt away under the incessant attack of the jitney bus, whose average seat- ing capacity is no more than five persons. And yet in these cities large street cars are being operated ten and fifteen minutes apart. Surely in a case like this "service" means the employment of a vehicle that will at least approach the frequency and speed of the jitney bus and that will exceed it in comfort and safety. The writer has been called an enthusiast on the safety car. In explaining this attitude at a recent meet- ing of electric railway men, he had occasion to say that he was strongly in favor of the safety car, because it provides safety for the passenger, safety for the operator, safety for the company adopting it and safety for the banker behind the company. Thirty safety cars of the standard Eirney type were purchased by the Terre Haute division of the Terre Haute, Indianapolis & Eastern Traction Company in the latter half of 1918. They were purchased because 162 Electric Railway Journal Vol. 54, No. 4 something had to be done radically to improve the city street car service and to enable the company to continue to carry people at a 5-cent fare. Had not this been done we could visualize the jitney buses running away with the best part of our business, and we could see ourselves losing the good will of the people by our failure to serve them adequately. On Dec. 1, 1918, we placed eight of these cars in operation on one of our city lines, and gradually and promptly increased the number, so that now we are operating twenty-six cars regularly every day out of a total of thirty owned. We expect to make sufficient increase in our equipment to provide full safety-car service on our entire city system. That we do this is the expressed wish of the city government and of the people whom we serve. So much for the salability of the safety car to the people. By means of the safety car we have stemmed the jit- ney tide. We have recovered that portion of our bus- iness which we have temporarily lost to this generally reckless competitor, and we have recovered the good will of the people. By means of the safety car we have transformed a thirty-car system into a forty-two car system, and we plan eventually to make it a forty- eight-car .system, with no increase in city trackage. Also we have been enabled with the light-weight safety car to deliver to the riding public 28 per cent more car-miles than last year during the corresponding seven- month period, with a 3 per cent reduction in power used. And this saving in power would be much more impressive on paper but for the local operating con- ditions, which include 143 interurban passenger trains in and out each day and sixteen interurban freight trains in and out; each one of these using city power for an average of four miles on each round trip. Some Important By-Products of THE Safety Car A general description of the operation of safety cars in Terra Haute appeared in the Electric Railway Journal of June 28, 1919, and it is not the intention or desire to repeat here what has been covered in that article. There are, however, by-products of safety-car operation which were not given more than passing men- tion in the article. For example, accidents are often caused because passengers, alighting from the rear end of a city car of conventional type and crossing the street over double track, step behind the car from which they have just alighted. On an average of two or three times a year in a city the size of ours it has happened that a car going in the opposite direction at the time has caused a serious accident from this cause. Such accidents have now been entirely eliminated; in fact, personal injuries on cars have become practically a thing of the past. Our experience in the last seven and a half months of operation of safety cars has shown us that the theoretical saving in the cost of accident on or by safety cars as compared with the ordinary type of car, on the basis of operating regularly twenty-five cars, has been at the rate of 8.6 per cent per annum on the total investment cost of thirty cars ovsmed by the company. Another by-product of safety car operation is the absence of complaints of discourtesy and inattention on the part of the car operators. We borrowed a leaf out of the book of a progressive psychologist and placed in each car a card bearing the operator's name. This personal touch is appreciated by operator and passenger equally, and operators are seldom referred to by number. Earning possibilities depend very much upon local conditions, and it does not necessarily follow that a certain rate of revenue per car-mile obtained in Spring- field would follow with safety cars or any other type of cars in Columbus. With us, however, revenue has gone up practically parallel with the increase in serv- ice. Safety-car operation is so flexible that it is pos- sible by adding service gradually to find the point of service saturation. Safety Cars That Are Well Maintained Will Prove Durable By way of summary it may be said that light weight promotes speedy and frequent service, and therefore weight need not and should not be allowed to inter- fere with quick service beyond the point where weight coordinates with safety. We are in the business to serve the public, and we must serve them with speed, safety and economy. When we do this we need not fear that the public will stint their rewards in increased patronage ; the public are quickly responsive and human nature does not greatly vary with localities. The cost of carrying a superfluous ton of car weight for an entire year would have paid at least 3 per cent on the cost of the car. A light-weight safety car properly cared for will last as long as many heavier types of cars, just as a Ford with proper care will last as long as a Packard. I look forward confidently to the time when stand- ardization of the safety car will provide for a new model each year. This will promote minimum cost of pro- duction. Thus at a fixed time each year the next year's model will be decided upon, and from that time until the next year changes in detail will be held for incor- poration in the next year's model. Thus each well- ordered company may adapt itself to the habit of pur- chasing each year a few of the new models, the replace- ments being designed to take care of retirements and the natural growth of the property. In this way the rolling stock may be kept always up to date and in good style. These are the things that appeal to the public. Let us take it for granted that city street car trans- portation service is a public necessity and will remain so until its place is taken by some agency not now in sight. In this field the safety car will gradually force its way forward as the best means, in a large majority of cases, of filling the needs of the people for this class of public service. Belgian Electrification Plans The United States consul-general at Brussels, Hon. Henry H. Morgan, reports to the Department of Com- merce that the Belgian minister of railways has ap- proved a project for the electrification of Belgian rail- ways and that instructions have been issued to the railway administration to submit plans by August of this year for the electrification of the line between Brussels and Antwerp and Brussels and Luxemburg, to be followed immediately with an electric line between Brussels and Ostend. Construction is to begin early in 1920. It is proposed to make the Brussels-Antwerp trip in twenty-five minutes and to run trains every fifteen minutes. July 26, 1919 Electric Railway Journal 163 Washington Hearings Continue A Wealth of Evidence On the Railway Status Is Presented to the Federal Electric Railway Commis- sion by the Committee of One Hundred — This Week the Commission Began Evening Sessions — This Report Covers the Hearings from July 17 to Noon of July 23 C(>li:,i-i,ih1 1,1/ II, CHAIRMAN HEARINGS before the Federal Electric Railway Commission still continue to occupy a most im- portant place in the minds of railway op- erators and others interested in the wel- fare of the electric railway industry. Our last week's issue contained an ac- count of the proceedings up to Wednes- day evening, together with a telegraphic summary of those of Thursday. Some further particulars of the Thursday sessions, together with the proceedings of the subsequent sessions up to the press date for this week, are contained in this issue. The Association hoped to complete the presentation of its case on Friday of. this week and in an attempt to achieve this aim night sessions have been held. The order of presentation of the testimony does not follow the plan originally outlined by the Association and pub- lished on page 80 of our issue for July 12, as it has been necessary to conform to a certain extent to the conveniences of the witnesses. In this report it has seemed best to follow the testimony in the order in which it was given. Thursday's Sessions Further testimony from W. J. Clark of the General Electric Company relative to the early history of the electric railways was made the first order of business in the Thursday morning session. In his direct testi- mony Mr. Clark gave comparisons of conditions as they exist on American and European electric railways. He pointed out that foreign street car lines have been built only where they were sure to pay a reasonable revenue and that suburban extensions designed to promote the expansion of municipal districts were not given con- sideration in the construction of these railways to the same extent as in America. In this connection the point was made that a large part of the expansion of Ameri- can cities has been at the expense of the investor in electric railway securities rather than at the expense of the public. In response to a request from the com- mission Mr. Clark discussed at some length the methods of securing franchises used by the early promoters of electric railways. Continuing his direct testimony, Mr. Clark showed that the rapid progress in the industry had resulted in a short effective life for electric railway equipment. He also made the point that the early experimental work was done at the expense of the electric railways and that this constitutes a part of the just investment in all of the older electric railway properties. In the course of the cross-examination the commission asked a number of questions relative to zone fare sys- tems, water-power development, cost-of-service plans, methods of regulation, and the prejudices which the public at present entertain against the electric railway companies. Mr. Clark felt that the zone- fare system deserves consideration, and, in response to a question from the com- mission as to whether zone fares had not caused congestion in Glasgow, re- plied that in Glasgow congestion existed long before the tramways were built. In the matter of water-power develop- ment as a source of power supply for electric railways, Mr. Clark pointed out that as a rule one horsepower of water power as estimated by the United States Geological Survey may actually yield from 3 hp. to 5 hp. through effective stream control and efficient plant operation. Regarding the matter of regulation he said that local authorities cannot properly regulate utilities to-day because so many of the utilities supply service outside of city limits. For the same reason municipal ownership is practically a dead issue. Regulation by state au- thorities is likely to produce better results and pre- vent a recurrence of something similar to the franchise bargaining which existed in some municipalities in the earlier days. The causes of the existing prejudice Mr. Clark listed as follows: Certain acts of the promoters of the railways; excessive exaggeration concerning the effect of these acts, and that the street railway is the one form of utility with which the average citizen is in daily contact with the employees of the utility. As to the cost-of-service plan, Mr. Clark agreed with General Tripp that it is an equitable system for gov- erning charges for street railway service. He further said that the proper basis for revenue under such a plan is a valuation of the property, preferably by a state authority. Also, the operation of a cost-of-service plan should be safeguarded by a state regulative body. In the matter of rates proper attention must be given to those who ride for convenience rather than necessity, as the necessity rider has never paid any street railway dividends. Dean Cooley Talks on Costs After the completion of Mr. Clark's testimony, Morti- mer E. Cooley, Dean of the College of Engineering, University of Michigan, appeared before the commis- sion to testify as to the elements which enter into the first cost of an electric railway. Dean Cooley, long well known as one of the foremost experts in the coun- try on the matter of public utility valuation, kept the interest of his hearers at a high pitch while he discussed in a clear and lucid manner the financial troubles which beset the promotion of a public utility project. He told the commission that he had valued public utility property with an aggregate physical value ranging somewhere between $1,250,000,000 and $1,500,000,000. He stated that one of the principal troubles in valuation work is the sheer ignorance of both the public and the railways themselves relative to the fundamental facts about valu- 164 Electric Railway Journal Vol. 54, No. 4 ing property for rate-making purposes. He also said that education was the thing most needed, as the present attitude of the public mind is such that the public cannot be approached and is not willing to meet the companies half way. Dean Cooley discussed the elements which enter into the cost of a property substantially as follows: The principles involved in the valuation of public utilities are the same, no matter what type of utility is involved. In all, there are from eighteen to twenty cost factors involved in the total investment cost of such an under- taking. In the promotion of a new utility the first thing to be done is to determine the feasibility of the project. This includes a preliminary determination of the in- vestment, public sentiment toward the undertaking, and franchise conditions. If from the promoter's stand- point the project is feasible, the next step involves the employment of a staff of engineers, who also go over the project and report as to its engineering practicability. If O. D. YOUNG AND RANDALL MORGAN DISCUSSING THE MONDAY MORNING SESSION WITH COMMISSIONER GADSDEN* the engineers' report justifies of the undertaking, the next step is to secure financial assistance from bankers. This preliminary work all costs money, the amount rang- ing from 2 to 5 per cent of the total investment in the property. An important point relative to these costs is the fact that the public is not familiar with them, very few laymen knowing anything at all about their existence. In case the project seems feasible to the bankers, it is put upon a working basis, a construction organization is gathered together, ground is broken, and the public first takes notice of the undertaking. "Hidden" Costs Are Elusive But Important While the public thinks that cost begins only with the actual beginning of construction work it fails to take into account many of the costs which actually occur during the construction period. The time involved in constructing an undertaking will vary from one to four years, depending upon the type and magnitude of the physical structure. The company can build its own structures, or it can have them built under contract. In either event due allowance must be made for con- tingencies. Formerly it was the custom to allow 10 per cent of the estimated cost for this item. In many cases this amount is too small, and in some few cases *This and the following photographs are by Harris & Ewing, Washington, D. C. the contingency costs have been four times the initial estimated cost. In the ordinary range of public utility undertakings they will range from 5 to 30 per cent of the total investment cost. Other cost elements which are not commonly given just consideration by the public are the items of accident insurance, fire insurance, interest on capital during the period of construction and taxes on materials and land during the construction. These items in the aggregate may amount to a very considerable sum of money. Among the other what might be termed "hidden" costs which enter into the total investment of a public utility undertaking, but about which the general public is decidedly ignorant, are the promoter's profit, the cost of securing money and the working capital necessary during operations. The promoter's profit is necessary, although to quote Dean Cooley's exact words, "The pro- moter is a stench in the nostrils of the public." Never- theless, the promoter is a very necessary factor in the organization of any new undertaking, and if the parties organizing the undertaking do not themselves act as promoters it will be necessary for them to employ a promoter and to pay him a real salary for his work. Money, Like Steel Rails, Must be Purchased The cost of money is likewise a very real and very necessary cost, as money must be purchased in the market like any other commodity. This cost is usually included in the discount taken by bankers for selling the bonds or other securities. One of its most important elements is the expense incurred by the financial institu- tions in investigating the stability and general financial conditions of the undertaking. Working capital may be defined as the money that lies idle in the bank subject to check. If a company is not permitted interest on this money, interest never- theless will have to be paid and will be borne by the public in the end in the form of increased rates. With the construction work all complete and working capital in the bank, a company is ready for operation. Its physical equipment may be said to be in 100 per cent condition, although its actual value, as long as it lies idle, is its value as determined by the junkman. Questioned by the commission relative to the matter of giving stock to bond purchasers, Dean Cooley said that this stock, despite its being a gift, had a real value. Were it not for the gift of the stock the bonds would sell at a lower price. The difference between this lower price and the actual selling price of the bonds represents the real value of this stock. In response to a question from the counsel for the association, Dean Cooley said that the items indicated above may range from 10 to 12 per cent of the total investment on small properties, while on a certain prop- erty with which he was familiar, located in New York City, the amount was 60 per cent. The average figures will range from 18 to 30 per cent. With the completion of Dean Cooley's direct testi- mony, the hearing adjourned for the noon recess. At the beginning of the afternoon session Counsel Warren read into the record a telegram from the San Diego (Cal.) Electric Railway Company in which was set forth the serious financial condition of this com- pany owing to the high cost of labor and other costs that are affecting all other railways. Dean Cooley again resumed the chair, and was questioned at length by the commission relative to obsolescence, depreciation, methods of valuation, need of increased fares, municipal July 26, 1919 Electric Railway Journal 165 ownership, paving and franchise taxes, and the service- at-cost plan. The substance of Dean Cooley's replies to these questions is given in the following paragraphs: Depreciation is possibly as little understood as any other thing connected with a utility property. Some elements of the property have a long life, others a short one. A steam engine may have a life up to thirty years, while the life of a tie ranges from six to eight years. After say fifteen years, part of a property is new, part of it worn out, the balance only partially worn out. If a property is properly maintained, it will last an indefinite length of time. The depreciation is con- stant after it has gone through the cycle of the longest- lived material in the physical structure of a property. Under these conditions the condition of the property will be from 85 to 90 per cent instead of the 100 per cent condition which obtains when the property is new. This condition cannot be bettered, because if attempts be made to do so some good material will be thrown away. The condition cannot be lowered without endangering operation. For rate-making purposes 100 per cent condition should be used, however, instead of the 85 or 90 per cent condition, inasmuch as the 100 per cent con- dition more nearly indicates the actual cost. The differ- ence between the 85 per cent condition and the 100 per cent condition must be taken care of by a depre- ciation fund. A second kind of depreciation fund is necessary to take care of renewals, as money must be put aside to do this renewal work each year. Both of these funds must be paid out of earnings. They amount to from IJ to 2 per cent of the investment, and it is a religious duty to see that they are kept intact. The methods of property valuation as used as a basis for rate making may be classified as historical, book, reproduction new, and reproduction new less deprecia- tion. The latter is sometimes called the present value. Inasmuch as the past history of most public utilities is very vague and incomplete, the only fair and practical method of determining the value of a property is by the cost of reproduction methods. Obsolescence in the electric railway and electric power utilities is a far more important item than it is in some of the other utilities, as for instance the gas utility. In many instances it has been necessary to throw away rolling stock and power generation apparatus which, while in good physical condition, has become obsolete by reason of invention or the development of newer, more convenient or more efficient equipment. Because of this obsolescence the investment in railway properties has been much greater than it otherwise would need have been. M. 0. A Great Educator Practice in regard to cost of establishing a business is undergoing radical changes in the matter of account- ing. No new property makes a return on the investment in the earlier years of its life. It takes time to build the business up to a revenue earning basis. Formerly this cost of establishing the business was considered a capital charge. The present trend as set by public regulative bodies is to consider it as an operating charge and to amortize it over a number of years. In some cases the operating charge from this cause alone amounts to from 25 to 30 per cent of the cost of the property. Maintenance costs have advanced to about 50 per cent more than they were in pre-war days. Labor cost has practically doubled. The result is that to secure any- thing like pre-war net earnings the gross earnings today must be more than 50 per cent higher than they were before the war. This means that fares must be raised at least 50 per cent. With further reference to this point Dean Cooley said: "I firmly believe that public utilities should be allowed to earn only enough to induce capital to come in, to serve the public and satisfy in- vestors, and, being public utilities, should not be per- mitted to earn more. I recommend that the street railways be given the right to charge fares that will permit them to meet their operating expenses, so that they can keep up their service and maintain their proper- ties intact." Asked by the commission as to his opinion of muni- cipal ownership, Dean Cooley said that he advocated municipal ownership and that theoretically it is better in every way than any other form of management and operation. He added, however, that it is a fruitless prospect when taken from a practical point of view. THESE THREE MEN HAVE BEEN REGULAR IN THEIR AT- TENDANCE AT THE HEARINGS : GEORGE WESTON, EDWIN GRUHL AND HARLOW C. CLARK Asked why he advocated it. Dean Cooley replied that he thought it the best and quickest way to convince the public that it is not desirable. "It would be a case of giving candy to a person who wants it until it gives that person the stomach-ache," he said. Higher Fares Increase Earnings in Pittsburgh William D. George, one of the receivers of the Pitts- burgh Railways Company, was the next witness. Mr. George said that he had been connected with the railway industry only since his appointment as a receiver last December and that before his appointment he had been engaged in the real estate business in Pittsburgh. In his direct testimony Mr. George stated that the 5-cent-7-cent zone fare system inaugurated last summer increased the gross revenue about 15 per cent over that received from the old 5-cent flat fare. During the first five months of its operation the average fare for the zone system was 6.23 cents. It is now 6.29 cents. The increase indicates a greater riding in the outer zone. The Pittsburgh Railways Company has asked for an increase to a straight 10-cent fare to be- come eft'ective August 1, because its present income is still insufficient. A ticket arrangement in connection with this 10-cent fare involves the sale of four tickets for 80 cents and eight tickets for 60 cents. The Pittsburgh Railways Company is a combination 166 Electric Railway Journal Vol. 54, No. 4 of about sixty underlying companies and operates ap- proximately 600 miles of track. To give proper service it should build 26 miles of new track each year. The company is at present in default of fixed charges amounting to betvi^een $2,500,000 and $3,000,000. At present franchise taxes, bridge tolls, street cleaning and other special city taxes amount to about $300,000 per annum. The receivers are endeavoring to secure the remission of these taxes. The street cleaning tax amounts to $80,000 per year and the bridge tolls, $125,000 per year. Regarding the labor situation in Pittsburgh, Mr. George stated that the train men vi^ant a raise from 48 cents to 60 cents maximum wage, but that the War Labor Board has not as yet handed down a decision. If this increase be granted and the wages of other em- ployees raised correspondingly, additional income to the amount of $2,000,000 per year will be necessary. In his cross-examination by the commission Mr. George was asked a number of questions relative to the efficiency of present operating methods, the cost-of-serv- ice plan, state regulation versus city regulation, and public interest in the industry. In replying to these questions Mr. George stated that he had entered upon the receivership in a critical mood, feeling that the railways were being mismanaged. His six months' ex- perience has convinced him that this was not true. The Public Service Commission of the State of Penn- sylvania is making a valuation of the Pittsburgh Rail- ways properties at present. This valuation is to be used as a basis for a service-at-cost plan. Mr. George said that he believed state regulation of utilities is best, stating that there are eighty boroughs or civil units in the Pittsburgh vincinity served by the Pittsburgh Railways, and that this fact alone would make local regulation a practical impossibility. Mr. George went on record as strongly opposed to the zone fare system. Speaking as a practical real estate man, he said that no city, from the standpoint of public interest, could afford to see a zone fare system built up within its limits. He estimated that the value of the 30-ft. lot within a 5-cent zone system would be fully $1,000 greater than the value of a similar lot out- side the 5-cent zone. He stated that in his opinion zone fares caused undue congestion and cited the conges- ted housing districts in the city of Glasgow as an example of the effect of the zone system. Relative to the abandonment of outlying lines, Mr. George said, that in the expansion of a city these lines are needed and that he would far rather increase the fare than decrease the service which is the lifeblood of a community. He stated that in his opinion the theory of increased fares cutting down service is a fallacy. In the long run the people will respond and while at first the riding may decrease, the decrease is only a temporary one. Further questioning by the commission relative to regulation brought from Counsel Warren the statement that he was authorized to say that the American Electric Railway Association was in favor of regulation and of the extension of the principle of regulation to all those states in which it does not now exist. Friday's Sessions In a carefully prepared statement F. H. Sisson, vice- president of the Guaranty Trust Company, New York, presented to the commission a very clear view of the present condition of street railway credit and of the present cost of capital during the forenoon session on Friday. An abstract of Mr. Sisson's statement is reproduced elsewhere in this issue. In his direct testimony Mr. Sisson further stated that electric railway securities were more widely distributed than any other class of securities and that their failure would cause widespread ruin. He stated that there was no doubt in his mind but that higher fares would give a higher return and that the zone system would bring back the short haul passenger. In some of our large cities. New York, for instance, one can ride 30 miles for a nickel. However, when a passenger rides from Yonkers to Coney Island the ride is made at the expense of the investors in the railway property. Collection difficulties constitute a real argument against zone fares, and the authorization of 74-cent and other inter- mediate coins might be of considerable value. The 5-cent fare never did cover obsolescence and depreciation and never would have been adequate if proper charges for other items had been made the earlier years of the electric railway industry. State Commission Helps Portland Testifying as to the effects of increased fares on the property with which be is connected, A. H. Ford, vice- president and general manager of the Cumberland County Power & Light Company, Portland, Me., said that the results had been very satisfactory. Originally this property was operated on the old New England 5-cent fare zone method. These zones ranged from three to four miles in width. The first change in fares was made in August, 1918, when the flat 5-cent fare was changed to a flat 6-cent fare, except on three of the more important city lines of Portland where the 5-cent fare was retained. This change was accompanied by a great deal of opposition on the part of the public. The theoretical increase in gross earnings was about 18 per cent, but the actual increase was only about 4 per cent. In June, 1919, the fare was increased and a system of fare zones about one mile in width was es- tablished. There are three zones within the city proper and the minimum fare for a ride is 7 cents. The fare per zone is 2i cents, making a ride through four zones cost 9 J cents. To facilitate fare collection tickets are sold on the basis of a five-ride ticket for 35 cents and fifteen zone tickets for 35 cents. About 95 per cent of the fares are ticket fares. For the first half of July of this year the gross earnings were 37 per cent greater than those of a year ago, whereas the theoretical in- crease on the basis of the increase in fares was 40 per cent. Of particular interest in connection with this testi- mony was Mr. Ford's story of the co-operation of the Public Utilities Commission of Maine. When the 6-cent fare did not give sufficient revenue to place the property on a stable basis, the commission set about educating the public with respect to the difficulties of the traction company. It held a dinner at Portland to which it invited the members of the local chamber of commerce. With the business men of the city there assembled, the commission discussed the financial conditions of the com- pany and the conditions which had led up to it. Later it follov\«ed this with a meeting of the newspaper men whom the commission asked to help in the matter of properly educating the public with respect to the local street railway situation. These efforts of the commis- sion caused such a change in the public sentiment that whereas the increase from a 5-cent to a 6-cent fare July 26, 1919 Electric Railway Journal 167 aroused a great deal of opposition there was practically no opposition whatever when the increase to the 7-cent fare was made. Mr. Ford said that the commission had helped other Maine railways in very much the same manner, assisting them to get notable increases in fares which have given commensurate increases in gross earnings. The educational work of the commission was followed up by the company, which discussed the situation freely with its employees, and held a series of public meetings. Mr. Ford expressed the opinion that whereas the traffic may diminish at first upon an increase in fares in time the traffic will return to normal. He also said that the zone system is the fairest method of charging for service because the people pay in proportion to the service which they get. On this particular property the ratio of securities outstanding to the physical value of the property is as 100 to 132. With the present re- turn a 5 per cent dividend on the stock and the bond obligations of the company can easily be carried. Increased Fares Successful on American Railways Increased fares and their effect on riding habit and gross earnings was also discussed by C. L. S. Tingley, vice-president of the American Railways Com- pany,. Philadelphia, Pa. Mr. Tingley stated that his company had increased rates on practically all of its properties and that the result of a fare increase depends on industrial conditions. In Scranton, the effect of a 20 per cent increase in fare was to yield between 12 and 13 per cent actual increase in gross revenue. The history of the fare situation in Scranton has been a rather checkered one during the last two years. The present fare is 7 cents with a ticket arrangement of four tickets for a quarter. More passengers were carried on this fare basis in June and July of this year than with the 5-cent fare of last year. On the Wilmington & Philadelphia line the intense in- dustrial activity has had such an effect on the traffic that theoretical fare increases have been practically realized. In June, 1918, an increase from 5 cents to 6 cents resulted in a 20 per cent increase in gross earnings. At present the gross earnings are running about 7 per cent more than they were with the same fare last year. On this line the old-fashioned zone arrangement of zones 3 or 4 miles in length prevails. On the Altoona property of this company the first change in fares was made in April, 1917, when the 4-cent tickets for a 5-cent ride were dispensed with. In April, 1918, the fare was increased from 5 cents to 6 cents. The gross earnings now average from 30 to 35 per cent greater than before the original increase. Questioned by the commission as to whether his com- pany was employing one-man or safety cars on its smaller properties, Mr. Tingley said that it was not. They had not felt justified in scrapping present equip- ment and did not feel that one-man operation was safe enough on account of the heavy grades existing on a number of th2ir Pennsylvania properties. The commission asked Mr. Tingley a number of ques- tions relative to methods of regulation and fare adjust- ment. His main objection to state regulation was that it takes a great deal of time to get changes made. In his opinion the cost-of-service plan as at present ad- ministered in several of our large cities does not give the company sufficient return on its investment. In conclusion Mr. Tingley said that while increase in fare may decrease the traffic in some instances, it offers the only possibility for the immediate rejuvenation of rail- way Credit. Several witnesses representing manufacturers of elec- tric railway supplies fallowed Mr. Tingley. The first of these, J. G. Barry, sales manager of the railway de- partment. General Electric Company, presented a series of charts and tables showing the increases in electric equipment costs. As presented the charts and tables showed the changes within the period beginning 1914 and ending 1919. The charts showed that there had been a slight decrease in the cost of electric railway equip- ment since the beginning of the current year. This de- crease was caused mainly by the considerable decrease in the cost of copper which occurred about the first of the year. Owing to the fact that copper has again made a very considerable increase in price, higher prices may be expected in the near future. Abstracts from the tables are shown herewith. COSTS OF ELECTRICAL, EQUIPMENT , ^Cost , Year 1914 1918 1919 Car equipment : Four 25-hp. motors, type K control. . . . $1,450 $2,900 $2825 Per cent 100 200 195 Locomotive, 50 tons $13,700 $27,500 $27,000 Per cent 100 201 197 Rotary converter, 300-kw $2,350 $4,225 $4,225 Per cent 100 179 179 Steam turbo-generator, 1000-kw $12,700 $24,000 $23,000 Per cent 100 189 181 COMPARATIVE COST RATIOS FOR RAILWAY SUPPLY PARTS Year 1914 1918 Gears and pinions 100 227 Malleable iron (overhead line material) 100 350 Transformers 100 178 Switchboards 100 182 Average for all supply parts 100 204 Questioned by the commission as to the electric rail- way supply business of this company, Mr. Barry said that in normal years his company sold about $20,000,000 worth of equipment. This dropped during the year 1917-1918 to $9,000,000, of which a considerable portion was financed by the Emergency Fleet Corporation. The volume of railway business at present is about 25 per cent of normal, while the general business of the com- pany has been about normal for several months. He further stated that electric railway credit is very poor, and that the companies would buy if they were able to finance their purchases. The bulk of the busi- ness at present is due to the installation of one-man cars on a number of properties. This equipment is sold on a credit basis, 25 per cent cash and 75 per cent in car trust certificates maturing in from one to thirty- six months. M. B. Lambert, assistant manager of the railway department, Westinghouse Electric & Manufac- turing Co., followed Mr. Barry on the stand. He read a prepared statement showing the increases in cost of equipment as well as the increase in cost of the raw material from which this equipment is made. His cost increases were very similar to those testified to by Mr. Barry. The material cost increases, expressed in per cent, are shown in the accompanying table. INCREASE IN COST OF RAW MATERIALS IN PER CENT OF COST IN 1914 Item Per Cent Item Per Cent Pig iron 106 Coke 35 Steel plates 141 Mica 100 Copper 58 Asbestos 560 Steel castings 220 Other insulation 125 Spelter 30 Sheet steel 180 How the war has affected the cost of cars was discuss- ed at length in a written statement by W. H. Heulings, 168 Electric Railway Journal Vol. 54, No. 4 Jr., vice-president J. G. Brill Company. Mr. Heulings stated that the elements of cost which enter into cost of car equipment for a given road are character of car, whether wood or steel, replacement of light with heavy rolling stock and obsolescence of type. Relative to the latter element he stated that in many cities rolling stock still in good operating condition has been scrapped be- cause the public desired more up-to-date and comfort- able cars. The introduction of the prepayment idea costs the industry from $600 to $800 per car converted. Very few cars indeed live out their life time in service on a given property. Mr. Heulings stated that the labor charge entering into the cost of cars increased 120 per cent between 1915 and 1919, and that the ma- terial had increased 119 per cent. He stated that about one-third of the cost of the car is chargeable to direct labor expense. Asked by the commission how car standardization would affect the cost of cars, Mr. Heulings stated that the best evidence along this line was that whereas safety cars had advanced only 50 per cent in cost, other cars have advanced 100 per cent. The safety car as now FHOM l.KFT TO RIGHT: C. H. BECK. HERBERT WARREN OF DULUTH AND L. D. PELLISSIER OF HOLYOKE built is practically a standard car and is used in locali- ties ranging from Texas to Canada, and from Cali- fornia to Maine. The balance of the Friday afternoon session was taken up in hearing the testimony of Henry L. Doherty of the Henry L. Doherty Company, New York. Asked by Counsel Warren as to the effect of increasing fares on railway traffic, Mr. Doherty said that he had not come to the hearing for the purpose of testifying and would have to discuss the matter in a purely general way, as he had no statistical information with him. He classified riding as necessity and non-necessity riding. A raise in fares will diminish, temporarily at least, the non-necessity riding. An increase in fare, however, will increase gross revenue. The counsel for the association then turned the witness over to the commission for counter examination. The commission suggested that Mr. Doherty tell them in his own way his views of the electric railway situation. He discussed the subject substantially as follows: The early 5-cent fare was fixed largely because of the convenience of the nickel. In those days the roads were rarely more than 2 miles in length, whereas now 15-mile to 20-mile rides are hot at all uncommon in large city districts. In the early days labor cost 15 cents per hour; now it costs 60 cents per hour There seems to be no possibility except to raise fares and then go to the cost-of-service basis. The industry ought to have gone to the "me- tered" riding basis long ago. Under present conditions security holders are suffer- ing. In the end, however, the public will suffer far more loss than the security holders. If the financial credit of the railways is not restored extensions cannot be built, service will have to be decreased, and the wage earner will suffer because he has no other means of transportation. State regulation is better than regu- lation by local authorities, and in general the industry has not been hurt by commissions but has been hurt by the delay which so ordinarily exist between a necessity and the ruling of the commission on that necessity. In the matter of regulation the public must be educated to the fact that capitalization and valuation have no relation. As a general proposition there should not be as much difference in valuations as made by different experts as now exists. As far as franchises are con- cerned, the less there is in the body of a franchise the better for all concerned, provided regulatory bodies act promptly. The franchises now presented by city authorities contain about one-half page of rights of the company and sixty pages of rights of the city. Difficulties with the public have been great because little grievances have been exaggerated for political purposes for so long that the people think they have to guard their rights very closely whenever matters pertaining to public utility corporations are involved. Monday's Sessions At the opening of the hearing on Monday Counsel Warren said that he would like to introduce two reports on the cost of materials. The first was from A. H. Englund, vice-president and treasurer Electric Service Supplies Company, Philadelphia, giving a list of average prices for a variety of electric railway materials for 1914 and 1918 by years and for the first six months of 1919. The material thus included embraced lighting arresters, overhead line material, high-tension transmission material, copper rail bonds and car equipment specialties. Tables were presented, in most of these cases, both of the actual figures and the percentage increases. A typical table follows: CAR EQUIPMENT SPECIALTIES Relative selling prices during the years mentioned in percentages, prices of 1914 being taken as 100 per cent. Item 1914 1915 1916 1917 1918 1919 Steel gear cases 100 Incandescent headlights Trolley catchers 100 Curtain signs 100 Lighting fixtures 100 Fixture shades 100 Trolley poles 100 Trolley cordage 100 Fare registers 100 Motorgears.West. 101, solid cast steel 1 00 Motor gears. West. 101, solia forged steel 100 Motor pinions, 1 7 teeth, 5-in. face. . 1 00 Average percentages 100 105 126 211 238 239 100 112 142 155 155 100 111 139 168 200 110 165 175 200 213 100 100 110 115 120 100 104 121 132 166 100 123 181 230 265 106 122 161 221 250 106 125 139 139 139 106 119 206 224 224 115 146 189 240 245 116 167 244 260 267 105 127 168 194 208 The second exhibit was a statement from James S. Thompson, vice-president American Brake Shoe & Foundry Company, of the cost of steel plate, pig iron, scrap iron and coke from July, 1912. The costs were expressed in percentages as given on the chart here- with. Commenting on this chart Mr. Thompson said, in part : "This chart shows generally that from July 1, 1912, to July, 1915, there had been slight reductions in the July 26, 1919 Electric Railway Journal 169 240 •200 m 0) U a 4° E ._ 0 40 ^40 _ 0 < 40 1 ■f-239% h 27o fl 58% \ 6% H4 1 ^' 5J % \ 1 t';T-+i5 +13 4% \ fl 08°/c / A 5% '(,% i/% -[] tii — m 483% — 1-86^ -3% li '''"^ \ -10 'fi 1 ^1 1 s / 1 957c ml © cc: s '-5% 1 918=- <- ~ -\W )-- Julyl, Julyl. Julyl, Juilyl, Julyl, Julyl, Julyl, ^m. March May July . 1912 1913 1914 1915 1916 1911 1918 Dec. Feb April June CHAUT SHOWING INCREASES IN COSTS OF SEVERAL RAW MATERIALS costs of materials. From that date, however, up to and including July 1, 1917, the costs increased rapidly, and the peak of all raw material prices was reached upon that date or within a few months thereafter, when the government established maximum prices for the materials we use, and the chart therefore shows declines to the government prices. From this date until the signing of the armistice in November, 1918, the prices remained the same or increased slightly, due to addi- tional charges for transportation and — in the instance of coke — to increase in the government price. "After the armistice was signed, prices remained comparatively steady for a brief period, excepting for scrap iron, and then declines occurred in all mate- rials until June, 1919, when the prices of scrap iron and coke increased, so that on July 1, 1919, there had been an increase of 12 per cent in scrap iron over the June 1 purchases and 10 per cent in coke. The chart shows that the increases in the prices of raw materials on July 1, 1919, over those of July 1, 1912, were as follows: Per Cent. steel plate 136 Pig iron 108 Scrap iron 86 Coke 84 "It may be added that since July 1, 1919, until this date — July 18 — there has been further increases in the price of scrap iron, amounting to about 7 per cent, and it is expected that additional advances in steel plate, pig iron, scrap iron and coke are imminent." Mr. Warren then introduced the following letter in regard to the extent of interests in electric railway securities of life insurance companies: Letter from George W. Smith, Actuary op Association OF Life Insurance Companies of New York The investments of twenty-six life insurance companies in electric railway bonds and stocks — these twenty-six com- panies representing every company in this country having $500,000 or more invested in public utilities — amount in bonds to $109,624,550.77 and in stocks to $6,968,120.17. This large investment represents policyholders' money held in trust, and is the property of individual policyholders, num- bering over thirty-four million, scattered all over the United States. With this in view, it would seem wise to emphasize particularly, that it is to the individual's interest to have such investment protected, as any depreciation in these funds, due to a decrease in the value of such invest- ments, reverts at once, in a detrimental way, to the interest of each individual. Testimony of Mr. Stores L. S. Storrs, president Connecticut Company, was the next witness and presented two statements, one on the competition of motor vehicles and one on other reasons for the condition of the industry. Abstracts will be found elsewhere in this issue. In answer to questions Mr. Storrs said that between October, 1917, and October, 1918, the first year during which his fare was 6 cents instead of 5 cents, the increase in revenue was about 10 per cent, but with a reversion to more normal conditions there had been fur- ther increase. He thought it doubtful if any one could predict the increase in revenue from a fare increase. PROM LEFT TO RIGHT: COPTNSEL BENTLEY W. WARREN. WALTER A. DRAPER, W. C. CULKINS AND L. R. NASH He believed the jitney and motor truck should be sub- ject to the same regulation as the electric railways and that public service commissions should pass on the ad- visability of the construction of new roads. When asked to name the fundamental needs of the electric railways he summed them up as: 1. Recognition of need for a reasonable rate of fare; 2. Relief from imposts not connected with transpor- tation : and 3. Regulation of competition. He described several sections of line abandoned by the Berkshire Street Railway. There was little opposi- tion to this in the winter, but with warmer weather people along the line had petitioned the Massachusetts Commission to see what could be done. Undoubtedly, he said, the people were inconvenienced by these aban- donments and property values suffered. He then spoke highly of the frequent service car in operation in several cities in Connecticut. On request of the commission he agreed to compile figures on package freight business conducted by his company. The first witness at the Monday afternoon session was L. R. Nash, Stone & Webster, who explained thfit the service-at-cost idea had antedated that of commission 170 Electric Railway Journal Vol. 54, No. 4 regulation in the states where it had been tried. If the state of public service regulation had been farther advanced, there would not have been the same field for service-at-cost plans. The same principle was followed in both so far as rate regulation is concerned, namely: A determination of the valuation, rate of return, pro- vision for depreciation and reasonable allowance for expenses and taxes. The commission then fixes the fare for individual cases while the service-at-cost plan fixes it for all time with such flexibility as may be intro- duced. One advantage which the service-at-cost plan has is that the rate of fare changes automatically so that delays are avoided. Under the service-at-cost plan either a municipal commissioner or the state pub- lic service commission could take supervision. In this connection he brought out the fact that in the proposed Philadelphia service-at-cost plan the com- mission would have been given the supervision of op- eration, and that in Montreal the local board is really the agent for the provincial public service commission. Mr. Nash then outlined the various service-at-cost- plans in use, along somewhat the same lines as were contained in the article by him in the issue of this paper LEFT TO RIGHT: A. S. HILLS OF WASHINGTON, JOSEPH ALEXANDER OF CLEVELAND. CHAIRMAN ELMQUIST OF THE COMMISSION, JOHN J. STANLEY OF CLEVELAND AND S. L. TONE OF PITTSBURGH for Jan. 4, 1919, emphasizing particularly the features of the indeterminate term, absence of franchise taxes and need of flexibility in fare schedules. Mr. Nash then gave place to W. C. Culkins, street railroad commissioner at Cincinnati, who gave the his- tory of the service-at-cost plan in that city. He said that the original fifty-year franchise of the company was subject to review at the end of twenty years and that it was at the time of this review that the present plan was adopted after several others had been consid- ered. He then described the operation of the plan with whose general principles he expressed himself in favor. He thought the present loss of traffic would not be per- manent. He said people had acquired the idea the nickel was the proper rate of fare, but when they understand the situation they will feel differently. In conclusion he emphasized the necessity of considering each city individually in connection with the proper rate of fare. A city with long lines, and long hauls, like Cincinnati, for instance, could not have the same fare as one with shorter hauls and high traffic density. Walter A. Draper, vice-president Cincinnati Traction Company, then presented a statement on the need for an incentive for economical operation under service-at- cost franchises, the subject which had been especially assigned to him. This statement will be found in ab- stract on another page. In answer to questions he said that the plan would naturally come up again for con- sideration in 1931. Until that time no change could be made in it except by mutual agreement. For in- stance, this plan would have to be followed if expenses went so high that a uniform fare, such as is provided by the plan, would be so large as to be prohibitive. The common stock participates only if the fare goes to 6 cents, and at present there is no such participation. When asked for any criticisms of the plan Mr. Draper said that in his opinion there should be some consid- eration for the company, no matter what the rate of fare is. He also mentioned the budget provision and the difficulty of determining far ahead what the ex- penses were to be, and also the limited term of the franchise, but said that the Ohio law would not allow a change from a limited to an indeterminate franchise. The hearing then adjourned until Tuesday morning. Tuesday's Sessions L. D. Pellissier, president of the Holyoke (Mass.) Street Railway, was the first witness on Tuesday morning. He said that the Massachusetts commission has absolute power over rates. In Northampton and Holyoke the rate had been raised from 5 to 7 cents. On most of the suburban section the 5-cent rate has been retained but the zones shortened so as to be about 2 miles in length each. In Northampton the 40 per cent increase in rate had resulted in about 25 to 30 per cent increase in revenue since Jan. 1, 1919. All the stock of the company had been issued at par or at a premium. Mr. Pellissier thought that in congested territory the company had lost some short haul passengers. About 5 per cent of these had gone to the jitneys. He believed, that an increase in fare would increase revenue and that traffic will adjust itself to the new fare. Job E. Hedges, receiver New York Railways, the next witness, said that it was taking part of the capital of that company to keep its lines in operation. It was pay- ing no rentals to its leased lines and one subsidiary had already been severed from the system. The Public Serv- ice Commissioner had authorized a charge of 2 cents for transfers to begin Aug. 1, but the city had attacked this order. The high-water mark in traffic on the sur- face lines was reached in 1913, and the company was now approaching this figure and, in Mr. Hedges' opin- ion, would not exceed it. While some protest will natur- ally be raised when fares are increased the speaker did not think there would be serious objection when the peo- ple understood the necessity for the increase. He con- sidered municipal operation would be much less effi- cient and was rather inclined to believe that prices in general would decrease in the future rather than remain at their present level. He said "If rates don't go up, the roads will." He believed that if the Commission should issue a statement that the present policy of terating the railways was tantamount to taking prop- erty without compensation, it would attract attention and help greatly. Views of A New York Banker The next witness was S. R. Bertron, of Bertron, Griscom & Company, bankers. New York. He said that his firm had handled many street railway securities. July 26, 1919 Electric Railway Journal 171 For a long time it was thought that selective securities of steam and street railways were choice investments, because these properties supplied a public necessity. In consequence they were sold on a low interest bearing basis and held by many insurance companies, estates, etc. When the war came it was understood that the companies were doing war service; in fact, this state- ment was made by the highest officials in the country, yet the street railways were the only industry which was not able to pass the burden on to its customers. The problem was "said to be a local one, although it was nation-wide. Only a few local authorities responded promptly, and a still smaller number afforded sufficient relief. When the problem was put up to these local authorities the sentiment seemed to be that the com- pany could get on somehow. It is practically impos- sible now to sell street railway securities to investors and no money could be raised unless credit was re- ■established. Temporary relief would help, but a perma- nent solution is necessary. The speaker said he was not so averse to municipal ownership as some others. He did not think the management would be necessarily political, and credit would be restored promptly. In answer to questions he said that most of the larger issues of securities have come to New York for flota- tion. Few cities will absorb their own securities of this kind certainly on an initial issue. The cost of han- dling bonds was from 2 to 5 per cent. Recently the interest has been so high that companies could not af- ford to finance. He thought that companies operating on a service-at-cost basis could issue securities success- fully if the terms of the agreement were considered sat- isfactory to the lawyers passing upon them. New Orleans Banker Urges New System J. K. Newman, banker. New Orleans, explained that in the early days railways were considered very profit- able and franchise values had been capitalized. Many companies had not included the cost of replacements and renewals in their operating expenses, though St. Louis, which had done this for a number of years, was now in the hands of receivers. In his opinion it would be necessary to set up a completely new financial ar- rangement. He did not consider municipal ownership imminent because politicians knew that fares would have to be raised under municipal ovraership and would not like to advocate such a measure. He considered the service-at-cost plan desirable. This would permit the cities to specify the kind of service they desired, whether in seatless or luxurious cars. At the afternoon hearing, Mr. Newman continued his testimony on renewals and replacements, desiring to emphasize the great mistake which has been made in capitalizing these expenditures rather than paying them out of operating revenues. While the industry was growing by leaps and bounds in the early days, the traffic growth caused an appreciation of the properties which, it was thought, offset the effect of capitalizing the renewal and replacement costs, but with the passing of the flowery days, this procedure has brought about an overhead charge so great that most of the companies are burdened almost beyond solvency. He looked upon this practice as one of the principal contributory causes of the present state of the industry and pointed out that the remedy lay in a complete new financing system. Mr. Newman was certain that the success of any cost- of-service or other plan of future operation must be predicated on the payment of all the depreciation charges out of operating revenue and that the public authorities could very properly have control of the de- termination of the rate for such charge. He was also firm in the conviction that if the public was once shown to its satisfaction that the fare charged for a ride represented the actual cost of the service plus a fair return on the legitimate investment, and that no part of it went toward dividends on watered stock, it would willingly pay whatever fare was necessary com- mensurate with the service given, yet he believed the public might be inclined to discredit the statement of the facts if made by the company, and that the federal commission would do a great deal toward convincing the public, if it saw fit to corroborate this as a general finding. Another interesting point of Mr. Newman's testi- mony and one on which he was closely questioned by the commissioners, was that in a general financial reor- ganization, when it follows insolvency, a great part of the common stock must be wiped out of existence. The old securities must be cancelled and new issued to rOUR MEN ACTIVE IN THE PRESENTATION OF THE RAIL- WAYS' CASE IN WASHINGTON: J. W. WELSH, B. B. BURRITT, L. S. STORRS AND JOSEPH K. CHOATE represent sound value as invested in the property. In this process, it was unfortunate, but the holders of the lower grade stocks would have to be losers, for the most part. In connection with such a plan, however, he pointed out that it was not always necessary to treat the senior securities at their full par value, since their present-worth value was often much less than that, and that it was often proper in a reorganization for holders of the junior securities to retain some equity. Questioned as to the degree of assistance which might be realized from a zone fare system or the use of one- man safety cars, Mr. Newman thought that either would be a help but not a sufficient help to allay the present march toward bankruptcy. They do not offer a solution to the present situation. He said there were several places on the properties he represented where safety cars ought to be used but that the companies were unable to finance the purchase of these cars. Contrary to the feeling of most electric railway men, Mr. Newman preferred to continue the costs of paving, street sprinkling, snow removing, etc., as part of the obligations of the street railways. His thought was that it would complicate the issue in securing the con- sent of the public, to go to it for both a reduction of 172 Electric Railway Journal Vol. 54, No. 4 these burdens and an increase of fare. It would be simpler to retain these burdens and go after a fare increase ample to provide for these items of expense. Experience of a Shipbuilder Homer L. Ferguson, president of the United States Chamber of Commerce, president of the Newport News Shipbuilding & Dry Dock Company and a director of the electric railway system operating in that vicinity was the next witness heard. He told of the appointment of a committee of the Chamber of Commerce to investi- gate the electric railway situation and informed the commission that this committee would have its report ready in the very near future. Asked if the business men of the country were aware of the difficulties of the electric railways, he said they were and that they realized the condition to be critical and demanding im- mediate relief. He said it seemed strange that it was necessary to discuss the necessity of higher fares, since it was so obvious with everything increased in cost, that the same old fare could not continue to cover the cost of the car ride, for the electric railway men had no power of working a miracle any more than any other business men. Mr. Ferguson became interested in his local street railway because it had lost its credit, with the result that the property became so run down that his ship- yard employees could not get to and from work. The consultants called in to prescribe for the company had induced several local men to purchase enough stock to become dii-ectors of the company as an effective means of restoring the company in the good graces of the com- munity. Mr. Ferguson became a director at this time. By virtue of the restored credit, the company was able greatly to improve the service and to earn a fair return on a fare slightly lower than the old company had charged. A great increase in population in the com- munity has netted a good return so that his company was now in an exceptionally favorable financial con- dition as compared with other companies. He cited how the Emergency Fleet Corporation had financed the building of a new line for the company and had specified a higher rate of fare than that charged elsewhere on the company's lines, thereby recognizing the necessity to take into account the higher costs of construction now involved. Incidentally, he commented that this line had been built to serve a new town of 500 homes, each provided with ground ^or a garden, built by the Shipping Board, and suggested that that was a most effective way of answering the arguments of bolshevism — induce every man to become a home owner. Upon questioning by the commissioners, Mr. Fergu- son gave figures to show the increase in wages in the ship yards, which by comparison made the trainmen's wages look not so bad. He also stated that he could see no indication of a downward trend in wages and if there was any trend at all, it was upward. He thought it was a matter not of months but years before any lowering of wages might be expected. Mr. Stanley Testifies John J. Stanley, president Cleveland Railway, next took the stand. Upon request of Counsel Warren, he outlined briefly the service-at-cost franchise in opera- tion in Cleveland. Subsequent questioning brought out that the rate of fare had been first increased in 1917 and then several times during the last year so that it has changed from an original 3-cent fare to the present rate of 5 cents and 1 cent for a transfer. He doubted if it would be possible to continue the present rate if the scale of wages should exceed the present 60 cents. The operating expenses in March, 1910, were 11.5 cents per car mile, while they were now 23.5 cents. Asked as to the effect of the fare increases on the number of riders, Mr. Stanley said that there had probably been a falling off of about 8 or 9 per cent, al- though some of this might be accounted for by the general decrease in the rate of increase of the number of car riders over the country. Mr. Stanley stated that the company was building five new extensions this year comprising 5 to 7 miles and entailing an expenditure of $50,000 to $60,000 a mile, for which new stock was sold at par. Asked how he was able to sell at par, he said that the real secret of it was cooperation between the city and company, and he quoted a |"^|r'' statement of Mayor Baker of Cleve- land in which the interests of the J, / 1 ; people and the railway were set |i 'j. forth as one and the same. Then ■ « I s5»N he cited some of the things the city does for the railway, mentioning the use of eight city bridges with- out rental or assessment, the free- dom from paying charges, the pay- ment of extensions ordered by the Council from taxes assessed against' the adjoining real estate, the relief from street sprinkling charges which formerly cost the company from $30,000 to $40,000 a year and instead the payment of $15,000 to $20,000 a year to the company for flushing the streets. Mr. Stanley attributed the low fare in Cleveland to the freedom from such imposts and obligations, and to the reduction of the capital at the time the Tayler grant became effective. The only suggestion he could make for improving upon the Cleveland franchise was that there should be no maximum or minimum fare specified. The commissioners asked numerous other questions as to the extent of control and supervision vested in and exercised by the city. In this connection it was brought out that the cost of conducting the street railway com- missioner's office was from $40,000 to $60,000 a year, and that a force of about twenty-five employees was maintained. This cost comes out of the railway earn- ings. On Tuesday the practice of holding evening sessions was begun. The session began at 8 o'clock and Counsel Warren first read a long telegram from Paul Shoup, president Pacific Electric Railway of Los Angeles. It indicated that conditions on the Pacific slope were no better than the East and that while some companies had been able to raise fares, the increases were not adequate. The next witness was Charles A. Fagan, receiver Pittsburgh Railways, who said that of the annual op- erating revenue of about $15,000,000 received by his company between 65 and 70 per cent was being spent in wages. The company is not attempting now to pay any bond interest nor rentals of leased lines, nor even. R. T. SULLIVAN OF TOUNGSTOWN July 26, 1919 Electric Railway Journal 173 any municipal charges. Of the latter there are many in Pittsburgh, including tolls over bridges which are free to other users of the highway, pole taxes, etc. Shortly after he had been appointed receiver of the com- pany, representatives of the War and Navy departments, who were interested in securing reliable transportation for the war workers in the Pittsburgh district, con- ferred with the receivers and with representatives of the city's Chamber of Commerce in an effort to secure more reliable transportation. In consequence of their in- sistence all revenues above operating expenses were then, and still are, being put into service improvements and the rehabilitation of property rather than into the payment of the capital charges and municipal charges mentioned. Mr. Fagan then described the original 5-cent-7-cent zone system as introduced by the company during 1918 and said that while the riding had fallen off about 14 per cent the revenue had increased about $600,000 for the year. This amount, however, is not adequate, especially as the employees are asking for increased wages and the case is now before the National War Labor Board. If granted, this will make four increases since December, 1917. Mr. Fagan then described the proposed increase in fares, demand for increased wages and other matters discussed by Mr. George, his co- receiver, and printed on page 165 of this issue. In conclusion, when asked for a suggestion for improving the electric railway status, he said that the same public body should pass on both wages and fares. Dallas Franchises Described W. E. Head, vice president of the Dallas Railway, described the service-at-cost franchise adopted in that city about two years ago and patterned somewhat after the Cleveland franchise. Under a state law all cities of 5000 population or more in the state have practically all the powers of regulation which a legislature would have except for certain state regulations. As these include a paving obligation, one is contained in the com- pany's franchise. Some of the chief differences between the Cleveland franchise and the Dallas franchise, as mentioned by Mr. Head, are as follows: In Dallas the city does not exercise any control over the securities issued by the company except that the company is not allowed to issue bonds for more than 85 per cent of the property value. Every dollar which goes into the property is supervised and no allowance is made for the cost of obtaining money. The "prop- erty value" is made up of the original agreed valuation, plus any additional capital charges which are approved by the city. Monthly reports are issued by the city's representative on the earnings of the company and on any changes in the property value. The rate of return permitted with a 5-cent fare is 7 per cent on the property value, but there is a sliding scale under which a higher return is permitted if the fares are lowered. Thus, 7i per cent is allowed if six tickets are sold for 25 cents. The upper and lower limits of the surplus reserve are per- centages of the property value instead of fixed sums, as in Cleveland. The greatest defect in the franchise, in the speaker's opinion is that fares have a top limit, which is 5 cents. The lighting franchise in Dallas, owned by a separate company, has a similar limit in it, but it affects only the maximum rate, so does not seriously interfere with operation. The effect on the railway has been to limit the return earned to far less than that commonly secured in Dallas in other commercial enterprises, so that the company has not made any extensions, indeed they cannot be required by the city if the company is not making its full 7 per cent return. If financial con- ditions had continued as they were in 1913 and 1914 the property would be earning about 8 per cent on its prop- erty value in the writer's opinion. Other than for this point the franchises seem to work very well and had resulted in hearty cooperation between the city and the company. One of the clauses in the contract was that jitney competition was to be stopped. This was finally done about June 1, 1918, by the exclusion of jitneys by ordi- nance from the central zone. This ordinance has been adjudicated and sustained. The effect of this elimina- tion on the traffic was shown by the receipts during May, 1919, which were 48.3 per cent above those during May, 1918, May of last year being the last month dur- ing which jitneys were operated. The increase of June, 1919, over June, 1918, was about 10 per cent. Wednesday's Sessions Charles J. Bullock, professor of economics. Har- vard University, who has recently been making a study of electric railway taxation, was the first wit- ness called before the commission on Wednesday morn- ing. He presented a written statement of the results of his study, an abstract of which appears elsewhere in this issue. The questioning which followed was ad- dressed towards bringing out the injustices of the pres- ent taxation policies and establishing what ought to be paid in the way of taxation now during the emergency and in normal times. Taxation Problems Heard Taxation remission as a means of relief was believed to be too slow to supply the immediate relief needed, but Professor Bullock thought the commission ought to include in its findings a recommendation looking to- wards the working out of a basis of taxation equitable to the electric railways and other businesses and to- wards the abolishing of all taxes which cannot properly be considered as contributing to the service. As to the advisability of a total remission of taxes, the pro- fessor said that we shall probably have to come to that as a temporary measure to sustain the companies, for this is simply a question of giving a subsidy to an essential industry which faces ruin. "In other words," Commissioner Sweet put in, "in- stead of fowls to be plucked, the electric railways are really to be fed, or at least given consideration, if we are to continue to have transportation." To this simile of the situation. Professor Bullock agreed. It was also brought out that the two outstanding consid- erations in fixing taxes are to produce the necessary funds and then properly to distribute these requirements over all sources. With this in mind it was obviously wrong to assess the electric railway company with taxes on paving which it does not aid in wearing out, for that apportions a tax on the street car riders which they should not be obliged to carry. The same argument applies to other unjustified taxes. Professor Bullock suggested that he believed a recom- mendation for higher rates would have more weight if it were accompanied by a recommendation for lower 174 Electric Railway Journal Vol. 54, No. 4 taxes, particularly the abolition of those promiscuous special taxes on the transportation industry which are outside the law of equality of tax. He would have the car rider pay the full cost of the service rendered, but with the unjust taxation removed from this cost. He thought the service-at-cost plan works admirably as a means of educating the people in the real problems and conditions of the industry. The objection to a 10-cent fare in Boston had been negligible compared to what it would have been in the absence of a service- at-cost plan. In fact he knew of no better plan of pre- senting to the public the idea that it must pay for the cost of the service than through the operation of a franchise of that type. He could see no economic defect in the service-at-cost contract. Questioned as to whether the 10-cent fare in Boston would return the necessary revenue, the professor re- plied that, taking into account the wage award which settled the recent strike, it was his guess that it would not. As to whether municipally owned railways should be taxed, he was strongly of the opinion that the same principles of taxation should be applied to such proper- ties as to privately owned properties. He said there was an absolute limit to the amount of property that could be removed from taxation, so that if there was a general removal of the ownership of electric railways from private to municipal holders, this question would come seriously to the fore. Asked if it would not be better to adopt the prin- ciple of taxation of net income as a permanent policy, a suggestion he had made in his written statement as a temporary policy, he replied that it would be, except that this cannot be done on real estate which is an element of street railway tax. Real estate should not be exempted from tax under any consideration. Service-at-Cost Contracts Explained L. R. Nash, of the Stone & Webster organization, was next summoned to the witness stand to continue his testimony which had been interrupted on Monday. He presented a printed pamphlet which was a reprint from the Electric Railway Journal for Jan. 4, 1919, of an article written by him dealing at some length with the history and working out of the various service-at- cost plans in operation over the country. The com- mission took particular interest in his ideas of allow- ances for depreciation and of the question of rate of return on the investment. It was his opinion that it was impossible to set aside a sufficient fund to provide fully for depreciation, obsolescence, supersession, etc. The expected renewals should be provided for but not the theoretical or unforeseen obsolescence and super- session. He believed that any contract should provide a minimum percentage of the gross earnings which should be set aside in a depreciation reserve or spent each year in order properly to maintain the value of a property and protect the investors. Moreover it is im- possible to provide for the full depreciation because, to begin with, we do not know the life of railway prop- erty. Mr. Nash had never seen any railway plant worn out. But obsolescence has been a real factor, and no one can predict how important a factor this will be in the future. He believed that replacements should largely be paid for by the car riders who benefit direct- ly from the improvement rather than to make present car riders pay for the improvements anticipated for the future. In other words he preferred not to amortize for the benefit of future riders, but to charge the cost of the service rendered at the time, plus the cost of amortizing for the expected renewals. As to the rate of return on the investment which should be provided for in a service-at-cost franchise, Mr. Nash thought that there should be no maximum or minimum rate specified, nor should there be any max- imum or minimum rate of fare specified. He affirmed Commissioner Gadsden's statement that the rate of re- turn which would have to be allowed would vary and would be determined by the investors, for if they did not get a satisfactory return from electric railway se- curities, they would put their money elsewhere. In re- ply to a leading question by Commissioner Beall Mr. Nash agreed that there could never be a contract pro- vision for a lowering of the rate of return allowed with the coming of an easier money market, for neither bonds nor stocks could ever be sold with such a pos- sibility. A bond with a rate of interest subject to lowering had never been known, and the purchaser of stocks buys always with the expectation that the di- vidend will not decrease and will probably increase. Mr. Nash stated in answer to a question as to what the rate of return ought to be, that if living expenses went up 50 per cent, then the earning power of money ought to go up an equal amount. On the question of the incentive for efficient manage- ment with the service-at-cost plan, and answering a question on this aspect of the Cincinnati plan, Mr. Nash said that the principle in the plan of that city was cor- rect but that the figures forming the basis of the reward were such that the incentive was only fictitious — that the conditions for reward could never be reached. He said it was practically impossible to forecast what the normal rate of fare which should serve as the basis of a sliding scale reward would be. Or if a variable basis were provided for, then he knew of no way that it could be adjusted fairly to changing conditions. For this would require absolute unvarying fairness on the part of the commission which controlled the basis, and there is always a tendency to crowd such an allowance down if something is made one year. Or if the company were able to make something, having a fair commis- sion, then someone would charge collusion between the company and commission. The questioning brought out that the principal re- sults of the service-at-cost plan were, first, the assur- ance to the investor of a fixed fair return on the in- vestment, and second, the assurance to the public that it is having to pay only the cost of the service which is rendered. Asked what measures he would use to deal with the Pittsburgh situation, Mr. Nash said that first he would quickly inform the public of the actual conditions so that it would know that its feeling that the company could live off the fat of earlier prosperity is a myth. Second, he would endeavor to advise the public of the justice of a higher fare, both from the standpoint of the investors and of the public, for the two interests are not conflicting but are the same in the long run. Third, he would endeavor to secure a service-at-cost franchise as the best means of restoring credit. Mr. Nash's testimony carried over into Wednesday afternoon. He was followed by Charles L. Henry, pres- ident Indianapolis & Cincinnati Traction Company, with whose testimony next week's account of the proceedings will begin. July 26, 1919 Electric Railway Journal 175 Formal Statements at Washington Abstracts Are Given of Written Testimony Presented by Several Witnesses at the Hearings Before the Federal Electric Railway Commission IN the running report of the Washington hearings before the Federal Electric Railway Commission an account is given of the informal testimony presented. A number of the witnesses read formal statements and of these several are abstracted on this and the follow- ing pages. Reasons for Railways' Present Condition By L. S. Storrs President The Connecticut Company, New Haven, Conn. THE problem confronting the street railway to-day has risen by virtue of many causes. One of the most vital causes, which cannot fail to be readily un- derstood by the public generally, is the increased value given to the patrons and communities served in the form of extensions of lines and improved facilities, the op- eration of which could not possibly be made to produce an increased revenue. In the early days of the electric railway industry the optimism of the promoters and investors was such that it was thought an electric railway could, by operating at so m.uch higher speed than any other form of street conveyance, show a profit hitherto unknovra in the transportation field. There are few companies to-day which are not suffering as a result of that belief. In- crease of speed was the excuse for extending many lines shortly after electrificaton of the horse railways and as two or three times the distance could be cov- ered in a trolley car as by the horse car in the same space of time, many companies made extensions of lines into territory which it took no longer to cover by this improved method of transportation than it took to cover a much more restricted area by the old. Thus a fifteen- minute ride cost no more to the rider under the new system than formerly, notwithstanding the distance traveled may have been three times as great. No ore would deny to-day that these unprofitable extensions were a mistaken policy from the standpoint of the rail- way treasury, but from the standpoint of the public at large they were a blessing to many a rural community. Electric Railways Increased Real Estate Values For years the patrons have secured more than they paid for, and the lines could not have continued in op- eration without support from the short haul business of the more populous centers, the revenue from which has in recent years been materially diminished through increased use of motor vehicles and increase in cost of operation, all of which makes more precarious the continued operation of these extensions. Not only were extensions into unprofitable territory made upon the initiative of the railways but due to the seductions of the real estate promoter who wanted but a mere quarter of a mile longer ride for his prospective purchasers, many managers felt it not only good busi- ness judgment but expedient as well to build a slight •Abstract of statement presented at hearing of Federal Elec- tric Railway Commission, Washington, July 21, 1919. extension for this purpose, always of course without additional fare. The value to these patrons has been for years re- flected by the low cost of the ride and a decided un- earned increment to the adjacent property, yet it is with reluctance that persons who have so benefited are willing to concede one iota to the company which has given more than value received ever since the exten- sion was built. Real estate promoters even to-day ad- vertise their wares more upon the basis of the cost of reaching the territory by trolley than by the partic- ular attractiveness of the land itself. The railways and real estate men are not alone to blame for many unprofitable extensions, but much of this extravagance in building in later years was due to political bodies and commissions without any or sufficient investigation of the surrounding conditions from a traffic viewpoint. It is well known that a street railway company could ill afford to incur the enmity of a political body which created the franchises, the possession of which was necessary to the life of the corporation. Irrespective of the reason why exten- tensions were built into unprofitable territory, we know to-day that many of these companies have failed to sur- vive and those which were consolidated into a larger system have been carried along for years at the ex- pense of other portions of the system. Comparison With British Cities The fundamental theory upon which the electric lines in England have developed is entirely opposed to that of expiansion as used in the United States, for there each, extension is expected to produce sufficient income to make it a paying venture when considered alone. The result of this basis is clearly shown by the fol- lowing consideration: It has been pointed out that if the electric railway facilities of Columbus, Ohio, had been developed in no greater degree than those of Glas- gow, Scotland, Columbus would have attained but 15 per cent of its present area, all of the present popula- tion being forced into the territory thus restricted. Bridgeport, Conn., would have less than one-quarter of ' its present street railway trackage had it no better fa- cilities than those of Aberdeen, Scotland. As showing the difference in the facilities afforded to American and European cities by electric railways, the following tabulation of statistics for cities in Great Britain having a total population of 965,000 and cities in New England having a total population of 1,085,000 is of interest: Great New Item Britain England 965,000 1,085,000 Miles of tracl< 156 695 Population per mile of track 6,187 1,560 Revenue per mile of $16,767 $13,314 Perhaps the most significant item of this compari- son, showing as it does the absolute lack of accommoda- tion for that portion of the British communities living 176 Electric Railway Journal Vol 54, No. 4 in the thinly settled territory, are the figures which give the population per mile of track. In England it is 6187, in New England 1560. Inauguration and Extension of the Transfer System The value to the patrons and the communities through the inauguration and extension of the free transfer system, while generally realized, if considered at all, nevertheless is something taken for granted by the public. In the early days of the industry there were in some cities as many as ten or twenty different street railway lines each chartered to perform a public service upon certain specified routes. Each company charged its own fare, generally in excess of 5 cents. Upon the electrification the fares were gradually re- duced to a nickel, but even so, each company collected its own nickel and gave no right to transfer to the lines of any other company. Later, however, traffic arrange- ments were entered into by the several companies for the purpose of encouraging traffic, but more often be- cause of conditions and limitations in franchises pro- viding that free transfers be given from one point to another in the various cities. Upon the consolidation of companies into one, which took place in practically all the cities, a general system of free transfers wa« either granted by or imposed upon the consolidated company, and as a result the patron has received an added value to the service received by him. To show the extent of the benefit and value to the car rider one has only to cite the case of a man who was given a nickel by Ex-President Brush of the Bos- ton Elevated Railway System, told to ride as far as he could on that system for the nickel, and who rode 54 miles and then gave up, not because he had completed the maximum ride possible for a single fare, but be- cause the rider was exhausted. While this example may be somewhat uncomm.on, it is a fact that a person can ride, by means of a fi'ee transfer, a much greater dis- tance than any company can afford to carry him. Improvement in Character of Track and Equipment The improvements and comforts demanded of electric railways by the public since electric cars began operat- ing have added tremendously to the value of the service given. The old horse car cost from $800 to $1,000, was heated by straw and "animal heat" of passengers, lighted by kerosene and propelled at a pace not much faster than a walk. It was hardly more than a good- sized box mounted on four wheels. The first electric cars cost about $4,000, some heated by stoves and some by electricity. The difference between these first cars and the modern street railway car, that costs to-day as high as $17,000, is indicative of the increased value of service given to the public from the standpoint of equipment alone. Everything in the nature of an im- provement looking toward comfort, speed and conve- nience is demanded by the patrons, and in the past sel- dom refused bj^ the railway. With the development of equipment there has been an attendant increase in the cost of track. The original track designed to carry cars weighing but eight tons was considered amply secure if laid with rails weigh- ing 48 lb. per yard without any preliminary prepara- tion other than sufficient ties to hold the rails in place. Such track cost an average of $10,000 per mile of single track. The development of cars weighing as much as thirty tons and the requirement of heavy permanent pavements have necessitated the use of rail weighing from 91 lb. to 125 lb. per yard, with an accompanying requirement of heavy ballast and concrete foundation preparation. Such track costs approximately $85,000 per mile of single track at present. In connection with this increased cost of equipment and track there came the necessity for larger car- houses, with more costly facilities for keeping the equipment in repair; iron poles to support the trolley wires where wooden ones previously had been satisfac- tory. Where there had been single tracks, it became necessary to lay two tracks, because of the demands of the public for speedier, more frequent, and more com- fortable service. The enormous expense entailed by these improvements represents another great increase in the value of the service given to the public. Directly related to the development of the equipment and the tracks is the demand of the public for better pavement between the rails and in the streets through which the car lines operated. In the horse car days, streets were paved with gravel, cobblestones or water- bound macadam. To-day, because of the rapid develop- ment of automobile traffic, the public demands the most costly kind of pavement, necessitating the laying of heavy concrete foundations upon which must be placed asphalt, wood block, cut-granite block or some bitumi- nous mixture. Many times municipalities require that new pavement be laid before the rails have outlived their usefulness, so that frequently rails which still have a number of years of life must be torn up and scrapped, causing a great loss to the railways. This new pavement has directly increased the value of service to the public in several ways, but without the slightest attendant increased revenue to the railway company for the investment. Heavy Imposts Levied by Communities Under the present laws in most states, street rail- way companies are required to pay the cost of new pavements and the maintenance of same on all high- ways in both city and country to a width of 9 ft. for single track and 19 ft. for double track. In many in- stances this means frequently the pavement for one- half of the paving of the street in addition to the cost of laying expensive foundations and new and heavier rails, yet the trolley car can run satisfactorily and give service to its patrons whether a street is paved or not. There seems to be very little accord between the va- rious communities as to what proportion of the cost of a bridge shall be borne by the railway company but the proportion has generally increased with the increase in size and ornateness of the structure, so that in many states as high as 33s per cent of the cost must be borne by the railway company. In Connecticut there are many highway bridges crossing navigable waters, and the electric railways were originally granted the right to construct tracks over such bridges with the requirement to pay for any strengthening necessitated by reason of car operation. With the increased growth of highway travel and the greater weights of motor trucks as compared with the old drays and farm wagons, there has been a need for more substantial structures. In an attempt to reduce the cost of such reconstruction to the tovras and state, a demand was made upon the Legislature to pass a July 26, 1919 177 portion of the burden on to the utilities, and this was' done by requiring the railway to pay one-third of such cost regardless of the fact that such new structure did not in the least add to the value of the property as a public utility, nor to the convenience of the car riders who must in the ultimate analysis pay the bill. One such bridge now under construction is to cost about $1,- 200,000, making the assessment upon the electric rail- way approximately $400,000, or representing the entire appropriation of over 6,000,000 trolley fares on a line that carries a total of but 1,500,000 passengers per year. The usual franchise tax is considered as a payment for exclusive rights to operate a profitable undertaking, or as a proper charge because of the installation of certain fixtures in the public highways. These taxes have taken many forms, sometimes a fee per year per car operated, per mile of track or per pole, or percent- age of gross earnings or in some cases a lump sum. Very few of these taxes have been decreased in later years, but on the contrary, there has been an increase in many communities, especially with regard to a tax upon gross earnings. This tax is exacted even though the railway may be in receivership and fail to earn its operating expenses. Any tax or impost of this na- ture, while it returns a value to the community in the shape of a lower rate of taxation, can only result in a poorer grade of service to the patrons and, therefore, the resultant value is at least problematical from the standpoint of the community at large. Where mutuality of interest is recognized, it has been possible to serve the public to the best advantage. In Cleveland the electric railway is relieved of paving con- struction, snow removal, bridge maintenance and sim- ilar burdens borne by railways elsewhere, and the right of the investors to a return upon their investment is recognized by the provision in the agreement between the company and the people that the return shall be considered part of the cost of giving the service. Need for Incentive for Economical Operation Under Service-at-Cost Franchises* By Walter A. Draper Vice-President Cincinnati (Ohio) Traction Company ONE of the fundamentals of the service-at-cost plan is to arrive at some figure that will represent the return to the company on capital invested. This is reached by ascertaining the present value of the prop- erty or the actual cost of the property and allowing a certain rate of return on such value. The rigid ap- plication of this rule, however, pays little or no atten- tion to the fact that a return on mere present value or historical value does not include any consideration for the risk originally undertaken or for the care, at- tention, labor and efficiency bestowed by the company on the development of the property. The advocate of a fixed and rigid return will say that by the very certainty of its being earned, which is often erroneously called a guarantee, the company is sufficiently rewarded and needs no other recommen- pense for its years of effort and endeavor. It is now- adays rather easily forgotten that the property was built and developed by capital that was ittracted to it by the anticipated opportunity of making more than a bare legal interest on the investment. In fact, the •Abstract of statement presented at hearing of Federal Electric Railway Commi.ssion, Washington, July 21, 1919. investor himself has almost forgotten the happy days when he looked forward to the increasing value of his property with the development of the city or country it served; and as increasing costs have left an ever- decreasing margin between income and operation, it is considered the height of kindness and generosity on the part of the municipal or other government to allo\y a legal rate of interest on the bare bones. Ought not in all fairness an opportunity be given the investor to get a little more by efficient operation out of his money that he has risked in the development of his community than he could have gotten if he had locked it up in bonds or turned money broker? In settlements of traction problems fixing a valuation and a return the rate is generally made as low as the lowest legal rate of interest. Six per cent is most fre- quently used. The original investor certainly expected more when he risked his money, and money for utili- ties cannot be borrowed at that rate very easily now; and if a low rate is fixed in the franchise to define the minimum return, the investors should be encouraged to careful and economical operation by an opportunity of receiving something more if they can earn it. So much for the ethical side of the question. What of the practical? It is true that a service-at-cost franchise offering an almost certain return makes it more easy, or at least possible, to borrow money. But bankers have always taken into consideration not the question whether a concern can just live — just manage to make ends meet — but rather how much margin, how m.uch over the bare living it can make. And this ques- tion of banking and getting new money is a vital one. Not only has the question to be solved as to how street railroads are to make their operating expenses, but how are they to pay interest on borrowed money in the shape of permanent investment or bank loans. Actual experience under the Cincinnati franchise has demon- strated that the banker begins to take more interest when he is shown that in addition to a fixed low interest rate that is practically assured, the company can do even a little better by careful and attentive manage- ment. When it comes to marketing securities, those paying a fixed return of 6 per cent will not sell so well as those that have at least some show of paying a fixed return of 6 per cent and then something more. But 6 per cent is not now a sufficiently high return. If 6 per cent must be written in the franchise then let there also be written therein that an additional 1 or 2 per cent can be earned by hard work. If the fixed re- turn is just enough to meet the dividend or interest on a senior security, let the possible additional return go to the common stockholder, who under a service-at- cost franchise is pretty apt to be left at the dock when the boat pulls out, because there is no room for him. And don't forget that the common stockholder has played his part, if not the important part, in the de- velopment of street railroad enterprises. The senior security holder is the banker. The common stockhold- er is, or was, the prospector, the pioneer, the builder, the man with the vision. Those who operate street railroads have not lost, and it is to be hoped never will lose, their ambition to op- erate as economically and efficiently as possible; and yet, because we are all still human, there is needed in addition to the desire to make a showing, the spur of real financial benefit. Under a rigid service-at-cost franchise the company really becomes a sort of clearing 178 Wlbcteic Eatlwxy Journal Vol. 54, No. 4 house for the money it takes in. It pays the employees, then the tax gatherers, and then the senior security holders. This takes it all. Justice and good business sense dictate that there should be at least a small com- mission paid for all this work. It will add zest to an otherwise flat existence. Operating under a service- at-cost franchise without some added incentive would be a good deal like asking an old gambler to play poker for fun and not for money. It has sometimes been said that a service-at-cost franchise with a purchase clause therein and complete city control has all the good features of municipal own- ership and none of its bad ones. This becomes true if there is an incentive to careful management in an ad- ditional and contingent return. The Cincinnati franchise provides that when the fare is 5 cents the surplus remaining after all requirements are met shall be divided 55 per cent to the reserve fund and 45 per cent to the company. When the fare is 5i cents the division shall be 70 per cent to the sur- plus fund and 30 per cent to the company, and when the fare is 6 cents the division shall be 80 and 20 per cent respectively. When the fare is over 6 cents the company gets nothing. This plan falls short of pro- viding a proper incentive because if the fare goes above 6 cents there is no additional return to the company beyond the fixed minimum. A more efficacious plan would be to allow some additional return at all times, larger as the operating expense is kept down, smaller as the operating expense increases. Even as it stands the company has an incentive to operate efficiently and economically, since by keeping the fares down it will receive a bonus, which can be given the company's com- mon stockholders, who otherwise are cut off under the franchise like a disinherited child. There is another potent argument for providing this incentive and that is the tendency of the public to feel that if the company is practically guaranteed a certain return and can get no more, it will be indifferent to how high operating costs and fares may go and will readily "pass the buck" to the city in matters of higher wages or any other element likely to affect fares on the very comfortable theory of "Why should we care? Let the men get higher wages, so long as the car rider pays." In a recent discussion of the wage question with our employees, the main interest the public took in t'oe matter was whether we wouldn't give in without much pressure "because it would all go into the rate of fare. In fact some people declared that we were in league with our men to get the rate of fare up and hold it there through their asking for higher wages and our quickly granting the demand. When they were in- formed that it was to our interest to keep fares below 6 cents as we would then receive an additional allow- ance they saw things differently. An added incentive such as that which has been sug- gested, could be provided in many ways, either by divid- ing a surplus over requirements as in the Cincinnati franchise, or an addition of 1 or 2 per cent to the fixed minimum return. In all cases, however, it should be made to depend upon the company, not how well it is liked or the degree of Christian fortitude with which the officials bear public criticism, but upon actual tangible results obtained in successful operation. The best test would be provided by fixing the added return inversely on the rate of fare, but allowing something no matter what the fare may be. Street Railway Credit and Cost of Capital* By F. H. Sisson Vice-President Guaranty Trust Company, New York City THE cost of money is affected by conditions which affect all other costs. The law of supply and de- mand affects it primarily. The degree of safety and future promise are also instrumental in determining it. There is every reason to believe that, with the tremendous destruction of wealth which has taken place in the world, both through its physical loss and the diversion of vast numbers of men from productive in- dustry, there will be a long period of tight money in which the demand for capital will exceed its supply. The rehabilitation of Europe, the conversion of indus- try, labor unrest, the re-establishment of trade and the instruments of commerce will all make large drafts upon the available capital of the world, which must inevitably be reflected in higher charges. As long as wealth remains in private hands, subject to private disposition, it will seek the most profitable fields of investment. It cannot be coerced into situa- tions that do not promise reasonable protection and re- turn, and the present public attitude toward public utilities, whether inspired by political considerations or selfish ignorance, has inevitably diverted capital from such channels into others not subject to these limitations. Public Ownership Will Not Solve the Problem This is not a question of the bankers' attitude to- ward the subject, as the bankers are, for the most part, but middlemen in the handling of securities of this character. The ultimate investor fixes the condi- tions upon which he will purchase securities and the question of rate is simply that at which the security will pass to the buyer. It is certain that, unless, there is a widespread change in the public attitude toward public utilities, the security buyer will not hazard his money in such ventures and the bankers have no choice but to follow his decision. Furthermore, it is certain that no satisfactory alternative is left in public own- ership, as there is nothing in the record of public own- ership on the whole to warrant the hope that this may offer a solution of the problem. Stripped of all complications, the question seems to be whether or not the American public are willing to pay for service rendered. The alternatives are simple — either the service will not be rendered and the growth of our communities and the comfort of our people will be denied, or the cost must be met, either directly, through fares, or indirectly, through taxes. As to which of these alternatives is economically sound, I as- sume there can be no doubt. The open question is whether the traveling public will continue to deny to its utilities the basis of charges which it accepts in every other line of business. Can Not Sell Nickel's Worth of Transportation for Half Price With the average purchasing power of the dollar de- creased generally about 50 per cent since 1914, it is impossible for 2i cents to buy 5 cents' worth of trans- portation; that is the sum and substance of the whole situation. The impairment of the street railway credit struc- * Abstract of statement presented at hearing of Federal Electric Railway Commission, Washington, July 18, 1919. July 26, 1919 Electric Railway Journal 179 ture has been brought about through increased oper- ating costs coupled with a fixed unit of fare. Prices of some of the most important material used in the main- tenance of street railway property have increased 38 per cent to 126 per cent over those in 1914. Increases in wages and fuel, the largest items in the cost of op- eration, in some localities are as high as 100 per cent over prices prevailing in 1914. In recent testimony before the Congressional committee on appropriations, it has been estimated that the cost of labor and ma- terials over pre-war prices was 85 per cent. In times of lower costs the profit from the short haul carried the long-haul passengers for the same fare. When the margin of profit from short-haul business was wiped out by increased cost of operation, the eco- nomic unsoundness of the traction business became crit- ical. In many cases this condition was aggravated by local diflSculties, such as cheap motor car competition, franchise litigation and excessive burdens imposed by regulating bodies. As a result net earnings of the trac- tion companies fell off. Where relief was granted it usu- ally did not come until the companies were already in a weakened financial condition. Financial Conditions Increase Cost of Money Finding it difficult, if not impossible, to obtain new capital through the issue of stock, the street railways have had to resort to financing by means of fixed charge obligations. As the margin of safety over interest re- quirements diminished and the risks attending invest- ments in street railway securites increased, the com- panies have had to ofi'er greater and greater induce- ments to attract the necessary new capital. Capital had to be secured to take care of maturing obligations at interest rates, in many instances, higher than the fixed rate of return, allowed on the investment by fran- chises and other regulations, and with the temporary sacrifice in many cases of a large part of the equity value. Such costly financing increased the companies' burdens, resulting in still further impairment of credit. In the following table a comparison is made of the yields on various standard street railway bonds in July, 1909, and July, 1919. This indicates roughly how much more the street railways must pay for capital to-day than they did ten years ago. Price Price July, 1909 July, 1919 To Yield To Yield Detroit United, first con. 4i3 1932 5.90 7.55 New Orleans Railway & Light, con. 41s 1935 5.48 9 64 -United Railways of St. Louis, first 4s 1934 5.01 9.98* Chicago City Railways, 5s 1927 4.68 9.75 Metropolitan West Side Eleyated, first 4s 1938 4.68 9.40 South Side Elevated, 4.;s 1924 4.95 9.71 West End Railway Company, debenture 4s 1932 3.84 6.00 Philadelphia Rapid Transit, col. trust 5s 1957 4.85 5.85 Aurora, Elgin & Chicago, first 5s 1941 4.94 9.30 Chicago Railway, first 5s 1927 4.90 9.80 Duluth Street Railway, first 5s 1930 5.00 7.82 Los Angeles, first 5s 1938 4.68 6.42 Louisville Railway, con. mort. 5s 1930 4.45 5.74 Denver City Tramway, first and refunding 5s. . . . 1933 5.22 13.25 Brooklyn Rapid Transit, con. 5s 1945 4.60 8 40 Brooklyn Rapid Transit, first refunding conv. 4s... 2002 4.63 8.70t Conn. Railway and Light, first and refunding 4vs.. 1951 4.40 5 95 Interborough Rapid Transit, first and refunding 5s 1966 5,05 6.95 * Interest delayed. t Stock yield. A striking contrast is afforded by a comparison of yield on a few standard industrial bonds for the same period : American Tobacco, 4s 1951 5 15 5 .30 Annerican Tobacco, 63 1944 5.25 5.15 Bethlehem Steel, first extension sinking fund 58. . . 19 2 6 6 . 05 5 . 60 United States Steel, sinking fund 5s 1963 4.70 4.95 Virginia-Carolina Chemical, 5s 1923 5.15 5.65 Under these deplorable conditions, electric railway security owners have seen their holdings precipitately and alarmingly depreciate in value. With the oppor- tunities offered to the investing public during the last few years to purchase the securities of industrial com- panies which have shown extraordinary earnings, elec- tric railway securities have found few buyers. With the war-time demands upon capital, these securities have sold at prices which have been so low that the electric railway companies have had the utmost dif- ficulty in obtaining, and, in some cases have been ab- solutely unable to arrange, long-term financing. Under the ordinary operation of economic law the electric rail- way companies have been compelled to pay high rates for the capital they did get and this has further re- duced the return on their securities. War Labor Board Awards Have Been the Last Straw Another factor, however, which has contributed largely to the difficulties of the situation, has been the wage awards of the National War Labor Board. Yet the general chairman of this board has held that the fi- nancial condition of the companies could not affect the issue at stake. Such rulings, however, are only in keep- ing with the general public's attitude toward the elec- tric railways, which has compelled these companies to operate under two distinct, and in some respects, di- ametrically opposed kinds of law — legal and economic. The seriousness of this handicap is apparent when it is realized that probably one-half of the gross operat- ing expenses of a railroad consists of direct labor costs, which are constantly increasing while the abnor- mally low rates for the service rendered by electric railways, were, in many cases, fixed years ago by special laws or by provisions contained in ordinances or fran- chises. The rate of fare, in effect, was a part of the consideration for granting franchises. Franchise Fare Fixing Does Not Meet Present-Day Conditions But the franchise method of fixing rates is too rigid to meet present-day conditions. The franchise, while holding down the charges for the service does not hold down costs; consequently costs have rapidly been over- taking gross revenues and have reduced to the danger point the margin between the two. The commission form of regulation was developed largely with a view to remedying the evils of the rigid franchise method, but even the commission form of regulation is losing esteem among the thinking people because of the attitude many commissions have assumed toward the public utility corporations. Transportation cannot be rendered at less than cost without the money to make up the deficit coming either from the security holders or the taxpayers, or both. It should be obvious to all that the cost of transporta- tion ought to be borne by the users of transportation, and that some plan should be worked out by which such provision is made. There can be no possible justification for imposing such burdens as are being inflicted upon security holders and tax payers to-day in any attempt to give something for nothing by allowing the users of trans- poration lines to enjoy the conveniences provided them at less than cost. The crux of the whole problem is that fares should be fixed on an equitable basis that will assure earnings sufficient to meet operating ex- pense and pay a fair return on invested capital. 180 Electric Railway Journal The electric railway security holders do not seek exorbitant increases in fares ; quite the contrary. They are fully cognizant of the fact that it is to their interest, as well as to that of the public, to keep rates for service as low as possible, for low fares benefit the companies through stimulating business. In facing this situation public authorities should not forget that they are holding in their hands the credit of their cities, savings banks, life insurance companies, and other investment institutions, and a large portion of the invested wealth of the country. The problem in not merely local or political, but of nation-wide business importance, and if it is not fairly met, is capable of having a widespread and disastrous effect on business — an effect which every business interest di- rectly or indirectly, but inevitably, must share. Industry Needs More Than Normal Amount of Capital THAT the electric railway industry needs a con- tinuous supply of new capital and that the capital turnover is slow as compared with other businesses were clearly shown by Henry G. Bradlee, of the firm of Stone & Webster in his testimony before the Federal Electric Railway Commission last week. By means of a chart from which the accompanying illustration has been re- produced, Mr. Bradlee showed that with the exception of agriculture the investment necessary for carrying on business is much greater for public utility companies than for other well-known businesses. By means of a color scheme the investment in the several businesses was divided into plant, buildings and other assets. In the illustration suitable cross-hatchings have been used to indicate these separations. By means of another chart Mr. Bradlee showed that the new capital needed each year is about four times the yearly increase in gross earnings; the chart in question showing that a graph of the plant account accumulated since Feb. 28, 1902, for a given electric railway property closely coincides with a graph for the same property which shows four times the increase in twelve months' gross earnings over the gross earn- ings for the year ended in February, 1902. Similar graphs showed that this relation was true for power and lighting companies as well. The following table shows the approximate gross earnings and approximate expenditures for construc- tion of the Stone & Webster companies for the years 1902 to 1918, inclusive: Year Gross Earninss 1902 $3,585,000.00 1903 6,338,000.00 1904 8,482,000.00 1905 9,504,000.00 1906 12,212,000.00 1907 13.776,000.00 1908 16,357,000.00 1909. 19,133,000 00 1910.. 20,747,000 00 1911 21.389,000.00 1912 . 23,925,000.00 1913 26,305,000.00 1914 28,881,000.00 1915 27,044,000.00 1916.. . . 29,456.000.00 1917.. 31,029.000.00 1918 36,322,000,00 Total $334,485,000 00 Constructirn E\pf nditurfS $2,750,000,00 3,62 ,000 00 2,414,000.00 2,900,000 (0 5,000,000 00 8,500,000.00 6,962,000 00 5,703,000.00 7,286,000.00 9,077,000,00 5,467,000,00 7,531, OCO 00 6,840,000 00 3,371,000,00 3,736.000,00 5.001,000,00 5,691,000 00 $91,852,000 00 Bradlee explained that the cost of constructing the new railway lines and power developments of the company in the West and South within recent years, as well as all intangible costs, had not been included in the table. This is true also of the earnings of a couple of power companies which for one reason or other could not properly be' included. Investmerrl- -fbr Carrying in Business per |) 100,000 Yearly 6ross Earnings §.§.§.11 8 8 8 I Consfrucfion , I I I Trac/inqr ManufOfcrfur/rrg' Miningr Te/ephone Gas E/ectr/c li'g/r/- B E/ecfr/c Fai/ways XAgr/cuffiire Tnyesfmerrf in other /Assets ivr carrying' on Business Investment in Buitc/ings \lnvestmerrf- in P/ant The figures from 1902 to 1907 cover a "considerable number of companies. In discussing this table, Mr. COMPARISON OF INVESTMENT IN ELECTRIC RAILWAY AND OTHER INDUSTRIES The table presented below shows the annual increase in gross earnings in per cent and the annual expendi- ture for construction per $100 of gross earnings. As shown, the average per cent increase in gross earnings for the whole period is 10.7 per cent and the average annual expenditures for construction is $27 per $100 of gross earnings. The corresponding averages up to the year 1914 were 12.1 per cent and $37 respectively. These figures show conclusivel.y that the amount spent for new construction has been subnormal for several years. If service is to be maintained in an adequate manner Pcrcpntage Amount Spent on Increase in Construction per Gross $ 1 00 of Gross Year Earnings Earnings, Dollars 1902 20.0 76.00 1903 16.0 57.00 1904 10. 0 28,00 1905 12.5 31.00 1906 18.0 42.00 1907 19 0 62.00 1908 5.0 43.00 1909 16.0 30,00 1910 5.0 35.00 1911 3.8 42.00 1912 10.0 23.00 1913 10,0 29.00 1914 2.1 24.00 1915 *6.3 12.00 1916 8.9 13.00 1917 13.4 11.00 1918 18,7 11.00 Average 10.7 27.00 * Decrease, these deficiencies will have to be made good thus in- creasing the demand for new capital to a figure which is considerably above normal. At present the com- pany is calling on its power plants to do more than they were intended to do and its cars and track to last longer and do more than in normal times. It is taking chances on breakdovsms and service interruptions. Mr. Bradlee attributed the decreased earnings during the earlier part of the war period to poor business conditions and the ravages of the jitney bus. July 26, 1919 iiJLECTRic Railway Journal 181 Data of the Industry Data showing the present state of the industry were presented by J. W. Welsh, special engineer American Electric Railway Association. The information was arranged in about forty groups, each group consisting of a table, a chart drafted therefrom and a description of the data. The data in the main were derived from the census reports, with estimates for 1918 based upon replies to questionnaires sent out by the association. Representative charts and tables presented by Mr. Welsh, with descriptions, are reproduced. Fig. 1 This chart illustrates the retardation of the growth of electric railways in recent years. The prmcipal elements of physical property, such as the number of passenger cars and the miles of single track, are plotted as well as the number of employees. The 1918 values have been estimated by comparison with a group of 345 com- panies for which data were available in both the 1917 census and that for 1918. The rate of growth is indicated by the upward slant of the lines. It is noticeable that this rate shows a decided falling-off since 1907 except for the number of employees, and in all cases since 1912. Table I — This is based on the reports submitted to the American Electric Railway Association by 345 companies for the calendar years 1917 and 1918. These companies represent more than 80 per cent of the gross earnings of all electric railways in the United States and are there- fore believed to be representative. This is demonstrated by a comparison of the income ac- counts of this group of companies with the returns of the 1917 census, as the two groups of figures check very closely. For example, the operating ratio of this group is 65.14 per cent, while the operating ratio for the 1917 census is 64.8 per cent. A most striking element in the comparison of the 1918 accounts with the 19i t is a diminution in net income amounting to more than "4 per cent. This is largely due to an increase in operating expenses of 18 per cent and an increase in taxes of fnore than 8 per cent, while the operating revenues have increased only about 6 per cent. Fig. 2 — The trend of net operating revenue compared with deductions from income and net income is here illus- trated, and the falling off in these items in 1917 and 1918 is very striking. The values for 1918 bring out most forcibly the critical condition of the industry as represented by a decrease in net operating revenue from approximately $229,000,000 to $193,000,000 and a decrease in net income from approxi- mately $56,000,000 to approximately $20,000,000. Taxes, however, have continued to rise not only in amount but in rate of increase. An interesting comparison may be made between the trend of the curve for net operating revenue, which repre- sents railway operations, and the curve for net revenue from auxiliary operations, which includes other activities than street railways, such as inclined-plane service, ferry- boats, etc. The latter net revenues have continued to in- crease as contrasted with the decrease in the former. Fig. 3 — This chart shows the distribution of net income from all operating electric railways in the United States. A rapid growth is indicated until 1912, after which there has been an equally rapid decline until 1917. From this time to 1918 the slump became disastrous, the net income decreasing from $56,000,000 to $20,000,000. The rate of return has been estimated by applying the dividends as shown by the census reports to the total capital stock. Thus it is seen that the rate of return has never approached 3 per cent even when conditions were b^st before 1912. Since that time it has declined and in 1918 fell below 1 per cent. The surplus, on the other hand, was approximately con- stant until 1912. It declined rapidly in 1912, and in 1918 fell to a deficit of approximately $25,000,000, far in excess of any previous surplus. The apparent anomaly of dividends and a deficit in the same year is accounted for by the fact that the deficit of those companies operating at a loss far exceeded the sur- plus of those companies which were able to declare some dividends. Fig. 4 — The expenses of conducting the various operating departments is shown on this chart. The most noticeable increase for 1917 over 1912 comes in the item of "conduct- ting transportation," in which the principal element of expense is "trainmen's wages." The increased cost of labor and material, however, is reflected in the other items with particular reference to "power," which shows the next most rapid increase. Here the cost of coal has undoubtedly been the principal factor. This is shown by the increased slope of the curve embrac- ing the cost of power. The tremendous increase in operating expenses in 1918 as compared with former years is the most important con- dition illustrated on this chart. The distribution of this expense between the different departments shows that "con- ducting transportation" has been the principal element in the increase, in which the item of "wages" is the controlling factor. There has also been an unusual increase in all items of expense. Fig. 5 — With 1906 as a basis, the percentage increase in trainmen's wages is shown for each year to 1919. The abnormal rise from 474 per cent to 872 per cent over 1906 between 1918 and 1919 is due largely to the decisions of the National War Labor Board. This chart is based on the average hourly rates paid to employees longest in service and represents approximately sixty companies whose individual track mileage is more than 100 miles. The following summary shows the awards affecting train- men granted by the War Labor Board: Maximum Rate per Hour, (Cents) 40 42 42^ 43 44 44i . . . 45 Number of Increases Awarded 7 18 1 4 I 1 26 Maximum Rate per Hour (Cents) 46 46J 47 48 50 54 65 Number of Increases Awarded 3 I 3 13 5 1 1 Total number of awards, 66. In some of these eases, several rates were made in one award. Maximum increase, 71.4 per cent. Minimum increase, 7.5 per cent. Fig. 6 — The total amount of wages and salaries has been plotted, with the percentage of this to railway operating expenses. The approximately level line representing this percentage indicates that the cost of labor has been an al- most constant factor in the increase in railway operating expenses. In other words, the total expense has gone up in almost exactly the same ratio as wages and salaries. table I— COMPARATIVE INCOME STATEMENT OF 345 ELECTRIC RAILWAYS FOR CALENDAR YEARS 1917 AND 1918 1918 Railwa operating revenues $590,710,837 Railway operating expenss 426,082,146 Net operating revenue $ 1 64,628,69 1 Net revenue from auxiliary operations 16,917,673 Taxes on railway operations 38,669,01 1 Operating income $142,877,353 Non-operating income 14,487,720 Gross income $157,365,073 Deductions from gross income 1 46,652,347 Netincome $10,712,726 Total car mileage operated . 1,654,319,023 Total passengers carried 1 1,969,256,764 Total milesof single track 32,570. 21 Operating ratio (per cent) 72.13 * Decrease 1917 $554,674,718 361,315,721 $193,358,997 15,563,861 35,750,567 $173,172,291 1 1,001,832 $184,174,123 142,373,728 $41,800,395 1,722,369,093 12,187.434,043 32,476.64 65. 14 Amount $36,036,1 19 64,766,425 Increase, Per Cent 6.50 17 93 $28,730,306* 1,353,812 2,918,444 $30,294,938* 3,485,888 14 86* 8.70 8. 16 17.49* 31.68 $26,809,050* 4,278,619 14.56* 3.01 $31,087,669* 74.37* 68,050.070* 3.95* 218,177,279* 1 .79* 93.57 0.29 182 Electric Railway Journal Vol. 21, No. 3 The sharp rise in the cost of labor for the year 1918 is also indicated very clearly on the chart. At the same time there has been a corresponding increase in the total rail- way operating expenses. This increase in the cost of labor is, of course, due largely to the increased rates of wages awarded by the National War Labor Board. Fig. 7 — The total taxes in dollars and in per cent of operating expenses indicate a rise both in amount and in rate of increase. The acceleration is most noticeable be- tween 1917 and 1918. Taxes are also segregated for the census years between taxes on earnings and capitalization, etc., and taxes on real and personal property. Fig. 8 — This chart is based on a questionnaire sent out by the American Electric Railway Association to determine the amount expended annually by the electric railway com- panies on paving, cleaning and sprinkling the streets, trans- portation of municipal employees and tolls and maintenance of otherwise public bridges, etc. In addition to this the amount of direct taxes have also been plotted, and in each case the percentage of the gross earnings has been shown. It is evident that in the period up to the beginning of the European War the paving and other indirect taxes were at the maximum, amounting to more than $21,000,000 and 3J per cent of the gross earnings. There has been 6 I 1 1 r-ilOO 22 ^ c^cnc>q>og>giijig)q>q> Fig. 5 Fig. 6 Fig. 5 — Per cent increase over 1906 average scale in trainmen's wages. Fig. 6 — Ratio of salaries and wages to railway operating ex- penses. TYPICAL, DIAGRAMS PRESEN a curtailment in such expenditures as a result of the war situation. Taxes, however, have continued to increase, and they range from 6 per cent to about 6i per cent of the gross earnings. The total burdens of this character, including taxes, pav- ing and other imposts, amount to approximately 10 per cent of the gross earnings. This represents in average fares paid by passengers an amount equal to one-half of a cent per passenger. In other words, if these taxes and other imposts were rescinded, the fare could be reduced by one-half of a cent. Fig. 9 — This chart illustrates in a very striking fashion the relative earning power of four classes of electric rail- way property, as indicated by the ratios of the operating expenses to the operating revenues. The elevated and subway lines have the lowest operating ratio and therefore have the largest proportionate amount of net revenue available for capital charges. It is obvious, however, that this must be the case, since the investment in this class of property is much greater than in surface lines. The larger companies, as indicated by class "A" with annual receipts of $1,000,000 or more, have the next lowest operating ratio, while class "B" ($250,000-$l,000,000) and 50( 1 1 Fig. 7 Fig. 8 Fig. 7 — Total taxes and ratio of these to operating expenses. Fig. 8 — Paving expense and other imposts and taxes. AT WASHINGTON HEARING July 26, 1919 Electric Railway Journal 183 100 90 80 70 c 60 » o 50 40 o. 30 20 10 0, 455 C CLASS £iAss £VAT£Di f/ 4 S 0§ 1902 1907 1912 Fig. 11 1911 15)18 15 14 IJ 12 II 10 o9 ° 7 I ^ £ 5 ^ 3 e 3^ 2 A-S'/oRefurn on Cosi of Road . and Equipment B' 1% Return on Cost of Road and Equipment C= 6% Return on Cost of Roaa ■ and Equipment - D- Operating Revenue — 1917 1916 Fig. 9 — Ratio of operating expense to operating revenue for (A) larger companies, (B) medium, (C) smaller companies. Rapid transit lines are also shown. Fig. 10 — Net capitaliation, outstanding capital stock and funded debt. Fig. 11 — Cost of construction, equipment and real estate com- pared to net capitalization — decline in yearly capital additions. Fig. 12 — Total cost of service compared to operating expenses. class "C" (under $250,000) follow in order respectively. Investment in class "A" property is undoubtedly gi-eater in proportion than in classes "B" and "C." It is note- worthy that in all cases the operating ratio in 1917 shows an increase over that in 1912. Fig. 10 — The net capitalization, outstanding capital stock and funded debt of operating and lessor companies are shown in this chart. Net capitalization includes the out- standing capital stock and funded debt of electric railways, exclusive of any duplications such as obligations of lessor companies and stocks and bonds of other business. It there- fore represents as nearly as possible the true investment in property and plant devoted to electric railways. The changing relationship between capital stock and funded debt is clearly brought out. Funded debt has been increasing at approximately the same rate since 1902, while capital stock has been increasing at a diminishing rate. While the capital stock exceeded the funded debt until 1912, at this point they were practically equal, and in 1917 funded debt amounted in round numbers to $153,000,000 and capital stock to $123,000,000. Fig. 11 — The cost of road and equipment is the amount shewn in the census reports for the total cost of construc- tion, equipment and real estate. A comparison is also made between these values and the net capitalization. Fig. 13 Pig H. Fig. 13 — Extent to which railways have used their facilities. Fig. 14 — Operating expenses, operating revenue and ratio of e two — net operating revenue and income. From the increase in net capitalization of each census year over the prior year a figure is obtained from which is determined the average yearly capital additions. This is believed to be a measure of the annual requirements of electric railway companies for new capital. That it is not a true measure, however, is indicated by the decreasing amount of these capital additions from 1907 to 1917, this being due to the impossibility of securing additional funds for electric railway properties. _ Fig. 12 — The total cost of service is composed of operat- ing and maintenance expenses and taxes plus a suitable return on the fair value of the property. This results in an amount as shown for each of the census years in excess of the operating revenues, resulting therefore in a net deficit. The rate of return has been assumed as ranging from 6 per cent to 8 per cent, and in each case a deficit is shown, increasing in amount from 1902 to 1917. This return has been figured on the cost of construction of road and equipment shown in the census reports, as representing as nearly as possible the total investment in electric railway property and plant. Fig. 13 — The traffic of electric railways is measured to a large extent by passengers carried and the car-miles operated. These quantities, plotted on the accompanying Fig. 15 Fig. 16 Fig. 15 — Curves showing measure of traffic handled. Fig. 16 — Growth of the automobile industry. TYPICAL DIAGRAMS PRESENTED AT WASHINGTON HE.ARING 184 Electric Railway Journal Vol. 54, No. 4 chart, also show a falling off in the rate of increase since the period between 1902 and 1907. The riding habit is a most useful measure of growth in the electric railway business. This is determined by divid- ing the annual revenue passengers carried by the total population of the country and therefore represents the average number of rides per year for each inhabitant. The chart indicates an increase in the riding habit in every case, but the rate of increase has been falling off since 1907, as indicated by the decreasing slope of the curve since that date. The increase in riding habit was twenty-four rides per inhabitant between 1902 and 1907 ; sixteen between 1907 and 1912; and only nine between 1912 and 1917. A measure partly of the density of traffic and partly of the average length of haul are the revenue passengers per car-mile. This figure shows a gradual increase from one census period to the next, there being but little change from the average value of five revenue passengers per car- mile. This increase indicates either a greater density of traffic or a decrease in the length of average ride per passenger, or both. The car-mile unit, however, has also increased in size during this period so that the actual in- crease has been greater than shown. Table II — In order to take account of the growth in electric railway operations, the accounts have been calculated TABLE II— REVENUES AND EXPENSES OF ELECTRIC RAILWAYS IN CENTS PER CAR MILE 1902 1907 1912 1917 1918 Railway operating revenue 21.63 24.78 27.89 30.39 33.69 a a and b a and b bande f Railway operating expense 12.25 15.15 16.51 19.69 24.28 aandc aandd aandd d and c f Net operating revenue 9.38 9.63 11.30 10.70 9.39 aandc a, b, d a, b, d b, d, e f Taxes 1.20 1.22 1.82 2.14 2.41 aandb aandb aandb bandc f NOTE — The above figures are based on the following sources: (a) United States Census 1912, page 186, Table 5. (b) Advance Report, Table 5. (c) United States Census 1912, page 311, Table 162. (d) .'Advance Report, Table 162. ( e) United States Census, Typed Advance Summary released April 2 1 , 1919. (f) Estimate of 1918 cnsus for 345 companies. on the car-mile basis. This is the most common measure of the extent of electric railway operations. From this it is seen that the relationship previously established on a gross- amount basis are still maintained. Fig. 14 — This information is based on the monthly re- ports submitted to the American Electric Railroad Asso- ciation and" covers a sufficiently large group to be typical of the situation generally. This chart shows the operating revenue, operating ex- penses, net operating revenue and operating ratio for a number of companies, for the calendar years 1916, 1917 and 1918, and an estimate for 1919 based on the first four months. The 1919 values are of interest in bearing out the trend of increase for the items operating revenues, operating ex- penses and operation ratio. The net operating revenue continued to decline in 1919 as during the previous years. Fig. 15 — In order to show the extent to which electric railways have made use of the facilities at their disposal, there have been plotted upon this chart the principal ele- ments of traffic statistics on a unit basis, such as the number of revenue passengers and the number of car-miles. The unit chosen in the case of the passengers carried is the annual revenue passengers per passenger car. This interesting curve shows a decidedly upward trend, indi- cating a constantly increasing use of the car equipment. As this is on an annual basis it is, of course, impossible to say how much of this represents increased crowding of cars in the rush hours and how much is due to the im- proved load factor due to the growth of traffic during the mid-day and after-supper periods. Of course the increased number of revenue passengers per passenger car is also in part accounted for by the in- crease in the size of the cars in later years, but on the average there has not been such a proportionate increase in the size of cars as to account for the increase showm by this curve. Another factor which is undoubtedly represented by this curve is the increased use of passenger car equipment re- sulting from improved methods of scheduling, such as turn- back service, etc. This permits a greater use to be made of each car in service. This latter point is further illus- trated in the curve entitled "revenue car-miles per passen- ger car." This shows an upward trend and indicates a greater service performed by each passenger car for each succeeding census year. The revenue car-miles per mile of track are a measure of the average frequency of service and to some extent the density of traffic. With the growth that has been made since 1902, the revenue car-miles have not kept pace with the track extensions. This is partly due to the use of larger cars, which are permitting a reduced mileage for the same service and partly, no doubt, to there being no necessity for the corresponding service in outer districts where these extension have generally occured. Fig. 16 — The startling growth in the use of automobiles is well illustrated on this chart, which shows the situation from 1914 to 1918 inclusive. There is also plotted the number of inhabitants per passenger vehicle and the num- ber of families per passenger vehicle. The tremendous growth of the automobile industry in 1918 is shown by the six millions of vehicles in use, equivalent to one automo- bile for about every five families or about every twenty individuals. The source of this information is the report of the National Automobile Chamber of Commerce for 1919, and it is based upon the number of licenses issued by the various states. Competition of Motor Vehicles* By L. S. Storrs President The Connecticut Company, New Haven, Conn. THE rapid increase in the privately owned automo- biles has had a most disastrous effect upon the gross revenues of the various electric railw^ay properties. In the early years of the automobile the high first cost and uncertainty of operation limited their ovi^ner- ship to those fortunate individuals who before that had used horses. Now, however, the low cost of new cars and still lower cost of used cars has placed the automobile within the reach of all but the most un- fortunate, and the limitation of their use seems to be solely one of the traffic possibilities in the large cities. It is a common thing nowadays to see lines of automo- biles parked outside some industrial plant, all ovraed by the workers in that industry, each car being used to capacity by the neighbors of its owner working in the same plant. It is customary now to send the chauffeur down town on any errand that heretofore was the occasion for paying the street railway two or more fares. To obtain an even greater distribution of this relatively new type of conveyance the leaders of the automobile industry have adopted a new slogan "The World Owes You a Car," the particular advertising under the caption being intended to create dissatis- faction in the minds of those individuals not fortunate enough to possess already such a means of conveyance. As showing the rapid increase in private cars it might be said that in Massachusetts there has been an increase in pleasure cars from 3241 to 160,486 in fifteen years. This is exclusive of motor trucks and motor cycles. The effect of this increase is reflected by the railway situation in the state. Statistics for the country, for the last four years of persons per pleasure car show a decrease from 62 in 1914 to 19 in 1918. Dur- ing last year 5,352,350 pleasure cars were registered in a population of 105,253,300. This means a car for practically every five families. The popularity of this form of transportation within the cities at least is due entirely to the great increase in smooth permanent pavements, a very large proportion of which have been paid for by the electric railways. Figures are not available giving the exact annual cost to the railways of paving alone, but this item taken together with all other imposts exclusive of *Abstract of statement presented at hearing of Federal Elec- tric Railway Commission, Washington, July 21, 1919. August 1, 1919 Electric Railway Journal 185 taxes amounts to about $16,000,000. In the State of Connecticut the car riders have been called upon to make a contribution of $2,500,000 in the past eight years for permanent pavements to provide comfortable roadways for those more fortunate individuals who can ride in automobiles. It is of record that in Portland, Oregon, the electric railway has had to invest $2,000,000 in permanent pavements. According to the Census enumer- ation there has been made available for permanent pavements in the cities and improved highways through- out the country a grand total of $255,836,000, all to be furnished by the taxpayers in general for the conven- ience of those owning automobiles. This amount repre- sents a per capita contribution of slightly less than $2 during 1917. With the great amount of smooth permanent pave- ments in the cities and the low price of small auto- mobiles, there has sprung up a measure of competition with the electric railways that in certain parts of the country has had serious effects upon the revenues of the transportation utility. And as a development a large jitney bus has been developed and is gradually replacing the smaller car in a large measure. In those states where the essential nature of trans- portation has been fully recognized laws have been en- acted placing upon this competitor burdens similar to those imposed upon the railways, in other words, re- quiring the jitneys to operate over defined routes and upon regular schedules which extend over a great por- tion of the day, also holding them liable for accidents and requiring a tax somewhat equivalent to that paid by the electric railway. This method of regulation recognizes the requirements of the public for regulated transportation. The following are the apparent reasons for the existance of this form of service: The weather for the greater portion of the year is such as to render this work more congenial to the average man than any form of industrial occupation and as it requires such a small investment it offers an attractive field for the operator to become his own boss. Failing to appreciate the necessity for adequately pro- viding for depreciation, the operator seems to be earning good money, although the work requires about fourteen hours or more per day instead of eight. The excellence of the city pavements (paid for in a large measure by the transportation utilities) makes easy riding and lower upkeep charge than would otherwise be the case, and without exception jitney routes are confined to the well paved streets. From the standpoint of the public this service ap- peals for various reasons (1) The ordinary workman prefers to ride in a jitney because of the sensation of riding in an automobile rather than in a street car. (2) The speed of the service is a distinct attraction. (3) The frequency of the service affords a means of transportation whenever most convenient. In New Jersey there is no effective regulation, and the growth of this form of competition has been direct- ly apparent upon the attempts of the electric railway to obtain an increase in revenues. With the introduc- tion of the penny charge for a transfer and the 7-cent fare, the business of the jitney took an enormous spurt. In May, 1918, in all the cities covered by the operations of the Public Service Railway, 601 cars were licensed and reporting earnings equivalent to $1,608,167 per annum, while in April 1919, 1040 cars were reported to be in operation reporting earnings for the month at the rate of $3,255,763 per annum, an increase of 73 per cent in the number of cars and 102.4 per cent in actual earnings. The tremendous growth of the jitney under the 7-cent fare is especially significant, but of almost equal importance is the lesson of the extent to which the jitneys increased in importance under the New Jersey Law when both carriers were operating on a 5-cent basis. The five cent fare plus the provision of the State law were not sufficient to curb the jitney. No serious attempts has been made in Connecticut to regulate the jitney, with the result that the greatest development of this form of competition in the United States is to be found in Bridgeport where the jitneys are operating in parallel service with the electric rail- ways throughout the city. The following tabulation of the relative use of these two forms of service shows the service effect upon the utility revenues: COMPARISON OF NUMBER OF PASSENGERS CARRIED BY STREET RAILWAYS AND JITNEYS, CLASSIFIED BY LENGTH OF RIDE. On the On the Per Cent. Railway Jitney Total Taking In Both Directions Jitney Riding within If miles radius of center of city 5,432.947 5,561,451 10,994,398 50.58 Riding more than II miles but less than 2 miles from center of city 4,805,761 10,620,347 15,426,108 68.85 Riding more than 2 miles but less than 2J miles from centt r of city 3,395,431 2,758,041 6,153,472 44.82 Riding more than 2? miles but less than 3i miles from center of city • 239,724 239,724 Riding more than 35 miles but less than 4^ miles from center of city 860,048 860,048 Total 14,733,911 18,939,839 33,673,750 56 245 The possibility of originating severe jitney com- petition with any change in the rate of the fare makes any such attempts of doubtful value, especially as the radius of jitney activity is confined to the most populous portions of the communities where the most profitable (short haul) street railway service is oper- ated. It is useless to assume that this form of convey- ance can replace the established transportation utility, for the jitney cannot be forced to operate except under the most favorable conditions and only at such times as there is a profitable load offering. A stormy day will drive most of the cars off the streets and a heavy snow storm will cause a complete cessation of service. A careful survey has been made in one of the New England cities having a population of 180,000 from which it has been determined that if the motor bus with a seating capacity of 20 passengers were to be the sole medium of the city transportation it would re- quire the entrance to the central business area of re- latively few blocks of 6 J cars per minute during the rush hours of the day to provide transportation for intending passengers, a perfectly impossible requirement with any city plan now in existence. The advent of the motor truck has made great in- roads into the revenues of the electric railways. It is a common thing to see large trucks provided with make- shift seats filled with parties of pleasure seekers bound on picnics or other forms of recreation, all business that was formerly done by the street railways. A by-product of the street railways that has been found to be very profitable has been the transportation of goods, usually in small packages, or by express. The growth of the motor truck service has in some places entirely absorbed the business previously done by the railway and elsewhere has made serious inroads in it. 186 Electric Railway Journal Vol. 54, No. 4 The Taxation of Electric Railways* By Charles J. Bullock Professor of Economics, Harvard University IN THIS statement the taxation of electric railways will be considered under the following heads: The existing methods of taxing electric railways ; the amount of the taxes and other public contributions paid by electric railways; the principles which ought to govern the taxation of electric railways; and the measures which ought to be adopted to relieve electric railways in the present crisis. Data on the first subject may be found in the U. S. Census Report on the Taxation and Revenue Systems of State and Local Governments, 1914 ; the Report of the U. S. Commissioner of Corpora- tions on the Taxation of Corporations, 1909-1915; and the Report of the Special Commission on the Taxation of Corporations, of the State of Connecticut, 1913, Appendix. Statistics concerning the amount of taxes paid by electric railways may be found in the various census reports on electric railways. Existing Methods of Taxation Payments which electric railways are required to make to the various governmental authorities, federal, state, and local, may be conveniently divided into two classes, taxes proper, and other public contributions. The former include property, income, business, license, franchise, and other taxes, which electric railways pay in common with other corporations and, in many cases, with individual taxpayers. The latter include a great variety of charges such as payment for street paving and other work in or on the streets, free transportation for public employees and other similar services rendered governmental authorities, payments, frequently of a contractual character, for the privilege of using the streets, and miscellaneous minor items. Concerning these payments it is impossible to make any summary statement be- cause they differ so widely in character. The taxes which electric railways pay may conven- iently be summarized as follows: Property Taxes. In forty-three states and the Dis- trict of Columbia, electric railways come under the general property tax. In twenty-two of these states (Alabama, Georgia, Idaho, Indiana, Kansas, Maryland, Missouri, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Tennessee, Utah, Virginia, Vermont, Oklahoma, Washington, West Virginia, Wisconsin) either all the property of such railways or all of what is known as their "operating" property is valued by some state official or board. It is possible that Wyoming should be added to this group of states, but I have been unable to determine this point and shall therefore omit Wyoming from consideration in this statement. In a few of these states, such as Wis- consin and Vermont, the taxes levied are imposed by and payable to the state government, but in most cases the valuation fixed by state authorities is certified back to the local taxing districts for taxation at the local rate. In fifteen states (Arizona., Arkansas, Delaware, Florida, Iowa, Louisiana, Michigan, Minnesota, Mis- sissippi, Montana, Nebraska, New Jersey, South Caro- lina, South Dakota, Texas) the property of electric rail- * Abstract of statement presented at hearing of Federal Elec- tric Railway Commission, Washington, July 23, 1919. ways is locally assessed and taxed exactly like any other property. In five states the assessment of the electric railways is divided between state and local authorities. In Massachusetts some or all of the tangible property is subject to local taxation, while a state tax is imposed upon the franchise. Colorado has state assessment of electric railways operating in more than one county and local assessment of railways operating in only one county. Illinois has state assessment for railways in- corporated under the general railroad act, while for other railways it prescribes local assessment of the tangible property and state assessment of the fran- chises. In Rhode Island and the District of Columbia property taxation is confined, respectively, to tangible property and real estate, while the intangible property is reached by gross receipts taxes and is not subject to taxation as property. In Rhode Island the assessment of the tangible property is made by the local assessors. Gross Receipts Taxes. In three states (California, Connecticut and Maine) the "operating" property of electric railways is exempt from taxation, and, in lieu thereof taxes are levied by the state governments upon gross receipts. Real estate not used for "operating" purposes is subject to local taxation, like other real estate. A considerable number of the other states (Alabama, Massachusetts, New Jersey, New York, Ohio, Pennsyl- vania, Rhode Island, South Carolina, Texas, Virginia) levy taxes upon gross receipts of electric railways, usu- ally as additional taxes or in lieu of taxes upon fran- chises or intangible property. In Massachusetts, how- over, the gross receipts tax is in lieu of other contribu- tions which the railways were formerly required to make in connection with their right to use the streets. Taxes on Dividends. At least two states, Massachu- setts and New York, provide for taxes on dividends in excess of 8 per cent. It does not appear, however, that occasion has ever arisen for the imposition of such taxes in either state. Taxes on Capital Stock. In addition to other taxes, at least 14 states (Arkansas, California, Georgia, Idaho, Nevada, North Carolina, Oregon, Pennsylvania, Tennes- see, Texas, Utah, Vermont, Virginia, West Virginia) impose taxes on the capital stock of electric railways. Usually these taxes are comparatively light, but in times like the present they are not a negligible factor. In Pennsylvania the capital stock tax is levied at the rate of 5 mills upon the dollar and is (except in Philadel- phia and Pittsburgh) in lieu of a tax upon the operating property of electric railways. This tax is supplemented by a tax levied at the rate of 4 mills on the dollar upon corporate loans, which tax is deducted by the corpora- tions from the interest paid to the bondholder, except in cases where companies have assumed liability for the tax. In addition to these state taxes electric railways have been subject in recent years to a federal tax upon their capital stock. License Taxes. A considerable number of states im- pose either state or local, sometimes both, license taxes which take various forms. The aggregate amount of such charges is sometimes considerable and since they are always levied in addition to other taxes they are a factor of no small importance. Federal Income Tax. Since 1909 electric railways have been subject to a federal tax on their net income, at first an excise imposed on corporations and since July 26, 1919 Electric Railway Journal 187 1913 a part of a general income tax, which is at the present time a substantial burden. This it is entirely in the power of the federal government to remove, if it desires to co-operate with the state and local gov- ernments in rehabilitating the electric railway industry. Federal Excess Profits Tax. The Federal Excess Profits Tax must also be mentioned even though most electric railways have shown so small a return as to exempt them from the payment of any tax under this head. Taxes and Public Contributions Paid by the Electric Railways In the year 1917, according to the U. S. Census, the electric railways of the United States paid taxes and other contributions amounting to $63,279,000 which may be classified as follows : Taxes on real and personal property. ., $21,804,000 Taxes on earnings and capital and other bases 23,952,000 Total taxes $45,756,000 Other public contributions 17,522,000 $63,279,000 The total payments for taxes and other contributions amounted in this year to 8.67 per cent of the gross earnings of the electric railways. This percentage would be moderate in the case of a business where the gross receipts, or annual turnover, amounted to two or three times the capital investment; but it is exceedingly heavy in an industry where there is a capital investment amounting to several dollars for every dollar of annual gross receipts. Although net operating revenue has actually decreased in recent years, the taxes and other public contributions of the street railways appear, at least down to the year 1918, to have increased. In 1912 the total taxes and other contributions, according to data compiled by the American Electric Railway Association from Census Reports and from replies from 214 companies, amounted to $50,086,000. In 1916 these charges had increased to $62,106,000, while in 1918 they had risen to $65,561,000. The total of these payments for 1912 amounted to 8.55 per cent of the gross earnings of the railways. In 1918, they amounted to 8.57 per cent. The most striking commentary upon the present situ- ation of the electric railways v,'ith reference to taxation, is the fact that in the year 1918, when the revenue remaining after defraying operating expenses decreased from $228,898,999 to $192,615,000, the taxes paid by electric railways actually increased from $45,756,000 to f49,496,000. Even more striking is the comparison of the amount paid in taxation with the net income of elec- tric railway companies after making deduction for all charges. This net income in 1917, was $56,450,000, after the payment of taxes amounting to $45,756,000. In 1918, however, the net income fell to $20,183,000 after paying taxes amounting to $49,496,000. These statistics have been taken from the tables compiled by the American Electric Railway Association for the information of this commission. The figures for 1918 are in part estimated. The Principles Which Ought to Govern the Taxation of Electric Railways There are three theories which have been advanced at different times concerning the taxation of street rail- ways and other public service corporations. The first of these is the theory that public service corporations should be subject to taxation much heavier than that imposed upon other classes of business or property because they hold and enjoy special franchises of great value. A generation ago, before our federal and state governments had undertaken to regulate effectively the service and charges of public service corporations, this theory provided a natural and logical remedy for some of the conditions which existed in the days of unregu- lated monopoly. Taxes upon the property or business of unregulated monopolies tend to fall upon the profits of the monopolists, and by their agency the government secures a share of the profits resulting from the pos- session of valuable public franchises. But the situation was radically changed when public service corporations were brought under effective regulation. Under the latter condition, regulation of rates and service must proceed upon the theory that the corporations have a right to earn a reasonable return upon their invest- ment. Special taxes upon regulated monopolies increase the expense of providing the service and therefore in- crease the rates necessary to yield a reasonable return or diminish the resources available for extending and improving the service. Effective regulation of public utilities not only removes the evils which in form_er times led to the demand for special taxation, but also alters the incidence of such taxation. Since we are now committed to the policy of regulation of public service corporations we should re-adjust our theories of taxa- tion to present-day facts and conditions. Utility Taxes Should Be Governed by Rule of Equality The second theory takes effective regulation of public utilities for granted, and holds that such regulation makes it unnecessary to consider whether the taxation of public service corporations is heavier or lighter than that imposed on other business or property. Such cor- porations, it is said, might even be exempted from all taxation provided that their charges were reduced or their service improved in a measure corresponding to the benefits they derive from such exemption. And, on the other hand, it is argued that taxes upon such corporations may properly be increased to any desired extent provided that rates are increased in a corre- sponding degree. In the formel* case the public will secure untaxed service and in the latter the government will employ the corporations as an agency for collect- ing special taxes. In neither case is the interest of the corporations affected, either favorably or adversely. This theory upon examination will be found to ignore the effect of taxation upon the real parties at interest, namely, the taxpayers and those who use the services of public service corporations. Between these two classes of people there is no necessary identity of interest. There remains the third theory, that the taxation of public service corporations should be governed by the general rule of equality, which should be the con- trolling principle in governmental affairs. By equality is not meant absolute uniformity of treatment irrespec- tive of all differences in the nature or condition of the objects upon which taxation is imposed. Differences in the form and method of taxation are perfectly consistent with the principle of equality provided they are justi- fied by the circumstances of the case and result in a substantial equality of burden. Under normal condi- tions public service corporations should be taxed neither more nor less than other classes of business 188 Electric Railway Journal YqI. 54, No.. 4 concerns. If they are taxed more, consumers are burdened for the benefit of the taxpayers who would otherwise have to contribute the amount of revenue raised by special taxation of public utilities ; if they are taxed less, then the consumers receive a subsidy which must be made up by additional charges exacted from taxpayers. This theory has received very generar ap- proval in recent years and may safely be accepted as cur point of departure in the present case. But this theory of equal taxation for public service corporations, like any other general theory of taxa- tion, has its necessary qualifications. A great financial emergency would justify a government in employing such corporations as agents for collecting heavy emer- gency taxes from those who use these services. And, upon the other hand, exceptional circumstances may justify a reduction or total abolition of taxes of par- ticular companies or particular classes of public service corporations. To secure the construction of a new railroad, exemption from taxation for a period of years may be properly offered as an inducement to a company willing to construct a road that is not likely to prove immediately profitable. In general it may be said that whenever special circumstances exist which justify the government's levying special taxes upon consumers or offering a bounty for some necessary public service, it is possible to justify a departure from the general principle of equal taxation. Electric Railways Pay Heavy Special Contributions The application of this theory of equal taxation to the case of the electric railways gives the following result: Under ordinary conditions the property and busi- ness of such companies should be taxed like other property or business. Nothing but fiscal emergency can justify the imposition of special taxation and noth- ing but an emergency seriously impairing the earn- ing powers of such railways can justify either a direct or an indirect subsidy. The only practical difficulty in applying the principle arises from the fact that the occupation of the street by railway companies seems to occasion some extra expense for upkeep which the companies should fairly be called upon to meet. This extra expense is difficult, and perhaps impossible, to estimate with even approximate accuracy. It seems to justify in normal times the payment of an extra con- tribution by such companies, but it has sometimes been made an excuse for imposing special taxes which con- siderably or even greatly exceed the figure which would be justified. Under the federal income excess profit taxes there has been no discrimination against electric railways, and if times were normal there would be no ground of complaint. The taxes levied by the state and local governments upon the property of such railways are in principle perfectly justified and give no occasion for complaint except in cases where valuations have been placed at a higher proportion of the true value than is generally applied to the property of individual taxpayers. But the numerous additional taxes imposed upon fran- chises, earnings, and capital stock have frequently re- sulted in the imposition of a total amount of taxation considerably exceeding that which could be justified un- der the principle of equality. The same is true of the payments, contractual or other, which have been required as a condition of laying tracks in the streets." In 1917 electric railways of the United States, in addition to all taxes, which were undoubtedly very heavy, paid $17,522,000 in other contributions, a sum which un- doubtedly exceeded the amount which they would have had to pay if the theory of equal taxation had been followed. Measures to be Adopted to Relieve the Electric Railways in the Present Crisis The financial crisis which at present confronts the electric railways is so evident and so urgent that argu- ment is not needed to demonstrate that, along with other measures of relief, a substantial reduction should be made in the amount of taxes which they are re- quired to pay. How far this reduction should go must depend in considerable degree upon the relief afforded in other directions. The following suggestions are of- fered for the consideration of the commission: 1. The special contributions now required for the use of the streets ought imm.ediately to be reduced to an amount that will no more than cover the extra cost of maintenance occasioned by the presence of car tracks. 2. The other special taxes levied by state and local, governments in excess of those imposed on ordinary business enterprises ought also to be reduced or abol- ished, as the case may require. 3. Relief from the ordinary taxes imposed upon property can be justified only upon the ground of ex- treme emergency, and such an emergency can not be held to exist until the companies have been relieved of taxes that violate the principle of equality and have also been permitted to increase their rates of fare as far as may be expedient and practicable. 4. If other measures fail to give adequate relief and it seems necessary to relieve the electric railways from the property tax, the best procedure would prob- ably be to exempt them from taxation on their prop- erty for a limited term of years, and then to impose a tax upon their net income. 5. If the federal government is to recommend meas- ures of relief, which the states are expected to adopt, it would obviously be appropriate for it to lead the way by relieving electric railways, at least for a limited term of years, from some of the federal taxation that is now imposed upon them. IVY COVERED POLE Training Ivy to Cover a Pole The poles of a trolley line cannot always be made "things of beauty," but in some residential districts a little co-operation with prop- erty owners may assist in in- teresting them in keeping conditions more attractive. The accompanying illustra- tion, which was taken On the lines of the Santa Cruz Electric Railway at Santa Cruz, Cal., shows how easily ivy takes to poles in that city. News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION . PERSONAL MENTION Chicago Situation Clearing Wage Compromise Now Seems Likely With Surface and Elevated Men — Increased Fares an Issue With practically unanimous indorse- ment of a strike to enforce the de- mands of trainmen of the surface and elevated roads, Chicago spent an anxious week while awaiting develop- ments. It was practically certain, how- ever, at the time of going to press that there would be a compromise in the wage settlement and that an in- crease in rates of fare would be forth- coming from the Public Utilities Com- mission of Illinois. 85-Cent Rate Demanded The men had asked for an 85-cent maximum wage on the surface lines and 87 cents on the elevated. The com- panies had replied that no increase over the War Labor Board scale would be possible without more revenues. On July 18 the members of both unions voted on the strike proposition and there were few dissenters, the time for going out being left, however, for fu- ture consideration. The following day Mayor Thompson appointed a mediation committee com- posed of himself, four aldermen, and one representative from each of the companies and each of the unions. The" employees did not seem impressed with the aldermanic selections, although three out of the four were former union men. On the same day Governor Lowden directed the Public Utilities Commis- sion to investigate all phases of the controversy and report personally to him how the State could best act to prevent a transportation tie-up. The Governor asserted that such a suspen- sion would constitute a menace to Chi- cago and to the entire State. This ac- tion by the Governor tended to restore confidence at once. Insist Upon Eight-Hour Day Union representatives had a long session with the utility commissioners on July 21, but the result of the con- ference was kept secret. After the adjournment of that meeting the union officials joined Presidents Busby and Budd at an open hearing with the Mayor's committee. The Mayor stated that the purpose of the conference was to prevent a strike and he wanted to impress on employers and employees that a settlement must be reached eventually and he hoped it could be arrived at without inconveniencing the public. At his mention of arbitration, the union representatives said there were two questions which could not be arbitrated. They would insist first on a concession of an eight-hour day ana time and a half for overtime. President Busby stated that inas- much as the men had not yet called on him he did not think they should take too positive a stand without further discussion. The outcome of this ses- sion was to arrange for further ne- gotiations with the companies. The following day the company officials had a private conference with the utility commissioners. It was expected that before the end of the week the commissioners would have complete in- formation from both sides for their report to the Governor, with the possi- bility of an open hearing then being called to fix rates of fare. Earlier in the week the elevated roads had filed a new petition with the commission, asking for a reopening of the rate cases. Employees of the Aurora, Elgin & Chicago and the Chicago & West Towns Railway companies are insisting on a wage scale similar to that which may be fixed for Chicago. The latter company has filed a petition with the State authorities asking for a 2-cent in- crease over the rate schedule allowed last November. The Chicago City Council refused to heed the proposal of an alderman that the 55 per cent allowance to the city from the railways under the 1907 set- tlement be used for wage increases. Increase in Wages in Indianapolis A general wage increase of 3 cents an hour has been granted the motormen and conductors of the Indianapolis (Ind.) Street Railway, effective on July 15. The new schedule ranges from 37 to 42 cents an hour and replaces the schedule of 34 to 39 cents an hour which was established last fall. This wage inci-ease was voluntary on the part of the company. A statement was issued by the board of directors of the company explaining that it was decided that an advance in wages should be made to the men on account of the continued high cost of living. It is estimated that the increase in wages will amount to $125,000 annually. The statement of the directors intimates that it will be necessary for the com- pany to appeal to the public authorities for an increase in fare beyond the 5- cent flat rate granted by the Public Service Commission last fall, in order to meet the added burden of increased operating expenses and wage increases just granted. It is reported that the company may petition the Public Serv- ice Commission for a 1-cent charge for transfers. Subway Proposal to Voters Proposal for $15,000,000 of Bonds in Cleveland May Be Submitted to Referendum This Fall The Street Railway Commissioners of Cleveland, Ohio, will decide within a short time whether it is best to sub- mit a bond issue of $15,000,000 to the voters this fall and secure funds suf- ficient for the construction of the sub- way units recommended by the engi- neers, Barclay Parsons & Klapp, or for a smaller sum that will cover the cost of the two units that are most urgently needed at the present time. In order to eliminate the well to the short underground entrance to the Su- perior-Detroit bridge, the commission will probably recommend that the sub- way to the west side of the city be the first one undertaken; or this and the Ontario Street section or unit might be built at the same time, as the Ontario Street unit will in all probability hold second place. Euclid Avenue will come third and Superior Avenue fourth. Should the commission be able to make an arrangement with the Union Terminals Company to handle the Ontario Street cars and bring them directly into the proposed new union station, about $1,000,000 in the cost of construction of this section would be saved. It is possible that the plans for the Ontario Street unit will depend somewhat upon the date of beginning construction of the new station. It is believed that the authorization of only a portion of the proposed $15,- 000,000 bond issue at a time, as needed, might handicap the commission in case it should be found necessary to change the plans and develop some other por- tions with those first contemplated. If the entire issue is authorized at one time, it would then be possible to fol- low any course that seemed best in carrying out the construction work. Toronto Offers to Sell R. J. Fleming, manager of the Toronto (Ont.) Railway, in a letter to the Mayor offering to sell out to the city, says: "I have been agked if the com- pany would be willing to sell to the city the property now upon the terms and conditions provided for sale in September, 1921. In my opinion the directors would entertain such a propo- sition favorably, provided the city would agree to take until September, 1921, the power required in operating the property, upon the conditions named in the contract made in 1903 between the Toronto & Niagara Power Company and the officials of the Toron- to Railway." 190 Electeic Railway Journal Vol. 54, No. 4 Boston Elevated Strike Ends Eight-Hour Day and Wage Increase Estimated at $1,500,000 a Year for Carmen Alone Car service was resumed on all lines pj^'^j^^^re^^'J^o^ji'^®^' ^°tormen: of the Boston (Mass.) Elevated Rail- xeit nine montiis '.'.'.'.51 way at 4 a.m. on July 21, following Tiiereafter 62 a total shut-down of ninety-six hours Rapid Transit Lines, Guards: resulting from the strike of union em- First three months .^o 1 J , J T 1 1 rr ml. Next nme months 51 ployees declared on July 17. The men Thereafter 55.5 returned to work upon being awarded „ . ^ . ^ , ,. . J . J. J. ^ Rapid Transit Lines, Brakemen : increases in pay, estimated at a total First three months 47 of $1,500,000 a year for blue uniform Next nine months 50 i\u • u J Thereafter 53.5 men, and the eight-hour day. Henry B. Endicott, Boston, served as The former scale for surface line chairman of the arbitration board, motormen and conductors was 43, 46 H. Ware Barnum, counsel, represented and 48 cents an hour; for rapid transit the company, and J. H. Vahey was the motormen, 45, 48 and 50 cents, union member of the board. It is es- The representatives of the union and timated that the direct loss in revenue of the company agreed upon Mr. Endi- to the company caused by the strike is cott as the third member of the arbitra- about $200,000, and that the loss in tration board on the evening of July wages suffered by the employees is 20, and sessions were opened at the $160,000. State House on the morning of July everytliing in the way of material and the necessary advance in wages by reason of the increased cost of living, to expect to be transported for less than the present amount of fare. It was the plain duty of the trustees under the law to advance the fare to 10 cents. They could have done nothing else, and no one has any right to criticise them for doing so. Local transportation in the Boston district was handled during the strike by a greatly increased steam railroad service on all lines radiating from the city, by private automobiles, jitneys and horse-drawn vehicles. Although prices were considerably in excess of the Boston Elevated fare for most of the automobile service, comparatively little complaint was heard as to profi- teering. For example, a standard automobile fare of 15 cents was charged between the South Station and Harvard Square, Cambridge, the running time being about fifteen minutes as compared with ten minutes and 10-cent fare on the elec- tric railway system. The congestion TYPICAL SCENES AT DUVEY SQUARE, BOSTON, DURING STRIKE OF ELEVATED EMPLOYEES The maximum pay under the award is 62 cents an hour. The former maxi- mum was 48 cents. The award is retro- active to May 1, 1919. The men de- manded 73i cents. It is declared that the new wage scale and eight-hour day represent the most advanced combina- tion of compensation and working con- ditions thus far achieved by the em- ployees of any electric railway in the country, from the standpoint of the men. Public sentiment was strongly against the men because of the violation of their agreement" to await the finding of the War Labor Board and their un- willingness to await a retroactive award promised not later than Aug. 2 by Chairman Taft. The new wage scale for all the mo- tormen and conductors of the Boston Elevated Railway is shown by the fol- lowing list: Period "Wage Surface Line Employees : First three months of service 50 Next nine months of service 55 Thereafter 60 21. The board adjourned after about an hour to the Hotel Touraine, and Mr. Endicott announced the award to a mass meeting of employees on Bos- ton Common late in the afternoon of that day. In presenting the finding he stated that as soon as possible hearings will be held to determine the wages in detail of miscellaneous union employees of the company. Continuing, he ex- pressed the following views regarding the strike for higher wages and the justice of a 10-cent fare: I realize that through no fault of the trustees the elevated railroad is not in a position to take on extra burdens, but they cannot expect, owing to the high cost ol living, to avoid paying their help good, fair wages. Now, while I greatly regret the liasty and unjustifiable action that led to this strike, I cannot but feel that there is a lesson here which will prevent a similar occurrence You have lost by following ill- judged advice four days' pay, as I feel sure that the award we make would have been made by any fair-minded board. . . . Criticism of the 10-Cent Fare Unjust The criticism of the trustees of the Bos- Elevated Railway about the 10-cent fare, in our opinion, is entirely unwarranted and unjustified, and we do not believe that the riding public has any right, with private ownership and with the increased cost of on the streets and at the steam rail- road terminals, however, was extremely severe during the rush hours. Eight-Hour Day Modifies Scheduled Runs The award provides that in order to construct schedules with an eight-hour platform day and to meet the require- ments of the traffic without largely increasing the force and creating more irregular work in the form of details for the men, a variation in the ratio of runs to be completed within a spread of certain hours is required. It has been ascertained that when a variation is made which permits three- fifths of scheduled runs within eleven outside hours and two-fifths between eleven and fourteen outside hours, a schedule can be constructed with an eight-hour platform day which: (1) Increases the total schedule runs; (2) increases the number of runs under eleven hours; (3) provides many runs under ten hours; and (4) decreases the irregular work to be done by the em- ployees on details. July 26, 1919 Electric Railway Journal 191 Terms of Toronto Strike Settlement Review of Twelve-Day Strike During Which Provincial Railway Board Took Over the Property The strike of the employees of the Toronto (Ont.) Railway has been set- tled and service has been resumed. The strike was unique in that it was the first time in history that the Ontario Railway Board took control of an elec- tric railway on account of default being made by a company in operation. History of Controversy Early in June the employees of the Toronto Railway requested an increase in wages from 37 cents to 55 cents an hour. The company replied that it was quite impossible to pay such a large increase and operate the rail- way, and applied at once for a Board of Conciliation under the terms of the federal act covering industrial dis- putes. The Minister of Labor for the Dominion agreed to the application of the company, which meantime ap- pointed as its representative F. H. Phippen, K.C., while W. J. Hevey of the Trades & Labor Council was ap- pointed as the representative of the men. Judge Barron was chosen as the third member and chairman. The railway employees, however, re- fused to wait until the board had reached a decision and on June 21 voted almost unanimously to go on strike at once. Cars were stopped on the next day (Sunday) at 5.30 a.m. A jitney service was started by automo- biles on Sunday, which was greatly augmented by Monday. On Monday, June 23, the Board of Control for the city of Toronto applied to the Ontario Railway Board for an order directing the Toronto Railway to give a service to the citizens. The order was issued at noon directing the company to proceed forthwith to fur- nish a service. The police were in- structed to protect, but the company did not attempt to operate the cars. Meantime the Conciliation Board began its sittings. On Thursday, June 26, the Ontario Railway Board took control of the com- pany's plant and equipment on the ground that the company had failed to give a service on the three previous days. The board appointed R. C. Har- ris, works commissioner for the city corporation and manager of the Tor- onto Civic Railway, as manager of the Toronto Railway under the direction of the Ontario Railway Board. Manager Offers Compromise Manager Harris called a meeting of the employees on Friday and offered them a wage increase to 48 cents, which was refused. On the following day the Mayor asked the Board of Conciliation tc make an interim report to the Minis- ter of Labor. The strike meantime continued with about 6,000 motor cars used as jitneys together with about 100,000 private motor cars, trucks, etc. On Monday, June 30, the Board of Conciliation adjourned the hearing in order to make an interim report cover- ing the question of wages, and sug- gested 50 to 55 cents with an eight- hour day, but with an increase in fares to the citizens to a straight 5 cents. The suggestion of a 5-cent fare met with strong opposition from the citizens of Toronto. On July 3 the railway employees accepted the report of the Board of Conciliation, but insisted upon guaran- tees that the increased wages would be paid. The report of the Board of Concilia- tion as accepted by the men follows: (1) The board is unable to agree as to wages under present conditions; (2) the company states that the present operating- revenue is not sufficient to enable it to keep up its property, give an effective service, and pay an increase of wages to the men. Recommendations: That there be an in- vestigation of the company's books hy Mr. Bradshaw or Mr. Clarkson, or some other selected accountant, for the purpose of as- certaining the correctness of the company's claims. If it be found that the company's operating revenue is insufficient to meet the situation, that the fare be raised to a straight .5-cent fare, except for children's tickets, which shall remain as at preseni, the whole of the increase to be available to pay the increase in the men's wages, and not to be sub.iect to any percentage pay- ment to the city, which payment is to be based on the present average fare. In the event of this being done, we jointly recom- mend : That the men's wages be increased to 50 cents an hour for the first three months ; to 52h cents an hour for the succeeding nine months, and to 55 cents an hour there- after. An eight-hour day, straight time, to the fullest extent practicable, with a leeway of one-half hour to complete the schedule, for 66 2-3 per cent of the crews, the remain- der to work ends and spares. Time and a half for overtime, which is to commence after eight and a half hours work. All Sunday work to be paid for at the rate of time and a quarter. New Year's Day, Good Friday, May 24, Dominion Day, Civic Holiday, Thanksgiv- ing Day, Labor Day and Christmas Day to be paid for at the rate of time and a half tor all work. Motor and track repair men to be paid the samo rate as the trainmen. Shed men and men who work in the com- pressing and fender rooms to be paid an increase of 16 cents per hour over the pres- ent rate, and extra time as above. It is estimated that the twelve-day strike cost the Toronto Railway in loss of fares the sum of $240,000, while the employees lost in wages $72,000; the city corporation lost in its percentage of receipts from the company about $48,000, while it is estimated the citi- zens paid in extra fares to jitneys about $] 92,000, making a gross revenue to jitney owners of about $432,000. Several days after the settlement the Ontario Railway Board, at the request of the Toronto Railway, relinquished control of the road, and the company resumed ownership and direction of the operation of the cars. Rhode Island Service Suspended All Lines in State Tied Up by Strike of Rhode Island Company Trainmen The employees of the Rhode Island Company, Providence, R. I., went on strike at midnight on July 18 to enforce their demands for increased wages and better working conditions, after several attempts at a compromise had proved unsuccessful. Efforts made since the strike was declared to effect an agree- ment have likewise been fruitless. 10.5 Per Cent Increase Offered According to a statement issued by the receivers of the company at the conferences with the union officers on July 18, prior to the strike, an offer was made by them granting a wage of 53 cents an hour, representing an increase of lOi per cent, the new wage to take effect on July 21, the men to continue working under the 1917 agreement. This offer was refused by the union men, a counter proposal being made for a wage of 55 cents an hour, retroactive to June 1, the date of expiration of the 1917 agreement, conditioned absolutely on a new agreement. This proposal the receivers rejected and the strike went into effect at midnight. The receivers have made no effort to provide sex'vicG. Despite the fact that the first day of the strike witnessed a heavy down- pour of rain which continued until noon, the manufacturers reported that their full complement of employees was at work. Many of the plants had ar- ranged to transport their employees by truck while the advent of scores of "jitneys" made it possible for workers to reach their place of employment without being forced to walk. The Police Commission of Providence an- nounced that during the emergency the regulations requiring operators of "jit- neys" to take out licenses before com- mencing business would be suspended. The result was an outpouring of cars of every description which served most effectually to provide transportation from every section of Providence. Men Make Counter Proposal On July 21, the third day of the strike, the receivers sent a proposal to the union officers offering to pay the maximum wage of 55 cents an hour with a continuation of the 1917 agree- ment, but the settlement of the Boston car strike with the award of 62J cents an hour interjected a new issue into the conflict, and the union men at a mass meeting rejected the receivers' offer and countered with a demand, based on the Boston award, of 60 cents an hour, retroactive to June 1 and for an eight-hour day. The receivers in turn rejected this proposal and also refused to submit the matter to ai'bitration, declaring that as they were instructed by the Superior Court to fix proper wages, they felt they had no authority to delegate this power to others. The receivers declared that no schedule of fares could be put into operation which would yield the necessary revenue even with all State and municipal taxes removed. 192 Electric Railway Journal Vol. 54, No. 4 Wage Case Reopened On the ground that changed condi- tions make higher compensation neces- sary the conductors and motormen and other union employees of the Bay State Street Railway, Boston, Mass., will have their wage case reopened by the National War Labor Board. It was announced that examiner Charlton Og- burn, representing the board, would hold a hearing in Boston on July 26, to listen to testimony and take whatever other evidence was offered and then re- port to the War Labor Board. On Dec. 3, 1918, by a retroactive de- cree of the War Labor Board, the maximum wage of conductors and mo- tormen was increased as of Oct. 22, 1918, from 40 cents to 45 cents an hour, and a proportionate increase was also granted to miscellaneous union em- ploveos, whose minimum wage was es- tablished at 42J cents an hour. The public trustees of the company and the emnloyees have agreed to abide by the decision of the board. James L. Doherty, Springfield, Mass., has been agreed upon by Samuel H. Pillsbury, representing the company, and James H. Vahey, counsel for the carmen's union, as the third ai-bitrator in the dispute between the Eastern Massachusetts Street Railway, the suc- cessor to the Bay State Street Railway, and its employees relative to the dis- pute over the collection of fares on open cars. It is anticipated that the arbitration proceedings in regai'd to this matter will begin immediately. Wages Raised by Indiana Interurban A uniform increase of 4 cents an hour in the wages of motormen and conductors of all the interui-ban elec- tric railways entering Indianapolis has been made. The increase became effec- tive on July 16 and was ordered by the companies because of the high cost of living. The increase was made with- out requests from the men or confer- ences with them. The interurban railways entering In- dianapolis are the Terre Haute, In- dianapolis & Eastern Traction Com- pany, the Union Traction Company of Indiana, the Indianapolis & Cincinnati Traction Company, and the Interstate Public Service Company. The old and new scales of wages for motormen and conductors, in cents per hour, are as follows: Old rate New rate First year 35 39 Second year 36 40 Third year 37 41 Fourth vear 38 42 Fifth year 39 43 After fifth year 44 The Union Traction Company of Indiana, which owns the Broad Ripple line, has granted an increase to motor- men and conductors on that line, the new rate being 35 cents an hour for the first year, 36 for the second, 37 for the third, 38 for the fourth, 39 for the fifth and 40 after the fifth year of service. Other electric railways of the State also have increased wages. The Evans- ville & Newburg Railway announced an increase for motormen and conductors during the week ended July 26. The Fort Wayne & Northern Indiana Trac- tion Company made an increase of 3 cents an hour on its city lines and 4 cents an hour on its interurban lines. These companies and the interurban companies entering Indianapolis also have granted increases to some em- ployees who are not motormen or con- ductors. These increases are not uni- form. Toledo's Day of Reckoning Near The plan to substitute buses for the service furnished by the Toledo Rail- ways & Light Company, Toledo, Ohio, on the retirement of that company from the streets on July 30 has fallen through. William Cowell, who stood as sponsor for this service, said the backers had abandoned the project be- cause of the inability of Council to grant a franchise without first sub- mitting it to a referendum. They wanted immediate protection of their investment. Mr. Cowell stated, how- ever, that should the railway suspend operations on July 30, the individuals who had proposed to back the buses would be able to put from fifty to 100 buses into operation without any agree- ment. Many citizens believe that some agreement will yet be reached between the city and the railway that will make unnecessary the suspension of opera- tion. It was pointed out, though, if the company does actually stop operation in accordance with the ouster resolution adopted by Council, it may be some time before the cars can be put into operation again. Much time, it is said, will be consumed in preparing and adopting a franchise and submitting it to a referendum vote. On July 17 members of the Council stated that the ouster resolution will not be recalled. Extra Session on Traction Matters Relief for the acute financial situa- tion of Massachusetts electric railways ^\as urged by Governor Coolidge in a special message to the Legislature oii July 23. The Governor recommends the appointment of a commission of seven members to report to a special session of the Legislature planned for November. The time has arrived, the Governor believes, for active measures of relief to be taken to sustain the service re- Cjuired by the public and to revive the credit of the electric roads by measures v/hich will place them again upon a sound financial footing. It is expected that all pending elec- tric railway legislation will be referred to the special commission. Debate on electric railway measures under con- sideration ceased in the Senate on July 23. Wheeling Wages Announced All differences between the electric railways of Wheeling, W. Va., and the local amalgamated union were settled on July 1 when the three members of the arbitration board affixed their sig- natures to the wage scales. Thus has been brought to a close the disagree- ment which prompted the strike in the Wheeling district for one day on April 1. The agreement signed dates back to May 1 last. It affects directly several hundred men, employed by the Wheel- ing Traction Company, the West Vir- ginia Traction & Electric Company and the City Railway, and all men and women employed in the various car- houses and in other similar capacities. The wage scale agreement is for the period from May 1, 1919, to April 30, 1920. Under it the employees receive an increase which averages 18i per cent, with better working conditions and more convenient working hours. The differences between the com- panies and the men arose early last spring before the wage contract then in effect had expired. Following a number of conferences held between the representatives of both factions no agreement could be reached and the strike was declared on the morning of April 1. That night a public meeting was held under the ausnices of the Chamber of Commerce of Wheeling to attempt to adjust the differences. An agreement was reached after several hours debating, by the differences being submitted to a board of arbitrators. The companies named W. R. Powers, Huntington, manager of the Ohio Valley Electric and the Con- solidated Light, Heat & Power Com- pany, as their representative. The union selected William Roy, Bellaire, an official of the Ohio Miners' Union. Some weeks were spent before an agree- ment was reached under which T. Har- vey Pollock, of the insurance firm of Pollock & Campbell, was named as the third member. Considers Municipal Ownership • The City Commissioners of St. Peters- burg, Fla., have sent Director of Fi- nance Guy Shepard and City Attorney Bayard Cook to Philadelphia to confer with the owners of the St. Petersburg & Gulf Railway, to obtain from them an option on the system. In case the price is considered satisfactory the question of the city buying the lines would be presented at an election on an issue of bonds to pay for the prop- erty. The city officials are also in- stnicted to obtain information regard- ing the status of the company. This information is desired before the com- mission acts on the ordinance, offered by the company's attorney, advancing fares to 8 cents instead of the present 5 cents. Judge Pierce, attorney for the owners, on June 29 wired to the Philadelphia men owning the company asking for definite instructions regard- ing operation of cars in case the city declined to grant an increase in fares. Previous instructions were to stop cars. Juhj 26, 1919 Electric Railway Journal 193 News Notes Wages Adjusted in Reno. — Differ- ences between the management and the employees of the Reno (Nev.) Traction Company over the matter of wages have been adjusted. The men formerly were paid 27 cents to start and 35 cents after two years. The new scale is 40 cents an hour for the first three months, 43 cents for the next three months, 45 cents for the next six months and 50 cents after that. Change of Venue in Ouster Suit. — The suit to oust the Wheeling (W. Va.) Traction Company from the streets of Bridgeport, filed in Belmont County courts by Herman Schaefer, city solic- itor of Bridgeport, has been transferred to the Federal Court at Columbus on re- quest of the railway. The petition al- leges the railway is maintaining tracks and wires and operating cars on Bridge- port streets without a franchise or per- mission by ordinance from the Council of Bridgeport. Address Draws Editorial Comment. — Charles S. Banghart, general manager of the Augusta-Aiken Railway & Elec- tric Corporation, Augusta, Ga., recently delivered an address before the local Rotary Club on the public utility situ- ation, which drew editorial comment from the Augusta Herald. Mr. Bang- hart declared that if a municipality desired better transit facilities, it should co-operate with rather than op- pose the efforts of the public service corporation. The Herald advised its readers to give careful consideration to Mr. Banghart's analysis of condi- tions. Municipal Ownership Bill Vetoed. — Governor Sproul of Pennsylvania has vetoed the Stadtlander bill, passed by the last Legislature, which would have granted municipalities the right to own and operate street railway sys- tems beyond their municipal limits. In his message accompanying the veto Governor Sproul observed that the bill was bad in principle. The right to own and operate a railway outside its own boundaries would enable a munici- pality to exert powers within the boundaries of another municipality, clearly an injustice, and a condition that wouM lead to undesirable results, he pointed out. Terms of Award in Doubt. — Em- ployees of the Scranton (Pa.) Railway have threatened to walk out unless Charlton Ogburn, representative of the War Labor Board, personally returns to Scranton to interpret the terms of an award made by him some time ago granting the carhouse men and track- men increased pay for overtime. The men allege that for a short time they were paid according to what they thought were the terms of the award, but that the company [after a few weeks returned to the former rate. Mr. Ogburn has refused their request that he revisit Scranton. Wage Agreement Reported Reached. — Nearly 500 employees of the Mo- nongahela Valley Traction Company in the Clarksburg and Fairmont districts in West Virginia are to receive an in- crease in wages. Several meetings have been held by oflncials of the com- pany and the union, and a report of the action taken and the proposition as a whole is now in the hands of the di- rectors of railway. It is expected that an announcement will be made at a meeting to be held in Fairmont in the near future. Thirty-eight to forty-five cents an hour is the scale of wages now being paid employees. The unions are seeking an advance to 45 and 56 cents an hour. Wider Powers for Alabama Com- mission.— Abolition of the present Pub- lic Service Commission of Alabama and substitution in its stead of a body to be called the Alabama Railroad & Public Utilities Commission having in- creased power, are proposed in a bill recently introduced in the State Legis- lature. The new commission would have jurisdiction over all public utility corporations operating in the State with respect to rates, facilities, practice rules and service, franchises, licenses and contracts, financing and issuance of securities; construction of new com- mon carriers and agencies to operate public utilities. All power or authority of the city councils or other municipal governing bodies would be taken away and vested in the newly formed State commission. Increase for San Francisco Men. — Platform men employed by the United Railroads, San Francisco, Cal., received a further increase of 4 cents an hour on July 13, the fourth voluntary raise g- anted since the strike of August, 1917. Under the latest wage scale, be- ginners will receive 46 cents an hour, advancing to 48 cents an hour after six months service, then to 50 cents an hour after employment of a year, and a further increase at the end of the second year to 52 cents an hour, the maximum pay for platform men. The former scale ranging from 42 to 48 cents an hour was granted last April. Iv July, 1918, the wage was fixed at a minimum of 37 cents an hour, increas- ing to 45 cents an hour, the maximum wage. More than 2,300 employed by the company are affected by the new conditions. Youngstown Grant Described. — Lee, Higginson & Company, Boston, Mass., who participated in financing the Ma- honing & Shenango Railway & Light Company, Youngstown, Ohio, have is- sued a statement descriptive of tl~e new ordinance under which that com- pany is now operating in Youngstown. This grant has been described pi^evious- ly in detail in the Electric Railway Journal. In connection with their statement, Lee, Higginson & Company quote an officer of the company as an- nouncing that the company has just ob- tained twenty-five-year renewals of its railway franchises in the cities of East Youngstown and Struthers, Ohio, per- mitting the company automatically to raise or lower its fare from time to time to the same fare which is in force in the city of Youngstown at the time of change. Franchise Renewal Discussed. — ■ Recommendation that the agitation over the 5-cent fare issue be eliminated from negotiations for the renewal of the franchise of the East St. Louis & Suburban Railway, East St. Louis, 111., was made in a report submitted to the Commercial Club of East St. Louis by its legislative committee recently. The question of increased fares between the Public Square, East St. Louis, and Edgemont, 111., arose when the com- pany applied for a renewal of its fran- chise. The legislative committee recommended that the railway be called upon to extend its services to Scott Field, 111., and to other outlying points. The committee also recommended that the railway be required to pay into the city treasury of East St. Louis a stipu- lated per cent of the net receipts of the road. Fares and Wages Coupled. — J. B. Wiley, business agent of the union of railway employees at Des Moines, la., has announced that the union men will recommend an increase in fares and will make an active campaign before the people for this increase if the de- mands made by the men are agreed to by the board of arbitration which will hear the case. Mr. Wiley is the arbiter chosen by the men. The Des Moines City Railway has named F. W. Sargent, a Des Moines attorney. The third man is to be named by the other two. The wage increase asked by the men is to 55. 60 and 65 cents an hour. Mr. Wiley figures that a 6-cent fare would increase the company's income $340,000 a year and that the wage demands would require $277,000 an- nually. As the increase will be retro- active to March 1, if allowed, this would mean an additional $135,000 to be ex- pended by the company. Demands Made by Omaha Men. — Of- ficials of the union of employees of the Omaha & Council Bluffs Street Rail- way, Omaha, Neb., on July 21 pre- sented to R. A. Leussler. assistant gen- eral manager of the railway, written demands, the most important of which was for a wage increase. In view of the absence of Frank T. Hamilton, president of the company, it was agreed to hold the matter open until his return to Omaha. Ne^'ther side an- nounced the amount of the wage in- crease, but unofficially it was given out that the carmen want an increase from a scale of 41-45 cents an hour to one of 65-75 cents. Indications are that the railway officials will look to the city and the State Railway Commission for reMef, as they contend that the prevailing 5-cent rate of fare barely covers operating expenses as they exist at present. 194 Electric Railway Journal Vol. 54, No. 4 Financial and Corporate $2,300,000 of Receiver's Certificates Court Orders Liquidation of Indebted- ness of United Railways, St. Louis, to War Finance Corporation Special Master Henry Lamin in the receivership suit of the United Rail- ways, St. Louis, Mo., entered an order in the Federal Court on July 18 recom- mending- that the United States District Court empower Receiver Rolla Wells to issue receiver's certificates for $2,- 300,000 to liquidate the company's in- debtedness to the War Finance Corpo- ration, which holds the 6 per cent bonds of the Union Depot Railway, St. Louis, as collateral. Bondholders Confer The step was taken by Judge Lamm after a conference with attorneys rep- resenting the various interests. Two factions of bondholders, representing between them more than the necessary 5 per cent of outstanding obligations, had indicated their intention of start- ing foreclosure proceedings against the United Railways, following failure of the company to pay interest. The two factions announced Oct. 6 as the date of foreclosure proceedings. The receiver's certificates contem- plated by Judge Lamm would be a first lien on the property of the Union Depot Lines and a lien on all property of the United Railways ahead of the St. Louis Transit 5 per cent bonds and the gen- eral 4's but junior to various divisional bonds. It developed at the hearing held be- fore Judge Lamm entered his order that the company owes the War Fi- nance Corporation approximately $2,- 400,000. It is the receiver's intention to add to the certificates a sufficient sum from the reserve fund of the company to make up the amount. Mr. Warner Explains Valuation In court Robert L. Warner, vice- president of the Lhiited Railways, tes- tified as to the value of the Union Depot lines property, which is collateral for the War Finance Corporation loan. He said that the property had been ap- pi'aised as low as $4,000,000 and as high as $8,000,00a. He declared the property was ample security for the loan. Mr. Warner said he feared August would be a bad month in which to try to float the receiver's certificates proposed. He thought it would take at least two months to sell the certifi- cates. In answer to a question from Judge Lamm as to the chances of selling the certificates, Mr. Warner asserted that they would have to be sold at a high rate. He thought a rate as low as 4 per cent could be obtained if the issue was started with St. Louis bank- ers. Interesting testimony as to the I'e- ceipts and expenditures of the com- pany was given by officials. C. E. Smith, chief engineer, said the recon- struction and rehabilitation of tracks would require about $750,000. Col. Al- bert T. Perkins, newly appointed gen- eral manager, and James Adkins, treasurer, were examined as to earn- ings. Mr. Adkins said the gross oper- ating income from April 12 of this year, when the receiver took charge, to May 31 was $2,166,368. He estimated the receipts from May 31 to Dec. 31 at $8,918,997. This estimate, he explained, was based on last year's receipts, plus a 2 per cent increase. After deducting operating expenses from April 12 to May 31, Mr. Adkins fixed the net operating income at $461,638. After deducting interest on bonds, notes and fixed charges this was further reduced to $133,61.5. Meeting Looking Toward Fore- closure Put Off Creditors of the Grafton Light & Power Company and the Grafton (W. Va.) Traction Company met at the office of 0. E. Wyckoff, referee in bank- ruptcy, on June 30. It was hoped that an agreement might be reached among the creditors of the two concerns for a sale of the properties as prayed for by Dr. T. F. Lanham, the trustee, in a petition recently filed by him in the Federal Court of the Northern District of West Virginia. This meeting failed of its object, how- ever, for the time being, for the follow- ing reason: It was known that Francis P. Garvin, New York, was the holder of bonds of the Grafton Light & Power Company to the extent of $300,000, to secure a loan made by the Central Trust Company, New York, to the Graf- ton concern in the amount of $150,000. Both Mr. Garvin and the trust com- pany were served with notice of the meeting, but it appears that Mr. Gar- vin had assigned the bonds to his father- in-law, Nicholas F. Brady, New York. Of this transfer Referee Wyckofi had no knowledge until the appearance of C. M. Thorne, representing the Brady interests, who stated that this was the first notice his client had re- ceived of the proceedings then pending. He asked for further time to look into the matter before taking any part in the proceedings. Under the circum- stances the referee, upon the attorney entering a formal appearance for Mr. Brady, felt it incumbent upon him to postpone further action in the matter for the present. M. & K. Interurban Refund- ing Authorized Commission Allows Increase in In- terest Rate So As To Attract Capital The Kansas Public Utilities Commis- mission has permitted the Missouri & Kansas Interurban Railway, the Strang Line, to refund about $650,000 of bonded and other indebtedness, raising interest from 5 per cent to 6 per cent, in order that the company may obtain about $150,000 of new money for re- habilitation and improvements. Low Interest Return a Deterrent This is perhaps the first instance in the Trans-Mississippi territory wherein the low returns on utility in- vestments already made are recognized as a deterrent to further investment, and concessions made to such inves- tors, to influence them towards put- ting more money into projects to serve the public. The Kansas commission does not go as far as utilities might hope, in its recognition of the facts that have hampered electric railway financing. The following paragraph indicates the limitations it places, now, upon the in- ferences that might be drawn from its recent action: That while the commission should not be bound by such issue of bonds for rate- making purposes, or the interest thereon allowed in future applications for ra es as fixed charges, the commission does find tliat the refunding of said bonds and in- debtedness can probably at this time be ac- complished in no other way. The Strang Line needed additional capital so that installations might be made to care for business offered and in sight. The money could not be secured from the usual sources, which were getting only 5 per cent on their present investments. Bowersock & Fizzell, attorneys for the company, presented these facts to the commis- sion, making it especially clear that the predicament of the electric rail- ways was due to two factors, with others: first, the low level of returns on bonds now issued, which discouraged investors from putting any more money into the properties; second, the neces- sity of improving properties and in- creasing their usefulness for the pub- lic interest. It was made clear that the best means of again attracting the attention of the investors to utilities was to increase their revenue from bonds now held in such properties. Improvememts Planned The Strang Line has about $650,000 outstanding in 5 per cent bonds and in notes. The commission issued an order on July 11 for the complete re- funding of this indebtedness, most of which has thirteen years yet to run. An issue of $500,000 of first mortgage 6 per cent bonds was authorized, all of which will take up 5 per cent bonds. An issue of $300,000 of second mort- gage bonds was authorized; part of this will take up 5 per cent bonds, part will secure the notes of the company July 26, 1919 Electric Railway Journal issued for rehabilitation, and part will be for future issue. There will be held for issue later, on order of the com- mission, $73,500 of the second mort- gage bonds. Two immediate items of improve- ments will be the installation of a transmission line, probably under- ground, for service of farmers along the route of the interurban; and the enlargement and improvement of facil- ities of the freight station of the com- pany in the south suburbs of Kansas City. Census Figures Show Distress Government Bureau Substantiates the Charges Made of Pending Calamity As the United States Census reports on electric railways for the year 1917 are made public, evidence accumulates slowly but surely to show the retarded progress of this important industry. Such conditions were reflected again in the section of the report abstracted in the Electric Railway Journal for July 12. Therein were set forth data as to the capitalization and traffic of these utilities. It was shown, for instance, that the total capitalization of all companies, urban and interurban, for the year 1917 was $5,525,025,923, an increase of 17.3 per cent in five years. For the .previ- ous five years the gain was 24.7 per cent, and for a similar period preceding that 63.5 per cent. Going back to the earliest period covered — 1890 to 1902 — the increase was 414 per cent, or at the rate of 172.5 per cent for a five- year period. While this unusual show- ing was to be expected for the period when electric railways were developing abnormally, the lessening increase in each succeeding period might safely be attributed to the obstacles set up to discourage investors. Turning next to the traffic figures, we find that from 1902 to 1907 revenue passengers increased 55.9 per cent, while transfer passengers increased 87.8 per cent. From 1907 to 1912 the respective gains were 28.3 and 21.5 per cent, and from 1912 to 1917 they were 18.4 and 24.6 per ceiit. Free passen- gers increased 72.2 per cent from 1907 to 1912 and only 9.2 in the following period. Here is indicated one of the few beneficial turns in the history of electric railroading — the checking of free transportation, largely due to the enactment of public service regulations. The growth of the transfer habit, how- ever, is too plainly evidenced. The plan which has been adopted for presenting the case of the electric rail- ways before the President's commis- sion includes the introduction of cen- sus reports as indicating the present state of the industry. Unfortunately, these figures are some eighteen months old and fail to cover the most distress- ing period of these utilities, but the story told by the census bureau will no doubt have considerable weight. New Haven Lines Suffer Electric Railways Affiliated With New Haven Railroad See Expenses Eat Up Revenues The annual report of the New York, New Haven & Hartford Railroad for the year ended Dec. 31, 1918, contains income statements for its various affili- ated electric lines, as shown in detail in the accompanying statement. The time in which, under federal decree, the railroad must sell its investments in these lines has been extended until July 1, 1921. The financial results of 1918 for the various electric lines were most un- satisfactory, it is said, owing to causes which affected all transportation lines of this character. A good idea of the heavy bui'den of operating costs can be secured from the fact that in three cases the operating expenses and taxes were greater than the total operating revenues. For the New York, West- chester & Boston Railway the excess of such expenses was 12.07 per cent, an increase of 6.22 per cent over 1917; for the Berkshire Street Railway it was 32.45 per cent, an increase of 36.86 per cent over 1917, and for the West- chester Street Railroad it was 24.18 per cent, a decrease of 8.36 per cent fiom 1917. These companies as of Dec. 31, 1918, showed the following deficits: New York, Westchester & Boston Rail- way, $9 919,169; Berkshire Street Rail- way, $1 334 019, and Westchester Street Railroad, $314,046. Other Lines Had Little to Spare The other three lines, though their revenues were sufficient to cover op- erating expenses and taxes, had in general little to spare. The operating expenses and taxes of the New York & Stamford Railway were 95.38 per cent of the revenues, an increase of 4.54 per cent over 1917, and those of the Rhode Island Company were 90.62 per cent, an increase of 4.39 per cent over 1917. The Connecticut Company made the best showing with a ratio of 87.83 per cent, an increase of 3.87 per cent over 1917. This company was the only one of the six to show a sur- plus for the year, and a credit to profit rnd loss account. This as of Dec. 31, 1918, totaled $2,770,703, while the accumulated deficits for the New York ^. Stamford Railway and the Rhode Island Company were $236,591 and $235,183 respectively. The general situation is summarized in the New Haven report in the fol- lowing words: Tlirousliout the year the trustees and manag'ements of the various companies have worl ^ Q O 9 2 O - - o o 196 Electric Railway Journal Vol. 54, No. 4 companies through the introduction of the safety or one-man car. to be bought it found desirable, and if the necessary finan- cial arrangements can be made. The various communities served seem to appreciate more than ever before that it service is to be rendered by the trolley lines, compensation must be adequai e to meet all expenses, taxes and to pay a re- turn upon the property. Hearing on Abandonment The International Railway, Buffalo. N. Y., has sought permission from the Public Service Commission for the Second District to abandon its Gooding Street local line in Lockport. Evi- dence in the case was taken by Chair- man Charles B. Hill at a hearing in Buffalo in which the company con- tended it would be better off financially if it did not have to operate the Good- ing Street line as part of its Lockport system. In the course of the hearing the company presented evidence to show that during the year ending Feb- ruary 28, 1919, the total expenses of the Lockport-Olcott interurban division, including freight and passengers, were $123,869, while the total revenues were $103,257, showing a loss of $20,612. The company claimed it did not meet the interest of $40,000 on its Lockport- Olcott road bonds in the total sum of $800,000. Comparative figures were also given of the number of passengers riding on the Lockport local cars in March, April and May last year under a 5-cent fare and for the same months this year under a 6-cent fare as follows: 1918, 232,698 passengers; 1919, 231,055 pas- sengers. Revenues, however, have in- creased about $3,000, but it is pointed out by E. J. Dickson, vice-president of the company, that even with this in- crease in revenue, the company will operate the Lockport local lines at a loss of $748 this year without the pay- ment of interest on bonds and without allowing for depreciation. New track and paving must be laid on the Good- ing Street line. This, it is estimated, would cost about $43,000. Financial News Notes Sale of Collateral Set The State Street Trust Company, Boston, Mass., trustee under the inden- ture securing the collateral trust mort- gage 5 per cent bonds of the Paducah Traction & Light Company, Paducah, Ky., dated Nov. 1, 1915, gives notice that default having been made in cer- tain covenants of the trust deed, it will sell at public auction at Boston, on July 25, the securities of the following com- panies pledged as collateral: (a) Paducah Light & Power Company, $551,000 of 6 per cent thirty-year gold bonds, dated Nov. 1, 1905, due Nov. 1, 1935 • $294,608 of interest-bearing demand notes dated Nov. 1. 1905 ; 4500 shares of capital stock, par $10u. (b) The Paducah Traction Comiiany, $379 000 of 6 per cent thirty-year mort- gage bonds, dated Nov. 1. 1905. due Nov. 1 1935 ; $599,228 of interest-beanng de- niand notes; 3500 shares of capital stock, '''^[cf^The Paducah City Railway, $87,000 of 5 per cent thirtv-year mortgage bonds, dated Julv 10. 1902. due July 1, 1932. (d) Paducah Realty Company, ten shares (total issue) of capital stock, par $100 ; $27,300 of interest-bearing demand notes. Note Issue Approved. — The applica- tion of the Nova Scotia Tramways & Power Company, Halifax, N. S., to the Board of Public Utility Commissioners for leave to issue $1,000,000 of three- year gold coupon notes at 7 per cent has been granted. Abandonment Authorized. — The Pub- lic Utilities Commission of Kansas has authorized the lola (Kan.) Electric Railway to discontinue service and to junk all the property. The company has approximately 7 miles of track. International Collateral Sold. — Ad- rian H. Muller & Son, New York, N. Y., sold at auction on July 16 to the note- holders' protective committee, for $300,000, the $1,634,000 of collateral t)ust 4 per cent bonds of the Inter- national Traction Company, Buffalo. N. Y., pledged as collateral to secure the 6 per cent serial notes dated April 1, 1916. Increase in Spokane Receipts. — Ow- ing to the 6-cent fare the Washington Water Power Company operated its railway lines in Spokane, Wash., at a profit during June, whereas for June, 1918, there was a deficit, according to a recent statement of D. L. Hunting- ton, president. Receipts showed an in- crease of 21.6 per cent, or $13,000, over those of the same month for last year, largely due to the higher fare. Increase in Business in St. Louis. — An increase of approximately 400,000 passengers is indicated in the report of the receiver of the United Railways of St. Louis, Mo., for the quarter ended June 30, as compared with the corres- ponding quarter of the previous year. During this quarter of 1919 the United Railways carried 62,618,484 city and county passengers, including half-fare passengers, as against 62,245,048 pas- sengers during the same three months of 1918. Ordered to Continue. — Operation of the Clairton Street Railway, a li-mile line of the Pittsburgh (Pa.) Railways, in Clairton, Pa., now shows a deficit of $2,530, the receivers of the Pittsburgh Railways have reported to the United States District Court. The court au- thorized the receivers to meet the defi- cit with funds at their disposal, upon their representation that they wish to continue operation to maintain a fran- chise that promises to be valuable in the future. Texas City Property Sold. — The properties of the Texas City (Tex.) Company, on the mainland opposite Galveston, which is a sub-port of Gal- veston, have been sold at auction by J. H. W. Steele, receiver. These prop- erties include the Texas City Street Railway, which is a subsidiary on the Texas City Company, and various other subsidiary companies. Augustus Pea- body, of Peabody, Houghteling & Com- pany, Chicago, 111., bought in most of the properties, including the railway, on a bid of $150,000. Receiver fcr Texas Property. — C. U. Culberson has been appointed receiver for the properties of the Corpus Christi Railway & Light Company, Corpus Christi, Tex., by United States District Judge Hutchinson in Houston, Tex. Mr. Culberson will take charge of the prop- erties and will personally assume responsibility for their operation. The appointment of a receiver was made on application of the Merchants Union Trust Company, Philadelphia, Pa., trustee for the bondholders. The peti- tion alleged that the company is in default of interest on its outstanding iiidebtedness. The property includes 10 miles of electric railway. Northern Ohio Traction Bonds Of- fered.— Coffin & Burr, New York, N. Y., own and offer subject to sale at 80 and interest, yielding 6.15 per cent, first consolidated mortgage 4 per cent gold bonds of the Northern Ohio Trac- tion & Light Company, Akron, Ohio, due Jan. 1, 1933. The bankers explain that through the retirement last month of an issue of divisional bonds, the first consolidated mortgage bonds are now secured in the opinion of counsel by a first mortgage on the entire elec- tric light and power property of the company, together with the most im- portant and profitable portions of the company's system of electric railway transportation. Indianapolis-Louisville Link Pur- chased.— The Interstate Public Service Company, a subsidiary of the Middle West Utilities Company, Chicago, 111., has bought the link in the electric rail- way chain extending from Louisville to Indianapolis owned by the Indian- apolis & Louisville Traction Company for $325,000 and has assumed a mort- gage for $846,000. The line extends from Sellersburg to Seymour, Ind., and was built at a cost of $1,500,000 in 1907. The company has $600,000 of common stock and a like amount of preferred stock. The purchasers con- trol the links at both ends of the line from Sellersburg to Louisville and from Seymour to Indianapolis. Outer Belt Sale Authorized.— The property of the Kansas City & Outer Belt Railway, Kansas City, Mo., which has been in receivership for the last six years, has been ordered sold at Kansas City to the highest bidder on Sept. 16. The order authorizing the sale was entered by Judge Pollock. It requires that the property shall be sold for not less than $131,000. As was explained in the Electric Railway Journal for Jan. 25, page 202, Judge Pollock early in January declined to agree not to sell the property of the company within a year, his leniency heretofore being due to the fact that the bondholders are largely British, with time otherwise occupied during the Ipst few years on account of war conditions. July 26, 1919 Electric Railway Journal 197 Traffic and Transportation Seven Cents in Athens Pennsylvania Commission Announced Important General Policy Gov- erning Fare Increases The Public Service Commission of Pennsylvania, in an opinion prepared by Chairman Ainey, has authorized the Waverly, Sayre & Athens Traction Company, Waverly, N. Y., operating in Pennsylvania and New York, to charge a 7-cent rate of fare in order to meet the increased costs of labor and mate- rial and to enable the company to ren- der public service. Other Increases Previously The company made increases from 5 cents to 6 cents, and then to 7 cents, and against these increases complaints were filed. At the hearing held by the commission it was developed that the revenues obtained from the 7-cent fare were not sufficient to pay operating- costs and provide a fund for the main- tenance of the property in a good con- dition to render adequate public serv- ice. The stockholders have never re- ceived any dividends on their stock' and the president of the company, who owns 24 per cent of the bonds, has yearly cancelled his coupons without payment and turned them into the treasury of the company because of the lack of revenues to pay them. The testimony offered by the respondent was not con- troverted by the complainant. The Interstate Commerce Commis- sion, upon the same state of affairs, has granted a 7-cent fare for inter- state business on the line between Waverly, N. Y., and South Waverly, Sayre and Athens, in Pennsylvania. While the company under the New York law can charge 6-cents for purely New York business, the number of passen- gers and the amount of revenue de- rived therefrom is so small that, even if the rate for the New York service were increased to 7 cents, it would not make any material increase in gross revenue or change the conclusion in the present case. Monthly Reports Requested In order that the commission may keep close track of the case, it directed the company to file monthly reports of its receipts and income and has granted leave after Jan. 1, 1920, to the complainant to renew the com- plaints if it can then be shown that the revenues have increased or the op- erating expenses decreased so that a lower rate of fare would meet the com- pany's necessities. The commission points out that the only way that the public can have elec- tric railway service is by affording the company revenue sufficient in amount to produce it, and Chairman Ainey makes the following important state- ment of general policies: To expect public service of these carriers without permiuing- them surHcient revenues to produce it, is as fallacious an economic sugRestion as to demand bricks without straw or to require faithful toil from the muzzled ox. It is therefore a matter of ordinary busi- ness prudence and sagacity that the pub.ic generally should come to an appreciative understanding of what that service means to the industrial and commercial life of the State and to eacii locality wiihin it, and lo recognize that the terms upon which it can be continued for their use and enjoyment are that it shall receive at their hands as rate payers revenues sufficient to furnish it. If the public are to be adequately served railways must be permitted to earn out of imposed rates of fare revenues large enough in amount to pay operating co its and a fair retuin, and provide for the main- tenance of the property, provided always that the rates imposed are not unjust or imreasonalile. Employees May Advertise Free With approval of Receiver Hedges, the August issue of the New York Raihvay Employees' Magazine will open its columns to the acceptance of advertisements, to be inserted free of charge, from all employees of any de- partment of the New York Railways. The advertisement must not exceed twenty-five words in length. Adver- tisements will be accepted and inserted in the magazine under the following headings : For Sale For Rent Help Wanted, Male Help Wanted, Female Houses to Let Apartments to Let Rooms to Let Boarders Wanted Positions Wanted, Male Positions Wanted, Female For Exchange Miscellaneous The headings are self-explanatory, for instance: Under the heading "For Exchange," if any employee wants to exchange a Victrola for a sewing ma- chine, or a bedstead for a bureau, or any other article, all he has to do is to write it out and send it in. Adver- tisements will be received for one in- sertion only unless the employee other- wise requests. It is understood that the advertiser is advertising for himself only or an immediate member of his family. To this end the name of the sender and the department in which he or she is employed must accompany the adver- tisement. Hearing on East St. louis Fares Another hearing on the application of the East St. Louis & Suburban Rail- way, East St. Louis, 111., for permission to continue indefinitely its charge of a 6-cent fare was held in East St. Louis on July 15 by the Public Utilities Com- mission of Illinois. D. E. Parsons, gen- eral manager of the railway, and Leroy Browning, city attorney, were the prin- cipal witnesses. Court Sustains Fare Pennsylvania Holds That Fare Clause Cannot Block Justifiable Rate Increase A fare-fixing clause in an electric railway franchise cannot block a justi- fiable increase in rates, it was ruled in the Superior Court of Pennsylvania during the week ended July 19. The ruling was made in an opinion by Judge Troxler on the appeal of the borough of Wilkinsburg in its con- test of the 1918 fare increase by the Pittsburgh Railways from 5 cents to 5i and 6 cents. Wilkinsburg franchises include a 5-cent fare clause. The appellant had argued that in- crease of fare in the face of the 5-cent fare clause constituted a breach of the constitutional guarantee of contracts. Judge Troxler declined to admit the truth of this. When an electric railway increases its fare in accordance with the pro- visions of the public service commis- sion law, as the Pittsburgh Railways did in this instance. Judge Troxler set forth, the police power of the State has been invoked. This power cannot be abridged, and any contract in the franchise must be considered to have been entered into by the contracting parties, with a reservation in favor of it. Therefore, a change in tariff, accom- plished by virtue of the State's police power, connot be considered a breach of contract within the constitutional meaning. It is right that the police power should cover the matter of fares, the opinion explains, because of the gen- eral public's stake in the matter. Street railways are no longer local concerns supplying only one community each, but are now competitors of steam rail- roads carrying freight and passengers for long distances. As such it is de- sirable that they be controlled by the more extensive authority of the State. In another opinion issued the same day Judge Troxler upheld the Common Pleas Court of Allegheny County in dismissing a bill brought by the city of McKeesport, which sought to pre- vent violation of its 5-cent fare ordi- nance at the same time by injunction proceedings. The lower court had dis- missed the bill upon demurrer on the ground of no jurisdiction except upon appeal from the Public Service Com- mission, which had not yet acted on the raise. The Superior Court did not rule on this phase of the issue, merely ob- serving that if its other opinion were correct, the 5-cent fare clause could not stand in the way of the increase any- way, and the same result wouM follow, even granting the lower court had jurisdiction. Both of these opinions were handed down as applicable to several similar suits brought by Pittsburgh and a num- ber of the surrounding boroughs as a result of the same increase. Charles K. Robinson, chief of tbe Pittsburgh bureau for traction litigation, has an- nounced that the city will appeal to the Supreme Court. 198 Electric Railway Journal Vol. 54, No. 4 Boston Now Charging Ten Cents Boycott and Strike Follow Change in Fare — Public Opinion Very Hostile Boston, Mass., went to a 10-cent fare on July 10. This was the program for the Boston Elevated Railway that had been announced by the public trustees as noted at length in the Electric Railway Journal for July 5, page 45. There followed very shortly the strike of the employees with the burden of increased costs involved in the strike settlement, the terms of which are re- viewed on page 190 in this issue. It is now reported that the trustees have been requested by the Massachu- setts Legislature to establish a 5-cent fare effective until Dec. 1. By this time, it is said, remedial legislation will probably be enacted by a special session of the Legislature. That the trustees have feared for the results under the 10-cent fare is instanced in a statement issued on July 21 by Samuel L. Powers of the board of trustees. Mr. Powers said: Trustee Powers Pleads for Public Patronage Unless the car-riding public is as liberal in its patronage of the elevated under the 10-cent fare the road will within thirty days be forced to find a substitute solution for a revenue to meet the $2,500,000 wage increase to the employees. During the first week we had the 10-cent fare we lost about 20 per cent of what we had had under the 5-cent fare. Under the 8-cent fare we were losing about 9 per cent of what we got out of the 5-cent fare. Now the question is, will this increased cost, assuming the rid- ing will be 20 per cent less, give us enough revenue to meet the increased expenses? My answer is that I do not know. I do not think sufficient time has elapsed since the going into effect of the 10-cent fare to make a fair test. But I do believe that if the public were to ride as freely on the 10-cent fare as they did on the S-cent fare, the revenue would be sufficient to cover the cost of service and provide a reasonable return. Patrons of the elevated will prob- ably continue to use the strip tickets they purchased during the strike for use on the steam roads until these are exhausted. Mr. Powers intimated that in case the 10-cent fare should fail eventually, it would not mean that the fare would be further increased. The trustees are considering the use of the zone system and there is some ground for the belief that this will soon be tried in Boston. Patrons Boycott Company According to an estimate by H. L. Wilson, treasurer of the company, 76,- 300 fewer revenue passengers were carried on the road on July 21 than on July 14, the number on July 21 being 716,000. The 10-cent fare was in effect on both days. On July 7, when the 8-cent fare was in effect, the total number of revenue passengers was 927,812. The July 21 figures, however, are somewhat complicated by the fact that many persons did not see the Boston Sunday papers and realize the probability of the strike settlement on that day, and also by the outstand- ing commutation tickets purchased from the steam railroads and still in the hands of the public. There is no question that the 10-cent fare has resulted in a widespread boy- cotting of the service in favor of other agencies of transportation and that walking has greatly increased. It is impossible to determine at this writing to what extent the lost patronage of the road will return. Extra suburban trains are still being run on the steam roads radiating from Boston, although there appears to be a decided falling off in the patronage of Boston & Maine suburban extras. Traffic on the Bos- ton & Albany during the rush hours Tuesday morning was 16 per cent above normal. The public trustees were prepared for protests against the new fare, but hardly, it is believed, expected the veritable flood of newspaper comment and criticism by men prominent in both business and public life, which followed the advance in fare. While it is a fact that much of what has been said is denunciatory and not constructive, the clamor is so insis- tent as to command attention if not respect. Only in a few isolated in- stances is the voice of the press raised in behalf of the company. In this respect the Boston Herald warns that "too long has the public assumed that every proposed increase in wages was so much to the good." That paper says "it is quite immaterial whether we pay a high transportation cost, in the individual car fare, or indirectly in our general taxation." Only Those Ride Who Must Ride The Post is among the papers that cling to the opinion that "the 10-cent fare does not and will not provide the greatest number with satisfactory service." In its opinion "only those who must ride, or to whom the fare is of no consequence, will obtain the service." That paper regards it as a fact that "the successive increases in the fare from 5 cents to 7 cents and then to 8 cents brought the company sharply up against the law of dimin- ishing returns." Sharing this general opinion is t?ie Boston Record. That paper says that "efforts to solve the traction problem by increasing fares has been unsuc- cessful because they ignore the central consideration, which is that this serv- ice must be provided at a cost sup- portable by the patrons." It holds "that it is this consideration which has 'no alternative.' " That paper says "it is elementary business common sense that increases in fares invariably and inevitably reduce patronage and diminish returns, and this should have been plain to those who ill-advisedly insisted upon increased fares." The Lynn Neivs suggests a return to the 5-cent fare. It says that the ad- vancing fare proposition has gone far enough. That paper remarks face- tiously that "if the railways are ulti- mately to serve only the rich and leave the average citizen with no means of conveyance it is about time to wind up their affairs and get everybody into training for walking." The sentiment about the railway at a 10-cent fare being a luxury runs through much of the press comment. Thus the Newburyport News says that "we have enough unrest now without increasing it by adding to the burdens of the workers while the State spends money in the interest of the automo- bilists." The Boston Herald in later comment, however, sees "a disposition to pay a part of the bill out of the public treasuries and the rest in the old way." That paper "believes this solution to be inevitable, and in the present circumstances — temporarily at least — quite necessary." The Glouces- ter Tiynes is another paper that has called attention to the "millions of dollars spent annually to keep the roads in condition for the rich man and his automobiles." In this connection it asks: "Is it unjust to ask that the State should do something to help pay expenses so that the poor man can ride in the cars to his destination at the old rate of 5 cents?" The Boston American counsels the installation of the zone system. That paper says however, that "if Massachusetts were wise she would take over all her street railways, own and operate them, so that, there would be no suspicion that any private interests had any connec- tion whatever with the management of the roads, and then reduce the fare to 5 cents, paying any loss during this period of high prices out of general taxation." The American professes to see "nothing revolutionary or unprece- dented in such action." The Rev. Edward A. Horton, chap- lain of the State House, sees a social menace in the 10-cent fare. He says that it breeds Bolshevistic sentiments in the hearts of the working people. Mr. Horton sees "men and women aroused to riot and hatred and class hostility." Perhaps the most startling comment of all was that by ex-Governor Eugene N. Foss of Massachusetts, a man of much wealth and wide business ex- perience, at one time reported to be the largest holder of Brooklyn Rapid Tran- sit stock after the Brady interests. According to the Boston Globe he sees a camouflaged quasi-public ownership in the road as at present operated. Mr. Foss says that he has reached the conclusion that "the only solution of the question is public ownership." He is quoted as follows: Every reasonable man will have to admit that in addition to the errors of private ownership of the Boston Elevated Railway, the road has been burdened by subway charges and the rise in wages and mate- rials. It is a deplorable situation and one that must be met. Private capital cannot meet it. There's an old saying that there is nothing so timid as $1,000,000 except $2,000,000. Capital is scared. Those who are in are in deep and they want to get out. It's the public's affair, and the public must solve it. I believe that the road should be taken over by the State. Go back to the 5-cent fare, and if there is a deficiency make It up by taxing the com- munities served by the system, just as they are doing it now. July 26, 1919 Electric Railway Journal 199 Transfer Charge Authorized in New York Two Cents Allowed to Be Charged by New York Railways and Brooklyn Rapid Transit Company Public Service Commissioner Lewis Nixon of the First District of New York, on July 18, signed an order per- mitting the New York Railways, which operates the so-called green car lines in Manhattan, to charge 2 cents for transfers at ninety-nine of the 113 transfer points on its system. At the same time he authorized the Brooklyn Rapid Transit Company to charge 2 cents for transfers on practically all of its surface car lines in Brooklyn. Of 1008 transfer points on the entire system where transfers are now issued free, only thirty points are exempted from the order, besides a few points where feeder lines transfer to the trunk lines. That the commissioner would probably make such an order was announced in the issue of the Electric Railway Journal for July 12, page 94. Both the New York Railways and the Brooklyn Rapid Transit Company are in the hands of receivers, and both had asked to be allowed to charge 3 cents for transfers. Both orders go into effect on Aug. 1. In the case of the New York Railways, the order con- tinues in effect until July 7, 1920, un- less the commission extends the time at some future date, while in the case of the Brooklyn Rapid Transit Com- pany the ruling is effective until July 30, 1920. Charge for Initial Transfer The charge in both cases will apply only to the initial transfer issued; that is, where it has been the custom to issue transfers such retransfers will be continued and no additional charge will be made for them. Both orders con- tain provisions that each company shall keep careful accounts of the result of the transfer charges in reference to the income of the companies. In the case of the Brooklyn Rapid Transit a report is to be made monthly to the Public Service Commission of the results of the order. Provision is also made in the case of the New York Railways order that if the city is dis- satisfied with the valuation of its prop- erty, placed in evidence at public hear- ings, it shall have the right, at the end of six months, to apply to have the proceedings reopened. Commissioner Nixon, in signing the orders, made a vigorous defense of his action, and denied emphatically that the commission was in any way favor- ing the railroad companies. Such a charge, he said, was not only unfair and unjust, but "wickedly false and untrue." The commission, he said, was simply trying to protect the interests of the people of the city, and that they should appreciate it and not be misled by those who are attempting to deceive them. It is understood that Commis- sioner Nixon referred to Mayor Hylan, among others, who has stated that he never would approve the charging for transfers. Commissioner Nixon said: Tlie public should have a true statement of the transit situation in this city. The New Y'ork Railways at the present time is in the hands of a receiver. That means that it is insolvent and unable to pay its debts. The New York Railways is a vast system which consists of many leased lines, such as the Eighth Avenue Railroad Com- pany, the Ninth Avenue Railroad Company, etc. In order to obtain leases of these lines, the New York Railways is obliged to pay rent for them. If the rent is not paid these leased lines will cancel their leases. Some of these rentals may be extravagant, but they were made years ago and must be paid until they are changed. To further the public convenience, the New York Railways was required to intro- duce what is called a system of free trans- fers between its leased lines and other railroad lines in this city. For example, if a passenger on the Madison Avenue line desired to travel up or down the west side he could obtain a free transfer at Fifty- ninth Street. This enabled him to take the Fifty-ninth Street car to either Eighth or Ninth Avenue and there transfer to the line which lie desired up or down town. Owing to the prevailing high prices for labor and material the New York Railways was unable to pay its debts, including its rents, and to protect the interests of the traveling public the Federal Court ap- pointed a receiver That receiver is an officer of the Federal Court and the court is practically operating this railroad. The Federal Court informed the Public Service Commission that, unless the railroad com- pany was granted some relief, either in the way of increased fare of 6 cents or 7 or 8 cents, or permitted to charge for trans- fers, tlie court would cancel the lease*;. The effect of this would be that every time a person changed from one line of cars to another he would have to pay an extra fare of 5 cents or, if he made two changes, 10 cents. Wliat would anyo ie have done under the circumstances? Would they have permitted a charge of 10 or 15 cents when the same result could have been accomplished for 5 cents and a charge of 2 cents for a transfer. The charge that the commission is favoring the railroad is not only unfair and unjust, but it is also wickedly false and untrue. The commis- sion protected the interests of the people of the city and they should appreciate it, and not be misled by those who are at- tempting to deceive them. The action of the State Supreme Court of Nebraska in connection with the application of the Omaha & Council Bluffs Street Railway before the State Railway Commission for an increased rate of fare, marks a forward stride for the railway. The company last year applied to the Railway Commission for a 6-cent rate, and then filed an amended application for a 7-cent rate. The commission denied the application, holding that the company should file more definite state- ments of its financial condition and apportionment of revenues. The com- pany appealed to the Supreme Court, which, as noted briefly in the Electric Railway Journal for July 19, page 145, ruled that the State Railway Com- mission should grant a rate that will insure the company against insolvency, pending a valuation of the property to determine a permanent rate. The court held that a fare of 6 cents "will not be improper, but the exact If the commission favored the railroad it would have increased the rates of fare so that every person, whether he wanted a transfer or not, would have to pay 2 or 3 cents extra. Something had to be done to protect the public service. Operating a railroad requires money, and if suHicient money be not earned the roads cannot run. What would the people living in the upper part of Manhattan or in the Bronx do if the system ceased to operate and they were obliged to walk? The preservation of this system was required by the Federal Court and the commission had no other alterna- tive outside the utter disruption of the serv- ice but to authorize a charge of 2 cents for a transfer. The commission hopes that the public will understand and appreciate the true facts and will not be misled by unfair and unjust criticism. The conditions under which the charge for transfers will be made have been summarized by the commission as follows: The charge of 2 cents will apply only to the initial transfer issued. Where it has been the custom to issue transfers on trans- fers such retransfers will be continued and no additional charge will be made for them. The order in both cases goes into effect on Aug 1. That relating to the New York Railways system will continue in effect until .luly 7, 1 920. a:nd that relating to the Brooklyn Rapid Transit system until July 30, 1920, unless further extensions are made by the commission. Bo'h orders con- tain provisions that each company shall keep a careful account of the results of the transfer charge in reference to the income of 1he two systems. In the case of the Brooklyn Rapid Transit a report is to be made monthly to the commission of the increments in income. Provision is also made in the New York Railways order that if the city of New York is dissatisfied with the valuation of the property of the New York Railways, as placed in evidence at Ihe liearing, the city shall have the right at the end of six months to apply to have the proceedings reopened. Carl M. Owen, counsel for Lindley M. Garrison, as receiver of the Brook- lyn Rapid Transit Company, stated on July 21 that a study of the franchises of the company was being made by George D. Yeomans, chief counsel of the company, so that the application for an increased fare could be made on the basis of the Court of Appeals de- cision in the Buffalo railway case. rate is for the Railway Commission to determine." The court further sug- gested ten tickets for 55 cents. The court agreed that the commission may undertake a valuation of the company's property, as a basis for a permanent rate, but held that a temporary increase should be granted in the meantime. R. A. Leussler, vice-president, and W. A. Smith, general manager of the railway, are firm in their contention that a 7-cent rate is necessary to en- able the company to maintain its stand- ard of service, pay adequate wages, taxes, bond interest and a moderate return to stockholders. No dividends have been paid for more than a year. Salient features of the Supreme Court opinion follow: The fundamental inquiry in fixing rates of a public service utility always is: Wliat rate is necessary in order to yield a rea- sonable average return on a fair valuation of the property for rate-making purposes — such a return as will not discourage but will attract the investment of capital in the utility. Under the constitution and laws of this Relief from Court in Omaha Nebraska Tribunal Holds Railway Must Have Adequate Temporary Rate Pending Appraisal 200 Electric Railway Journal Vol. 54, No. 4 state, the State Railway Commission lias a wide discretion in these matters. A situation due to an unexpected rise in prices and wages, which makes it alto- gether probable that the past and present rate is insufficient to yield a revenue which will pay that fair average return which the law requires, although not constituting what might technically be dominated an "emergency," may, when shown, be suth- cient for the allowance by the commission of a temporary rate. Fairness Shall Govern One of the conclusions of the appeal brief filed by the Omaha & Council Bluffs Street Railway, from the find- ing's and judgment of the State Rail- way Commission, read : The commission should deal with the company with that spirit of fairness whiih will recognize it as a necessary public util- ity, and allow it to charge a rate adequate to maintain its high degree of efficiency and usefulness ; a rate that will recognize the investment therein as entitled to a com- pensatory return ; and not pursue a policy that will bring destruction to the property or compel receivership. The book value of the company's property, as testified to by the Railway Commission's expert, Mr. Powell, was $20,948,038; total outstanding stock, $8,990,000; outstanding bonds, $9,619,- 000. The company contends that it is en- titled to a rate which would give it a net profit over and above cost of operation and maintenance equal to at least 7 per cent upon the value of the property. It holds that a rate which would simply permit the payment of in- terest upon outstanding bonds, or a rate only equal to 2 J per cent upon the value of the property, would be confiscatory and void. Mayor Favors Fare Increase The city of Omaha, represented by Corporation Counsel W. C. Lambe t, resisted the company's application be- fore the Railway Commission and the Supreme Court, and further resistance by the city is anticipated. Methods of valuation are disputed and other fac- tors enter into the controversy. The city is contending that the company's financial statements for the first three months of this year indicate a "re- covery," and that the company will ccme to the end of the year with a balance in its favor. Mayor Edward P. Smith of Omaha on July 21 stated that he believes the 5-cent fare was inadequate and that it was time for the city officials seri- ously to consider the interests of the stockholders of the railway and also the employees of the company. Fenderless Cars in Washington Fenderless cars have been operating in Washington since June 29. Actmg un- der authority from the Public Utilities Commission and after conferences with its officials, the Capital Traction Com- pany removed fenders from the cars operating over one of its divisions. Not enough time has elapsed to judge whether the innovation will be an im- provement over the fender cars, but authorities of the Capital Traction Company think fenderless cars will in- sure fewer accidents to pedestrians, motor vehicles, and also less expense to the railway. Statistics are being com- piled on the relative merits of the fen- derless cars, and the report will be re- ferred to the Public Utilities Commis- sion. It is expected the report will be filed with the commission after the new system has been tried for one month. Opposition Organizing at Pittsburgh Aside from the routine allegations of unreasonableness, the principal feature of the protests Pittsburgh and the sur- rounding smaller municipalities are fihng with the Public Service Commis- sion against the 10-cent cash and 7i- cent ticket fare the Pittsburgh Rail- ways will institute on Aug. 1, is objec- tion to the transfer feature. Under the new tariff transfers, with a few exceptions, are limited to passen- gers boarding cars within an area of a radius of approximately 2 miles from the downtown center, and are good to points within that area only in the general direction of travel. This arrangement is characterized by the protesting municipalities as discrimina- tory against riders in the outside zone. The receivers have filed their reply to the protest of the city of Pittsburgh and a hearing before the Public Serv- ice Commission is expected to be set for an early date, possibly before Aug. 1, when the new tariff is effective. Ottumwa Company Denied Fare Injunction A decision of the District Court oi Iowa compelling the Ottumwa Rail- way & Light Company, Ottuhiwa, la., to return from a 6-cent to a 5-cent fare was affirmed on July 10 by a unanimous opinion of the Iowa Su- preme Court. The company had ap- plied for an injunction restraining the city of Ottumwa from repealing an ordinance of Dec. 23, 1918, permitting a charge of 6 cents required to meet increased operating costs. The repeal of the ordinance was founded on the city's contention that the higher charge was prohibited in the franchise ordinance of 1901, which contained a clause fixing a maximum amount that might be charged for fares. The company in seeking an in- junction claimed that it was compelled to carry on its business at a rate of fare which was confiscatory. The city replied that the franchise constituted a binding contract which neither party could alone modify or revoke, even though changed conditions arose. The question to be decided by the court was whether the franchise ordi- nance in question was ineffective in so far as it attempted to fix rates to endure during the franchise period. The Supreme Court decision upholds the legality of the franchise ordinance in this respect. A contiact with an electric railway corporation that rates fixed shall be unchangeable during the life of the contract is permitted by the statutes as a whole, if that period is not manifestly too long, which in the present instance is denied. It is further argued that the power to fix and regulate charges carries with it the duty to do so, and therefore, that any contract that abrogates or sus- pends this governmental function is void unless express authority is con- ferred to refrain in a particular case from fixing and regulating. The Ottumwa case was discussed in the issue of this paper for May 24, 1919, page 1026. 16,237,719 Jitney Passengers in Six Months in Newark A report filed with Director Archi- bald of the Department of Revenue and Finance at Newark, N. J., by Acting City Treasurer Sugrue shows that dur- ing the first six months of this year a total of 16,237,719 passengers were carried by the jitneys, or within 882,- 933 of the total for the entire year of 1918, when the records show 17,120,652 persons rode in the buses. Operating receipts show a total of $811,885 for the first half of the year, as against $856,032 for all of last year. The Kates act, under which the jit- ney owners were compelled to make a 5 per cent return to the city on their gross receipts, became effective in the last six months of 1916, the year of its passage, and in that period there was a total of 2,662,863 passengers and the cash receipts were $133,043. In the twelve months of 1917 the pas- sengers numbered 8,195,591 and the receipts were $409,774. The returns to the city have steadily increased. The totals show: Six months of 1916, $5,556; 1917, $17,332; 1918, 836,151; and six months of 1919, $33,803. Special Master to Inquire Into Fares W. G. Raymond, dean of the School of Engineering of the State University of Iowa at Iowa City, has been named special master to hear all the facts in the injunction case brought by the Lincoln (Neb.) Traction Company to restrain the Railroad Commission of Nebraska from enforcing rate changes which the railway claims would be con- fiscatory. Federal Judges Walter I. Smith, M. J. Wade and J. W. Wood- rough, instructed Dean Raymond to report upon his findings on the follow- ing questions: the income of the com- pany for the year 1919 from fares; the expenditures during 1919 for service; the net income for the year 1919; the reasonable price that should be charged for the electricity sold by the com- pany; the reasonable price for service furnished during 1919 by the heating plant controlled by the company; fares which should be charged by the com- pany upon its railway lines to insure an income of not less than 7 per cent or more than 8 per cent. The report of the special master will be advisory tr the federal judges only as an aid to determine the issues involved in the case. July 26, 1919 Electric Railway Journal 201 Transportation News Notes One-Man Cars for Lincoln. — Thi State Railway Commission of Nebraska has approved the application of the Lincoln Traction Company to install fifteen safety cars on its lines. Wants Seven Cents in Muscatine. — The Clinton, Davenport & Muscatine Railway, a subsidiary of the United Light & Railways Company, which op- erates the local railway in Muscatine, petitioned the City Council of Musca- tine for a 7-cent fare. Collision on New York Elevated. — A rear-end collision on the Third Avenue elevated line of the Inter- borough Rapid Transit Company, New York City, on July 19, resulted in the death of the motornian of one of the trains and in injury to a number of passengers. All the injured were in the first car of the second train, which telescoped the last car of the first train. St. Louis Installs Safety Zones. — A system of safety zones where pas- sengers can stand while waiting for cars has been placed in operation at two of the busiest corners in St. Louis, Mo. The zones, which consist of a space 6 ft. wide by 48 ft. long running parallel with the tracks, are marked by posts. If the plan works success- fully at these points it will be extended to other parts of the city. Seven Cents in Urbana and Cham- paign.— The Public Utilities Commis- sion of Illinois has granted the Urbana & Champaign Railway, Gas & Electric Company, included in the Illinois Trac- tion System, an increase in fares from 5 cents to 7 cents for city railway service, applicable in Urbana and Champaign beginning on Aug. 1. Four tickets will be sold for 25 cents. The company petitioned for an increase to a 10-cent fare. Opposition Disanpears. — Ordinances introduced in the City Council of Kan- sas City, Mo., which would interfere with and perhaps eliminate the use of one-man street cars, have been perma- nently tabled. The safety cars have not had a step accident since being put into service. These cars carried 271,- 000 passengers in May, and 290,000 in June. The franchise of the company requires two-man operation but places the final decision on the matter with the board of control. The board of control ordered the use of one-man cars. Fare Order Modified.— The Public Service Commission for the Second District of New York at its regular session on July 10 passed an order re- voking and cancelling part of the order to the Empire State Railroad Corpora- iion on July 1 under its petition for authority to increase passenger fares in and between Syracuse and Oswego and intervening points. The part of the order revoked and cancelled called for the sale of coupon ticket books of 100 coupons, each of the value of 5 cents, at $3.75 a book, the books good for use of purchaser and family within three months. Trenton Will Not Participate.— The City Commission of Trenton, N. J., has decided not to participate with the League of New Jersey Municipalities in opposing the zone fare system as proposed by the Public Service Rail- way. This decision was reached when it was announced at a conference with Mayor Donnelly that Trenton's assess- ment as a participant in connection with the case would be $11,000. It is expected that the League of New Jer- sey Municipalities, composed of mayors of the various towns, will spend $100,- 000 in connection with the presenta- tion of its case. Hearing Scheduled on Maynard Fares. — The Public Service Commis- sion of Massachusetts will begin hear- ings soon on a new schedule of fares which the Concord, Maynard & Hudson Street Railway, Maynard, proposes to put into eff'ect on Aug. 15. The pres- ent fare of 6 cents for a ride in any two continuous zones with charge of 3 cents for each additional zone, is raised to 5 cents within any fare zone, with a charge of 5 cents for each ad- ditional zone. The present fourteen fare zones on the main line will be lengthened and reduced to ten, while the four on the Acton branch are re- duced to three. Considering Fare Increase. — A com- mittee made up of representatives of the Chamber of Commerce of East Liverpool, Ohio, the Trades and Labor Council and the City Council is con- sidering a proposal to recommend a fare increase on the East Liverpool lines of the Steuben"ille, East Liver- pool & Beaver Valley Traction Com- pany. This committee recently recom- mended a 5-cent fave with a 1-cent transfer charge within city limits. The Trades and Labor Council, however, de- clined to approve this recommendation and suggested inst^rd a straight 7- cent fare. The latter suggestion is now under consideration by the various interested parties. Flat Fare Payment for Postmen. — The Kansas City (Mo.) Railways has made a new contract with the post office department, providing for a flat payment by the department of about $5 per month for each postman, the mail carriers to ride without paying fare. The former contract, at $3 per month per carrier, expired on March 1. Since that time, the carriers have been paying fare at 6 cents. It is un- derstood that the delay in securing a contract was due to the lack of author- ity of the local post office officials to enter into an agreement involving an increased payment. The higher charge was authorized by the Washingtion officials. Fare Revision on Stamford Line. — A new zone plan, intended to increase the earning power of the New York & Stamford Railway, Port Chester, N. Y., went into effect on July 11. The com- pany's line extends from New Rochelle to Stamford, Conn. Under the new plan the city, town and village boun- daries will hereafter mark the 5-cent fare limits. It formerly cost 25 cents to ride from New Rochelle to Stamford. The new fare is 30 cents. Transfers from the main line to the local lines in Port Chester, which formerly were free, cost 3 cents, and transfers to the Sound Beach, Conn., line have been eliminated. Transfers to Stamford city lines cost 1 cent. Formerly these transfers were issued free. Philadelphia Looking Before It Leaps. — In reply to the many rumors as to the company's intention in the matter of increased fares, T. E. Mitten, president of the Philadelphia (Pa.) Rapid Transit Company, stated that no application to the Public Service Com- mission had been made or was con- temnlated in t're near future. Presi- dent Mitten states that it will be neces- saiy to secure greater revenue to meet the constantly increasing cost of wages and material. In order that intelligent action may be taken when the emer- gency in Philadelphia arises, a care- ful record is being made of the re- sults secured from the various experi- ments conducted by electric railways in other cities. Fares in Colorado Springs Remain Unchanged. — Colorado Springs is a "home rule" city and under the recent decision of the Supreme Court of Colorado jurisdiction over its electric railway is lodged with the municipal authorities. Officials of the Colorado Springs & Interurban Railway say thit while it would be possible for the Council of Colorado Springs to take ac- tion similar to that of the City Council of Denver they do not anticipate any such move. There is no opposition to the present 6-cent fare, which was granted three weeks ago by the Public LTtilities Commission, with the ap- proval of the city officials. Both of the daily newspapers in Colorado Springs have advised the people of the justice of a further increase if such is proved to be necessary. Extends Six-Cent Fare Order. — Pending consolidation of the Washing- ton Water Power Company and the Spokane & Inland Emnire Railroad, Spokane, Wash., the Public Service Commission of the State of Washing- ton on June 30 extended for a period of ninety days its order of April 9 last gi"anting the companies a 6-cent fare. The receivership of the Inland Com- pany has delayed the merger of the two traction systems since, as matters now stand, no one can bind the Inland. Before definite action can be taken final disposition will have to be made of the Inland's property. A return to a 5-cent fare fcr a given period has been pi-onosed to enable the commission to obtain data on comparative earnings under the two plans. 202 Electric Railway Journal Vol. 54, No. 4 Personal Mention Changes in Eastern Massachusetts Personnel Brief Biographies of Members of the New Organization Announced by the Public Trustees The trustees of the Eastern Massa- chusetts Street Railway, the successor to the Bay State Street Railway, Bos- ton, Mass., have announced the follow- ing new organization: General Officers Vice-president and general manager, R. B. Stearns. Assistant general manager, Howard F. Fritch. General auditor, Caleb S. Jackson. Assistant treasurer, Louis W. Well- man. Attorney, Philip G. Carleton. Department Heads Rolling stock, Frank D. Ward. Power and lines, J. H. Libbey. Tracks and buildings, Frank B. Walker. Purchasing and stores, Walter C. Bolt. Public relations, Fred A. Cummings. The public trustees appointed by the Governor will have general charge of the property without a president. Among those who terminate their serv- ice with the company are President P. F. Sullivan, Vice-President Robert S. Goff and Treasurer C. R. Rockwell. Robert B. Stearns, vice-president and general manager of the company, was graduated from Purdue University in the class of 1889. After serving as civil engineer with the Columbian Ex- position at Chicago in 1893 and in the United States Engineers service, he was engaged from their inception in the construction of the Northwestern Elevated Railroad, the Union Loop and the extension of the Lake Street Ele- vated Railway, Chicago (now the Chi- cago Elevated Railways), as assistant chief engineer of construction and later superintendent in charge of operation. From August, 1911, to Sept. 1, 1917, he was vice-president and general man- ager of the Milwaukee Electric Rail- way & Light Company. Under his management practically all of the Mil- waukee cars were rebuilt and standard- ized maintenance adopted, two new car stations were designed and finished, many miles of new track laid and other improvements of service made. He in- augurated the Employees' Mutual Bene- fit Association and the Employees' Mutual Building and Loan Association. Mr. Stearns was one of the pioneers in advocacy of the zone system, which has been in operation for some years in Milwaukee and vicinity. He also introduced the zone system on the Bay State lines and the idea has been strongly indorsed by the Massachusetts Public Service Commission in its printed reports. At the convention of the American Electric Railway Associa- tion in Atlantic City, in 1914, he made an address, "A Zone System of Fares in Practice." While with the railway at Milwaukee, the membership of the Employees' Mutual Benefit Association, of which Mr. Stearns was a director, increased from 1629 to 2994, and on his departure for the East the directors presented him with an embossed expres- sion of their good wishes signed by every man on the board. Mr. Stearns also encouraged saving and building- loan associations, and brought about profit-sharing plans which made him very popular with the men. Howard F. Fritch, assistant general manager, was born on Sept. 24, 1888. He was graduated from the Worcester Polytechnic Institute, Electrical Engi- neering, class of 1910. In June, 1910, he entered the employ of the Boston & Northern Street Railway, the prede- cessor of the Bay State and of the Eastern Massachusetts. He started work with the company in the time- table department, which was then being organized. The duties of the depart- ment were enlarged to include traffic studies and statistical work in connec- tion with labor matters and fare cases. For several years Mr. Fritch was as- sistant in active charge of the depart- ment, and in 1916 was placed in charge of the department as superintendent of the traffic department. Caleb S. Jackson, general auditor, is a native of Pennsylvania. He was graduated from Yale in 1894 with the degree of bachelor of arts. For sev- eral years he was connected with the United Electric Light & Power Com- pany, New York, as purchasing agent and assistant treasurer. For ten years he was connected with the United Gas Improvement Company, Philadelphia. His experience has also embraced terms of service with several manufacturing enterprises. In addition he has devoted considerable time to public accounting. Louis W. Wellman, assistant treas- urer, was graduated from the Athol High School in 1893, and from the Bur- dett Business College in 1894. He was cashier of the Massachusetts Elec- tric Companies from 1899 to 1917, and assistant treasurer Bay State Street Railway from Nov. 1, 1917, to the date of the reorganization under the order of the trustees of the Eastern Massa- chusetts Street Railway. Frank D. Ward, in charge of rolling stock, joined the Grand Avenue Rail- way, Kansas City, Mo., in 1884, with John Henry. He was connected with the Lake Street and the Northwestern Elevated companies in Chicago from 1897 to 1903 as master mechanic of the two lines and superintendent of the Lake Street property. He left Chicago for London to become identified with the Underground Electric Railways. He designed and equipped the cars for the system in London. He then worked a number of years for the American Car & Foundry Company in England and Italy. In 1911 he became superin- tendent of rolling stock for the Bay State Street Railway, and held that position up to the reorganization, under trustees, of the Eastern Massachusetts Street Railway. Joseph H. Libbey, in charge of power and lines, was born on March 21, 1877, at Billerica, Mass. He was graduated from the Newton High School and the Lawrence Scientific School, Harvard University, matriculat- ing from the latter in 1898 with the degree of S.B. In 1899 Mr. Libbey en- tered the employ of the Bethlehem Steel Company, engineering department. In 1900-1901 he was with Westinghouse, Church, Kerr & Company, New York. From 1903 to 1905 he was mechanical engineer on power station work for the Boston & Northern and the Old Colony Street Railway. In 1905 and 1906 he was assistant electrical engineer of the New York, New Haven & Hartford Railroad at New Haven. From 1907 to 1913 he was with the Stone & Webster Engineering Corporation on central station work, transmission lines and investigations. In 1913 he entered the service of the Bay State Street Rail- way as assistant electrical engineer on line construction and underground con- duit work. On June 1, 1917, he was appointed electrical engineer of the Bay State Street Railway. He has since that time been in the company's employ. Frank B. Walker, in charge of tracks and buildings, was graduated from the University of Minnesota in 1897 as a civil engineer. He then did special work with the class of 1901 at the Massachusetts Institute of Tech- nology. He has been in the engineering departments of - the Minneapolis & St. Louis and the Minneapolis, St. Paul & Sault Ste. Marie Railroads on con- struction; chemist and engineer for the Cleveland Cliffs Iron Company, Glad- stone, Mich., and for about fifteen years was assistant engineer and resident en- gineer for the Great Northern Railroad. He had charge of construction of double-track railroad tunnel under the city of Seattle, and was in charge of design and construction of many of the larger docks and railroad terminals on the Great Northern Railroad. Mr. Walker entered the employ of the Bay State Street Railway in the roadway department in 1914, and has been with the system continuously until the pres- ent time vAth the exception of nine months, when he was with Fay, Spof- July 26, 1919 Electric Railway Journal 203 ford & Thorndike, consulting engineers, Boston Army Supply Base. He be- came superintendent of way and struc- tures of the Bay State Street Railway in April, 1919. Walter C. Bolt, in charge of pur- chasing and stores, was graduated from the University of Michigan in the elec- trical engineering course with the class of 1911. He was assistant to rolling stock repair shop foi'eman of the Mil- waukee Electric Railway & Light Com- pany, and assistant to the superintend- ent of rolling stock of the Milwaukee company from June, 1912, to Septem- ber, 1917. He has been investigating engineer of the Bay State Street Rail- way from September, 1917, up to the time of his recent appointment as pur- chasing agent. A. Jay Boardman, the new manager at Fall River, succeeds Herbert H. Read, who continues in the employ of the company in the auditing depart- ment in Fall River. Mr. Boardman has been with the Indianapolis Traction & Terminal Company and division su- perintendent of the Terre Haute, In- dianapolis & Eastern Traction Com- pany. He is thirty-three years of age and was graduated from Cornell Uni- versity. He enlisted in the engineers corps and returned from France as captain of ordnance. He had charge of artillery repairs for all material in the Second American Army in Toul, France, when the armistice was signed last November. Frank I. Hardy, the new manager at Salem, succeeds Timothy A. Dona- hue. Mr. Hardy has been in the elec- tric railway business since 1900. He has been connected with the Union Traction Company of Indiana and the Fort Wayne & Northern Indiana Trac- tion Company, and was general man- ager of the Chicago, South Bend & Northern Indiana Railway and of the Southern Michigan Railway, succeed- ing with those companies Charles G. Emmons, now president United Rail- ways & Electric Company, Baltimore, Md. Mr. Hardy was also general su- perintendent of railways of the North- ern Ohio Traction & Light Company, Akron, Ohio. James G. Nellis, the new manager at Quincy, succeeds Acting Manager Joseph A. Phelan. Mr. Nellis for ten years was superintendent of the Amster- dam Division of the Fonda, Johnstown & Gloversville Railway, Fonda, N. Y. He started in the electric railway busi- ness in 1893 with the Cayadutta Elec- tric Railway. Prior to going to Amster- dam he was superintendent of the Mountain Lake line of the Fonda, Johnstown & Gloversville Railway. Joseph A. Phelan, the new manager at Gloucester, was transferred from Quincy. He succeeds John L. Niles, who continues in the employ of the company in another capacity. Mr, Phelan was graduated from the ranks in Lynn, where he was starter prior to his Quincy appointment. C. D. Emmons Elected President of Baltimore Company Charles D. Emmons, general man- ager Boston (Mass.) Elevated Railway, was elected president of the United Railways & Electric Company, Balti- more, Md., at a meeting of the board of directors July 23. Mr. Emmons succeeds Thomas A. Cross, who be- comes chairman of the board. After the meeting the board issued a state- ment relative to the expansion of its organization so as better to meet the problem of supplying service to the community during the present period of growth, as far as permitted by avail- able and potential revenue applicable to increased facilities. Mr. Emmons has been general man- ager of the Boston company since No- vember, 1918, prior to that having been general manager of the Boston & Wor- cester Street Railway and an executive in interurban railway service in the Central West. To a representative of the Electric Railway Journal, Mr. Emmons expressed his regret at leav- ing Boston, but said that he anticipated much interest in his new work in Balti- more. He has not yet decided when he will take up the duties of his new post. R. K. Brown has been appointed superintendent and chief engineer of the Salt Lake & Utah Railroad, Salt Lake City, Utah, vice J. R. Ellis, re- signed. Harold D. Larrabee, whose appoint- ment to the Eastern Connecticut Power Company and the Shore Line Electric Railway, with headquarters at Nor- wich, Conn., was reported in the Elec- tric Railway Journal for July 19, on Aug. 1 assumes the position of gen- eral manager of the Eastern Connecti- cut Power Company, which is closely allied with the Shore Line Electric Railway, but entirely distinct from it, R. W. Perkins being president of both companies. Mr. Larrabee's time will be devoted to the management of the power stations, a steam plant on the Thames River near New London of 20,000 kw., and a hydraulic plant on the Quinnebaug River of 2500-kw. ca- pacity and the development of a power business in eastern Connecticut. M. G. Stratton is general manager of the Shore Line Electric Railway properties, which position he has held for the last two years. Patrick F. Sullivan, president of the Bay State Street Railway, Boston, Mass., retired from the management of that property following the organi- zation of the Eastern Massachusetts Street Railway as the successor com- pany and the passing of the property to the board of public trustees. Mr. Sullivan has many private interests to which it is announced he will give all his time in the future. As president of the Bay State Street Railway Mr. Sullivan headed the largest single electric railway system in the United States for a longer period than any other chief executive of an electric railway. In 1888 he was engaged by the directors of the Lowell & Dracut line and the Lowell Horse Railroad. After three years he was promoted to be general manager for these com- panies. He remained as general man- ager up to 1899 when, after several weak and independent companies had in the meantime been merged, there being two groups. Old Colony Street Railway and Boston Northern Street Railway, he was called to go to Boston and be chief executive officer of the merged lines. He thus continued in this capacity up to the present time. Clarence Renshaw, general engineer of the railway department of the Westinghouse Electric & Manufactur- ing Company, East Pittsburgh, Pa., has resigned his position with this com- pany to accept one with the National Metal Moulding Company, also of Pittsburgh, Pa. Mr. Renshaw's resig- nation became effective on July 15. As a member of the Westinghouse staff of railway experts Mr. Renshaw has become very well known to the rail- way fraternity. He was graduated from the Massachusetts Institute of Technology and has been connected with the Westinghouse company in its railway department for more than twenty years. During the period of the war he served as a railway expert with the United States Fuel Adminis- tration for four months and with the Housing Bureau for two months. While with the Fuel Administration Mr. Renshaw made a very valuable study of the skip-stop plan of opera- tion. He has contributed largely to the technical press on matters of rail- way equipment and operating methods. Obituary Edgar S. Fassett, at one time gen- eral manager of the United Traction Company, Albany, N. Y., died on July 20, at Lake George, N. Y. A native of Albany, Mr. Fassett joined the trac- tion system, then known as the Albany Railway, in 1885 as an inspector. He was subsequently advanced to assis- tant division superintendent, to divi- sion superintendent, and in 1893, to superintendent of the company. When the United Traction Company was formed in 1900 Mr. Fassett was made general manager. In 1906 when control of the system passed to the Delaware & Hudson Railroad, Mr. Fassett was appointed general manager of the new company. He resigned in 1912 and since that time has represented the New York Switch & Crossing Com- pany and has been engaged in other business in New York City. Mr. Fas- sett was long an active member of the Street Railway Association of the State of New York, and was president of that body in 1908. Manufadures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER. SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS Consumers Urged to Stock Coal Better Grades of Bituminous Contract- ed For — Anthrac te in Better Shape — Car Shortage Felt Bituminous coal of the better grades is difficult to procure and operators are no longer entering into contracts for deliveries in the future. They feel that an increased demand is sure to come, with advances in price, and at present they are cleaning up their old orders. There is still available some soft coal of grades not so good as the best, but this is rapidly being absorbed by con- tract, and consumers are being urged to lay in their stocks as soon and as fully as possible to combat the antici- pated shortage. Car Shortage Already Felt Production of bituminous coal this year in the United States through the week ended July 12 is 230,522,000 tons, which is 77,601,000 less than that pro- duced through that date last year. There is now no free bituminous coal in the market. Already there is begin- ning to be felt a car shortage which is expected to become more serious as the year goes on. Inability to release cars from service for needed repairs has caused breakdowns in transit and longer hold-outs when they do go to shop. This has resulted in thousands of cars out for repairs and still other thousands scrapped. Besides, many cars ordered by the Railroad Admin- istration have been refused by the rail- roads, because of the high price de- manded for them. The necessity for moving grain will soon be an added factor to the seriousness of the car shortage. Labor is scarce with little outlook toward bettering. Where the better grades of coal are mined, labor is re- fusing to work more than four days in a week. Hard Coal Situation Better The anthracite field, however, holds out better hope to the power plant operator who may not have contracted for all the coal necessary to carry over till next season. There is still some free steam-size coal available, but it is not expected to last long. Contracts can be made for this grade of coal, bur no information is available as to the length of time this condition will con- tinue. Full schedule prices are being somewhat shaded although in general they are holding pretty well. There is still a tendency to hold off on con- tracts, which is liable to be reflected in the coal pile this coming winter. Production of anthracite coal this year through the week ended July 12 was 42,078,000 tons, while through the same period last year it was higher by 10,870,000 tons. Steel Pole and Tower Market Better Domestic and Foreign Fields Expand- ing— Galvanized Work Higher — Shipments Lengthening Business in the steel pole market is becoming better and is showing much improvement over the volume of buying done in the spring. Combination trol- ley and lighting poles are in better de- njand in the domestic market. Orders are well scattered throughout the coun- try, and are in better volume per order. Foreign orders are coming in in a more favorable manner and the character of the inquiries is becoming better. Sev- eral countries in Europe, the East In- dies, South America and Mexico are at present in the market for steel poles. All Shipments Lengthening Prices on the rolled steel poles have been reported steady on account of contracts now held; steel pipe has ad- vanced in price, so it is expected that when these contracts run out the price on the poles will advance. Pipe fac- tories are working to capacity with the heavy ordering for the oil fields, and shipments on hollow steel poles are consequently lengthened. The ship- ments run from four to twelve weeks depending on how close to the time of rolling an order comes in. Fabricated and expanded poles are on a shorter shipment schedule at this time, more in the neighborhood of two to four weeks. Increased buying of structural steel, however, is expected to lengthen time of shipments. There has been no price advance reported for this class of pole. Steel tower business is 10 to 20 per cent of normal, according to manufac- turers. The domestic orders are show- ing more activity as regards number of orders, but the size of the orders is still small. ComT)anies which would normally order 2000 towers are order- ing only 200. Activity is shown on th? Pacific Coast, the Central States and in the East where the larger holding com- panies are putting through extensions to transmission lines. Orders and in- quiries for foreign consumption are on the increase and much improvement is expected in that direction. Hardly a European counti-y but has plans under way for large extensions and develop- ments of hydro-electric properties and transmission. Prices on these fabricated towers have increased 10 to 15 per cent with increases in the price of spelter for galvanizing and the condition of the labor market. Shipments are reason- able at this time, but are expected to become larger with the steadily in- creasing demand for structural steel. Miscellaneous Material Price Advances Wire, Bonds, Segments and Coils Are Higher — Non-Metallic Conduit Also Rises With copper for July delivery quot- ed at 23.50 cents a pound, 1 cent higher than last week, there have been increases in several copper products widely used by electric railways. Wire at the mill is up 1 cent to 25.50 cents. Rubber covered base is up 2 cents to 28 cents, and late reports pre- dict a further advance. Weatherproof wire is being quoted on 26 to 27 cent base, a rise of 2 cents, and bare wire on 25.50 to 26 cents. This latter ad- vance is 2i to 3 cents. Rail bonds have responded with another change of 5 points in the dis- count, the discount dropping from 20 to 15 per cent. This represents an in- crease in price of nearly 6 per cent. Commutator segments, field coils and armature coils for railway motors have advanced 10 per cent in price, in keep- ing with the advance anticipated during the past few weeks. Controller seg- ments and fingers have not been changed, according to latest advices, but their advance is expected soon. Line Brass Prices Constant Certain brass and copper manufac- tured products have gone up 1 cent since last week. Hot rolled copper sheet is quoted 32.50 cents, round copper rods are 29.25 cents and seamless cop- per tubing is 36.50 cents. High brass sheet and wire is 26.75 cents. Over- head line brass and copper material has not advanced to date, but some manu- facturers' representatives expect these advances almost daily. Flexible armored conductor has advanced in price $5 per 1000 ft., and further up- ward changes have been predicted. Flexible non-metallic conduit has gone up about 14 per cent. Price advances on friction tape have been spotty. A report has been received giving a 5 cent per pound increase on certain brands. Some prominent manufac- turers, however, have advised no in- crease in price, and one of these does not exnect to do so during 1919 because of sufficient stocks of raw material on hand. July 26, 1919 Electric Railway Journal 205 Japanese Wire and Cable Competition As an instance of the competition being offered by Japanese cable in for- eign markets comes a report in the London Electrician that at a recent meeting of manufacturers the govern- ment was urged to make a declaration of its economic policy with respect to unfair foreign competition. It was pointed out that the English cable makers, which employed some 33,000 people, had before the war exported products everywhere, including Japan. During the war, however, this was impossible, and as a result, it was stated, the Japanese built large fac- tories and have been able to make con- siderable inroads upon the British trade in India and in the colonies and are to- day even serving the British home trade. The competition, it was held, was not fair. The labels on Japanese cables had been printed in imitation of the British CMA labels, using almost the identical words excepting with a very small "not" which might very easily have been overlooked by quick or care- less buyers. It was pointed out that the British cable makers pay labor from $9 to $15 for a forty-seven-hour week and do not think it is fair to be placed in competition with Japanese cables manufactured by labor receiving a few cents an hour. New Trade Mark Law in Honduras Information has been received that a new trade-mark law has been enacted in Honduras and will be in force from Aug. 1, 1919. Under the new law there will be a registration fee of $50 gold for each mark, but this increased fee will not apply to applications filed be- fore Aug. 1. Rolling Stock Sioux Falls (S. D.) Traction System, announces that it is considering the ad- visability of purchasing from three to five light-weight safety cars to replace heavier equipment. San Francisco, Napa & Calistoga Railway, Napa, Cal., announces the pur- chase of a steel interurban motor coach from the Visalia Electric Railway, Ex- eter, Cal. This was built by the Moran Shipbuilding Company, in Seattle, Wash. Eastern Wisconsin Electric Company, Sheboygan, Wis., announces that the fifteen new Birney safety cars for its Oshkosh division, ordered on April 10, are expected for operation the last week in July. They will replace converted one-man cars now in operation. The Vincennes Traction Company, Vincennes, Ind., is to receive some new rolling stock. Edward C. Theobold, re- cently appointed receiver for the Mer- cantile Trust Company of St. Louis, which holds the first mortgage bonds, announced that $50,000 would be spent for new cars and other improvements providing the Federal Court would ap- prove of the expenditure. Track and Roadway Chicago (111.) City Railway.— The Chicago City Railway is planning an extension of its Twelfth Street surface line to cost approximately $1,000,000. The expense of constructing a subway under the Illinois Central tracks will be borne by the railroad, the South Park Commission, and the city. New Orleans Railway & Light Com- pany, New Orleans, La. — An extension will be built by the New Orleans Rail- way & Light Company to the Henry Clay-Coliseum line from Henry Clay Avenue up Magazine Street to the entrance of Audubon Park. Salisbury, Md. — It is reported that plans are being made by maunfacturers on the Eastern Shore of Maryland for the construction of a fast electric rail- way from Salisbury to Tolchester Beach, about 75 miles. It is aimed to make closer passenger and freight con- nections between the Eastern Shore and Baltimore than now exist. The route suggested for the line is from Salisbury via Sharpstown, Federals- burg, Denton, Ridgely, Price, Church Hill and Chestertown. H. H. Messen- ger of Federalsburg, Md., is interested. Trenton & Mercer County Traction Corporation, Trenton, N. J. — The Tren- ton & Mercer County Traction Corpo- ration has begun the work of building the extension from the Bridge Street line to the Municipal dock along the Delaware River. Trenton & Mercer County Traction Corprraticn, Trenton, N. J. — The Board of Public Utility Commissioners of New Jersey has approved of the sale of 372 acres of land in Hamilton Town- ship by the Trenton & Mercer County Traction Corporation, Trenton, N. J., to the Pennsylvania & Newark Rail- road Company. The consideration was $15,000. The latter company desires the land for the continuation of the proposed freight line across the Dela- ware river below Trenton to connect with the line near Raritan Bay. North Carolina Public Service Com- pany, Greensboro, N. C. — Improve- ments amounting to approximately $50,- 000 will be made by the North Carolina Public Service Company in the con- gested section of Elm Street. All of the electric light and street car poles will be replaced by iron posts. The plan also includes the laying of double tracks from the courthouse square to a point just below the intersection of North Elm, Bellemeade Avenue and Church Street. Cape Bretcn Electric Company, Ltd., Sydney, N. S. — The construction of an extension from Glasgow to New Waterford is under consideration by the Cape Breton Electric Company. Brooklyn (N. Y.) Raiid Transit Com- pany.— Notice has been served by Transit Construction Commissioner John H. Delaney upon officials of the New York Municipal Railway Corpo- ration (B. R. T.) that they must under- take at once to secure the necesary legal authority to permit the erection of the connecting link between the city- constructed end of the Culver line at Sheepshead Bay Road and the company's Coney Island terminal at Surf Ave- nue. Commissioner Delaney has in- structed counsel to prepare the neces- sary legal papers to have the city ac- quire the land by condemnation if the receiver of the B. R. T. system fails to act within a brief period. In that event the city itself will undertake the construction of the 900-foot link. Until this link is in operation it has been held that the 5-cent fare to Coney Island cannot go into effect. Power Houses, Shops and Buildings Interstate Public Service Company, Indianapolis, Ind. — A new passenger and freight station will be built by the Interstate Public Service Railway at Franklin. Union Traction Company of Indiana, Anderson, Ind. — The Public Service Commission of Indiana has ordered the Union Traction Company of Indiana to rehabilitate its power plant at Ander- son so that adequate and regular serv- ice can be given to the cities along the line. The commission ordered the com- pletion of repairs to the plant already undertaken at the earliest possible date and also ordered the installation of fur-ther equipment which the engi- neering department of the commission believed was needed. Public Service Railway, Newark, N. J. The Public Service Railway has purchased from the Trenton Banking Company the big marble institution sit- uated at 16 South Warren Street, Trenton, N. J., and will turn the same into a terminal. Some time ago the City Commission of Trenton ordered the Public Service Company and the New Jersey & Pennsylvania Traction Corporation not to allow cars to stand in the streets while waiting to make the return trip. Both companies at that time said they could not purchase the necessary property for the erection of terminals. The Public Service Rail- way has a waiting room at 12 South Warren Street and is negotiating to buy two other adjoining properties. This would give the company a large tract in the center of the city for the erection of the terminal, where the cars on the Newark and Camden divisions could be kept and a modern waiting room established. Cincinnati (Ohio) Traction Company. Work will be begun at once by the Cincinnati Traction Company on the erection of a high-tension power line from the Pendleton station on Eastern Avenue to the Hyde Park carhouse for the purpose of supplying sufficient power for the operation of the Madi- sonville street cars. 206 Electric Railway Journal Vol 54, No. 4 Trade Notes Chicago Pneumatic Tool Company, Chicago, 111., has moved its Minneapolis office from the Metropolitan Bank Building to Fifth Avenue and Fifth Street, South. Ford Mica Company, which is now occupying the entire building at 14 Christopher Street, New York City, an- nounces that it has negotiations under way for the establishment of direct sales offices in London and Switzei'land. Indiana Mill & Lumber Company, 1405 Fisher Build.ng, Chicago, has an- nounced that it is handling a line of Southern white cedar poles in addition to its line of hardwood and pine rail- road ties, piling, pine and oak timbers. E. C. Ryan has been appointed mana- ger of the Chicago branch of the Elec- tric Controller & Manufacturing Com- pany, with offices in the Monadnock Building, Chicago. Mr. Ryan was for- merly connected with the New York office. Lapp Insulator Company, Inc., Le Roy, N. Y., announces the appointment of the following representatives: Wetmore- Savage Company, Boston, for New England; and Shield Electric Company, 149 Broadway, New York, for New York City. Independent Lamp & Wire Company, 1733 Broadway, New York City, with works at Weehawken, N. J., has ac- quired property on Runyon Street, New' ark, N. J., 260 ft. x 580 ft., for a new four-story plant designed to give em- ployment to about 500 persons. Ohmer Fare Register Company, Day- ton, Ohio, devotes the June 25 issue of its employers' periodical, the Ohmer Fare Register, to an illustrated de- scription of the work done by the com- pany in carrying out its war contracts for naval gun mounts and sights. Frank C. Van Etten has resumed his position in the enginering department of the Delta-Star Electric Company, Chicago, 111., after an absence of eighteen months in France, where he has been connected with some of the largest installations in the A. E. F. as captain in the Ordnance Department. Holdcn & White, Inc., Chicago, an- nounce that they have received an or- der from the Terre Haute Traction & Light Company, Terre Haute, Ind., for complete equipment with Anderson slack adjusters for installation on safe- ty cars. They also announce the re- ceipt of an order for safety car slack adjusters for the new cars purchased by the Kansas City Railways. Blaw-Knox Company, Pittsburgh, Pa., announces the opening of an office in the Little Building, Boylston and Tre- mont Streets, Boston, Mass., and in the Owen Building, Detroit, Mich. A. W. Ransome, formerly of the New York office, assumes the duties of New Eng- land manager. H. J. Desson has been transferred from the Pittsburgh office to Detroit to assume the duties of man- ager of the Michigan district. Dunbar Brothers Company, Bristol, Conn., manufacturer of springs, reports it is tearing down all the old buildings connected with its plant and replacing them with a large brick extension, which will be equipped with the latest appliances for the prevention of fire. The floor space will be materially in- creased, when these additions are com- pleted, and the necessary machinery installed, which it is contemplated will be in about four months' time. American Steel Foundries has issued $9,000,000 of 7 per cent cumulative pre- ferred stock for use in the purchase of control of the Griffin Wheel Company. The former company operates nine plants for the production of steel cast- ings which are used principally in new construction; the latter company oper- ates eight plants for the production of iron car wheels, and 85 per cent of its business is renewal work. The present managers will remain in control. Cleveland Switchboard Company is now housed in its new factory building at 2925 East Seventy-ninth Street, Cleveland. The building is much larger than the former one. The present offi- cers of the company are F. C. Hafe- meister, president; F. F. Hafemeister, secretary; E. C. Learning, treasurer; A. N. Rogers, sales manager and E. F. Blair, assistant manager. The company has opened a branch sales office at 1938 Dime Savings Bank Building, Detroit, Mich., with J. D. Nelson in charge. The Central Steel Company, Massil- lon, Ohio, has opened up new offices in Detroit, Mich., in the Book Building. Arthur Schaeffer, former assistant director of sales at the home office, Massillon, Ohio, has been appointed district manager of sales, with Frank Gibbons as his assistant. Mr. Gibbons, who has just joined the organization, has been associated with the Carbon Steel Company for five or six years where for the last several months he has been district sales manager of their Detroit office. C. D. M'Clary, who has been with the Western Electric Company since Feb- ruary, 1910, has been made sales man- ager of the Pittsburgh office, effective July 1, 1919. Mr. M'Clary was first connected with the Philadelphia office and transferred to Pittsburgh in the later part of 1910. In April, 1916, he joined the sales force, and in April, 1918, was promoted to assistant sales manager. He has held that position until his present promotion. Charles G. Du Bois has been elected president of the Western Electric Com- pany to succeed H. B. Thayer, who has resigned after thirty-eight years of serv- ice to assume the presidency of the American Telephone & Telegraph Com- pany. Mr. Thayer was elected chair- man of the board. Mr. Du Bois was born in 1870. After his graduation from Dartmouth College in 1891, he joined the Western Electric Company in New York, as a clerk in the account- ing department. In 1898 he was elect- ed secretary of the company. Shortly afterward, he was also made super- visor of branch houses. This carried with it the opening of a large number of distributing houses, which are now a part of the company's organization. In 1907 Mr. Du Bois v/as tranferred to the American Telephone and Tele- graph Company as its comptroller, On Oct. 1, 1918, he rejoined the West- ern Electric Company as vice-presi- dent. New Advertising Literature Spray Engineering Company, Boston, Mass.: Bulletin No. 257 on ''Spraco Air Washing and Cooling Equipment." Ohmer Fare Register Company, Day- ton, Ohio: Circular showing the appli- cation of larger type Ohmer fare registers to one-man safety cars. Electric Service Suppl'es Company, Philadelphia, Pa.: "One Hundred Per Cent. Lightning Protection" is the title of Booklet No. 137. Packard Electric Company, Warren, Ohio: Bulletin 201 on Transformers. A section containing technical data on the operation of the transformers is in- cluded. Metal & Thermit Corporation, New York, N. Y.: Current issue of Reac- tions devoted to welding of large masses of metal and to repairs in i;ailroad shops. Westinghouse Electric & Manufac- turing Company: A publication cover- ing the process of electric arc welding and the necessary apparatus required for this process. This publication com- pares the different processes of weld- ing. Wellman-Seaver-Morgan Company, Cleveland, Ohio: Bulletin No. 22 on "Chai-ts Giving the Relations in Any Shaft Between Power, Shaft Diameter, Torsional Stress and Speed." The data were prepared by one of the company's engineers for distribution on request to all engineers and draftsmen. Massey Concrete Products Corpora- tion, Chicago: Illustrated pamphlet describing the wide variety of rein- forced concrete products included in the company's line. More detailed in- formation for ordering purposes is be- ing included in a series of supplements to this catalog. The first two on rail- way culvert pipe and on pipe for high- way culverts and sewers will be ready for distribution in the near future. Another will relate to hollow reinforced concrete poles, and another to piling. McGraw-Hill Book Company, Inc., New York: Illustrated booklet entitled "Ten Years," issued in commemora- tion of the completion of the first dec- ade in the career of this organization. It contains portraits of the officers and heads of departments and of the editors of some of the important series and handbooks. The company published on the average slightly more than one book per week during its entire career, increased its sales from about 73,000 to nearly 655,000 volumes per annum, and increased the royalty payments to authors in the ratio of 1 to 13 ectric Railway Journ Consolidation of Street Railway Journal and Electric Railway Review Volume 54 New York, Saturday, August 2, 1919 Number 5 "The Safety of the State Is the Highest Law" THIS ancient maxim of Roman law can well be ap- plied in Chicago. In the days when it was expected that any increase in wages would be absorbed by the railway company without any increase in fare the pub- lic believed that it could afford to be largely indifferent to disputes as to wages between an electric railway company and its employees. Now that it is recognized that the final bill for such an increase must be met by the public in higher fares, each community must take steps to protect itself against extortion. Our present system of settling the wages on a pub- lic utility places too much power in the hands of the employees. By refusing in a body to work they can paralyze the life of an entire community. The demands of the Chicago employees are for 85 cents an hour on the surface lines and 87 cents an hour on the elevated, with an eight-hour day and time and a half for over- time, and they indignantly rejected an offer of 65 cents on the surface lines and 67 cents on the elevated with an eight-hour day. But disregarding for the moment the question as to whether the demands of the employees are justified by the prevalent working conditions and wages in Chicago, and we do not believe they are, the same tactics to in- crease wages could just as easily be used for enforcing a wage of $1 an hour with a six or five-hour day and a five-day week. Chicago can afford to pay its rail- way operators liberally but it cannot afford to have wages extorted under a threat. The policy which has been followed by the Chicago employees savors too much of a conspiracy against the life of the state. For its own protection the city must not permit these tactics to prevail. The Canadian arbitration law points one way out. Though not perfect it should help. Some legislation along those or similar lines ought to be put on our statute books. The Public Takes More Interest Now in Wage Increases THE controversy over wages and working conditions for trainmen in Chicago during the past few weeks has proved an excellent illustration of the public's changed attitude toward such disputes. When similar discussions were going on in the same city in 1915 the public's only expressed concern was whether the com- panies would go far enough in a wage offer to prevent a transportation tie-up. This time, owing to the many months of debate over the limitations of a 5-cent fare, the people knew that the companies could not meet even a small part of the demands of the platform men without additional revenue. The statements of the surface and elevated roads to this effect were apparently not dis- puted either by the car riders or by the employees. Everyone looked to the State utilities commission as the only possible savior of the situation. Unfortunately the employees have been stampeded by the radical element among them and, failing to listen to reason have tied up the whole local transportation system. It developed during the conference between the utili- ties, the unions and the commissioners that there were three important questions — namely, — what minimum the men would accept, what maximum the companies should pay, and above all what size burden the car riders should be required to carry. The original de- mands of the workers would have added about $19,000,- 000 to the payrolls, according to estimates by the man- agement of both roads, and this would have meant a 9-cent or 10-cent fare. No one apparently took these demands at their face value. The companies, in our opinion, took a proper attitude when they insisted that the wages recently established in Detroit, Cleveland and Boston should be considered a reasonable standard for the rates in Chicago. The War Labor Board in 1918 found the cost of living to be practically identical in these four cities, and if the platform men employed in three of those cities were pleased with a 60-cent maximum to meet increased costs it would appear quite unfair to insist on a higher rate for Chicago. As one of the local newspapers said editorially: "If the 85-cent demand is maintained, it will sound in the ears of Chicago much like the demand of the hold-up man who, with pointed revolver, cries 'Stand and deliver.' " The eight-hour day having been so much discussed during the past year it was to be expected that electric railway employees would endeavor to have this limita- tion written into new contracts. The Boston employees gained this point after a strike, but they secured it with restrictions that did not appeal to their Chicago brothers. The latter wanted a "straight" eight-hour day for 80 per cent of the runs, the remainder not to exceed a ten-hour "spread," whereas we understand the Boston agreement calls for no "straight" runs and the men are satisfied to get a premium only when the "spread" exceeds eleven hours. Now that the Chicago people have come to realize how closely their interests are bound with those of the traction companies and their employees, we are en- couraged to look for a settlement which will be fair to all alike. The Chicago ordinance is not a service-at-cost measure, strictly speaking, but in the present financial condition of both companies the effect is practically the same as it would be in Boston or Cleveland. The people know that any addition to the transportation payroll must come out of their pockets, and they are not likely to stand for a settlement between the two other parties which hits too hard. When the public realizes that it must foot the bill, it will want to be shown that the price is not too high. 208 Electric Railway Journal Vol. 54, No. 5 How Shall "Fair Value" Be Determined? JUDGING from the questions asked during the recent Washington hearing, the Federal Electric Railway Commission is very much interested in the cost-of-serv- ice plan of railway operation. Inasmuch as the initia- tion of such a plan calls first for the determination of the value of the investment upon which a return is to be allowed, the report of the American Electric Railway Association's committee on valuation, published else- where in this issue, is of especial interest at this time. The report, which treats of principles rather than of details, refers briefly to the original investment plan but speaks of the reproduction cost method of appraisal as being the most practical method, the one in almost uni- versal use and the one to be recommended. In connec- tion with its discussion of this method the report puts much stress on the matters of unit costs and overhead items which should be added to the inventory value of the physical property in order to secure that value which should be used for rate-making purposes. One of the points insisted upon by the committee, and we think properly, is that the unit prices taken as a basis for such a valuation should be those of to-day. It has been the custom in some appraisals, in the past, to use as unit costs, figures representing the average cost through a period of years. Where this practice has been followed it has been justified on the theory that the unit costs so arrived at would be a fairer index of general current and future values than costs that might obtain at the time the appraisal is actually being made. But if it is true that a distinctly different price level has been reached than existed five years ago, the use of average prices for five years back would defeat the very aim that their original use was supposed to as- sist in attaining. There are many other reasons which can be urg'^d for this course. One is that inventory costs arrived at in this way are more nearly in accord with the present prices of material and wages of labor, as well with those of other commodities and the purchasing power of a dollar. It may also be urged that discrimination v/ould result if the prices of to-day are not used. To illustrate this let it be assum.ed that a property built ten years ago is appraised at $1,000,000 and that for an exactly similar property just completed the costs, as shown by actual book records, is $2,000,000. If one of these properties is valued at former prices and the other at present prices we would have the anomaly of two exactly similar properties one charging for return on an investment only one-half that upon which the charges of the other are based. Again, in the matter of sale, what merchant would sell his stock or what farmer would sell his farm for half its value simply because the half price of to-day was the full price of ten years ago! The committee seems to feel that a utility has the same right as any other industry to enjoy the appreciation of its property or, rather, that it should not be singled out for being penalized because through the change in the standard of values that of money has depreciated. If we are to have an appraisal, it should be an appraisal, not history. The committee also properly emphasizes the point that while a property should be maintained in good operating condition it is both impractical and uneconomical to maintain it in 100 per cent physical condition since to do so would mean the scrapping of new equipment as soon as its use begins. Nevertheless, although a property has depreciated say 10 per cent its value, its efficiency as an operating property is just as high as it was the moment operation started and no capital has been amor- tized. Hence, the full investment in the property remains, and there should be no reduction for accrued deprecia- tion unless there is marked evidence of deferred main- tenance. Modern accounting recognizes depreciation as an operating expense and not as a capital charge. It follows from this that any reduction made in an ap- praisal for rate making purposes either for accrued de- preciation or for unamortized superseded property is in effect a confiscation of the investor's capital. This point is emphasized very strongly in the committee's report. We unite with the committee in the hope which it expresses in its report that its work will result in the evolution of a method of valuation which, based on sound economic principles, will be acceptable alike to investors and regulative commissions. The committee is to be highly commended for its earnest work. Outside Devices Can Speed Up One-Man Cars ONE of the valuable by-products of modem one-man car operation is that it enhances the value of any device that will aid these cars to equal, or better still, to exceed the safe schedule speed made by their larger predecessors. The railway manager realizes that the op- erator of such a car ought to be relieved of all manual effort and that this relief must go beyond or outside the car itself if the savings and increased service which it makes possible are to be fully utilized. Attention to this aspect of the problem was direct- ed by S. W. Greenland in his Central Electric Rail- way Association paper of June 30 on "One-Man Car Operation" with particular reference to the matter of signals and automatic track switches. When the cars are operated with two men, a management might hold off on the elimination of the hand-throw signal and the hand-throw switch because one man was always left in charge of the car. Furthermore, the loss of stand- ing time was less since the conductor got off and on the car before it had fully stopped and started as the case might be. With one-man operation, on the contrary, the absence of any official caretaker introduces a hazard slight though that may be; gives an opportunity for the unauthorized boarding of the car; increases the standing time because the operator can board and leave the car only while it is at a standstill, and, finally, subjects the passengers to gusts of rain or icy drafts according to the season of the year. The obvious way to avoid such unsatisfactory con- ditions is to install trolley contact signals and electric track switches of automatic type. These will do more than save time and relieve the operator — they will en- hance the safety of the passenger. That this will be the case is demonstrated by the experiences of com- panies which have already done what Mr. Greenland .suggests. One notable example is the Tampa Electric Company which has gone a step further in arranging to have a man turn trolley poles to save the time and energy of the car operators! A little by-product of automatic signals and track switches which deserves mention is the reduction of stops, for as already noted this wipes out non-revenue standing time. Stops cost money, annoy the riders and are hardly excusable if any means can be found for avoiding them. In this connection, the suggestion has been made that August 2, 1919 Electric Railway Journal 209 the crossing of unprotected steam railroad track could be accomplished with perfect safety by a semi-auto- matic device such as a flexible cord plugged in on a low- speed step of the control. In this way, the operator, although off of the car itself, could lead his vehicle across the track much as a cowherd would lead a cow. If this can be done with a telpher, why not with a car? There's always a way, where there's a will ! Don't Let the Power Plant Run Down THE supply of electric power is the life blood of the electric railway, and no amount of attention to time- tables, public relations, traffic development, etc., will avail if the line voltage is not "there" with ample power behind it. Low voltage is bad in every way; reducing schedule speed, and overloading motors, overhead, trans- mission line and generators. Moreover, the eflfect is cumulative because low voltage causes more current to be drawn by the cars and this in turn produces more drop, and so on ad infinitum. When low voltage is accompanied by uncertainty of supply, as it is apt to be, the case is still worse. Thus neglect of the power plant is a blow in the solar plexus of the railway organism. The power plant has been hard hit by the war, and railway managers have had to take more than pre-war interest in the power department during the past two or three years. Fuel shortage and expensiveness have complicated the power supply problem, and combined with this has been the reduction of boiler capacity due to poor quality of fuel. Lack of repair parts and of good labor to keep up the plants have also made difficult the work of the power engineer. It is remarkable that he has been able to keep power on the line to the extent that he has kept it. This note is not one of discouragement by any means. We realize that the power plant naturally suffers with other parts of the system when money and help are scarce and costs are high. But the power plant is out of sight, "behind the scenes" as it were, and as long as it can keep going is apt to be considered passable. Once badly run down, however, it is subject to collapse, with disastrous effects generally. As soon as incomes begin to expand, therefore, the power department ought to have some money to spend. Pull Together or Hang Separately IN THESE DAYS of stress and trial there is greater need of a prompt exchange of information on events of importance in the electric railway field than ever be- fore. If one company adopts a fare system or some op- erating practice which proves popular with the traveling public and results in a larger net return, or if it secures a favorable ruling from commission or court, or if new ideas or a new treatment of old ideas are developed that assist in a publicity campaign, all railway companies are vitally interested. A prominent electric railway manager, in commenting on this situation, recently said to us that this paper was now of more value to him even than when the in- dustry was prosperous, because of the more perplex- ing nature of the problems involved, their common char- acter, and the necessity for prompt application of such remedies as are available. He expressed a hope that the Journal would continue to give promptly the news of important events and the views of those who were attempting to solve the problems of the industry and that they, in turn, would regard the paper as a sort of clearing house in which constructive ideas on these matters could be brought to the attention of all. We take pleasure in accepting this assignment. It is not possible for the industry to hold a weekly conven- tion and exchange views and obtain suggestions from each other every seven days, but it is possible for the printed page to reach each company as often as that. It is out of the question by personal correspondence for every company to know the efforts made to improve con- ditions on different properties throught the country, but through contributed articles, this result can be reached more nearly than in any other way. We pledge ourselves toward even greater efforts than in the past to give the news which is of most vital interest to the industry in this critical period of its existence, and we urge those who have remedies to suggest to make frequent use of these columns. The Industry Is Convalescent — Now for a Speedy Recovery ALTHOUGH financially the electric railway situation l\. is critical, this is no reason why operating officials should lose enthusiasm in their work. In fact, they should increase their efforts to give the public proper service. Whatever may happen to the security holder the cars must run and there must be superintendents and managers to operate the properties. This means that these officials must keep up with the times. No improvement of an engineering nature has done so much to help the industry during the past five years as the safety car. Yet, considering the voluminous amount of data which has been published on the subject in the Eleciric Railway Journal and elsewhere in the past it is amazing to find how many operators of electric railways there are who apparently do not yet understand the first principles of this safety car. Every time a paper on this subject is presented at an associa- tion meeting, and practically every convention during the year has included such a paper on its program, it is a notable fact that the same questions are brought forth to be answered. This seems to indicate that some operators have not been as attentive to the progress in the art as they should. To speak plainly some oper- ators during the past year have been asleep at the switch. By this we do not mean that the safety car will work a miracle, but it is the best hope in an engineering way that the industry has. For the benefit of those who do not yet understand about the safety car, we shall say here that this car is applicable to the small and the large city alike; to the long and to the short run; to the residence and to the business district; to the lines with railroad crossings and to those without; in fact, to any location where faster and better service is desirable. As was well said by E. M. Walker at the recent Illinois meeting, "a car in sight all the time" is the slogan. There is no other single thing in the industry which will give such a healthy return on the investment. Some day the banker will inquire of the operator who has been slow to grasp the opportunity, why he was not advised of the economy of the safety car. Every operator is paid to know all there is to be knovra about such advances in the in- dustry, and if he should not put himself in a position where he cannot answer this question satisfactorily. 210 Electric Railway Journal Vol. 54, No. 5 The Zone Fare in Practice- London County Council — Part I In the Face of Large Handicaps the London Surface Lines Have Gone Ahead Enlarging Their Service and Usefulness— Car-in-Sight Operation Nearly All Day — Number of Lines Are Earning 40 Cents per Car-Mile By WALTER JACKSON HOUSES OF PARLIAMENT IN LONDON FEW large electric railway systems have been developed under greater difficulties than that of the London County Council Tramways. Shut out by physical limitations from the most profitable traffic throughfares of London's central district, hampered by the encirclement of tramways in other political sub- divisions, subjected to the competition of underground, bus and steam suburban lines and saddled with abnormal fixed charges because of much conduit construction — the system indeed faced discouraging handicaps. Yet the L. C. C. has gone ahead undismayed from year to year in enlarging the usefulness of its service. Now that the war is over plans have been drawn for further extensions, for the linking up of dead ends by means of motor buses, either temporarily or per- manently, and for deeper penetration into the business districts. While the actual enlargement of the present system would be only from 141.67 to 146.2 route-miles, the new sections would be of vital importance because they would greatly improve the value of existing facili- ties. For instance, three dead-ends would be closed up by building but 1 mile of route between Blackfriars Bridge, Farringdon Road and Gray's Inn Road, as shown on the accompanying map by initial key letters in the upper right-hand corner. Furthermore, the Theobald Road extension would avoid blocking the Kingsway sub- way cars, for although the map indicates an uninter- rupted line at this point, it is actually a stub. If it were extended but 4 mile, this part of the L. C. C. system w-ould be brought much closer to the Oxford Street shopping district. While parliamentary powers are now being sought for the foregoing changes and other alterations, authoriza- tion was obtained several years ago for two links on the southern part of the system. For one of these, Eltham Road between Lee Green and Well Hall Roads, material was in hand at the outbreak of the war. The other authorized extension is marked East Hill. What Service Does the L. C. C. Give? Corresponding to the geographical conditions, the L. C. C. lines are divided into two systems, one north and one south of the Thames. As already hinted, one of the present routing troubles is the large number of dead-ends. The only really worth while through con- nection is via Westminster Bridge to and along the Victoria Embankment and thence through the -|-mile Kingsway tunnel into the Holborn and Islington dis- tricts. The enormously productive commercial district centering at the Bank of England still remains to be served. The southern side of the Thames is less handi- capped for through running from east to west. Through running between the northern and southern systems is out of the question under existing conditions. Regardless of many physical limitations, the operating schedule speeds of the L. C. C. system are very satis- factory. They vary with the time of day as follows: Morning, 9.05 m.p.h., mid-day, 8.92 m.p.h. and evening 8.75 m.p.h. Some lines, of course, are faster than others for speeds (free-running) up to 16 m.p.h. are permitted in the more open districts. The usual Board of Trade regulations, such as 150-ft. spacing between August 2, 1919 Electric Railway Journal 211 following cars and a rate of 6 m.p.h. over curves and intersections, apply in the L. C. C. area. Stops are usually on the near side. They are spaced 660 ft. or eight to the mile. It is rather interesting that this distance should be considered short enough by an electric railway which has every incentive to meet the desires of the public owing to its use of the graduated fare and to the prevalence of bus competition. Yet this is the very spacing objected to as too great in a number of American cities! Furthermore, the L. C. C. stops do not include a large and embarrassing number of fire stops. The compulsory stops are those at important fare stage divisions, some schools and the safety stops, specified by the Board of Trade, at com- paratively few locations. The electric railway service in London covers a longer period of the day than does the service of the motor- bus companies. Several of the London County Council Tramways lines even go so far as to give an all-night service — an unusual feature in the United Kingdom. On the other hand, the buses do not appear until the early workmen traffic has been disposed of on the tram- ways at less-than-cost fares. A peculiarity of some of the L. C. C. lines is that no mid-day service is operated over them if passengers can be offered an alternative service between the same points. The reason is that the great bulk of the traffic on these lines consists of people riding to and from work with little or no opportunity for mid-day business. For example, during the middle of the day, ordinary passen- gers between Southcroft Road and Victoria Embank- ment may have to take a second car at Brixton or Kennington on which they pay a second fare instead of getting a transfer or through ticket. The operation of heavy-hour and special holiday rout- ings is not to be confused with short-line or turnback service. It is customary on the London County Council Tramways to run cars through from terminal to ter- minal because the density of traffic is much nearer uniformity than on systems which run far out into open country. The only demand for short-line cars comes from intermediate riders who want seats. Under the L. C. C. conditions short-line cars actually have been found to earn less than through cars. Single-car operation is the rule except for rush-hour service on certain Embankment routes and between Lon- don Bridge and Greenwich. Skeptics about zone fare collection may gasp upon learning that the standard double-deck car carries seventy-eight seated passengers, thirty-two below and forty-six above, while trailers seat forty-four and the few single-deck cars, thirty-two. In pre-war days no standing was permitted, but standees are now allowed on the lower deck to the extent of not more than one-third as many passengers as are seated on the same level. The platforms are wide enough for passengers to enter and leave at the same time. At heavy terminals the passengers are regulated to enter at the rear and leave at the front. Queues are not ROUTES OP LONDON COUNTY COUNCIL TRAMWAYS 212 Electric Railway Journal Vol. 54, No. 5 always practicable where several routes come in over the same track, for there is no assurance that the cars will arrive in scheduled order. Other points about car loading are the use of "Car Full" signs, which are not altogether successful because the motorman may keep up the sign long after seats are available; and the recent effort by means of newspaper advertisements to accustom lower-deck passengers to board on the left (bulkhead) side and upper-deck pas- sengers to board on the right (dasher) side of the dividing stanchion on the rear platform. Without questioning the exceptional value of the motor bus in the busy and tortuous streets of London, one experience of the London County Council Tramways illustrates how important is the feature of line capac- ity. This was in handling traffic to and from Woolwich Arsenal at a time when more than 100,000 people were employed there. Although hundreds of buses were gen- erally in use, their absence during the bus strike of Aug. 18-22, 1918, is declared to have been hardly felt owing to the far greater carrying capacity of the cars. A rather significant point about the general traffic prob- lem at Woolwich is that when the maximum number of people were employed it was easier to transport them than now, because by special arrangement the peak load was spread over three hours as compared to one to-day. Aside from this case, there are not many opportunities for staggering hours of opening and closing since the relative location of factories and workshops along the Since 1903 the great system , of the London County Council Tramways has been under the guidance of Aubrey Llewellyn Coventry Fell, the general manager. There was plenty of horse traction when he came and, still worse, no entrance for the tramways into any business or shopping section of the vastly important district along the north shore of the Thames. From the latter condition resulted the famous "Battle of the Bridges" with Mr. Fell as commander-in-chief of the L. C. C. forces. Finally, par- liamentary sanction to cross the Westminster and Black- friars Bridges was obtained, thereby removing one of the great handicaps to the usefulness of the London County Council system. Much still remains to be done to secure full value from the L. C. C. tramways, and Mr. Fell is still at the task as detailed in the article. Mr. Fell was born in Llangollen, North Wales, in 1869. He studied at Christ Church College, Finchley, and the School of Electrical Engineering, Hanover Square, London, and then he served an apprenticeship with Laing, Wharton & Down, electrical engineers, the predecessors of the British Thomson-Houston Company. He left the British Thomson- Hcuston Company in 1897, after acquiring much practical experience in the installation of railway, power and light- ing equipment, to become electrical engineer of the Sheffield Corporation Tramways. Three years later, having installed complete electrical equipment for the tramways, he became general manager. In 1903 he entered his present position. Under Mr. Fell's direction the electrification of the Lon- don County Council Tramways was completed; the London, Deptford & Greenwich, the London, Camberwell & Dulwich, the Woolwich & Southeast London, the North Metropolitan and the London Southern Tramway Companies were ac- quired, and the great power station at Greenwich and the central repair depot at Charlton were constructed. To- day the staff of the London County Council Tramways under the direction of Mr. Fell numbers about 11,000 per- sons. That he has retained his early interest in engineer- ing appears from the fact that he is a member of the leading societies in that field, such as the Institutes of Civil Engineers, Electrical Engineers and Mechanical Engineers. He is a past president of the Municipal Tramways Associ- ation and a member of the Council of the Tramways and Light Railways Association and other associations. different routes achieves much the same effect as an actual difference in opening and closing hours. In any event, the shorter workday rapidly coming apace has left the whole matter of staggered hours in a state of uncertainty. In spite of all the disadvantages enumerated earlier in the article, and particularly the competition of the motor bus, the average number of passengers per car- mile during the year ended April 1, 1918, was 13.18. This is a fair indication of what the zone fare does in promoting riding, despite the encroachment of the buses on the short rider and the rapid-transit lines on the long rider. Even after due allowance is made TABLE I— SERVICE OF LONDON COUNTY COUNCIL TRAMWAYS- SOUTHERN SYSTEM Headway Route in Character of District No. Route Miles Minutes Served 2 Merton to Savoy Street via Westminster 7.34 4-6 Industrial and good residential 4 Merton to Savoy Street via Blackfriars 7.77 4-6 Industrial and good residential 6 Tooting Broadway to South- wark Bridge (via Clapham) 6.56 6 Industrial and good residential 8 Merton to Victoria (via Clapham) 6.22 6 Industrial and good residential 10 Tooting Broadway to South- wark Bridge (via Streatham) 8 01 4-6 Industrial and good residential 12 Tooting Junction to Hop Exchange (via Vauxhall and Southwark Bridge Road) 9 .30 55-6 Largely industrial 14 Earlsfield Station to Hop Exchange (via Vauxhall and Westminster Bridge) . 8.36 5J-6 Largely industrial 16 Norbury to Savoy Street (via Westminster) 7 .39 5 Industrial and good residential Norbury to Savoy Street (via 18 Blackfriars) 7 82 5 Industrial and good residential 20 Southcroft Road, Mitcham Lane to Victoria (via Streatham" and Vauxhall Bridge) 6 .46 6-63 Industrial and good residential 22 Southcroft Road, Mitcham Lane to Savoy Street (via Kennington and West- minster Bridge) 7 .36 6 Industrial and good residential 26 East Hill to Hop Exchange (via Wandsworth Road and Blackfriars Bridge Road)...: 6.95 6 Mainly industrial 28 East Hill to Victoria (via Wandsworth Road and Vauxhall Bridge) 4.61 6 Mainly industrial 32 Lavender Hill to Chelsea Bridge (via Queen's Road, Battersea) 1.23 25-6 Mainly industrial 34 King's Road. Chelsea, to "i'lough," Clapham (via Cedars Road) 3.36 5 Industrial and good residential 36 Woolwich and Plumstead to New Bridge Street (via Old Kent Road) 12.23 4-6 Industrial and munition 38 Abbey Wood to Savoy Street (via Old Kent Road and Westminster Bridge) 12.79 4-6 Industrial and munition 40 Abbey Wood to Savoy Street (via Kennington) 13.55 4-6 Industrial and munition 44 Beresford Square, Woolwich to Eltham 3.03 2^-35 Industrial and munition 46 Lee Green to Southwark Bridge (via Old Kent Road) 6.29 6 Industrial and good residential 50 Forest Hill to Blackwall Tunnel (via South Street). 5.96 5-7 Mainly industrial 52 Catford to Southwark Bridge (via New Cross and Old Kent Road) 6.51 8 Mainly industrial 54 Bromley and South End Village to Victoria (via Catford and New Cross) . . 9.39 3-4 Industrial and good residential 56 Peckham Rye to Savoy Street (via Denmark Hill and Westminster Bridge) 5.89 5-6 Industrial and good residential 58 Catford to Victoria (via Forest Hill and Camber- well Green) 7.80 5 Industrial and good residential 60 Dulwich Library to South- wark Bridge 4 .84 8 Industrial and good residential 62 Dulwich Library to Savoy Street 6 .90 8 Industrial and good residential 66 Forest Hill to New Bridge Street 8.41 5 Industrial and good residential 68 Tower Bridge to Waterloo Station 2.03 4j-5 Industrial 70 Greenwich Church to Toolev Street 4.19 3-4 Industrial 74 Brixton Road to Sputhwark Bridge 3.90 5 Mainly industrial 78 Norwood to Victoria 5.39 5-6 Good residential 80 Norwood to New Bridge Street 5.99 6 Industrial and good residential 82 Harlesden (Harrow Road) to Tooting Junction 9.52 3 Industrial and munition 84 New Cross to Savoy Street . . 4 .16 5 Industrial and good residential August 2, 1919 Electric Railway Journal 213 for the shorter mileage per pasenger in contrast with the larger American cities, it is still apparent that the cars are loaded to better advantage than in the United States. Perhaps the accompanying traffic characteristics graph, which is based upon the number of cars run during the different hours of the day, will help to sub- stantiate the foregoing assertion. This graph shows little of the frightful variations found in American cities. Maximum car service, including trailers, is given for five to six hours of the day, and the mid-day service does not show a severe drop, although luncheon travel in the world's biggest city is not so great a factor as in other British communities. With frequent service nearly all day long, the short rider is attracted. Fur- thermore, there is a lessened tendency for women shop- pers and others to start and return during the periods of maximum traffic as they so often do in the United States. Table I and Table II, show the headways, length of lines and character of travel. Even without recourse to the map, it is obvious that the services are arranged to catch the short rider. The greater part of many lines is served by two or more routes, thus giving "car-in-sight" operation for nearly all of the day. It should be noted that the above-stated service in- tervals include cars run by other undertakings. But, as TABLE II — SERVICE LONDON COUNTY COUNCIL TRAMWAYS NORTHERN SYSTEM Headway Route in Character of District No. Route Miles Minutes Served 3 Hampstead to Holborn 3.81 6-8 Good residential 5 Hampstead to Moorgate. .. . 4.97 4-5 Industrial and good residential 7 Parliament Hill Fields to Holborn 3.61 5-8 Good residential 9 Tally-Ho Corner, North Finchley, to Moorgate 11.51 8 Industrial and good residential II Highgate Village to Moorgate 4.83 4 Industrial and good residential 13 Highgate, Archway Road to Aldersgate 3.84 5-6 Industrial 17 Highgate, Archway Road to I^^arringdon Street Station 3.95 5-6 Industrial 19 North Finchley, Tally-Ho to Euston Road 10.19 8-85 Industrial and good residential 21 Wood Green to Holborn. .. . 6.20 6 Industrial and good residential 27 Seven Sisters Corner to Euston Road 5.37 8 Industrial and good residential 29 Enfield to Euston Road 10.63 8 Industrial and munition 31 Palmers Green to Euston Road 7.46 8 Industrial and good residential 35 Highbury Station to Scotland Yard 3 58 2^-3 Mainly industrial 37 Manor House to Aldersgate. 4 14 6 Industrial and good residential 41 Manor House to Moorgate.. 3.91 4-5 Industrial and good residential 43 Stamford Hill to Holborn (via Kingsland Road) 4.91 3-6 Industrial and good residential 45 Stamford Hill to Moorgate (via Kingsland Road) ... . 4.01 6 Industrial and good residential 47 Stamford Hill to London Docks 4 .49 5-6 Industrial and good residential 49 Stamford Hill to Liverpool Street Station 3 .77 5-6 Industrial and good residential 51 Manor House to Bloomsbury 4 49 8 Industrial and good residential 53 Thapham Common to Aid- gate 5.38 3 Mainly industrial 55 Leyton "Bakers Arms" to Bloomsbury 8 .87 6 Mainly industrial 57 Leyton "Bakers Arms" to Liverpool Street Station. . 7.42 5-6 Mainly industrial 59 Edmonton Town Hall to Holborn 8.42 6 Industrial and munition 61 Leyton "Bakers Arms" to Aldgate 7.77 3-4 Industrial 63 Ilford Broadway to Aldgate 6 .94 3-4 industrial 65 Green Street, Barking Road to Bloomsbury 7.83 3-4 Industrial 67 Barking Broadway to Aid- gate 7.22 3-4 Industrial 69 East Finchley Station to Euston Road 5 .08 8 Good residential and industrial 75 Stamford Hill to Holborn (via Essex Road) 4.81 6 Industrial 77 Hackney Station to Aiders- gate 3.59 6 Industrial 79 Waltham Cross to Smithfield Market 13.23 6 Industrial and munition 81 Leyton "Bakers Arms" to Bloomsbury (via Essex Road) 8 .68 4-5 Mainly industrial 83 S;amford Hill to Moorgate (via Southgate Road) 4.35 6 Industrial and good residentiftl is the case with the routes of both the northern and the southern parts of the system, the headways shown do not do justice to the actual service owing to the extent of overlapping. Recent analyses of the L. C. C. lines show that a number of them are now carrying seventeen passengers and earning 20d. (40 cents) per car-mile. The Transportation Staff The services of the London County Council Tram- ways are handled by a staff which includes thirteen dis- trict superintendents, eighteen district inspectors, 153 ticket inspectors, three assistant ticket inspectors, four motormen's instructors, two motor demonstrators, 136 traffic regulators, thirty acting traffic regulators (at motormen's wages), eighty-two assistant traffic regu- lators, fifteen night inspectors, eighty-four assistant night inspectors (who also act as depot cashiers), nine women depot inspectors, 2560 motormen, 1677 male con- A. M. p. M. n \ ? 5 4 5 fc 7 8 9 10 II 1? 1 7 .-5 4 5 6 7 ^ 9 10 II to to 1o 1o 1o to to to to to to to to to to to to to to to to to to to I ? 3 4 5 6 7 8 9 10 11 17 1 ? 3 4 5 £ 7 8 9 10 II 17 -1 lotc r a id / \ ■al. en. 'at. hr 1 1 \ 1 ii \\ -« -ff 1/ 11 1 jj '-M -a irs 1.500: 1.400 LMO 1.700 MOO 1.000 900 800 700 600 500 400 300 700 100 0 TRAFFIC CHARACTERISTICS GRAPH BASED ON L,. C. CARS IN SERVICE THROUGHOUT THE DAY ductors and 1429 female conductors for a total of 1244 motor cars and 114 trail cars in actual operation. The following are the rates of pay formerly applying to a fifty-four-hour week, but now under the agreement of March 20, 1919, to a week of forty-eight hours, including signing-on and signing-off time: District superintendents 60 to 90s. weekly District inspectors 52s. 6d. weekly Ticket inspectors 42 to 45s. weekly Ticket inspectors 42 to 45s. weekly Traffic regulators 42 to 45s. weekly Assistant traffic regulators 30s. weekly Night inspectors in charge 45 to 50s. weekly according to number of cars in service Assistant night inspectors 40 to 45s. weekly Depot inspectors 40 to 45s. weekly All of the foregoing grades are paid a war bonus of 30s. weekly. Motormen and conductors 5s., 5/3d., 5/9d. and 6/6d. a day during successive six-months periods War bonus to motormen and male conductors. 5s. a day War bonus to female condutors 20s. weekly on entering service; 3/7d. a day after three months service; 3/1 Hd. a day after nine month's service, and 5s. a day after twelve months' service The men classified in the foregoing table as inspectors and traffic regulators are worked in duties of nine hours as follows: Early turn, 6 a.m. to 11 a.m., and 2 p.m. to 6 p.m.; late turn, 11 a.m. to 2 p.m., and 6 p.m. to 12 midnight. The night inspectors have both transporta- tion and fiduciary duties. They keep the time of motor- men and conductors, give out conductors' ticket boxes, enter items for the payroll, keep records of lost car mileage and of wheel mileage, make weekly returns of late and sick men, and prepare monthly returns of the 214 Electric Railway Journal Vol. 54, No. 5 n' Z'tC f / /2 // a, f. Jf. Z n z J 2 .i /'^ // r /■ f f, z },/ 1 J/J.. -/ lO /f. „^e ,/' Jti f .A!- . ( ^ J /< t V M n zc // / V Ji/ 'f: St. / ,»! /' Vi-'Kfifi, 04. $T 377' 2''^ '^f Eeg. No. J- '<5 Time ^^^^ ^ Eouts N«..." /- 75 6 .> >■ i i-3 II 10 tJi) Lis Hi Id IL lOt-l II ini -'-'Hi LI ^3 -113 1 >L G 11 6 » I id- i'AL ipJZ iij>:u lyau r it AM, 6 HI .'4 ids *i7 fit, 10.11 Boute No.. BY ORDER. TIME-POINT CARD USED ON L. C. C. CAR (The dividing: line marlis the end of the period during whicli workmen's fare may be accepted.) The actual working time and average spreadover of motormen and conductors on motor cars are as follows : Average Spreadover Average Actual Worlc (Hours and Minutes) (Hours and Minutes) Weekdays 11:51 Saturdays 11:23 Sundays 7:43 Average per day for one week 11:23 (For conductors of trailers only) Weekdays 13:6 Saturdays 9:36 Average per day for one week 12:31 6:38 7:27 8:19 6:47 From the foregoing it will be seen that the fifty-four- hour week was the basis, but in practice the number of hours worked was actually less. Under the new agree- ment, forty-eight hours' pay (at the old fifty-four-hour rate) is guaranteed to men reporting six days a week, but they must be willing to do non-platform work if requested. Arrangements are included for six days' an- nual vacation with pay. Employees who do not get at least twenty-four hours' notice that they will be re- quired on their rest day are entitled to the differing overtime rates for service on such occasions. Duty sheets, or assignments of runs, are posted at the several carhouses in the form reproduced. The duties are rotated from week to week in the order of posting so that the men can see what their runs will be for weeks ahead. Relief men always step directly into the duties of the men they replace. A time-point card is also placed in each car every day by its first motorman. Besides showing the work of the car for the day, the card makes a division between the time-points within and following the time v/hen fares at the workmen's rate may be accepted at a given point. In the case of the car card reproduced this time is 7.39 a.m. Power-Saving Campaign Already Shows Promising Results The London County Council Tramways cars are not equipped with car-checking instruments. Nevertheless, an endeavor was made to interest the men in more economical operation by dividing among all platform em- ployees (in proportion to the actual number of days worked by each employee during the quarter ended Dec. 31, 1918) one-half of any saving in coal. Six motor inspectors were put on to assist the motormen August 2, 1919 Electric Railway Journal 215 to raise their efficiency in controller handling, and tho management put out various publications, including the accompanying amusing poster entitled: "Coasting- Getting there without wasting energy." The saving over the preceding quarter was 3 per cent, equivalent to about $10,000, of which one-half went to the platform employees in accordance with the plan. In all 351,392 days were worked during the quarter, making the amount paid 1.47 cents a day. The results were set before the employees as follows: COAL saving bonus TO DRIVERS and condttctors Car-miles run between Sept. 26 and Dec. 25, 1918 , .,. 11,831,457 Based on 1917-1918 figure of 2.27 direct current units (kw.-hr.) per car-mile, the consumption of units would have been 26,857,407 The actual units consumed from Sept. 26 to Dec. 25, 1918, were : 26,026,065 Showing a saving in units (kilowatt-hours) of 831,342 The average price paid for fuel was 37s. I Od. per ton, and the cost of fuel per direct current unit was equal to , . . . 0 . 622(1. The total saving, therefore, was 83 1 ,342 units at 0 , 622d. or a total of £2, 154 I Is. 3d. Half this sum will be distributed in accordance with the scheme approved by the Council on June 25, 1918. This will amount to £1.077 53. 7d. This notice was issued Jan. 20, 1919, and the awards were paid during the same week. The notice pointed out that a much greater saving than 3 per cent and con- sequently a greater bonus could be obtained by further perseverance and care. Part II of this article, describing why and how fares were increased and what the results were, will be published in the next issue. fueLtConservation poster used in l. c. c. power- saving CAMPAIGN Railways and Tramways in Holland Conditions During War and Future Trade Oppor- tunities Described by a Dutch Electric Railway Manager H. F. Adams, recently general manager of the Haar- lem Electric Railway in Holland, is now in this country, as mentioned in a personal note in the issue of July 5. When interviewed by a representative of this paper, he had an interesting story to tell of the difficulties of maintaining electric railway service during the war in a country which was neutral but very close both to the scene of hostilities and to Germany. Many of the effects of the war on tramway operation experienced in this country were duplicated in Holland but on a much larger scale. One reason for this is that Holland in the past has manufactured little or no electric rail- way equipment and so has had to depend for its sup- ply on imports. Thus, most of the railway motors in the past have come from Germany. Some electric railway equipment has been imported from England and the United States. Mr. Adams' own company, which has a high-speed line connecting Haarlem, Amsterdam and Zandoort, was originally controlled in America, being owned by the Netherlands Tramway Corporation of New York. Later it passed under Dutch control. After the war was declared the company appealed to the British firms for electrical equipment, but the reluctance of the Ministry of Munitions and of the War Trade Department to issue the necessary priority certificates and export li- censes made it almost impossible for the company to get anything. Not until the armistice was signed were the British firms able to take the matter up, and even then could accept only small orders for motors and none for rails and rolling stock. Mr. Adams then took the matter up formally with the President of the Board of Trade last December, point- ing out that in spite of the unsettled internal political conditions the German manufacturers of electrical and other apparatus had begun an aggressive sales campaign and were endeavoring to recapture the market in Hol- land and other small neutral countries. In this they were assisted by the government, which had adopted a scale of priorities just the reverse of that ruling in Great Britain ; that is to say, exports to neutral coun- tries were placed by Germany at the top instead of at the bottom of the list. Fares Increased During War As to operating conditions during the war, Mr. Adams says that fares were raised from 80 to 100 per cent. It was fairly easy to do this because most of the tram- way lines in the country are owned by the municipali- ties. In fact, the only cities in which this is not the case are Rotterdam, Haarlem and The Hague. The municipal lines having put up their fares, the private lines were able to increase their fares also. There is a strong tendency in Holland at present, according to Mr. Adams toward municipal operation everywhere, as soon as the franchises have expired. Mr. Adams believes that Holland and its colonies afford an excellent market for American goods, pro- vided that Americans make an effort to cultivate it. According to him, the Germans in the past have always understood how to make their propositions as attractive as possible in meeting the special demands of their 216 Electric Railway Journal Vol. 54, No. 5 clients, whereas the British and American manufactur- ers stick to their standard types in every branch of ma- chinery they manufacture. This is the chief reason for the success of the German manufacturer in the past. As regards the demand for electric railway apparatus, Mr. Adams considers there will be some electrification of steam railroads in Holland as well as elsewhere in Europe as soon as prices are reduced to, say 30 per cent above pre-war prices. He believes, however, that the electrification of steam railroads in some of the Dutch colonies, especially in the highly cultivated island of Java, is more likely to come first, as in many places plenty of water power is there available. The colonial government authorities have been studying the pos- sibility of such electrification for a long time, and at present seem to be in favor of carrying out their plans in the near future. Mr. Adams is not planning to return to Holland but will engage in business here. Getting the Right Kind of Publicity* The Newspaper Is the Medium Which Is Most In- fluential and Which Will Cooperate With the Utility in Getting Real News to the Public By Bernard J. Mullaney Director Illinois Committee on Public Utility Information. Chicago, III. IN THE larger aspect of their respective lines of busi- ness all utiUty men and the interests they represent and the properties they manage are in the same boat. All are, or have been, subject to public ownership agita- tion of which not so much needs to be said now, thanks to the experience with government management of rails and wires and to the publicity given the results. But all the utilities are still subject to regulations as to rates and service. All have to live on the rates they are permitted to charge for their service. All have to borrow money for extensions of plant and for new undertakings. Therefore, it is to the interest of every- body in the utilities industry that the essential, funda- mental facts of controlling influence should be under- stood by the public. The one sure way of getting into the good graces of the public is summed up in the word "Publicity." This word I dislike greatly because of its misuse, but no other that fits has yet been coined. Opportunities for publicity are all around us, but the best of all is the newspaper. That "everybody reads the newspapers" is almost literally true, hence the news- paper is the main channel to successful, result-getting publicity. Other agencies can be made to feed and supplement it; they cannot take its place. How to get newspaper publicity is the crux of the problem. If one could offer a guaranteed, sure-fire method of obtaining desired results he could collect fees that would make Rockefeller jealous of his income. But one can point out some things to be done and some things not to be done. As for results they mu.st be waited for as the farmer waits for his crop. In summoning "publicity's artful aid," let it be artful, if you please, in the sense of being skillful and ingeni- ous, but not artful in the sense of "tricky, crafty, cun- ning or artificial." The first requisite of publicity effort that is to be more than temporary is that it shall "come clean;" it must be honest, open and above board; it •Abstract of paper read before Illinois Electric Railways As- sociation in convention at Rockford. 111.. July 16, 1919. must be presented without false pretenses, without spe- cious argument and without special pleading. If elec- tric railways or other utilities haven't a case good enough to stand on its merits, publicity should be shun- ned as a pestilence. As for publicity matter, the only good publicity mattei is that which is printed. Publicity matter that the util- ity men think is exactly the kind of stuff that ought to be printed, is usually the worst kind ; it is almost sure to be so one-sided. Publicity matter should be prepared with an eye to what will be printed and believed. Rela- tively slow and perhaps unconscious absorption of facts, which tend to produce a favorable opinion, is more to be desired than quick conversion, for the favorable opinion thus built up win last longer. Publicity effort for the electric railways should start in the home-town newspaper, by using the advertising columns to boost business. The manager may be a superman in the business; he may give his customers the best possible service at the lowest possible price, but the service will never be appreciated unless the cus- tomers are told about it. It is human nature to take things for granted; to regard the thing close at hand as commonplace unless its uncommon character is pointed out. The newspaper publisher is, of course, a customer of the railway; he has to be. If the railway is not a custo- mer of his it ought to be. The service should be ad- vertised. Being a customer of the home-town newspaper publisher is a long step towards becoming a friend of that publisher. But using advertising space will not buy the publisher's unqualified support. He gives full value received in the advertising space he sells, if proper use is made of it. Railway Utility Should be a Source of Nev^^s Another step is to make news for the home paper. When the company or one of its officials is starting something the home paper should be told about it. If the business is honestly conducted, as, of course, it is, no risk is run in talking about it. The railway men should be part of* the community life of the town ; of the chamber of commerce or other business men's association, both in it and of it. Interest should be taken in the affairs of other men. Common cause should be made with other utility men in the town for the good of the utility industry as a whole. It is up to the utility men, by pulling together, to make other men understand the essential and important place which the utility industry occupies in the financial and industrial enterprises of the country. Utility men can bring the fundamentals of the industry to the attention of all other business men through the clubs and the chambers of commerce in a way that cannot be ignored. At the same time more news will be made for the news- paper publisher. The facts of the situation will become more and more familiar, day by day, to the newspaper- reading public. To summarize: This and every other branch of the public utility industry needs sound public opinion on its side to make its business safe. The only way to get that public opinion is by publicity. Getting that pub- licity lies primarily with the home town paper of each of you. Let each man cultivate that field honestly and intelligently and the entire country will be covered. Then the "public utility question" will disappear from controversy and the business will be as sound and as solid and as immune to attack as the public schools. August 2, 1919 Electric Railway Journal 217 Mechanical Aids in Handling Fares Detroit United Railway Uses Labor-Saving Devices Which Permit Sorting and Counting of Day's Receipts With 25 Per Cent of Force Required for Hand Operation THE daily manual labor of handling fares on large city lines is obviously an item of considerable im- portance. Any equipment eliminating one or more handlings of the money or perm.itting it to be handled with greater speed, ease and accuracy is valu- able in that the railway is thereby able to handle the day's receipts with a greatly reduced force. Such a saving is especially important in this day of restricted income, and the success of the Detroit lines in effecting it should be helpful to other companies. The Detroit United Railway has 1000 cars equipped with Cleveland fare boxes. These represent approxi- mately 85 per cent of the city service, and they operate on twenty lines out of twelve car houses, divided six on the East Side of the city and six on the West Side. The fare box is made with a cash box or, as referred to hereafter, a vault which when withdrawn from the fare box automatically becomes locked. Thus the money or tickets deposited by the passenger drop directly to the vault when released from the inspection plate by the conductor and never pass through the conductor's hands. Vaults Are Changed by Special Receiver at Car Houses The vaults, which are interchangeable, are "pulled" from the cars by a special box receiver at the car house at the end of the day's run, or at any time when a car has to be laid off for repair. In cases where the ladder track passes the office door of the car house, the vaults are changed directly from the office. Here they are stored in specially constructed truck-conveyor racks holding sixty vaults under lock and key. In some cases a small building has been erected beside the ladder track, and the vaults are stored here until the truck conveyor is loaded. This is then locked up and wheeled to the office. INSPECTION table AND SMALL PRELIMINARY SORTING, COUNTING AND WRAPPING COINS AT THE SORTING MACHINES RATE OF 200,000 AN HOUR COUNTING 60,000 TRANSFERS AN HOUR IN DETROIT SORTING AND WEIGHING TICKETS AND COUNTING BY TICKOMETER 218 Electric Railway Journal Vol 54, No. 5 At one yard, where lines of heavy traffic terminate and where the cars returning for the night enter the yard at the end opposite the office, a single-truck car has been especially rebuilt to accommodate the truck conveyors. This car, manned by a box receiver and a recorder, is stationed on a short spur beside the ladder track. During the period immediately following the rush hours in the evening, vaults are removed on an average of every thirty seconds. About nine o'clock in the evening the car makes a trip to the car house office and exchanges its load of full vaults for empty ones. A record form such as is shown in the accompanying illustration is used by the recorder. Down the center of the page appear the car numbers. As a car or train approaches, the recorder locates the number on the sheet and on the "in" side writes the number of the vault which the receiver says is ready for installa- tion. On the "out" side the recorder inserts the number of the vault withdrawn from the car. Space is reserved DETROIT UNITED RAILWAY DAILY REPORT OF FARE BOXES, JEFFERSON LINE BY „., AT ■ C M DATE BRT. FWD. IN IN IN IN CAR OCT CUT OUT (il'T 1106 1117 1375 1376 I 1 ■ 1459 1461 1463 1464 1465 FORM FOR RECORDING VAULTS DRAWN FROM AND INSTALLED IN FARE BOXES for four changes of vaults per day, although one change is customary and more than two are exceptional. At the beginning of the day's work the recorder notes at the extreme left of the form the number of the vault last installed. If that should not be the number of the vault next withdrawn, it would immediately become apparent that either an error in recording had been made or the fare box had been tampered with. There are approximately 1300 to 1400 vaults to "pull" each day. Two collection crews of three men each are employed to collect the money from the twelve car houses. Collection is done at night, the crews starting out from the downtown office at midnight with street cars rebuilt for this purpose. They carry keys to unlock the fare- box vaults (each line using a different lock), but during the day these keys are kept under a combination lock in the accounting department. Each crew carries a sufficient number of steel money boxes, 14 in. square by 15 in. deep, for the receipts from each line to be kept separate. They also carry numbered pad locks with which to secure these boxes, the keys for these being retained by the accounting department. One of the crew remains at all times with the car as watchman, while the other two open the vaults in the presence of the station master and empty the con- tents into the money boxes. An identification slip is dropped into the box, giving the name of the line and the date, and the box is then locked with one of the padlocks mentioned above. Every vault has to be emptied and the contents locked up in the presence of all three men. If one should be called away for any reason, the work must stop. When the work is finished, each man must sign a statement that the work was done in his presence. The collection crews make the rounds of the twelve car houses in from six and one-half to seven hours. The money boxes turned over to the accounting department contain nickels, dimes, pennies, quarters, half dollars, Canadian pennies, Canadian nickels, about fifteen different classes of tickets, and even a few counterfeit coins. The first step is to separate the coins from the tickets, to accomplish which by hand would require the services of ten girls. For this work a special separator has been designed and built by the company under the direction of Sylvester Potter, master mechanic. The money box containing the day's receipts from one line is placed on the hand-operated elevator, as shown on the nqxt page. This machine operates by a double gear with a brake release for lowering the platform and has a capacity of 800 lb. The platform is raised to the top of the separator, a handle is attached to the box and it is swung over the hopper by a trolley chain tackle. The contents of the box pass from the hopper onto a horizontal screen with holes of sufficient size to pass a quarter or any coin of smaller size. One end of this screen, operated by belt from a 5-hp. motor, maintains a vertical shaking motion which causes the coins to drop through the screen and keeps the tickets loose and in motion. The tickets are caught by a draft coming up through the screen from a fan located at the shaking end and are blown through a chute into a wire basket. The fan has a horizontal shaft, 20 in. long, and is equipped with four horizontal blades arranged on a 15-in. diameter. It is driven by the same 5-hp. motor. The coins drop into a chute from, which they pass into a box 20 in. x 22 in. x 18 in. deep. It will be noticed that this box is equipped with wheels for convenient: handling. All Coins Are Sorted, Counted and Wrapped Mechanically The coin container with its identification tag is wheeled into the separating and counting room, and here the money is first placed in the hopper of a Sattley sorting machine, of which there are two in use. From the hopper the coins pass onto a series of five screen plates tilted at a slight angle from the horizontal and maintaining a horizontal shaking motion. The ton plate retains only coins larger than a quarter, the second retains quarters and Canadian pennies, the third nickels, the fourth pennies and the last dimes. Canadian dimes pass through the last plate onto a stationary plate. Owing to the shaking motion and the angle at which the plates are maintained, the coins on the various plates work toward the front of the machine and pass through chutes into separate boxes. The main purpose of these two sorting machines is to eliminate all coins of larger denomination than a dime and larger size than a nickel. Such coins are put into separate boxes for counting at the end of the run in the total for the respective lines. The dimes, August 2, 1919 Electric Railway Journal 219 AT RIGHT, SEPARATOR FOR TICKETS AND COINS, AND ELEVATOR FOR HANDLING MONEY BOXES BELOW, DEVICES FOR rULVERIZING TICKETS AND TRANSFERS INTO SALABLE PULP nickels and pennies are emptied together on a sorting- table, where three girls sort them over rapidly and pick out any counterfeit or multilated coins or foreign pieces. The good coins drop through a series of holes at one end of the table into the rolling coin boxes. The coins are now placed in the hopper of a large Sattley sorting and counting machine. Each of the five machines in use has a capacity for handling 40,000 coins an hour. They separate the coins as did the first machines, but in this case there is individual passage from the hopper to the three top plates, all of which retain the nickel. As before, the fourth plate retains pennies and the fifth dimes. From the shaker the coins drop into a vertical tube, at the bottom of which is a paper tube coin wrapper open only at the top. These wrappers are automatically fed into position from racks at the back of the machine to a revolvin ■ disk which has provision for four wrappers. Each coin that drops into the wrapper is registered on a meter and when a wrapper has re- ceived forty nick- els, fifty dimes or fifty pennies, as the case may be, the disk revolves a quarter of a turn, an empty wrapper takes the place of the full one, the full one is automatically crimped on the open end and a new wrapper drops into posi- tion. With the next quarter revo- lution the crimped wrapper drops in- to a box below and the same pro- cess is repeated. The counting meter is similar to the meter on an automobile in that the coins for the run of one line are registered on what would correspond to the tri^ dial on an automobile, and the total nu Tiber of coi»"s handled by the machine for the day is registered on a separate dial. Each girl operating these machines fills out a form recording the number of coins of each denomination counted for each line. At the end of the day she totals this report, indicating the money value of each denom ination counted for the day and the total cash counted. This cash report goes to the cashier's department. Coins Are Sacked and Some Weighed as Double Check The boxes of wrapped coins are taken from the counting and wrapping machines to the sacking table, where the rolls are placed vertically in boxes of the proper size to hold fifty rolls of dimes, nickels or pen- nies. These boxes are emptied into canvas sacks which are tied up, tagged and sealed. A white tag is placed on a sack of dimes, a white tag of different shape on the nickels, a blue tag on the pennies and a red tag on the odd money at the end of the day. In any case the sacker places her initials upon the tag to signify that the amount is correct, as it would be obvious to her if a roll was missing, if a roll of the wrong coins was included or if any of the rolls were not properly filled. The number of nickels is greatly in the majority^ and as a double check on the sacks of nickels these are weighed. The weighing is done by the man who lifts the coin boxes around and does other heavy work, and should the weight be incorrect the seal is broken and the contents examined or if necessary counted. Otherwise the tag is stamped with date and again initialed as O. K. ., These sacks are placed in a large rolling box whic'i holds approximately eighty-four sacks of nickels. When the box is full of sacks containing coins of various denominations, the cover is locked in place and the box is taken by elevator to the cashier's department. The only sack opened by this department is the one labeled with a red tag, indicating that it contains the odd money ending the day's run. Some of the sacks are sent to the car houses for change and others are sold to the banks, who without opening them, resell them to customers. The tickets were last left in the wire basket at the separating machine. Those for each line are then emptied into an individual box. There are fifteen different classes of tickets, each made distinctive by a different color or a special marking. The boxes are emptied one at a time on a sorting table, where several girls separate the tickets into the various classes. The coin-counting machine operators generally complete their run about the middle of the afternoon, and for 220 Electric Railway Journal Vol. 54, No. 5 the remainder of the day they assist in the ticket sorting. Some classes of tickets, such as the workingmen's ticket, the reduced rate tickets, etc., are used more extensively than others. Ten of the fifteen different classes fall in this group, and each of these classes for each line is weighed on a sensitive scale. The weight in pounds and ounces gives a very accurate record of the number of tickets, and this is recorded. The other five classes are each wrapped separately for each line and are counted on the tickometer shown in the accom- panying illustration. There are two of these machines in use. The tickets are placed in the feeder of the magazine and by the turning of a crank are conveyed by small rubber wheels from the feeder to the rim of the re- volving disk top of the machine. Each ticket is counted on a meter and on the disk is held in a clip. The rin. has a capacity for 200 tickets. When it is filled or when all tickets for one class on one line have been counted, the tickets are dropped into a container below by pressing down a lever with the left hand. This lever operates a brass strip above the tickets which pulls them from the clips. An efticient operator can count approximately 15,000 tickets an hour with this machine. All tickets, after being either counted or weighed, are placed in a steel case and the cover is locked in position. A machine of a similar principle to the tickometer is used to count the transfers, which come to the department with the conductors' trip sheets. This machine is, however, operated by electricity and will count 60,000 transfers an hour. The transfers are placed in the feeding device with one hand, and a lever operated with the other sets the rubber wheels in motion. The machine has a recording dial for both the individual run and for the day's total operation. The op- eration of a small lever between successive runs sets the run meter back to zero. The transfers pass into a large box below the table. Each night the tickets, cancelled transfers and un- used transfer pads are emptied into a chute and pass dov^Ti five floors to the basement and into the hopper of a swing hammer pulverizer. Here the material is beaten into pulp. This machine is driven by a 25-hp. motor. The pulp is drawn from the pulverizer through an 8-in. pipe by suction created by a fan driven by a 5-hp. motor and passes into a large sack. It will be noted from the illustration that the lower part of the sack is canvas to prevent the pulp from being blown through the sack, while the upper part is gunny sack to permit the escape of air. The average amount of pulp resulting from a day's run of tickets and transfers is from 1200 to 1600 lb., and it is sold for an amount which more than pays for the disposal of the waste material. War-Time Progress in Maintenance of Way Better Track Will Result If Less Money Is Spent On Construction and More on Maintenance — Paving Burden Should Be Assumed by Public Authorities By JOHN B. TINNON Engineer Maintenance of Way Chicago & Joliet Electric Railway THE principal trouble confronting the maintenance- of-way engineers on electric railways for the last year or so has been how to maintain roadbeds without money. In the past the maintenance-of-way department has only in isolated cases had sufficient money allotted to it properly to maintain the property. Whereas our electric railways have in most cases been constructed in accordance with the highest standards, our standard of maintenance has always been low. On account of the pressure of increased prices and inade- quate receipts during the war period, even this standard has not been adhered to, and on most properties the maintenance-of-way department has been forced to devise all kinds of contrivances to make worn-out tracks serviceable for operation long after their life had gone. Incidentally, this has developed some very excellent devices and has been a very good education for the maintenance-of-way engineers. On most electric railways, even to a great extent on the largest properties, maintenance work and con- struction work have been carried on by practically the same supervising forces. It is only natural, therefore, that the larger amount of the engineering department's time has been devoted to construction and reconstruction work rather than maintenance. Only during the last •Abstract of paper presented at summer meeting of Illinois Electric Railways Association, Rockford, 111., July 16, 1919. two years or so, when practically no construction work was done, and it was necessary for the engineering department to spend considerable thought and energy on repairs, has the industry made any marked develop- ment in maintenance-of-way work. For years past the larger part of our electric rail- way standards and methods have been based on steam railroad standards and methods, partly because most engineers on electric railways had their original school- ing in steam railroad methods and partly because of the feeling among the electric railway men that the steam roads had worked out many of these problems and what had proved satisfactory to them should also be satisfactory for electric railway practice. And indeed the work on interurban lines and open tracks is about the same as on steam roads with maintenance of distribution systems added. Up to two or three years ago we had no books of authority on electric railway track maintenance, and, in fact, we have now no com- plete and adequate books on this subject which can be turned over to the newcomer for his guidance. Each man has therefore been forced to work out his own problems to a considerable extent, which has led to a great diversity of practice without the establishment of any particular standards. Many electric railway engineers have in the past felt that the way to solve the maintenance problem was in Augrist 2, 1919 Electric Railway Journal 221 the original construction. In our larger cities very heavy, expensive types of construction were adopted and the smaller companies followed the larger cities without giving any consideration as to whether the'- could afford the expenditure or whether the types adopted met their conditions. We have spent our money in new construction only to find that the type of construction adopted did not bring about the results that we expected and that we now have very expensive maintenance work to keep up the tracks so constructed. I believe that we are rapidly coming to the point where, with the adoption of lighter equipment, we will develop a more economical track construction that will be just as serviceable as many of the heavy types in use during the past ten years. At present prices, the types of track construction commonly used by electric railways in city streets cost not less than $40,000 a mile. Let us assume that by the adoption of cheaper construction we can build a serviceable track for $35,000 a mile, saving $5,000 on the original cost. The interest charge on this $5,000 will amount to at least $300 per year. Most properties figure their track depreciation at from 4 per cent to 5 per cent. The saving therefore in depreciation would amount to $200 or $250 per year, or by the saving of $5,000 in the original cost of construction approximately $500 per year would be saved in operating charges. Now, if even 75 per cent of this $500 is given to the maintenance-of-way department in addi- tion to the usual allotment, it would amount to an addition of $375 per year, or $7,500 over a period of twenty years, which is about the life of track in city streets. During the past two or three years we have developed methods of repairing defects in track work that we never thought of a few years before. Welders and grinders of various types have come into common use. We are learning to repair special work parts instead of buying new ones when failures occur. We have learned that battered joints and broken rails can be welded and repaired at no unreasonable expense. We have learned that we cannot build a track that does not have to be maintained and that repairs on tracks recently constructed is no great criticism of the con- struction but a wise precaution, and we are, therefore, willing to accept a less expensive type of construction and spend a little more money keeping it up after it is built. A Successful Repair Job at Joliet The question of track maintenance in city streets, paving not considered, is mainly a question of main- tenance of joints and special work. Ties in paved streets are seldom renewed, nor indeed is renewal often necessary even with the cheaper grade of ties until the track is rebuilt. The principal cause of so much trouble with joints in paved streets is that the paving prevents the tightening of bolts and other precautions that are used on open track. But even if the joints do become battered and the rail ends broken there are many ways in which very satisfactory repairs can be made at a comparatively small expense. For example, on the Jolict property we had a piece of track about a half-mile long which had reached such a point that a few years ago we would have almost recommended its reconstruction. Without the purchase of any new material except bolts and bonds the joints were repaired at a labor cost of about $3 a joint. This track is now in fairly good condition, and reconstruction has been postponed some five or six years. The rail section was 6-in. Lorain 263 and the joints were 24-in. fishplates. The rails had become battered at the ends and broken, and it appeared like a hopeless task to do anything except relay the rail. We had in our yard a quantity of old 36-in. continuous joints that had been removed from a piece of track that had been relayed. The ends of the rails were cut off about 41 in. back from each end and a piece of second-hand rail about 9 in. long was inserted. The old continuous joints were heated in the center and drawn up to fit tightly against the insert. The rail was then drilled to fit the new joints, one hole being placed in each end of the insert piece, and the joints were bolted up. The surface of the rail was then ground smooth with a track grinder. There are many methods such as this that can be used for the repair of track joints. After all, the joint problem is not so serious as we have been accustomed to believe, as a good blacksmith can repair old joints for such use, when satisfactory smiths can be found, and even new joints can be purchased or the insert piece can be welded by the use of an old pair of fish- plates. Track special work can be repaired in many similar ways. Broken switches and frogs can be readily welded and made almost as serviceable as new ones. I am not an advocate of trying to build up new wearing surfaces for permanent wear, as this is very seldom done in such a manner as to make it more than a tem porary repair. New centers can be purchased, however, and inserted in old pieces at a very great saving over the cost of an entire new part and this method makes a permanent repair, whereas the building up of wearing parts generally destroys the entire part sooner or lat'-r with no permanent result. The Paving Problem Is Always With Us One of the greatest sources of expense to the main- tenance department having city tracks is the main- tenance of paving. The type of vehicular traffic on our city streets has changed very much in recent years so that the type of pavement that was found satisfactory a few years ago is wholly unsatisfactory for the fast moving, heavy traffic that we have to-day. Paving requires more maintenance now than ever before, due partly to the additional wear and tear which we now find the heavier loads and high speed traffic cause, and partly to the necessity of having a smoother pavement cn account of the increased speed of traffic. The granite Mock was formerly considered the best pavement to be used on heavy traffic streets and brick on streets with lighter traffic. We now find that the impact, suc- tion and vibration caused by the heavy automobiles passing over pavement of these types cause them to deteriorate very rapidly. If we are to expect our pavement to give satisfactory service, we must adopt something that is rrtuch smoother than either brick or granite block. Where a few years ago many engi- neers considered creosoted block, asphalt and concrete unsatisfactory for pavement around car tracks now a large number advocate such types. The cost of relaying old pavement is very high and where the track is not worn out and the paving has become rough it may be possible that satisfactory' re- sults can be obtained by pouring over this pavement a coat of asphalt or other similar material. We expect to try about a half-mile of this in Joliet this season, at a cost of about $500 or $600. 222 Electric Railway Journal Vol. 54, No. 5 Determining ^Tair Value" American Electric Railway Association Committee Outlines the Fundamental Principles Which Should Underlie Valuation Procedure THIS report is predicated upon the assumption that public utilities in the future will be regulated by national, state and municipal authorities to the ex- tent necessary to insure good service to the public and to provide a sufficient income to cover the costs of the service, including fair wages to labor and a fair return upon the investment. The rate of investment return should be such as will attract investors and the security of the investment should be placed beyond question so that the companies may obtain, at minimum rates, the capital required for the extensions, betterments and im- provements necessary to keep pace with population growth and future transportation requirements. It is further anticipated that public service commissions and other interested governing bodies will recognize the op- portunity that the present emergency affords them to perform a good and useful public duty by safeguarding the integrity of utility investments and by establishing methods that will insure good service to the public. They should be as liberal in their dealings with the companies as the urgency and gravity of the present general situation demand, and a proper consideration of the public interest and general economic stability will permit. On the other hand the companies should only ask for such treatment as a fair analysis of the condi- tions warrants, and that they can with propriety and reasonable assurance defend. How Shall "Fair Value" Be Determined? Two very important items involved in determining the proper rates of fare that any company may charge to produce an adequate gross income are the "fair value" and "rate of return" to be allowed upon such value. In view of the great importance of the item of "fair value" in rate making negotiations, the association requested the valuation committee to prepare, at the earliest possible date, a report setting forth its recom- mendations as to the proper procedure to follow in de- termining "fair value." It was the hope that through the work of this committee, representing practically all of the street railway companies in the United States, there could be evolved a method of valuation based upon safe economic principles, and acceptable to investors, public utility commissions and other public rate making bodies. In attacking this problem your committee rea- lizes the many conflicting opinions that have prevailed and the many mistakes that have been incorporated in public utility valuations in the past. However, it is the unanimous opinion of the committee that it is the earnest desire of all interested parties, the courts, pub- lic utility commissions, municipalities and other govern- ing bodies, as well as the companies, to evolve a method of arriving at the fair amount of capital upon which " \bstract of the report prepared by the American Electric 'Railway Association'.s committee on valuation for presentation at tlie Atlantic City convention this fall. The committee con- sisf: of Philip .1. Kealv. chairman, George Weston, Martin Schrei- berW. J. Harvie, B.E. Tilt on. J. N. Shannahan. \V. H. Sawyer and Charles E. Bailey. Owing to the importance of the subject at present" this report is being made public now by the executive committee. to base a return and that this can be accomplished by the application to the problem of common sense business methods. There can be no question but that the investor in any public utility serving the public is entitled to a fair return upon his investment until it has been returned to him. Accepting this principle as an "axiom" every dol- lar spent in creating the property including the individ- ual efforts (the equivalent of money) of the promoters, organizers and builders of the property, and including the superseded property unamortized out of the earn- ings of the road, should be included in the "fair value," also, an investor in a company is entitled to a reasonable return upon his actual original investm.ent, plus the appreciation of the property, including its value as a "going concern," as compensation for his "initial risk" or "hazard" and his skill in successfully operating the property. In other words, an increase in capital value is the same as an increase of new capital. General Principles of Valuation Stated With these general premises in mind the committee makes the following statement of general principles in- volved : 1. Where "original investment" is used as a basis of "fair value" and complete "original cost" data, cov- ering all expenditures including promotion, organiza- tion, cost of financing, contingencies, etc., are available, there should be added to these original cost figures any appreciation, including a fair value for going concern, and there should be no deduction for unamortized su- perseded property or for accrued physical depreciation in a well maintained property. 2. Where full and complete original cost data are not available, the "cost to reproduce new" method should be used. An inventory of the existing property should be made using prices as of the date of the in- ventory. This date should coincide with the time the valuation is being made, the prices being expressed herein as "prices of to-day." To this "bare bones" in- ventory and unit price summation should be added the proper "overhead" percentages, "going value" and other development costs to complete a full "fair value" for "rate making purposes," and there should be no deduc- tion for accrued physical depreciation in a well main- tained property. It is seldom that the older properties have a com- plete, reliable record of total actual expenditures and therefore it has become the almost universal practice to inventory the existing property and apply unit prices to the different items of construction. In some cases, valuations have been made upon sev- eral different bases: (1) Original cost data. (2) Re- production cost with prices as of dates of construction. (3) Reproduction cost with price as of to-day. (4) Re- production cost with prices averaged over several years. In all cases the proper overhead charges and devel- opment costs should be added to determine a fair value tor rate making purposes. August 2, 1919 Electric Railway Journal 223 Items to be considered in estimating fair value for "rate making." (a) Promotion expense (b) Organization expense (c) Brokerage (d) Construction (e) costs Overhead direct charges not in- cluded in (d) (f) Going concern (g) Working capital (Based upon actual property in- ventory at prices as of the day and date of inventory.) 'Engineering and superintendence. Storeroom expenses, cost of hand- ling materials, clerks, general office help, contingencies. Con- tractors' profit. Carrying charges during construction. Taxes dur- ing construction. Insurance dur- [ing construction. f (1) Cost of consolidation (2) Superseded property (3) Created value 1(4) Development costs. Definition op Terms Promotion Expense. — The initial vv^ork necessary to start a public utility enterprise requires the time, ef- fort and work of capable men to plan the proposed serv- ice, to show its public necessity, to estimate the pos- sible business and prepare construction costs, gross re- ceipts and operation expense statements, and the pre- liminary work necessary to procure franchises, etc. This work is a service of value to the public and rep- resents a money value properly chargeable to capital ac- count. Organization Expense. — An efficient organization must be carried during the formation and construction period consisting of legal, financial and business ex- perience and ability to arrange for and carry on the details of company organization and the creation and construction of the property. This expenditure is a proper charge to capital account. Brokerage. — The money necessary to create the prop- erties must be arranged for through sales of stock and bonds, and bankers or brokers are generally engaged to place the securities and collect the money as re- quired. This means: The payment of commissions, preparation of mortgage*, service of registrar (corporate and individual), service of trustees, cost of certification, revenue stamps, cost of recording mortgage, public service commission costs for approval, advertising, and other expenses, and this brokerage cost should be in- cluded in any investment estimate for rate making. Construction Costs. — A detailed inventory and classi- fication of the existing physical property forms the basis of all "cost-to-reproduce-new" valuations, to which should be applied unit prices and costs or values as of the date of inventory. The value based upon present day prices is then in accord with the current rates of wages, the current cost of material and the current value of a dollar and is economically sound. To the "bare bones" inventory at unit prices must be added the direct and indirect overhead charges not included in the unit prices for rails, other construction mate- rials, labor costs, etc., all as enumerated. Overhead Charges. — The items of direct overhead charges enumerated above should require no further ex- planation. The purchasing of the materials, their transportation, sub-delivery, accounting, inspection, etc.. require supervision and direction and the effort of large forces of storeroom and general office help, inspectors and checkers, the cost of which is not included in unit prices. The general and detail design of all parts of the property requires the work of engineers and architects and their assistants to prepare drawings, bills of m.a- terial, working specifications and purchase contracts, take the general direction of the work in the field, make estimates of cost, progress estimates and partial pay- ment estimates for all contracts and generally supervise the progress of all parts of the construction, the cost of which could not be included in unit prices. During the progress of the work, cash must be pro- vided to pay the current labor, material costs and par- tial payment contract estimates, and interest must be paid upon this capital as it is invested during the pe- riod of construction and before the property can earn a return. The same is true of taxes, and insurance, both fire and accident. Interest, taxes and insurance during the construction period are a part of construc- tion costs and should be a capital charge. In the building and erection of a large property many contracts are entered into for specific kinds of materials in quantities, special machinery, track work, buildings, etc., and the item of contractors' profit is one of the construction costs that must be included in "fair value" for rate making. The item of contingencies is an important one in any cost estimate whether it is to furnish advance infor- mation to financiers and promoters, or in connection with any large public improvement, or our own problem "the establishment of a reasonable and just investment value." This item covers the uncertainties, commis- sions, additions and extras attendant upon any con- struction job, large or small, and among many other things, includes the following unforeseen but ever-pres- ent items of delay: Removal of obstructions, the ap- pearance of conglomerate, hard pan, or solid rock in excavations where earth had been estimated, slides in open cuts, the removal and restoration of water pipes, gas pipes, electric wires and other underground im- provements, under-pinning of buildings, etc. The item of the removal of underground obstruction alone often equals 25 per cent of the total construction costs in sub- way work. To quote from the paper on "Overhead Charges" presented by Philip J. Kealy in the 1916 re- port of this committee, the following statement appears under the heading "Incidentals or Contingencies."^ During a recent hearing before the Valuation Committee of the Interstate Commerce Commission, Mr. Holbrook, Chief Engineer of the Union Pacific Railroad, stated that after the completion of the Lucin cutoff across Great Salt Lake, he had his engineering staff estimate the cost of the work already completed and the highest estimate was 40 per cent under the actual cost. This item of contingencies is a real item of cost in every job and ranges from 10 to 50 per cent of the total cost and in some hazardous undertakings such as under-water tunnel or foundation work the actual cost is sometimes many times greater than the "bare bones" bill of material contract-specifications estimate of costs. Going Concern. — (Health of the Property). This rep- resents the value that exists in a completed, matured, successfully operated property and embraces the items of "readiness to serve," a "built up successful business/' etc., as compared with a new property in the course of construction, or the immature condition usually prev- alent at the beginning of its operation. Other devel- opment costs, including an amount equal to the de- 224 Electric Railway Journal Vol. 54, No. 5 ficiency of net earnings below a fair return upon the fair investment due solely to the time and expenditure reasonably necessary and proper to the development of the business and property to its present stage and not comprised in the valuation of the physical property are also involved in this cost. Cost of Consolidation. — In the past competing com- panies were granted franchises in the same community and duplication of operating organizations and other expenses resulted together in less efficient and more expensive service to the public. Under one management the public has benefited by a lower average fare, the more direct routing of cars and an extension of service for a single fare. Much time, effort and expense are usually involved in bringing about a consolidation. This development expense is of value to the public, and its cost is a proper charge to capital account. Superseded Property. — A public utility company is entitled to repayment for all of its property consumed in the service of the public. The ordinary replacement or renewal of property actually worn out in the service is charged to operating expense and is therefore amor- tized out of earnings. It is only when large replace- ments of property are made necesary by extraordinary changes of motive power such as from horse car to cable or electricity or both, or by wreckage due to vio- lent storms, earthquakes or other unusually destructive calamities, or when because of improvements in the art, the general type of car or other property in service is replaced in large quantities that it becomes imprac- ticable to amortize immediately out of earnings and new capital must be used. This new capital should be included in "fair value" upon which to base a return un- til such time as it has been amortized. Created Value. — This item covers an important ele- ment of value that properly may be a part of "going concern value." It represents the value due to the util- ity having been brought into existence and becoming alive and a vital part of the community. Having pio- neered the growth of the city or community and en- hanced the value of both private and public property, the utility itself should be justly credited with part at least of the value it so created. Working Capital. — Every business should have a "cash reserve" or "working capital" to "cushion" the rise and fall between income and expenditure, to carry the materials and supplies account, and especially to fortify it against any reasonable financial emergency that may arise. An adequate allowance for this item should be included in capitalization. Bo7id discount. — This item has been set up as one of the problems to be considered in "rate making." A new public utility seldom sells its securities at par, but bond interest is paid upon par value and must be included in the rate of return. The question of "bond discount" has been considered in many public service rate cases and has been allowed as capital in some instances. In the majority of cases, however, it has been considered as representing prepaid interest and therefore a matter to be included in rate of return rather than to be cap- italized. Accrued Depreciation The prevailing practice in making valuations for rate making adopted by public service commissions and other public utility supervising bodies in the past has been the "cost-to-reproduce-new-less-depreciation" meth- od. There has been little argument between the com- panies and those representing the public about correct- ness of inventories. More differences of opinion have arisen with respect to unit prices, overhead and "going value" percentages, and the method of determining th© amount of depreciation to be deducted. Depreciation has been classed by all students of the subject as an operating charge and not a capital account item. The only provision that can be made to take care of depreciation is by making proper repairs and proper renewals when necessary and these expenditures should be charged as an operating expense, that is, in the case of renewals the original cost of the thing re- placed should be charged to renewals and any excess or betterment is a proper charge against capital. The integrity of the capital investment is thereby main- tained against depreciation to the extent practicable or economically possible. An exact standard of percentage physically good to apply to any well maintained electric railway property is difficult to establish because this percentage will vary in different properties and is in- fluenced by different types of property and equipment, the physical characteristics of soil and other local con- ditions, and usage. A property consisting of a large percentage of elevated or subway construction will show a much higher percentage of the total investment phys- ically good than a surface electric railway property. Every public utility property should be maintained at 100% operating condition, but it is both impractical and uneconomical to maintain any property approxi- mately 100 Sc physically good. This is true for the rea- son that the physical per cent good of any property will vary from approximately 100% in the case of a new property, to 80% or less, in an older property, depend- ing upon the age, the different stages of renewal cycles through which the property has passed, and the amount of additions and betterments. There is a certain amount of total accrued deprecia- tion that never can be taken care of in any operating, growing property. In other words, as stated above, the only practicable, economical expenditure that can be made to offset depreciation is to make repairs, and re- newals when physically necessary. There is no fairness or logic in an attempt to penalize a company because it has not done the impossible. The full origi- nal investment remains in the property and the investor is entitled to a return upon every dollar until the in- vestment is repaid to him. Where a property has not been kept in good physical condition and there is un- mistakable evidence of "deferred maintenance" the sub- ject should receive special consideration and if the property being valued has been a prosperous one in the past and the fact is in evidence that the money that should have been expended for renewals and repairs has been diverted to other uses of benefit to the company, the company should be required to make good this de- ferred maintenance, the cost to be charged to its in- dividual account and not to operating expense. If, on the other hand, it can be shown that a com- pany carrying deferred maintenance has been well man- aged but that the income has not been sufficient to pay the increased costs of operation, franchise obligations and interest and, in addition, properly maintain the property, then provision should be made in the rate adjustment to permit the company to earn the amount necessary to put the property in good operating con- dition. August 2, 1919 Electric Railway Journal 225 Your committee wishes to emphasize its conclusions with respect to the subject of accrued depreciation in the strongest manner possible, as follows: Where a property has been maintained in good operating condition and an appraisal is being made to determine in- vestment value for "rate making" or for sale to munici- pality, state or government, no deduction should be made for accrued depreciation. No attempt has been made in this paper to specify the percentage to apply for overhead charges or the other items of auxiliary expenditures, going value, etc., because they will vary in different properties, and there- fore must be separately determined for each particular property. This committee recommends to the constituent mem- ber companies of the American Electric Railway As- sociation, state public utility commissions, the Inter- state Commerce Commission and other national, state and municipal governing, supervising and regulating bodies, that the fundamentals and procedure contained in this report be used as a basis for determining the "fair value" of public utility properties for "rate mak- ing purposes" or for sale to a municipality, state or government. Electrification Work to Be Pushed Forward In Sweden Marked Activity in Water Power Development Aided by Govern- ment Loans Will Hasten Broad Application of Electric Drive to Railways as Great Economy THE Guarantee Trust Company of New York re- ports that probably in no other country in the world, with the possible exception of the neigh- boring state of Norway, is there more intensive de- velopment in progress in the utilization of electrical energy than in Sweden. There is in Sweden a remarkable tendency to apply the use of such power to every phase of the economic life of the country — to industry, to public utilities, to state and privately-owned railroads, to agriculture and to home life in remote districts as well as in the cities. The importance of the development is out of all pro- portion to population. Sweden's population is less than that of New York City, and is widely scattered over an area of 173,000 square miles, broken by mountains, heavily forested, and extending well within the Arctic Circle. Sweden possesses some coal, but it is not of the highest quality, and the supply is inadequate for do- mestic needs. Her immense forests are her greatest present source of national income, but the day has passed when wood fuel can be broadly and economically employed. War markets afforded great incentive to the expansion of old and new industries, yet the difficulty and cost of importing raw materials, especially coal, created a handicap which would have been insurmount- able but for the driving power at hand in the Swedish lakes and streams. The value of existing and future development of this tremendous national asset has been emphasized by bitter experience. Water Power Development Great strides were made during the war, and greater developments are planned. Sweden has seen a new vision of industrial and commercial greatness, but the past four years' experience has brought home to her the weakness of her position so long as she is depend- ent upon imported fuel. The solution lies in a full utilization of her mangificent "white coal" resources, the development of which is proceeding on a remark- able scale. There is no desire to repeat the war ex- perience of running her railroads on wood, 40,000,000 cubic meters of which was consumed in 1917, or upon imported coal at 175 crowns ($46.90) per ton, the price in October, 1918. Power, comparatively cheap, abun- dant, and available with little regard to conditions abroad, will assist immensely in realizing the industrial and commercial possibilities of her future. The amount of water power normally available in Sweden may be conservatively set at 5,000,000 hp. Such a figure places her above any other country in Europe in this respect, with the exception of Norway. Water power has been used in her industries for cen- turies, and before the outbreak of war produced more than one-half of the mechanical power in the country, the total consumption exceeding 1,000,000 hp. Demand for Electrical Energy The demand for electrical energy has not been con- fined to any particular branch of industry. The call has been universal from the great iron mines of Norr- land, within the Arctic Circle, to the extreme South, where power is already being transferred to Denmark by cable and still greater export is planned. The electrification of the railroads has already commenced and it is to be pushed as rapidly as possible. It is felt that trains must be made more rapid and the locomo- tives more powerful, to attain higher average speed rather than a greater maximum speed. In many cases of long hauls, as for instance, Stockholm to Kiruna, it is believed electric operation will cut the running time in half. Railway Electrification In 1915 the government requested the railway depart- ment to make a thorough inve.stigation and report on the question of electrification. The report, only recently completed, states that in view of the desirability of extending the existing system, the abnormal cost of fuel, and the greater efficiency and economy possible, the introduction of electric service is essential. It is estimated that the work will require ten years and it 226 Electric Railway Journal Vol 54, No. 5 is proposed that separate conduits be established for lighting along the railways and for the distribution of power to agriculturists. It is felt that electrification would be profitable even were water power not avail- able, since coal can be utilized in a steam power station with far greater efficiency than in the locomotive. Peat and inferior coal could also be used if necessary. It has been estimated that the saving in fuel alone during the last four years, if the system had been electrified at the outbreak of war, would have equalled the entire cost of installation. Railroad coal which cost $20 per ton in 1917, had risen to $46.90 per ton in October, 1918. The fuel item alone in the latter year amounted to nearly 70 per cent of the entire cost of running the state lines in 1917, and largely ac- counted for the net deficit resulting from gross rev- enues never before approached in Swedish history. Sweden's Railways The Swedish railway net includes approximately 9500 miles of lines, a greater mileage per 1000 of population than is possessed by any other country of Europe. Development in this respect is the greatest economic achievement in recent Swedish history, and is largely due to the enterprise and initiative of private capital. In 1917 only 34.4 per cent of the total mileage belonged to the state, the proportion being higher in North Sweden, 81.8 per cent, and lower elsewhere. This included, however, the majority of the main trunk lines. The balance of the mileage is split up among many private corporations, the number having been placed as high as fifty, though some reduction has prob- ably taken place through the amalgamations of recent years. With full realization of the part played by private interests in the past in the growth of the system, it is felt that systematic development of the means of com- munication in the future will be hindered by the di- vision of the railways between the state and a great number of private companies. This is but a reflection of the general tendency throughout Europe toward centralized control by the state, but the situation has undoubtedly been affected by the demand for a com- prehensive scheme of electrification. The Crown has charged a special committee to investigate the situation fully. Ore Traffic Electrification has already been applied with a high degree of success. The first attempt on a large scale, aside from the electric street railways of such cities as Malmo, Goteborg, and Stockholm, was on the Kiruna- Riksgransen line in Norrland, well within the Arctic Circle. This line is 93 miles long and carries annually a heavy tonnage of iron ore. Single phase current at 80,000 volts is sent from the government power stations at Porjus to four transformer stations along the line, of which the first is 87 miles and the last 160 miles distant. The voltage is stepped down to 15,000, at which tension power is supplied through the overhead contact device. The freight locomotives in this case weigh about 100 tons and the passenger locomotives about 70 tons. A normal freight train includes two electric locomotives and forty-one cars of 46 tons each, a total weight of 2,000 to 2,100 tons. Normal speed for freight is 18 J m.p.h. and the maximum 31 m.p.h. Maximum speed for operation the road transported 1,104,000 tons of ore, passenger trains is 624 m.p.h. In the first year of barely one-third of its normal capacity. In spite of this low traffic, a distinct saving over steam operation was scored. The continuation of the Kiruna-Riksgransen line to Svarton on the Baltic coast has been decided upon at an estimated cost of $7,800,000 for the extension of 143 miles. It is said that with an annual ore traffic of 3,000,000 tons, electric traction can compare favorably with steam traction even when coal is as low as $6.70' per ton. Current for the whole road will be supplied from Porjus. Another project calling for electrification in connec- tion with ore movement is the proposed construction of six and a half m.iles of line from Hultebo Station to the Riddarhyttan mine district on the Dagarn-Hultebo division of the State railroad. An important matter now under serious discussion is the building of a new electric express route between Stockholm and Goteborg. Such a line would care for the transit traffic between England, Finland and Russia, to which Sweden is looking forward in the near future with high hopes. For the electrification of railways seven main sources of power are available. These contemplate a total ulti- mate output of over 1,000,000 hp., including the sites now developed and those under active proposed develop- ment. It is also proposed to link up several of these sources of power to permit a more complete utilization of all power generated. New power stations completed during 1917 comprised about 65,000 hp., while work begun in 1918 calls for 90,000 hp. Other new plants begun this year call for about 50,000 hp. Exporting Surplus Power Present facilities are said barely to meet domestic requirements during the dry seasons, even in the most favored regions, though there is a considerable surplus of power available at other times. Some of this surplus is already being exported to the northern sections of Denmark by a single cable, but the street railways of Copenhagen and Frederiksberg expect to employ large amounts of Swedish power as soon as further cables can be laid. The Water Power Commission, granted $2,200,000 in 1918, asked an additional $268,000 for the purchase of further sites, etc., the same amount for the current year, and $690,000 for 1920, to be used in the construc- tion of new power stations and the improvement of existing plants. To foster such development as has been outlined above the Swedish Government has recently created the State Water Power Loan Fund and the State Power Transmission Loan Fund, with yearly grants of about $650,000 and $325,000, respectively. The stated purpose of the first fund is to permit loans up to two-thirds of the cost of harnessing waterfalls be- longing either to the state or to private individuals and for the regulation of water levels; the last is for loans to co-operative associations for the building of distri- bution systems and power-transmission lines. It was found, however, that the appropriations were insuffi- cient, since applications under the Transmission Loan Fund soon reached $2,000,000. The Board of Trade and the Board of Agriculture, in a joint memo- randum have asked that the sums available be doubled August 2, 1919 Electric Railway Journal 227 during 1919 and 1920 in order to permit greater as- sistance in the electrification of the country districts. The production of the heavier types of machinery required is an important industry in Sweden, but the drop in her German imports in many allied lines has been seriously felt. Heretofore, Sweden has paid heavy toll Jto Germany for her lack of direct shipping connections with out- lying countries. Plans now being formulated will bring Swedish ports into direct and regular communication with this country and the new policy of her big men is predicated upon the cultivation of closer commercial and financial relations with the United States. Prior to the war our part in supplying electrical equipment to Sweden was almost nil. Heretofore a very large part of the buying in this line has been done in Germany. It is only in the past two years that our share has grown appreciably and it would appear to be entirely up to the American exporter of these commodi- ties whether the figures rise to new heights or fall back to their old level. Status of Swiss Electrification THE director of the Swiss official information bu- reau in New York is authority for the statement that a number of sections of the Swiss Federal Rail- ways are to be electrified soon, and that the work on others now under way is to be pushed rapidly. Among the latter is the Gothard Railway, whose 68-mile Erst- feld-Bellinzona section will be completed this fall, while the Bellinzona-Chiasso and the Erstfeld-Lucerne lines will be completed in 1921. The cost of the electrifica- tion of the Erstfeld-Bellinzona line is estimated at $8,000,000, while the cost of electrifying the entire gov- ernment-owned system of 1800 miles is estimated at $200,000,000. In 1918 the electrification of the following steam rail- roads was decided upon, and work on them was com- menced: the sections of the Federal railroads Sion-Bri- gue and Berne-Thun; the section Hasle-Langnau of the Emmenthal railroad and the section Bevers-Filisur of the Rhaetian railroads. The lines first mentioned are part of the Berne-Lotschberg-Simplon railway, which was inaugurated in 1913. The new locomotives which are being used by the Swiss Federal Railroads on the section Berne-Thun, be- sides those of the Berne-Lotschberg-Simplon line, are each equipped with four single-phase alternating current motors, each of 450 hp. The electric parts were fur- nished by Brown-Boveri & Company, Baden, and the mechanical parts by the Swiss Locomotive & Machine Company of Winterthur. The electrification work on the Bevers-Filisur line was completed by the middle of last April and from April 16 steam engines have been duly replaced by elec- tric motors, the current being supplied by the power station of Bevers, which furnishes the necessary energy for the Engadine lines electrified in 1913. The progress of electrification in Switzerland has been very much accelerated by the acute shortage and high price of coal during the last few years. Recent esti- mates show that only 887,000 hp. out of a potential waterpower of 2,173,000 hp. has been utilized so far, and that further development of waterpower will go far toward taking care of railway power requirements. The Coming Washington Hearings Aug. 4 Hearings Postponed — Labor to Have Hear- ings— Many Mayors to Appear, Governors and Otiier Prominent Men — Plans of Federal Commission CHARLTON OGBURN, executive secretary. Fed- eral Electric Railway Commission, Washington, has advised the Electrical Railway Journal that there will be no hearings during the week of Aug. 4. This change in plans was made because so few answered the invitations to appear. The commission will now try to hear both the economists and the mayors during the week of Aug. 11, beginning at 10 o'clock Monday morn- ing. Those who had replied to invitations to appear before the commission next week, and who presumably will now appear during the week of Aug. 11, include the Secre- tary of War, Newton D. Baker; Prof. Irving Fisher; Milo R. Maltbie and Delos F. Wilcox. W. R. Wilcox, Prof. E. R. a. Seligman, and Otto Kahn of Kuhn, Loeb & Co., will probably be present. Some of the mayors who have answered the invita- tion to appear before the commission are: Andrew J. Peters, Boston; William Hale Thompson, Chicago; Alexander T. Cronnel, Scranton, Pa. ; E. P. Smith, Omaha, Neb. ; James Couzens, Detroit, Mich, and Alfred L. Roper, Norfolk, Va. Others who have expressed their intention to appear include a representative of the governor of Rhode Island, a representative of the governor of Massachusetts; Richard T. Higgins, chairman of the Connecticut Public Utilities Commis- sion; C. Murphy Candler, chairman of the Railroad Commission of Georgia and Francis J. W. Ford. It is understood that in the absence of the regular counsel for the electric railway side, Mr. Ogburn will act informally to occupy the position taken by Bentley W. Warren in the former hearings. Labor Question Also to be Considered by the Commission Discussing the future plans of the commission with the Washington representative of Electric Railway Journal, Chairman Elmquist of the Federal Commission said that he did not know how long the hearings would last each week, but that they would continue until "they got through." He said that the Amalgamated Asso- ciation had expressed its desire to be represented and present its side of the case, and that probably a week, after the week of the 11th, would be given over to the labor question. Chairman Elmquist also said that a comprehensive questionnaire is now being drafted, which will be sent to the mayors of the various cities, public utility asso- ciations and commissions, etc. In drafting this ques- tionnaire, the knowledge and efforts of some of the best economists of the country are being employed. The commission will complete its work of investiga- tion by Oct. 1, at which time it will proceed to prepare its report to President Wilson. Mr. Elmquist was re- luctant to indicate any definite course of action of the commission with regard to the disposition of the report, or as to what probable use might be made of it. It is possible that it may be submitted to the National Association of Public Utility Commissioners, if com- pleted in time for the fall meeting of that association. 228 Electric Railway Journal Vol. 54, No. 5 Electric Railway Hearings Before Federal Commission Completed Railway Officials, Bankers, Economists and Engineers Endeavor Fully to Inform the Commissioners of All Phases of the Present Situation — Many Prominent Men Give Their Opinions on the Causes and Solution of the Difficulties THE ELECTRIC RAILWAYS have completed the presentation of their case to the Federal Electric Railway Commission. So great was the volume of evidence and so thorough the manner in which the com- missioners questioned the witnesses that one would imagine the commissioners must have in their minds a most comprehensive picture of the history, engineering development, operation, financing, the economics, the public relations aspects and the legal aspects of the industry, and of all the conglomerate difficulties which have conspired to bring about the necessity for this hearing. The final hearing on Friday afternoon, July 25, was completed at 6 o'clock, at which time the commission adjourned until Aug. 4. The report of the hearings presented in last week's issue of Electric Railway Journal carried through the Wednesday morning (July 23) sitting. The following matter continues the running narrative of the hearing from Wednesday noon on. The testimony of L. R. Nash of Stone & Webster, though covered last week, continued over into the Wed- nesday afternoon sitting. He was followed by Charles L. Henry, president Indianapolis & Cincinnati Traction Company, who was given opportunity to present the case of the interurban railways. Counselor Warren, in presenting him to the commission, said that he was sometimes called the "father of the interurbans," to which Mr. Henry with hi? usual ready reply answered that such reference was made by those who had no respect for his age. The witness first reviewed the development of the interurban railways and told how the class of service rendered had changed from its limited beginning to its present broad scope. He read e.xtracts from several letters by business men which served to emphasize the value of the service being rendered by the interurbans to the merchants and to the public. The president of the Merchants' Association of Indianapolis, Ind., wrote that no other factor had done so much to increase the down towii merchants' business and that Indianapolis had a larger out-of-town trade than any other city, due to the large interurban mileage entering the city. The merchants' credit files showed that there were thousands of persons all over the state, the majority within a 100- mile radius, who maintained regular accounts with the Indianapolis m.erchants. A letter from the Detroit Board of Commerce stated that 70 per cent of the ship- ments of the wholesalers there went out over the elec- tric lines. Mr. Henry also read a letter from a livestock shipper to show the value of this class of service being rendered to the community by the interurbans, in which the ship- per stated that because of the better, quicker service afforded by the electric lines, he had been able to save practically all the transportation charges through the elimination of shrinkage. As the result of this also, he had been able to pay the farmers a few cents a pound more for their stock. Mr. Henry figured from this that the electric lines of that community had put $7,100 more money into the farmers' pockets than they would have received, had the shipments been made via steam routes. The witness also brought out the long distances over which this freight service was supplied, citing one haul regularly of 125 miles, another of 262 miles and another of 171. He said the volume of this class of traffic avail- able seemed to be limited only by the company's ability to provide facilities. During 1918 the freight hauled out of Indianapolis alone was 151,654 tons, and there was 12,673 tons of express. Attention was also called to the service supplied by the interurban companies in the way of light and power to numerous towns which would otherwise be without electricity. Troubles of the Interurbans As to the trouble faced by the interurbans, Mr. Henry said there was no such crisis as the urban com- panies are feeling, but that it consisted of an accumu- lation of a number of difficulties which are preventing the lines from making any money or developing the full use of existing facilities. Among these difficulties he pointed out the limitations upon hauling freight cars through city streets, various franchise limitations, ne- cessity to pay for street paving in many towns and villages, loss of express business formerly carried due to the policy of the American Railway Express Company of routing all express business exclusively over steam lines, unfair competition of trucks, etc. He said there was a movement in connection with the building of new highways to force the traction com- panies to eliminate grade crossings to an extent beyond their ability to pay. Further this served as an assist- ance (along with the tax upon the company, part of which is devoted to the road construction work) to the principal competitor of the interurban lines — the motor truck. He said he had no fear of the competition of the trucks if they were put on equal footing with the elec- tric lines, and he did not ask that they be done away with. But what he did want was that they be required to file schedules and to live up to them and give a regu- lar service; in other words, that there should be no "wildcatting." He quoted from a United States Bulle- tin a statement by the general manager of a large motor truck company being organized in the Northwest, in which this gentleman also expressed his concern that "wildcatting" competition would be very disastrous for he proposed to file schedules and give a regulated serv- ice. Mr. Henry stated that the Pacific Electric Com- pany was losing $1,400 a day, $500,000 a year, from August 2, 1919 Electric Railway Journal 229 "interurban jitneys" — jitneys doing country business. Then he reiterated that the electric lines were not afraid of this form of competition if it were made subject to the same regulations. Mr. Henry told how the rulings of the War Labor Board had indirectly required the interurban roads to meet the same scale of wages for track laborers as paid by the Railroad Administration. He also pointed out how the latter's fixing of prices had resulted in what in effect were combinations which made it necessary for the electric lines to pay the same high prices. The maintenance of the ridic- ulously low commutation rates for suburban service on the steam lines was al- so working a very great hardship on the electric lines and the steam lines are losing money on it too. These rates he showed were as low as 0.4 cent per mile, and were in- creased only 10 per cent at the time the 3-cent fare was inaugurated. This of course makes competition by the electric lines al- most impossible. How the rate of fare the Central Electric m Railway Association terri- tory had been increased from 1^ cents a mile to the present 2 1 -cent rate was mentioned by Mr. Henry. He did not be- lieve that a 3-cent rate in that territory would result in greater revenue. There had been practically no public remonstrance against the fare increases. On his own property, he had called a meeting in every town served and told them the situation frank- ly, and in every case he had secured an indorse- ment of his petition to the state commission for an increase. He stated that the commissions have generally shown a dispo- sition to grant increases but that there had been some disastrous delay in getting decisions due to the uncertainty about the 2-cent fare statutes. Asked about the condition of the street car com- panies in the small cities, Mr. Henry said it was even worse than in the large cities. Not one was paying dividends of any kind. The jitney competition was more virulent, and the companies were loaded down with taxes. There was no reason now nor never was any why any charge should be made against any line except as it entered into the production of transportation. With this phase of the problem cleared up, it would greatly improve the outlook for the small properties. From the Laboratory of Thomas A. Edison, Orange, N. J., July 22, 1919 Federal Electric Railway Commission, Washington, D. C. ' Gentlemen : I have been very much interested in the progress made by the electric railways since I first built one at Menlo Park, N. J., in 1880. The systems operated and the apparatus have now reached great perfection. Some of the greatest engineers in the country have given almost the whole of their lives to attain this end. The end is not yet reached. The great trunk lines will in time be added to the electric domain. It is to the greatest advantage to the public that every encouragement be given to those who have and will still further act as pioneers in the further perfection of this flexible and highly economical system of power distribu- tion, whereby our natural fuels are conserved to a greater extent and all the power of water falls utilized. At the present time the electric railway industry has reached a serious stage. Everything has stopped advanc- ing. Countless millions of securities based on this industry are held by conservative investors, families, etc., who are possessed of a dread for the future. No more capital can be obtained except in special cases. The iron-clad contracts between the roads and cities made in the pioneering days under normal conditions have no protective clauses against the greatest change that has taken place in centuries, due to the world war. The municipalities can exact their pound of flesh if they so desire, with the ultimate bankruptcy of these organizations, but the spirit that is now abroad in the world is against this. We are now all trying to play fair. If suffer we must, let us suffer alike. If prosperity comes, all should partici- pate in a like manner. I hope the commission will succeed in placing this industry on its feet again. This in its turn will stop stagna- tion; give the roads stability to raise plenty of capital; new extensions will go on ; new things will be perfected and introduced. The restless Americans who work all day and far into the night are forever pushing higher and higher that great line of the thirty degree angle, illustrating the rise of the American nation in wealth and power. Questioned as to the effect of the fare increases on the number of riders, Mr. Henry said that there had been little loss up to the present 2 J -cent fare, but he thought there would be a greater loss with a 3-cent fare. On his own property, the last 10 per cent increase had been accompanied by a 20 per cent increase in pas- sengers over the same period the year before. This was still less than the number of passengers which the traction lines carried two years before, however. He believed that a reasonable increase of interurban fare does permanently increase the revenue obtained. In reply to a query from one of the commissioners, Mr. Henry gave the opinion that the city com- panies would be able to realize some revenue, an additional source of rev- enue, from carrying ex- press packages over their lines. He said the amount of such revenue would be greater, the less compact the city's population, and vice versa. As another source of re- lief for the interurbans, none of which are paying dividends he said, Mr. Henry advocated the ap- plication of the principle that an electric railway has no value for taxation except its earning power. On this basis the assessed value of his road would be $700,000 less than it now is. Charles W. Kellogg of the Stone & Webster Com- pany, Boston, and chair- man of the committee of the A. E. R. T. & T. As- sociation which is now making a study of the safety car, was the next witness. He was called to the stand just before the close of the Wednes- day afternoon sitting and continued his testimony at the evening hearing. He reviewed briefly the his- tory and operating fea- tures of the safety car and then presented a few figures gathered by the Traffic Association committee through a questionnaire sent to some fifty member com- panies. As the report of this committee is not yet com- pleted, it is expected that the figures given will be am- plified and made more representative and accurate, so that the data will be more valuable when the report is later presented to the association. In its questioning of Mr. Kellogg, the commission evidently sought to satisfy itself that the safety car is not a remedy of sufficient magnitude to give relief from the present ailments and also that its use to a greatly increased extent should be recommended. 230 Electric Railway Journal Vol. 54, No. 5 Frank J. Sprague, the well-known inventor of many important electric railway devices, a member of the Naval Consulting Board and the builder of the first electric street railway, in Richmond, Va., was the next witness. He reviewed some of the conditions and diffi- culties of the very first electric railway installations and pointed out how not a vestige of these early equipments could now be found, so complete had been the obso- lescence and replacement. Questioning by the commis- sioners brought forth his opinion that the develop- ment of the art, so far as the electrical equipment is concerned has reached such a state of perfection that the factor of obsolescence will be very much less im- portant in the future and the industry may therefore be considered to be upon a more stable basis. Factors contributing to this opinion were the high perfection of the turbo-generators and motors reached and the settlement of some of the old controversies of the en- gineers as to the relative merits of different systems of electrification, etc. Asked for his opinion on the future of the electric railway industry, he said that it was absolutely a per- manent institution, though having before it a steadily increasing competition. He said the automobiles, air- "Automobiles have taught the people not to walk, so they ride the street cars when the autos are not available." Richard Schaddelee. craft, etc., will to a certain extent create a traffic of their own in addition to the street car traffic. He be- lieved that the electric railway has a field of its own and that provided it is well managed, well maintained, and good service rendered, that it will continue to have suf- ficient passengers to make the business profitable. As to what the remedies were for the present crisis, he said that first it was necessary to gain the confidence of the people, for if they would believe the real facts when they are put before them, they could not help but approve increased fares. For they want good service; they do not want to go backward in this respect. He believed it to be a matter of securing an appreciation on the part of the leading men in the communities of the real situation in order to establish a basis of fair dealing. Second, it was necessary to set up a system of regulation which would assure a fare representing the actual cost of the service, no more and no less. A more equitable system of fares is probably desirable, he remarked, suggesting the possible use of a zone sys- tem, but a general increase of revenue is certainly necessary, whatever plan is followed. Mr. Mortimer Testifies J. D. Mortimer, president of the North American Company, was the first witness heard by the Federal Electric Railway Commission at its sitting on Thurs- day morning, July 24. He reviewed at some length the history of the entire situation in Milwaukee, discussing the operating conditions and the rulings of the Wis- consin Railroad Commission during the past two or three years, endeavoring to show by his testimony in- formation which would tend to offset some of the state- ments that had been made before the commission to the effect that the companies do not make public the facts and that it perhaps would be better if they would fight back. Asked his opinion of the commission sys- tem of regulation, he said he was a believer in the public utilities commission, that it offered a means of solution of the many complex problems that arise between the public and the company, but he was very strongly of the belief that the law should be revised or so estab- lished as to avoid the shifting bases employed by suc- Speaking of municipal authorities — "The breathing of self-manufactured incense is one of our best outdoor sports. The headlines destroy more men than the obituary notices." Job Hedges. ceeding m.embers of the same commission in arriving at decisions. To illustrate what he meant by shifting bases, he .said that in the matter of physical valuation of a prop- erty, the personnel of the commission at one time would have one idea while a succeeding personnel would have an entirely different one, and each would hand down de- cisions according to its own views so that the company could not count upon any set policy in connection with its expenditures or financing. Another example cited was the fact that the Wisconsin commission had at one time granted a depreciation allowance of 4.46 per cent, and later with a different personnel had granted only a 2.82 per cent allowance — a difference of 1.64 per cent which, figured against gross receipts of a million and a half dollars, represented a considerable difference for the year. He cited other examples to illustrate the unstability of the commission's attitude. Mr. Mortimer pointed out that the Wisconsin public utilities act contemplated a service-at-cost plan, but that it had not worked out that way. The commission had at one time established 7* per cent as the reasonable return which would be allowed on the value of the prop- erty as determined upon a physical evaluation. How- ever, at no time during the last two years has this rate of return been earned and more recently the commis- sion issued a statement that it had never said that the utility companies were to secure this reasonable return in good times and bad times. He said that the administration of the public utility law in Wisconsin had brought about a situation so bad that, as a result of his experience, he could not conscientiously recommend the "The present principles of taxation are based on the theory of plucking the most feathers with the least squawk." Prof. Charles J. Bullock. placing of any more money in the electric railway busi- ness in that state. In summing up why the service-at-cost plan in Wis- consin has not worked out, he said the first reason was the shifting bases of opinion, and second, the long period involved before the commission rendered a decision. There can be any number of reasons for delay if the commission desires delay. There is no guarantee of the integrity of the capital invested in the property. August 2, 1919 Electric Railway Journal 231 The cost of capital is continually changing, but there is no provision for determining in due time the proper return which will be allowed on the new capital re- quired. There is further no assurance that a company will be able to collect sufficient revenue to pay the fixed returns allowed. The costs of operation are increasing so fast that there is no certainty that enough revenue will be collected to keep the property going. "What would you think of a doctor who took a year to find out whether you were sick when you applied to him for relief?" Charles L. Henry. Mr. Mortimer then told the Federal Commission of the circumstances which had developed a new kind of contract at Kenosha, Wis. He said that one-man safety cars had been installed in the town and had made a very bad impression upon the public, principally be- cause the town has tv/enty-five railroad crossings, so that the principal function of the conductor in the past has been to act as a flagman. Subsequently the men asked for an increase in wages and the company replied to the petition of the employees that it did not have the heart to deny the increase but could not pay it. They went on strike and for five weeks the city did not have any street car service. Finally the railroad commission ordered the jitneys off the street and because of the complete change of public opinion, the company re- sumed service with a five-cent fare and using the small cars. This company is now paying the best of any of the North American properties. But the citizens of Kenosha wanted extensions built which the company reported it was unable to finance under existing regulations. The city then talked about buying the property and Mr. Mortimer said that he had offered no objections to this. When he was called by the city to find out if he would sell, he first informed the city representatives that he had no objections. Then he began trying to sell the property to them. The harder he tried to sell it, the less they wanted it. They then asked him what plan of agreement he would have to have in order to be able to finance the improvements which they desired. He then outlined the necessity for a municipal guarantee of a fixed small return on the capital invested in utility properties. This rate he "The American people never do an injustice unless influenced by politicians who indulge in too much vocal exercise and not enough physi- cal." Richard Schaddelee. set at 6 per cent plus fixed charges. The plan also in- cluded the provision that any earnings in excess of 6 per cent should be divided, 40 per cent to the munici- pality, 10 per cent to the employees, and 50 per cent to the company. He also specified that the fixing of fares should be left entirely to the company. Later the fundamental terms of the plan he had out- lined were adopted, and the legislature was induced to enact bills which made the plan operative, not only in Kenosha but in all other cities of the state except Mil- waukee and Superior. Upon questioning by the commissioners, Mr. Mor- timer stated that there had been two noticeable influ- ences working to increase the cost of carrying passen- gers. The first of these was the very great wage in- creases, and the second was the fact that the companies have been quite generally forced to extend their lines into unprofitable territory, thus adding unremunerative car-hours, car-miles, labor, etc. This has resulted in Milwaukee in an increase in the average length of haul in the last five years of about one-half mile per pas- senger, it having formerly been about 2.6 miles and is now about 3.1 miles. In this comparison, he referred to the length of haul within the single fare area of the city only. The present situation clearly shows that the revenue is too low or the operating expenses too high, and these may be due either to too low a fare or to hauling too great a distance. He said that Kenosha was now showing a larger depreciation fund available than Milwaukee, due principally to the comparatively short distance it was necessary to haul passengers. He pointed out that during the last ten years there had been an incessant demand on the part of the public for Speaking of public service commissioners — "The proposition is to find a mind and a spine that will synchronize." Job Hedges. increased service, irrespective of the amount of traffic. This demand has been so pronounced, that in Wisconsin the commission finally ordered a ten-minute minimum service on any line. In some cases this ruling has not worked altogether to the injury of the company, for it has brought about some slight increase in the number of riders. None of the North American companies has ever asked for an increase in fares above 5 cents for they were very desirous of retaining the short-haul riders. Mr. Mortimer commented that the rates on some of the suburban lines around Milwaukee have been increased, but that this has not affected the growth of the terri- tory. This had been done in attempting to carry out the policy of making the end of the line profitable, but he had found that this could not be done. The most pressing problem aside from the matter of revenue, Mr. Mortimer said, was the labor trouble. He believes that fundamentally and individually, the workmen are desirous of being put on an individual basis of payment. He had experimented with the gain- sharing plan of emolument which includes a certain wage, with a reward for good conduct and efficiency. The employees have an intense curiosity as to what their share is going to be for that month in the earn- ings of the company and this tends to keep them in- terested. The plan also makes it possible to disclose to the employees the most intimate results of their acts and to give them a thorough appreciation of the com- pany's problems and its work. At the present time the board of directors of the Mil- waukee Electric Railway & Light Company includes a director who represents the employees of the company. This director was elected by the Employees' Mutual Benefit Association through a primary nomination and 232 Electric Railway Journal Vol 54, No. 5 secondary election, the employees' association compris- ing all of the employees of the company. The first di- rector so elected was one of the watch engineers of one of the company's power stations. In order to meet the requirements of the law, the company placed one share of stock to his name. He has the same power on the board of directors as any other member and he sits in on all of the board meetings, and is gladly heard on any question to which he desires to contribute discus- sion. The plan for representation on the board in the Milwaukee company originated with the employees, but was willing acceded to by the company. In fact, Mr. Mortimer said that he would be willing to have a larger representation of the employees if they so desired. At this point Mr. Mortimer's testimony was inter- rupted to give way to Ex-Governor Foss of Massa- chusetts who had, upon his request, been assigned that particular hour for a hearing. Mr. Foss's testimony appears a few paragraphs below. Continuing his testimony at the Thursday afternoon session, Mr. Mortimer pointed out that there was no uniform remedy which the commission might hope to recommend for application to the entire industry. In order to determine what would be best to do would "Governor Foss thinks he is radical. If we had Lenine and Trotsky, we would not only have municipal ownership of the utilities but of the Governor's factory and his nine autos too." Richard Schaddelee. require a study and approximately two years experi- mental period upon each property. While he fully believes this two-year experimental period to be highly desirable in working out what is best for the industry, he emphasized very strongly that in the meantime relief has got to be supplied in the way of immediate flat-fare increases, in order that the industry may be saved from bankruptcy and in order that credit shall be restored so that the companies will be able to attract new capital at the end of the two-year experimental period when it will doubtless be needed to install whatever proves to be the necessary changes in operation of the roads. Any business of shrinking nature is not attractive to private investors. But the flat-fare increase has in every case in which it has been applied brought about in time an increase in revenue, although this increase was not in the same ratio as the fare increase. Hence the flat-fare increase as a temporary expedient may serve the end of re-attracting capital. Speaking of the number of passengers which might be expected, Mr. Mortimer remarked that in all the in- dustrial centers where the population is increasing, it would be expected that the number of street car pas- sengers would also increase. This, however, is somewhat influenced by the higher fare, which induces more people to w-alk, particularly those who would be classed as the short-haul riders. From this Mr. Mortimer continued that the principal competition of the street railway is the walking which takes place. The number of cars which a company should have on the street at any time should really be determined by the number of people walking, rather than the number of people on the cars. Turning to a discussion of depreciation and obso- lescence allowances in reply to questioning from the com- missioners, Mr. Mortimer stated that the purpose of ac- cumulating such allowances was to insure the future re- placement of the elements of the property at the end of their physical life. These are not so much to provide for the wearing out of the physical property as for its replacement in order to operate the property in per- petuity. He said that the public would never allow a rate of fare which would amortize a property to its scrap value within a flxed franchised period, the aver- age term of which is twenty to twenty-five years. The depreciation allowance creates a liability more than is used in any one year, but this is necessary if the balance sheet of the company is to show the true assets and liabilities. This records the liability of the corporation to the utility to preserve the property. Municipal Ownership the Remedy, Says Foss E. N. Foss, for three terms govefnor of Massachu- setts, was given audience before the Federal Commis- sion at 12 o'clock on Thursday, July 26. He said that he appeared in private capacity and as a large holder of street railway stocks, and as a former director in many electric railway companies in Massachusetts and New York. The ex-governor quickly unveiled his mis- sion by saying that he had "come to the conclusion, though reluctantly, that public ownership was the only solution of the electric railway problem. Private own- ership with public regulation has fallen down and is out of the question." The very principle of this is wrong, he said, for one could scarcely imagine that any man owning a piece of property would get along with some one else who tried to tell him how it should be run or what should be done with it. The utilities must be operated by their owners, and owned by their operators. The witness said that he was primarily interested in public ownership of electric railways because it means better democracy, for he believes that our transporta- tion systems and then our factories must be democrat- ized or the country will be in the same condition that the nations are in Europe. Referring to the general unpopularity of the govern- ment operation of the steam railroads, the governor re- marked that we have not had public ownership of rail- roads, that they had simply been leased under stress because they had fallen down under private operation. This lease had been made at the enormous rental of $150,000,000 a year, which was much more than should have been paid. The deficit of $200,000,000 in 1918 from the operation of the railroads by the government was not chargeable to the railroads or to the govern- ment, for practically the same people had operated the roads after the government took them over. This de- ficit was simply chargeable to the war. He said it would take five years to work out and effect the econ- omies which were certainly possible under government operation. He would not admit for a moment that it is impossible to get as good efficiency under government ownership as it is under private. He was not willing to admit that the post office department was not effi- ciently operated. Questioned upon some of the financial aspects of the transition to public ownership, Ex-Governor Foss turned his remarks to another phase of private ownership. "Banker management has got to cease," he said, "be- cause the temptation to wreck the roads and reorganize August 2, 1919 Electric Railway Journal 233 them about every ten years is too great." He believed that the bankers had had absolute control of the opera- tion of the public utilities in general and that the boards of directors had been practically ignored. The management of the utility goes direct to the banker over the heads of the directors when any great policy is at issue, and the banker's decision is the one which controls. He said Mr. Mellen of the New York, New Haven & Hartford did not know some of his directors when he met them on the street. Asked about the ability of the various communities to raise the necessary funds to take over the electric railways, Mr. Foss answered by saying that it would not be necessary to raise the $6,000,000,000 which represents the outstanding securities of these utilities, but that the securities would be cashed at their fair worth and that the railway holders would be willing to accept that value. In another part of his talk, he re- marked that the state should stand morally responsible for the money which people have risked in the utilities in order to supply the services to the people in general. The value at which the propertj' should be taken over should be determined by a state tribunal, although the property should be taken over at once and the valuation determined thereafter. In other words, nothing should be allowed to stand in the way of the immediate carry- ing out of the public ownership program. Instead of the usual remarks made about the utilities, that they must cease being political footballs, Mr. Foss made the statement that they must cease being specu- lative footballs. Also, he said that the quasi-public corporations must be taken over by the government in order to keep them out of politics, accusing these cor- porations of maintaining the greatest lobby in the coun- try. He cited one instance of a man representing the utilities, to whom he referred as the "king of lobbyists," who had received a salary of $25,000 a year for his work. Legislatures and legislators have been made and unmade by the utilities. The public cannot get a square deal from private ownership with public regulation, so that municipal ownership is simply inevitable. Service-at-Cost Plan a Makeshift Directing his remarks to the service-at-cost franchise, the witness said that the people of Massachusetts had become all worked up about it. As a result of this plan, the Boston property has been steadily increasing fares until it has finally reached 10 cents. This has resulted in carrying 25 per cent less people and a loss in revenue of $4000 a day. "The act is abortive and a makeshift and is doomed to failure." He thought that "the 5-cent unit fare has got to stand" within the strictly city area. Asked by the commissioners how he would make up the deficit in operating expenses with such a low fare, he said that it should be made up from general taxa- tion. Every one is taxed to make the highways smooth and safe for the automobile. Why should not every one be taxed to make the people's automobile — the street car — safe and comfortable and of greatest service. The street railway is a necessary part of the social and in- dustrial life of any community. The government must take the industry in hand and make the fare as low as possible as one step toward better democracy. There will be a campaign in Massachusetts this fall for the purpose of determining this issue. Governor Coolidge has asked and received permission of the legislature to appoint a special committee to investigate the street railways of the State. Then he expects to call a special session of the Legislature to consider the question of public ovraership and that alone. The Commissioners Ask Pertinent Questions Commissioner Sweet asked Mr. Foss if he had any data or figures or statistics which he used as a basis for his opinion. The governor replied that he had not, but was relying entirely upon his own experience. Fur- ther, he would apply the same reasoning to all public utilities, the steam railways, gas and electric light plants, electric railways, telephone and telegraph in- dustries. Asked further if it would not be a menace to have such a tremendous number of employees under govern- ment control, he replied that this did not need to be a factor for when there is a change of administration the same employees carry on, and there is no particu- lar change in the conduct of the work. When it was suggested by the commissioners that government em- ployees were very poorly paid and that it was, there- fore, impossible to secure as efficient or competent men as it is with private ownership, he replied that gov- "The period of recovery and the restoration of the purchasing power of the dollar depend upon the courage of intellectual men to discuss things as they are." Job Hedges. ernment employes were, as a general thing, underpaid, but that he had never had any difficulty in getting very able men to do the state work in Massachusetts, and he believed that there would always be plenty of pub- lic-spirited men entirely competent who would be glad to serve in the employ of the state. Further, if the people were told the whole truth, he had confidence that they would be willing to provide higher salaries. The trouble has been that the people have been told only half the truth. Speaking of paving charges and various other taxes and imposts which have been assessed against the street railway industry, Mr. Foss said that the electric rail- ways have been attempting to give too much, and that public ownership would adjust all of this. He said that it ought to be adjusted under private ownership, but this could not be done, for it had been tried for years and had proved a failure. The public service commissions do not have courage enough to increase the fares promptly, because the railroads have been wrecked so many times by the bankers that the commissioners know the public will not tolerate the higher fares. The commissioners asked Mr. Foss numerous ques- tions in regard to how he would overcome the difficulties in the way of public ownership, such as the financing of the project, the constitutional limitations existing in many instances, etc. The only remedy Mr. Foss had to offer was government ownership, and in reply to the statement of the commissioners that this would neces- sarily involve great delay, his only reply was, "Go to it now." Later, however, he agreed that pending the work- ing out of the plan and as a temporary expedient that it might be wise to grant a flat-fare increase generally, but that public ownership was the only permanent plan. 234 Electric Railway Journal Vol 54, No. 5 The setback to government ownership which has re- sulted from the government operation of the railroads during the war was referred to by the commissioners in their cross-questioning. Mr. Foss vigorously replied that that was due to propaganda spread from Wall Street and the railroad owners. "The people's minds have got to be disabused of the idea that they have had an example of government ownership." In reply to a question as to whether he thought that the Federal Commission should recommend a general application of public ownership, he replied that it should by all means, and if it would do so "it would be the greatest recommendation in my memory." Commission Regulation Seriously at Fault James L. Quackenbush, counsel for the New York Railways and the Interborough Rapid Transit Co. for the past 15 years, expressed the opinion that decided changes were necessary in order to make the public util- ity laws more effective. Fundamentally, the law in New York is satisfactory, but its administration has been decidedly defective. Mr. Quackenbush referred to the Seeing- smooth sailing aliead, these four live Mid-West execu- tives smile for tlie world despite the gloom pervading the hear- ings. They are B. J. Denman, Richard Schaddelee, Robert I. Todd and Charles L. Henry. recent order of Commissioner Nixon of New York ap- proving a 2-cent charge for transfers as the only com- mission decision in his recollection which has been in the slightest way a benefit to the railways. Instead of carrying out the spirit of the authors of the law that the commission should act as a fair and impartial tri- bunal between the industry and the public, in which it had absolutely failed, it had concerned itself only with the control of the expenditures of the company and with continual orders for increased service. Apparently the commission had never concerned itself with how the company was to get the necessary money to give the service demanded. Nor was it a question of politics, for there had been a great variety of combinations of the two parties in the state during the existence of the public utility act, accompanied by corresponding changes in the personnel of the commission, but there always seemed to be the same motive behind the decisions. Mr. Quackenbush said that the principal reason that the commission form of regulation had failed was that the commissioners had not courageously put a stop to such sentiment as that expressed by Ex-Govemor Foss at the morning session, which Mr. Quackenbush characterized as "stuff and non- sense." He challenged every statement the ex-governor had made as regards the application of municipal or pub- lic ownership of any kind to the New York transporta- tion lines. "They should put a stop to this cheap talk, this buncombe, and the facts should be kept before the people." The up-state New York commission had shovm more disposition to function as it should than the dovra-state, the witness observed. But one of the most serious criti- cisms which Mr. Quackenbush had to make of the utili- ties law administration was the long delay in acting upon petitions. Endeavoring to show what this meant, he said that the New York Railways, now in the hands of a receiver, had issued certificates under the direction of the court in order to make necessary improvements, but owing to the inability of the receiver to secure additional revenue, it now appeared that the receiver would be unable to pay the interest on these certificates and Mr. Quackenbush suggested that it might be neces- sary to appoint a receiver of the receiver. The Financing Problems in New York Mr. Quackenbush then described the detailed situa- tion in New York in connection with much of the financ- ing which has been necessary to build the extended sub- way system, the Manhattan Bridge 3-cent line, and some of the other lines, endeavoring to show the federal com- missioners the attitude of mind taken by the public utility commissioners and the municipal authorities. Commenting upon the manner in which the subway program had been carried out, whereby the commission- ers had aimed to secure competition through the build- ing of another Z-shaped subway, Mr. Quackenbush said that there could be found "no justification for this plan either in finance, economics, railroading or common sense." This resulted in the present dual system of subways, which is now nearing completion and the build- ing of so many railroads in Manhattan that none could possibly pay its interest charges. He then told how the Interborough had raised some $80,000,000 when the city had been unable to finance its projects, and had entered into a contract with the city in good faith with all of the facts fully known by both parties and that now the city authorities had shown a decided tendency toward repudiating their contract if they could find any way so to do. This brought up the subject of the ability of the city to take over the system should it so desire. Mr. Quackenbush stated that neither the city nor the State of New York has any power whatever to finance such a proposition except through an amendment to the con- stitution of the State. This can be brought about only through a constitutional convention or through the ap- proval of two successive legislatures, of which the sec- ond senate must be a new one resulting from a new elec- tion. He estimated then that if the effort was made to put through such an amendment right now, the earliest that it could be expected that the law would be provided would be three years, or 1922. This statement was made as a reply to the earlier remark of Ex-Governor Foss that there need be no particular delay in bringing about public ownership. In presenting the present financial status of the In- terborough company, Mr. Quackenbush made it plain that the only remedy which can solve the present diffi- culties of the company is a blanket increase of fare to 8 cents on the rapid transit lines. Such an increase would August 2, 1919 Electric Railway Journal 235 also necessitate an 8-cent universal fare in New York, to include the surface lines as well, in order that the element of competition would not defeat the purpose of the increase. This might be brought about through an act of the Legislature giving to State Commissioner Nixon the necessary power. This, of course, would en- tail much delay and undoubtedly subsequent litigation. This might be avoided and the fare increase secured if Commissioner Nixon, the local transit commission, and the Board of Estimate and Apportionment would concur in the measure. These three bodies could joint- ly approve the increase without the necessity for any legislation. Mr. Quackenbush then sounded the seriousness of the situation when he said that unless a fare increase is granted so that the credit of the company will be re- stored before Jan. 1, 1920, the company will pass into the hands of a receiver. Had it not been for the as- sistance of the War Finance Corporation last year, the company would not have kept on until this time. Mr. Quackenbush's hope was that the Federal Commission would sound such a clear note of duty to the regulatory authorities generally, that there would be a cessation of the prevailing tendency to starve the electric railway companies. He said that the aim in New York appar- ently was to starve the Interborough to the point that it would surrender its life, but that this could never be done, although it might result easily in the appoint- ment of a receiver who would then proceed to carry out the existing contract under the direction of the court. In concluding that the 8-cent fare would pro- duce the necessary increase in revenue, Mr. Quacken- bush said that ample allowance had been made for the loss in passengers, based on studies made by several prominent engineering firms. What the Commissioner Should Recommend Summing up his talk as to what action the Federal Commission might take which would be helpful in the present emergency, Mr. Quackenbush said that the rec- ommendation of greatest importance would be to point out that it was the duty of the regulatory commissions or local authorities to be courageous in providing the necessary relief, and to determine the proper rate not by ancient history, but by the facts as they now are. The second suggestion offered to the commission effec- tively pictured the gravity of the situation. In the words of the witness, it was this, addressed to the commissioners: "If you are going to do something, by all means hurry up. Put a little oxygen in the patient to keep him up, and then if a major operation seems nec- essary, go to it." Get the public to see that it is to their interests to have the proper rate of fare in force. The interest of the people is the supreme law. If the contracts which were entered into many years ago do not now fit the case, it is to the people's interest to recognize the defects of the old contracts and grant new ones. Concluding his testimony, Mr. Quackenbush reiterat- ed that his criticism was not of the regulatory laws but of the administration of them, and that the opin- ion of the commission, as expressed in its forthcoming recommendations, could be of greatest help in supplying higher authority for the local authorities and commis- sioners, mayors, etc., to base their decision and to do the duty which they feel but hesitate to execute. At this point, Bentley W. Warren, counsel for the electric railways, presented a letter by Thomas A. Edi- son for inclusion in the records. It had been expected that Mr. Edison might appear personally as a witness, but it was impossible for him to come. His letter ap- pears in full elsewhere in this issue. A Former Commissioner Takes the Stand James 0. Carr, formerly a commissioner of the New York up-state commission, was the next witness called to the stand. The theme of Mr. Carr's testimony was that the public utilities commissions should have full power to execute the law, and that their procrastination in act- ing was largely due to the absence of a clear establish- m.ent of their powers. He thought that many commis- sions would be inclined to give aid speedily if free to do so. He also thought that it would be possible for the railways to establish such prima facie cases before the' commission that in a great many instances the lat- ter would be justified in proceeding to grant temporary relief, even without full authority in law. Mr. Carr's testimony carried over into the evening sitting of the commission on Thursday. He expressed the thought then that the appoint- ment of commissioners should be re- moved from politics. Also, municipal ownership could never be successful because of the political aspect of the problem and the continual change in management through the appoint- ment of political friends with each change in party control. Richard Schaddelee, vice-president and general manager. United Light & Railways Company, Grand Rapids, testified verbally that commissioners should be appointed for life, that because they were afraid of losing their jobs, unless financially indepen- dent, they were much more influenced Ex-Governor E. by what they heard from politics N. Foss, the "Go than they were by the opinion of all nTcipal "Slers?.^ the experts in the industry. He also Advocate, confirmed the statement of previous witnesses that great delay was always to be had before a commission would render a decision. He had never secured a decision in less than six months. Mr. Schad- delee also pointed out some of the local situations in Grand Rapids and in cities where his company had prop- erties and endeavored to show that the American people are very just when they know the facts and when these can be told to them without discoloration by politicians. A written statement presented by Mr. Schaddelee ap- pears elsewhere in this issue. H. J. Pierce, Seattle, formerly president International Railway Company, Buffalo, outlined briefly what in his opinion would solve the present difficulties of the in- dustry. His relief would include the continuance of a straight 5-cent fare, the abolition of all transfers and the remission of all taxes. If this program did not sup- ply sufficient relief, he would charge an extra 5-cent fare outside a central zone 3 miles in diameter. He would allow the company 8 per cent on its in- vestment, this capital to be not in any event greater than the reconstruction cost of the property, but in- cluding replacements of obsolescent equipment. All net earnings beyond 8 per cent should go into the city treas- ury. This rate of return would satisfy the require- 236 Electric Railway Journal Vol. 54, No. 5 ments of financing, and the placing of the surplus in the city treasury would have a good influence upon the public. If this plan fails, Mr. Pierce could see no other alter- native but municipal ownership. This he would very much dislike to see take place, for it is un-American. The function of the government is to govern and regu- late, not to operate. He cited the very bad treatment which the public received from employees of the public- owned utilities abroad. F. B. deBerard, director of the Research Bureau of the Merchants' Association of New York, and a member of the committee of the United States Chamber of Com- "The court ordered the jitneys to desist. But do you suppose they desisted. No they in- creased." Richard Schaddelee. merce, which is now studying the electric railway situa- tion, discussed the importance of cheap rapid transit and stated that adequate transportation was absolutely essential to the welfare of a community from the stand- point of health. He also presented an 86-page pamphlet on "Government Ownership and Operation of Public Utilities," which was the report of a special committee of the Merchants' Association of New York. A brief re- view of this pamphlet was presented in the issue of Electric Railway Journal for Feb. 15, 1919, page 337. The Thursday evening sitting was adjourned at this point. Friday's Session At the beginning of the Friday morning hearing. Counselor Warren read into the record a letter by Samuel Insull, which follows in full: CHICAGO ELEVATED RAILWAYS Chicago, 111. July 23, 1919. To THE Federal Electric Railway Commission, Washington, D. C. Gentlemen : The demands for increased wages by the employees of the Chicago Elevated lines (of whose board I am chairman) has produced a serious situation in this city, and as it is im- possible for me to leave to appear before your commission, I should like to set forth briefly the situation in regard to this property which serves (together with the Chicago Sur- face lines) the transportation needs of the second largest city in the United States. The increased cost of operation, due to labor and material, has decreased the earning power to such an extent that the Chicago Elevated lines are barely able to cover the interest charges on the underlying companies. The Chicago Elevated Collateral Trust, which owns the stock of the operating companies, had $14,000,000 notes maturing on July 1, 1919, which could not be refinanced and on which we were unable to meet the interest payment due the same date. The Chicago Elevated lines have been a very important factor in the development of Chicago, and have never earned but a small return on the actual money invested. The rising costs produced by the war have not been offset by an ade- quate increase in fare, although the fare was increased from 5 to 6 cents, going into effect on Nov. 22, 1918. We are faced with the problems of meeting the demands of the men for a further increase in wages and changing working conditions at the present time. The condition which confronts us is illustrative of the electric railway industry throughout the country, the earning power being curtailed to such an extent as to destroy the ability of the companies to obtain money or even maintain the integrity of their present securities. Your commission can, I feel sure, perform a signal serv- ice to the nation as a whole by bringing to the attention of the public the present deplorable conditions obtaining in the industry and by recommending as an immediate meas- ure of relief such increase in fares as will prevent the ruin of this necessary public utility and by recommending a comprehensive plan for readjusting relations between the company and the public on a basis that will secure good service for the public, adequate maintenance of the physical property, and such a return to capital as will attract it into the business. Yours truly, Samuel Insull, Chairman. John H. Pardee, president American Electric Railway Association, then read a formal statement of the situa- tion as applied to the street railways in the smaller cities. The statement follows: A considerable part of the electric railway business in the United States is located in the smaller cities. The conditions governing the operation of these street railways in small cities are in general indentical with those governing operations in larger communities. All sugges- tions made during these hearings for the general relief of the electric railways are applicable to the smaller lines — prompt increase in rates of fare, relief from the unjust burdens and service requirements, prompt action by public authorities on applications of the railway company, co- operation on the part of the public authorities, labor and general public, in the institution of safety cars and other equipment, and methods that will contribute to the solution of the difficulties now being experienced, are urged. There are, however, some inherent differences due to the size of the communities served which make the electric rail- way problems in the small cities particularly difficult. Dis- tances of travel being shorter results in fewer rides per capita of population. Also, in order to compete with other methods of getting about and satisfy demands of the public for frequent service even in outlying sections, it is neces- sary to operate cars on a more frequent schedule than is warranted by the number of passengers to be carried. Un- der the traffic conditions which prevail in small cities, it seems that the one-man car can be operated to particular advantage. Public authorities and the public should recognize the necessity for the elimination of unjust franchise require- ments in order that the fare may be kept within the limit which permits its greatest possible use. Counselor Warren then introduced into the record a copy of the New Hampshire law relating to the exemp- tion of electric railways from taxes. California Roads Are Also Pinched W. E. Creed, legal adviser for the San Francisco-Oak- land Terminal Railways, was the next witness to testify. He reviewed some of the local conditions in connection with the company he represented and stated that it was earning less than 0.5 per cent on the evaluation of the property set up by the public utilities commission, with- out any allowance for depreciation being taken out. The company had to pay a 5 1 per cent state franchise tax on the gross revenue, and this was not the only tax col- lected. If the utility companies have any non-operating property such as real estate, this is taxed in addition. The result has been to throw the burden of taxation upon the larger corporations and remove it from the public. He told the commission that there was little op- portunity to effect further economies in the cost of oper- ating the property, since this was now dovra to bed rock and that the employees were receiving generally low sal- aries and that the executive officers salaries were ridic- ulously low. Mr. Creed also contributed some testimony to the question of contingent reserve and expressed the opinion that the consideration of this subject was one of the most important conditions of the permanent settlement of the electric railway problems. August 2, 1919 Electric Railway Journal 237 Harlow C. Clark, editor of Aera, called to the stand, presented a statement expressing certain recommenda - tions as follows: Mr. Clark's Outline for Relief, in Full "The continued furnishing of efficient and sufficient urban and interurban transportation is a recognized vital necessity of modern community life. It is recog- nized to be a function of the government of each state to provide that such service shall be performed. "Heretofore the custom, with few exceptions, has been that these necessary facilities should be provided by private agencies, with the use of private capital, and subject to such regulations by governmental agen- cies as would insure that the service should be con- tinuous, reasonable, sufficient and efficiently rendered. "To provide service of this character by private capi- tal, it is necessary that the terms and conditions pre- scribed by the authorities shall make such investment safe and enable them to secure a return which will induce private capital to select investment in the utility to such an extent as will provide the necessary funds for capital purposes. Such further return should be allowed as would stimulate the operating utility to the greatest measure of economy, efficiency and initiative and thus insure the development of the art and the maintenance of the public service at the high standard demanded by the American public; otherwise, private capital will elect to seek other investments, the standard of service will be depreciated, the maintenance and improvement of these properties will have to be provided for from state or municipal sources and the deficits in opKeration will have to be made up by taxation or the service permitted to deteriorate and finally termi- nate. As the last alternative is impossible in modern life, the actual question is: "Shall the service be provided by the use of private capital, or by the use of public credit and resources? "As existing laws and conditions in the different states do not make a general adoption of the principle of public ownership or operation feasible at this time, the industry must be conducted by the use of private capital, whatever final policy the public may adopt in this respect. This is feasible if the following sugges- tions for emergency relief and for a permanent plan are followed : "Emergency Relief "Such an immediate temporary increase in the charge for transportation (subject to revision by the subse- quent permanent plan) as is necessary to meet the pres- ent crisis and to prevent that financial disaster which is imminent to a large majority of the companies of the industry. This would maintain the service during the development and formulation of a permanent plan, by which also any suitable revision in such emergency in- crease could be made. "Permanent Plan "A plan for the permanent conduct of the business, under state or municipal regulation, capable of auto- matically adjusting itself from time to time to varying conditions. The machinery for such permanent plan should include: "1. The ascertainment of the amount upon which the enterprise should, in fairness and justice to both the investors and the public, be allowed to earn a return. "2. The establishment by the authorities of a system of charges for service by which rates will automatically increase or decrease above or below the initial rates named in the permanent plan by a defined method and schedule so as to yield at all times sufficient revenue to meet all the payments contemplated by the plan, in- cluding such protective reserves as should be estab- lished; and also sufficient opportunity for participation in benefits resulting from economy, efficiency and initia- tive to induce the greatest efforts by the utility. "3. Power of regulation, either by state or municipal authorities, in respect to all matters affecting conditions and character of service, including extensions, improve- ments and betterments. "4. The utility to be conducted on the so-called indeterminate franchise principle and to be subject to such regulation as may be prescribed by law in re- spect to accounts, to capital investments, and other matters. "5. The establishment of the right of the munici- pality or other governmental agency to purchase, as shall be set forth in the plan, which shall in particular establish the price or the method of ascertaining the price. "G. All special taxes and all special charges and assessments paid by the utility are in fact paid by the car rider, being a part of the cost of transportation. Car riders as a class should not be subjected to such indirect or special taxation and should, so far as the particular circumstances in each community will permit, be relieved therefrom." After reading the above statement, Mr. Clark was very closely questioned by the commissioners, bringing out a number of interesting points. Among these was the statement that if the commission should make it clear in its recommendations that a real crisis exists, it would have a tremendous influence over the country for the good of the railways and the public and would fort- ify men in public positions in making the proper deci- sion. It would also serve to inform some commissions "My humble opinion is that the gentlemen on earth in 1850 knew considerably more than the highbrows that have come around since." Job Hedges. which have assumed that the emergency due to the war was over and have withdrawn their war measures of re- lief, that the emergency has not passed. In questioning about the service-at-cost plan of opera- tion, the commissioners brought out the opinion of the witness that the lifting of rates ought to be simply a matter of arithmetic. If the public knew that its de- mand for increased service would necessarily be accom- panied by an increase in the rate of fare, this knowledge might serve to restrain unreasonable demands. As to whether the paving should be left in under the service- at-cost plan or removed and assessed against the abut- ting property owners, it was stated that the presence of a street car line on any street is not a detriment to the property owners along that street, since it serves to en- hance the value of the property in every instance. Therefore, it is not necessary to place a paving tax upon the car riders, or rather relieve the abutting property owners from it as a recompense for the presence of the car line. The opinion of the witness and the commis- 238 Electric Railway Journal Vol. 54, No. 5 sioners seemed to be that this paving burden should not be placed upon the car riders and that while the service- at-cost plan would provide a fare sufficient to take care of this item of expense should it be left in, yet that this seems to be the proper time to bring- the cost of trans- portation down to the proper basis and wipe the slate clean, so to speak, of all those imposts and items which do not enter into the production of transportation. As to what was the most pressing immediate need of the in- dustry, the witness stated that practically every com- pany was faced with the immediate necessity of a flat increase in fares, and that unless this was provided, "We offered to get off the streets and let the jitneys operate one month, and then they get off and we operate one month, and let the people choose which they wanted." Richard Schaddelee. there would be no use in discussing the permanent remedy. Prof. J. W. Jenks, professor of government research. New York University, was the next witness. He out- lined the general principles of the relations between government and business and pointed out that there should be no conflict between the two, for they were largely made up of the same people looking at the problem from two different angles. His belief was that if the public were given all of the facts that it would be inclined to provide the necessary funds with which to supply good service. Another Opinion on Public Ownership On the subject of public ownership, Professor Jenks said that in the small towns where everyone knows everybody it might work out satisfactorily, but gen- erally, it had been the experience in the United States and in Europe that municipal management was not satis- factory. He said it was impossible to get the same .spirit or interest in the work in public ownership that can be derived from employers with private ownership. It is also impossible to pick or control the employees as well. The great trouble with the civil service sys- tem of this conutry has not been with its ability to get men, but to get rid of them. He said he had worked sometimes three or four months to get rid of men whom he knew even to be dishonest. This, of course, can be done quickly and efficiently with private management. The tremendous work which has been done during the war by government employees has been wonderful, but it has been done without regard to cost. Such a policy could not be allowed to prevail in times of peace. Professor Jenks thought that a great deal of the delay and slow action of the public service commissions has been due to the differences of opinion as to the theory to be applied in determining the proper rate of return, depreciation allowances, evaluation, etc. He thought that the Federal Commission could do a very great service if it could find it possible to recommend a definite basis of computation of these things. A minimum earning upon the utility investment should be assured, with perhaps a division of the profit over that safe amount, with the municipality. He thought that if the city were to derive all of the earn- ings above the fixed guaranteed return, that the railway operators would lose the desirable incentive for economy and increased earnings. Also, if the city shared partly, it was desirable for this would tend to give the city an interest in increasing the profits. In any case, in draw- ing up the contract for the permanent settlement of the transportation difficulties, the terms should be so con- structed as to make the contract self-adapting to the many changing conditions, for this would then avoid such emergencies as the present and bring about the desired service, with less friction and under better con- ditions all around. Professor Jenks advocated the in- determinate franchise giving the privilege to the city to buy, but said that the city should never buy. At this point Counselor Warren put into the record eight letters expressing the views of prominent econ- omists on the question of the probable future price level. The substance of these letters was to the effect that there was no hope for any particular decrease from the present price levels. Several letters were also read into the record dealing with the question of what relief or economies or in- ci'eased revenue might be expected from the use of double deck cars. The opinion expressed in each of these letters from various electric railway managers who have tried out this type of car was that the cars were not in general satisfactory and that they offered no particular assistance in the present emergency. A letter from William B. McKinley, president, Illinois Traction System, was put into the record at this point also." Prof. Conway Urges Seriousness of Situation Dr. Thomas Conway, professor of finance, University of Pennsylvania, was the next witness and his testimony somewhat upset the previous general trend of thought from the electric railway men in two respects. First, it was his opinion that a flat fare higher than 7 cents was more likely to produce a decrease than an increase in revenue. Second, the industry is now face to face with a new phase of the crisis, resulting from the very recent wage settlements in several cities which point very definitely to a new general higher level of wages in the electric railway field. An increase granted by any one company has a much greater effect than indicated, as evidenced by the practical standardization "Put a stop to this cheap talk, this old stuff (about public ownership). The thing to do is not to talk buncombe but to recognize facts." James L. Quackenbush. I of three wage scales for three classes of cities by the War Labor Board. With the thorough organization of the trainmen now in effect, the recent granting of a new high level of wage in several of the principal cities means that the industry will be called upon to take on at least a 25 per cent increase in wages generally. The problem is not, what are the companies to do this fall or this winter, but rather how is this new situation which is upon us now to be met? If the increases of the last few days v/hich include a rate of 60c. in Detroit, Cleveland and Boston, and a demand for 85c. in Chicago, are forerunners of a general new demand, then all of these increases in fares August 2, 1919 Electric Railwat Journal 239 which have been granted will be as inadequate as the rates in effect before. Reflecting on the problem of meeting this increase, Dr. Conway said that the man on the street did not appreciate the extent of the increase in operating costs and that our great problem was to educate him. The average commission opinion does not point out the facts so that the layman can tmderstand them — they are over his head. The commis- sion talks in the language of the court of review, but he believed that it was just as important if not more so that the commission should speak in the homely language which would serve to justify the decision in the minds of the public. Views on the Labor Aspects of the Problem Dr. Conway remarked that it would be highly de- sirable if the unions would appear before the Federal Commission and present their aims so that the com- panies might know how high a hurdle they would have to get over. He said we have got to come to the arrangement whereby labor must take a responsible share in the management of the utilities. We must get away from the feeling which labor now seems to mani- fest that it is dealing with an enemy alien when dealing "with its employer. Labor must be made to realize that there is only a certain amount of money in the business and if it intends to force the industry beyond the point of self support, when it will have to assume municipal employment, that it should at least make this choice -with its eyes open. Reference was made to the large turnover of labor in the street railway industry, which existed before the Avar, as an unhealthy condition. The rate of wage was then undoubtedly too low and it did not hold a good class of men in the employ of the companies. The pendulum was probably now swinging the other way. The witness believed that the industry would eventually profit by attracting and holding a higher class of labor. If the trainman could make $30 to $40 a week, with the seven-day week and year around work, he would be able to earn m.uch more at a lower rate per hour than the brick layer or highly paid skilled laborer. ^ Will the Ten-Cent Fare Be Helpful.? Upon a court evaluation, the Kansas City Railway has recently made application for a 10-cent cash fare with two tickets for 15 cents. The Eastern Massachusetts "The utilities and the commissions are more influenced by the politicians than by the people, because the people in these matters are inartic- ulate, while the politicians are very much ar- ticulate." Richard Schaddelee. Street Railway Company instituted a 10-cent fare on July 1. The Boston system followed shortly thereafter. President Busby, of the Chicago Surface Lines, says that a 9- or 10-cent fare will be necessary to meet the present wage demand there. These rates of fare may indicate a general need for that amount to meet ex- penses while continuing the flat fare system. An in- crease in fare to 6 cents represented no particular difficulty, but when a 10-cent fare is reached, the in- dustry begins to get into deep water. If for a while 10 cents is made the price to solve the problem in the larger cities, it will mean that the small cities will have to collect a corresponding increase and will then not attract enough riders to pay their operating expenses. What the solution is, then, no one knows. In this connection the public utility laws of Pennsyl- vania and Connecticut have one great advantage in that they permit the companies to proceed with the instiga- tion of an increased fare subject to subsequent approval by the commission. The commission cannot suspend this rate of fare unless a complaint is made and fol- lowed by a hearing and inquiry. This same policy should be made somehow to be effective all over the country in order to give the companies freedom of action Speaking of competition — "Jitneys are like lice, while these motor trucks are full grown an- imals." Charles L. Henry. to experiment with different rates of fare and different modes of collection as a means of finding out what is best for the industry. Another problem which the industry faces is the eight-hour working day. Different from any other in- dustry, the electric railway can not in any manner in- crease its production to offset the shorter number of hours in the working day. An eight-hour day in the street railway field means not only the problem of financ- ing the increased wages, but the problem of having more m.en to pay. Its application is very difficult with- out a great loss of man-hours, which makes it necessary to pay for a great deal of labor which is not very productive. An eight-hour day would mean a complete readjust- ment of the working hours and a decided increase in operating expenses. Either two separate sets of men would be required, one for the morning rush hour and another to operate through the evening rush hour, which would be prohibitive in its cost, or else it will be neces- sary to use the same men with spread hours, which is one of the objectionable features in the eyes of labor to this class of employment. Effect of the 7-cent Fare on Number of Riders Dr. Conway then testified regarding the splendid opportunity he had had in connection with the complete study of traffic made on the Public Service Corpora- tion of New Jersey property to determine the effect of the 7-cent fare upon the gross revenue, and to proportion the loss of riders between classes, as deter- mined by the length of ride. The installation of the 7-cent fare on the property, which represented a 40 per cent theoretical increase in revenue, resulted on the Public Service lines in an in- crease of 15 to 16 per cent. But there was a wide diversity in this increase on the various routes of the company, varying from no increase at all or an actual loss in revenue to the opposite extreme where the line earned more than the theoretical 40 per cent. On lines where the length of haul was under 1 mile, not only was there a loss in number of passengers carried, but a loss in revenue. On lines hauling from 1 to 2 miles, there was less loss of passengers and 12 out of 13 lines showed a slight increase in revenue. Where the length of line was from 2 to 3 miles, the results were mixed, due to the varying lengths of rides for different passen- gers and the presence or absence of jitney competition. 240 Electric Railway Journal Vol. 54, No. 5 Where the average ride exceeded li miles some increase in revenue was realized. The loss of passengers on the longer rides was not nearly so great as with the shorter hauls. In general, the 7-cent fare seemed to drive away a large share of those passengers riding under I4 miles, particularly in the cities. In the rural dis- tricts where an equal length of ride was involved, the loss was not so noticeable. The effect of the 7-cent fare on the jitneys in com- petition with the Public Service Railway was to secure for them a 100 per cent increase in traffic by actual count. The jitneys were charging a flat fare of 5 cents. From this study. Dr. Conway drew the conclusion that it was idle to talk about 8, 9 or 10-cent flat fares and that if that were necessary, the companies might as well close up shop. This practically points to the necessity for some other scheme of fare collection which will retain the short haul riders and at the same time pro- duce the increase in revenue necessary. He was satis- fied that the flat fare drives a continually increasing number of people away with increasing fares. Present Problems Most Difficult in the Industry's History Concluding his testimony, Dr. Conway said, "The street railway industry stands at the greatest crisis in its history. The problems now presented are far more serious than those which were faced when the horse cars were abandoned and the unknown field of elec- tricity entered. The problems in that day were purely mechanical. The problems of to-day are far more seri- ous, for they go to the economic basis of the business. It is 110W clearly demonstrated that to endeavor to perpetuate such an unsound basis as the flat fare is an economic fallacy. The entire industry must be reor- ganized and it will require courage and willingness on the part of the electric railway officials and the public service commissions to try experiments and assume the responsibility for possible mistakes, in order to work out the solution of the present problems before neglected maintenance and the failure to keep up with the natural growth of the community by providing new cars and other facilities overwhelms the operating department, destroys public confidence and forecloses the future of the business." Halford Erickson, consulting engineer and formerly a member and chairman of the Wisconsin Railroad Com- mission, presented a written statement to the commis- sion in which he reviewed the principal needs of the industry, pointing out the emergency and the necessity for immediate relief. He recommended the sliding scale fare franchise with state regulation. He pointed out the wholesome stabilizing effect of the service-at-cost permit, for any demand for a wage increase is imme- diately reflected directly to the public in the way of a fare increase. This makes of public opinion a jury which will be as fair to the company as to labor, a condition which does not now obtain. An abstract of Mr. Erickson's formal statement ap- pears elsewhere in this issue. At the conclusion of Mr. Erickson's testimony, an exchange of courtesies between Counselor Warren and Chairman Elmquist was followed by the announcement of the latter that the hearing would be adjourned until Aug. 4. President Pardee Discusses Hearings JOHN H. PARDEE, President of the American Elec- tric Railway Association, was asked last week by a representative of this paper to express his opinion of the hearings. He said: "We are very much indebted to the Federal Electric Railway Commission for giving us every facility for presenting our case. The members of the commission manifested a deep interest in the evidence presented, and to allow us to give all of our testimony held sessions in the evening during the last week. "It is the opinion of the Committee of One Hundred that full evidence on every phase of the situation which is hampering the electric roads has been presented at Washington, and so far as the members of the commit- tee have heard from other railway men, they believe also that the subject has been fully covered. A brief will be presented, summarizing the testimony, but this will be after the hearings have terminated. "The Committee of One Hundred will be represented at the hearings of the Federal Electric Railway Com- mission to be held during the week beginning Aug. 4, and also those during the week be.ginning Aug. 11, and it is just as important for railway men to be in atten- dance at these hearings as when the committee pre- sented its case. It is also the expectation of the sub- committee on information and service to continue the publication of the bulletins giving a digest of the evi- dence presented until all of the evidence is in. This week, two bulletins will be published, containing some comments by the daily press on the hearings and also some testimony not heretofore included. "Beginning next week, the daily issue of the bulle- tin will be rebegun. The edition of each issue of this bulletin has been about 50,000, and it has been sent to railway companies all over the country and to others who have expressed a desire to have it. The com- panies seem well pleased with this service." Commissions Have Failed Properly to Ad- minister the Intent of the Law* By Richard Schaddelee Vice-President and General Manager United Light & Railways Company, Grand Rapids DURING February, 1918, the President, the Sec- retary of State and the Comptroller of the Cur- rency of the United States issued an open letter urging the various rate regulating bodies to give prompt and adequate relief to the utilities under their jurisdiction, where need for relief was reasonably shown. The pri- mary purpose of these appeals by the government was to enable these utilities to function efficiently and ade- quately in response to the enormously increased de- mand for utility service caused by the conditions cre- ated by the war. The Government realized the vast importance of this in its prosecution and winning of the war. Previous to this time the utilities as a whole had patriotically and enthusiastically responded to the de- mands for increased service and facilities, and many had strained their credit to or beyond the breaking point in raising the vast sums needed for additional service, facilities and equipment. The interests of the investors were relegated as of secondary importance *Abstract of statement presented to Federal Electric Railway Commission in Washington, July 24, 1919. August 'Z, 1919 Electric Railway Journal 241 to the winning of the war and to patriotic duty. Yet as an example of the treatment received from the reg- ulatory commissions, the following is typical. In August, 1918, a street car company filed with a state commission a rate schedule providing for a 7- cent car fare to replace the existing 5-cent fare. After a so-called valuation of the visible physical assets of the company by the engineers, a long drawn out audit of the books by the auditors and after several hearings, the commission finally decided, on July 9, 1919, that the company did not need relief. Thus the idea of this com- mission of promptness is a decision in one year's time from the filing of the application, and its idea of ade- quate relief is no relief at all. This is given merely as a very recent illustration of the failure of some com- missions to be responsive to national emergencies. The failure of commissions and other rate regulating bodies properly to function is, in my opinion, due to the personnel of these commissions, their manner of ap- pointment and the influences they are subject to, much more than to the laws themselves. The object of the people in passing these laws through the legislatures of the various states was to insure the public good and adequate service at rates reasonable and fair to both the customers of, and the investors in, these util- ities. Ultimately, a fare that is not adequate or fair to the utility, is not fair or adequate to the public, for the reason that an inadequate fare will result in inade- quate service and facilities. I am sure that the American people desire that the utilities serving them shall be empowered to collect a charge or fare that will enable them to earn their fair and reasonable operating expenses, taxes, depreciation, etc., and in addition a sufficient rate of net return on their investment to make the investment in street rail- ways attractive to the investor. Of all the factors to which the present critical condi- tion of the electric lines have been attributed, there is only one against w^hich the commissions cannot afford us protection. This single exception is the competition of the private automobile. And this factor is the one that, in my opinion, is least responsible for our critical illness. The automobile has fastened the riding habit on the public, has accustomed it to rapid transit and thus has been rather beneficial to us than otherwise. The elec- tric lines with which I am connected or have knowledge of are collecting more fares now than ever before. Our gross business is very satisfactory and will continue to increase if we receive enough money to restore our credit with the investors. The electric railways are not sick and will not die by reason of being economically obsolete, or superannu- ated, nor by reason of natural decay. If these were the causes of our illness, or if we were threatened by extinction by a superior mode of locomotion that can perform our functions under the same restrictions as to fares, and under the same requirements as to serv- ice, taxes, etc., then in that case it would be useless to ask or request for relief. For no private interests can successfully resist real economic evolution. Electric railways are now more necessary to, and en- ter more intimately into, the social and industrial life of our urban, suburban and interurban population than ever before, even if a small percentage of this popula- tion is not now as exclusively dependent upon electric railway transportation as it was ten or twenty years ago. The automobile has been a great factor in relieving congestion in cities by encouraging suburban residence. People who live in the suburbs feel that the automobile makes them independent of the electric lines, yet they will use them habitually, using their car or our cars as their convenience or caprice dictates. Our present criti- cal illness is entirely by reason of an artificial cause, and that is insufficient financial nourishment. Regulatory Bodies Have Been Dilatory I am sure that your commission is convinced that these state commissions as a whole have wholly failed to live up to expectations and the intent of the people in establishing them. Inasmuch as they were given un- limited authority, they must now assume full respon- sibility for their failure. The failure of the commissions to function effectively is due to many and widely different causes. The main reason for the failure of the commissions to function effectively is the fact that they have not been immune from political influence as the people expected they would be. This summer, in at least two states, to my personal knowledge, numerous bills were introduced either to abolish these commissions or otherwise greatly to cur- tail their power. In one state the commissioners were compelled to defend themselves against the most ridic- ulous charges prepared against them by municipal of- ficials and contemptible, self-seeking politicians. The mayor of one city bitterly and unjustly attacked the commissioners, and then sought re-election as mayor shortly afterward, appealing to the people to vote for him and he would see to it that the commission would be abolished, that car fares would not be raised, etc. In the primaries this man was snowed under, being the low man of three candidates, which indicates how the people feel about these matters. These commissioners are but human. As a rule they like to retain their positions, and under the conditions cited they cannot be expected to make purely judicial decisions without fear or favor. If they are to func- tion effectively, they must be absolutely removed from political influence and they must be secure in their ten- ure of office as long as they execute their duties ably, justly and fearlessly. Under present conditions the commi.^sioners have no backbone, they have no courage, they are not free agents. They are much more influenced by what the local politicians and officials tell them than by what the people are thinking. They hear the words of de- signing politicians, but they do not know what the people are thinking. The local politicians themselves are usually entirely wrong as to what the people desire in these matters, as they are much more influenced by what fifty people tell them than by what fifty thousand people do not tell them. The commissions show by their actions and decisions that they are consciously or unconsciously dominated by the theory that their duties are much more largely to- ward the people than toward the company and that the people established them mainly as rate reducing bodies instead of rate regulating bodies. Rate increases were practically unknown before the war and the habit of reducing rates like other habits is not easy to break. Rate reductions have been made with more alacrity than rate increases. Reduced rates are put in effect for indefinite periods. Rate increases are authorized 242 Electric Railway Journal Vol. 54, No. 5 for one year or for 6 months, and the companies are required to file quarterly or monthly statements with the commissions and with the municipalities, so that as soon as the company shows its head above water, a prop- erly administered kick will again submerge it. These conditions have paralyzed all incentive to econ- omy in the utility business, and no staple financial con- ditions can be created until they are remedied. The biggest handicap to a utility is to appear before a utility commission with a record and data showing effective operation and careful, economical management. The result is verbal commendation, but the establishment of a lower rate than is allowed another company not so well operated or managed. There is really now no incentive to economy, nor any incentive to expend effort and money to stimulate ex- pansion of the business. If money is spent in improved equipment to effect material economies in operation, and thus increase your rate of return over the six per cent or seven per cent allowed you, the commission will eventually confiscate this excess and maybe more and will also confiscate part of the capital you have invested to procure these economies, fixing a so-called depreciated value on the property representing this capital. In applications for increased fares or rates the com- missions examine too much in the past and not enough in the future or present. They are willing to base their decisions on anticipated decreases in the cost of labor and material, but never on anticipated increases in the cost of these items. Neither the state commissions nor the War Labor Board understand that there is a physical law which is also an economic law, viz.: that the total outgo can- not be in excess of the income. That is the reason we denied the right of the War Labor Board to fLx the wages we should pay unless it or some other authority could at the same time regulate our income to enable us to pay the increased wages. Yet my sympathies are all with our workingmen. They have been and are now in the same position as we are, or nearly so. The local authorities and the commissions must be made to realize that if they withhold prompt and ade- quate relief from us, they are also withholding prompt and adequate relief from our workingmen and all of our employees. They must be made to realize that commodity prices have not yet reached the top, and that, under our eco- nomic system, the price of labor follows the upward trend of commodities and does not precede it, while on the downward trend the reverse is true. So we are facing increases in the cost of labor; labor must have and is entitled to increases, and both the people and their representatives, as well as labor itself, must rec- ognize that the real employers who must pay these in- creased wages are the patrons of these utilities. The fact that a commission decides that a 6 per cent or 7 per cent investment is reasonable does not compel an investor to accept that view and cause him to invest his money on that basis. Commissions have apparently acted on that theory. Neither the commissions, nor the legislatures, nor Congress, nor the President can compel the flow of capital in directions where capital does not desire to go. This is also an economic law that the commissions must take cognizance of and act upon. The solution of our problem lies in the establishment of mutual confi- dence between, not only the people and the utilities, but also between the commissions and the people. The spirit of mutual confidence must pervade the relations of all these three parties. If both the companies and the commissions will cul- tivate closer relations with the people and take them into their confidence, our problems will be finally solved and solved right. I have great confidence in the common people and their high sense of justice and fair play, but very little in the political demogogues that infest every com- m.unity. Where there is real antagonism on the part of the people against the utilities, the blame can be put usually on political demagogues or on the companies themselves, or both. The politicians, demagogues and newspapers often succeed in inciting hostility against certain utilities, when there is no real reason for such hostility. This is because they talk to the people very much, and the utilities talk to the people very little. Financing, State vs. Local Regulation and Service-at-Cost Plan* By Halford Erickson AFTER covering in a very thorough manner the history of development of the industry and the conditions which have placed it in its present financial predicament, the author gets into the subject of what are the costs involved in determining a proper rate of return. On this he has to say in part: "A living wage in any industry consists of earnings that are high enough to attract all the capital and all other factors of production that are required in the business. In the street railway and public utility fields this means that under normal conditions the earnings must be high enough to yield reasonable returns for the operating expenses including taxes, depreciation, and interest and profit on the fair value of the plant and the business. "Reasonable returns are represented by fair prices for all the labor, services, materials, supplies, and other things that are needed as well as by fair prices for the capital employed and for the enterpriser or employer." Taking up the question of what is required in order to attract capital to the electric railway field, the author writes : "The fact that investment securities must be pro- tected by more property than their par value and by much greater net earnings than the ordinary interest and dividend charges shows : "1. That the cost of capital is represented by the amount of the net earnings that are required in order that the securities which thus represent the capital may sell on the ordinary investment or income basis, and "2. That the rates charged by a utility for the serv- ice it furnishes must in the long run be high enough to yield such net earnings." This is followed by an outline of the investment con- ditions in these respects which prevailed for several years prior to the war; after which the cost of obtain- ing capital for public utilities during this period is illustrated. "Twelve representative, 20 to 30-year, first mortgage bond issues covering gas, electric and street railway ♦Abstract of statement presented to Federal Electric Railway Commission in Washington, July 25, 1919. August 2, 1919 Electric Railway Journal plants brought out before the war and bearing interest at the rate of 5 per cent, were placed on the market at prices under which they yielded the investors from something over 5i per cent to more than 6 per cent. The cost to the issuing companies, when discounts, com- missions and other expenses averaging about 7 per cent are included, amounted to about 6^ per cent. These issues did not cover more than about one-half of the book values of the property and were protected by net earnings that averaged considerably more than twice as much as the amounts required for interest on the bonds. "During the same period fifteen, 25 to 30-year, repre- sentative second mortgage bonds covering similar prop- erties bearing rates at 5 and 6 per cent were offered at prices which would net investors about 6.7 per cent. On these bonds the accounts and selling expenses amounted to about 8 per cent on the par value of the bonds. These costs when pro-rated on the life of the bonds brought the cost of the capital to the utilities up to over 7 per cent. These issues were protected by half again as much prop- erty as their par value and by net earnings that amounted to about twice as much as the interest charges. "The situation with respect to older issues is about as follows: A group of 27 five per cent first mortgage bonds, most of which are underlying liens upon the whole property and all of which are underlying liens upon at least a part of the property were taken in the 1916 markets by investors at prices upon which the ap- proximate yield was 54 per cent. There was outstand- ing about $170,000,000 of these securities, back of which stood a book value of nearly $420,000,000. It is clearly indicated by these figures that these issues cover much less than one-half of the book value of the properties. Net earnings available for these issues amounted to over $27,500,000, of which sum only $10,- 320,000 was absorbed by interest and sinking fund charges leaving an excess for safety of $17,180,000. Interest charges on these bonds were thus earned 2.7 times over and the margin of safety was 63 per cent. "A small group of long term 4 per cent bonds whose security is rated highly were similarly demanded by investors at a price to yield approximately 5.09 per cent. The average income available annually for the past five years was three times the interest requirements. "Another group of about forty utility bond issues, pro- tected on the average by not far from twice as much property and earnings as the face value of the bonds and the interest charges thereon, have sold at prices on which the yield averaged over 6 per cent. The cost to the utilities, however, when all discounts, commis- sions, outlays and deductions of about 8 per cent are included, increased these figures considerably, or to about 7 per cent. "A group of eleven collateral trust securities, eight bearing 5 per cent interest, two bearing 4 per cent, were issued to the extent of nearly $120,000,000. The security of these issues is rated high (by Moody). These issues yield approximately 5.84 per cent on an average price, and the interest is covered three times by the income available on a five-year average basis. "A groat many five-year note issues have of late years been offered at prices which would yield investors from 5 to 7.5 per cent. In many of these cases the issues bear interest at 6 per cent. The discounts and other ex- penses amounting to about 10 per cent make the cost to the utilities in practically all cases more than Si per cent per annum. Many such note issues were undertaken for the purpose of postponing comprehensive refinancing plans to a time when long time securities would find a market, and when it is expected that the money market will be easier so that permanent long time mortgages or bonds could be offered at a less financial sacrifice. "Several preferred stocks protected by ample assets and by net earnings amounting to from 10 to 30 per cent thereon have sold at prices on which they yielded from a little less than 7 per cent to about 8 per cent. With discounts and other expenses, the capital obtained on these issues cost the utilities at least one per cent more than this. Twenty-nine preferred stocks amounting to about $170,000,000, protected by earnings that amounted to 2} times the ordinary direct dividend charges sold on a 7 per cent to an 8 per cent income basis. "The public utility securities which have thus far been discussed belong in large part to those large utilities which are fairly well known and for whose securities there is a fairly well developed market. They represent the leading listed and unlisted securities in all stock ex- changes and prominent markets upon which reliable data can be secured. They are mainly of an active class, although some are included, which, though somewhat in- active, are of proven worth. "All of these facts clearly show that for several years up to the earlier years of the war, the utilities could not obtain all the capital they needed on normal terms and conditions unless the net earnings for returns on the in- vestment amounted to at least 8 per cent on the fair value of the plant and the business. "These facts show further that during the same years the net earnings for returns did not on the average amount to much more than about half of this or to only about 4 per cent. "It is further disclosed that the unsatisfactory con- ditions in which the street railways found themselves at the beginning of the war have steadily grown worse since then. During the past two years they have earned but little more than enough to cover the operating ex- penses. "It is clear to all that this is a situation that cannot last. No one will continue to render service at a loss. Unless the street railways are allowed to earn reason- able returns the service is certain to become so bad as to be unbearable. The choice therefore lies between good service at reasonable rates and poor service that is gradually growing worse at the existing rates. As good street car service is indispensable in all growing cities the choice is plain." Local Versus State Commissions Concluding from this that the electric railways must have assistance, since they are precluded from helping themselves because of the various regulatory limita- tions, the author urges that full authority be delegated to state or local commissions to deal with the situation. He then treats at some length upon the relative merits of local and state commissions, his thoughts being fairly completely summed up in the following: "Experience has taught us that the problems of regu- lation are so complex in their nature, so far reaching in their effect, so persistent in their tendencies that they cannot be successfully handled by any but the strongest and best equipped commissions. Such commissions should be backed up by comprehensive laws 244 Electric Railway Journal Vol. 54, No. 5 and a strong government as well as by adequate appro- priations. Less well equipped departments than this will not be able properly to cope with the work. Poorly equipped departments may cause more harm than good. For, lacking the necessary information, their orders are likely to go either too far or else not far enough, and in these and other ways seriously disturb many sensi- tive industrial and commercial relations. "This work can be carried on much more cheaply and much more effectively on a large scale by the state, than on a small scale by each local unit or city. The state can employ service experts, appraisers, account- ants, statisticians and other assistants at moderate sal- aries and keep them constantly employed. None but the largest cities can very well do or afford this. Most of the cities feel they cannot afford even occassional ser- vice of such experts. The state has broad powers and wide jurisdiction. The information it obtains covers large areas and many plants, and so do the uniform practices and rules which it puts into effect and en- forces. Its powers are state wide. The activities of the city on the other hand cannot extend beyond the city limits. Its powers therefore are limited, the in- formation it can obtain is restricted, and so are the rules it can put into effect and enforce. It is in its very nature debarred from doing and seeking most of those things which are essential to effective regulation, economically administered. "As local units have nothing to say beyond their boundaries, many utilities would have to be regulated by as many bodies as the units they serve if the local principle of control should be carried out. This would obviously be so impracticable that even the most ardent supporters of local control shrink from advocating it. "A state commission, on the other hand, not only has the necessary jurisdiction over each of the units served, but it is in position to view the situation in a much broader light, and is better equipped for such regu- lation from every other point of view than local units. "It is often said that the regulation of municipal utilities through a state commission is undemocratic and deprives the people of power which is theirs by right. This charge is baseless. All power of govern- ment and consequently of regulation is vested in the state. The city is simply a creature of the state, given certain powers for the purpose of aiding the state in its functions. Can anyone truthfully say that a city coun- cil is more democratic than a state legislature? Both are elected by the people and responsible for their acts to the people. "In thus considering the source and nature of regula- tion, the character and scope of the work involved therein, the cost of property administering it, the equipment that is necessary to that end, the jurisdic- tion required, past experience in these matters, and other conditions, the conclusion would seem inevitable that from the point of view of public interest, state regulation is better and more advantageous than local control." How Shall the Remedial Work Proceed? Assuming that all needed power to cope with the problems of relief are supplied to state commissions, the author proceeds to a discussion of how this relief can be administered. He points out that the usual program followed by commissions in rate cases involves necessarily great delay before all the considerations can be thoroughly taken into account and is hence too slow for the present emergency. In order to avoid such delays he suggests that: "The order of the commission might go far enough to provide for a so-called sliding scale of rates which rates would automatically change with changes in the cost of the service. When the operating expenses increased so as to leave less for depreciation and interest than the amount determined upon, the rates would go up. When the operating expenses fell so as to leave more for depreciation and interest than the amounts de- termined upon for these purposes the rates would move downward. Such rates would represent true cost of service. The rates first established in this manner would cover the cost of the service as it stood at the time. "Such sliding scale rates if fairly applied would auto- matically and fairly meet all necessary changes in the cost of operation, whether these changes were brought about by changes in the prices of labor and material or by additions to the plant and the amount of business obtained from new extensions of the lines. Such an arrangement further would relieve the commissions from at least a part of their work, the controversies and other complications that are certain to arise in connection with all rate changes that are made under prevailing methods. It would operate promptly as well as automatically and would therefore prevent many un- just and embarrassing delays. Through proper ex- aminations and supervision of the accounts, records and practices, such sliding scale, service-at-cost rate arrangements can also be equitably applied without any material increases in the cost of regulation. "The additional amount of work involved in so ex- tending and broadening the orders of the commission is not great. This extra work would largely consist of determining how much the rates should be changed at each step. With zone fares and ticket systems this extra work would also have to be extended to cover the form of the rate schedules or the proportion in which each specific rate or part of a rate should be effected by the change in the cost. This extra work might also have to include a somewhat closer supervision over the accounts, records of the plants, and over certain other practices and rules than would otherwise be necessary. Such work as this however, the commissions are al- ready equipped for doing. "It is obvious that service-at-cost rates may offer many advantages. Such arrangements, if carefully entered into and strictly complied with, would greatly reduce the risks involved in the business and therefore tend to lower the cost at which capital can be had. When once fully understood and entered into it is also likely that such agreements would be more cheerfully com- plied with than is the case with agreements and orders in which sliding scale provisions of this kind are not included." The Youngstown & Suburban Railway, Youngstown, Ohio, which operates between Youngstown and Lee- tonia, some months ago installed coasting recorders on its cars. Before the recorders were installed, the con- sumption was 5.66 kw.-hr. per car-mile. In the first month afterward this was reduced by 10.06 per cert and in the second month by 14.31. When the latest report was received the coasting time amounted to 41 per cent of the total. August 2, 1919 Electric Railway journal 245 American Association News Demands for Exhibit Space Already 51,000 Sq.Ft. Has Been Leased— Big Meeting Expected SECRETARY BURRITT announced on July 29 that 51,000 sq. ft. of exhibit space at the October con- vention has already been leased. This insures the suc- cess of the meeting, as in 1916 the total amount of exhibit space taken was 57,000. The exhibit commit- tee expects to lease more than 6,000 sq. ft. of space be- fore October and thus exceed the 1916 figure. Member Companies Which, to July 26, Have Been Assigned Space for the 1919 Convention American Abrasive Metals Company American Brake Shoe & Foundry Company American Car & Foundry Company American Steel Foundries Albert & J. M. Anderson Manufacturing Company E. C. Atkins & Company, Inc. Atlantic Hand Brake Corpo- ration Baldwin Locomotive Works Bethlehem' Steel Company The J. G. Brill Company The Buda Company Carnegie Steel Company Cheatham Electric Switching Device Company Chicago Pneumatic Tool Com- pany Chicago Varnish Company Consolidated Car Fender Company Consolidated Car-Heating Company Curtain Supply Company Drew Electric & Manufactur- ing Company Duff Manufacturing Com- pany Dunbar Manufacturing Com- pany DuPont Fabrikoid Company O. M. Edwards Company, Inc. Edgewater Steel Company Electric Railway Improve- ment Company Electric Railway Journal Electric Service Supplies Company Electric Traction The Ellcon Company Galena-Signal Oil Company General Electric Company Globe Ticket Company Gold Car Heating & Lighting Company Griffin Wheel Company Hale & Kilburn Corporation Hauck Manufacturing Com- pany Heywood Brothers & Wake- field Company Hubbard & Company Indianapolis Switch & Frog Company Ingersoll-Rand Company International Register Com- pany International Steel Tie Com- pany Irving Iron Works Company Jefferey-DeWitt Insulator Company H. W. Johns-Manville Com- pany Lincoln Bonding Company Locomotive Superheater Com- pany Lorain Steel Company Marlin-Rockwell Corporation Metal & Thermit Corporation Midvale Steel & Ordnance Company More-Jones Brass & Metal Company Nachod Signal Company, Inc. National Brake Company, Inc. National Car Wheel Company National Lock Washer Com- pany National Pneumatic Company Newman Clock Company, Inc. R. D. Nuttall Company Ohio Brass Company Ohmer Fare Register Com- pany The Okonite Company Oxweld Acetylene Company The Pantasote Company Perey Manufacturing Com- pany, Inc. Pratt & Lambert, Inc. The Q. & C. Company The Rail Joint Company Railway Improvement Com- pany Railway Materials Company Railway Track-work Com- pany Railway Utility Company Reade Manufacturing Com- pany Rooke Automatic Register Company Safety Car Devices Company Safety Nut & Bolt Company Schutte & Koerting Company Shanklin Equipment Com- pany Sherwin-Williams Company Simmons-Boardman Publish- ing Company Peter Smith Heater Company Standard UndergTound Cable Company Star Brass Works Taylor Electric Truck Com- pany Templeton, Kenly & Com- pany, Ltd. Thayer & Company, Inc. Trigger Lock Reversible Controller Finger Trolley Supply Company Tubular Woven Fabric Com- pany Tuco Products Corporation United States Graphite Com- pany Universal Lubricating Com- pany Western Electric Company, Inc. Westinghouse Electric & Manufacturing Company Wm. Wharton Jr. & Com- pany, Inc. Wheel Truing Brake Shoe Company The White Company Wilson-Imperial Company Ticket Issuing" Machine for Fare Collection Detailed Description of a Machine Which Is In- tended for Prepayment or Postpayment Zone System of Fare Collection ANEW type of ticket-issuing machine has just been perfected by J. F. Hibner of the Automatic Cashier Corporation, Brooklyn, N. Y. It provides for issu- ing and cancelling tickets to meet the conditions en- countered in prepayment and postpayment zone systems. The accompanying illustration shows a machine built for a five-zone prepayment system. It provides for five rolls of tic- kets, with the dif- f e r e n t denomina- tions of fare that would be necessary to be collected for the complete route. The rolls of tickets are supported under- 1 % neath the ticket-is- 1 i M suing mechanism, and the passenger, on paying his fare, receives the ticket through a slot at the front of the machine. To issue the tickets the conductor pres- ses a lever, and this operation automatically stamps the number of the zone on the ticket issued. There is a cylinder in the machine which carries the several zone numbers, and is controlled by a lever on the back. As a new zone is entered, the cylinder is changed by the conductor by the movement of the lever, so that the punching on the ticket will corre- spond to the number of the zone in which the car is operating. The mechanism cannot be reversed or set back. This cylinder perforates the printed tickets, so that at each issue of a ticket the zone number is TICKET ISSUING' AND CANCELING DEVICE FOR VARIOUS SYS- TEMS OP PARE COL- LECTION 246 Electric Railway Journal Vol. 54, No. 5 punched automatically, providing a positive record of every transaction. In addition each trip is registered. The tickets are numbered consecutively, each roll having a different series of numbers. With the prepayment system a ticket indicating the zone and the amount paid by the passenger is issued when the car is boarded, and as the passengers leave the car the tickets are collected by the conductor and canceled by the same machine. This canceling is accom- plished by inserting the tickets in a slot and operating a canceling lever. The number of the zone which is punched on the ticket in the canceling operation will be the same as for the tickets issued in that zone. For a postpayment system of fare collection only a single roll of tickets is necessary, and the machine can be operated either by the conductor or the passenger. The pressure of a lever issues a ticket indicating the zone in which the car was boarded, and the passenger delivers the ticket to the conductor at his destina- tion. The conductor cancels the ticket by inserting it in the machine and charges the passenger for the ride as indicated from the point of destination. P'or front-entrance and rear-exit cars, the issuing part of the mechanism is set at the front of the car and the canceling mechanism in the rear. Both are connected and interlocked so that they work as a unit. Springfield Street Railway Starts Energy-Saving Campaign ON JUNE 1, after a preliminary study of the energy- consumption per car-mile on the property as a whole, the Springfield (Mass. ) Street Railway inaugurated a comprehensive energy-saving campaign with the aid of power-saving recorders. The 225 cars which the company has in active service were equipped with this device. Its inventor, William Arthur, New Haven, Conn., was engaged to act in an organizing capacity in co- operation with the company officials. He is giving general supervision to the details of record keeping and instructional methods used. SPRINGFIELD STREET RAILWAY CO. ALL DIVISIONS GENERAL ORDER NO. 18 ISSUED JUNE 1, 1919 EFFECTIVE JUNE 1, 1919 TO MOTORMEN AND CONDUCTORS:— The cost of every item used in operation of the Street Railway has gone up, electricity, wages, materials and in fact everything, yet the public pays only a little more for a ride than it did years ago. It is then necessary to further economize in every department. One of the chief items of expense is the electricity Used CO run and heat the cars. When we save electricity we save money. How can electricity be saved? The way to save electricity is to coast more, using good judgment in starting and stopping the cars, in order to give more time for coasting. If vou save only four seconds by notching up a little quicker than usual and you save another four seconds by using good judgment in applying the brakes and then if the conductor saves two seconds in giving the starting signal promptly, that will make a total of ten seconds saved per stop. This will enable you to' coast for ten seconds longer than before and yet run on time. All the time the car is coasting you are saving power. ^ _ This dO£.5 not memlhat y^OiLskould sjd^jiotches and_sgin^ Preliminary to the campaign a small folder was is- sued to the motormen and conductors, containing gen- eral order No. 18, relative to energy saving. This was signed by H. M. Flanders, general manager. It directs attention to the extreme need for economy confronting electric railways everywhere and explains the company's plan for encouraging it on the local prop- erty. It states that cash prizes of from $2 to $5 are to be awarded every three months to the motormen on each line on a basis of the record made. It will be possible for from 60 per cent to 70 per cent of the motormen to participate in these prizes. The issuance of the circular was followed by a meeting, to which all motormen, conductors, inspectors and others interested were invited. The subject of efficient car operation was explained and other matters affecting the repair and inspection department were also taken up. C. V. Wood, president of the company, arranged for a similar illustrated talk to be given before the Springfield Rotary Club. New Window Sash Brake Device THE device shown in has just been placed Edwards Company, Inc., m COilPRESSION BRAKE DEVICE AND STOP FOR WINDOW SASH The Philadelphia Rapid Transit Company lias pur- cliased 72.000 of these de- vices for cars being recon- structed on its system. the same time holds the stop when the window is the accompanying illustration on the market by the O. M. Syracuse, N. Y., for retarding the downward movement of car window sashes. As in- dicated in the illustration there are two springs of dif- ferent strengths with the heavy spring at the top of the device. In raising the sash, a movable shoe slides to the bottom due to the fric- tion on the window casing and compresses the weaker spring. This allows the sash to be raised readily and at the same time prevents all rattle. In lowering the sash, the shoe automatically slides to the top and compresses the heavy spring. This in- creased pressure gives suf- ficient friction to prevent the sash from falling, and at sash firmly against the outer closed. PART OF FIRST PAGE OF FOLDER USED IN ENERGY-SAVING CAMPAIGN New Type of Headlight Switch A new headlight switch has just been placed on the market by the C.rouse-Hinds Co., New York. This is provided with "Off," "Permanent Dim," "Temporary Dim," and "Full Glow" positions. The switch is self- contained and dust tight. In turning the switch off, the "Dim" position is reached before the "Full Glow" position. This gives the lamp filament a chance to heat up before full current is passed through it. The "Temporary Dim" position is provided for use in passing other cars or when picking up signals. The motorman holds the switch handle in the "Temporary Dim" position until he has passed the other car or signals, when, by releasing the handle, the switch auto- matically snaps back to "Full Glow" position. August 2, 1919 Electric Railway Journal 247 Recent Happenings in Great Britain Inquiry Into London Traffic — 100 New Cars for District Railway — Glasgow Has Semi-Jubilee (Prom Oxr Rrgu, The outstanding feature of the month of June in traction matters was the inquiry conducted by a select committee of the House of Commons into the problem of congestion in Lon- don passenger transport. Many wit- nesses have been examined and a mass of statistical and other facts has been produced. The first branch of evidence was that of leading officers of the Met- ropolitan Police who produced figures and information as to the volume of general street traffic. They had, how- ever, no suggestions of importance in the way of remedy. Traffic Board Suggested An important witness who followed was Sir Lynden Macassey, secretary of Royal Commission which in 1905 recom- mended the formation of a traffic board for the whole of Greater London. He adhered to the view that in such a board, armed with full powers, lies the solution of many of the difficulties. It was noteworthy that many other wit- nesses agreed that such an authority should be set up. Evidence was next heard on behalf of London County Council Tramways, where the difficulties encountered by the undertaking owing to the war were set forth. Hostile questions were put to the witnesses as to the great increases of tramcar fares, but the witnesses maintained that the increases are nec- essary to meet the higher expenses. Many of the fares have been increased 100 per cent, but the working expenses have increased by more than that, and the immediate prospect points to 15d. per car-mile or more. Although the fares have been in- increased, they do not reach the sta- tutory maximum of Id. per mile. The inference to be drawn is that before the war the fares were too low, and this is in fact self-evident because it was not possible to put aside sufficient allowances for reserve, renewals, and depreciation. It was also brought out that the County Council has plenty of cars if it could only get the labor and materials to put them all in repair. Average Fare Increase 33 Per Cent A great deal of interesting evidence was afterwards given by representa- tives of the "Combine" which owns the underground railways and the London General Omnibus Company. In 1913 the average receipts per passenger w^ere 1.47d. while in 1918, owing to increased fares, they were 1.83d. The average rate of dividend in the same period rose from 3.18 per cent to 3.59 per cent. The combine did not object to having a traffic board. The average increase in fares had been 33 per cent. The length of journey for a penny varied from a mile to a mile and a half. In regard to motor omnibuses, the pre-war cost of a vehicle of this sort lar Corrrspoii(l( lit I was £682, while now it is £1,170. These were the prices of the associ- ated manufacturing companies, but new railway cars had to be purchased outside and prices in that case had increased by 200 per cent. Five hun- dred new buses are to be built with lower floors and seating accommoda- tion for forty-six passengers each in- stead of thirty-four. The doors will be wider so as to allow passengers to get on and off simultaneously. An account was given of improve- ments contemplated on the under- ground railways, including the pur- chase of 100 new cars for the Metro- politan District Railway. The motor cars will have eight doors and the trailer cars six, so as to reduce time of loading and unloading. It was also brought out that the military lorries now being used as omnibuses to di- minish congestion were being worked at a loss of 30s. a day each. In regard to railway extensions, some witnesses put forward the consideration that be- sides the difficulty of the high cost of labor and materials, companies are deterred through uncertainty as to the future owing to the prevalent talk about nationalization. Government Issues Fare Report Apart from the evidence presented to the Parliamentary committee, an independent report of the fares and expenses of the London General Om- nibus Company has been issued as a government paper. From this it ap- pears that the working expenses have increased from 7. Id. per mile-run in 1913 to 14.05d. in 1918. The report finds that the increased fares are fully justified by the increased working costs. On July 1 the Glasgow Corporation Tramway undertaking celebrated its semi-jubilee, the Town Council having taken over the railway from the origi- nal company on July 1, 1894. It is well known in America that the busi- ness is one of the most successful mu- nicipal tramway undertakings in the world. As ample details of the system were recently published in the Elec- tric Railway Journal, it may be suf- ficient to say that during the twenty- five years 64 miles of track have grown to nearly 200. Electrification was com- pleted in 1901. The capital debt was paid off more than a year ago. The Glasgow tramway accounts for the year ended May 31, 1919, show some interesting results, and the tre- mendous effect of the increased work- ing expenses is brought out. The sur- plus to be handed over to the "Common Good" is only £14,772, as compared with £177,552 at the end of the previous year. The total receipts were £1,531,- 319 against £1,412,635, but the expendi- ture came to £1,249,998 against £1,044,- 183. The great increases in cost were in materials and wages. In disposing of the surplus, £183,543 is allotted to the renewals and depreciation fund compared with £123,894, but the in- crease allowance is regarded as none too large in view of the high prices and wages, not to mention arrears of maintenance. It is after this and all other net revenue account allowances that the net sum mentioned above for the "Common Good" remains. If in- terest and sinking fund charges had still been going on, the balance, if the same net revenue account allowances had been made, would have been badly on the wrong side. Edinburgh Takes Over Railway The Town Council of Edinburgh took over its tramway system on July 1. The property has been owned by the Corporation since 1893, but has been worked on lease by a private company. The corporation v/ill as socn as possible convert the undertaking from cable to electric traction. The valuation is £1,507,000 and the outstanding capital indebtedness £470,000. When the change-over has been completed the only cable railways left in Great Britain will be the Glasgow District Subway and some short gradient lines. The accounts of tlie London County Council Tramways for ihe year ended March 31 last, which have just been issued, show that the total revenue was £3,578,256 and that the working ex- penses were £2,858,414, leaving a sur- plus of £719,842. For the preceding year the figures were respectively £2,932,140, £2,128,686 and £803,454. After deducting interest on capital, sinking fund contribution, income tax, etc., the net credit balance is only £8,069, compared with £95,559 in the previous year. In the earlier years of the war, however, thore were deficits. Nothing has been added to the renewals fund for several yews except the small net credit balances. It is hoped, however, that the recent large increa.ses in fares will enable the undertaki-, g to meet the groat rise in working expenses and to shov/ a more substantial credit balance The sysvem extends to 149 route-miles, nearly all double track, of wliich 122 )niles are ou the conduit system. Nearly all the rest is overhead wire. The number of pas- senger? for the year was more than 636,000,000, an increase oi some 40,- 000,000 over the previous year. Communications Bill Changed In the House of Commons in the be- ginning of July an important change was made in the MiriFtry of Ways and Communications Bill whicii has the re- seult of disarming much of the opposi- tion to the measure. Under this com- promise, while the Minister may still order improvements in facilities at any harbor or dock, the owning authority may appeal to the Lord Chief Justice to appoint an arbitrator to decide whether the changes would be injurious to the undertaking. The provisions of the bill with respect to railways and tramways remain substantially un- altered. News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION PERSONAL MENTION Ouster Order Overruled Councilmen However, Refused to Recall Order Directing Railway to Cease Operating on Aug. 1 The City Council of Toledo, Ohio, meeting on the evening of July 28, by a vote of twelve to four, refused to rescind its ouster order against the Toledo Railways & Light Company. Immediately afterward an organiza- tion made up of business men of the city began the circulation of a petition for a referendum vote on the ordinance ■which ordered the railway company to cease operations at midnight on July 30. Ordinance Set Aside The campaign of the business men met with immediate success. In con- sequence petitions containing the names of 12,000 voters asking for the submis- sion of the ouster ordinance against the company to a referendum vote were filed with the City Cleric on July 30. Only 7000 signatures were needed. The action in filing the referendum peti- tion automatically set aside the ouster ordinance until that measure has been passed upon by the voters on Nov. 4. It is said that 50 per cent of the names on the petition were those of union labor men. As a body, however, union labor supported the ordinance to oust the company from the streets. Members of the various civic organi- zations of the city volunteered as circu- lators of the petition. The Council took under advisement an ordinance offered by the Toledo Railways & Light Company through Frank R. Coates, its president. This franchise is based upon the Cleveland plan of operation at cost plus a proper return on the investment, with some modifications to suit conditions in To- ledo. It provides for a permanent set- tlement of the railway controversy and improved service pending municipal ownei'ship of the line, extensions and other items which will be of benefit to the city. Cleveland Plan Suggested Under this ordinance a sliding scale of fares is provided, with an initial fare of 5 cents and 1 cent additional for transfer. The maximum is to be 6 cents with 2 cents for transfers, and the minimum, 2 cents with 1 cent for transfer, to be rebated when the trans- fer is used. The rate is to be based «pon the receipts, expenses and cost of operation, plus the dividends on the stock. In order that the city may exercise supervision over the operation, as pro- vided in the franchise, the Cleveland plan is followed in the provision that a street railway commissioner may be appointed at a salary not to exceed $10,000 a year, to be paid by the com- pany. Differences between the city and company, under the terms of this franchise, are to be arbitrated at the company's expense. The grant is to cover a period of twenty-five years, if the Council decides to submit it to a vote of the electors. Community ownership on the basis worked several years ago may be ex- ercised in case the city desires to take over the property. Apparently the terms of the proposed franchise are very fair and, if adopted, it will put an end to a long fight which has re- sulted in no benefit to either side. The business men are anxious to find some way out of a difficult situa- tion. Tacoma Ready to Purchase Railway The city of Tacoma, Wash., through the Council, has submitted two definite propositions to the Tacoma Railway & Power Company, one for the purchase of the railway lines of the company, based on a price of $1,500,000, provid- ing a vote of the people sanctions the purchase; and the other, a resolution passed by the Council to ask the people of Tacoma to approve at a special elec- tion the elimination of franchise obliga- tions, including the 2 per cent gross income tax, paving obligations and up- keep of bridges. The city is frankly taking the action in order that the railway might not claim, in the coming wage negotiations with its employees, that the company had no alternative but an attempt, through a cut in wages, to eliminate the deficit under which it is now oper- ating. Under the offer to purchase, the company is asked to enter an agree- ment to assist the city in financing the sale of $1,000,000 of public utility bonds with which to rehabilitate the railway system. In the past, the company has put a valuation of $6,000,000 on its proper- ties. Fares were raised from 5 cents to 7 cents on recommendation of a city committee nine months ago, but reports of the railway to the city show that wage increases and decreased patron- age more than wiped out the additional money from increased fares. The men were to confer with officials of the company on July 25, to discuss wage contracts, which would expire on Aug. 1. Detroit Problems Up Engineers Report Against Subway — City Not Impressed With Tayler Plan Operated in Cleveland In a recent report to the City Coun- cil of Detroit, Mich., and Street Rail- way Commissioners, a representative of the firm of Barclay Parsons & Klapp advised that a subway competing with the surface lines in the city of Detroit would not be practicable. It was con- sidered that a 12-cent fare would be necessary for a period of about fifteen years if a subway were built and that only about 40 per cent of the people could be depended upon to pay that amount. On the other hand the Detroit United Railway could earn 6 per cent with a straight 5-cent fare. Many Suggestions Made A subway, rerouting of cars, addi- tional trailers, more skip stops, and better service on intenirbans, with uni- fied system of transfers, were all sug- gested as aids to better traffic conditions. The Public Utilities Commission of Michigan has issued an order author- izing Dean Mortimer E. Cooley of the College of Engineering, University of Michigan, to complete the valuation of the Detroit United Railway property and its subsidiary branches, to July 1, 1919, for the purpose of enabling the company to refinance itself and make extensions which are being planned. Present plans of the company are un- derstood to include 14 miles of trackage, new equipment and rolling stock, mostly on the city lines of Detroit. The Tayler system as carried out in Cleveland was not found to be entirely satisfactory by the delegation of street railway commissioners and Councilmen from Detroit who visited Cleveland to investigate. The delegates wejce ad- vised that the success of the plan which is in operation in Cleveland depended to a great extent on the good will of the two parties involved, the city and the railway. Although not entirely in accord on all details, the members of the Council favor a subway to relieve congestion in the dovratown section. Fare Arbitrators Selected Frank H. Goddard, president of the F. H. Goddard Company, Detroit, con- tractor, has been agreed upon as the third arbitrator in the matter of in- quiry into the rate of fare on Detroit lines under Judge Marschner's Circuit Court order. William H. Maybury, De- troit, is the city's appointee, and John J. Stanley, president of the Cleveland (Ohio) Railway, was chosen by the railway. August 2, 1919 Electric Railway Journal 249 Surface and Elevated Lines Tied Up All Chicago Walks Following Strike in Which Unionists Shout Hell With the Public" — Settlement Referendum Arranged 'To A compromise proposition on wages and working conditions was cried down by conductors and motormen of the surface and elevated roads in Chicago, assembled in mass meeting on July 28, and at 4 o'clock the following morning every car on both systems was at a standstill. No attempt was made by the companies to operate. The strike came at a time when race riots were lesulting in the death and injury of hundreds of persons in the city. Strike a Surprise The people and the company officials were taken by surprise. At the close of business on Monday union leaders appeared confident that the proposed settlement terms would be accepted. The terms offered to trainmen on the surface lines were as follows: Maximum wages to be advanced from 48 to 65 cents an hour, and all other union employees to get a 17-cent increase ; eight- hour day with time and a half for over- time; 60 per cent of all runs to be com- pleted in eight hours and all runs to be completed within fourteen hours. The ele- vated employees were offered a 67-cent maximum wage ; an eight-hour day with time and a half for overtime ; 70 per cent of all runs to be completed in eight hours and all runs within thirteen hours. The union demands, formulated at a joint meeting on July 11, called for ihe following: A maximum wage of 85 cents an hour, (2 cents higher on the elevated roads) ; an eight-hour day, time and a half for over- time; 80 per cent of all runs to be straight time, the balance to be completed within ten consecutive hours ; no run, regular or extra, to pay less than eight hours ; work on Sundays and holidays to be not more than six hours at a rate of time and a half ; six-day week to be established for all employees ; fall backs or dinner reliefs to be not less than thirty minutes. These demands, together with the increased pay to all other employees, if granted, would cost the surface lines about $14,000,000 additional a year and the elevated roads about $5,000,000, it was estimated. This would mean a 9 or 10-cent fare. Negotiations on Since July 12 Negotiations between the companies and the men looking toward a settle- ment were carried on almost continu- ously from July 12. At the direction of Governor Lowden the Public Utilities Commission acted as intermediary be- ginning on July 21. There was little evidence of progress for almost a week because the employees would not talk compromise unless the straight eight- hour day and time and a half for over- time were conceded. Presidents L. A. Busby and Britton I. Budd of the rail- ways showed the commissioners what these conditions would mean. It was evident from the start that the car riders would have to pay whatever terms were fixed. A compromise offer was made by the companies on July 25, on a basis of the Detroit wage scale — 60 cents an hour, with minor changes in working condi- tions. The union committee claimed to take offense at the fact that this offer had been made public. At a meeting the following day before the commis- sion they walked out and announced that a meeting of the men would be held July 28 to take action. Governor Lowden again got into touch with the leaders of both sides, and arranged for a continuance of con- ferences on July 28. Company and union officials were in session all day with the utility commissioers and at last the terms named above were agreed upon as being a fair com- promise. Public hearings were to have been held on July 29 for the purpose of fixing rates of fare sufficient to meet the additional expenses which were estimated at $7,000,000 for the trainmen of the Chicago Surface Lines alone. It was conceded th^t this, would require at least a 7-cent fare with the possibility of a 1-cent transfer charge or even an 8-cent rate. The new con- tract and higher fares were to become effective on Aug. 1. "To Hell With the Public" At the union meeting on the evening of July 28 it was evident from the start that a radical element was in control. They cheered the announcement of In- ternational Committeeman Bland that the eight-hour day and time and a half for overtime had been conceded, but when a further explanation showed some restrictions on these terms a big demonstration followed. Mr. Bland told them that the wage offer was the highest for any electric railway and the working conditions excelled by none. He asked for a referendum on the offer, but the radicals had their way. They would not concede forty-eight or even twenty-four hours notice to the public. They were told that their fight would not be with the companies, but with the public of Chicago. "To hejil with the public. Let us strike now," they shouted. Without waiting for a formal vote the meeting broke up and a few hours later all cars had been returned to the carhouses, and the people faced the prospect of an indefinite use of jitneys, trucks, steam roads and "shank's mare." No Attempt Made to Operate The strike situation in Chicago marked time on July 30. According to the companies, no attempt will be made to operate either the elevated or the surface lines, so long as the strike continues. There has, of course, been an enor- mous increase in vehicular traffic. This, coupled with the necessity for remov- ing all the traffic police from the loop for race riot duty, has created a con- dition of traffic congestion such .as never prevailed before. It is being urged by the police that all trucks and jitneys discharge and pick up passen- gers outside the loop district, where most of the business houses are located, in order to relieve conditions. Everything on wheels has been called into service. The suburban steam lines were pretty well prepared for the strike, having profited by their experi- ence of four years ago. Arrangements had been made so that equipment was rushed to Chicago from other cities im- mediately upon notice of the strike. Trains of eight and ten cars are being operated by the Northwestern Railway on less than an eight-minute schedule during the rush hours. Mr. Mahon Arranges Referendum L. D. Bland, international treasurer of the union, charges that the rejec- tion of the compromise was due to the activities of less than 300 radicals who went to meeting determined to strike unless every demand was conceded. Since W. D. Mahon, president of the Amalgamated Association, approved the settlement as offered to the men it is ex- pected he will institute a rigid investi- gation of their action. Mr. Mahon took hold of the Chicago situation on July 30. He arranged for a referendum on Aug. 1 on the settle- ment offered by the companies, but turned down by the men on July 28. If the compromise proposition is accepted service may be resumed on Aug. 2. Mr. Mahon is said to favor acceptance. On the other hand, Mr. Bland in- directly blames the companies. He says that the meeting on the evening of July 29 would never have been called had it not been for a break in the conferences caused by the belief of the employees that President Busby of the Chicago Surface Lines had broken faith with them by issuing certain statements to the newspapers. Bankers Explain Ownership The bankers of Chicago formulated a statement on the afternoon of July 30 giving the financial view of the street railway situation. This was published in the daily papers. Among other things the statement said: The general public and probably the em- ployees of the railways apparently believe tliat the railway system is owned by multi- millionaires familiarly known as traction barons who have made vast fortunes in the manipulation of securities and fleecing the public. While it is probably true that in the past men like Charles T. Yerkes and his asso- ciates made large profits out of the manipu- lation of traction securities, nothing of the kind has occurred since the adoption of the present franchise in 1907. The chief beneficiary has been the city of Chicago, which without a dollar invested in the property has taken close to $25,000,- 000 from the receipts of the traction com- panies. There are approximately $100,000,000 of first mortgage, bonds outstanding, largely held in the city of Chicago by persons of moderate means who bought them very close to par. At the present time these bonds are selling at 75 cents on the dollar and under, showing a total loss of more than $25,000,000. Adequate transportation is absolutely necessary. This cannot be secured with- out raising additional capital from year to year. This capital cannot be raised unless investors are guaranteed protection. The leading daily papers have com- mented editorially on tne strike with severe criticism of the men for their hasty action in refusing to consider a compromise which would have given them the highest wages paid in the United States for similar service. 250 Electric Railway Journal Vol. 54, No. 5 The employees of the Evanston Rail- way also went on strike on July 30 because the management could not see its way clear to agree to offer them whatever settlement might be decided upon in Chicago. The Chicago & West Towns Railway, however, has agreed to place in effect with its employees any agreement which was settled upon in Chicago and the men have remained at their places. The employees of the Aurora, Elgin & Chicago Railroad, which has inter- urban and city lines in the Fox River Valley and third-rail interurban lines from these towns to Chicago, struck at 3 a.m. on July 31. The strike vote on July 30 was taken as a result of a conference in which E. C. Faber, gen- eral manager, notified the men that The Massachusetts Legislature of 1919 adjourned on July 25 after the second longest session in the history of the State. More than 600 acts and resolutions were passed. Of these the most important to electric railways was an act providing for the investigation of the electric railway financial situ- ation by a special commission of thir- teen members. This committee, whose members have just been announced by Governor Coolidge, is to report by the middle of November to an extra ses- sion which the Governor plans to call to relieve the existing intolerable state of transportation affairs. Relief Measures Are Killed Practically all measures of impor- tance bearing upon electric railways which were under consideration in the closing days of the session were tabled or killed in view of the forthcoming extra session. Contrary to the news- paper report mentioned last week, the attempt to re-establish a 5-cent fare in Boston and elsewhere was unsuc- cessful. Efforts were also made during the session to commit the State to a policy of public ownership of electric railways, but without avail. As the session closed, opinion was divided between the possibilities of ap- plying zone systems with lower fare units and the retention at least on some systems, of the flat fare, with operat- ing deficits to be made up from tax levies. The feeling was widespread that the high fare unit applied on a flat-rate basis cannot cope with the existing situation. Commission to Be Reorganized The investigating committee which will now study this matter is composed of the following : Robert F. Herrick, Milton; former Congressman Charles G. Washburn, Worcester; Federal Judge George W. Anderson, former Interstate Commerce Commissioner, their demand for a general increase in wages of 41 cents an hour could not be granted unless the company was per- mitted to increase its rates. Several towns including Elgin, with a popula- tion of 50,000, have thus been deprived of electric power, upon which they de- pended for light and water supply and upon which many of the largest factories depend for current for their operation. An appeal was made to the union by the City Council to permit the opera- tion of the power plants, but no action had been taken up to the night of July 30. Circulars were sent out in some of the towns prohibiting use of water except during certain hours and then only for drinking, cooking and sanita- tion. A serious condition will exist in case of fire. Boston; James L. Doherty, Spring- field; Senators Cavanagh, Everett; Hardy, Hampden, and Walsh, Suffolk, and Representatives Kneeland, Win- chester; Allen, Norwood; Young, Wes- ton; Maloney, Chelsea, and McDonnell, Boston. Electric railways are interested in the reorganization of the Public Serv- ice Commission and the Gas & Electric Light Commission into a single De- partment of Public Utilities, effected as a result of a constitutional amend- ment cutting down the various depart- ments of the State from about 100 to twenty. The new department, which will retain the powers of the prede- cessor boards, will be composed of a chairman with a maximum salary of $8,000 and four other commissioners with maximum salaries of $7,000 each. The commissioners are to be appointed by the Governor with the consent of the Council for initial terms of one to five years respectively, future terms being of five years duration. Power of removal is also vested in the Gov- ernor and Council. Will Facilitate Board Hearings The work of the board will be fa- cilitated by a provision that in all but purely formal or administrative mat- ters, two or more commissioners may participate, and, if all parties consent, a single commissioner may sit. The majority opinion with at least three commissioners participating is required in findings. Appeal in equity to the Supreme Court of the State is retained, together with the power of enforcement of the commission's acts by this tri- bunal. A separate act provides that it shall be the duty of the commission to give seasonable notice by mail to any member of the Legislature of any matter affecting the interests of his district. The town of Sharon was authorized to acquire and operate a portion of the former Norwood, Canton & Sharon Street Railway. An act was passed requiring the Boston Elevated Railway to transport the pupils of public, pri- vate and industrial day and evening schools within the district served by the company to and from schoolhouses and their homes at not more than one- half the regular fare charged by the company for the transportation of other passengers for the same distance. The Public Service Commission and the Transit Department of the city of Boston are directed to investigate jointly the desirability and feasibility, from the engineering, operating and financial standpoints, of extending the present rapid transit system of the Boston Elevated Railway (1) from the terminus of the Dorchester tunnel at Andrew Square by surface tracks to Mattapan Square, and (2) from tlie Forest Hills elevated railway ter- minal to Dedham. The investigation may also include an inquiry as to handling freight, express matter and mails on these so-called "rapid transit circuits," and the construction of trans- fer stations at suitable points between the surface lines of the Boston Ele- vated Railway and the rapid transit circuits. The joint board is to report to the Legislature not later than Jan. 10, 1920. Many Measures Failed A large number of measures affect- ing electric railways failed to pass. These chiefly had to do with the relief of taxation burdens, fares, service and public ownership or operation. Care- fully worked-out plans for the reduc- tion of taxation burdens were included in a bill presented by President C. V. Wood of the Massachusetts Street Rail- way Association, which was heard at length, but the House displayed much hostility to any form of relief for street railways during the present session, and the favorable attitude of the Sen- ate on this general subject went for naught. Undoubtedly the hostility of the House was a primary cause of the special message of Governor Coolidge, which was written almost at the end of the session and urged in no uncer- tain words the necessity for action in order that the present impasse may be permanently removed. Attempts to secure appraisals of the Boston Elevated Railway and the Bay State Street Railway (now the Eastern Massachusetts Street Railway) by the Public Service Commission or other special commission failed to pass. A strong sentiment developed in the Legislature against public ownership, the experience of the country with the federal administration of railroads, telephone and telegraph lines being considered so unfavorable. A bill which would have materially helped the Boston Elevated Railway and perhaps have temporarily forestalled the use of the 10-cent fare was one providing for the purchase by the State of the Cam- bridge subway. This would have pro- vided about $8,000,000 for the imme- Traction Problems Referred to Special Commission Critical Condition of Operating Companies in Massachusetts Is Considered Likely to Demand Extra Session of Legislature in November — Investigating Committee Named August 2, 1919 Electric Railway Journal 251 diate needs of the road, and its failure was greatly deplored in electric trac- tion circles. Another bill which failed was that introduced at the request of Ralph S. Bauer, Lynn. This provided for the purchase by the city of Lynn of the local lines of the Eastern Massachu- setts system, the furnishing of free transportation to car riders and the levying of the cost thereof upon tax- payers. The discontinuance of the pub- lic operation of the Boston Elevated Railway was sought in another bill as a protest against the 10-cent fare, but it failed to pass. Forty-five bills were considered by the committee on street railways alone and twelve by this com- mittee sitting jointly with the commit- tee on metropolitan affairs. Minneapolis Franchise Draft Council Committee Is Holding Hearings on Proposed Service-at-Cost Ordinance After a long series of negotiations the first real step has been taken toward solution of the Minneapolis Street Railway franchise situation through the presentation to the com- pany by the city attorney of a draft of a proposed ordinance. This is now before the Council committee on street railways. A 7 Per Cent Return Provided The franchise will give the company the right of operation of surface lines for twenty-five years with a net return ■of 7 per cent on a valuation of $24,- 000,000 as of Jan. 1, 1919, with 1 per ■cent on additional value put into the system above that capital amount. A fund of $250,000 will be set aside to stabilize fares, and when this fund is increased from earnings to $500,000 the fare is to be reduced. The fare is fixed at 5 cents for three months from the ■eft:'ective date of the ordinance. At that time the stabilization fund will act to advance fares if the stabilization fund has been reduced to $150,000. The city may buy the company's property at the end of any five-year period. The city will supervise the company operation and maintenance, and have access to its books. The su- pervision operator shall be paid by the company. An amortization fund is provided for. The city may construct new lines and extensions out of its own funds when the company fails to build them, the company to operate them and the city to get the same return on its investment that the company is al- lowed under the franchise. F. A. Sager, public utilities expert, has informed the Council committee that the capital value of the Minne- apolis Street Railway was increased $1,.341,540 between Jan. 1, 1916, and Jan. 1, 1919, or $216,540 more than the figure given by the company when it accepted a valuation of $24,000,000 for franchise purposes. The principal in- crease was in tracks and a new steam power unit. Wages Advanced in Los Angeles Increase in Wages Announced by Both Pacific Electric Railway and Los Angeles Railway The Pacific Electric Railway and Los Angeles Railway on July 22 announced increases in pay for conductors and motormen, effective on July 30, and Aug. 1, 1919. This action upon the part of both companies was entirely voluntary. The Los Angeles Railway, beginning- July 30, raised the wages of trainmen 3 cents an hour and also increased the guaranteed minimum wage for extra men and beginners from $90 a month to $100. Increases for employees in other departments are, also, under con- sideration. The Pacific Electric Railway on Aug. 1 increased the wages of about 1600 conductors and motormen 2 cents an hour and 3 cents an hour for those who do not elect to avail themselves of the annual twelve working days vaca- tion under full pay, now granted by the Pacific Electric. Employees who so desire may take their vacation on full pay this summer, and on return, elect the 3-cent increase effective fro^ the date of signing it. The company has already put into effect as of July 1, 1919, a minimum wage of $100 a month for all platform men who report regularly for duty on extra runs. Pre- vious minimum guarantee for such men was $90 a month. High Cost of Living Responsible There were some 2000 other Pacific Electric Railway employees not includ- ed in this increase of pay as announced, but H. B. Titcomb, vice-president, added that these employees would also receive substantial increases to their present salaries. The action of the Pacific Elec- tric is voluntary and due to increased cost of living. Mr. Titcomb states "that while the present revenues of the Pacific Electric Railway do not justify any increases whatever, the company looks with confidence to the State Rail- road Commission taking into account the wage increases just made, in deal- ing with the company's application now before the commission for increase in lates." The advances in wages will cost the coi^T^any $250,000 annually. The wage scale to be made effective by the Pacific Electric Railway for those who do not take the twelve days annual vacation on full pay, is in full as follows: City service, motormen and conductors — I'Mrst three months, 41 cents ; next nine months, 43 cents ; second year, 44 cents ; third year, 45 cents; after third year, 47 cents. Interurhan service, motormen and con- ductors— First three months. iSi cents; next nine months, HI cents ; second year, 4RJ cents; third year, 47i cents; after tliird year, 49i cents. Freiglit and work train service, flat rate tliroughiout — Motormen, 53 cents ; conduc- tors, 53 cents : brakemen and switchmen, 48 cents ; trolleymen, 43 cents ; yard fore- men, 53 cents. For tliose who elect to take the twelve days' vacation, wages will be 1 cent an hour less in all cases. The new wage scale of the J^us Angeles Railway is as follows: First three months, 41 cents; next nine months, 43 cents; second year, 44 cents; third year, 45 cents; after third year, 47 cents. This increase was voluntary in accordance with the company's estab- lished policy to meet the requirements of employees so far as possible. Conditional Wage Settlement A conditional settlement of the con- troversy over wages between the Des Moines (la.) City Railway and its em- ployees was arrived at on July 28 by the three arbiters, Fred Sargent, repre- senting the company, J. B. Wiley, representing the union men, and Rev. C. W. Reese. The arbiters agreed upon a tentative wage scale retroactive to March 1, 1919, and to continue in effect to March 1, 1920. The agreement is conditional, however, upon the calling of a special election to permit the people to vote upon an increase in fare. The call for this election must be issued, so it is provided, by the City Council by Aug. 7 and the election must be held not later than Sept. 22. The election is to be called only if the special committee of citizens which is endeavoring to set- tle the strike or Judge Martin J. Wade of the Federal Court finds by Aug. 4 that the receivers for the Des Moines City Railway are not receiving suf- ficient revenues to meet the increase. The scale agreed upon by the arbi- ters is as follows: first three months, 50 cents; next nine months, 55 cents; after one year, 60 cents. At present the men are receiving 43, 45 and 50 cents for the periods above mentioned. They demanded 55, 60 and 65 cents. The men voted to strike at an elec- tion on July 24, but agreed to withhold action pending an arrival at an agree- ment on the part of the arbiters and the citizens committee. If the election does not i-esult in an increase an im- mediate strike is to be called. Pittsburgh Strike Suit Before Court The Amalgamated Association has filed a demurrer to the suit brought in the courts of Allegheny County, Penn- sylvania, for $2,035,000.78 as damages which resulted from the strike last May of the employees of the Pitts- burgh Railways. The plaintiff in this litigation. At- torney A. E. Anderson of Pittsburgh, brought the suit several weeks ago to test, as he announced at the time, just what the right to strike consists of in cases where direct expense and incon- venience are caused the public. He sued in the name of himself and the rest of the usual patrons of the Pitts- burgh Railways, his bill of damages including an estimate of all it had cost Pittsburgers to travel by steam rail- ways and motor bus during the strike, over ordinary expenditures for car fare. The 78 cents is his own personal share of the bill. 252 Electric Railway Journal Vol 54, No. 5 Seattle Wage Offer Rejected The trainmen of the Seattle (Wash.) Municipal Railway have voted to reject the visage scale offered by Thomas F. Murphine, superintendent, as a counter- proposal in answer to the trainmen's demands for increased wages. The car- men reiterated their demand for a minimum wage of $5.50 and $6 a day, the higher wage to be paid after six months service, and rejected Mr. Mur- phine's offer of a minimum of $5, to be increased to $5.50 after ninety days service, and to pay a bonus of 5 per cent at the end of one year to all train- men who were credited with twelve months of uninterrupted service. The objections to Mr. Murphine's plan were based largely upon the bonus feature, the committee stating that "the bonus system, as the carmen view it, is not a bonus, but the difference be- tween the proposed wage scale offered by Mr. Murphine and a living wage demanded by the men. . . . Why hold back the bonus for one year? We need the money now," Speakers at a recent meeting of the carmen, who represented the majority sentiment, stated that if the city would add the 5 per cent bonus to the wage proposed, and put it in the semi- monthly pay checks, the city and men would not be far apart on the matter of wages. There has been little or no talk of strike, officers of the union declaring that they have faith in the ability of the union to convince the city that a satisfactory wage settlement can be reached, provided the bonus payment plan is eliminated and increases made in the scale proposed by Mr. Murphine. Franchise Rights Questioned That the Southern Traction Com- pany of Illinois, the assets of which were bought at public auction by H. D. Mepham, St. Louis, Mo., and asso- ciates for $400,000, nas at present no franchise rights on the Free Bridge across the Mississippi River or on any St. Louis streets, is the opinion of As- sociate City Counselor Hamilton of St. Louis. The Southern Traction Company was given the right to run over the highway deck of the Free Bridge by an ordinance passed by the City Coun- cil of St. Louis on April 11, 1911. This ordinance, however, was amended in November, 1912, and repealed Nov. 7, 1914. In May, 1913, the City Counselor of St. Louis expressed the opinion that the city could not legally repeal the franchise ordinance. This opinion was disregarded by a later city counselor. The city's policy now is to make the Free Bridge available for any railroad or electric railway which may wish to use it. The Southern Traction Com- pany thus will be able to obtain a license to use the bridge for entrance into St. Louis from southern Illinois, but will not have exclusive rights. Mr. Mepham stated that he and his associates propose to carry through the original plans of the Southern Trac- tion Company and operate freight and passenger cars between southern Illi- nois points and St. Louis, with a loop in downtown St. Louis. It has been expected that the road would be valu- able as a coal carrier. The city of St. Louis now has elec- tric railway tracks on the Free Bridge and owns two cars available for use on the bridge. Shore Line Strike Unsettled The strike of the employees of the Shore Line Electric Railway, which includes 221 miles and provides the only service in the triangle formed by Westerly, Norwich and New London, with branches north to Willimantic, which became operative on July 16, con- tinues with traffic completely tied up. It was thought that the appointment of mediators by the Connecticut Cham- ber of Commerce would have satisfac- tory results, but a meeting held by the arbitrators in Norwich on July 21 was without results, caused in the main by the insertion of a proviso by the com- pany "that in the event of an award of increased wages the increase should not become effective until the board of arbitrators could determine that the company was financially able to bear the increase." The representatives of the strikers would not accept the proviso and with- drew from the proposition to arbitrate the differences. The system, which is owned by the estate of Morton F. Plant, consequently remains idle, matters being complicated by the statement of the executors of the estate that they are without au- thority to divert to the company other funds of the estate which would be necessary if an increase in wages was granted. Pittsburgh Protests Paving Provision The controversy between the re- ceivers of the Pittsburgh (Pa.) Rail- ways and the city administration over the paving question flared up so hotly during the week ended July 19 that both sides issued peppery statements to the public. The city administration, through its special bureau for traction litigation, announced that if the receivers con- tinued to lag in performing their share of such paving as the city considers necessary, franchises would be annulled as having being violated by the com- pany. The receivers countered next day with a statement that any move on the part of the city to interfere with their operation without consent of the United States Court would constitute contempt. Pittsburgh franchises contain a pro- vision that the company must bear the expense of paving and repaving be- tween its tracks and 1 ft. on either side. On the ground that funds available are insufficient, the receivers have de- clined to enter into the city's street repair program as extensively as the administration considers proper. The whole question was brought to a head over the matter of repaving West Car- son Street, on which the city had gone ahead to the point where further work became impossible without the co- operation of the receivers. Called into conference with the City Council, counsel for the receivers an- nounced that thereafter the company would do no paving except upon court order. Another angle of the situation that conceivably might prove more serious is restiveness of the smaller municipal- ities surrounding Pittsburgh over the same paving question. Franchises in most of these boroughs contain paving provisions similar to those in the city franchises. Some of them are begin- ning to protest at the company's failure to co-operate in street improvements, and they are not parties to the receiver- ship. North Braddock has served no- tice upon the receivers that unless repairs upon streets and tracks are started by Aug. 12, the tracks within that borough will be torn up. Rhode Island Men Reject Arbitration Authority for the receivers of the Rhode Island Company, Providence, R. I., to arbitrate their controversy with the union, on condition that the strik- ers resume work, was provided in a decree entered late on the afternoon of July 30 in the Superior Court at Providence by Judge Doran. The order did not specify when the car men should return to work, but read "that when" they return and accept one of two plans outlined in the decree, the receivers shall submit to arbitration three questions: How much the wages shall be, the date for that wage to take effect and what working condi- tions shall be. The arbitrators, who would be either the utilities commissioners acting as individuals, or citizens of the State chosen by both sides with the third member and chairman chosen by the Governor, would determine what is- proper evidence to be considered and decide the questions in dispute. The decision of the majority would be deemed an award which, in any case, would be subject to court approval. On July 31 the union rejected the plan for arbitration under the condi- tions laid down by Judge Doran. Officers of the union stated that they would make known the decision of the men in a statement to be issued at noon on Aug. 1. According to a statement made on July 31 by the chairman of the Public Utilities Commission, that board may take the first step in securing to the receivers the power to operate the road. If the terms of Justice Doran's decree are not accepted by the men, and the receivers can find no other remedy, the commission will summon the receivers to see if at least partial, operation may be begun. August 2, 1919 Electric Railway Journal 253 Demand Goes to War Board. — The demand of the employees of the Cleve- land & Eastern Traction Company, Cleveland, Ohio, have been submitted to the Federal War Labor Board for settlement. New Board for New Orleans. — The Supreme Court having ousted from office the Board of Public Utilities created by the Legislature of Louisiana, the Commission Council of Nev? Or- leans proposes to form another board composed of the Mayor, the Commis- sioner of Public Property and the Com- missioner of Public Utilities. City Names Arbitrator on Dividend Matter. — W. E. Davis, city light com- missioner, was selected by Council on July 17 as its arbitrator in the matter of an increase in the dividend of 1 per cent, asked by the Cleveland (Ohio) Railway. J. J. Stanley, president of the company, stated that the company's representative will be selected vidthin a short time. Cincinnati Will Ask for Loop Bids. — The Cincinnati (Ohio) Rapid Transit Commission has decided to open bids on Aug. 27, for the first section of the rapid transit loop. Plans and spjpcifica- tions will be completed as soon as pos- sible. The first section lies between Walnut and Charles Streets. The cost of construction has been estimated at approximately $543,000. Report on Grand Rapids Company. — A report on the condition of the Grand Rapids (Mich.) Railway made by the Brownell Engineering Company at the request of the City Commission of Grand Rapids, Mich., holds that the city would be justified in paying $4,500,000 for the company's property. An additional expenditure of $1,500,000 would be needed to establish adequate service. More Time for Everett Elevated Ex- tension.— The Public Service Commis- sion of Massachusetts has issued a finding authorizing the Boston Elevated Railway to defer the construction of a permanent elevated and surface line terminal at Everett until July 21, 1920. The company showed that it could not obtain capital for the completion of this work at present on reasonable terms. Men Return, Pending Board Findings. —The Ottawa (Ont.) Electric Railway has resumed full service owing to the decision of its men, who have been on strike for two weeks, to return to work pending the findings of the board of conciliation which is considering their demands. The company, while agree- ing to take back men in most cases, re- serves the right to refuse re-employ- ment to those whom it considers un- desirable. New England Street Railway Club Holds Outing. — Nearly 200 members and guests of the New England Street Railway Club attended the annual out- ing of the organization on July 24 at Fort Phoenix Park, Fairhaven, Mass. Elton S. Wilde, general manager Union Street Railway, New Bedford, was master of ceremonies. The program included visits to the Union company's new generating station and to its car- houses and shops in New Bedford, and a shore dinner and sports at the Fort Phoenix Casino. Examiner to Hear Boston & Worces ter Dispute. — Employees of the Boston & Worcester Street Railway, Boston, Mass., have voted to refer their dis- agreement with the company regarding back pay under the War Labor Board's award of last winter to Examiner Charlton Ogburn of the board for ad- judication. It is claimed that about $50,000 in back pay has accumulated since November, 1918. All Berlin Tied Up. — As a conse- quence of the strike of street car and other transit workers, Berlin, Germany, has been without transit facilities for several days. Most of the residents of the city remained at home, unable to reach their places of business. Armed troops are reported to be patroling the streets and there is said to have been some disorder. Car lines in several other German cities are likewise tied up. Milwaukee Electrification Progress- ing.— Seattle officials of the Chicago, Milwaukee & St. Paul Railway state that operation of the Milwaukee elec- tric line between Othello and Beverly will be begun in a short time, but that the road will not be able to use elec- tricity as a motive power between Beverly and Seattle and Tacoma be- fore November. The delay is occasioned by the slow delivery of electric loco- motives and equipment for the sub- station. Tacoma Men Oppose Change. — It was reported that trainmen of the Tacoma Railway & Power Company, Tacoma, Wash., planned to call a gen- eral strike if the company insists upon entering into a new contract with the men on Aug. 1, the date of expiration of the present agreement. It was said the men were willing to continue the present contract, but that the company was proposing changes that would efl'ect a reduction in wages. The men will not concur in such an agreement, they affirm. Claims of Carmen Disallowed. — Claims against the Spokane & Inland Empire Railroad, Spokane, Wash., in- volving more than $1,000,000, were de- nied by a decision filed in the Federal Court of the State of Washington on July 11. The company is now in the hands of a receiver. The most impor- tant of the claims disallowed was that of the railway employees for more than $20,000 in back pay, inasmuch as they recently refused to go on a strike against the comppry ^ynpathy with the electrical workers. Champaign Strike Unchanged. — The strike of the union conductors and motormen of the Urbana & Champaign Railway, Gas & Electric Company, Champaign, 111., remains unchanged. The union men refuse to work longer than nine hours while the members of the brotherhood are willing to work longer. The members of the brother- hood are at their posts, as well as a number of non-union men. There is no disorder. Cars are being operated on a twenty-minute schedule, which is about half the headway under normal conditions. Disorder in Oklahoma Strike. — The strike of motormen and conductors of the Oklahoma Union Railway, which operates an interurban line between Tulsa and Sapulpa and local lines in these two cities, grows more serious, after a period of quiet during which it was thought the strike was settled. Cars in Sapulpa and on the company's lines in Tulsa have again been stopped, although some of the interurban cars are being operated, but under difficul- ties on account of attacks by strikers. Pending settlement of the strike, ar- rangements have been made with the Frisco Railroad for the operation of gasoline motors cars over the line be- tween Tulsa and Sapulpa to care for the traffic. Omaha Men Present Demands. — A committee representing the employees union of the Omaha & Council Bluff's Street Railway, Omaha, Neb., has pre- sented revised demands for a closed shop, an increase in wages, changed working conditions, promotion by seniority without regard to previous strikes, and relief funds and vacations. The proposed agreement provides for the discharge of any employee who does not become a member of the union within thirty days. Time and a half pay for time over ten hours work is demanded in the compensation clause. The scale of wages is fixed at 65 cents an hour for the first three months of continuous service, 70 cents for the next nine months, and 75 cents after one year. The present wage scale is from 41 to 45 cents an hour. Short Strike in Macon. — The train- men in the employ of the Macon Rail- way & Light Company, Macon, Ga.. were on strike from 4:30 a. m., on July 15 until 5 p. m., on July 16. Dur- ing that time negotiations were under way which were concluded with recog- nition of the union by the company, the granting of a ten-hour day and an agreement calling for the payment of a wage scale ranging from 36 cents to 40 cents an hour. The previous wage scale was 23 cents to 28 cents an hour. One of the issues which precipitated the strike was the discharge of certain employees. The cases of these men will be taken up and handled by the union with the superintendent of the railway. The company has been charg- ing a 6-cent fare. It is stated un- officially that an increase may now be sought in the hone of recouping the company for the burden which the in- crease in wages has imposed. 254 Electric Railway Journal Vol. 54, No. 5 Southei'n Railroad, with 149 miles of track, earned $81,960, or $549 per mile. All interurban lines in the State showed a profit with the exception of the Tama & Toledo Railway (trackage, 2.95 miles) which showed a loss of $532. Reviews St. Louis Finances Financial Vice-President of United Railways Shows Need for Co- operation in Rehabilitation Robert L. Warner, vice-president of the United Railways, St. Louis, Mo., who resigned recently as financial agent of the receiver, issued a state- ment in which he urged that security holders, the city of St. Louis, the Public Service Commission of Missouri and the employees of the company should be al- lowed representation on the company's board of directors, when the company is ultimately reorganized. Mr. Warner does not believe a com- plete reorganization can be brought about before May 1, 1920. His state- ment follows in part: Tlie action of Judge Lamm in granting the order reque.sted by tlie receiver, en- abling him to sell receiver's certificates for tlie purpose of discliarging the debt to the War Finance Corporation, will dispose of lliis question to the best possible advantage of all interests. The next maturity of importance will be $1,900,000 of St. Louis Railroad 4i per cent bonds, due May 1, 1920. Unless reorgani- zation should take place prior to tliat date, this maturity also will undoubtedly have to be met by way of receiver's certificates. That, however, is a question for the future to determine. As to reorganization, I do not see the slightest possibility of any such thing tak- ing place between now and next May 1 . unless, indeed, it should be occasioned by a piemature foreclosure of the general mort- gage, which, at such a time as this, would almost necessarily involve the destruction of all equities junior thereto. It is difficult to believe that the courts would view such a procedure with favor. On the contrary, it seems much more prob- able that reorganization will he delayed until the Public Service Commission has re- •ceived from its engineers their report upon the valuation of the property now in prog- ress, and lias rendered a final decision upon the same .and also has thereafter considered and determined tlie rate of return which should equitably be allowed upon such val- uation, and the methods whereby the same may be secured with justice to all inter- -ests. Reorganization, in order to be effective and permanent, must provide not only an equitable return on the fair value of the existing property as determined by the Public Service Commission, but also — and this is highly important as a matter of public interest — should afford a tlioroughly practical means of financing betterments and extensions to the amount of possibly ?2. 000. 000 or $3,000,000 per annum. There should also be developed in con- nection with reorganization sucli a plan of administration as will afford to all inter- ests adequate representation in dealing with and settling without destructive con- troversy such problems as are bound to arise from time to time in connection with the management of the new company. Experience elsewhere indicates strongly the ultimate adoption of a zone system of fares. The public, howfver. will not be ■content with this or any other system _ of revenues unless the same be accompanied "by automatic regulation of rates on a serv- ic'e-at-cost basis. To this end the board of directors of the new corporation should in- clude not only representatives of the secur- ity holders, but also representatives of the city of St. Louis, the Public Service Com- mission and the employees. It is impossi- Tjle to hurry such a reorganization. LTnder these circumstances, I have re- centlv expressed to Mr. Wells the desire to lie relieved of active service upon behalf of the receiver as soon as the matter of issu- ance of receiver's certificates should be suf- ficiently advanced to warrant this step. I expect to continue as vice-pre^-ident of the corporation and in that capacity to as- sist tlie receiver in every possible way as affairs progress in the general direction of reorganization. I certainly shall continue for the present, at any rate, to be a resi- dent of the city of St. Louis, although, no doubt, putting in a good deal of my time elsewhere during the next few months. Six-Cent Fare Results in Spokane The June results in Spokane, Wash., for the 6-cent fare, as compiled by H. C. Bender, city superintendent of public utilities, are as follows: Washington Water Power Company Paid passengers hauled, 1,250,838. Increase over three-year average, 4.5 per cent. Decrease in gain at 6-cent fare over what it would have been at 5 cents, 17.3 per cent. Street car revenue for June, $74,909. Increase over' the three-year average, 26.1 per cent. Revenue gain over what it would have been at 5-cent fare, 2 per cent. Car-miles covered in June, 291,246. Decrease in car mileage, 2.7 per cent. Spokane & Inland Empire Traction Lines Paid passengers hauled, 605,057. Loss over three-year average, 16.9 per cent. Decrease in passengers due to 6-cent fare, 11 per cent. Street car revenue for June, $36,278. Increase over three-year average, 1 per cent. Gain at 6 cents over what it would have been at 5 cents. 4 per cent. Car-miles covered in June, 150,580. Decrease over three-year average, 21.2 per cent. Figures on the third month's opera- tion of the 6-cent street car fare, compiled from the books of the two companies by Mr. Bender, together with his deductions as to the effect of the increased fare, show a continued decline from the number of passengers that would have been hauled at the lower fare with a relatively smaller gain in revenue. Iowa Interurban Earns $5,299 a Mile Net The Inter-Urban Railway, operating lines to Colfax and Perry, Iowa, made a net profit of $156,891 in 1918, accord- ing to a statement just filed with the Iowa State Board of Assessment. This represents a profit of $2,634 per mile on the 59« miles of trackage. During the year 1918 the traffic over the interur- ban's Perry line was entirely abnormal for the reason that this line was the only means of reaching Camp Dodge by rail. The 3.91 miles of track on the Inter- urban Railway line between Des Moines and Valley Junction showed the second best net income of all Iowa interurbans. The net earnings for the line were $19,- 397, or $4,960 per mile. The best paying interurban line in the State, according to the statements filed by the various companies, was the line between Cedar Rapids and Marion, which made a net income of $5,299 per mile. The Fort Dodge; Des Moines & Collateral Ordered Sold Practical Control of Washington Rail- way & Electric Company Is Up for Bid Sale of the 27,500 shares of the com- mon stock of the Washington Railway & Electric Company, held as collateral for the defaulted notes of the Washing- ton Utilities Company, was ordered on July 25 by the protective committee. This large block of stock has practi- cally controlled the Washington electric railway for years, with the proxies that were sent in annually by shareholders. Committee Hopes for Bid The committee does not know whether there will be a bid for the property or not, but is hopeful that a sale may be efi'ected. Otherwise the committee will buy in the securities and thus alter its position from a creditors' committee of a defunct or- ganization to that of interested share- holders in the Washington Railway & Electric Company, and therefore be much better qualified to appear before the Public Utilities Commission and also to assume positions on the direc- torate of the company, if such action should seem desirable. The committee does not expect to be eliminated from the railway situation through the sale of the security and the liquidation of advances, although it is probable that if a bid should be made for the 27,500 shares of common gtock around $50 a share, it would welcome the shifting of the burden to other shoulders. Possible Merger with Capital Traction Discussing the probability of a mer- ger with the Capital Traction Company the committee held that the Capital Traction Company might be induced to merge provided a 7-cent fare were granted and an agreement could be reached in the matter of value of shares. This could be much more read- ily brought about under present condi- tions than when the stock of the Wash- ington Railway & Electric Company was selling at much higher prices. As an alternative, It is said, the chances are that the Washington Rail- way & Electric Company without pros- pect of relief will seek to abandon some of its lines that are necessary to the passenger traffic of the city; that a de- fault will follow on some of the sub- sidiary company's mortgages, that the condition of track and equipment will deteriorate and that eventually the fed- eral government may be obliged to come to the rescue and take over the property, when it would at once have to increase fares. August 2, 1919 Electric Railway Journal 255 Sacramento Northern Picking Up The Sacramento (Cal.) Northern Railroad, the reorganized Northern Electric Railway and affiliatea com- panies, for the first six months of oper- ation reported a balance of $58,411 after all deductions. This amount well bears comparison with the deficits re- ported by the companies before the reorganization. The total gross rail- way operating revenue was $668,957; and total expenses, much higher than normal and including $120,377 depre- ciation, amounted to $520,200. It was reported at the annual meet- ing that conditions under which the road had been operating were improv- ing and that a fairly satisfactory year might be expected. The warehouses are this year proving profitable, and the bountiful crops all along the lines of the company indicate an increased revenue from that source. The income statement for the six months ending Dec. 31 follows: Operating Income: Railway operating revenue. , . , $669,957 *Railway operating expense. . . 520,200 Net revenue operations $149,757 Auxiliary operations — revenue. $12,376 Au.xiliary operations — expense.. 1,520 Net revenue — auxiliary operations 10,855 Net operating revenue $160,612 Taxes assigned to railway operations.. . 28,550 Operating income $132,062 Non-operating income 17,554 Gross income $149,616 t Deductions 91,205 §Income balance transferred to profit and loss $58,411 *In railway operating expenses there is included depreciation on way and structures amounting to $120,377. t Deductions include $23,956 for amortization. S The income balance transferred to profit and loss $58,41,1 was used in amortization of an equal amount of the total of $160,000 reorganization committee expenses. Dallas Net Improving The gross earnings of the Dallas (Tex.) Railway for June increased $61,- 332 over June, 1918, but decreased $4,475 as compared with May, 1919, according to the Supervisor of Public Utilities. The railway operating ex- penses and appropriations increased $47,498 over June, 1918, and were $4,959 less than for May, 1919. The net earnings from railway operations for June, 1919, increased $13,853 and $483 respectively over June, 1918, and May, 1919. The total net earnings for June, 1919, showed an increase of $15,758 over the corresponding- month of last year and an increase of $990 over the previous month of this year. The total net earnings for June were at the rate of 4.98 per cent (annual basis) on the property value, and for the twenty-one months of operation ended June 30, 1919, 4.23 per cent as compared to the permitted returns of 7 per cent. The total car-miles operated in June were 605,052, an increase of 42,574 (or 7.6 per cent) over last year. The car- hours were 62,604, an increase of less than one-half of 1 per cent. Thus it will be observed that with practically the same car-hours operated, the car mileage was increased about 7i per cent. This was due to the speeding up of the cars, the miles run per hour in June, 1919, being 9.67 as compared to 9.01 in June, 1918. The passenger revenue was 29.6 cents per car-mile this year and 21.1 cents last year. The total passengers carried were 4,390,171 in June, 1919, and 3,025,555 in June, 1918, showing an increase in traffic of about 45 per cent. This material increase was due largely to the fact that jit- neys were still operating in June, 1918. The growth of the city, however, ac- counts for a part of this increase in tiaflic. Protests Increase in St. Louis Valuation In a plea on behalf of the receiver for the United Railways, St. Louis, Mo., before the Missouri State Board of Equalization and the new State Tax Commission, Morton Jourdan, attorney for the receiver, declared that 10 per cent of the gross receipts of the rail- way goes to pay taxes of some sort or other and that the company is the largest single taxpayer in the State. Mr. Jourdan asked the State bodies to refrain from making any increase in the tax assessment of the company's property. A year ago the State placed a valuation of $22,000,000 on the prop- erties of the United Railways for tax purposes. If the State board this year increases this valuation in the same proportion in which it has increased the assessment on real estate and per- sonal property, the United Railways would be required to pay taxes on a valuation $4,250,000 higher than that of last year. The attorney for the railway told the State bodies that things had gone from bad to worse with the property during the last year. The company had not earned encugh, he said, to meet its increased obli.gations. He urged the board to be mindful of the present high valuations of the property and of the financial distress of the company. St. Louis Results in May The second monthly report of RoUa Wells, receiver for the United Rail- ways, St. Louis, Mo., filed in the United States District Court, shows that the payroll for May was $297,772. For the last two weeks of April, the payroll was $250,063. Mr. Wells explained that the payment of back wages had been made during April and that other indebtedness was incurred then that did not come up in May. Total receipts during May were $1,449,343. This income added to the balance on hand, made the receipts aggregate $2,527,238. The total paid out was $2,380,039, leaving a balance on hand at the end of the month of 3147,198. Coupons on the St. Louis Railway bonds, due on May 1, were paid at that time. They totalled $42,750. Financial News Notes Note Extension at New Orleans. — In regard to the $4,000,000 of one-year 7 per cent notes of the New Orleans Rail- way & Light Company, New Orleans, La., which fell due on June 1, 1919, it is reported that many have been ex- tended for one year at the same rate of interest. Sharon Trolley Line Comes to Life. — The section of the former Norwood, Canton & Sharon Street Railway be- tween Sharon Corner and Sharon Heights, Mass., 5 miles in length, was scheduled to resume operation on July 24. Two 6-cent fare zones will be used and deficits will be met from the town budget. ■Would Issue Bonds to Pay for Cars. — The Berkshire Street Railway, Pitts- field, Mass., has applied to the Public Service Commission for approval of an issue of $74,205 of bonds, the proceeds to be applied toward the purchase of seventeen one-man cars costing $98,- 940. The remaining $24,735 of the pur- chase price will be paid in cash. Time for Deposit Extended. — The reorganization comittee of the Buffalo, Lockport & Rochester Railway, Roches- ter, N. Y., has given notice that the time for the deposit of first mortgage bonds under the plan of reorganization dated Jan. 20, 1919. have been extend- ed until Sept. 8, 1919. The National Trust Company, Ltd., Toronto, Ont., is the depositary. I. T. S. Issues Authorized.— The Ill- inois Public Utilities Commission has authorized the Decatur Railway & Light Company, Peoria, 111., a subsi- diary of the Illinois Traction System, to issue promissory notes to the amount of $40,698. The Quincy (111.) Railway, another subsidiary company of the Ill- inois Traction System, has been auth- orized to issue promissory notes in the amount of $104,919. Pascagoula Company Ordered Sold. — It is reported that the United States Court has ordered the sale of the property of the Pascagoula Street Railway & Power Company, Pasca- R'oula, Miss., and has appointed George P. Money as commissioner to conduct the sale. The appointment of a re- ceiver for this property was noted in the Electric Railway Journal of April 5. Offer Reported for St. Louis Control. — A report was current recently in St. Louis, Mo., that an off'er had been made to the North American Company for the 186,000 shares of the common stock of the United Railways, St. Louis, that the North American Company holds. This represents a majority of the common stock of the United Rail- ways. It is believed an effort is being 256 Electric Railway Journal Vol. 54, No. 5 made by some of the holding com- mittees to secure control of the com- mon stock. Change in Control of Maryland Com- pany.— The Cumberland (Md.) Elec- tric Railway and the plants of the Edi- son Electric Illuminating Company, together with allied corporations oi which George L. Wellington, formerly United States Senator, is head, will, it is stated, be taken over by a New York syndicate. Plans under consider- ation are said to provide for the linking of near-by towns by electric railway, forming a system including Cumberland, Elkins and Grafton, W. Va. Wants to Shorten Line.— The Mill- ville (N. J.) Traction Company has ap- plied to the State Board of Public Utilities for permission to abandon a portion of its tracks in South Millvillv; because the City Commission wants the corporation to pay $30,000 towards paving the streets in that section. The company claims that it has always operated at a loss in that locality, and that it is financially unable to carry out its share of the proposition. The city will oppose the application. Rehabilitation of Jackson Company. — It is reported from Jackson, Miss., that the attorneys representing the re- cent purchasers of the property of the Jackson Light & Traction Company (Electric Railway Journal of July 19) have applied to the Municipal Com- mission for a renewal of the company's franchise, which was declared forfeited prior to the proceeding in bankruptcy. At present the property is operated under temporary understanding, but the purchasers say that in order to re- habilitate the property It is essential to have a legal franchise. Reorganization Plan Approved. — It is reported that the minority bondhold- ers of the Sandusky, Norwalk & Mans- field Electric Railway, Norwalk, Ohio, have approved the plan of reorganiza- tion submitted by the majority bond- holders. Under this agreement the $7.57,262 of bonds are to be retired in favor of a $400,000 stock issue. The plan calls for an assessment of 10 per cent of the face value of the bonds to pay debts and provide working capital. The majority bondholders agree to pay $40,000 of the assessment. Tax Matters LInder Adjustment. — The Morris County Traction Company, Morristown, N. J., will appeal the de- cision of the Union County Tax Board in declaring certain rights-of-way tax- able. The company claims that the taxing of its gross receipts under a recent law exempted it from the pay- ment of a personal tax and that a right-of-way was personal property. The tax board has already granted the application of the company for exemp- tion from $34,400 of taxes on poles and tracks in Union County. Receiver for Miamisburg & German- town Line. — W. E. Hutton, Cincinnati, has been appointed receiver of the Miamisburg & Germantown Traction Company by .Judge Patterson of the Common Pleas Court at Dayton, Ohio. The appointment was made in the foreclosure suit in which Philip C. Swing, as trustee, is plaintiff, and the traction company, the Cleveland Trust Company, the Cincinnati & Dayton Traction Company and the Ohio Elec- tric Railway Company are named as defendants. The trust and traction companies are named as co-defendants because of having an interest in the property. Youngstown Receipts Not Sufficient. — The report of Street Railway Com- missioner W. L. Sause shows the loss during June in operating Youngstown (Ohio) street cars under a 5-cent fare to have been in excess of $24,000, and the stabilizing fund which governs the fares to have dropped to $22,887. Under the provisions of the service-at- cost ordinance the fares of the Mahon- ing & Shenango Railway & Light Com- pany shall increase each month this fund remains below $50,000. In creased receipts are reported under the 6-cent fare in effect since July 1, and the July report is expected to show a decided improvement over June. A deficit of $5,000 or $6,000 during July, however, is expected. Blares and Valuation at East St. Louis.— The East St. Louis (111.) Rail- way is having a complete physical valu- ation made of its East St. Louis properties on which it expects to base a petition for a higher rate of fare. The company was authorized in August, 1918, to charge 6 cents for one year and the petition under consideration is for a continuation of the 6-cent rate. The city of East St. Louis, it is said, will offer no objection to the proposed continued higher rate of fare. The valuation which is now being made, together with the findings of the War Labor Board, which now has under con- sideration a demand for increased wages by the men employed by the company, will form the basis of a peti- tion for a further increase if an in- crease in wages is granted as is expected. The Public Utilities Com- mission of Illinois has reserved its de- cision in the matter of continuing the present 6-cent rate. The company states that the physical valuation will be completed by Sept. 1. Electric Railway Monthly Earnings BANGOR RAILWAY & ELECTRIC COMPANY, BANGOR, ME. Period Im., May, '19 Ini,, .May, '18 1 2m., May, ■]<) 12m., May, '18 Operating Revenue $83,381 71,190 969.607 902,794 Operating Expenses *$44,837 *45.993 *627,125 *536,073 Operating Income $38,544 25, 197 342,482 366,721 Fixed Charges $20,438 19,875 242,777 233,238 CHATTANOOGA RAILWAY' & LIGHT COMPANY, CHATTANOOGA, TENN. Im., May, '19 Im., May, '18 12m., May, '19 12m., May, '18 $150,150 147,808 1,860,855 1,531,816 *$1 16,902 *1 15,601 *1, 457,790 *1, 315,437 $33,248 32,207 403,065 216,379 $22,163 22,296 269,667 356,565 Net Income $18,106 5,322 99,705 133,483 $1 1,085 9,91 1 133,398 1 140, 186 CLE^'ELAND, PAINESVILLE & EASTERN RAILROAD, WILLOUGHTY, OHIO Im., May, '19 Im., May, '18 5m., May, ' 1 9 5m.. May, '18 $54,063 *$36,753 46,226 *30,617 243,521 *171,126 206,022 *140,872 $17,310 15,609 72,395 65,150 $13,903 11,513 74,679 57,144 $3,407 4,096 t2,284 8,006 COMMONWEALTH POWER, RAILWAY' & LIGHT COMPANY', GRAND RAPIDS, MICH. Im., May, "19 $2,055,620 *$1, 318,044 $737,576 Im., May, '18 1,709,860 *1, 125,780 584,080 12m., May, '19 23,732.692 *15,622,825 8,109,867 12m., May, '18 20,509,341 *13,520,164 6,989,177 $556,307 $181,269 502,430 81,650 6,307,735 1,802,132 5,569,903 1,419,274 CUMBERLAND COUNTY' POWER & LIGHT COMPANY, PORTLAND, ME. Im., May, '19 $201,289 *$154,408 $46,881 $55,645 t$8,764 Im., May, "18 254,438 *183,761 70,677 70,343 334 12m., May, '19 3,060,868 *2,129,766 931,102 783,744 147,358 12m., May, "18 3,107,855 *2,159,311 948,544 843,734 104,810 * Includes taxes. fDeficit. J Includes non-operating income. EAST ST. LOUIS & SUBURBAN COMPANY, EAST ST. LOUIS, ILL. ' Period Im., May, '19 Im., May, '18 12m., May, '19 12m.. May, '18 Operating Revenue $340,613 337,079 4,366,314 3,841,814 Operating Expenses *$271,917 *240,069 *3,479,449 *2,766,053 Operating Income $68,696 97,010 886,865 1,075,761 Fixed Charges $69,976 68,084 876,089 798,300 Net tncome t$l,286 28,926 60,776 277,461 INTERBOROUGH RAPID TRANSIT COMPANY, NEW YORK. N. Y. Im., May, '19 $4,019,001 *$2,59l, 942 $1,427,059 Im., May, '18 3,524,432 *2,002,462 1,521,970 llm.,May,'19 39,294,196 *26,823,875 12,470,321 llm.,May,'18 37,208,118 *20,913,024 16,295,094 $1,631,677 tt$153,745 1,186,854 1377.373 16,624,228 tt3,61 1,573 12,366,041 14,420,658 LAKE SHORE ELECTRIC RAILWAY, CLEVELAND, OHIO Im., May, '19 Im., May, '18 5m., May, '19 5m., May, '18 $218,574 161,528 963,769 772,168] *$I64,200 *l 18,466 *744,148 *585,297 f$54,374 43,062 219,621 186,871 $35,784 36,002 179,368 181,005 $18,590 7,060 40,253 5,866 NASHVILLE RAILWAY' & LIGHT COMPANY, NASHVILLE, TENN. Im., May, Im., May, 12m., May, 1 2m., May, 19 I8'« 19 1 18« $264,678 232,266 3,1 14,376 2,522,800 *$201,16l * 1 49, 160 *2,206,544 *1, 617,542 $63,517 83,106 907,832 905,258 $39,297 40,514 476,660 489,350 $24,220 42,590 431,172 5,90.824 PORTLAND RAILWAY', LIGHT & POWER COMPANY, PORTLAND. ORE . Im., Im., 12m., 12m., May, May, May, May, 19 $71 1,453 620,2941 8,186,362 6,676,191 *$436,493 *369,387 *5,493,90l *4,065,I09 $274,960 250,907 2,692,461 2,611,082 $192,549 187,684 2,259,266 2,144,652 $82,41 1 63,223 433,195 466,430 REPUBLIC RAILWAY & LIGHT COMPANY, YOUNGSTOWN, OHIO Im., May, Im., May, 5m., May, 5m., May, $488,136 469,516 2,534,273 2,358,742 *$362,494 *341,744 *1, 842,155 *1, 727,085 $125,642 127,772 r692,ll8 631,657] $1 14,985 104,393 569,354 505,749 t$34,095 129,189 tl70,192 t J 68.061 August 2, 1919 Electric Railway Journal 257 Traffic and Transportation to the company, its desire in submitting the matter to the men themselves being to let the majority rule. Under the representation plan of the company it is the policy of the company to submit all similar problems to a vote of the men themselves. Rehearing in Transfer Case New York City Order Abolishing Transfers Goes Into Effect Pending Rehearing An order signed on July 29 by Public Service Commissioner Lewis Nixon of the First District of New York, granted the application of Corporation Counsel Burr of New York for a rehearing on the 2-cent transfer order made recently on the petition of Job E. Hedges, re- ceiver for the New York Railways, and set Aug. 4 as the time for the rehear- ing. The order did not stay the author- ization of the 2-cent charge, whic^i went into effect on the morning of Aug. 1. In his application Mr. Burr contended that the commission had no power to permit a charge for transfers, that the proceedings before the commission did not show any need for it, and that in making the order the commission had neglected to insert in it the points at which free transfers would continue to be given. Commission's Power Disputed The Corporation Counsel said that Commissioner Nixon in his memoran- dum accompanying the issuance of the transfer order "showed a disposition to ignore the power of the commission in case of the disintegration of the system to fix a joint rate order and makes it apparent that the order rendered was under threat or coercion of the United States District Court and to avoid a disintegration of the entire system with the claimed result of permitting sepa- rate companies each to charge a 5-cent fare." Mr. Burr continued. The city calls the attention of the com- mission to the further proceedings in the Federal Court in respect of the Eighth and Ninth Avenue railroad companies in re- spect of the alleged co-operation between the Federal Court and this commission with regard to the 2-cent transfer charge ordered ; in respect of the return of the Eighth Avenue line to its owners, plus the ccvert threat in the order for such return that if a stay be obtained on the 2-cent order made herein by the commission, a separate 5-cent charge for this line would be imposed, which threat directly chal- lenges the power of the commission to make a proper joint rate order over the Eighth Avenue line, a power that the com- mission clearly has both under section 49, subdivision 3 and subdivision 7 of the pub- lic service commissions law. Transfer Changes Announced Notices were sent out on July 26 by Lindley M. Garrison, receiver of the Brooklyn Rapid Transit Company, showing the points where transfers were to be issued free after the order of Commissioner Nixon permitting a 2- cent charge for transfers on the com- pany's surface lines became effective, on the morning of Aug. 1. The order of the commissioner excepted only points where the giving of free trans- fers is made compulsory by franchise provisions. Deputy Public Service Commissioner Glennon announced on July 31 that a hearing would be held on Monday, Aug. 4, on the application of the Brooklyn Rapid Transit Company for permission to abolish all transfers between surface and rapid transit lines. In Brooklyn there were 1008 free transfer points. Under the regulations of Mr. Garrison these have been re- duced to forty-nine. It has been esti- mated that the revenues of the company will be increased $1,200,000 a year by the transfer charges. Line Seniority to Continue in Kansas City By a majority of 150, trainmen in the employ of the Kansas City (Mo.) Rail- ways in an election held on June 26 decided to continue what is known as line seniority. Only three divisions showed a majority for the carhouse seniority plan. Nearly 1500 men voted. A thorough campaign was made throughout the system by the advocates of both plans, and meetings were held at which both sides of the issue were openly discussed. Line seniority has been the practice on the Kansas City Railways for many years. Under its operation, when a man begins work for the company, he goes to the division for which he has expressed a preference and his name is placed on the extra list. When a vacancy occurs on any line of that divi- sion he may accept that vacancy. When he once takes a line he remains on that line continuously, and any change he desires to make places him at the foot of the extra list. It was contended by some men that line seniority frequently worked a hardship, as time very often made im- portant changes in the desirability of certain lines as places to work. Had the carhouse seniority plan been adopted, men could have selected the runs they desired out of the division where they are employed according to their years of service with the com- pany, their runs to continue for a period of six months. At the end of that time the whole matter would again be thrown open and again selections could have been made, always accord- ing to years of service. At each six months period a man could change lines so long as the line he desired was operated out of the same division. Men who opposed this plan did it on the theory that it might force an un- desired change, and in the event of a consolidation of divisions might cause some men to lose good runs. The issue was submitted to a vote of the trainmen as being one for them to settle. Either plan was satisfactory Needs Ten-Cent Fare Pittsburgh Ten-Cent Cash and Seven- and-a-Half Cent Ticket Fare Not Expected to Be Sufficient Even before the 10-cent cash and 7h- cent ticket fare of the Pittsburgh (Pa.) Railways had been put into effect came a statement by one of the receivers that a straight 10-cent fare is imminent. The new fare went into effect on Fri- day, Aug. 1. The forecast of a still higher tariff was made last week by Receiver C. A. Fagan in Washington before the commission there investigat- ing the electric railway situation. Nothing less than a straight 10-cent fare will enable the company to meet its obligations, Mr. Fagan declared. The effect of the publicity the commis- sion's proceedings have given to the difficulties traction companies now face has been apparent in Pittsburgh through the absence of the public pro- test that might have been expected to follow such a statement. City Enters Protest The city of Pittsburgh has entered protest against the tariff that went into effect on Aug. 1, as a matter of course, but little expectation is entertained that the protest will be effective. Hear- ing on it will be held in Pittsburgh on Aug. 13. At this hearing will be presented, as was forecast in the Electric Rail- way Journal recently, the report of the commission of engineers who have been working more than a year on a physical valuation of the Pittsburgh trac- tion properties. The original plan was to use this valuation as a basis for future fare fixing. If this procedure is carried through, it means resump- tion, to some degree, of payment of interest and other fixed charges to se- curity holders, who have received no return from investments in Pittsburgh electric railway securities since the re- ceivers began to default payments reg- ularly nearly a year ago. Await War Board Award It is expected that the award of the War Labor Board in the wage dispute before that body will also be before the Public Service Commission at the same time. Reports from Washington last week indicated that the award might be expected by Aug. 2. The gen- eral expectation is that the men may receive their full demands, which in- clude a maximum wage of 60 cents an hour. Since the 7i-cent ticket rate went into effect, the Pittsburgh Railways is using metal coins. The coins are sold in fours for 30 cents. It is estimated that they will prove considerably cheaper than the pasteboard tickets heretofore issued. 258 Electric Railway Journal Vol. 54, No. 5 Zones Ordered in New Jersey Company and Commission Give Heed to Demand for Low Initial Fare— Test Period Starts Sept. 14 A temporary plan of zone fares for the Public Service Railway for an in- definite trial period was approved by the Board of Public Utility Commis- sioners of New Jersey on Aug. 1. Case Still Open The proceedings befoi'e the commis- sion under the plan for a zone system of fares not having been completed, the board was precluded from adopting any permanent plan at this time. The most pronounced objection of the board to the original zone plan was the im- position of the cost in such a manner as to result in a charge for the first zone mile at a higher rate than for any other zone mile. It is the opinion of the board that the trial of one of the plans proposed by the company on July 29, with such modifications as appeared to be necessary, will be helpful in the final determination of the feasibility of the plan ultimately adopted. The boai-d finds and concludes substantially as fol- lows: It will permit, subject to the following modifications, a schedule and tariff of rates to take effect Sept 14. 1919, based on a zone-mile system of fares filed as follows : 3 cents for a ride within a zone-mile in which the passenger boards the car ; 2 cents for a ride in each additional zone-mile or part thereof on the same car. The follow- ing rates shall not apply to passengers rid- ing only within the limits of the following zone: (a) the zone between Edgewater Perry .and Grantwood Junction, (b) tiie zone between Edgewater Perry and Bluff Road, 10 (o li 70 71 4 11 18 75 1 6 15 77 79 Aipril May June July August September October November December Jcinuoiry 1918 1919 TOTAL PASSENGERS CARRIED ON L. C. C. LINES WITH PROPORTION AT EACH RATE OF FARE dependent upon the grant of power before June 30, 1919, by the proper authority to increase fares which are now limited by statute or otherwise. Without the grant of such power by that date, the agreement is terminable upon one month's notice by either side. Under date of April 10, 1919, the highways committee stated that in the fiscal year 1913-1914 the total wage bill was £1,102,220 for operating 59,209,289 car-miles, whereas in 1918-1919 the amount was £1,888,600 for 48,052,801 car-miles. For the year 1919-1920 it was estimated that 53,000,000 car-miles would cost £2,421,- 250. War allowances to tramway men during 1918-1919 amounted to £180,000, and the estimate for 1919-1920 for the reduced number of men still on war service was £50,000. Continuing, the highways committee showed that the increase in operating expenses since 1913-1914 would be as shown in the accompanying table. Another factor which had to be considered was the urgent necessity for carrying out renewals of track and 1908) of two-thirds of a penny for each car-mile run, but the financial results of operation during the last six years did not enable provision to be made on this basis. During this period the available surpluses were paid into this fund. The general reserve fund on March 31, 1918, amounted to £74,667 as compared to £190,596 on March 31, 1914. The highways committee then observed that the esti- mates of expenditures (including renewals) for 1919- 1920 showed that if the present balance of the renewals and reserve funds (£392,000) was to be preserved, the revenue must be increased from £3,629,000 (the ap- proximate actual receipts for 1918-1919) to £4,668,000. This would be more than £1,000,000 in excess of the receipts for 1918-1919, which were £600,000 more than those for 1917-1918. If the assumptions on which the estimates were based were realized, it was anticipated that nearly one-half the extra revenue required would be derived by running an additional 5,000,000 car-miles August 9, 1919 Electric Railway Journal 273 and obtaining somewhat higher average receipts, leaving a sum of about £566,000 to be raised by other means. In order to obtain so large a sum it would be necessary to increase fares, but in considering the extent to which this was practicable the committee remembered that there is a point beyond which an increase in fares may cause a reduction of revenue. collection. As regards the workmen's fares, the annual loss on workmen's tickets will be reduced from £160,000 to £105,000 a year. Even with these changes the highways committee anticipates that it will be necessary to draw upon the renewals fund to the extent of approximately £150,000 in order to meet the expenditure of £371,480 proposed TYPES OF L. C. C. FARE RECEIPTS, WITH BOTH STAGE NAMES AND NUMBERS, TOGETHER V^ITH SERVICE NUMBERS Proposals, therefore, were recommended and adopted as of May, 1919, as follows: 1. That the average distance for Id. should be reduced from 1.8 miles to 1.5, with a single overlap in place of the present double overlap. This would involve each route be- ing divided into two sections to be traversed for a penny, four for 2d., six for 3d. and eight or'more for 4d. 2. That the following scale should be adopted for work- men's return tickets, and this scale should also be applied to the Woolwich route: a. — A 2d. ticket for a return journey over a stage of 2 miles (total journey, 4 miles). b. — A 3d. ticket for a return journey over a stage of 3 miles (total journey, 6 miles). c. — A 4d. ticket for a return journey over a stage of 4 miles (total journey, 8 miles). d. — A 5d. ticket above 8 miles (total journey), with trans- fer facilities. In regard to the revision of the ordinary fare stage, it was not deemed desirable to continue the system of dividing each penny fare stage into three sections. Since with shortened zones this would mean a reduction in the length of each section to 0.5 mile. Under the three-lap plan used before May, 1919, a large amount of revenue was being lost owing to the inability of con- ductors to collect all the fares. With the lengthening of the sections from an average of 0.6 mile to 0.75 mile, it is considered that a great proportion of the revenue earned will be collected. It also seems reasonable to expect more efficiency from the staff as a result of the reduction in hours, for which allowance has been made, and it is estimated that £40,000 a year will be forthcom- ing on account of the improved collection. Transfers Granted Only with Higher Fares Under the altered workmen's rates the average total distance which a workman can travel for 2d. return is reduced from 4.8 miles to 4 miles, or about 1 m.ile in excess of the distance covered by the new ordinary'2d. fare. The superseded charge for a workman's return ticket in excess of 4.8 miles was 3d. As now changed, this charge operates only between 4 and 6 miles, the fare being raised by Id. for each additional 2 miles or part thereof beyond the latter distance with a maximum of 5d. Transfer facilities are now granted for only 5d. return tickets. The increased revenue to be derived from the revised fares is estimated at £416,000. Of this amount £321,000 is expected from ordinary passengers, £55,000 from workmen passengers and £40,000 from improved fare to be incurred for renewals during 1919-1920. The latest fare revisions will be reconsidered in six months' time, when information will be available as to their financial results. As the London County Council Tramways sy.stem prints its own tickets, not more than a week's supply of the popular denominations :s made up. The printing plant adjoins the ticket department and is prepared to deliver new tickets within twelve hours. Contrary to common practice, the L. C- C. tickets are stitched rather than nailed together. The various changes in fares were accompanied by a standardization of tickets with the twofold purpose of serving the convenience of all concerned and of saving ORD L.C.C.T.— Way-bill of Route No. Djte 101 Car No ■ Scrvjc^ No, To - from M Z 0 V Id z n a — 0 3j 3d Lug. T.ck9tt ai sh8-i> abovo, Puncb, CanLolliQK MichiDO, .1/6 Cond,Ktor-» ivjiinture . ■■. Change r*ceiT»d TouJ Punch ropsuv CISH, &C frnifi IJon .MgB, L'-i £ luclor - I'unc 'ickela d. h, CancPll £ og M«c i. W»7.bill eheckH to 1 .> k.-t^ r^t.,m,^ b Pu.ich Clippms, Om In Pnucb Chpckst'i Signaluro Ow i:^-.- y,„«aMl.--,ifin.i«« STANDARD WAYBILL, OF L. C. C. LINES 274 Electric Railway Journal Vol. 54, No. 6- LONDON COUNTY COUNCIL TRAMWAYS (1119.1) DEFICIENCY in ORDINARY TICKETS .191 From HEAD OFFICE, 23 Belvedere Road, S.E. I To Conductor. paper. All tickets are 2i in. x H in. Since colored stock is so expensive, the most popular or penny ticket is printed on white paper. Most of the others are colored on the sides by the original 4-in. x 14-in. ticket strips being passed through inked rollers. In the near future this coloring may be done more effectively and cheaply by means of an aerograph process. The price of the ticket is usually indicated by a large red overprint alone or with a smaller black figure in addition. The overprint "S" means workmen's single, the "R" workmen's return or round trip. On all except- ing end-to-end tickets both stage numbers and stage names appear. The enormous number (1,750,000) of tickets printed and used daily makes it desirable to go further with the markings than the usual letters and serial numbers. Consequently the route or service num- ber is added. In some cases, several routes make use of the same ticket. The 4d. ticket is the simplest, as it is available for the longest ride on any route. Transfers within the L. C. C. area are confined to workmen's tickets. They do not necessarily give a longer ride for the money but off'er alterna- tive facilities. They are in- tended to per- mit a passen- ger to return in a car of dif- ferent "serv- ice" number { but not of different rout- ing) because the service used in the morning does not happen to be available for all or part of the after- noon hours. Return tickets are used in the same way. Return tickets are not given up for an exchange ticket but are cancelled by the conductor with an auxiliary non-counting punch. This saves special tickets and accounting detail. Formerly transfer tickets had overprinted letters which corresponded to certain days of the week in accordance with a code. It was found that this restric- tion caused too great a complication to make the trouble worth while. There is nothing to prevent the use of the return privilege on some other day, but in effect this is not a serious consideration because the passen- ger is simply postponing the use of a privilege. In any event, the transfer problem now counts for little. In addition to the several types of printed tickets shown, celluloid tokens are sold at face value to the post office, merchants, municipal departments and others in quantities of hundreds and thousands. How THE Ticket Department Works The ticket department is responsible for the daily replenishment of the conductors' ticket boxes as re- turned by the depots. Owing to lack of space the plan of having a separate bin for each conductor and of Dtpot On comparing the tickets returned Ijy you on 191 , with your cash taldngs and waybills, a deficit of (.rmb.,) d. tickets, numbered to to the value of : ; was ftiund. Any explanation you may liave to offer as to the deficiency must be given on tlie back hereof and forthwith returned to Head Office. J. K. BRUCE, Traffic Manager. 'EXPLANATION FORM FOR TICKET SHORTAGE L.CC. TRAMWAYS. SerWce No,, Conductor's Name ,, Roole No...... Car No... Jour- ney.. giving him his tickets from the same 10,000 serials cannot be followed, although it is considered desirable to do so. It is customary, however, to have conductors work off the remainders of their pads when the same box is returned to them on the third day. Each box contains the usual make-up of tickets, counting punch, special non-counting punch and waybill. In addition, the depot inspector may give the conductor 3s. 6d. for change. The standard waybill is shown on page 273. On this the clerk in the ticket departm.ent fills in only the col- umns covering "Identity No.," "Letter," "Quantity Is- sued to Conductor," and "Tickets Issued with Waybill to and from." The closing numbers or "First Numbers Returned" are written in by the conductor, and the "Quantity Sold" and money turned in are recorded by the depot inspector. The count is made in the presence of the conductor, who is at liberty to make up any shorts on the spot. When conductors made the extensions on the waybills themselves, errors were so frequent tltat the practice had to be discontinued. Con- ductors may hold on to their cash all day, but if they prefer they may "pay in" during their period of relief. The back of the "waybill is used by the conductor to fill in his terminal times and the number of each class of ticket used on the individual journey. The reference to "2d. Lug." is to a luggage ticket. This is a standard 2d. passenger ticket which is punched in the serial number instead of the stage to indicate that it is good for any dis- tance. The bottom of the waybill shows the space reserved for the signature of the conductor when the depot inspector gives him his punch and ticket box; the depot inspector's accounting of the money and other items received from the con- ductor; and the reports of the clerks in the ticket de- partment, including the record of punchings or clippings counted, if such count is made. At present not more than two dozen punches out of 2000 in daily use are checked by counting the punch- ings. Even this is more than in pre-war days when the conductors as a class had greater experience. If there is a discrepancy of four or more, a count is made. Particular care is taken to see that the register itself is not out of order. Part of the punches were purchased from the Bell Punch & Ticket Company after having been on a rental basis for some years, but repairs are still made directly by the manufacturer. In addition to the 2000 Bell punches there are 3000 hand punches of special design somewhat lighter than the Bell but without a seal. The Bell punches are reset to 0 and resealed daily; the hand punches have a series of dials like a gas meter and the numbering goes on indefinitely. The form used for the explanation of ticket shorts is sho^vn herewith. In the case of overs, the conductor First No3. Ust Nos. Id 2d 2d Return 3d „ 6d „ Id 2d 3d , 4d MEMORANDUM TO RE- LIEF CONDUCTOR FOR CHECKING PASSEN- GERS August 9, 1919 Electric Railway Journal 275 300/11)0-9, IS LONDON OODNTY COUNCIL TRAMWAYS CASH RETURN f1 91 1 10' "7 05 G' UlV. ■r655 91 ®2 Z9- A/rlv< 17' U>v* "7 05 3 !&■ Arrive »754 lO' Luv« r-736 ei ®4 54' Arrive ^QOO S3' li IS' ■»955 !&• -^9 09 11 6 67' Arriv L.(vc "1205 01 "/ 65' Art.. ^j2 54. 3,»' Lnn -1» •A»iri 6 ArW.a •Aijrv 8 Running Time Cotutlng Tiine 306 _ / H ELEVATED ^^HH "^^^ / DELAYS r, ■iiiiti s No. 16 TcMrft 3 1 \ ENVELOPE FOR RECORD SLIPS SHOWS LEAVING AN£) ARRIVING TIME FOR EACH TRIP ; BACK OF ENVELOPE. IS USED FOR EXPLANATION OF DELAYS addressed a personal letter to each motorman on the system, asking his support and earnest endeavor in giving safe and efficient transportation service to the people of Chicago during the war. At our company section meeting preceding the date of placing the recorders in service, the supervisory force listened to talks explaining the mechanism of the re- corders, the taking of the record slips and such other train data as were wanted, and how the results would be worked up and tabulated on reports to be posted in train rooms. A talk was also given which showed how coasting could be increased by proper operation by the motormen and by prompt, efficient work of the trainmen in unloading and loading passengers at sta- tions; and how increased coasting might be turned into a saving in power. Seven motormen, who were old in the service, efficient in the performance of their duties and well-liked by their fellow employees, were chosen as coasting instruc- tors. Each was assigned to a certain division of the system and he studied the conditions peculiar to that 278 Electric Railway Journal Vol. 54, No. 6 division. The instructors received instructions from the general superintendent, from their local superin- tendent and from the mechanical department. These seven men devote practically their entire time to the work. With this preparatory work completed, the recorders on the entire system were placed in service. Weekly reports showing the standing of the motormen on each division were posted. A substantial saving in power was immediately obtained due to the remarkable co- operation and interest of the motormen and trainmen. Chicago t Oak P&rk Elevated Railroad Co. NAME Doe, John. BRANCH Oak Park 955 KFV NO JAH. 1919 - FEB. 1919 MAP. 1919 OATC nUNNINC COASTINC nUNNINC TIME COASTING 1 2 3 4 6 e 7 4 3 1 5 01 5 12 421 5 2 7 49 5 426 1 9 3 ,0 ! 1 2 8,0 1 6 3,0 1 9 3,0 1 5 0,0 1 6 9,0 1 6 4.0 49 1 410 4 6 2 5 4 1 477 4 7 9 3 9 5 1 7 8,0 1 9 4.0 1 9 7 .0 2 0 4.0 1 9 4.0 21 5.0 ^-7-0^ ^ 47 2 5 4: 488 466 47: 47 ? 1 66.5 1 9 8.0 1 8 8 .0 1 7 5.0 1 88 0 2 0 4.0 2 8S"2 9 6 7 ,0 T 3255 1 3 .5 2 n f 2914 1 1 1 95 f 33.6 3 8.4- a 4 80 1 8 0,0 4 8 2 1 8 1.0 49 8 17 5 0 5 39 1 7 9 0 . ^482 2 1 4.0 3 5 13 1 2 8 9,0 5 3390 1 4 30 0 5 3e.7 4-Z.Z PER CENT 29 30 - 31 49 1 4 76 -3-09 1 7 20 1 9 2.0 1 3 844 5 1 4 1.5 T 12 7 8 3'- 5 Z 1 8 .5 T _ 37.Z CENT MOTORMAN'S RECORD SHEET SHOWS RUNNING AND COASTING TIME WITH PER CENT COASTING FOR WEEK AND MONTH There was a reduction in the maximum kilowatt-hours required during the rush hours, as well as a reduction in the total kilowatt-hours per day. This reduction in maximum kilowatt-hours in connection with reductions made along other lines, was sufficiently large to render unnecessary the providing of equipment to replace the power plant dismantled during the summer of 1917. Clerical Work Reduced to a Minimum The clerical work of figuring the coasting percent- ages, entering them on each motorman's individual record and getting out weekly reports showing the comparative standing of the motormen on each branch of the system, is taken care of by five clerks, the labor cost of keeping the records amounting to 50 cents per month per motorman. This work has been reduced to a minimum. Each motorman is provided with an envelope, 4 in. x 7i in., shovra in an accompanying illustration, for the day's work. He fills in the blanks at the top and enters the leaving and arriving times for Trip No. 1, Trip No. 2, etc. He removes a record slip from the coasting recorder for each trip, marks the number of the trip upon the slip and puts it in the envelope. Any unusual delays may be explained on the back of the envelope. When his day's work is completed, the motorman seals his envelope and leaves it with his dispatcher. It is then forwarded to the coasting department. The running time and coasting time are calculated and en- tered in the blank space beside each trip number, and the total running time and coasting time for the day are entered in spaces provided at the bottom of the en- velope. The envelope is now filed under the motor- man's name until the end of the week. After the week has passed the envelopes of each motorman are removed from the file and the running time and coasting time are entered on the motorman's record sheet reproduced. This sheet is placed in a split column adding machine which prints and adds the running time and coasting time and prints the totals for the week. The percentage of coasting for the week is then figured by slide rule and entered by hand. The sheets of all motormen operating on a given branch of the system are grouped together and a weekly report made out showing the standings of the men as to coasting, in order of achievement. Copies of this list are posted on the bulletin boards in the trainrooms and sent to the coasting instructors. The instructors then endeavor to assist those with low ratings. The instructors work with a spirit of assistance and help- fulness and not with a spirit of criticism and they ex- pect or ask a man to do any better than they themselves can do under similar conditions. First Year of Operation Shows Saving of 30,900 Tons of Coal The first year of the operation of coasting recorders ended Dec. 1, 1918. This period showed a reduction in the total consumption of electrical energy from 182,- 353,279 kw.-hr. to 161,191,080 kw.hr., a saving of 21,- 162,217 kw.-hr. over the previous year. In other terms, the consumption was reduced from 3.437 kw.-hr. per car-mile to 3.048 kw.-hr. per car-mile, or 11.3 per cent. Working the saving in kilowatt-hours into an equiva- lent saving in coal we find that 30,900 tons of coal were saved during the first year of operation of coasting recorders. As we do not separate the power for traction from the total output, the above figures include power for lighting, car heating and all miscellaneous uses, which are not affected by coasting. During the summer months of 1918 when no power was used for heating and a minimum was consumed for lighting and mis- cellaneous uses, the consumption in kilowatt-hours per car-mile was 13.3 per cent less than for the same period in 1917. This shows that if it was possible to segregate the power used for traction only, the percentage saving in power for traction would be still greater. The average coasting for the system was increased from approximately 10 per cent before the coasting recorders were installed to 35 per cent. The running time has not been changed to any extent, although some minor adjustments in the schedules have been made. Crews are more prompt and trains are run closer to schedule than before the coasting recorders were in- stalled. In securing this increased coasting and saving in power, one would naturally expect to find savings in equipment maintenance, brakeshoes, etc. While it is almost impossible to locate definitely the savings in equipment maintenance and to give figures, we are satisfied that the increased coasting has resulted in less wear-and-tear on car equipment which will be re- flected in maintenance costs. As an example, the number of brakeshoes used during the first year of operation with coasting recorders was 31,806 as compared with 40,421 for the previous year. This shows a saving of 8615 brakeshoes or 21.3 per cent. There was also a small reduction in car-miles operated, but the net sav- ing in brakeshoes was about 20 per cent. August 9, 1919 Electric Railway Journal 279 During the first year the maintenance cost of the coasting recorders has been very low. The cost of operation of the coasting campaign for the year has been obtained by including interest on the investment at 7 per cent, depreciation of the coasting recorder equipment at 10 per cent (which we consider high), the entire salaries of the coasting instructors, salaries of- the record clerks, cost of stationery and an estimated cost of the maintenance of recorders, which figure also has purposely been made high. After deducting the operating cost as thus found, the net yearly saving due to the coasting campaign is two and one-half times the total cost of the installation of- the coasting recorder equipment. Making American Citizens at Minneapolis Twin City Foreign - Born Employees Take Four Months' Course in Americanization to Be- come Citizens of the United States THE Twin City Rapid Transit Company was one of those to respond promptly to the request of the federal government that employers ascertain which of their employees were not citizens and co-operate with educational agencies in making citizens of them. The result was chronicled briefly in a news article on page 1185 of the issue of this paper for June 14. To supplement this note the following information has been secured from the company: Following the government's request the company, through F. A. Anderson, secretary of the welfare asso- ciation, sent out to all of its male employees cards, like that reproduced herewith, to be filled out and re- turned by those who were not citizens. Next a short talk was given the men who responded, in small gatherings, making plain to them that they should all be citizens of the United States and that if they did not wish to do this neither the Twin City Lines nor the United States was any place for them to remain. As a result every man who was not a citizen signified his desire to become such and when all the cards were returned the local Board of Education volun- teered to conduct classes to train the men for the duties of citizenship. Classes were organized early in January. For the trainmen these were held in the clubrooms at the various carhouses, and for the shopmen in a classroom fitted up at the shops. The track men were so scat- tered that they were referred to the community center nearest their homes, where classes were conducted by the school board. The initial enrollment in the Minne- apolis classes included 163 students and that in the St, Paul classes 275. Classes were held once a week, in the morning, the recitation taking up about forty-five minutes and the whole period lasting from one to one and one-half hours. The company co-operated by giving THESE GRADUATION EXERCISES VS^BRE HELD IN ONE OF THE ST. PAUL CARHOUSES 280 Electric Railway Journal Vol. 54, No. 6 the trainmen runs such that they could attend classes regularly. Two text-books were used, one furnished by the gov- ernment and the other by the school board. The work included a careful study of the United States Constitu- tion; of United States history leading up to and in- cluding the Declaration of Independence; of the three CLAS.S IN AMERICAN CITIZENSHIP AT MINNEAPOLIS forms of government under which we live, namely, municipal, state and national ; of the Senate and the House of Representatives, methods of election and func- tions; of the three departments of government, namely, executive, legislative and law enforcing, etc. The instruction lasted for a period of four months and early in June 125 men graduated from the Minneapolis classes and the following week a corresponding number from the St. Paul classes. Some of the men included in the original enrollment had previously made application for their second papers and received them before the classes were completed, The following questions are to be answered by all employees who are not citizens. 1. Name Age 2. Address 3. Have you taken out your first naturalization papers? 4. Have you made application for your second naturalization papers? 5. If you have not taken out your first papers, state what country you are a subject of 6. Will you join a class for the purpose of prepar- ing yourself for citizenship? REGISTRATION CARD FOR CITIZENSHIP CLASS, TWIN CITY RAPID TRANSIT COMPANY and others left the employ of the company, but the attendance throughout the classes was more than 75 per cent. The graduating exercises were held in the assembly rooms at one of the carhouses in St. Paul on June 19, as shown in the accompanying view, and some 500 of the friends and relatives of the men were present to witness the award of diplomas. Small American flags were distributed among the audience, and the exercises opened with the singing of the "Star Spangled Ban- ner." The Mayor of the city, President Lowry of the company, and several other influential men spoke and then all present took the pledge of allegiance to the flag. The diplomas given to the men signify a successful completion of the prescribed course and enable them to become naturalized citizens without the usual exam- ination. The diplomas were signed by Secretary of Labor Wilson, Commissioner of Labor Campbell, Chief Naturalization Examiner Coleman, and the superin- tendent of the city schools. Effect of Electrification Upon Signaling Railway electrification and its influence on signaling forms the basis of an interesting editorial comment published in a recent issue of the Electrical Review, London. In this discussion it is stated that while formerly British signaling was considered the best in the world, to-day it is outclassed by American. The main difference between British and American signal- ing is that the former is based mainly on manual opera- tion and human control, while the latter is based on power operation and electrical control. One of the reasons given for the slow progress in Great Britain is that on most British railways signaling is actually divided into two separate and distinct departments, one of these having to do mostly with the mechanical end of the work being assigned to one department, and the other having to do with the electrical being assigned to another department. Further, it often happens that the heads of these departments are responsible to dif- ferent main operating heads or possibly to the general manager himself. The result of this type of organiza- tion has not been fortunate. It is pointed out that with the advent of electrification the signaling work will necessarily have to be grouped under a single engineer, preferably one having had elec- trical training. It is further noted that the present direct-current track circuits will have to be changed to those of the alternating-current type, and that this change will involve the use of impedance bonds qf the general type so commonly used in this country. It is noted, however, that whereas bonds of very low impedance, one ohm or less, have proved quite satisfac- tory in connection with the heavy axles of the rolling stock used here, the conditions in England are not quite the same, as the rail-to-rail resistance of the axles of some of the light vehicles used there is high as com- pared with the resistance of the permanent shunt-circuit through the track ballast. It is added further that the manual block system under present traffic conditions is becoming very complicated, and that the time is ripe for a change to a simpler and more direct method of signaling. In fact, this latter phase of the question is becoming so important that the electrification of main- line signaling is beginning to seem a necessity, apart altogether from the general question of railway elec- trification. United States Consul-General Sammons, Shanghai, China, reports that the Shanghai Tramways have de- cided to build their own street cars, for which purpose a special building is to be erected. Operations will be- gin with fifteen cars for use on rails and seven for use in connection with railless operation. August 9, 1919 Electric Railway Journal 28i Getting the Personal Touch in Acci- dent-Reduction Campaigns Experience of Shore Line Shows that a Good Record Can Be Bettered by Enlisting Thor- oughgoing Co-operation ALTHOUGH the Shore Line Electric Railway, Nor- L wich, Conn., has had a very creditable accident record in the past, J. H. Cain, when he became superin- tendent of transportation of the company, knowing that united effort toward accident reduction is always productive of good results, about two years ago in- augurated a safety campaign the principal feature of which was the securing of greater co-operation on the part of employees. This he has brought about partly through the use of monthly circular letters giving data as to the results secured during the preceding months ACCIDENT STATISTICS SHORE LINE ELECTRIC RAILWAY 1917-1918 1918-1919 O « 03 < tfCM September... 41 1393 October 61 1112 November... 44 1065 December 50 1148 January 37 990 February.... 33 802 March 30 1067 April 27 1064 May 43 1205 June 42 1264 July 52 1520 August 28 1782 O 392.4 392.2 377.2 382.2 310.7 207.6 296.2 300.8 383. 1 332.2 362.4 365.4 Accidents per O (p O bC <= d => 5! O M -Ph 29.4 54.9 41.3 43.5 37.4 41 .2 28. 1 25.4 35.7 33.2 34.2 16.2 Accidents per 1443 1041 1165 1223 121 1 1099 1221 O 335.6 313.7 300.9 317.3 313.0 271 .8 301.9 S ^ 2 M =>. a- -Cl, 24.2 33.6 39.5 26.2 19.6 21 .8 23.8 = Q 10.4 11.2 15.3 10. 1 7.7 8.5 9.7 as compared with those of the corresponding months a year earlier. In addition, there is brief and interesting comment, analyzing the records and the conditions of operation during the months in question, with sugges- tions as to how the records can be improved. A "bogey" is set informally for each month so that performance can be compared with what in advance would seem to be reasonable in view of previous records, probable business conditions and predicted weather conditions. In his circular letters, Mr. Cain uses an informal style, is brief and to the point, and backs up the letters by personal co-operation directly and indirectly through the division superintendents. As an example, a recent circular letter is given below : CIRCULAR LETTER NO. 112 March 11, 1919. Monthly Accident Report for February is given below — February, February. 1918 1919 Collisions between cars 0 3 Pedestrians killed 0 1 Collisions with pedestrians 2 1 Collisions with vehicles 13 2 Passengers boarding and alighting from moving cars 4 7 Derailments and split switches 13 5 Miscellaneous , 1 5 33 24 Distribution to carhouses. Dayville 4 0 Greenville 9 9 South Coventry 0 0 New London 10 10 Saybrook 8 2 Westerly 2 3 33 24 Notwithstanding the fact that we went over our per- missible quota by two in the month of February, we still -40 u 10 q- o 0 70 ^bo \ccn 'ENT. ' PEI 1 1 ? MO 1 NTH i?!o2(2-^l!:5;lic. 292 Electric Railway Journal Vol. 54, No. 6 New York Commissioner Suggests Solution Financial and Corporate Housecleaning Followed by Service at Cost Is His Idea In a statement issued on Aug. 3 Public Service Commissioner Lewis Nixon replied to some of the attacks made upon him because of his 2-cent transfer order and his attitude toward the railroad companies. He also out- lined a plan for the reorganization of the companies which he thought would simplify operation, safeguard investors in the properties, and serve the public better than the present method. Mr. Nixon's plan for bettering the transportation situation is to place all of the lines under one management, or possibly two, by the separation of the surface and the rapid transit lines, the termination of all present franchises and the substitution for them of fran- chises to live only for fixed periods, and a flexible fare to be subject to the financial needs of the companies. He also suggested that the city have upon the directorates of the companies a representative to see that the public's rights were protected. As Mr. Nixon's ideas represent enlightened opinion on public utility matters among regula- tors and other public officials the statement that he made is published in full as follows: The recent decisions of the Court of Ap- peals have clarified the traction situation in a way which presents to city and State officials both duty and opportunity. Their duty is to promote tlie interests of the traveling public by insuring adequate facilities and service, and further avoid any recurrence of the present emerg-encies by just and equitable readjustment of the en- tire traction situation. It is to be regretted that statements made to the public have given the impres- sion that under any existing conditions the traction systems can fall into the hands of the city government. Those responsible for such statements know that the courts will protect property rights, thus safeguarding bondholders by receivers. And even when they know from their own previous state- ments that the city is unable to acquire such systems, except through confiscation or abandonment, both of which they know also to be impossible, they cannot promise cheaper or better conditions for the travel- ing public under their ownership. Such arguments follow a vicious circle very similar to the open charging of im- proper relations between public officials, who must be guided by their intelligence and judgment, and those seemingly favored. Suggests Solution of Problem The opportunity is that the relations be- between municipalities and railroads may be so readjusted that co-operation shall take the place of conflict, that flexible fares shall meet changing conditions, that both city and investors shall receive fair returns, and that the city may be able to establish municipal ownership or operation, or both, when it desires and is in a position to do so. The present situation is intolerable, and must have an early solution. The trans- portation systems are. some bankrupt, and others approaching bankruptcy. Their abil- ity to meet or even properly protect the necessities of passenger traffic is suspended or threatened. Those who deny this and do not try to furnish proofs, but rely upon vague insinuation, do not understand the facts as they exist, or prefer to leave the public in error. In so far as the transfer orders are concerned, they were based upon the fullest power on my part as well as a sense of justice to all concerned. Simply for purposes of controversy to question my power does no good. The courts will at- tend to that. My study of the question confirms my earlier conclusions. From the viewpoint of .the city, or the public and of the investor the solution of the present emergency must be along the following lines, which in the main repeat the views I have heretofore stated : 1. Each of the present transit systems to be simplified by the consolidation or merging of the constituent companies into one railroad corporation. Of course, it may be found desirable to have separate corpo- rations for surface railroads and rapid transit railroads, respectively. Personally, I trust to see such steps taken as will in- sure one corporation only, with which the city and the commission can deal, but this is a detail. 2. All holding corporations, so called (not railroad corporations), to be abolished. 3. Leases of roads to be terminated. 4. Perpetual franchises to be changed to franchises limited to fixed periods within city charter limitations, or to what are known as indeterminate franchises. 5. Values of properties to be agreed upon or arrived at by such means as will leave them unquestioned. 6. The city to have the option of acquir- ing the properties within a fixed period at the agreed valuation, plus the cost of addi- tions, extensions, and improvements. (It may be desirable to provide for amortiza- tion of purchase price out of earnings.) 7. A flexible fare to be established, whereby fares shall be automatically ad- justed to meet the cost of service, together with a reasonable return both to city and investors upon the agreed fixed valuations and upon the cost of additions, extensions, and improvements. The variation in fare lo be secured mainly by maximum and minimum limits in a surplus fund, the oper- ation of which shall be so simple that it can be taught to and understood by the pupils of our public schools. Traction Fares a Political Issue Ex-Governor Eugene N. Foss of Massachusetts, whose testimony before the Federal electric railway investigat- ing commission aroused comment be- cause of the sensational demand for public ownership combined with a re- turn to the 5-cent fare, has announced himself a candidate for the Democratic nomination for Governor at the forth- coming primaries. In a long statement Mr. Foss declares that the foregoing tenets will constitute his platform. He contends that no further need of in- vestigating electric railway finances in Massachusetts exists; that public con- trol has failed, and that no other method than municipal ownership ex- ists for solving the problem of electric railway revenue. Shore Line Resumes Service The Shore Line Electric Railway, Norwich, Conn., which operates 221 miles of line, was shut down absolutely for two weeks beginning July 16 be- cause of a strike of its trainmen. On Wednesday, July 30, however, the com- pany began operating in New London, spreading out from there gradually, using such men as it could obtain. On. Aug. 4 the company was giving full schedule in New London and out on the East Lyme road as far as Golden Spur, and had arranged to open up the main line from New London to Norwich, on an hourly schedule. The Amalgamated Association turned down every effort at arbitration, even plans suggested by the mediation com- mittee of the State Chamber of Com- merce and by the Mayor and a com- mittee of the Common Council of New London. The orignal proposal of the company for arbitration called for a jury of twelve men. This was before the strike. Later the company agreed to an arbi- tration board made up in the usual manner, one selected by the company, one by the men and the third appointed by Messrs. Taft and Manly, of the War Labor Board, but stipulated that if the board was made up in this way the findings must cover a consideration of the wage question coupled with the question of the ability of the company to meet any award. "The company fur- ther stipulated that if an award of an increase in wage was made it should only be effective when the arbitration board found that the company was in financial condition to meet it. Through the intervention of the me- diation committee, the company agreed to withdraw all restrictions as to the findings, provided the men would with- draw all restrictions and leave the dif- ferences up to a board of three, one selected by the men, one by the com- pany and the third by Governor Hol- comb of Connecticut. This proposal being refused, it was suggested that possibly the men might accept as the third man an appointment made by the Governor of Massachusetts. After finding that it was impossible to agree with the representatives of the Amalgamated Association on any fair and reasonable arbitration, the com- pany, as stated previously, began to secure such men as it could and start operations. Only a comparatively few of the old men stood by the company, and it is operating mostly with new employees who have to be broken in on each line. Increase for New Bedford Men The directors of the Union Street Railway, New Bedford, Mass., have acted upon the request of the men for an increase of wages, and the an- nouncement of the new wage schedule, giving an increase of 7 cents an hour, making a maximum rate now of 55 cents an hour, was made by the com- pany recently. The old wage scale ran from 41 to 48 cents an hour, according to the length of service, and the new scale runs from 48 to 55 cents. The increase is to date from July 20. The directors have likewise' prepared a statement directed to the public, giving forewarn- ing of a probable increase of fare, and in the statement there is an interesting discussion as to the various ways that may be adopted to obtain the necessary additional revenues to meet the in- creased costs of operation. The pro- posal of the company on fares is re- ferred to on page 304 of this issue. The old and the new rates in cents per hour compare as follows: Old New Rate Rate First six months 41 48 Second six months 42 49 Second year 44 51 Third year 45 52 Fourth year 46 53 Fifth year ' 47 54 Sixth year and after 48 55 August 9. 1919 Electric Railway Journal 293 Chicago Strike Settled Referendum, Orderly Conducted, Results in Acceptance by Men of Terms Previously Rejected at Noisy Demonstration A four-day strike of the surface and elevated trainmen in Chicago ended at midnight on Aug. 1 with the acceptance by the men of the terms previously offered by the companies. The car riders of that city now face the prac- tical certainty of higher rates of fare. The applications of the companies for increased rates were taken under ad- visement on Aug. 5 with the prospect of an immediate decision by the Public Utilities Commission. It was expected that the Chicago Surface Lines fares hereafter would be 7 cents with a 1- cent charge for transfers, and the ele- vated rates at least 8 and possibly 10 cents. Developments in Chicago came fast after International President W. D. Mahon arrived in the city to take charge of affairs for the striking con- ductors and motormen. After several conferences with Governor Lowden, the officials of the railways and the utility commissioners, Mr. Mahon arranged for a referendum vote by all the train- men on Aug. 1. The balloting lasted most of the day and it was early in the evening before the results were known. It was found that 12,334 out of the 15,000 union members had cast their ballots, and that while a majority of 665 of the Chicago Surface Lines union were opposed to the settlement terms, the elevated men favored their acceptance by a majority of 1,051. The end of the strike was, therefore, brought about by the narrow margin of 386 votes. Mr. Mahon at once notified the com- panies that the offer was accepted, and arrangements were made to get the men back to the carhouses so service could be started at midnight. With the start of business in the morning full service was effective. The terms that were finally accepted by the men were set forth in the Electric Railway Journal for Aug. 2, page 249. The maximum wages will be 65 cents on the surface and 67 cents for motormen on the elevated lines. The only concession made at the re- quest of Mr. Mahon was that the util- ity commissioners would endeavor to shorten the fourteen-hour limit of spread for swing runs and to hasten the preparation of new schedules on an eight-hour basis. Hearings before the Public Utility Commission began on Aug 4 and would have closed in a few hours but for the dilatory tactics of the city's lawyers. Mayor Thompson had taken no active part in settling the strike and was ap- parently willing that Governor Low- den should get the credit or blame for urging higher fares. L. A. Busby, president of the Chicago Surface Lines, stated that the settlement with the DE LUXE TRANSPORTATION AT TWENTY-FIVE CENTS PER PERSON union would add $7,685,790 to this year's payroll, and other additional ex- penses Would bring the total extra operating cost above $9,000,00. G. T. Seeley, assistant general manager of the elevated roads, said the new terms would swell his company's payroll to the extent of $2,435,515. President Busby presented figures giving the results of operation on the surface lines for eleven months ended June 30, 1919. These showed gross revenue of $33,540,882, an increase of $1,933,667; operating expenses and taxes of $25,899,109, an increase of $4,554,705. Cost of conducting trans- portation had increased $2,787,206 under the War Labor Board scale of wages. The average return on the pur- chase price of the road to the city, as fixed under the franchise settlement ordinance for eleven months, was 4.985 per cent. The Surface Lines' exhibits also showed that the total man-hours for trainmen during the past year was 25,- 775,000, and man-hours for other em- ployees who would benefit by the set- tlement to the extent of 17 cents an hour were 11,112,000. It was stated that additional maintenance costs the coming year would call for $600,000; increase in the damage reserve, $362,- 000; increased taxes, $374,000. It was estimated that $100,000 would be lost in traffic earnings before the regular patrons would use the commutation tickets which they bought from steam roads during the strike. Other addi- tions to expenses may be expected under the power contract and under a new agreement with the city for clean- ing and sprinkling streets. President Busby stated that the average wage for trainmen in 1914 was 30.16 cents, while the new contract would make it 64.87 cents, an increase of 115 per cent in five years. Hearing of the elevated companies' case revealed that a 10-cent fare with- in the city probably would be needed, and 7 cents additional for a local ride in the suburbs north and west. The statements showed an estimated loss of 40 per cent in traffic because of the higher rate. Mr. Seeley said a 10-cent local fare would mean a return of 7.12 on the valuation of $70,924,000; a 9- cent fare, 5.67 per cent and an 8- cent fare, 4.28 per cent — none of these figures allowing for depreciation. The deficit for July under the 6-cent fare, he said, was $61,884, and with the new increases in the payrolls the deficit would be $1,217,757 during the next six months unless relief were given. The new wage scales are effective from Aug. 6. It is likely that several months will be required to change the 280 time-tables used on the surface lines. One development in the settlement of the strike was the statement of Mr. Mahon that the union laws had been violated in calling the strike with- out a referendum. The opposition showed so much strength that it was conceded the election laws of the union would have to be changed to restore good feeling:. TWO VIEWS TYPICAL OF THE CONGESTION OF TRAFFIC IN CHICAGO DURING THE STRIKE 294 Electric Railway Journal Vol. 54, No. 6 Wage Compromise Accepted Seattle Men Vote Favorably on Offer of City Superintendent of Public Utilities By a vote of two to one the train- men of the Seattle (Wash.) Municipal Railway have voted to accept the wage compromise offered them by Thomas F. Murphine, superintendent of public utilities. A secret vote was taken at all city earhouses. The union's vote means that the carmen and their unions are willing to accept the wage schedule Mr. Murphine has recommended to the City Council, and that a possible strike has been averted. The offer of Mr. Murphine was to recommend to the Council the establish- ment of a minimum wage of $5 a day for new men, to be increased to $5.50 after ninety days, and to be further increased by a bonus of at least 5 per cent to be paid at the end of one year of uninterrupted service. The working day was fixed at eight and one-half hours. The original demand of the union was for a minimum of $5.50, to be in- creased to $6 after six months service. The opposition to Mr. Murphine's plan, which, by the way, had once been turned down, centered largely on the bonus plan. The men generally contended that the 5 per cent should be included by Mr. Murphine in his wage scale. Mr. Murphine has recommended that the Council approve the new wage scale immediately, and that it be retroactive to Aug. 1. Mr. Murphine believes that the bonus plan will work to tremendous advantage for the municipal railway system, as it will minimize the "turn- over," and serve the majority of the experienced trainmen. Mr. Murphine says: Tlie I'xperienced, careful niotorman will save hundreds of dollars annually in equip- ment, track, overhead, rolling- stock and damage claims. Our experience has shown that there is as high as 1 cent a mile dif- ference in power cost between a skilled and unskilled inotorman. • • • \\re realize that the wages proposed will only be sufficient provided the cost of living does not keep increasing, and we would earnest- ly recommend to the Council that some pro- vision be made for a survey of the living cost, with report made semi-annually, and in' case of further increase in cost of living, that the wages be proportionately Increased at said time. St. Louis Wage Arbitration Starts on Aug. 5 The increased wage demands of the carmen and other employees of the United Railways, St. Louis, will be heard by the Public Service Commis- sion of Missouri sitting as a board of arbitration on Aug. 5. Receiver Rolla Wells for the company estimates that the increased wages that are asked would cost the company an aggregate of $3,125,000 annually. Under a stipulation signed by Re- ceiver Wells and his attorney for the company, and the president and secre- tary of the union, both sides agree to abide by the finding of the commission. The men now get from 36 to 42 cents an hour, the average being about 40 cents. They demand a scale running from 55 to 65 cents, dependent on the length of service. The carmen propose that they get the increase to 65 cents an hour after nine months service. Most of the em- ployees have been in the service longer than nine months. An eight-hour day also is demanded, the work to be com- pleted in nine consecutive hours. Elevated Suggested for St. Louis Recommendations for extending a number of railway lines in St. Louis and the building of an elevated line to total 64 miles at a cost of approxi- mately $30,000 a mile are contained in a report submitted by C. S. Butts, city engineer of the department of public utilities of St. Louis, to Director Hooke of that department. According to Mr. Butts' plan the elevated road would start at Seventh Street in downtown St. Louis, run to the levee at Chateau Avenue to con- nect with the St. Louis Transit lines and the Missouri Pacific Railroad. Thence the "L" would go north to Cedar and Plum Streets and then west to Second. The grade would be about 2 per cent. Proceeding north on Second Street the line would connect with the Mer- chants' Bridge at Gratiot Street. From Gratiot Street to Fourteenth Street where the Missouri Pacific yards are situated, a double track is proposed. Aurora-Elgin Service Still Tied Up On the night of Aug. 4 the employees of the Aurora, Elgin & Chicago Rail- way, Wheaton, 111., were still out on strike. Service was discontinued at 4 a.m. on July 30. The demands of the men for an increase in wages of 41 cents an hour had been refused pre- viously by Edward C. Faber, general manager, on the grounds that the com- pany could not possibly meet the prop- osition. The first meeting of the striking em- ployees and the company was held on Aug. 3, but no settlement was reached. The strikers offered to return to work for a week with the understanding that they would again walk out at the end of that time if their increase demand, which has now been reduced to 21 cents an hour, was not granted. Mr. Faber refused to entertain the proposition. The reduction of the demand 6f 41 cents an hour increase in wages came as a result of the settlement made in Chicago with the elevated and surface men who had been on strike, and the increase now asked of 21 cents an hour brings the wages to the maximum scale of 67 cents an hour granted to the ele- vated motormen in Chicago. On Monday it seemed doubtful that any settlement of the controversy would be reached soon. In the meantime, many large manufacturing companies have been compelled to shut down their plants due to lack of power which was being purchased from the interurban, Third Windsor Strike Settled Service Resumed After Brief Walkout Caused by Discharge of Employee — ■ Men Agree to Arbitration The Sandwich, Windsor & Amherst- burg Railway, Windsor, Ont., has again resumed service after the third strike of its employees. The walkout, which was of two days duration, was pre- cipitated by the discharge of Motorman Ernest Thorn, who acted as the union's business agent. It came a few hours after James Gibbons, representative of the International Association, had con- vinced the men that their demands for a maximum rate of 60 cents an hour were impracticable and the second strike had been called off. Two Strikes in Short Period Following the second walkout of the men, when the by-law to grant the company a higher rate of fare failed to pass a special election of the voters of Windsor and Walkerville, the city Councils of the two towns asked the Ontario Railway Board to operate the line while the dispute was being settled. The chairman of the board stated that the demand for 60 cents an hour could not possibly be granted and that the board was determined to resume serv- ice even if it proved to be necessary to import outside labor. Developments on July 15 brought forth the threat from the board to cancel certificates of striking motormen and the threat was later carried out. All motormen are required to have a certificate entitling them to operate cars, which the board can cancel at any time when the men are deemed in- competent. At the same time it was stated that the conductors would lose their seniority rights, reducing them to the status of newly-engaged employees in case they applied for re-employment on any other line in the Province of Ontario under control of the Railway Board. The board's right to cancel certificates was disputed by the men and the matter was left by the local union to be taken up later by the Amalgamated Association with the un- derstanding that the action of the board in cancelling the certificates be referred to the Ontario Minister of Labor. Men Accept Offer The men were persuaded to accept the offer of the board and cars were started on practically all lines, to con- tinue only for a short period and then be halted by trouble precipitated by the company's action in discharging business agent Thorn. The men agreed to co-operate in giving full and efficient service after A. B. Ingram, vice-presi- dent of the Railway Board, had pro- vided for the reinstatement of Thorn. The settlement with the men provided that they should take cognizance of the provision according to which all differences will be arbitrated by a com- mittee, if possible, before a strike is called. August 9, 1919 Electric Railway Journal 295 Brooklyn Men Out on Strike Company Prepared to Give Service, but Operation Stopped Owing to Lack of Protection On the afternoon of Aug. 7 prac- tically all Brooklyn was walking. The employees of the Brooklyn Rapid Tran- sit Company struck on the morning of Aug. 5, but the company went ahead with operation so far as the men who remained loyal to it would permit. At the outset of the trouble service was almost normal, with prospect good that the full schedule could be resumed again very shortly. Then came a series of attacks on the property of the com- pany with the result that service on the surface lines was withdrawn en- tirely. The company says it was forced to this move by inadequate police pro- tection and contends that the strike could have been broken at its inception had the lines been properly policed. Statement op Issue Involved So much for the operating phase of the situation at the time of going to press. As for the issues involved they are very clear cut. Essentially they are a demand upon the company by outsiders for union recognition, an in- crease in the wages of trainmen to 75 cents an hour with proportionate in- creases for all other employees, an eight-hour day and the reinstatement of employees said by the strikers to have been discharged for their union activities. These demands were pre- sented to the officers of the company on the morning of Aug. 4. Company Won't Recognize Union Lindley M. Garrison, the receiver of the company, responded to the union committee that very afternoon. He referred incidentally to the matter of the wage demand and the proposed decrease in hours of labor, but his re- ply had to do mostly with the subject of union recognition, which it appears is the principal demand. The company is unmistakably opposed to dealing with any but committees of its own employees. Mr. Garrison's reply made his position plain on this point as fol- lows: Your association is fully informed of my attitude in respect of recognizing it. As you are aware, this matter was raised last March, and I then took the position, which I now maintain, that I will not deal with outside organizations, such as your asso- ciation. I am always willing to deal with the employees of the system in respect of any matters affecting" them, but I will not deal with outside organizations. Your frank statement that the second article of your demand, namely the recog- nition of the union, is your principal de- mand, rids the situation of any confusion, and as that is the main issue it is not use- ful to take up in detail the other matters adverted to in your communication. There could be no mistaking the pur- port of a statement like that. The union, such as it is, took up the gaunt- let and on the morning of Aug. 5 the strike went into effect so far as the union had been able to carry out the work of organization. That no great measure of success had attended the efforts toward unionization is borne out by the fact that out of 16,000 surface and rapid transit and shopmen the company estimated that certainly not more than 1500 had quit work. As stated previously, service on the morn- ing the strike was declarel was prac- tically normal, but the disorder which followed quickly, coupled with inade- quate police protection, made it seem best to the management to shut down some of the surface lines. The strike was in progress as this paper goes to press. New Wage Contract in Cincinnati A new contract between the Cincin- nati (Ohio) Traction Company and the union employees was ratified by the union, as a result of negotiations be- tween William D. Mahon, president of the Amalgamated Association, and Walter Draper, vice-president of the traction company. Under the new contract motormen and conductors will receive a maximum of 50 cents an hour, an increase of 2 cents; Other provisions are: Guaran- tee of $85 a month, an increase of $20, to substitutes; 37 cents an hour to greasers, trackmen, watchmen and car cleaners; incline plane men, 40 cents an hour, with ten-hour day; carhouse men of certain classes, 42i cents to 56 cents an hour; allowance for time used in making certain reports. The contract is retroactive to June 30. It is estimated that the new agree- ment will increase operating expenses of the company $125,000 to $130,000 annually. Providence Men Return at 56 Cents After nineteen days, during which practically all Rhode Island was with- out electric railway service, the strike on the lines of the Rhode. Island Com- pany, Providence, R. I., was declared off late on Aug. 6. It was planned to resume service on the system at 4 a.m. on Aug. 7. By a vote of 1311 to 107, the strikers accepted the compromise agreement en- tered into by their officials with the receivers of the road, providing for a maximum wage of 56 cents an hour, retroactive from June 1 to the begin- ning of the strike on July 19. The 1917 working agreement continues in force. The new maximum is an in- crease of 8 cents an hour over the pre- vious wage, but the nine-hour day is the same. The men in the original demands asked for 75 cents maximum. At one point in the negotiations the men agreed to go back to work for 55 cents an hour, but the receivers of the company held off. The following day an award of 60 cents was made to the Boston railway men, and the Rhode Island employees at once demanded 60 cents. In consequence the deadlock over the wage matter continued. An attempt to arbirtrate the strike was without success. On July 30 Judge Doran in the Superior Court issued a decree directing the receivers to sub- mit their case to a board of arbitration, but the men declined to accept the plan except on their own terms. Justice Blodgett entered a decree on Aug. 6 cleai^ing the way for operation of the lines by the receivers in case the strike was not settled by agreement. By this decree the order for arbitra- tion was vacated and the original de- cree appointing the receivers and or- dering them to operate the lines was reaffirmed. Backed with this decree the receivers were prepared to resume service on Aug. 7 if the men refused to yield, since strikers interfering with the cars would have been punishable for contempt of court. The Public Utilities Commission will be petitioned by the receivers to author- ize a new schedule of fares designed to bring in at once the revenue required to meet the increase in wages. May Use Gasoline Cars on Ohio Road. —Judge J. M. Killits, of the United States District Court, has instructed C. G. Taylor, receiver of the Sandusky, Norwalk & Mansfield Railway, to re- port on the advisability of using gaso- line cars. Opens Books to Public. — RoUa Wells receiver of the United Railways, St. Louis, Mo., has announced that here- after the books of the company will be open to the public. This is a part of his plan to increase the confidence of the public in the company. $10,000 for Railway Investigation. — The Board of Aldermen of St. Louis, Mo., has passed a bill authorizing the appropriation of $10,000 to investigate the affairs of the United Railways. The money will be provided for the use of the Circuit Attorney, who had an- nounced that his annual appropriation was insufficient to conduct an inquiry into the affairs of the railway. Freeport Men Threaten Strike. — Motormen employed by the Illinois Northern Utilities Company Freeport, 111., have threatened to strike unless their demands for a shorter working day and more wages are granted. They ask a wage increase from 361 cents an hour to 45 cents, an eight-hour day and time and one-half for work overtime or on holidays. Strike on Ohio Electric Unlikely. — A conference between representatives of the Ohio Electric Railway and its platform employees has been arranged to discuss a demand from the men for an increase in wages from 45 cents to 296 Electric Railway Journal Vol. 54, No. 6 60 cents an hour. Although conferences arranged previously have been post- poned from time to time and there has been some talk of a strike, the pros- pects for a settlement are said to be good. Suburban Settlement on Chicago Basis.— Cars of the Chicago & West Towns Railway continued to operate during the Chicago strike, but it was agreed that the Chicago wage scale would be accepted by the management. This, of course, would call for addi- tional revenue, and the Public Service Commission gave prompt hearing to the company's petition on that account. It was thought the zone rates on that system would range from 7 to 15 cents. Men in Oklahoma Organizing. — Workers in public utilities in all parts of Oklahoma, particularly city railway and interurban workers not heretofore unionized are being organized. The movement seems to be the outgrowth of the efforts at unionization at Muskogee, Tulsa and Sapulpa, which have tied up the electric railways and have re- sulted in considerable rioting and other disturbances. Tulsa Strike Settled.— The cars of the Oklahoma Union Railway, Tulsa, Okla., are running on schedule after a tie-up lasting more than five weeks. Recogni- tion of the union was the chief issue, no demand for higher wages having been made. Besides recognizing the union the company has agreed to rein- statement of the strikers, and to seni- ority preference. The company further agreed to drop damage suits against the members of the union. City Won't Build Cars. — A member of the Board of Trade of Toronto, Ont., suggested recently that as the city pro- posed taking over the Toronto Railway the city should build a factory to manu- facture cars. The sub-committee on transit advised against doing this, however, as enough new cars would not be needed continuously to warrant run- ning the factory. The committee ad- vised that such new cars as might be needed should be purchased from the regular car builders. Seattle Railway Construction De- layed.— Announcement of another de- lay in the operation of Seattle's munic- ipal elevated railway has been made. While it was hoped to have the cars running by July 15, it is now con- sidered likely that at least another month will elapse before the line can be put in operation. The delay is largely due to the fact that the steel guard rails which will supplement the timbered guard rails cannot be delivered and put in place until about Sept. 1. Wages Raised at Little Rock. — A wage increase of 11 cents an hour, a ten-hour day, and time-and-one-half for overtime have been awarded em- ployees of the Little Rock Railway & Electric Company", Little Rock, Ark., by the board of arbitration appointed to consider their demands. The in- crease, which is retroactive to May 22, raises wages from 30 cents and 35 cents an hour to 41 cents and 46 cents an hour. Although the award is less than the men had asked for they have accepted the new scale. Ford Car Nearing Completion. — Charles E. Sorenson, general manager of the Fordson Tractor Plant, recently made a statement before the Council of Detroit in regard to the new Ford gasoline railway car. Mr. Sorenson is quoted as follows: "The plans and the castings have been completed for our first car and 200 men are now rushing it to completion. As soon as it is done, we want to arrange with Mr. Bronner for a test on the Michigan Central tracks. We want to run this car to Chi- cagp in competition with the Wolverine." Authorized Settlement pf Claims. — Judge Dyer in the United States Dis- trict Court at St. Louis, Mo., has issued an order on the recommendation of Special Master Henry Lamm author- izing Receiver Rolla Wells of the United Railways, St. Louis, "to com- promise and settle" claims against the company that have ripened into judg- ments and in which appeals have been taken. Another order permits the com- pany to build an extended platform, a new repair shop and an ironclad frame building at an expense of $8,000. Will Resume Service in Amarillo. — Electric railway service will be re- sumed in Amarillo, Tex., after having been suspended for several months. Negotiations have been under way since February between the City Com- mission and the oflScials of the Amarillo Street Railway and an agreement has been tentatively reached whereby serv- ice will be resumed. Increased fares will be granted. In return the rail- way agrees to put its track and rolling stock in first-class condition and main- tain better service than it gave before. Worcester and Springfield Wages to be Arbitrated. — An agreement to ar- bitrate the questions at issue between the employees and the managements of the Worcester Consolidated Street Railway and the Springfield Street Railway, both of Massachusetts, has been reached. The men demanded $5 a day and an eight-hour day. The board of arbitration consists of H. B. Endicott of Boston, chairman; J. H. Vahey, representing the carmen; and Bentley W. Warren and C. V. Wood, i-epresenting the companies. Hearings have already begun. Manchester Wage Arbitration Begun. —Claims of the employees of the Man- chester (N. H.) Street Railway for an increase in wages were presented on July 28 to a board of arbitration com- posed of Charlton Ogburn, represent- ing the War Labor Board; P. F. Sulli- van, formerly president of the Bay State Street Railway, and James H. Vahey, Boston, attorney for the em- ployees. The men contend that they are entitled to the same wages as those granted employees of the Boston Ele- vated Railway by the War Labor Board. The company argued that any increase would have to be borne by the public in the shape of higher fares. New Albany Scale Accepted. — By a vote of 563 to 525 the employees of the Albany and Troy divisions of the United Traction Company, Albany, N. Y., have voted to accept the offer of the com- pany of 45 cents an hour, to date from July 1. The company will pay to new employees 41 cents an hour for the first six months of service, 43 cents for the second six months, and 45 cents an hour thereafter. Most of the motormen and conductors in the employ of the company will receive the 45-cent rate, which is an advance of 5 cents an hour over the old scale. The new scale also provides for 61 cents an hour for fore- men in the carhouses, 51 cents an hour for first-class carpenters and electri- cians, and 43 cents an hour for helpers, Memphis Wages an Issue. — Because of the absence of T. H. Tutwiler, re- ceiver and general manager of the Memphis (Tenn.) Street Railway, presentation of the new schedule of wages asked by motormen and con- ductors has been deferred until Aug. 7. The contract with the union expired on Aug. 1. The men have been receiving a minimum of 36 cents an hour and a maximum of 40 cents an hour depend- ing upon the number of years they have been in the service. They will ask that the maximum be increased to 75 cents an hour, with 10 cents an hour addi- tional for motormen operating cars equipped with hand brakes. It is said that no significant changes in working conditions will be asked. New Appointee to Massachusetts Commission. — Levi Greenwood, Gardner, Mass., president of the State Senate, was nominated by Governor Coolidge as a member of the special commission to study the street railway situation in the State and report at a special meet- ing of the Legislature next November, Mr. Greenwood will take the place of Oliver Prescott, New Bedford, who was nominated by the Governor but who found it impossible to give his time to the work. The executive council has confirmed all the nominations for the special commission. These include Mr, Greenwood, Robert F. Herrick, Milton; Charles G. Washburn, Worcester; George W. Anderson, Boston, and James L. Doherty, Springfield. Spartanburg Strike Settled. — Em- ployees of the South Carolina Light, Power & Railways Company who went on strike on July 3, tying up railway service in Spartanburg, S. C, returned to work on July 19 after an agreement had been reached between the strikers and officials of the company. The men had stood out for a nine-hour day. This the company agreed to put in effect as soon as possible. Under the agree- ment which has been signed the wages of motormen and conductors are placed at 37 cents an hour for the first six months, 38 cents an hour for the sec- ond six months period, 39 cents an hour for the second year, with an ad- vance of 1 cent an hour for each addi- tional year up to a maximum wage of 42 cents an hour for those who have been in the company's employ for five years or more. The wage scale of car- house and shopmen has been raised 20 per cent. August 9, 1919 Electric Railway Journal. 297 Financial and Corporate to $80,000 been met. The statement says further that if the company on Jan. 1 had turned the property over to the employees, the latter would have had to assess themselves $173,996 to make good the losses up to June 30. Wants Taxes Remitted Pittsburgh Railways Seeks Aid of Court Toward Relief from Municipal Burdens The receivers of the Pittsburgh (Pa.) Railways have asked the United States Court to relieve them of the obligation to pay municipal taxes. The request is made in an answer filed to a petition of the city of McKeesport seeking to have the receivers ordered to pay $10,- 000 due as a license task under an old franchise. From now on the receivers intend to take the position that remission of such tax claims should be considered only equitable on the part of municipal- ities making them, it was stated at their office on the day the answer was filed. The desire of the receivers is to impress upon public officials that it is absolutely impossible for them to pay political subdivisions what they claim and also pay for proper service to the public out of present revenues. The company has paid no taxes, li- cense claims, bridge tolls or bills for street cleaning or other similar work since the first of the year, and the re- ceivers hope to establish that relief from such expenses is only a just con- tribution on the part of municipalities toward the cost of maintaining an es- sential service that cannot be made to pay for itself through the fare box. The answer of the receivers declares: A community expecting transportation service must recognize that such service can continue only as Jong- as the revenue derived from the fares is sufficient to pay the costs of service, including all repairs and maintenance charges, a fair return on the capital actually employed in furnishing the service, and for all taxes and municipal charges. The receivers' contention in this matter may be presented by means of an argument that such a municipal tax as McKeesport is attempting to levy is not reasonable. The answer, while ad- mitting that the receivers may lawfully be required to pay any reasonable tax, sets forth that there is no evidence that the claim made is "reasonable." The railway traverses fifty or more municipalities, many of which levy a license tax or some other form of tax which has constituted a considerable drain upon the company's revenues. Abandonment Threatened The Knoxville Railway & Light Company, Knoxville, Tenn., has given formal notice that it declines to lay a double-track car line on Morelia Ave- nue, and also declines to agree to pay for the paving between the car rails on that avenue and on Pershing and Chickamauga Avenues. It proposes to take up that part of the Oakwood and Lincoln Park line "in order* that these improvements may proceed." These matters are discussed in a letter written by C. H. Harvey, presi- dent of the company, to Commissioner John W. Flenniken, in reply to a letter from Commissioner Flenniken request- ing that the paving work be done by the company. Mr. Harvey asserts that the rights-of-way grants contained no provision in regard to paving. He then states that his company is in no finan- cial position to do the work, even though it be required to do so, and that it certainly can not do it "as a gratuity." In conclusion he said: It seems unnecessary to say to your hon- orable commission that this company would not lightly propose to abandon a part of what has always been considered one of its best lines of railway, and it does so at this time only because of the practical impos- sibility of doing what is asked of it in the premises, and because of the serious ex- igencies from a financial standpoint which are confronting and pressing in upon it. Dismantlement Stopped The authorities of Randolph and Stoughton, Mass., have stopped the dis- mantling of the Bristol & Norfolk Street Railway by Edward Cohen, who purchased the road for junk. The selectmen of the two towns have or- dered Mr. Cohen to furnish a bond in the sum of $25,000 to insure the town against accidents. Mr. Cohen is to leave the highways of the town in as good condition after the rails are taken up as they are at the present time. The movement started by residents of both towns to purchase the road by subscription is meeting with some suc- cess. Shore Line Affairs Reviewed Edward M. Day, counsel for the Shore Line Electric Railway, Norwich, Conn., has filed with the Public Util- ities Commission a petition asking ap- proval of the company's plan to sell its franchises, privileges and rights to gen- erate and distribute electricity, to the Eastern Connecticut Power Company, with headquarters in Norwich. ' The Eastern Connecticut Power Company was organized by the late Morton F. Plant, who was also principal owner of the Shore Line Electric Railway. R. W. Perkins, president of the Shore Line Company, on July 23 issued the following statement concerning the company's finances : The gross earnings for six months in all departments, $820,832.35; gross operating expenses, $847,359.26; deficit exclusive of taxes $26,526.91. The taxes amount to $35,- 406.41, making the total loss $61,933.32. Rentals amounting to $112,063.43 for six months have not been earned, nor has the interest on bonds amounting $535,336 Loss in June Boston Elevated Railway Ran Behind Half Million for Last Month of Six-Month's Period The Boston (Mass.) Elevated Rail- way sustained a net loss from June operations of $535,336. This does not include any back pay for which the road is liable under recent wage in- creases. The net loss for May was $324,002 and that for April, $316,392. It should be stated, however, that one of the reasons for the larger deficit for June was the excess of track and car repair work, above a fair monthly average, which was necessarily per- formed. In other words, the bulk of this work is done in the warm summer months, whereas from an accounting standpoint the expense can properly be pro-rated over the full year. The detailed financial statement of operations for June, as made public by- the company, follows: Receipts. From fares $2,261,498 From operation of special cars, mail pouch service, express and service cars 11,653 Prom advertising in cars, on transfers, privileges at sta- tions, etc 23,781 From other railway companies for their use of tracks and facilities 3,962 From rent of buildings and other property 6,259 From sale of power and other revenue 7,314 Total receipts from direct opera- tion of the road 2,314,468 Interest on deposits, income from securities, etc 7,417 Total ?2,321,886 Cost of Service. Maintaining track, line equipment and buildings $519,782 Maintaining cars, shop equipment, etc 213,621 Power (including 20,775 tons of coal at $5,299) $110,106 280,883 Depreciation 167,000 Transportation expenses (includ- ing wages of car employees, car house expenses, etc.) 807,901 Salaries of administrative officers 7,583 Law expenses, injuries and dam- ages and insurance 94,619 Other general expenses 82,568 Total operating expenses (of which $1,282,490 wages) $2,173,961 Taxes, proportion 82,453 Rent for leased roads (exclusive of subways) 216,016 Proportion of rent of subways and tunnels to be paid to the city of Boston, exclusive of Cambridge subway, owned by the B. E. Ry 126,373 Interest on Boston Elevated bonds and notes 136,978 Miscellaneous items 4,443 Proportion of dividends under acts of 1918 116,997 Total cost of service $2,857,223 Net loss $535,336 Revenue passengers 28,386,561 Receipts per revenue pas- senger 8.176 cents Cost of service per revenue passenger 10.065 cents (of which labor cost 4.518 cents) 298 Electric Railway Journal Vol 54, No. 6 Slight Improvement in April Revenues Increase in Cost of All Items of Expense Still Reflected in Association Compilation Returns compiled by the information bureau of the American Electric Rail- way Association for the month of April, 1919, indicate a slight improvement in electric railway operating conditions over the same month of the previous year. In all, the association compila- tion consists as usual of eight tables, one of which is reproduced on this page and the other seven on page 299. Table I shows a comparison of the statistics for forty-two companies, and Table II the same figures on a per car- mile basis. . Operating Revenues Up 19.53 , Per Cent Referring to Table II it will be seen that operating revenues increased 19.53 per cent. This increase, however, was offset by a still larger increase in operating expenses. The result is a net revenue from operation of 9.85 cents per car-mile in 1919, as compared with 9.70 cents in 1918, an increase of more than li per cent. These net figures, of course, do not take account of taxes and other deductions from net. Taxes in 1919 amounted to 2.45 cents per car-mile, and fixed charges to 7.09 cents per car-mile, which when deducted from the net revenue of 9.85 cents leaves a return of 0.31 cent, as com- pared with 0.89 cent in 1918. However, taking the non-operating income and net return from auxiliary operations into account, the net income is 3.05 cents per car-mile as compared with 2.76 cents for 1918, an increase of more than 10 per cent. The ratio of railway operating ex- penses to railway operating revenues shows an increase of 7.42 per cent, the operating ratio for 1919 being 71.92 as against 66.95 for 1918. Great Slump in South As in the past, the returns from both city and interurban companies have been classified according to the follow- ing geographic grouping: Eastern District — east of the Mississippi River and north of the Ohio River; Southern District — south of the Ohio River and east of the Mississippi River; Western District — west of the Mississippi River. Further analyzing Table II according to this grouping it will be seen that the Southern District experienced the greatest slump, its net revenue drop- ping 9.33 .per cent. Despite this fact, this district makes the best showing of all, its net income being 5.14 cents per car-mile as compared with 2.92 cents for the East and 2.31 cents for the West. The operating ratio for the South increased from 59.68 per cent in April, 1918, to 68.35 per cent in April, 1919, while for the West the operaing ratio increased from 62.81 to 68.84, and for the East from 72.59 to 75.22. Table III gives the operating ex- penses divided up among the several departments while in Table IV the ex- penses per car-mile of these depart- ments are shown. Sixty-four companies are represented and analysis of their expenses contributes to a better under- standing of the returns in Tables I and II. The increased cost of materials is strongly reflected in the way and struc- tures account. The cost in 1919 was 3.59 cents per car-mile as compared with 2.29 cents for 1918, an increase of 56.76 per cent. The cost of mainte- nance of equipment increased 32.43 per cent, from 2.55 cents per car-mile in 1918 to 3.37 cents in 1919. These ac- counts, of course, include wages, but they reflect the high cost of materials also. Wage Decisions a Factor The effects of the War Labor Board decisions is strongly reflected in the conducting transportation account, which shows an increase of 30.33 per cent, from 9.10 cents per car-mile in 1918 to 11.8G cents in 1919. Referring further to Table IV, the West shows the largest increases in the cost of labor and materials, although the increases in these items are pretty general throughout the country. In the way and structures account, the percentage increase for this district was 72.56 per cent as compared with 53.90 for the East and 37.63 per cent for the South. The South shows the largest increase in the cost of equip- ment, the percentage increase being 46. >7 as compared with 45.64 per cent for the West, and 22.38 per cent for the East. The Eastern District shows an in- crease of 35.33 per cent in the con- ducting transportation account as com- pared with 28.18 per cent for the South and 25.14 for the West. The income statement of 121 electrK railways for the month of April, 1919, is shown in Table V. Table VI shows the same statement on a per car-mile basis. Table VII is a detailed statement of the operating expenses for April, 1919, of 140 companies, and in Table VIII the same statement is shown on a per car- mile basis. The most interesting of these is Table VIII, in which the operating expenses per car-mile are divided among the main operating departments, way and structures, equipment, power, conduct- ing, transportation, etc. Power and Traction Deal Pending While admitting that negotiations of sale are pending, James A. Mc- Henry, the heaviest stockholder in the Edison Electric Illuminating & Power Company, Cumberland, Md., and the Cumberland Electric Railway, denies the report that the properties have been sold to a New York syndicate, as indicated in the issue of the Elec- tric Railway Journal for Aug. 2, page 256. Mr. McHenry has declared that should the deal go through the light and power company and the railway would go together. The Edison com- pany's plant at Cumberland furnishes power not only to the city but for elec- tric railway service and to operate the mines in Georges Creek, Alleghepy County. The proposition is that a company of capitalists, known as the West Vir- ginia Power Company, may acquire these two properties of the Western Maryland Railway to Elkins, W. Va. The plan calls for connecting up all the towns by electric railway, forming a system between Cumberland and Elkins and Grafton. If this project should go through, the new company will take over, own and operate all the light and power plants along the West- ern Maryland Railway between Cum- berland and Grafton, inclusive, and ultimately connect up all intervening towns with these two cities by electric railway, thus forming a loop extending practically from Grafton to Cumber- land. table I— income statement of forty-two electric railways for APRIL, 1919, COMPARED WITH APRIL, 1918 United Statc-s East South West 1919 1918 1919 1918 1919 1918 1919 1918 Operating revenue $7,338,225 $6,104,285 $3,630,990 $2,905,025 $1,173,254 $1,007,223 $2,533,981 $2,192,037 Operating expenses 4,086,718 2,731,393 2,108,873 801,926 601,126 1,744,486 1,376,719 i%Net operating revenue 2,060,420 2,017,567 899,597 796,151 371,328 406,097 789,493 815,218 Net revenue: Auxiliary operations 454,750 380,599 209,724 155,038 186,347 168,167 58,679 57,394 Taxes 402,230 266,785 188,374 98,952 94,812 146,431 119,044 Operating income 2,003,002 1,995,836 842,536 762,815 458,723 479,452 701,741 753,566 Non-operating income 118,135 1 1,039 90,805 527 190 231 27,140 10,281 Gross income 2,006,875 933,342 763,438 458,913 479,683 728,881 763,847 Deductions from gross income 1,482,921 1,433,086 671,367 633,429 277,415 272,041 534,139 527,616 Net income 573,789 261,975 130,020 181,497 207,642 194,742 236,231 Operating ratio (per cent) 71.92 66.95 75.22 72.59 68.35 59.68 68.84 62.81 Car-miles operated 20,924,733 20,805.676 8,951,370 8,893,248 3,533,390 3,503,584 8,439.973 8 408,844 Aupust 9, 1919 Electric Railway Journal 299 TABLE II— INCOME STATEMENT IN CENTS PER CAR-MILE FOR FORTY-WOO COMPANIES SHOWN IN TABLE I, FOR APRIL, 1919, COMPARED WITH APRIL. 1918 * . — United States • ■ East . South . — West — Per Cent Per Cent Per Cenl 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase 1919 1918 Operating revenue 35.07 29.34 19.53 40.56 32.67 24.15 33.20 28.74 15.52 30.02 26.07 Operating expenses 25.22 19.64 28.41 30.51 23.71 28.68 22.70 17.16 32.28 20.66 16.37 Net operating revenue 9.85 9.70 r.54 10.05 8.96 12.15 10.50 11.58 9.33 9.36 9.70 Net revenue from auxiliary operations. 2.17 1.82 19.21 2.34 1.74 34.48 5.27 4.80 9.79 0.70 0 69 Taxes.... 2.45 1.93 26.95 2.98 2.12 40.56 2.80 2.70 3.70 1.75 1.43 Operating income 9.57 9.59 O.'Jl 9 41 8.48 10.97 12.97 13.68 5.20 8.31 8.97 Non-operating income 0.57 0.05 1,040 1.01 0.33 0.12 Grossincome 10 14 9.64 5.20 10.42 8.48 22.87 12.97 13.68 5.20 8.64 9.09 Deductions from gross income 7.09 6.88 3.05 7.50 7.02 6.83 7.83 7.76 0.90 6.33 6.27 Netinoome 3.05 2.76 10.51 2.92 1.46 100.00 5.14 5.92 13.17 2.31 2.82 Operating ratio 71.92 66.95 7.42 75.22 72.59 3.62 68.35 59.68 14.53 68.84 62.81 9.60 Car-miles operated 20,924,733 20,805,676 0.57 8,95 1,370 8,893,248 0.65 3,533,390 3,503,584 0 85 8,439,973 8,408,844 0 37 NOTE — Figuresin i(a/ic denote decrease. Per Cent Increase 15. 15 26.26 3.51 1.44 22.37 7.56 1.75. i.Ofj 0.95 18.09 TABLE III— OPERATING EXPENSES OF SIXTY-FOUR ELECTRIC RAILWAYS r OR APRIL, 1919, COMPARED WITH APRIL, 1918 . United States • . East . South • West- 1919 1918 Operating expenses $6,430,938 $4,916,258 Wayandstructures 860,688 547,444 Equipment 808,468 607,719 Power 971,099 787,421 Conductingtransportation 2,846,776 2,175,485 TraflBc 32,146 34,452 General and miscellaneous 877,404 768,826 Transportation for in vestment — Cr 6,012 5,089 Car-miles operated 23,992,103 23,877,521 , *Includes J40,369 depreciation not divided among sub-accounts. 1919* 1918 1919 1918 1919 1918 $3,269,378 $2,473,254 $1,035,944 $765,198 $2,125,616 $1,677,806 492,852 318,734 118,365 84,739 249,471 143,971 431,756 351,461 126,128 84,851 250,584 171,407 543,330 459,334 89.850 45,874 337,919 282,213 1,303,195 959,940 563,853 435158 979,728 780,387 11,878 16,012 2,635 2,570 17,633 15,870 445,998 367,812 135,1 13 112,006 296,293 289,008 59 6,01S 5,0.50 10,540.726 10,491,224 4,625,860 4,585,201 8,825,517 8,801,096 TABLE IV— OPERATING EXPENSES IN CENTS PER CAR-MILE OF THE SIXTY-FOUR ELECTRIC RAILWAYS SHOWN IN TABLE III, FOR APRIL, 1919, COMPARED WITH .APRIL, 1918 . United States ■ • East ■ South ^ West— — Per Cent Per Cent Per Cent Per Cent 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase Operating expenses *26.80 20.58 30.22 t31.02 23.56 31.66 22.39 16.64 34.55 24.08 19.06 26.34 Wayandstructures 3.59 2.29 56.76 4.68 3.04 53.90 2.56 1.86 37.63 2.83 1.64 72.56 Equipment 3.37 2.55 32.43 4.10 3.35 22.38 2.73 1.86 46.77 2.84 1.95 45.64 Power 4.05 3.30 22.72 5.15 4.37 17 85 1.94 1.00 94.00 3.82 3.20 19.37 Conductingtransportation 11.86 9.10 30.33 12.37 9.14 35.33 12.19 9.51 28.18 11.10 8.87 25.14 Traffic 0.13 0.14 7.15 0.11 0.15 S6.67 0.05 0.05 0.19 0.18 5.55 General and miscellaneous 3.65 3.22 13.36 4.23 3.51 20.51 2.92 2.44 19 67 3.36 3.28 2.44 Transp. for investment— Cr O.OS O.OZ 00.6 0.06 Car-miles operated 23,992,103 23,877,521 0.48 10,540,726 10.491,224 0.47 4,625,860 4.585,201 0189 8,825,517 8,801,096 0.28 *Includes 0.17 cents per car mile for depreciation not divided among sub. accounts, tincludes 0.38 cents per ear mile for depreciation not divided amongsub-accounts. TABLE V— I. \C( )ME STATEMENT OF 121 COMPANIES FOR APRIL, 1919 United State.s East South West Operating revenue $20,244,332 $15,691,482 $1,613,476 $3,981,938 Operating expenses 15,014,413 11,803,750 1,139,376 2,788,604 tuNet operating revenue 5,229,919 3,887,732 474,100 1,193,334 Net revenue: Auxiliarv opera- tions 932,962 394,689 314,812 223,461 Taxes 1,212.292 893,023 142,424 241,921 Operating income 4,950,589 3,389,398 646,488 1,174,874 Non-operating income 366,588 244,893 7,043 128,624 Grossincome 5,317,177 3,634,291 653,531 1,303,498 Deductions from gross income.. 4,319,404 3,274,691 401,852 892,578 Net income 997,773 359,600 251,679 410,920 Operating ratio 74.21 75.22 70.62 70.03 Car-miles operated 57,484,943 40,998,490 4,802,600 11,683,853 TABLE VII— DETAILED STATEMENT OF THE OPERATING EXPENSES OF 140 COMPANIES FOR APRIL, 1919 United States East South West Operating expenses $*16,798,828 $*12,509,305 $1,373,384 $2,916,139 Wayandstructures 2,275,358 1,749,564 166,068 359,726 Equipment 2,098,114 1.575,038 167,201 355,875 Power 2,547,648 1,967,515 133,418 446,715 Conducting transporta- tion 7,392,660 5,335,744 716,028 1,340,888 Traffic 65,879 38,771 4,872 22,236 Meneral and miscellane ous 2,164,435 1.581,928 185,797 396,710 Transportation for in- vestment—Cr 7,456 1,4H 6,orj Car-miles operated 61,513.871 43,407,105 5,895,070 12,211,696 * Includes $262, 1 90 depreciation not divided amongsub-accounts. TABLE \ I- -INCOME STATEMENT IN CENTS PER MILE OF THE 121 COMPANIES SHOWN IN TABLE V LTnited States Operating revenue 35,22 Operating expenses 26. 14 Net operating revenue 9.08 Net revenue: Auxiliary opera- tions 1.62 Taxes 2 . 09 Operating income 8.61 Non-operating income 0.64 Grossincome 9,25 Deductions from gross income 7.52 Net income 1.73 Operating ratio 74 21 Car-miles operated 57,484,943 East South West 38 27 33 60 34 08 28 79 23 72 23 86 9 48 9 88 10 22 0 95 6 56 1 86 2 18 2 97 2 03 8 25 13 47 10 05 0 60 0 15 1 10 8 85 13 62 1 1 15 7 98 8 37 7 64 0 87 5 25 3 5i 75 21 70 62 70 03 40.998,490 4,802,600 11,683,853 TABLE VIII— DETAILED STATEMENT IN CENTS PER CAR-MILE OF THE OPERATING EXPENSES OF THE 140 COMPANIES SHOWN IN TABLE VII, FOR APRIL, 1919 United States East South West Operating expenses *27.31 t28.82 23.30 23.88 Wayandstructures 3.70 4.03 2.82 2.95 Equipment 3.41 3.63 2.84 2.90 Power 4.14 4.53 2.26 3.68 Conducting transporta- tion 12,02 12.29 12.15 10.98 Traffic 0.11 0,09 0.08 0,18 General and miscellane- ous 3.52 3,64 3,15 3.24 Transportation for in- vestment— Or 0.01 0.05 Car-miles operated 61,513,871 43,407,105 5,895,070 12,211,696 * Includes 0.42 cents per car mile for depreciation not divided among sub- accounts, t Includes 0.61 cents per car mile for depreciation not divided among sub-accounts. 300 Electric Railway Journal Vol 54, No. 6 Financial News Notes T>fote Interest Remains Unpaid. — It is stated now that neither the principal nor the interest due on June 1, 1919, on the $4,000,000 of 7 per cent one- year gold notes of the New Orleans Railway & Light Company, New Or- leans, La., was paid. Chattanooga Receivership Extended. — Judge E. T. Sanford has ordered that the receivership of the Chattanooga Railway & Light Company, Chatta- nooga, Tenn., be extended to apply to the power and light departments of the company as well as to the electric railway branch. Interest on Chicago Debentures Un- paid.— It is reported that the coupons due on July 1, on the $7,000,000 of 1914 debentures of the Chicago (111.) Ele- vated Railways, collateral trust were not paid. Moreover, according to a statement made by Samuel InsuU, chair- man of the board of the company, before the Federal Electric Railways Commis- sion, $14,000,000 of five-year notes due on July 1 could not be refinanced, and the trust was unable to meet the in- terest payment due on the same date. Cleveland Arbitrators Disagree Over Umpire. — W. E. Davis, city light com- missioner, will represent the city on the board of arbitration which is to decide whether stockholders of the Cleveland (Ohio) Railway shall receive an in- crease of 1 per cent in dividends, while J. R. Nutt, president of the Citizens' Saving & Trust Company, will repre- sent the railway. They have failed to agree upon a third member and the choice will probably be left to Federal Judge Westenhaver. The company asked for an increase from 6 per cent to 7 per cent in the dividends. Interurban Approves Bond Issue. — The directors of the Syracuse & Surburban Railroad, Syracuse, N. Y., have authorized the issuance of $750,- 000 of first and refunding 5 per cent bonds. The Public Service Commission has also approved the issue. Of the total amount $400,000 will be held in trust to retire the first mortgage bonds due in 1926 and $150,000 to retire the general mortgage bonds falling due in 1953. The remaining $200,000 will be issued and sold for cash, one-half to be taken by the bondholders and the other half by the stockholders. The proceeds will wipe out the floating debt and leave $55,000 for improvements and $18,000 for working capital. The Syracuse Trust Company has been designated as trustee of the mortgage. Evansville Receivership Accounting. — William A. Carson, receiver for the Evansville (Ind.) Railways, has filed his final report in the Vandenberg County Superior Court, showing that during the i-eceivership he received $103,025. An itemized statement of expenses was filed at the same time. The holders of some of the bonds who did not come in on the reorganization of the company are to receive 24.34 per cent of the face value of their securities. This will be paid out of the net balance of $2,692. With the ratification by the court of the report, the receivership will be brought to an end. The Evans- ville Railways underwent reorganization shortly after the appointment of Mr. Carson as receiver. The various lines owned by that company have now passed to the control of the new com- pany, known as the Evansville & Ohio Valley Railway. Foreclosure Suit Against B. R. T. — The Equitable Trust Company, New York, N. Y., as successor of the Colo- nial Trust Company, and the Trust Company of America has brought a mortgage foreclosure suit in the Fed- eral District Court against the Brooklyn Rapid Transit Company, for which Lindley M. Garrison is receiver. The litigation is the result of default on April 1, last, in payment of the semi- annual instalment of interest on first mortgage bonds, aggregating $7,000,000 and known as the 5 per cent fifty-year gold mortgage bonds. As the default has continued the Equitable Trust Com- pany, under the terms of the mortgage, says the principal and interest are now due and asks for the foreclosure and sale of the property pledged as security. The hearing before the Public Service Commission on the application of the company to issue $15,000,000 of re- ceiver's certificates was closed on July 31. The issue was authorized by Fed- eral Judge Mayer to meet the cost of completing the rapid transit system, but it must have the commission's approval. Ready to Enter Foreclosure Decree. — Justice Morrill at Auburn, Me., on July 31 filed his decree on the bill in equity of the Old Colony Trust Com- pany, Boston, Mass., against the Lewis- ton, Augusta & Waterville Street Rail- way, Lewiston, Me., in which the peti- tioner, trustee under the mortgages se- curing the first and refunding bonds of the railroad, asked for permission to foreclose mortgages and sell property and franchises. The decree states that the amount of the first and refunding bonds secured by the mortgages to the Old Colony Trust Company is $2,937,- 000, on which there is overdue interest to the amount of $151,133. It orders the railroad to pay this latter sum with interest before Aug. 11. In the event of default in this payment, Wal- lace H. White, Lewiston, special master, is ordered to sell the property. Bids are to be called for the whole property, also for the property exclusive of the Turner branch, for the Turner branch including its franchise, and for the physical property of the Turner branch alone. If the bid for the whole property is greater than the combined bids for the different items mentioned, then it is to be sold as a whole, otherwnise each piece is to be sold separately. Electric Railway Monthly Earnings BATON ROUGE (LA.) ELECTRIC COMPANY Period 1m., May, '19 May, May, May, Im. 12m. 12m. ■If Operating Revenue $28,558 20,455 307.889 240,609 Operating Expense.s *$I8,042 *1 1,221 *I79,573 *125,228 Operating Income $10,516 9,234 128,316 115,381 Fixed Charges $3,447 3,359 42,203 38,899 CAPE BRETON ELECTRIC COMPANY, SYDN'EY, N. Im., May, '19 $46,350 *$38,450 $7,900 $5,693 Im., May, 'If 12m., May, '19 1 2m., May, '18 38,916 550,059 483,028 *27,740 *419,485 *335,899 11,176 130,574 147,129 5,255 64,1 13 63,074 COLUMBUS (GA.) ELECTRIC COMPANY 1m„May, '19 $101,645 *$52,341 $49,304 $30,129 Im., May, '18 101,017 *38,403 . 62,614 28,407 I2m., May, '19 1,190,199 *628.320 561,879 353,847 12m., May, '18 1,166,369 *459,522 706,847 322,277 Net Income $7,069 5,875 86,1 13 76,482 $2,207 5,921 66,461 84,055 $19,175 34,207 208,032 384,570 EASTERN TEXAS ELECTRIC COMPANY, BEAUMONT, TEX. Im., Im., 12m. 1 2m. May, '19 May, '18 May, '19 May, • 1 8 $110,107 94,395 1,235,895 996,074 *$67,869 *53,320 *748,274 *554,905 $42,238 41,075 487,621 441,169 $13,084 t$29,278 11,865 29,210 154,587 t335,184 134,226 1329,780 EL PASO (TEX.) ELECTRIC COMPANY Im., May, '19 $126,205 '►$91,353 $34,852 $7,508 $27,344 Im., May, '18 $105,575 '►73,101 32,474 6,446 26,028 12m., May, '19 1,350,625 *962,285 388,340 83,881 304,459 12m., May, '18 1,277,199 *830,315 446,884 72,554 374,330 *Includes taxes. fDeficit. {Includes non-operating income. GALVESTON-HOUSTON ELECTRIC COMPANY, GALVESTON, TEX. Period Im., May. '19 Im., May, '18 12m., May, '19 1 2m., May, '18 Operating Revenue $248,596 209,765 2,898,992 2,319,050 Operating Expenses *$181,613 *142,898 *2,083,365 *1, 517,439 Operating Income $66,983 66,867 815,627 801,61 1 Fixed Charges $35,638 29,618 372,425 341,274 HOUGHTON COUNTY TRACTION COMPANY, HOUGHTON, Im., May, '19 $22,188 *$I7,403 $4,785 $3,994 Im., May, '18 25,122 *17,118 8,004 4,1 10 I2m., May, '19 307,347 *2 13,362 93,985 49,030 I2m., May, '18 339,555 *218,696 120,859 49,774 JACKSONVILLE (FLA.) TRACTION COMPANY Im., May, '19 $85,484 *$75,357 $10,127 $14,346 Im., May, "18 83,210 *55,601 27,609 14,972 12m., May, '19 1,005,377 *848,863 156,514 177,402 12m., May, '18 776,083 *529,673 246,410 169,744 NORTHERN TEXAS ELECTRIC COMPANY, FORT WORTH, TEX. Net Income $31,345 37,249 443,202 460,337 MICH. $791 3,894 44,955 71,085 t$4,219 12,637 t20,888 76,666 Im., May, ' Im., May, 1 2m., May, 1 2m., May, $264,546 247,016 2,904,145 2,999,061 *$170,727 *156,341 *1, 925,637 *1, 694,123 $93,819 90,675 978,508 1,304,938 125,042 25,213 300,677 308,908 t$78T360 175,046 1792,831 ■1:1,072,697 TWIN CITY RAPID TRANSIT COMPANY, MINNEAPOLIS, MINN. Im., June, '19 $924,854 $623,330 $311,524 $158,595 $152,929 Im., June, '18 808,431 542,769 265,662 155,612 1 10,050 6m., June, '19 5.342,680 3,827,038 1,515,642 950,228 565,414 6m., June, '18 4,847,573 3,515,491 1,332,082 938.080 384,002 August 9, 1919 Electric Railway Journal 301 Traffic and Transportation Norfolk Ordinance Ready Fare Measure Looking Toward Relief for Virginia Railway & Power Com- pany Comes Up on Aug. 19 The City Council of Norfolk, Va., will on Au^-. 19 hold a public hearing on the matter of a proposed ordinance looking to granting relief to the Vir- ginia Railway & Power Company in the way of a 6-cent fare with a charge of 2 cents for transfers. The Council has read the ordinance the first time, and has begun its advertising, an- nouncing that the public will be heard on the above date. Outcome of Conferences The ordinance is the result of a num- ber of conferences between the "citizens' committee," initiated by the Chamber of Commerce of Norfolk, and participated in by members of the City Council, A. B. Carney, attorney for the commonwealth, and others represent- ing the county of Norfolk. The con- ferences were brought about as a result of opposition on the part of cer- tain industrial interests to a zone sys- tem the traction company proposed for its lines outside the cities of Nor- folk and Portsmouth, in Norfolk County. The citizens' committee approached the recently organized public relations department of the traction company with a request for conferences "in an effort to provide needed relief for the com- pany and at the same time avoid the necessity of increasing the number of zones outside the city in the county of Norfolk." After three weeks of conferences the citizens' committee submitted a pro- posed ordinance which, while it does not meet the views of the officials of the company in many points, will give certain relief, in the matter of in- creased wages to platform men, the company agreeing to advance their wage from 41 cents to 4.5 cents an hour "when a 6-cent fare shall have been allowed." The City Council was represented on the citizens' committee by a number of members, its chairman being Presi- dent Albert L. Roper of the Council, who is also Mayor of the city of Nor- folk. Those members of the Council who were and are members of the citizens' committee are of the opinion that there will be no delay in putting the new ordinance into effect. Will Withdraw Suits The proposed ordinance, in addition to providing for the increased fare and charge for transfers, carries with it an agreement on the part of the com- pany to withdraw its suits against the city for taxes paid the city for the last two years, for which it holds itself not to be liable under a recent decision of the Supreme Court of the State of Vir- ginia, when the ordinance shall have been in effect for a period of twelve months. At the closing conference between the citizens' committee and the com- pany officials a number of the mem- bers of the committee commented at length upon the spirit of fairness which marked the deliberations on both sides of the table. Mayor Roper was the leading spokesman in this regard, and T. S. Wheelwright, president of the company, followed with an apprecia- tion of the changing sentiment toward the company. Competition from One-Man Interurban Autos In the recent case of the Louisville & Interurban Railway before the State Railroad Commission of Kentucky over increased rates, which the commission held were not warranted, the railway showed conclusively that the automo- bile had greatly cut into earnings. The pleasure cars and bus lines have reduced passenger travel, while trucks are hauling livestock, grain and general merchandise of all kinds. Quantities of milk and cream formerly hauled into Louisville by interurban are now placed on platforms along the road and picked up by the truck lines under con- tract. Two types of auto in particular have been giving considerable trouble. One is the passenger car equipped with a large body, with side seats. A car of this kind is run out the Taylorsville road on the schedule staggered with that of the electric railway. The auto does an excellent business at the ex- pense of the railroad. The driver is, of course, both motorman and con- ductor. The other type of car that has come forward as a competitor is the trans- fer line truck. One of these vehicals is now run parallel to the Shelbyville line, and on out to Grafenburg, Ky., which will be on the interurban line as soon as a link between Shelbyville and Frankfort is completed. This truck is equipped with a body that is inter- changeable for handling various kinds of freight, from package merchandise to livestock. Pork and beef are so high in price that the driving of live- stock to market has been stopped and all is now taken to town by interurban, truck or motor to save the fat. Similar trucks are to be found in operation on practically every road, whether or not an interurban line is operated over that particular road. Transfer Order Enforced New Yorkers Paying Two C:nts at More Than 1000 Points Where Transfers Were Free The 2-cent transfer charge author- ized on July 18 by Lewis Nixon, Public Service Commissioner for the First District of New York, went into effect on Aug. 1 at more than 1000 transfer points on the lines of the New York Railways and the Brooklyn Rapid Transit Company. Commissioner Nixon had granted a rehearing of the trans- fer case on July 29, but refused to stay the order. Court Fight Expected Despite threats of trouble on the part of large numbers of the com- panies' patrons, the charge for trans- fers has caused little difficulty. Op- ponents of the railways plan to carry the matter to the courts. Persons wishing to contest the order are ad- vised to pay the charge demanded by conductors and then to file a complaint. A test case will be brought under the railroad laws of 1890 which it is con- tended provide that any railway charg- ing more than the legal rate of fare shall be liable for fifty times the amount of excess fare collected. Commissioner Nixon in opening the rehearing on Aug. 4 declined to hear evidence relative to his authority in issuing the order, and stated that the only matter to be determined was the responsibility for naming the points at which the charge should be made. Cor- poration Counsel Burr of New York, who is contesting the order, contends that the order was defective in that it failed to name definitely the pointr at which transfers should be charge^i for. The transfer points which remain free are only those at which franchises or special agreements with ^the city forbid the extra charge. Only four- teen of the 113 points in Manhattan at which transfers formerly were issued free remain, while in Brooklyn out of 1008 free transfer points only thirty are exempted, with the exception of forty-eight "feeder" points at which transfers continue to be given free of charge. Must File Reports Each company is obliged to keep a detailed account of its income under the new arrangement for the report to the Public Service Commission. The Brooklyn Rapid Transit Company must file monthly reports, while the New York Railways must convince the city that the valuation of its property sub- mitted at hearings is true, or the city may, in six months, petition the com- mission for a rehearing. In Manhattan the New York Rail- ways will benefit by this order until July 7, 1920. In Brooklyn it holds good until July 30, 1920, and in each instance Commissioner Nixon has re- served the right to extend the time if operating results prove a continuation advisable. 302 Electric Railway Journal Vol. 54, No. 6 Ten -Cent Fare on Middlesex & Boston Seven and Eight Cents Have Been the Charges Since July, 1918 —Increase of $132,000 Anticipated A tentative allowance of 10-cent fares on the Middlesex & Boston Street Railway was declared in a finding of the Public Service Commission of Massachusetts on July 31. Previous fares, established on July 1, 1918, were 7 cents on the main traffic lines and 8 cents on the remainder of the system except on the Westborough-Hopkinton line, where, by agreement with the towns affected, the fare was increased in November, 1918, to 10 cents. Under the schedule recently filed the company proposes to increase the fare to 10 cents on all parts of its system except on the lines in Waltham, on the Commonwealth Avenue, Newton line, and on the other Newton lines formerly owned by the Newton and the Wellesley & Boston street railways, where the present fares are retained. The tariff as filed also provides for an additional charge of 3 cents for transfers. At the hearing, however, the company agreed to furnish free transfer privileges to patrons paying a 10-cent fare. The charge for passengers using a transfer would thus be uniformly 10 cents on the entire system. Prior to July 1, 1914, the fares were 5 cents on the principal city lines and 6 cents, with a 5-cent ticket rate, on the remainder of the system. During the last year under that schedule the passenger revenue of the company amounted to $951,808. During the year just ended, the passenger revenue, after three successive fare increases, was only $938,533, which was insuffi- cient by about $65,000 to meet operat- ing expenses and fixed charges. Dur- ing the year ended June 30, 1919, cov- ering the period of the last fare in- crease, traffic fell off nearly 20 per cent and revenue decreased more than 10 per cent. Upon this showing the company's need of more revenue was exceeded by all in interest, but the commission and the remonstrants doubt the efficiency of a further increase in fare unit. The commission believes that a zone system of fares offers more hope, and will take up the design of such a system with the company, meanwhile allowing the 10-cent fare unit to go into effect for a trial period of three months, sub- ject to the modification given below. As the company has been unable to meet the payment of current operating ex- penses or to meet excise taxes now owing to the municipalities, and as ne- gotiations are now pending with its employees for a further wage increase, its needs of additional revenue, in the commission's view, is "immediate and urgent." The last hearing was on July 24, 1919. The company estimates that the new schedule will yield $132,- 000 in increased revenue. While the board is not optimistic in regard to the revenue effects of a 10-cent fare on this system, it does not feel justi- fied in over-riding the judgment of the company or in making a positive find- ing that no increase in revenue would result from the proposed fares. The commission has advised the com- pany that the revenue received within the two fare zones on the main line between Newton Lower Falls and Framingham, as compared with the average revenue from the proposed 7- cent lines, does not justify a spread of 3 cents in the fares charged, and that tickets at the rate of six for 50 cents without transfer privileges should be made available on the two zones men- tioned. Readjustments in the fare situation on the Lexington & Boston division and the South Natick line ap- pear also to be desirable; but on the basis of the total length of ride avail- able and the revenue results from ex- isting zones, the fare proposed for these lines does not appear discrimi- natory, and any adjustment of fares, the board states, should be accompanied by a revision of fare zones.* Ten Cents Being Charged in Pittsburgh Question of Fares Will Be Gone Into Exhaustively at Hearing to Commence on Aug. 20 Fares on Pittsburgh^ (Pa.) Railways were raised on Aug. 1 to 10 cents, if paid in cash, and 7J cents if tickets are bought by the passenger. In the few days the new fare has been in force the company has not been able to get figures upon which to base final conclusions as to its effect, but certain results are easily discernible to any observer. Few Residents Pay Ten Cents For one thing, it has been pretty well established already that, as far as Pittsburghers are concerned, there is nothing but a 7i-cent fare. Residents all buy tickets, leaving such cash busi- ness as is transacted to transients. This arrangement, of course, is satis- factory from the viewpoint of the pub- lic with which the Pittsburgh Railways has to deal, for the local public sees the outsider contributing much more heav- ily than the native to the maintenance of the city's transportation service. In consequence little is heard of protest against the 10-cent cash fare feature of the new tariff. Conductors on many lines, particularly those serving sub- urban districts, report that trips are frequent upon which they never see cash, except that tendered for the little brass disks issued four for 30 cents. Considerable cash business is trans- acted, of course, on cars traversing downto^vn lines between railroad sta- tions. Probably the most notable feature of the situation immediately following the raise was an increases in traffic on the many railroad lines serving suburban districts. Pittsburgh, as is well known, strings out in three directions, along its three rivers, in long arms where population' is dense. The high hills between the valleys, in general, are not thickly populated. Railways Heavily Patronized These valleys afford entrance to the city to the steam railroad trunk lines and each of them is traversed by two or more. Commutation service is sup- plied by practically all of. these rail- roads, and this, by the nature of things, is much faster than the service the Pittsburgh Railways can offer. Heretofore, train fare has exceeded electric railway fare so slightly from most points, or has been so little less that the rider usually preferred the convenience of the electric railway to the walk to the railroad station. That half-cent raise in car fare, however, has seemed to tilt the scale in favor of the railroads in many instances, how- ever— that, and the inevitable irrita- tion of the public over any increase in fares. For another thing, the increase was instituted on the first of the month, from which day the cheap monthly commutation tickets are dated. Thus the regular electric railway patron could change over to the railroad with- out loss, as he could not have done had the new tariff gone into effect, say, on the tenth of the month. In the latter case a third of his monthly ticket would have been useless to him and possibly he would have become accus- tomed to the 7 J -cent fare by the first of September and would not have thought of patronizing the steam lines. Patronage Falls Off At any rate, it was easily observed on the morning of Aug. 1 that the patronage of the Pittsburgh Railways had fallen off. Seats were available in cars that had always been packed dur- ing the rush hours. This condition, however, became less noticeable on the second and third days. For several hundreds of thousands of Pittsburghers the new tariff involves a 50 per cent increase in the cost of transportation, for it must be remem- bered that although 7 cents has been charged in the outer rim of the city for a number of months, the rate has been 5 cents for a ride beginning and ending within a territory of a radius of approximately 2 miles from the cen- ter of the downtown district. This is the most densely populated section of the city, of course, and the section in which live those to whom a sudden 50 per cent increase in the cost of any necessity pretty nearly puts it out of the necessity class. These people also live closest to the downtown dis- trict. There can be no doubt that thou- sands of them have decided to walk to August 9, 1919 Electric Railway Journal 303 work. Rush hour crowds on the bridges leading across the rivers into the city show that plainly. The question of whether or not rebate slips should be issued upon payment of the new fares threatened for a day to start a controversy with the city ad- ministration. It has been the practice heretofore in Pittsburgh for the rail- way to issue such receipts for fares paid in excess of the last one legally approved, which is the old 5-cent rate. This has resulted from the fact that in Pennsylvania a public service company can, without awaiting approval of the commission, increase its tariff upon thirty days' notice to the commission. If the commission disapproves, the company can continue to collect the new rate, upon appeal to the courts from the commission's finding. So to protect passengers, receipts have been issued calling for refund of the excess in event of overthrow of the excess. The Pittsburgh Railways has issued receipts for hundreds of thousands of dollars of these "excess fares" since its first increase to 51 cents from the old 5-cent fare at the beginning of 1918. None of the subsequent increases have been passed upon finally. In the pres- ent instance the rebate slips are issued only to purchasers of tickets at the office of the company. The whole question of fares in Pitts- burgh will be gone into exhaustively at a hearing before the commission in Pittsburgh on Aug. 20, of the city's protest against the new fare. At this hearing, for the first time, the commis- sion will have before it a physical valu- ation of the properties of the company. This task has been in the hands of five engineers for more than a year. It is hoped that a fare policy for the Pittsburgh Railways may be worked out following this hearing that will form a permanent basis for future deal- ings. Consideration of all of the in- creases in fare above the original 5-cent charge has been postponed by the Pub- lic Service Commission pending the re- port of the valuation commission, the company in the meantime collecting the new fares and issuing excess receipts. Kansas City, Kan., Disputes Not Yet Settled Because of the illness of Frank Hagerman, one of the arbitrators appointed by Judge John C. Pollock of the Kansas Federal Court to adjust the fare dispute between the city of Kansas City, Kan., and the Kansas City Railways, no action to settle the con- troversy will be taken before Septem- ber. The board of arbitration is to report on the questions of fares, of franchises and all public contracts, the use of the city viaduct and removal of the "L" structure. Pending the report fares will remain at 6 cents under the temporary restraining order issued by Judge Pollock, which also provides that the inter-city viaduct shall be used by the company until the arbitrators set- tle the question of rental. Eight Cents in Kansas City This Will Be the Cash Rate, With Two Tickets for Fifteen Cents —Effective One Year The Public Service Commission of Missouri has ordered that the Kansas City Railways be permitted to increase fares to 8 cents, or two fare tickets for 15 cents, seven tickets for 50 cents, fifty tickets for $3.50. The half fare rates, heretofore 2i cents, are increased to 4 cents, with four tickets for 15 cents, fourteen tickets for 50 cents, or 100 tickets for $3.50. The higher fares are put in for a year, effective on Aug. 20. The commission retained jurisdiction. The commission's action was technic- ally the action on the deferred subject of 6-cent fares. The company had been authorized to charge 6 cents for the year to July 10, 1919, the commis- sion retaining jurisdiction. When the year was up the company made a plea for still higher fares and for relief from certain expenses that made it impossible to keep pace with debts. The commis- sion's findings at this time makes no mention of relief from burdensome franchise requirements, as to paving, taxes, etc., but it is understood that the State and the city, to a larger degree than ever before, are trying to work out the problem. City officials have announced, how- ever, that they will oppose the 8-cent fare, but no statement is made of the steps to be taken. Following is the finding of the com- mission, written by the chairman, W. G. Busby, concun-ed in by Commissioners Blair, Simpson and Flad, dissented to by Commissioner Bean: 1. That the company be permitted to increase its rate for adult passengers from 6 cents to 8 cents cash fare, or two tickets for 15 cents, seven ticliets for 50 cents, or fifty tickets for $3,50. and to increase its rates for lialf-fare passengers from 2J cents to 4 cents, cash fare, four tickets for 15 cents, fourteen tickets for 50 cents, or 100 tickets for $3.50. 2. Tlie increased rates are put in for a temporary period of one year only from Aug. 20, 1919, with reservation of jurisdic- tion in the commission to hereafter change or reduce the rates at any time in accord- ance with changed conditions. 3. The commission finds that the com- pany failed to earn operating expenses on the Missouri property during the eleven months ended May 31, 1919, by $208,140: that it failed to earn operating expenses and fixed charges on the Mississippi prop- erty during the same eleven rnonths by $1,- 711.166 ; that it failed to earn operating expenses on the entire . system during the year ended June 30, 1919. by $362,753, and failed to earn operating expenses and fixed charges on the entire system during the same years by $2,255,368 ; and that since July 1, 1919, the company has granted fur- ther wage increases amounting to $575,000 per annum. 4. The commission, estimates that the new rates allowed will yield the company 4.8 per cent per annum for depreciation and return on $20,742,420, the "bare bones" value of the Missouri intrastate property. This estimated return of 4.8 per cent for depreciation and return on $20,742,420 Is dependent on the company increasing the number of passengers 21 per cent over the number carried for the year ended .Tune 30. 1919, and is exclusive of the cost of oper- ating additional cars. It is also estimated that the cost of carrying Missouri mvra- state passengers, based on normal traffic of May and June, 1918, is 7.8 per cent per passenger. The company is ordered to restore what is known as the "July schedule" of service within ninety days from Aug. 20. 1919, which means that it must have 100 more cars in operation within ninety days than it had in operation on July 1, 1919. If necessary the commission will place one of its representatives in the employment office of the company to aid in restoring the service. 6. That the company was unable to pay the interest due on its bonds on July 1, 1919, in the sum of $600,000. and immedi- ate relief is necessary to save the company from bankruptcy. Binghamton Fights Proposed Fare Advance The city of Binghamton has begun proceedings to restrain the Public Serv- ice Commission for the Second District of New York from granting the ap- plication of the Binghamton Railway Company for an increase of fare, on the grounds that a contract exists be- tween the city and the company in its franchise fixing the fare at 5 cents. The Interborough Rapid Transit Com- pany, New York, joined with the Bing- hamton Railway in opposing the city's application for a writ of prohibition made before Justice Nichols at Albany, the case being looked upon as a test one to determine the right of the Public Service Commission to order an increase in fares where a contract exists fixing the rate at 5 cents. The company seeks to raise the fare to 6 cents. The commission on June 28 refused to dismiss the application of Receiver William J. Phelps on the ground of lack of jurisdiction. Trenton Company Asks More The Trenton & Mercer County Trac- tion Corporation, Trenton, N. J., has filed a petition with the Board of Pub- lic Utilities Commissioners asking for increased rates consisting of 1 cent for transfers on the local and suburban lines and four new 6-cent fare zones on the suburban service. The present rate of fare is 6 cents with free transfer in the city and 6 cents in each of the suburban zones. If the increase is granted riders in the city will have to pay 7 cents and suburban riders will have to pay 6 cents additional for the new zones proposed. The company, in its application, declares that with the present fares it had a deficit of $167,- 812 for 1918. New sources of rev- enue are required owing to increased wages and expenditures for improve- ments. The; proposed change in fare zones would add one zone each to the Hope- well, Princeton, Hamilton Square and Yardville lines. The present rate of fare to Hopewell and Princeton is 18 cents and the increase would make it 24 cents. The utility commission vrill set a date for a public hearing on the proposed increase. The company's peti- tion, among other things, says: That the question of an increase in wages to certain of its employees is about to be arbitrated ; that if any increase of Wages should be awarded pending the determina- tion of this application your petitioner asks for such further increases as may be nec- essary to produce additional revenue equal in amount to any increase in expenses caused by the decision of the board of arbitration now considering the rate of wages to be paid by your petitioner during the period of its next working agreement with its employees. 304 Electric Railway Journal Vol. 54, No. 6 Transportation News Notes Seven Cents in Butte. — The Railroad and Public Service Commission of Montana on July 23 issued an order granting the Butte Electric Railway an increase in fares from 6 to 7 cents. The commission in January, 1919, de- nied the company's petition for a higher fare. Seven Cents in McAlester. — The Corporation Commission of Oklahoma has approved the application of the Pittsburgh County Railway, McAlester, Okla., for an increase in local fares within the city limits of McAlester from 5 cents to 7 cents. The increase be- comes effective immediately and ap- plies only within the city limits. Increasing the Short Hauls in Kansas City. — The Kansas City (Mo.) Railways is rerouting its cars to give special at- tention to the short hauls. Under the new plan service will be concentrated in congested districts. The changes are in the interest of better service to the patrons and to overcome so far as pos- sible the severe competition of the jit- neys. Jitneys Regulated in Biddeford, Me. — Jitney operators of Biddeford, Me., are required to pay license fees of $20 and $30 depending on the size of their ve- hicles, under the terms of an ordinance passed recently by the City Council. Bonds or insurance policies of from $3,000 to $6,000 are to be deposited with the city clerk before licenses are issued. Naval Base Employees Protest Fare Advance. — Employees of the Norfolk naval base recently protested through Admiral Fechteler against the proposal of the Virginia Railway & Power Com- pany to increase fares to the base. In reply the company contended that the service was adequate and that the in- crease was necessary on account of higher operating costs. Four-Cent Fare Hearing Closed. — — The Public Service Commission for the First District of New York has con- cluded hearings in reference to the appli- cation of the Van Brunt Street & Erie Basin Railroad, Brooklyn, for permis- sion to increase fares from 3 cents to 4 cents. The distance traversed by the line is slightly more than a mile. The company's franchise permits a maxi- mum charge of 4 cents. One-Man Cars Discussed in Richmond. — The City Council of Richmond, Va., has been investigating the operation of one-man cars with a view to their use by the Virginia Railway & Power Com- pany. The city attorney has been in- structed to advise the committee on streets as to the legal rights of the company in installing such cars. It was agreed that the safety features of the car should be looked into. Transfer Charge Allowed. — The City Council of East Liverpool, Ohio, has consented to an increase in fare on the lines of the Steubenville, East Liver- pool & Beaver Valley Traction Com- pany, consisting of a 1-cent transfer charge. After consideration of an ap- peal from the company for financial relief, the Council directed the city solicitor to draw up an ordinance al- lowing the new charge, which will be passed immediately. Baltimore Fare Hearing Postponed. — The hearing of the application of the United Railways & Electric Company, Baltimore, Md., for an increase from the present 6-cent to a 7-cent car fare, was postponed from Aug. 4 to Aug. 7. There was a vacancy on the Public Service Commission, due to the resig- nation of Chairman Albert Towers. Governor Harrington stated that he would appoint a successor to Mr. Towers at once so that a full board might hear the company's case. Will Seek Rehearing in Rate Cases. — The East St. Louis & Suburban Rail- way, East St. Louis, 111., will seek a rehearing of its application to the Pub- lic Utilities Commission of Illinois for an increased fare between East St. Louis and Belleville and within the city limits of Belleville. The commission al- lowed a slight increase in the rate per mile on the interurban line, but it re- fused to permit the company to estab- lish two additional fare zones, which was the chief object sought. Increased Fare and Wages Held Up. — Petitions asking for a referendum vote on the ordinance granting the Ashtabula (Ohio) Rapid Transit Com- pany an increase from 5 cents to 6 cents in fare have been filed with the City Clerk. This automatically sus- pends the operation of the ordinance until the vote is taken. It also sus- pends the contract giving the men an increase in wages, as this was con- tingent upon an increase in the rate of fare. The vote will probably be taken at the regular election in November. Wants Transfer Charge in Roches- ter.— Application has been made by the New York State Railways, Roches- ter Lines, to the Public Service Com- mission for the 'Second District for permission to charge 2 cents for trans- fers in the city of Rochester. In its petition the company says that in 1918 69,695,318 passengers paid fares on Rochester city lines and 23,529,602 passengers were carried on transfers. It says that the free transfer has be- come a burden upon the company, which, coupled with a 5-eent fare to which the company is limited, threatens destruction of its property. No Fare Increase in Newcastle. — An increase in fare from 6 cents to 7 cents, as proposed by the Mahoning & Shen- ango Railway & Light Company on the lines of the New Castle (Pa.) Electric Street Railway and the New Castle Mahonington Street Railway, which it leases, has been refused by the Public Service Commission of Pennsylvania. The 6-cent fare was granted by the commission on April 28, and under the present agreement will remain in effect until May 1, 1920, when a 5-cent fare will be restored unless the company can show that the revenue derived from the increases is necessary for opera- tion. One-Man Cars Barred. — One-man cars have been barred in Beaumont, Tex., on account of their encouraging race feeling, and the City Council has denied the application of the Beaumont Trac- tion Company for authority to purchase six additional cars of this type for use on the Beaumont lines. The Council took the position that the cars being so constructed that negroes are com- pelled to pass through that section of the car set apart for white persons in entering and leaving them, race hatred is engendered which leads to frequent clashes between whites and blacks. Use of the cars was opposed by the com- pany's white patrons. Agitation for Safety Devices. — A conference between the City Commis- sion and officials of the Birmingham Railway, Light & Power Company, Birmingham, Ala., will be held in a short time on the question of providing local cars with safety devices. At a meeting of the City Commission on July 29, a committee from the Trades Council charged that most of the re- cent accidents in Birmingham were due to lack of proper safety appliances on the cars. A resolution was adopted by the Commission calling for a con- ference with officials of the company to take up the question of safety ap- pliances. A committee of the commis- sion was appointed to investigate the matter and report to the commission prior to the conference. New Bedford Would Retain the Nickel. — The retention of the tradi- tional nickel as the basic fare, the elim- ination of the transfer privilege and the establishment of a zone system, whereby two fares will be collected on some of the longer lines, is the plan announced by the directors of the Union Street Railway, New Bedford, Mass. In their opinion, it is the method best adapted to produce the added revenue the corporation needs in order to meet the greater demand upon the treasury occasioned by the substantial increase in wages granted recently to all the employees of the company. In order to sound public sentiment as to the course they had better follow in the effort to increase the corporation's income, the directors had canvassers about the streets for several days to ask men and women what method they favored. The persons interviewed were selected at random wherever crowds congregated, and of more than 1000 who were ap- proached, over 700 expressed their pref- erence for the plan which will be adopted. The question of a fare in- crease has been brought to a head by the recent advance in wages to the com- pany's men, as noted on page 292 of this issue. August 9, 1919 Electric Railway Journal 305 Personal Mention Mr. Dempsey Goes Into Oil Vice-President of B. R. T. In Charge of Operation Becomes Connected With One of the Most Successful of the Independent Oil 'Companies John J. Dempsey, vice-president in charge of operation of the Brooklyn (N. Y.) Rapid Transit Company, tend- ered his resignation on Aug. 5 to take effect on Sept. 1. Mr. Dempsey resigns to become connected with the Seamans Oil Company, with headquarters in New York, said to be one of the largest and most prosperous of the independent oil companies, with wells and acreage in Kansas, Oklahoma, Texas and Louisi- ana. Mr. Dempsey has had a remarkable career in railway work and is undoubt- edly one of the ablest operators in the J. J. DEMPSEY field. He was elected vice-president of the Brooklyn Rapid Transit organiza- tion in December, 1917, to succeed S. W. Huff, after having started with the company in 1894 as a telegraph oper- ator with the Brooklyn Union Elevated Railroad. This was not the beginning, however, of Mr. Dempsey's railroad career, for he had entered the service of the Lehigh Valley Railroad as a boy. After remaining with the Brooklyn Union Elevated Railroad from 1894 to 1897, Mr. Dempsey resigned to return to the Lehigh Valley as a telegraph operator. From this position he was promoted to yardmaster. In 1902 he resigned from the Lehigh Valley and returned to the employ of the Brook- lyn Rapid Transit Company as assist- ant dispatcher. Quick acknowledgement followed of his ability, and his rise after this with the Brooklyn Rapid Transit Company was very rapid. He was successively advanced from assistant dispatcher to dispatcher, trainmaster, chief dis- patcher, assistant superintendent and finally superintendent of transportation of the New York Consolidated Railroad (Brooklyn Rapid Transit System). Then followed his election as vice-president of the operating subsidiaries of the Brooklyn Rapid Transit Company, in- cluding the Brooklyn Heights Railroad, Brooklyn, Queens County & Suburban Railway and others. Despite the fact that Mr. Dipmpsey was largely responsible for the entire operation of all of the surface and ele- vated lines in the Brooklyn Rapid Tran- sit System, which is the second or third largest perhaps in the world, he found time to engage in association activities and served on a number of committees of the American Electric Railway Asso- ciation and was president of the New York Electric Railway Association in 1915-16. He is also at present a mem- ber of the executive committee of the American Electric Railway Transporta- tion & Traffic Association. The withdrawal of "Jack" Dempsey, as he is familiarly knovra to a wide circle of acquaintances, from the trans- portation field, particularly at this time, when the need is felt for men who, like him, have a keen appreciation, bom of personal knowledge, of the hopes, as- pirations and trials of the men who keep the transportation wheels turning, is a distinct loss to the company with which he has been so long associated and to the industry of which he has been a part. Edward Dana has been appointed act- ing general manager of the Boston ^Mass.) Elevated Railway succeeding C. D. Emmons, who resigned recently to become president of the United Rail- ways & Electric Company, Baltimore, Md. Timothy J. Donahue, formerly super- intendent of the Salem division of the Bay State Street Railway, now the Eastern Massachusetts Street Railway, has been assigned to the inspection department of the system with head- quarters at Boston. Mr. Donahue has been with the system since 1905. Charles DeMoss Emmons assumed his duties as president of the United Railways & Electric Company, Balti- more, Md., on Aug. 1, on which date also Thomas A. Cross, former president, became chairman of the board of direct- ors. The election of Mr. Emmons to the presidency and of Mr. Cross to his new position took place at a meeting of the board on July 23, after a very careful survey of the railway situation for the purpose of strengthening the organization. Mr. Emmons was for- merly general manager of the Boston (Mass.) Elevated Railway. Ralph Broadwater, Sr., Sisterville, W. Va., recently submitted his resigna- tion as superintendent and general manager of the Tyler Traction Com- pany. At Mr. Broadwater's request the resignation was accepted, he stating that he wished to devote more of his time to private business matters and to closing up matters of the Union Trac- tion Company, of which he was presi- dent and general manager until the sale of its properties a short time ago. Mr. Broadwater expects to take a rest, after which he will devote his full time to a bank in Pennsboro of which he is president. Albert R. Olds has resigned as engi- neer of maintenance of way of the Ha- vana Electric Railway, Light & Power Company, Havana, Cuba, effective on Aug. 15. Mr. Olds entered the em- ploy of the Havana company in June, 1908. In January, 1909, he was placed in charge of the track and road- way department, with jurisdiction over the construction and maintenance of tracks, buildings and structures. In July, 1911, the civil engineering de- partment was added to Mr. Olds' de- partment and he was given the title of engineer of maintenance of way. Mr. Olds is going to Los Angeles, Cal., to enter the employ of Smith-Booth- Usher. His successor at Havana has not been chosen. F. W. Bullock, assistant purchasing agent of the Safety Car Heating & Lighting Company, New York, N. Y., died on July 16 at the age of thirty- eight years. Mr. Bullock was taken ill while on his vacation and his death came suddenly. He had been with the company for more than twenty years. William O. Stout, formerly connected with the Minneapolis (Minn.) Street Railway, died on July 22 at Rupert, Idaho, at the age of sixty-one years. Mr. Stout, after practicing law and serving as probate judge, entered the employ of the Minneapolis Street Rail- way as claim agent, a position which he held for more than twenty-five years. Mr. Stout left the company in 1913 to go to Idaho. James Gunn, superintendent of the Toronto (Ont.) Railway, died at his home in that city on July 25, after an illness of four months. The late Mr. Gunn was an historic figure in street railway development in Canada, having been connected with the Toronto Rail- way for more than fifty years. He was bom in Banniskirk, Scotland, and settled in Canada in 1867. In those days the Toronto Railway was a small horsecar line and Mr. Gunn in addi- tion to acting as secretary on many occasions took his turn as a conductor. When the present company acquired the franchise and converted the line into an electric railway system in 1892 Mr. Gunn became superintendent, which position he held until his death. Manuf adures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER. SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS Cotton and Silk Products Show Advances Bell Cord and Insulating Tapes Marked Up — Silk Insulating Materials Higher Cotton products have again reacted to an advance in the cotton market, short lived though it was, and to general labor conditions, and prices in some instances have been marked up. A week ago manufacturers of cotton bell rope and register cord advanced their prices from 6 to 10 per cent. Although there has been no noticeable increase in buying by rail- ways, general purchasing has increased. This of course has its effect in slowing down deliveries on cord. All cotton insulation manufacturers did not advance prices this week. Cot- ton webbing has been reported up about 10 per cent and sleeving about 14 per cent as of Aug. 1. Varnished cambric has not appeared on the upward list at this time, but it is expected that it will respond in due course. Returns show friction tape higher by 2 cents a pound. There is no present indication that flex- ible non-metallic conduit is to rise. Orders Are Increasing Some cotton mills are 2 months be- hind on shipments. This is particularly true of the braiding mills. Other mills can make shipments in one month. Or- ders for cotton insulating materials are coming through in large volume, and the orders themselves are large. The export market has opened up in an es- pecially attractive manner. Silk for insulating purposes has be- come harder and harder to obtain, and supplies have been badly curtailed. The demand for silk for garments is in- creasing rapidly and the price has gone up in consequence. This has resulted in further advances by manufacturers of silk insulation, wherein silk covered wire increased about 10 per cent the first of August and varnished silk in- sulation the same amount. tenance although a goodly number of large companies are placing orders for new stock. Some, however, put in a large supply in the fall of 1918 prior to the signing of the armistice, and have sufficient stock to fill present demands and are in good shape except on certain sizes. Labor conditions are satisfactory and the production is slightly above normal, hence an increase in prices is unlikely at this time. Deliveries are good. Tool Steel Gear Sales Firm A Buying Movement Is Developing — No Price Increases Likely — Production Satisfactory Brisk sales of tool-steel gears and pinions indicate that a decided buying movement is developing in regard to these products. Sales have increased during June and July over earlier months and it is expected that August and September will show further in- creases in this respect. The majority of orders are for main- High-Tension Insulator Market More Active Orders for $1,500,000 Reported About to Be Placed — Prices Are Just Changing The market for high-tension insula- tors has shown increasing activity, and great promise is held out for the near future. This is shown by the report that there are orders for about $1,500,- 000 worth of high-tension insulators in the placing at this time. The domestic market is opening up in good shape and the foreign market holds out extremely good hope. Projected European trans- mission lines form the basis for much of the foreign promise. Prices on high-tension porcelain in- sulators are to advance 10 per cent on Aug. 11. It is some time since this product has increased and the advance was not unexpected. Longer Deliveries Predicted Shipments of certain types of high- tension insulators may be made from stock, while shipments of other types are given at this time as thirty days. Manufacturers predict longer deliveries on account of increasing orders going through the factories and advise early ordering of any anticipated needs. Although labor conditions are threat- ening, manufacturers report that they shall be able to make good on present deliveries, unless some unforeseen trouble arises. Operators who are fore- handed are placing their orders now for two reasons, first, in order to secure deliveries in a reasonable amount of time, and second, to place their orders before conditions should become such that a further increase in price might become effective. The latter hinges on the cost of labor, which in the case of the ordinary high-tension insulators amounts to 50 per cent. As there is no likelihood of a decrease in insulator material, it is plain to be seen that the labor in this case is the controlling factor in regard to the price. Some little difficulty has been encountered in malleable fittings, but not sufficient to cause appreciable delay in present deliveries. Copper Lower, But Some Products Advance Rail Bonds at 71 Per Cent — Overhead Line Brass Shows Increase of About 10 Per Cent Although there has been no advance in copper in the past two weeks, prices have advanced or are about to advance on several items of electric railway ma- terial utilizing copper or brass. Copper may be purchased now at 22 cents a pound. Rail bonds reached a higher level when the discount was changed to li per cent on August 4. It was only two weeks ago that the discount dropped from 15 to 10 per cent. Orders for rail bonds are being received continu- ally, but the volume is not so great as it should be at this time. Many of the railways have sent out inquiries on prices, but have not placed orders on account of financial difficulties. As soon as some of the relief which has been granted to various companies, in the manner of fare increases or in charges for transfers, is granted to other com- panies the volume of business will be greatly increased. Overhead Brass Increases Reports have been received that overhead line brass is to increase in the neighborhood of 10 per cent on August 11. This advance has been anticipated ever since the rise in copper sent up prices on manufacturered copper and brass products. In so far as these ears and other bronze goods are concerned prices on this line were reduced, follow- ing the market price of copper, during the early part of the year. But the con- tinual advance in the copper market, plus increased cost of labor, will prob- ably put the cost of this class of ma- terial back to where it was during the war, or possibly even higher, according to the statement of a prominent line material manufacturer. It is also noted that malleable iron in small castings has been advanced on an average of 15 per cent during the last two weeks owing to the high wages which the foundries have had to grant the moulders. The general increase in labor of the character used in the man- ufacture of line material will average about 30 per cent. Shellac, which is used in the manufacture of line mate- rial, has advanced from 14 cents per pound just before the war to $1.10 at the present time. The wire bases increased some this week. Six manufacturers of rubber covered wire are on a 28 cent base while 7 are on 30 cent base. The majority last week were on 28 cents. August 9, 1919 Electric Railway Journal 307 Good Sales Expected in Car Fittings Maintenance Orders on Curtain Fixtures Just Fair — Scattered Orders for Car Hardware Car hardware, curtain fixtures and seats and seating material show but little activity although it is known that much equipment of this kind will be purchased in the near future. Mainte- nance orders as a rule are only fair. Many companies are operating cars with old or sun-faded curtains whose edges are badly worn, and these prob- ably will be renewed this fall when the cars are overhauled. In places where hardware is missing is has not been re- placed, and a considerable amount of this business is looked for when the companies begin making repairs. Car seatings are in demand for spares although the volume of new business is not large. There has been no change in prices with the exception of genuine leather which has increased from 8 to 10 per cent. It is used in the smoking compartments of the inter-urbans. This is the first increase noted for several months in these li-nes. The general feeling is that many roads will bring up their equipment to the condition that it was in previous to the war. All organizations are in better shape to take care of necessary repairs as most of the skilled employees have been released from the service. These men are available for the overhauling and repairs that have not been made in their absence, due to lack of finances or skilled labor. Rolling Stock Brooklyn (N. Y.) Rapid Transit Com- pany has placd an order with the Pressed Steel Car Company for 100 subway cars. Elmira Water, Light & Railroad Com- pany, Elmira, N. Y., has placed an order with the Osgood-Bradley Car Company for seven safety cars. Berkshire Street Railway, Pittsfield, Mass., has been authorized by the Pub- lic Service Commission to expend $74,- 000 for seventeen safety cars. Marshall (Tex.) Traction Company has just received two new double truck cars for use on its lines in Dallas. The cars had been ordered for several months,. but had been delayed en route. , Safety Car Devices Company, St. Louis, Mo., has received an order from the J. G. Brill Company, covering 200 sets of its complete air and safety con- trol equipment including brakes, West- inghouse compressors and governors for the cars recently ordered by the Brooklyn Rapid Transit System. Municipal Railway of San Francisco, Cal., through City Engineer O'Shaugh- nessy, has announced its preliminary plans for the construction of a new model street car for its Union Street branch. The Board of Public Works, it is reported, asked the supervisors to call for bids for the building of a sam- ple car, designed particularly to meet the heavy grade conditions on that line. It is to be a center entrance and exit car, built at an estimated cost of $11,000 for the first car, on a cost-plus basis. Recent Incorporations Northeast Oklahoma Traction Com- pany, Miami Okla. — Incorporated with a capital stock of $1,000,000 to con- struct and operate an interurban line from Miami to Commerce, Tar River, Picher and Hockerville, all in Ottawa County, Oklahoma. (Apr. 6, '18). Track and Roadway Pacific Electric Raiiw|iy, Los An- geles, Cal. — Work has been completed by the Pacific Electric Railway on the electrification of the old Southern Paci- fic link between Colton Avenue and Market Street, Riverside. This line will be used by the interurban cars coming into the city from Redlands, San Bernardino and Colton. Peoria (111.) Railway. — Work on the rehabilitation program as tendered the Peoria Railway by the city of Peoria, precedent to the 6-cent car fare agree- ment, will be begun by the middle of this month with the improvement of the Monroe Street line. An order for 250 tons of steel has just been placed by the company and the greater part of this will be used in relaying the Mon- roe Street line. Plans and specifica- tions for rebuilding the cemetery bridge, leading to Glendale cemetery, are now in the hands of the company officials and that work is expected to be begun in the near future. The work of rehabilitation will cost about $100,- 000 and, according to the new con- tract, is to be completed by Dec. 1. New Orleans Railway & Light Com- pany, New Orleans, La. — The construc- tion of a new line by the New Orleans Railway & Light Company, to be known as the Industrial Canal Line, has been approved by Judge Foster of the United States District Court and work will be completed about Oct. 1. United Railways, St. Louis, Mo. — Re- ceiver Wells of the United Railways has adopted the plans prepared by the company's engineers before the receiv- ership for the reconstruction of twenty- one miles of track at a cost of $750,000. Plainfield, N. J. — Residents of Plain- field, South Plainfield and Metuchen have taken steps to organize the New Jersey Trackless Trolley Company to build and operate a trackless trolley line between the three municipalities. Charles H. Frost and Tepper Brothers, Plainfield, have started the movement. It is estimated that it will cost about $125,000 to build and equip the line. Interborough Rapid Transit Com- pany, New York, N. Y. — Transit Con- struction Commissioner John H. De- laney has awarded to A. W. King for $810,279 a contract for the building of eleven stations on the Pelham Bay Park Branch of the Lexington Avenue subway. The bid of Mr. King was the lowest received. Contracts have al- ready been let for general construction and track work and the former is in progress. Commissioner Delaney has also approved the award of P. N. Brown & Company of a contract for the construction of the new Atlantic Avenue station on the Brighton Beach connection of the Fourth Avenue sub- way in Brooklyn. The price was $85,781. Philadelphia, Pa. — Sealed proposals will be received until Aug. 19 by George T. Atkinson, assistant director of the Department of City Transit, Philadelphia, Pa., for the construction of the tracks of the Frankford Ele- vated Railway on the elevated structure on Front Street, Kensington Avenue and Frankford Avenue between Callow- hill Street and Harrison Street, 5 miles. The contract will include the furnishing and laying of about 11 miles of single track, of which 38,900 ft. will be laid in stone ballast and 20,800 ft. will be laid with short ties bedded in con- crete. Plans and specifications may be obtained upon deposit of $10, which will be refunded upon the return of plans. Sherbrooke Railway & Power Com- pany, Sherbrooke, Que. — Plans are be- ing made by the Sherbrooke Railway & Power Company for the construction of an extension of its lines. Dallas (Tex.) Railway. — Work on a new interurban line for Dallas will be begun within the next few months, ac- cording to formal notice to this effect given to the City Commission by J. F. Strickland, president of the Dallas Railway. The traction company is ob- ligated under its franchise to build two interurban lines at least 30 miles in length each. Work on the first must start by Oct. 1, 1919, and on the second by Oct. 1, 1920. Corpus Christi (Tex.) Railway & Light Company. — It is reported that improvements will be made to the prop- erty of the Corpus Christi Railway & Light Company, recently placed in the hands of a receiver, as soon as the sanction of the court for the same is obtained. Waco-Temple Interurban Association, Waco, Tex.— H. W. Meisner and H. L. Dailey, both of Temple, have been se- lected as directors of the Waco-Temple Interurban Association, promoted by O. A. Ryfle of Waco, with the announced purpose of building and operating an interurban line between Temple and Waco. Contract for surveys has been awarded by the Assocaition to the J. G. White Engineering Company of New York and work has already begun on these surveys which will determine the route to be followed by the line. [July 5, 1919.] Wichita Falls, Tex. — The immediate construction of an electric interurban line from Wichita Falls to Burkburnett, 10 miles north, is proposed by a com- pany now being organized among the 308 Electric Railway Journal Vol. 54, No. 6 oil men of these two towns. Burk- bumett interests have pledged $50,000 of the proposed $200,000 capital stock to be sold, and Wichita Falls men have agreed to underwrite the remaining $150,000. Leading business men of the two towns are interested in the move- ment. Wisconsin Traction, Light, Heat & Power Company, Appleton, Wis. — It is reported that the Wisconsin Trac- tion, Light, Heat & Power Company will extend its lines to tiearby towns. Work on the construction of an exten- sion to Hortonville has been begun. Power Houses, Shops and Buildings Tuscaloosa Railway & Utilities Com- pany, Tuscaloosa, Ala. — A cold storage plant and creamery will be constructed by the Tuscaloosa Railway & Utilities Company. British Columbia Electric Railway, Ltd., Vancouver, B. C. — Plans have been prepared by the British Columbia Elec- tric Railway for the construction of a transformer station at Bamet. Shore Line Electric Railway, Nor- wich, Conn. — The Shore Line Electric Railway has petitioned the Public Util- ities Commission of Connecticut for its approval of the method of construction of a 33,000-volt transmission line from Hallville to the Noank substation. Union Traction Company of Indiana, Anderson, Ind. — The directors of the Union Traction Company of Indiana are negotiating for the purchase of the power plant at Detamore and the water rights of the Cartwright stone quarry. Winnipeg River Power Company, Winnipeg, Man. — Work has been begun by the Winnipeg River Power Company on the construction of a large hydro- electric power plant at Dubonnet Falls on the Winnipeg River, 75 miles from Winnipeg. The company, which is closely allied with the Winnipeg Elec- tric Railway, contemplates not only supplying power to the latter company but to develop an extensive power busi- ness in towns throughout Manitoba. The cost of the plant and transmission system is estimated at about $6,000,000. Missouri & Kansas Interurban Rail- way. Kansas City, Mo. — Preparations are being made by the Missouri & Kan- sas Interurban Railway to extend its electric lighting, power and heating service in the towns and farming dis- tricts along its railway lines. Sub- stations will be located at Adams and at Milburn Place. The company ob- tains all of its energy from the Kansas City Light & Power Company. Chatham, Wallaceburg & Lake Erie Railway, Chatham, Ont. — It is reported that the Chatham, Wallaceburg & Lake Erie Railway will be operated under hydro power in about a month. Two 250-kw. rotaries will be installed in Chatham, one at Wallaceburg and one at Cedar Springs. Trade Notes Naugle Pole & Tie Company, Chi- cago, announces the opening of a branch office, in charge of E. L. Morier, at Room 800, 41 Park Row, New York. Hess-Bright Manufacturing Com- pany, Front and Erie Streets, Phila- delphia, has taken bids for a two-story addition, 43 ft. by 105 ft., for its ball- bearing factory. The American Precision Works, 135 Cedar Street, New York City, plans to remove its works to some city near New York, probably Newark, where it will increase its manufacturing sched- ule. Inquiry No. 30,032. — A street railway company in Spain wishes to receive catalogs of materials such as rails, overhead construction and electrical conductors. Correspondence should be in Spanish. Westinghouse Air Brake Home Building Company, an interest of the Westinghouse Air Brake Company, Wilmerding, Pa., has bought eight and one-half acres of ground in Swissvale, Pa., near its plant, on which to erect homes for employees of the Westing- house interests. Trump Manufacturing Company, of Springfield, Ohio, manufacturer of water-power machinery, announces that R. A. Burford, of Atlanta, Ga., has been appointed general representative of the company for the sale of hy- draulic turbines in Georgia and North Carolina. Mr. Burford's office is in the Forsyth Building, Atlanta. Dr. Edgar Kidwell, M. E., formerly Pacific Coast manager of the Babcock & Wilcox Company, New York, has been elected general manager of the Kidwell Boiler & Engineering Com- pany, organized at Milwaukee, Wis., with a capital stock of $1,000,000, to manufacture high-pressure water-tube boilers of his own design. F. N. Cooley has been promoted from assistant sales manager to sales mana- ger of the Seattle office of the Western Electric Company. Mr. Cooley first be- came associated with the company in 1912 as lamp salesman at San Fran- cisco. Two years later he became sup- ply specialist at Seattle, a little later becoming assistant manager there. Green Engineering Company, East Chicago, Ind., announces the appoint- ment of the firm of Bull & Livensparger as its sales representatives in Chicago and northern Illinois territory, with headquarters at 14 East Jackson Boulevard. Mr. Bull has been con- nected with the company as an engineer for the past seven years, and Mr. Livensparger has been a member of its sales force for the past nine years. For these reasons the members of the firm bring a wealth of experience to their new work. Edison Lamp Works of the General Electric Company on June 8 delivered to the Republic Electric Company, Cleveland, Ohio, one of the new Mazda C-4 tipless lamps, via aerial mail serv- ice. The regular mail plane left Bel- mont Park, New York, at 5 a.m., arriv- ing in Cleveland about noon, and the lamp was delivered to Louis Griesser, president of the Republic Electric Company, in good condition, through the regular post office channels. The transportation department of the Edi- son Lamp Works announces that it is now ready, in cases of emergency, to make delivery of lamps by aeroplane, in all sections of the country covered by government aerial mail. It is ex- pected that Heller Field, at Newark, the largest government landing field for aerial mail service in the East, will be ready for use shortly, and this will make for even quicker service. Pack- ages shipped by aerial mail are limited to 30 in. in length and girth. British Electrical Importers' Asso- ciation.— It is reported in the London Electrician that the Electrical Im- porters and Traders' Association has recently been formed and several lead- ing firms have already applied for membership. The object of the asso- ciation is to combine importers and traders in opposition to the action of British manufacturers for the total prohibition of imports of certain classes of electrical and allied goods. The association will oppose such un- reasonable restrictions of trade and will try to secure reasonable facilities for importing and distributing such goods as are required by the public and are not manufactured in England either in sufficient quantities or suita- ble quality. The association is in full sympathy with legitimate means of fostering home industries and encour- aging the handling of British goods, but considers that established import- ing interests should be fairly treated and is not willing to see the trade given over to a group of manufacturers to the detriment of consumers. The address of the association is 97 Cannon Street, London, E. C. 4. Frank W. Challis is secretary. New Advertising Literature Lungmotor Company, 711 Boylston Street, Boston, Mass.: Booklet on the Lungmotor and the Need of It. Electric Undercurrent Company, Lamberton, W. Va.: Catalog descriptive of a sectional surface contact system. Blaw-Knox Company, Pittsburg, Pa.: Bulletin No. 200, descriptive of Blaw cableways, of the automatic sin- gle-rope type. Combustion Engineering Corporation, New York, N. Y.: Illustrated booklet showing details of construction of the Grieve grate for hand-fired boilers. Clark Tructractor Company, Chicago, 111.: Illustrated pamphlet showing con- struction and application of the "truc- tractor," a gasoline-propelled truck of small size for hauling trailers in indus- trial establishments and elsewhere. dr. Consolidation of Street Railway Journal and Electric Railway Review Volume 54 New York, Saturday, August 16, 1919 Number 7 R A pv^ Will a P. O. and Nickel Fare Platform Elect? EX-GOVERNOR EUGENE N. :yid|^S lof Massa- chusetts has announced his intention to be a candi- date for the gubernatorial nomination at the primaries next month on a platform of public ownership of the public utilities and 5-cent street car fares. This he be- lieves is the issue of the hour, at least in Massachusetts, and his announcement repeats his statement made at the hearing in Washington that he was advocating public ownership in the interest of a better democracy. Elec- tric railway interest may watch this movement in Massachusetts with keen attention, for the results will give an expression of the will of the people on this subject as of to-day. It may be that the public is thinking differently of the matter now than it has in the past and hence, if the final campaign issue in Massa- chusetts proves to be the ex-governor's platform, then the answer which will be supplied will throw much light on this situation generally. Mr. Foss is the only Democrat who has ever served three terms as governor of Massachusetts. He has also been prominently identified with a number of trac- tion properties in New York and Massachusetts, so 'hat he has studied the matter both as owner and from the public point of view. This adds to the interest of his present platform. Higher Fares Will Succeed with Better Service THE fact that the makers of other commodities have succeeded in getting higher prices for their prod- uct without improving its quality or the quantity of the same is small consolation for the electric railway oper- ator who faces a diminishing clientele because of much smaller increases in street railway fares. The only way to do is to take the phenomenon for granted regardless of theories, and try to find a way out of the tangle. Perhaps there is no one best course out of that tangle. Still, a reasonably safe road is the introduction of more service rather than less when a fare increase is nec- essary. We can think of nothing less likely to coax back the patron of 5-cent days than the cutting down of mileage in proportion to the losses that usually follow in the immediate wake of a fare increase. Many a man who dropped off upon the increase in fare would come back in a few weeks if his determination to stay away were not stiffened by cuts in service which turn him into a confirmed walker, a jitney patron or an auto- mobile ovraer. "But," says the despairing management, "what else is there for us to do? We must earn so many cents per car-mile run." Herein lies the fallacy of the long headway. Better to earn less per car-mile but run more car-miles and at a lower cost per car-mile. That lower cost is obtainable to the greatest degree with new cars of one-third the weight, and one-half the platform ex- pense, but even with the existing cars wonders can be worked at a cost not exceeding two months' wages of the rear platform alone ! In an age when needless man- ual labor is inexcusable, in an industry where ample power is always on tap and at a time when every dollar is needed, no electric railway manager can afford to make his utility less useful to the public. Let him screw up his courage to the sticking point, if need be, and arrange to give this increase in service before rather than after an increase in fare. Then, and then only, will he be able to rely upon the fairness and squareness of the American public which does not hate any public utility with half the fervor that it hates a quitter. Safeguarding the Quality of Factory Product by Materials Testing WHEN a failure occurs with some piece of electric railway equipment, the cause is immediately sought to determine whether it was poor material, bad workmanship, faulty design, improper use or insuffi- cient maintenance. There is a natural tendency on the part of operators to shift the blame for failure from thei': own shoulders, and the manufacturer is usually the first one asked for a reason. It is thus important for the manufacturer to test thoroughly the materials and detail parts of his product and, at the same time, to have the design of each piece of apparatus as nearly perfect as possible. These specifications require an in- timate knowledge of the properties of the materials employed in its construction. To bring out this phase of the manufacturer's work, J. S. Dean explains in this issue the way in which one manufacturer tests materials that enter into the construction of railway motors. This article, among other things, brings out the large variety and number of materials which enter into the construction of a railway motor. In fact, there is a constant demand for new materials or new combina- tions of materials that will meet the service conditions encountered. Some of the remarkable advances in railway apparatus which have been made in recent years have been the result of new applications or the use of untried materials. For example, the nece.ssity for using a steel of very high tensile strength and abil- ity to resist shock and vibration in railway motor work has led to the use of alloy steels. Testing is an essen- tial part of such development. The necessity for determining the properties of ma- terials is illustrated by the test outlined for the hard- ness of copper used in railway motors. Hard copper is required for commutators and soft copper for coil wind- ings. It is not sufficient to say that copper is hard or 310 Electric Railway Journal Vol. 54, No. 7 soft, but methods must be devised for determining relatively how hard or soft the material is. Further, in perfecting a motor design, magnetic flux, magnetic pull, permeability, heat dissipation, etc., must be taken into account. For example, the amount of heat that can be dissipated by the motor and its several wind- ings varies with different methods of insulating the conductors, and this difference considerably affects the cost of our modern motors. In any decision on the materials to be used, the question of price is most important. Sometimes a de- signer may be prevented from using the most desirable materials because the customer will not pay enough for the product to permit this. With sufficient data available from tests, the designer can select material that will be sufficiently reliable for the service within price limitations. Prices are largely determined by competition, and it requires more than a verbal state- ment to convince the buyer that the materials furnished will perform the service or that a higher price is war- ranted due to the better qualities of the materials. Ac- curate testing will furnish this. Again, the manufacturer of apparatus finds testing necessary because the same processes and methods of manufacture do not always produce the same quality of material. Take, for illustration, the product of the steel foundry. Here all heats are not equally good, and one part of each ingot is inferior to the remainder. The inferior part that cannot be sold must remain as scrap or be worked over again, with increase in manufacturing cost of the marketable product. Hence the inducement to the steel man to force as muih of his product as possible upon the purchaser, even though some of it may be slightly inferior. The testing de- partment prevents this. Is There Any Standard Track Sub-Construction? WHAT is the best track sub-construction? Nat- urally the answer is, that which will remain in good condition the longest, at the least cost, require the least maintenance and maintain the smoothest and most serviceable pavement. But what will do this? There seems to be a difference of opinion. Thus, at the recent meeting of the Hlinois Electric Railways Association the author of a paper on track maintenance maintained that the expense of monolithic concrete construction was not warranted either by the improvement in the finished work or by the decreased maintenance, and during the discussion which followed all of those who participated agreed with this conten- tion. It was also contended that the cheapest wood ties were the best for paved track and that a 7-ft. tie was just as good as one 8 ft. long. On the other hand, there are advocates of the solid concrete construction and steel ties as first choice. This is borne out in one instance by an article which appeared in the Electric Railway Journal on May 3 on the Chicago standards. Another emphatic statement by the Illinois delegates was that manganese rails and crossings are absolutely useless. This is somewhat the same idea, stated more positively, as that outlined in an editorial in this paper on July 12. Thei-e are some, however, who consider manganese curves and special work well worth the additional cost. A third subject is that of paving. The delegates at a recent convention of Iowa electric railway operators were unanimous in their approval of brick for ordinary traffic, with granite block for exceptionally heavy serv- ice, and in their condemnation of wood block. At the Illinois meeting it was stated that service had demon- strated that a smoother pavement than either granite block or brick was necessary and that wood block and monolithic pavement were best for heavy traffic. All of these facts simply illustrate the divergence of opinion. In some respects it is fortunate that all engi- neers do not think alike, else many commercial products would find no champions. Of course "old man Local Conditions" is the big factor which dictates the choice. Each property is anxious, however, to settle upon the best construction which will meet these local conditions, and we look forward to some further interesting papers and discussion on the subject of track construction at the Atlantic City Convention this fall. Can City and Railway Be Good Partners? THE deplorable traction situation of New York City brings up an interesting aspect of the question of partnership in electric railway enterprises between municipality and company. It is the essence of part- nership agreements that the interests of the partners .should be mutual. In the New York case it would seem that there is room for a perfectly legitimate divergence of view, although the result is unfair to the railway. Without going into details, it may be stated that the Interborough Rapid Transit Company and the New York Municipal Railway Corporation are partners with the City of New York in the financial results obtained with the rapid transit lines built at the cost of the latter. Vvhen the agreements were made the Inter- borough Rapid Transit Company was granted a prior lien upon the net earnings for the purpose of paying an agreed-upon rate of return upon its investment in the pioneer rapid transit system which it had been operating under an earlier agreement. A very similar plan was followed in the Brooklyn case. What looked like a good bargain at the time has now become an intolerable burden on the railways concerned, through the increases in costs and the continued in- crease in average length of ride. A situation has been reached where both the private and public partners in the enterprise are losing money at an alarming rate. Yet the present administration of the City of New York evinces no interest in any plan of continuing to make the rapid transit system self-sustaining. Its at- titude appears to be that it can stand the losses at least as long as its partners. Whether expressed or implied, this attitude brings out sharply the divergence of interests in a case of this kind. The railway as a private undertaking must stand on its own bottom. It cannot get new capital for bet- ter service unless it is giving a satisfactory return on the capital already invested. If it cannot sell its prod- uct— transportation — at a satisfactory price, it must be listed as a failure. Contrariwise, the city partner may hold the view that the losses from transit operation are of less ac- count than higher fares that might tend to discourage the spreading of the population, increase policing and sanitation charges, reduce the income from real city taxation, etc. In short, from the city's point of view, un- restricted transportation facilities are important enough to be paid for by others than the car riders alone. August 16, 1919 Electric Railway Journal 311 whereas the private operator must not only depend ab- solutely upon the car riders for revenue but must ac- tually turn overj part of that revenue to the tax funds ! There is room for a wide difference of opinion as to the meaning of "good service" when one partner means as much service as the fare receipts permit and another partner means as much service as the municipal treasury can stand. So obvious a clash of interest brings out the weaknesses in public-private partnerships of the Nev^r York type. Justice is possible only in those service-at-cost contracts in which the op- erator is assured a certain return or at least the privi- lege of raising fares until that return is secured. Massachusetts Wants a 5 -Cent Fare Back IS IT possible that the 5-cent fare is coming back? Is King Nickel Coin to regain his throne after having been banished in so many of his dominions and threat- ened with exile in other places? This is the thought that must come to mind when reading that the Massa- chusetts Senate has passed a bill fixing a 5-cent limit for fares on trolley lines in that State, the excess to be assessed upon the taxpayers. If any state has had experiences with varying rates for car rides it is Massachusetts. That commonwealth was alive to the street railway situation and authorized fare increases before most of the other states woke up. It went farther than the others when the Boston trustee plan was approved. But the results under thai- meas- ure have tended to irritate the car riders, more and more patrons having drifted away to "shank's mare" or the steam road competitors as the cost of rides mounted to 7, 8 and 10 cents. An additional wage bur- den estimated at $2,500,000 having been imposed by the recent strike settlement, the question of where next to turn for revenue became another menacing problem. It is perhaps too early to say seriously that the trus- tee plan of operation, as carried out in Boston, is a failure. On its face, the measure appeared to offer an ideal solution of the transportation question. It hap- pened, unfortunately, that there was much deferred maintenance to be caught up with and other expenses increased so fast that frequent changes in rates of fare were necessary. The security holders, of course, were safe in the guarantee of their return, but to insure this the people who used the cars — a constantly decreasing number — had to be taxed higher and higher. Apparently the time had come for seeking other rem- edies, and as the Legislature was in session when the railway strike pointed to still more complications, the 5-cent maximum fare bill was quickly approved. Sup- porters of this 5-cent fare law argued that the burden of an indispensable public utility should not fall wholly upon those who use it but should be borne in part by those who share in its benefits, directly or indirectly. It was pointed out that if the maintenance of a fire depart- ment justifies taxation, the people of a community should share also in the cost of maintaining an impor- tant transportation system. In view of the extent to which some form of subsidy is being' urged, though not by railway men, it would be quite worth while for the Federal ' Electric Railway Commission to consider it, even if only to outline when and where subsidies are desirable. Such a study, in our opinion, would show that the number of such places is extremely limited. What the industry as a whole wants is to be given just a fair chance to stand on its own legs. That means relief from all of those imposts which arise out of no part of the production of the commodity, transportation, and a reasonable measure of freedom in collecting what, and only what, is the actual cost of that commodity, including the continuing cost of the money which made the service possible. Divergent but Concurrent Views on Electric Railway Crisis AFTER an interruption of two weeks the hearings ^before the Federal Electric Railway Commission were resumed on Monday, Aug. 11, with the Secretary of War on the stand. The fact that an official of Mr. Baker's responsibilities would take several hours from> his crowded schedule for this purpose is an indication of the intimate association in the minds of public of- ficials between the public welfare and electric railway prosperity. The earlier hearings were arranged by the American Electric Railway Association effectively to stress the predicament of the industry, with a view ultimately to suggesting possible remedies. The second group of witnesses were selected by the commission for the purpose of bringing out the public's point of view. Taking a perspective view of the testimony to date, a remarkable unanimity is seen among the views ex- pressed by men holding all sorts of ideas as to causes and remedies. Focussing on the essentials, they in the main agree that through the' action of gradual as well as unexpected influences, a vital public agency is in danger of collapse before the ordinary time-consum- ing remedies can be applied. Further, the crisis is recognized as so acute that preconceived notions as to theories and practices must be set aside for the time to permit some remedy to be used in time to save the pa- tient. The commission repeatedly brought the wit- nesses back from discursions into the general field of economics to reply to the pointed question: "What can be done for the railways now?" In studying the evidence presented to the commis- sion, therefore, it can be divided into two parts : name- ly, that relating to the ultimate solution or solutions of the problem, and that bearing on the immediate solu- tion or solutions. The testimony will help, we trust, in finding both. For the present we are primarily inter- ested in the latter. In this connection opinion seems unanimous that such fares should be permitted as will produce the greatest net income, regardless for the time of ordinary restrictions. Then, after all unjust imposts are eliminated, taxes should be reduced, thus throwing a part of the railway load upon the shoulders of the general public. Concurrently and essentially the public and the railways must get together as never before to save the business from destruction, leaving to a later decision the determination of which can, in a given case, give the desired service with best satisfaction to the local constituency. At the hearings it was especially interesting and en- couraging to note that the state commissioners and others in administrative positions expressed deep con- cern in regard to the crisis and showed a sincere desire for justice to a utility which has so greatly contributed to the welfare and general prosperity of the country and is continuing to do so in increasing measure in spite of jitneys, private automobiles and other means of transportation. 312 Electric Railway Journal Vol. 54, No. 7 Insuring Adequate Coal Supply with the Least Expenditure Of Several Plans Considered the Layout Adopted for Han- dling Coal Represented the Most Efficient Use of the Invest- ment—Special Ways to Keep the Cost Down Are Described By GEORGE E. WOOD Supervisor of Power Plants. The Connecticut Company, New Haven, Conn. HAVING constructed a new power plant at New Haven, Conn., on a site adjacent to an old one, and having vividly in mind the experiences of the winter of 1918, this company realized from the points of view of continuity of service and efficiency, that new and larger coal storage and better trans- portation facilities, and more efficient handling equip- ment were necessary. All coal supplied to the old plant came by way of barges on the river. While there had frequently been a few days at a time during which the barge route was icebound, the situation in that respect did not become serious until the cold winter of 1918. AVith no railroad connections to the yard, it was difficult to get coal by that route, and anyway, the great short- age of cars which existed at that time made it prac- tically hopeless, so that we had impressed upon us very forcibly our need for larger storage facilities. With these requirements in mind, we set about to determine what plan could be worked out that would suffice and at the same time not entail too great an investment, for money was not readily available. The general plan of Fig. 1 shows the scheme which was finally decided upon. The original coal-handling facilities consisted of an 85-ft. mast and galf and steam hoisting engine, handling a li-yd. clamshell grab bucket. With this equipment, coal was unloaded from barges and transferred to an overhead receiving hopper from which it was discharged into 5-ton standard-gage coal cars operating on a wooden trestle 45 ft. high. These cars were hauled by Haven Street RIVER FIG. 1— GENERAL LAYOUT OF COAL HANDLING EQUIPMENT AND STORAGE FACILITIES AT NEW HAVE :, Q,0.\A. August 16, 1919 Electric Railway Journal 313 an electric locomotive and their loads dumped into a conveyor hopper or into a storage pile underneath the trestle. All coal was reclaimed from storage by means of a traveling monorail crane operating on a hrack suspended from the cap timbers of the trestle lu-nts. As there was but one conveyor supplying bunkers, the monorail track was extended into the boiler room a. id FIG. 2 — TRAVELING TRANSFER AND PICK-UP BRIDGE CONSTRUCTION dovra through the firing aisle, to permit getting coal onto the floor in the event of a failure in any of the con- veyor machinery. The total available storage capacity in the layout was but 6000 gross tons, and this fact kept the fuel agents on the anxious seat during the winter when the barges would become weatherbound. There was also no possibility of securing rail connec- tion for the plant, since there was insufficient space to install the necessary track and special work. Planning Additional Facilities After a thorough investigation of the possibilities of utilizing any of the original property north of the plant for storage, it was decided that additional land would be necessary. Consequently, the piece of land FIG. 3. — THE TRAVELING BRIDGE WITH TRESTLE CAR TRACK UNDERNEATH AND CAR DUMP PIT AT LEFT inclosed by the dotted boundary line in Fig. 1 was purchased, it being the only property available. The problem of getting coal from the water front to storage was next considered, and eight schemes were evolved, employing locomotive cranes, cable and automatic railways, belt conveyors, bucket conveyors, cable telpher, pivoted boom, and the traveling transfer and pick-up bridge. By the process of elimination, con- sidering all the factors entering into each case, the traveling transfer and pick-up bridge shown in Fig. 2 was finally decided upon as the one which would be of the maximum service and at the same time involve the minimum cost. Tentative plans were then drawn up, giving the over- all dimensions for the structural steel bridge and towers and a contract for fabricating and erecting this part of the equipment was awarded the Berlin Construction Company. The span of the traveling transfer bridge from center line to center line of towers is 157 ft., with a clear height from railhead to lower chord of the bridge truss of 41 ft. 9 in. The monorail crane previously suspended from the cap timbers of the trestle bents along the river and used for reclaiming the coal from that storage pile, was later transferred to the steel pick-up bridge and suspended on the center line of its lower chord. A power rail supplies energy to its motor. When the order for the traveling transfer bridge had been placed, the first work done in connection with the new storage area was to construct the footings and track for the traveling bridge. These footings were made of concrete set in the ground an average of 5 ft. apart where they rested on solid ground. These were then spanned by 8-in. x 12-in. yellow pine stringers, to which the 100-lb. T-rails were fastened with 6-in. screw spikes. At the same time work progressed on a concrete unloading pit 40 ft. long by 23 ft. wide and of sufficient capacity to contain three carloads of coal. This pit was located at one side of the storage area FIG. 4 — SPECIAL AXLE BEARING BRASSES FOR TRAVEL- ING TRANSFER BRIDGE where the coal could be removed from it by the pick-up bridge, and so situated longitudinally that the length of track either side of the pit provided sufficient space for two cars. Three cars at a time could thus be set in the yard clear of the main industrial track of the Manufacturers' Railroad, and with the first car standing over the pit. The electric car which is used in hauling the ash cars from the plant to the dump is also used in shifting the standard coal cars. One of the problems which came up in connection with the transfer from the old to the new layout was the lowering of the old trestle 28 ft. without interrupting the operation of the coal cars at the higher level. This was done by cutting off the posts in the bents, and fram- ing in new caps and stringers in the section of the trestle between the unloading mast and the conveyor hopper. New rails were laid and when ready, the cars and the locomotive were lowered to the new level and were operated there while the upper section of the trestle was removed. This trestle was also extended in a curve into the 314 Electric Railway Journal Vol. 54, No. 7 FIG. -GEAR TRAIN REQUIRED IN DRIVE OF TRAVELING BRIDGE MECHANISM power house so that coal might be delivered, in case the conveyor broke down, on the boiler-room floor with end dump cars. In order to avoid having tracks for this purpose in the concrete floor of the boiler room, since it would be used only in emergency, use was made of some old tram rail. Iron thimbles were placed in the floor at proper intervals to receive steel dowels welded to the tram rail. Wooden dowels were placed in the floor at the proper spacing to receive screw spikes placed through the holes in the flat tram. By this means the rails can quickly be installed at any time they are needed, and yet the floor is kept clear of the obstruction for normal operation. The section of the trestle between the conveyor and the Manufacturer's Railroad was next lowered and extended over the 34-ft. railway right-of-way and drive onto the new property. All old timber fit for further use was utilized in erecting the extension to the trestle across the new storage area. For the bridge members across the railroad, it so happened that the girder plates of one of the interurban line bridges had just been removed in order to strengthen that bridge, and these plates were made use of in the coal yard, although it took some figuring in order to utilize them. The bridge as built consisted of these steel plates with angle girders spaced 18 ft. 6 in. apart and supported at either end by box girder caps 14 ft. 6 in. long x 30 in. wide. These caps rest on a lattice column located on the center line of the track, the columns having a section 4 ft. x 15 in. This arrangement was necessary in order to provide clearance for the ash cars in going to and from the plant, since the curve is of such short radius as to cause considerable overhang. In con- structing the bridge no new materials other than the plates and lattice bars, were purchased. Power for the locomotive in hauling cars over the trestle is taken from a third rail which extends along the en- tire length of the trestle. Power for operating the bridge and monorail crane is collected through a standard trolley pole and wheel (as manufactured by The Connecticut Company) and trolley base mounted on a bracket on the north tower, from an overhead trolley wire. The trucks and driving mechanism were designed, manufactured, and in- stalled by The Connecticut Company, as the expenditure necessary, had they been purchased from manufacturers, was prohibitive. The trucks consist of 24-in. double-flange steel wheels pressed onto 5-in. axles (turned out of old car axles) running in 5-in. x 9-in. standard MCB journal boxes of the freight-car type. These wheels are spaced in pairs 5 ft. 2 in. on centers, and 40 ft. from center to center of pairs, four on the north and four on the south tower. The design of the ti-ucks is somewhat similar to that of a car truck, the journal box being secured to the sills by two IJ-in. diameter bolts, and the bottom of the box being held rigid by an arch bar of 4-in. x i-in. flat iron forged to shape. In order to pre- vent mutilation of the flange angles of the box and the sills, 11-in. plates were installed between the upper side of the journal boxes and the sills in such a manner as to throw all possible wear on these easily renewable filler plates. The wear due to thrust in the arch bars is cared for in a similar manner. Additional rigidity is secured by angle braces connecting the bottoms of each pair of journal boxes. With this type of truck it is evident that other than the standard journal brass was required in the boxes containing the driving shaft or axle, in order to prevent the shaft from throwing out of line and thereby allowing the gears to be thrown out of mesh and the wheel flanges to bind on the rail head. This was taken care of at small expense as shown in Fig. 4, by making a brass provided with lugs at the center fltting against the side of the box, directly in line with the 1^-in. bolts which secure the box to the sill. The top of this brass is identical with standard design, thus rendering any FIG. 6.— TRESTLE AND TRACK EXTENDING THROUGH MAIN STORAGE AREA FIG. 7— LOWERED TRESTLE THROUGH OLD PROPERTY AND THE CONVEYOR WHICH DELIVERS THE COAL August 16, 1919 Electric Railway Journal 315 FIG. 8— BRIDGE OVER MANUFACTURERS' RAILKOAD AND DRIVE standard wedge of the proper size available for repairs. The sides are brought down around the journal and bored in. larger in diameter than the journal, the bottom being slotted to provide for lubrication. The brass is slipped in place from the end of the axle. This design successfully held the shaft in line. Estimates were secured as to the cost of placing the driving motor for the traveling transfer up on the bridge with shafting and gears to connect it to a driving wheel on either leg. On account of the very long and heavy shafting and numerous bearings, and the beveled gears which would be required, the cost of this drive was very high and considered prohibitive. As a substitute, the scheme of placing a motor on the sill of each tower of the transfer and operating the two in series, was decided upon as an experiment. There was some misgiving as to whether this would work out satisfactorily on account of the difference in voltage which would be applied to the two motors even though they were connected in series. But the saving by such a scheme was so great that it was considered worth trying, and the nosing which it was feared would prevent satisfactory operation has been found to exist only in a very mild form. The motors used were two GE-80 machines, in- stalled one on the truck sill on either tower. These were connected through a train of gears and pinions of the type used on cars to the axles of two opposite wheels. The shafting used in mounting these gears was made from old car axles which were turned down and mounted in bearings specially designed for the purpose. The arrangement of the gears was complicated to a great extent by the difficulties of clearance and by the fact that it was impossible to cut a hole through the FIG. 10— POWER PLANT AND STORAGE AREA FROM HAVEN STREET truck frame for supporting the gear shaft, at a point sufficiently near the top of the girder to mesh the gear and motor pinion. This made it necessary to resort to the multiplicity of gears shown in Fig. 5, "but even with this, the saving over the usual method cf driving such a structure was very great. Safeguards to Continuity of Service By resorting to the various makeshifts which have been outlined above and utilizing old equipment wher- ever possible and doing practically all the work with its own forces, the company was able to provide the entire layout which has been described with an expendi- ture of approximately only $40,000. But the operation of the New Haven power station is now surrounded with every reasonable safeguard which would seem neces- sary. For example if the barge shipments of coal fail, coal can be received by railroad, and also promptly unloaded so that there is no demurrage to pay. If the railroad situation should be bad the barge would likely be in operation, but if not the new storage area provides approximately 14,000 gross tons of storage capacity which would keep the plant running for some time. If the mast and gaff working with the barge should fail, coal can be hauled from the main storage area or incoming cars to the bucket conveyor until repairs are made. If the bucket conveyor should fail, the track which has been extended from the trestle into the boiler-room floor can be used in conjunction with end-dump cars to bring coal into the boiler-room floor from whence it can be supplied to the boilers by hand until the conveyor is repaired. If the traveling transfer should be disabled, coal can be supplied in the absence of a barge by using the auxiliary mast and gaff adjacent to the barge end of the trestle to take coal from the 750-ton storage pile located there and lifted into the receiving hopper. This storage pile of coal is kept up to capacity by lifting coal from the barge and dumping it into the receiving hopper on the trestle, from which it is released through a chute on the op- posite side of the hopper, rather than through the bottom into the cars. Apparently the supply of coal to the power house is well surrounded with safeguards looking toward the absolute avoidance of any shutdown from this cause. fig. 9- -LATTICED COLUMNS OP THE BRIDGE AND TRESTLE TIMBERING A point of interest in connection with the recent strike of street railway employees of Chicago is the report that during the strike automobile thefts jumped from the usual average of ten per day to thirty, or an increase of 200 per cent. 316 Electric Railway Journal Vol 54, No. 7 Relaying Wood Block in Bridgeport, Conn. By J. S. Crandell Consulting Engineer, General Tarvia Department, The Barrett Company THE Connecticut Company has a large yardage of wood-block pavement in Bridgeport that has to be maintained. That portion laid in the area where T-rails are used has given much trouble from bulging and blowing up. The wood blocks were originally laid on a sand cushion over a concrete base, with sand filler. Since the joints were not waterproof, water found its way easily to the sand cushion ; the sand shifted, shov- ing the blocks up in some cases, and forming depres- sions in others. An accompanying illustration shows a section of pave- ment on State Street on a dry day. Wet weather causes severe bulging, so that it is no uncommon thing to have a dozen emergency calls in a day to have the bulges or "blow-ups" repaired. After examining a number of failures it was decided to repave the worst areas. The blocks were removed carefully so as to save as many as possible. The sand cushion was .shoveled out, and a 1:2:3 concrete was laid in its place. The crown between rails was reduced ; .BUCKLED PAVEMENT ON STATE ST., BRIDGEPORT, CONN. the crown in the dummy or devil strip was kept about the same, as it was not excessive. The concrete was floated to a smooth surface and allowed to set for twenty-four hours. A coat of hot coal tar paving pitch was then spread at i gal. per square yard. After the pitch had cooled the blocks were laid on it and the joints filled half-way to the top with paving pitch. An innovation was tried on June 6. With plain rect- angular blocks it is often difficult to get the filler to VARIOUS OPERATIONS USED FOR REPAYING BETWEEN TRACKS 1 — Placing Concrete on Base 3 — Pitch Paint Coat Over Smooth Concrete 2 — Sand Cushion Removed, Concrete in Place 4 — Applying Joint Spacers August 16, 1919 Electric Eailway Journal 317 flow into the joints. Numerous devices have been tried, with varyin,^ degrees of success, to separate the rows of blocks so as to allow the filler to enter the joints, and also to permit the blocks to swell without causing buckling of the pavement. The spacer used here for the first time is the invention of the writer, who has applied for a patent on it. It is simply a strip of single-face corrugated cardboard about 1:} in. wide by ^ in. thick. This is placed between the rows, separating the blocks sufficiently to insure the entrance of the filler, allow expansion of the individual blocks. and yet not permit the blocks to drag or move. The trial of this spacer was very successful, and the follow- ing week it was used on Thirty-fourth Street, New York City. The pitch paint coat and the waterproofing of the joints with pitch filler will prevent further trouble from expansion of the blocks in Bridgeport. The work of repaving is being done under the direc- tion of Mr. M. E. Stark, roadmaster of the Connecticut Company at Bridgeport, with Mr. Foster superintend- ing construction. Building Special Work with an Oxygen- Acetylene Cutting and Welding Outfit With Practically No Tools Other than the Cutting and Welding Outfit, Frogs, Switches, Switchmates and Other Special Work Jobs Were Completed By MONTELLE C. SMITH Formerly Local Manager and Electrical Eng-lneer, Brockton & Plymouth Street Railway, Plymouth, Mass. EARLY in 1917 the Brockton & Plymouth Street Railway purchased an oxygen-acetylene cutting and welding outfit to reclaim and to prolong the life of installed special work. A few weeks of use showed that this outfit possessed possibilities far beyond all expectations, and we soon began to consider not only the repairing of installed special work, but also the building of new special work in our own shop with its aid. We have been building this special work at odd jobs as opportunity offered ever since, and feel entirely satisfied with the results achieved. Since the major part of our badly worn special work consisted of frogs, these were the first pieces attempted, and more of these pieces have been built to date than of the others, though a few of the others have also been completed. The first rail of the frog is shown in Fig. 1. To construct this two measurements only are necessary, the width of the through-rail head at the point E and the distance from this point to F, the end of the frog point. The rail is first heated to a red heat on the line E D in an ordinary blacksmith's forge; it is then bent by placing a "jim crow" with the head at E until the line M E produced falls on F. After this bend sets, the cuts necessarj' for shaping the frog are made with the cutting outfit. These are indicated by dash lines in the illustrations. In cutting, an iron straightedge is used as a guide for the cutting nozzle to insure the cuts being straight and smooth. The construction for the second rail of the frog is shown in Fig. 2. The point C is located a distance from the end of the rail equal to H D in Fig. 1. The rail is then heated and bent so that the line G C projected will fall slightly outside the center line at E. The cut £■ C is then made and a distance E F equal to the G H in Fig. 1 is laid off and the cut F D is made. The two pieces can then be bolted together. Ordinarily, we fasten these with two S-in. bolts and, to secure additional strength and rigidity, the rails are welded along the line L M N, Fig. 3, to a depth of approximately i in. To shape the guard and leading-in rails of the frog, the outline of the frog point already made is laid out in chalk on the floor. The lines A C and B C, Fig. 3, are produced to F and G. At the points D and E where these lines are separated li in. (the usual width of a flangeway) will come the bend in the lead- ing-in rails of the frog. The points H and / are located ,A o FIGS. 1, 2 AND 3 — CONSTRUCTION OF THE FROG li in. out from the point rails. The lines H D F and I E G then show the shape of the leading-in rails and these are heated and bent as already described to conform to these shapes. Cuts made along H K and / 7 in the ball of the rail form the approach to the guide. The pieces are now ready for drilling and assembling. To facilitate the drilling, the entire frog is spiked temporarily in close alignment and, so far as possible, it is drilled with one setting. This drilling is done with a i-in. drill and f-in. bolts are used for tying, so that a tight fit is secured between the tie bolts and the I-in. pipe used for spacers. It is important that black-iron rather than galvanized-iron pipe be used for spacers, as molten iron will not lie close to the latter. The pouring of the castings, which is done at a local 318 Electric Railway Jouenal Vol. 54, No. 7 foundry, completes the frog. In pouring this casting the frog is laid right side up on a sand bed and fire clay and sand dams are made at the point where the castings are to be stopped. Also, a dam is made around the outside of the frog distant from the rails about 6 in. This space from the outside of the rails to the dam is filled first with molten iron and allowed to set until the entire frog is red hot, the advantage of this being that in this way the frog itself is expanded to the same degree as is the molten iron of the casting, and as the whole cools and contracts the fits between the rails and castings remain perfectly tight. When the frog is sufficiently heated, the inside casting is poured flush with the bottom of the ball of the rail C I p- J FIG.4- Mate Poin-t- Cut A H G F E D C FIG. 5-nate Point Bend Li ^ 4^ 4- 4^ * B FIG. 6 - Assembly FIGS. 4, 5 AND 6 — CONSTRUCTION OF SWITCH MATE or very slightly above it. The whole is then covered with sand and allowed to cool. When the frog is removed from its bed, the castings which have been poured on the outside for heating purposes break away, leaving only the casting between the rails. We find that two men can build a frog of this kind complete, ready for the pouring of the castings, in an eight-hour working day after becoming familiar with the procedure. The average cost per frog complete, including the castings, has been $28.25. How THE Switch Mate Is Constructed To make the switch mate a piece of rail on which we proposed to make the mate point is first cut to the desired length, as shown in Fig. 4. This rail is then heated and bent at some point, B, which need not be any specific distance from the end, but ordinarily should not be less than 18 in. This is bent until the line A B projects just outside the center line. The cut B D on the head is then made. Where the old mate is available we bend the new rail to conform to the old one. Otherwise, the curve is determined by taking the running side of the main rail of the old mate as a base and erecting ordinates at intervals. The distance from the running side of the main rail to the running side of the mate rail is laid off on each ordinate. Points arc thus located (Fig. 5.) and a curve drawn through these, &s, I J K, etc., gives the shape of the mate point desired. The rail is bent to conform to this line. After bending, the cut SP is made, the point S being that point on the mate rail where the mate rail is separated from the running rail by a distance of 1* in. After cutting the running rail to the desired length, this, together with the mate point, is placed temporarily in alignment (Fig. 6). For the guards we use scrap rail with an entrance cut, A B. This is bent to conform to the curve of the mate point and joins smoothly to the running rail. The guard rail is next temporarily spiked in position and the whole drilled and tied together in the same manner as the frog. We find that two men can build a mate in practically three-quarters of a working day at an average cost of approximately $25. Building a Complete Switch The first step in the making of a switch is to form the offsets in the main and guard rails shown at A and B, Fig. 7. After these have been made, the rails are bent to the shape of the switch pan. The old rails may be used as a pattern or the shape of the inside of the rail may be plotted on the floor in the same way as previously described. The rail G is cut at the end to conform to the shape of the heel of the switch tongue and the piece of guard H is fitted. The pieces can be temporarily spiked in position and the whole drilled and bolted up in the same way as were the previous pieces. In drilling we spaced the holes at such a distance from the top of the rail ball that, when the top of the switch tongue is flush with the top of the rail, i in. of casting is allowed between the bottom of the tongue and the top of the pipe used as a spacer. After the switch is bolted up, we cut a piece of i-in. steel plate to fit the space from the center of the bolt J to the center of bolt 7, and spot- weld this to the spacers on these bolts. This brings the heel of the switch pan to the desired height with the advantage that at the heel of the switch where the greatest wear always comes, we have a steel rather than a cast-iron pan. The circle to accommodate the switch tongue pin is cut in this steel plate and on the under side a short piece of steel tubing is welded. The inside diameter of this is the same as the outside diameter of the switch-tongue pin. This tubing not only gives a tight fit between the pin and its socket with steel rather than cast iron to take the wear, but also obviates the necessity of coring out this pin hole in the casting, with the likelihood of having it somewhat out of place, and consequently getting a poor fit be- tween the heel of the switch point and the rail G. The switch is now ready for casting. The switch is first laid right side up and a wood flooring of I-in. boards fitted from bolt 7 to the end of the guard rail at the switch point. Wood strips are also placed be- tween the under side of the ball of the rail and the F Bo/f K FIG. 7. CONSTRUCTION OF COMPLETE SWITCH flooring. A long cope extending from bolt J to the end of the guard rail at the switch point is placed over the switch and thoroughly rammed. This cope is then removed and turned on its back on a previously pre- pared bed. The flooring is removed from the switch pan and the switch turned bottom side up on the cope. A dam for holding the preheating metal is made in the manner previously described. The switch is heated and the casting poured from the bottom. As soon as it has become sufficiently cooled to minimize the danger of bending, the switch was turned right side up and a casting poured from bolt 3 to the end of the guard at E from the top. So far only one switch has been completed, and we August 16, 1919 Electric Railway Journal 319 cannot therefore give any very accurate data as to the time required for building or as to cost. The labor of two men for one and one-half days was required to build this first switch, and the entire cost of it, exclusive of the cost of the switch point, was approxi- mately $39. Undoubtedly, this figure can be bettered as the men become more familiar with the work. It is, of course, too early as yet to form an opinion as to the wearing qualities of this home-made special work compared to the all-rail special work that is made by the factory. We have had, however, two frogs in service for slightly over two years, one of these under 613 1 o C:; {i m ^ :J) JH' A;- o o o A,> ] QF m EE) O AO 0 m Side Enc ^ (Moide with Block C) J , . o Wrench G Block A Cloimp B FIG. 8— DEVICE FOR MAKING OFF-SET BEND fifteen-minute headway for eighteen hours per day, and the other between the main line and carhouse tracks under approximately seven-and-one-half-minute head- way. On the first of these no noticeable cupping has as yet taken place. On the second, however, slight cups approximately -fir in. deep have formed at the point "where the wheels leave the leading-in rails and start onto the frog point. Device for Making the Offset Bend in THE Side Rails In shaping side rails for switches, considerable diffi- culty was experienced in making the offset bend at the end of the switch point as shown at A and B, Fig. 7. Several ways of using two "jim crows" to make this bend were tried, but we found in every case that while we could get the bend it was always longer than desired, and there was always some twist to the rail. Finally, we built the device shown in Fig. 8. The base of this is made of an 18-in. I-beam which we happened to have available, the length required being about 10 ft. Through the center of this 1-in. holes were drilled every 6 in. to take the pins at the bottom of the block A. At M and N the sides were drilled and three- cornered links were put in of sufficient width to accom- modate the hooks of the "jim crow." In the holes H, G, E and F, 5-in. upright iron rods were fastened with nuts on each side of the web of the I-beam. These rods were about 10 in. long and were threaded on the upper end to take the wrenches G. The two blocks A and C were cast from steel and were identical except that block A is 1 in. deeper than block C. Block D for the "jim crow" head was made by cutting the pir from one of the blocks A and drilling the block to fit the end of the "jim crow" screw. Clamp B is made by fastening a piece of 3-in. x i-'m. iron to the back of block C and drilling this flat piece to fit over block G H or E F. The distance between the edges of blocks D and A determine the length of the offset bend. The method of using this device consists, first, in removing the "jim crow" and all of the clamps B. The rail is then heated at the point where the bend is desired and laid on blocks A so that the heated portion will come between blocks A and B, block B being of course out when the rail is put in. In this position the rail lies flat on its side and on all the blocks A, but is 1 in. above block C. Clamps B are placed over both E and F and fastened tightly with wrenches G. The "jim cro-w" carrying-block D is then hooked under links M and N and pressure is applied. As this pressure comes on, the rail makes first a single bend until it touches block C. This bend is closely followed with another clamp B on studs G and H, which prevents the end of the rail from springing up again. As this continued pressure is applied the rail gradually takes the offset bend and at its completion lies flat on both blocks A and C. British Diesel Engine Development BRITISH engineers in recent years have taken an active interest in the development of the Diesel engine, which was formerly promoted principally on the continent. For example in Britain, there has been a departure from, the normal design of the Diesel en- gine whereby use is made of a system of injecting the fuel into the combustion chamber by means of a high pressure placed upon the fuel alone. This system has been used in contrast to the air injection system of supplying the fuel to the combustion chambers. The newer scheme has been very successful in providing a sufficiently finely divided state of the oil for satisfac- tory combustion. The advantages claimed for this system are that lower compression pressures are required than for air injection engines. Two reasons are given for this. First, because of the relatively slow manner in which combustion starts with the "solid" supply system, fuel injection can be begun many degrees before the dead center, and this pre-injection gives heat to the gases and air within the combustion chamber and assists in the ignition and combustion of the ensuing charge of fuel. The second advantage is that the cooling effect of the expanding fuel injection air is absent with the solid or mechanical injection engine. This cooling ef- fect of the air in air injection engines must be counter- acted by carrying the compression to a higher pres- sure and hence higher temperature than otherwise would be required. Opportunities of a Foreman In its "executive series" the National Safety Council urges the co-operation of foremen in reducing accident risks by gaining the confidence of their men. Among other things a recent circular says: "If you are not a leader you are not a good foreman. What the men think of you is what they think of the company. The contentedness of the workers is determined by you. Know the job yourself and then show your workmen how to do it. You are responsible for the protection of your m.en and you can determine their attitude to- ward safety. If yau are careless they will become so — - and the careless man is a dangerous man." Speaking editorially regarding certain transportation projects in Great Britain, the Electrician, London, makes the following statement as to the economies of the situa- tion : "For the state to develop enterprises which are not sufficiently good to tempt private capital is, generally speaking, a proposition that is not sound." Fig. 1 — ilaking a Tension Test. Fig. 2 — Making- a Transverse Test on a Sample of Cast Iron. Fig. 3 — Subjecting a Sample to the Brinell Hardness Test. Fig. 4 — Drop Test on a Rough Turned Shaft. Fig. .5 — Measuring Conductivity with a Hoope's Bridge. Fig. 6 — Making a Core Loss Test. Fig. 7 — An Impact Test on a Small Sample. Fig. 8 — Subjecting a Sample to a Hammer Test. Fig. 9 — Testing a Sample of Sheet Steel for Permeability. Fig. 10 — The Draw Test of a Sample of Sheet Steel. AugKSt 16, 1919 Electric Railway Journal 321 Manufacturers' Tests of Materials for Railway Motors The Writer Describes Various Tests, tiie Apparatus Used and the Results Obtained for Determining the Physical and Electrical Properties of Material Entering Into the Construction of Railway Motors By J. S. DEAN Railway Engineer Westinghouse Electric & Manufacturing Company MAKING TESTS ON SAMPLES OP MATERIALS Pig. 11 — Left — A Patigue Test on a Specimen of Metal. Fig. 12 — Center — Measuring the Tensile Strength of Wire. Pig. 13 — Right — Measuring the Coefficient of Ex- pansion of a Test Piece. OWING to the severe operating conditions that railway motors must withstand in service, it is essential that all materials should have a large factor of safety, that they should be of uniform texture and strength and free from flaws and defects. Other- wise failures and breakdowns in service may occur, pos- sibly causing serious accident and congestion of traffic. In order to insure a reliable supply of raw materials to fulfill the above conditions, in the works of this company, materials are covered by a "P. D." (purchas- ing department) specification or an "M" (material) number, setting forth the requisite physical properties that materials must have in order to meet the desired requirements, as a guide to the inspection department in the acceptance of this material. To a very large extent, the percentage of material subjected to a rigid inspection and test is governed by common sense, past experience, source of supply and amount of trouble re- ported by the shop. To give every piece of raw ma- terial a careful inspection and a series of physical tests would be an unnecessary waste of time, money and ma- terial, which would not only handicap production, but enormously increase the cost of manufacture. The price factor in design is most important and is continu- ally being impressed in designers to keep costs low. In general, materials are given a careful inspection and are selected under the supervision of the research division of the engineering department. Some of the tests are made at the mills of the supplier, either by our own inspectors or by the manufacturer's testing ex- perts, witnessed and approved by our representatives, and others are tested and inspected at our own plant. Some of the most essential of these tests of metals and alloys will be briefly outlined and illustrated to give the railway operating men a better working knowledge of this very important subject. From the railway motor material chart as given in the article which appeared in the April 17, 1919, issue Cast Forged Hot rolled Cold rolled Axle Steel ■! Special alloy Electrical sheet Sheet Plate Spring Wire Metals. Iron Malleable Copper Tin. Wire Ribbon Strap Cable Braided Hard drawn bars Strip Sheet (tin plate) Brass Bronze Babbitt l Solder of the Electric Railway Journal, we have prepared the summary shown above of the metals and alloys used in the manufacture of a railway motor. In general, the various tests given to metals and al- loys depend largely upon the application which is to be made of the materials, the method of manufacture. Alloys 322 Electric Railway Journal Vol. 54, No. 7 shape, size and characteristics of material and are classi- fied as follows : Iron Malleable Cast Forged Hot-rolled Cold-rolled Steel i Axle Special alloy Sheet Plate I Wire Mechanical Tension . Wire Copper I Ribbon Strap Alloys / Brass I Bronze Steel. Cast Forged Compression | Iron Malleable I Alloy f Steel. Brass Bronze Transverse f Axle I ' I Spring Iron Malleable Copper Hard-drawn bars Allc Brass Bronze Hardness. Conductivity I Steel Forged I Copper Hard-drawn {Brass Bronze Babbitt ( Wire [ Copper I Ribbon I [ Strap [ Alloy Brass Core Loss Steel Electrical sheet Permeability Steel / Electrical sheet I Cast Spt-ciul M(-chanicol Tests Drop tests Alloy steel — shafts Hammer tests Babbitt and bronze bearings Impact tests Aletals and alloys Fatigue tests Metals and alloys Draw tests Sheet steel Pulling tests Wire Coefficient of expansion Metals and alloys Chemical Tests Made on Steel and Non-Ferrous Alloys In connection with the mechanical and electrical tests made on metals and alloys, a chemical analj' sis of certain of the materials is also frequently made, to determine their chemical properties. This is especially applicable to the various grades of steel and non-ferrous alloys such as bronze for bearing shells, babbitt for bearing lining and the various solders, as the amount of metals combined must be of a definite percentage to produce a satisfactory alloy to meet the required service condi- tions. Facilities for making these tests are provided by a well-equipped chemical laboratory in charge of expert chemists and metallurgists directly under the supervision of the research division of the engineering department. 0 0.001 0.002 0.003 Elongation , Inches per Inch of Length PIG. 14— GRAPH OF TENSILE TEST ON SPECIMEN OF, HEAT TREATED AXLE STEEL The contour and preparation of test specimens depend upon the shape of the material, the method of manufac- ture, the nature of tests to be made and design of test- ing machine. A group of test specimens used in con- nection with the various tests herein described is shown in Fig. 20. These specimens conform to the require- ments of the American Society for Testing Materials. In the case of alloy castings special sample pieces are cast from the same heat of metal from which the regular castings are poured, as shown in a second il- lustration. Fig. 18. The standard test specimens are machined from these sample castings. When the ma- terial is rolled or drawn stock, a section of the bar is taken and machined to the proper shape. Sheet metal is cut up to size to conform to the specified test dimen- sions. The required length of wire or cable for test specimens is cut from the end of the coils or reels and requires no further preparation or machining. Special alloy steel for shafts and large forgings have the test specimens removed by means of a hollow drill, after which they are machined to the standard size as shown in Fig. 19. The physical testing machine shown in Fig. 1 has a capacity of 150,000 lb. It is used for tension tests on various samples. 4000 6000 8000 1000 1200 Hammer Strokes PIG. 15 — RESULTS OP HAMMER TESTS ON BABBITT METAL August 16, 1919 Electric Railway Journal 32«> The most common test piece used with this machine is 4i in. long (with 2-in. gage length) and 0.505 in. in diameter. Other pieces 0.357 in. in diameter by li in. long, and 0.798 in. in diameter by I in. long are some- times used. In the case of sheet metal, pieces are cut 1 in. wide and 10 in. to 14 in. long. (See Fig. 20 on page 325.) In testing samples the pieces are screwed into a bar held in the machine or gripped in the jaws of the ma- chine and power is then applied. The ultimate tensile strength is automatically recorded on the scale. The yield point and actual elastic limit are determined by the divider method or by means of the extensometer. The following set of readings shows the results of a test made on a specimen of heat-treated axle steel. Description Results Ultimate tensile strength 106,700 lb. per sq.in. Yield point 77,000 lb. per sq.in. Actual elastic limit 67,000 lb. per sq.in. Elongation in 2 in 21.5 per cent Reduction of area 61.1 per cent These results are further shown graphically in Fig.l4. The apparatus used for making compression tests consists of the 150,000-lb. testing machine already re- 120 110 100 1^0 to b 60 El. £ 10 c 0 60 o >;50 't7> £ 40 o ~ 30 1 20 z: 10 0 Thic knes 5 0.0 172" 60 Cycles Q2 0.4 Q6 08 1.0 12 14 1.6 \h 2.0 2.2 24 2.0 Core Loss , W(?itts per Pound FIG. 16 — GRAPH FOR CORE LOSS OF ELECTRIC SHEET STEEL WITH 60 CYCLES feri-ed to. The test specimen used is 2A in. long and 0.798 in. in diameter. (See Fig. 20 C.) It is placed between the plates or heads of the ma- chine and power is applied until the piece fails by either bending or breaking. In the case of soft metal, it is compressed 1 in. and maximum readings are then taken as the ultimate strength which is automatically recorded on the scale. The elastic limit is determined by means of the extensometer. The following results were obtained from tests on a piece of brass used for brushholder castings. This sample was compressed \ in. Description Results Ultimate compres.sion 29,340 lb. per sq.in. Elastic limit 9,400 lb. per sq.in. The physical testing machine of 5000 lb. capacity shown in Fig. 2 is used for making transverse tests. The test specimen for cast iron is made 12 in. long and 1 in. square in section. Other sizes may be used de- pending upon the available material to be tested. Stand- ard commutator bars of a tapered section are used for the test specimen of hard drawn copper bars. (See Fig. 20 R). The method of making a test consists of placing the test piece on supports 1 in. apart, with dial gage under the middle to indicate the deflection. The load is applied at the center of the bar until 0.001 in. permanent deflection is obtained. The stress is then figured from the following formula. Where S = S = Fiber stress in pounds per square inch. P = Load in pounds. L = Distance between supports in inches. B = Width of piece in inches. D — Thickness of piece in inches. The results obtained from a sample section of a com- mutator bar showed a fiber stress of 21,350 lb. neces- sary to produce 0.001 in. deflection. A Brinell hardness tester is shown in Fig. 3. The hardness test can be made on almost any section and shape of test specimen not too large to be placed in the jaws of the testing machine. In case of gears and pin- '0 20 40 60 80 100 HO 140 140 160 200 220 240 260 hoiq netiioition , Ampere.' Turns per Inch of Length FIG. 17 — MAGNETIZATION CURVE FOR CAST STEEL SAMPLE "Ions, the test is made on the finished product. When i.pecial test pieces are made up, they are I in. thick and taper from 15 in. to 2 in. in diameter, as per sample H, Fig. 20. How TO Obtain Brinell Hardness To carry out this test a 10-mm. hardened steel ball is pressed into the test specimen by a force of 500 or 3000 kg. (depending upon the metals being tested), by hy- draulic pressure. The spherical impression of indenta- tion indicates the hardness of the material. The Bri- nell number is obtained by dividing the applied load by the curved area of the impression, which is obtained by calculation from the diameter of the impression. Some results which were obtained from actual tests on metals are given below. Material Babbitt bearings .B.P. forged-steel pinions . Brinell Hardness Number 30 512 324 Electric Railway Journal Vol. 54, No. 7 Hoope's conductivity bridge with the necessary ac- .lessory apparatus shown in Fig. 5 is used in making con- ductivity tests. For this purpose samples of wire are cut 38 in. long. In testing conductivity of various alloys machined specimens are made 0.25 in. in diameter and 10 in. long. (See Fig. 20, N.) The test piece of wire is weighed in a sensitive bal- ance and its diameter is determined by calculations. It is then clamped in the bridge terminals and the sliding contacts are adjusted until an electric balance of volt- age is obtained which is indicated by the absence of de- flection on the galvanometer. Conductivity is read di- rectly from the scale on the bridge. Results of tests on copper wire used in making railway motor armature and field coils show average conductivity of 994 per cent. The apparatus used for making core loss tests on sam- ples of sheet steel consists of an Epstein core-loss test- ing machine with the necessary accessory apparatus as shown in Fig. 6. Sample pieces of sheet steel are cut 3 cm. (IfV in.) wide and 50 cm. (19|Jr in.) long from the test sheets and made up into four bundles approximately i in. thick (5 kg. or 11 lb.) and taped to- gether as shown in the accompany- ing Fig. 20 K. To make the test samples are placed in the four hollow coils which are set at right angles and the ends of the sam- ples are clamped together to get a complete mag- netic circuit through the iron. Voltage is then applied to the coils surrounding the samples to give standard in- duction in the iron, and the losses are meas- ured by a wattmeter in the circuit. The results of a core-loss test made on a sample of electric sheet steel, such as is used in railway motor armatures and field pole punchings, is shown graphically on page 323 in the illustration Fig. 16. A modified Burrough's permeameter with the neces- sary accessory apparatus as shown in Fig. 9 is used for making permeability tests. Sample pieces of sheet steel are cut 3 cm. (l-j-\ in.) wide and 50 cm. (19ii in.) long from the test sheets and made up into two bundles of approximately i in. thick (1 kg. or 2.2 lb.) and taped together, as shown in Fig. 20 P. The test samples are inserted in the two hollow coils which are placed side by side and both ends of the test pieces are joined together by iron yokes to com- plete the magnetic circuit. Adjustments are made and checked by means of a galvanometer, to get a uniform flux distribution of a known value around the test speci- men. Current readings are then taken by reading an ammeter connected in the circuit. ' Cone/udmiy E. Coef of Expansion 3. Transverse ■f. CompKSSion 5. Jiardness 6. Tension FIG. 18 — TEST SOMPLES OF ALLOY CASTINGS POURED FROJI SAME HEAT AS METAL USED The results of a permeability test made on a sample of cast steel used in railway motor frames are shown graphically in Fig. 17. A special drop testing machine built by the Westing- house Electric & Manufacturing Company is shown in Fig. 4. This machine is used for making drop tests of various materials. For the test illustrated a rough turned shaft is used as the test specimen. The shaft after being rough-turned is placed on the half-round supports near the ends, and a tup (heavy weight) which is released by a latch, strikes the shaft a blow half way between the supports. The tone of the sound of the impact is an indication of the condition (presence of absence of flaws and cracks) of the metal in the shaft. When the shaft is hit by the tup, a clear ringing sound indicates that the metal is "O.K.," while a dull, dead sound indicates a defective shaft. A special machine, built by the Westinghouse Elec- tric & Manufacturing Company, shown in Fig 8, is used for obtaining regular hammer blows of constant in- tensity. Test pieces are machined to 1 in. in diameter by 1 in. thick as shown in Fig. 20 M. To carry out a test the pieces are placed on the anvil of the machine and subjected to a series of regular hammer blows of constant foot-pounds stroke. FIG. 19 — TEST SPECIMENS REMOVED FROM SPECIAL ALLOY STEEL FOR SHAFTS The results of a series of tests made on babbitt metal used on railway motor bearings are shown graphically in Fig. 15. This test indicates that 460 deg. to 485 deg. Cent, is the best pouring temperature and that the metal should not be permitted at any time to be- come hotter than 490 deg. An Izod impact testing machine of 120 ft.-lb. capacity is shown in Fig. 7. It is used for the impact test. The best specimen is machined 10 mm. (0.393 in.) square and 75 mm. (2.95 in.) long with a deep groove 2 mm. (0.078 in.) on one side, 28 mm. (1.10 in;) from one end as shown in Fig. 20 I. The test piece is clamped between the steel jaws of the machine with the grooved side toward the hammer head on the pendulum, which is released by means of a latch and swings dovra, striking the test piece. The force of the blow or impact is obtained from the scale attached to the machine by subtracting the registered swing of pendulum when test piece is in place, from the initial free swing of the pendulum. Results of tests made on samples of material are as shown in the following table: Cold-rolled bar steel as roUed 2.5 ft"-lb Cold-rolled bar steel annealed 77 ft.-lb Hot-rolled open-hearth steel as rolled 58 ft.-lb August 16, 1919 Electric Railway Journal 325 The Upton-Lewis fatigue machine shown in Fig. 11 is used for fatigue tests of various materials. The test specimen of metal cut from the strap or bar, is about 8 in. long, as shown in Fig 20 F. The test piece is clamped between the jaws of the machine and power is applied. This bends the material forward and backward through a distance that can be regulated by adjusting the length of the stroke of the machine. Pieces are thus vibrated until they break or until a large number of vibrations have been withstood. The number of vibrations is recorded automatically by a cyclometer attached to the machine. The results of a test on a piece of treated, hot-rolled steel 0.196 in. thick and 1 in. wide are as follows: Duration of test Six hours, twcnty-fivp minutes Number of vibrations to break II 1,085 Length of throw 2 in. A draw test of material is made with the Erichsen- type draw-test machine as shown in Fig. 10. The test pieces of sheet steel are cut 3 in. square as shown in N. ConduciivityTest P. Permeability Test FIG. 20 — GROUP OF SPECIMENS USED FOR VARIOUS TESTS Fig. 20 D, and are placed in the machine and a blunt cone-shaped steel plunger is forced against the metal. Pressure is applied by means of the hand wheel, draw- ing a portion of the metal into the small cup-shaped projection until it shows signs of destruction. The depth of the cup is automatically registered on a scale attached to the machine. The results on a test piece of cold rolled sheet steel in. thick show a depression of 13 mm. (0.507 in.). Pulling Test for Wire A horizontal testing machine of 1000 lb. capacity, shown in Fig. 12 is used for determining the tensile strength of wire. To make this test a section of wire is cut at least 12 in. long as shown in Fig. 20 B. The test piece of wire is clamped in the jaws of the ma- chine and power is applied. The ultimate tensile strength is automatically recorded on a chart. The elastic limit is determined by observing the chart and noting the sharp bend in the curve. Results obtained from a test on 0.0808 in. soft cop- per wire used in railway motor armature coils are given below. Description Results Ultimate tensile strength 38,000 lb. per sq.in. Elastic limit 4,000 lb. per sq.in. Elongation in 10 in 32 per cent Special apparatus built by the Westinghouse Com- pany and shown in Fig. 13 is used for determining the coefficient of expansion. To make such a test, the test piece is machined to \ in. in diameter and 10 in. long, as shown in Fig. 20 E. The test piece is placed in a bath of circulating cold water, and readings of tempera- ture and length are taken. Live steam is then sub- stituted for the cold water and another set of readings of temperature and length is taken. From these read- ings, the coefficient of expansion, which is the expansion per degree of temperature for each inch of material, is calculated. Tests on a sample specimen of brass used in the manufacture of railway motor brushholders shown 0.0000189 in. expansion for each inch of material for an increase of one degree Centigrade in temperature. Keeping the High-Tension Line in Good Repair After the Line Has Been Well Built Careful Patrol- ing and Prompt Repair Will Conduce to Reliability in Operation By John M. Drabelle Mechanical and Electrical Engineer, Iowa Railway & Light Company, Cedar Rapids. Iowa. PROPER maintenance of high-tension lines is one of the most serious problems that confronts the power transmission companies to-day, that is to accomplish it economically and efficiently. The public and the public service commissions are continually increasing the rig- idity of the requirements for continuity of service. To render with this characteristic service requires both the highest technical skill and the closest co-operation among the men upon whose shoulders rests the responsibility of producing it. The maintenance problem on high-tension lines really begins with the original design of the line itself and its routing. A poorly-designed and poorly-built line will al- ways be a line expensive to maintain. Here as elsewhere we get only what we pay for, and if second and third- rate material enters into the construction, and if careless workmanship is tolerated, trouble is always sure to re- sult. The lower the voltage, generally speaking, the easier is the problem of maintenance, for at high voltages and extra high voltages many electrical effects manifest themselves that would not appear and need not be taken into account on the short, lower voltage line. The selec- tion of insulators is of prime importance. Insulators should be selected on the basis of competitive tests and upon operating information from other companies, rather than upon a price basis. A cheap insulator is a very ex- pensive piece of porcelain. For example, on one large 326 Electric Eailway Journal Vol. 54, No. 7 Iowa property the average cost of replacing an insulator is around $10.50, not including the loss of revenue while the line is out of service. The maintenance of the high-tension line begins prop- erly with the patroling, and the patrolmen should be se- lected with great care. A man who is quick to observe, quick to think, and careful in all details of his work, is the man who will make the best patrolman. All poles and structures should be numbered, in order that a definite reference may be given to the men who are to make repairs. Trees should be kept carefully trimmed back from the line to such, a distance that un- der the most severe wind conditions they cannot whip into the circuits, thus causing grounds and probable in- terruptions of service. On a wood pole line, the guys should all be kept pulled up tight, as the guying of the line is its real strength. With transmission lines that follow railway right-of-way, trouble may result in the summer and fall due to poles being burned down by rail- way sectionmen burning the right-of-way. It is at this time of the year that particular vigilance must be exer- cised by the patrolman. A small supply of maintenance material should be kept available at points not to exceed 7 to 10 miles apart. In- sulators, pins, transmission-line conductor, splicing sleeves, tie wire and guy material, consisting of messen- ger, anchors and three-pole clamps, should be available. Thus long trips back to the storeroom can be avoided and considerable time saved, especially if an insulator has been partially shot away by hunters, or if there has been a severe wind storm. Provision for Emergency Repair is Especially Important In times of severe electrical or sleet storms, the regu- lar line crews at different substations or generating points should keep in touch with the substation operator, or the system operator, as the case might be, so that they can be readily available in case of major trouble. It is well to set aside in each large storeroom maintained by the operating company a supply of emergency line ma- terial, the stock of which should not be altered or changed by anyone except the line foreman. If any ma- terial is used it should be promptly replaced by the store- keeper in order that the supply may be "100 per cent available" at all times. In this way delays can be elimi- nated due to waiting for material out of the general store. Each patrolman should be provided with some means of transportation. For the average conditions the Ford automobile is the most satisfactory of all. It will go in any kind of weather and over roads that are impas- sable to larger and heavier cars. The patrolman should always carry his belt, spurs and ordinary belt tools, and in addition, should be provided with a chain for short- circuiting and grounding the high-tension line. For transmission lines provided with telephone circuits, the Western Electric Code No. 1375-B telephone set provides an easy portable telephone, light in weight and quite ef- ficient in transmission. The only difficulty with this set is that rather small batteries are employed to operate it, and these must be renewed at regular intervals even though they are apparently in operating condition. The problem of maintaining the larger circuits con- structed upon steel towers becomes one of distance, sec- tionalizing switches and insulators. The suspension in- sulator problem has not as yet been solved by any of the manufacturers, and apparently none of the operating companies have as yet devised any form of testing that can be said to be most satisfactory and reliable. The "megger," the high-frequency oscillator, the induction coil with telephone receiver, and the "buzz stick" all have their several advocates, but as yet no one method appar- ently answeres all requirements. The suspension insula- tor apparently deteriorates in the storeroom as readily as on the line; but whatever method is employed for testing maintenance insulators before they are sent out from the storeroom, the tests should be of such nature as not to overstrain and ruin the insulators before they go upon the line. Malicious Mischief is a Fruitful Source of Trouble Outside of lightning disturbances, frequently surges set up by switching and damage by wind storms the most fruitful source of trouble comes from malicious nuisance. This takes the form of the shooting at insulators by hunters and the throwing of pieces of hay or telephone wire into the transmission line. This form of trouble can only be eliminated by proper laws on the statute books of every state, making the penalty severe enough so that there will be respect for the transmission line. If the penalty made is too severe it would be too difficult to secure conviction before any jury, as corporations never receive kindly consideration. Then, further, a suit- able reward must be offered for information leading to the arrest and conviction of the party or parties causing the damage.. Finally, a complete set of rules and instructions should be laid out by each company. The problems are so dif- ferent and diversified that no detailed statement of them can be made, but in general, they should consist of the following instructions: (a) For patroling and inspect- ing, (b) for the reporting of trouble, (c) for the distri- bution of material and scheduled points along the line, (d) for the protection of the men making the repairs, (e) for assembling of the line crews in case of emer- gency, (f ) for proper accounting for time and material. British Tramways Also Raise Fares IN A REPORT of the address of the chairman of the British Electric Traction Company given in the London EJectHcian for Aug. 2, a very good idea is given of the difficulties under which private traction undertakings are carried on in Great Britain at the present time. The chairman, Emile Garcke, pointed out that any possible economies would only inadequately compensate for the depreciation in the purchasing value of the penny when applied to the payment of wages and the purchase of materials. Since the war the costs of labor and mater- ials have on the average more than doubled, but it has not been possible to make a proportionate increase in the fares. He complained that under the statutory charges act of last year, private undertakings are not permitted to make such increase as to enable the same return to be obtained on capital as was obtainable be- fore the war ; yet local authorities may obtain power to increase fares to an extent sufficient to meet their in- terest and sinking fund charges. It is, therefore, only natural that the average return on the whole of the capital invested in tramway enterprises is only about Si per cent, and on the ordinary stock the return is only about II per cent. Such a position renders it impossible to attract fresh capital, yet there are many complaints at the present time that fares are too high. August 16, 1919 Electric Railway Journal 327 FRONT-ENTRANCE CENTER-EXIT INTERURBAN CAR OF MAHONING & SHENANGO RAILWAY LIGHT COMPANY Zone Fare Collection on Front-Entrance Center- Exit Cars On Interurban Line Between Youngstown and Warren, Ohio, Mahoning & Shenango Railway & Light Company Uses Plan Involving Two Types of Identification Checks 4 N IMPORTANT interurban line of the Mahoning /-\ & Shenango Railway & Light Company connects X JL Youngstown and Warren, 15 miles apart, passing through Girard and Niles. The line is divided into three overlapping 5-cent zones, as shown in an accom- panying diagram, the overlaps being so arranged as to include Girard and Niles, respectively. On this line the cars of the "Peter Witt," or front-entrance, center-exit type, are used, the distinguishing feature of which is that the passengers pay their fares as they pass the conductor. This functionary on the M. & S. cars is stationed opposite the center of the exit door, instead of to the forward side of it as is usual in this type of car. A Combination Fare-Collection Scheme Was Employed The system of zones on the Youngstown-Warren line was designed to permit passengers to ride between points in Youngstown west of the Civic Center and Girard, Girard and Niles, or Niles and Warren for 5 cents. The fare-collection plan was designed to per- mit quick loading at terminals, provide simplicity in identifying passengers as to boarding points, and utilize the Witt scheme of car layout to minimize board- ing time. A combination of "pay-leave" and "pay-on- passing-fare-box" collection was therefore devised, and on Feb. 1, 1919, was put into full operation with an equipment of Cleveland fare boxes. To accomplish the above purposes, first at the line ter- minals and in the terminal cities, all doors are opened and no attempt is made to collect fares. In fact the con- ductor covers the fare box to prevent the passengers from dropping fares into the box. No identification checks are given to the passengers in these districts. Second, passengers boarding in the second and third zones from either end of the line are handed identifica- tion slips by the motorman, a pink slip (No. 1) in the second zone or a blue slip (No. 2) in the third zone. Ingress is only by the front doors away from the terminals. Third, if a passenger who has boarded in the second or third zone desires to pass to the rear of the car he pays a fare of 5 cents or 10 cents, depending upon his boarding point and destination, surrendering the check given him by the motorman and receiving a white slip if he is to alight in the same zone as that in which he boarded or a yellow slip if he is to ride in two zones. Fourth, on alightening, passengers from the terminal cities, who have no slips, pay the fare corresponding to the alighting zone; those surrendering white slips in the second zone or yellow slips in the third zone pay nothing and those who surrender white slips in 328 Electric Railway Journal Vol. 54, No. 7 the third zone pay 5 cents extra (as they have over- ridden the zone for which they paid). Plan Has Considerable Flexibility There may thus be at any time in the front section of the car passengers without slips and those with motorman's slip No. 1 or No. 2. In the rear there may i<-~—: --- IBMiles u- 6Hiles - 5-| f<: -7 Miles - H ■ K --|-(iMiles-f 1 YOUNGSTOWN GIRARD ' ' NILE5 --5Cents-f-- ^ H- h- -^-5 Cents -+- -I ■—-5 Cents- DIAGRAM OF FARE ZONES, M. & S. RY. & LT. CO., yOUNGSTOWN-WARREN LINE be passengers with no slips or with conductor's white or yellow slips. There is, of course, some disadvan- tage in having passengers in the rear who have paid no fare but this is more than offset by the speedy terminal loading. The above is the whole story in condensed form. A couple of examples will serve to illu.strate the work- ing of the plan. A passenger board? in Warren and plans to ride to Cirard He enters the front end, receives no slip and sits down in the front of the car. A little later he finds it convenient to move to the rear, and passes the conductor without giving or receiving anything. Later he decides to go on to Youngstown. When he leaves he pays 15 cents. It is of no use for hin: to say that he boarded in the second or third zone or that he paid his fare as he passed the box, for if he had done so he would have had something tc show for it. Again, a passenger boards in Girard, gets a pink slip and passes tc the rear of the car. He tells the con- ductor that he is .joing to Nilos. pays 5 cents, surrenders his pink slip and gets a white one. Later he decides tc go on to Warren. When he- alights he surrenders his white slip and pays 5 cents additional. ' In the opinion of C. D. Smith, gen- eral superintendent of the company, the following ad- vantages result from the use of the light-weight interurban car of the Peter Witt type, with a fare- collection scheme involving the use of a fare box: (1) Traffic congestion at hea\^' loading points, such as at ISSUED FOR Indentification Purposes only Mahoning jShenango Railway S Light Co. identifica- tion CHECK l-SSIED BY MOTORMAN ISSUED FOR IDENTIFICATION Purposes only Mahoning & Shenango Railway & Light Co. SAMPLE IDENTIFICATION CHECK ISSUED BY CONDUCTOR the YoungstowTi terminal, is eliminated. (2) Rapid boarding movements along the line, entirely under the control of the motorman, are provided. This tends to eliminate accidents. (3) The auditing operations are simple. (4) The conductor has full control of the discharge of passengers, tending to reduce the dura- tion of the stop and to eliminate accidents. (5) Effi- cient fare collection, with minimizing of the danger of missing fares. (6) Plan is adaptable to use of two- car trains between Youngstown and Niles, which is contemplated. Iowa Association Will Hold Operat- ing Men's Mid-Year Meeting Special Committee Reports Its Plans to Intensify Interest in the Association and Attendance at Meetings JT WAS BRIEFLY announced in the report of the annual meeting of the Iowa Electric Railway Asso- ciation, on page 1271 of the June 28 issue of the Electric Railway Journal, that a committee had been appointed to draft a plan to increase attendance at, and interest in the meetings of the association. This committee met in Chicago on July 15 and after a dis- cussion of various plans to accomplish the desired purpose decided to hold a mid-year meeting of operating men of the territory at Davenport, Iowa, on Sept. 17 and 18 next. To create a greater interest in this meeting it is proposed to divide the representatives into four distinct classes, namely, those interested in way and structures, shops and equipment, transportation and power and distribution. On the morning of the first day one paper of interest to each of these sections will be de- livered and followed by discussion from previously assigned individuals. In the afternoon a visit will be m.ade by the various sections to the respective depart- ments of the Tri-City Railway Company. On the morning of the second day a final discussion of the previously presented papers together with a more detailed discussion of the inspection trips will take place. In the afternoon permanent committees will be appointed to represent each of the four sections, and these committees will immediately meet and later make recommendations for future work. In the eve- ning, after the work is all accomplished, a banquet will be held. In an effort to secure a large attendance at this mid-year meeting personal letters will be sent by the president of the association to all managers urging them to permit the attendance of their operating men. These letters will be supplemented by personal visits from members of the committee on increased interest. It was noted in the report of the last annual meet- ing of the Wisconsin Association, page 688, issue of this paper for April 5, that a similar committee had been appointed by that association. This committee together with the secretary of the association, has been invited to attend the mid-year meeting of the Iowa Association. Both associations are striving for the same result and it is believed that co-operation will be mutually beneficial. A complete program of the Iowa meeting will appear later. As a result of an accident on the lines of the Roman Tramway Company, Italy, on June 5, in which three persons were killed and many were injured, the prefect of the province of Rome has ordered an official inspec- tion of all the company's rolling stock by government engineers and representatives of the company's em- ployees. The cars and other equipment are largely obsolete in type. During the recent general strike in Naples the tramway employees were the only ones wha lemained at work. August 16, 1919 Electric Railway Journal 329 Federal Hearings Continue Secretary of War Newton D. Baker, Public Utility Commissioners and Others Conversant with Electric Railway Situation Show Why This Utility Needs Speedy Relief THE hearings before the Federal Electric Railways Commission on the many aspects of the electric railway situation was resumed on Monday morn- ing, Aug. 11, in the Interstate Commerce Building, Washington, with about fifty men in attendance. Monday Morning Session The first witness to be heard was Hon. Newton D, Baker, Secretary of War, who, because of his intimatf association with the working out and putting into effect of the Tayler plan in Cleveland, while he was city solicitor and Mayor, was invited to present to the commission some of the history of that situation. Mr. Baker dwelt at length upon the successive steps which were taken leading up to the adoption of the present franchise in Cleveland, endeavoring es- pecially to bring out the fact that the final arrange- ment was a popular one. The people understood the plan and were agreed that it was the proper solution of the problem, the whole theory behind the Cleve- land plan being worked up on the basis that the public should understand, and that machinery should be created so that its under- standing might be con- tinued and kept up to date. Every month a statement is printed in the Cleveland pa- pers showing the state of the interest fund, so that the people can watch this and know in advance that a change in fare will soon be warranted. Having this understanding, they con- sequently offer no remonstrance when an increase has been made. The Secretary laid great stress upon the absolute necessity of bringing about an understanding by the people of any such plan if it was to be successful and endure. Looking back upon the Tayler franchise, the Secre- tary said that it had two principal defects, both of which had been realized to a certain extent at the time the ordinance was drawn, but for which no satisfactory solution was then determined. The first was the absence of any stimulus to the management for efficient and economical operation. Instead of providing ^or a flat rate of return on the investment, he said there should have been some provision whereby the com.pany would have realized something over the 6 per cent al- lowed so long as the rate of fare remained at 3 cents. and that this rate of return should then have decreased as the fare increased. Questioned by one of the com- missioners as to what would be the effect of such times as the present when the costs of operation had risen so exceedingly high, despite the most careful manage- ment, and which would thus defeat the manner of award which Mr. Baker had suggested, the witness re- plied that these times were abnormal and that the situation would necessarily have to be taken care of through some such steps as had been actually resorted to in Cleveland, namely, that the company had asked for an increased rate of re- turn on the investment and this was being arbitrated. The second defect pointed out by the witness was that not sufficient al- lowance had been made for replacements. It was be- lieved that replacements should be made out of the maintenance fund, but ex- perience had shown that this did not provide a proper apportionment of the replacement to the capi- tal account. In endeavor- ing to pay the full replace- ment costs out of the main- tenance fund, the amount available for maintenance was so seriously depleted that arbitration had been resorted to in order to se- cure a sufficient main- tenance allowance. Questioned as to whether he thought it would be possible for the com- mission to recommend a general adoption of the service-at-cost plan such as is operating in Cleveland, the Secretary said that the street railway problem seemed to him to be a strictly local one. What would be medicine for one community would be poison for another. He did not favor municipal ownership. He said he believed the degree of development of a com- munity was measured by its capacity for co-operation with its utilities. This, he reiterated, was essentially a question of popular education. He believed that the Cleveland plan was the best street railway plan which had been worked out in the country, and believed this chiefly for the reason that it had been so thoroughly understood by the public. He cited as a proof of its excellence the fact that the stock of the company had had a practically uniform value for years despite all of the fluctuating conditions in the industry. Asked by the commission how it was that to-day the Cleveland railway was able to operate on a satisfactory The witnesses on Monday and the re- spective themes of their testimony were as follows : Newton D. Baker Secretary of War who discus.sed principally the history of the Cleve- land low fare agitation leading up to the Tayler ordinance. Lieut.-Col. Charles W. Kutz Engineer-Commissioner of the District of Columbia who urged the desirability of ownership of electric railway roadbed by the municipalities. Roger W. Babson utility Security Expert, Boston, Mass. who recommended removal of limitation of rail- way fare because competition is now a sufficient corrective. John P. Fox Transportation Engineer, New York City who advocated low fares for short hauls. 330 Electric Railway Journal Vol. 54, No. 7 basis with a 5-cent fare, while practically every other company in the country was facing bankruptcy at that rate of fare. Secretary Baker answered that the reason was that in Cleveland the capitalization had been re- duced to an absolutely sound basis, there being prac- tically no capitalization of franchise value in the present valuation, and also because Cleveland had grown very rapidly. Further, lines had been extended solely in the interest of service; in other words, there had been no building of lines for speculative purposes. No railway line had been used as a feeder to a real estate venture, a thing which has happened in many cities if not in Cleveland. He also remarked that the equipment used in Cleveland was of the most admirable type and he thought that undoubtedly the operating costs were lower in Cleveland than in most cities due to the com- paratively level topography of the city and the operat- ing economies which had been worked out. Other questions from the commissioners brought out Mr. Baker's opinion that a true valuation of a property was the first requisite in formulating any plan of agree- ment between the city and the company. In Cleveland this valuation had been made by the city. As to whether this was more, or less, desirable than a valuation by a state commission, the witness said that that was a matter that could not be generalized upon, but he thought the street railway gave such an intimate public service that the public would have more confidence in The results if the city itself made the appraisal. He said that some commissions would have the confidence of the people, while the results of others would be looked upon with skepticism, and still others would be so slow in making a report that they would lose the co-operation of the people. He said he had once made a calculation of how long it would take the Ohio commission to reach a decision on a case which he had presented to it and he had found that it would take 140 years. As to what the differences were between the Cleveland plan and municipal ownership, and what further advantages the public might derive from municipal ownership, the wit- ness thought that there were no substantial differences and that the public derived practically all of the advan- tages of municipal ownei'ship under the Tayler plan. It was pointed out, however, that the Cleveland plan has no provision for paying any deficit from operation out of taxation. Value of Centralized Responsibility After Secretary Baker had stated hi<3 opinion that local control of a street railway was far superior to state control because of the intimacy of the service to the people of the community, one of the commis- sioners called attention to the complications which arise where a single utility company is serving a number of separately incorporated communities, and asked if un- der those circumstances it might not be desirable to have a combination of local and state commission control, whereby a company could appeal to the state commission — a higher technical body — from a decision of a local commission. To this Mr. Baker replied that it was his observation that the responsibility for the management of a street railroad made a stronger and more virile people, and that to have the right of appeal to a higher commission would take away this responsibility and it was therefore undesirable. Questioned on the advisability or desirability of giv- ing labor representation in the management of a utility, the Secretary said that he could imagine that this might be a wise addition to the present Cleveland plan. Later, when asked if he would advise the commission to make any recommendation on that point, he said that he could comment only on the general principle, but he felt that the intelligent co-operation of the workers with the management and the public would bring about better results than the co-operation of any two of these with the third left out. He thought, however, that in this triangle, the vote of the public's representatives ought to be powerful enough to offset the votes of the other two. Questioned whether he, as a federal official interested in the welfare of the large industries, did not have some suggestion as to a general plan of relief which might be applied to the electric railway field, Mr. Baker re- plied that there was only one plan which might be permanently helpful, and that was one which cities could work out for themselves. Get the City Council and the board of directors of the railway company in the same room together, with the latter prepared to lay its cards on the table face up. This should be the first step in ascertaining the facts, to be followed by every other possible means of publicity to bring the people to realize that nothing was being withheld. He believed that any community in America would be willing to pay the cost of the transportation as soon as it was convinced that the situation as presented was the true one. Mr. Baker thought that the companies ought not to be required to pay paving taxes and he thought that the Federal Commission could wisely bring about a public awakening on this matter. He did not believe the people realized generally that this was handed out to the car rider and appeared as a part of the cost of the ride. In this connection, he also stated that the public should be educated to an understanding of the fact that unnecessary rehabilitation, extensions and replacements demanded by it simply resulted in a higher cost of service which the rider must ultimately pay. In connection with all of these items, the value of the referendum vote was referred to, and it was be- lieved by the witness to be not always necessary, and in fact not always possible legally, but was very de- sirable because of its educational and moral value. Secretary Baker expressed his belief in a zone plan of fare collection and pointed out that Tom Johnson's principal objection to the plan at the time the Tayler franchise was drawn was that, as he put it, "You would have to have a bookkeeper for each conductor." Mr. Baker did not see any reason why some such plan could not be worked out so that there would be a more nearly equitable basis of payment for the length of ride taken. He pointed out that while there might result, as a first effect of the installation of a zone plan, some tend- ency on the part of a great many people to move toward the center of the city and thereby increase the congestion slightly, that this would cause the second effect which would follow, namely, a lowering of the rents in the other sections, which would largely correct the first trend. He also pointed out that the experience of the European countries in connection with zone fares was not a reliable example to follow, since the habits of the two peoples are so very different. Asked if he favored making up operating deficits out of taxation, provided sufficient income were not obtainable to pay the operating expenses and fixed charges, the secretary replied negatively. He did noi believe in taxing the people generally to pay for service August 16, 1919 Electric Railway Journal 331 to those who ride. Asked if he would favor a general fare increase in the interim while a permanent settle- ment is being worked out, he said that he would if the company showed no returns whatever on its real value, but that he would not favor an increase if the company merely showed insufficient return on its apparent cap- italization. He said there were undoubtedly many lines being operated which were a great financial burden and which could better be done way with, giving as an example two lines fairly close together and of a com- petitive nature, one of which might be done away with to make the other one prosper and to remove the burden of the dual investment. The Secretary then emphasized the point that whether or not a temporary flat increase in fares should be granted must be determined by the people affected, for if the munici- pal or federal authorities were to install such an in- crease, it would only act to postpone the permanent settlement. Speaking of fares higher than 5 cents the Secretary was very doubtful about any increase in revenue to be derived from a fare higher than 5 cents. He thought that a great deal of the short-haul riding, which is the most profitable business (like the ride taken by the man who rides from his office to the bank) would be lost if the fare were 6 cents, regardless of how wealthy the man was. He said it was simply a matter of psychology, that people had been accustomed to thinking in terms of a nickel and when a dime must be broken they preferred to walk. If the fare becomes higher than 5 cents, there will be a strong tendency on the part of a great many people to move to such a locality of the city that they can avoid riding at the higher rate. Asked his opinion as to what was the most desirable term of a franchise, Mr. Baker replied that the indeterminate franchise with reservation of the right of the city to purchase was very satisfactory and much better than any fixed-term franchise. Upon the conclusion of the testimony of the Secretary of War, Charlton Ogburn, executive secretary of the Federal Commission, told the commission that there were a number of public service commissioners present who were desirous to be heard on pertinent limited phases of the question, but who desired to be excused from expressing opinion on matters which were now pending their decisions. The first of these the com- missioners called to the stand was Lieut.-Col. Charles W. Kutz, chairman of the District of Columbia public utilities commission. Competing Companies Make Relief Problem Difficult Colonel Kutz, in his direct testimony, addressed the commission on the rather involved situation which his commission is now endeavoring to solve in connection with the traction facilities of the national capital. The Secretary Baker Thinks Each Com- munity Must Solve Its Own Transportation Problem In his testimony on Monday, Hon. Newton D. Baker, Secretary of War, said in commenting on the general applicability of the Cleveland plan of conducting its railway business: The street railway problem is essentially a local problem. The fact is that medicine for one com- munity might be poison for another. It would be a very great mistake to go to public ownership or public control in a community that doesn't want it or understand .it. If the public takes over the street railways because it is mad at them, and then gets mad because it took them over, it has not been a suc- cess. The solution of the street railway problem is essentially a problem of education. difficulties here arise from the fact that there are two competing companies, one of which is in difficult straits, while the other is prospering. Both companies are carrying about equal numbers of pasengers but one of them, the Capital Traction Company, is doing this on about half the mileage maintained by the Washing- ton Railway & Electric Company. The latter company has a great deal of long suburban haul, and the most logical remedy has seemed to be a zone fare system, but this has met with very violent opposition from the public. Colonel Kutz pointed out in reply to a previous testi- mony indicating that the maintenance of paving along street car lines was more logically a charge against general taxation rather than the street car rid3rs, that this might involve a division of responsibility which would result in a great deal of friction. He said that if the company were responsible for the maintenance of the track foundations, which must also form the foundation for the pavement and in large measure be respon- sible for the condition of the pavement, that it would be extremely difficult to get the necessary co-operation between the city and the company in order properly to maintain the pavement. In view of this, he suggested that it would be better to let the city acquire title to the roadbed and lease its use to th" company. At this point Colonel Kutz' testimony was inter- rupted for the noon recess. He continued Monday afternoon with the following statements: Monday Afternoon Session Elaborating his ideas regarding the ownership of the electric railway roadbed by the municipality. Colonel Kutz stated that he favored the relief of the railway from unjust municipal taxes and in general thought that the zone system is a good thing. On account of local conditions, however, it would not be favored in Washington. In answer to a question he said that he could not instance any city in which the roadbed is owned by the municipality, but that to a limited extern the principle is illustrated in the case of the New- York subways. Colonel Kutz gave as two reasons for favoring the plan which he advocated the following: (1) Public ovsmership of the roadbed would simplify the paving question. Where responsibility for the paving is di- vided between city and company there is opportunity for constant friction. For example, a city might decide to pave or repave a street in which there existed elertric railway track with considerable remaining life In the interest of ultimate economy it might be best to relay the track, throwing away or scrapping ties, rails, etc. This would be a considerable loss to the railway, but if the city owned the roadbed there would be no injustice done if the track were replaced. (2) Such 332 Electric Railway Journal Vol. 54, No. 7 ownership would permit extensions to be made as re- quired in the interest of service without reference to the practicability of operating over these extensions at a profit. Colonel Kutz considered that this would not entail an undue charge upon the city, and the fact that the roadbed was being rented to the railway would give the city an opportunity to extend financial assist- ance to it in case it is desired to hold the fare down to a figure below that at which the railway can operate at a profit. The principle, however, should not be applied to the equipment, in Colonel Kutz' opinion. He did not believe that public operation would be desirable, hence favored the private ownership of rolling stock, power distribution system, etc. In answer to a question from Commissioner Sweet as to the possibility of securing the same result as he desired by existing means Colonel Kutz said that cities cannot exercise satisfactory control of their railways in regard to extensions, for they cannot order exten- sions which will not be compensatory. He said that he regards the roadbed of the railway as a special form of roadway, in fact it is the poor man's roadway. Just as the city builds boulevards for the automobile owner it might build car tracks for the man who cannot own an automobile. This he thought to be different from governmental paternalism, which he does not favor. It would permit improvement of service under conditions where a railway extension might not promise any in- crease in revenue. Public Does Not Realize the Seriousness OF the Situation Commissioner Sweet said at this point that Colonel Kutz' testimony emphasized the fact that there is great need for co-operation between the public and the rail- way. The needs of both the public and the utility must be recognized. To this the witness agreed, stating that the difficulty is to give the public a realization of the situation. He said that if this were understood the people would be willing to pay a fair price for the service. In this connection, however, he reiterated his belief that it is more economical for the city to own its own tracks rather than allow a rate of return on investment which is sufficient to attract capital, as the city can borrow the money more cheaply. This might not help in the present acute crisis but there is no reason why future track construction cannot be taken care of in this way. Existing track might be appraised and bought by means of bonds at a fair price. In response to a suggestion from Commissioner Sweet, Colonel Kutz agreed that immediate relief could be secured by amelioration of the present paving tax which throws this cost upon the poor man. Other ques- tions related to the proper line of demarcation "between public and private ownership under the plan outlined by Coloned Kutz. He said that in the case of a conduit road the city should own up to and including the con- tact bar, but not the feeders; nor should it own the overhead in the case of a trolley line. Doing away with divided responsibility, as suggested, would also simplify the accident problem as related to accidents caused by track or paving. The liability in this case would lie with the city. Finally, Colonel Kutz gave in more detail his ideas on relief of the railway from unjust taxation. Car riders ought not to be taxed indirectly, as for example in paying a share of the cost for traffic-officer service. The District commission, he said, opposes all free rail- way service on this ground." Following Colonel Kutz, Roger W. Babson, Boston, Mass., specialist on utility securities, discussed the financial situation of this industry. By way of intro- duction he said that there are three ways of conducting the electric railway business : (1) The present method of private ownership with public regulation, which has not been able to save the industry from the present catastrophe; (2) municipal ownership, or a service-at- cost plan with a guaranteed return supplied if necessarj' from the public treasury; (3) private operation, with relief from unjust taxation and permission to charge what the operators deem wise, but with equitable com- petition with motor buses. Mr. Babson Advocates a Fair Show for the Railways In the end Mr. Babson considered that both the rail- ways and the public would be better off if competitors in transportation service could work out their salva- tion on a competitive service basis, charging what they can for this service. The mode of transportation which survived in a given case would be the one best fitted for the particular service. If the railways had been obliged to struggle for existence on the basis of giving service, with permission to charge what they thought best, the business would be in better condition to-day. In Massachusetts trouble began when the State stepped in and began to "father" the business. He saw no rea- son why the service should not determine the fare to be charged. Take the case, he said, of the lines running from Brookline, one of the suburbs of Boston, into the city. These give better service than taxicabs could do and they m.ight therefore very properly be allowed to charge taxicab fares. Elaborating his idea as to the change in the need for regulation Mr. Babson said that when the electric rail- way had the monopoly of transportation service in its field, which it did a few years ago, regulation was necessary. As long, however, as there is more than one means for furnishing the same transportation the case is different. Railway difficulties began with the popu- larization of the automobile. How the matter stands to-day can be realized from the fact that there are now in Massachusetts more than 186,000 automobiles as compared with fewer than 5000 electric cars. The problem of the railways now, however, said Mr. Babson, is how to get out of the difficulties in which they find themselves. There is no doubt of the nature of these. The first requisite is that the hands of the railways shall not be tied as now. The railways should either sell out or be given a free rein to win out on a service basis. In many places they can do this; in some probably not. But in many cases relief from the paving burden is necessary. Mr. Babson dwelt at length on the case of the Boston Elevated Railway which, he thought, would have been charging a lower fare to-day if it had had the oppor- tunity to give good service and to charge a reasonable fare for it earlier. He believed this because under the present plan he sees little incentive to interest in the property, on the part either of stockholders or em- ployees. At a recent stockholders' meeting only three out of 3000 attended. Summing up his line of thought Mr. Babson said that the prosperity of the electric railway system is vital to a community, and any bargain entered into between August 16, 1919 Electric Railway Journal 333 the two should be profitable to both sides. It may be necessary in some cases to go to extreme measures to conserve the railway service, but before doing so the shackles should be removed from the railway so that it can have a fair chance. Commissioner Elmquist asked as to Mr. Babson's further views on the jitney problem, and the latter said that there are some places in which the bus affords the most economical and serviceable means of trans- portation. For example on more than 250 miles of track of the "Bay State" system this is true. Commis- sioner Sweet also asked as to the extent to which the jitney problem is general, and Mr. Babson said that it is very general. Jitney service, he thought, should be properly regulated to render competition with the electric railways a fair one, but artificial throttling of the jitney is not wise. In the end all forms of transportation will thrive best when they are on a co-operative basis, each giving the service that it is best fitted to give. The emphasis in all cases, he said, should be placed upon the service. As to the future of elec- tric railway transportation Mr. Babson expressed the conviction that in many communities it will survive and on a substantial foot- ing, especially in conjunc- tion with elevated and sub- way lines. He felt that, while the war had aggra- vated conditions, even if there had been no war the conditions would have been substantially the same, al- though, to be sure the war "broke the camel's back," it hastened the downfall of the railways. Even if the costs of labor and materials should come down the prob- lem would not be solved. In reply to another question Mr. Babson expressed his approval of the Cleveland plan of operation, with an addition giving more incentive to efficient manage- ment. He also agreed with Bentley W. Warren in the contention that the reason for the indifference noted in Boston is the guaranteed return regardless of eaimings, which does not obtain in Cleveland. He did not see why the Cleveland plan in its essentials should not work out well in other cities. He also agreed with Com.mis- sioner Sweet's suggestion that the abnormal conditions under which the railways are operating now have made this operation extremely difficult. Commissioner Gadsden asked Mr. Babson to sum- marize the situation regarding electric railway securi- ties. To this request the latter replied that during ten years, and mostly during the past five years or less, traction bonds have shrunk 25 per cent in value and traction stocks 75 per cent. Some ten years ago in Massachusetts, where great care is exercised in such matters, traction securities were approved as invest- The speakers who completed their testi- mony at the Tuesday sessions included the following : Carl H. Mote Secretary Indiana Public Service Commission He showed by the experience of the Indiana Commission that a spirit of co-operation between utilities and commission will go far in meeting adverse conditions. Richard T. Higgins Chairman Connecticut Public Utilities Commission His testimony consisted largely of an analysis of the electric railway situation in his state. F. F. Ingram Manufacturer, Detroit, Mich. He favored local municipal ownership of the street railway with a nominal fare supplemented by allowances from the public treasury. James H. Couzens Mayor of Detroit Mr. Couzens strongly urged municipal owner- ship and operation and explained why, in his opinion, it would be economical and pleasing to the public. ments for savings banks, thus indicating the esteem in which they were held at the time. Of late there have been many losses of trust funds and savings bank investments due to the shrinkage in value of these securities. Upon Commissioner Sweet and Mr. Warren pointing out that some of the plans suggested by Mr. Babson would require legislation and so could not be made effective at once, he said that as an immediate step he would urge the removal of fare limitations, although first in ultimate importance he placed relief from unjust burdens. As to the zone system he considered it a good money-making proposition for the railways, but he op- posed it on social and eco- nomic grounds. The last witness heard on Monday afternoon was John P. Fox, New York City, who has acted in an advisory capacity in con- nection with traction mat- ters for many years. He stated that he had visited Europe several times to study electric railway op- eration there. In Europe, although large fare in- creases have been made the railway situation is not as bad as in this country. He said that reports which have just reached this country show phenomenal increases in business and net income for the lines in Berlin. One reason for the better situation abroad he believed to be the lower fixed charges which he understood prevail there. In this country some rail- ways are suffering from the high "overhead," oth- ers from difficulty in intro- ducing operating economies. Referring to the fare question Mr. Fox said that increasing of fares has not proved a success, He thought that lower fares for short hauls would bring in business during the non-rush hours, and advocated a 5-cent fare as a normal charge with, say. a 3 cent fare for short hauls. As examples of special cases where low fares have brought large business on very short hauls, Mr. Fox cited the Williamsburgh Bridge line in New York City, on which 9,000,000 passengers per annum per mile of track are carried, at a fare of 5 cents for three single trips. He also gave some details of the experience of the railway lines in Shang- hai, China, where an enormous and profitable business is done at a very low rate of fare. In that city the present management took over the system at a time when it was very difficult to make ends meet, but by the application of merchandising methods has made the property very profitable. The point which Mr. Fox emphasized particularly was the importance of improving the "load factor," filling in the depressions in the load line. The high flat fare, he said, makes the load factor worse, largely cutting out the slack-hour traffic. 334 Electric Railway Journal Vol 54, No. 7 Tuesday Morning Session Carl H. Mote, secretary of the Indiana Public Service Commission, opened the testimony on Aug. 12 with a written statement regarding the electric railway situation in its jurisdiction, covering slightly less than 2500 miles of track. In this he stated that conditions in Indiana are not identical with those in some of the Eastern states because overhead charges are not excessive, the roads having mostly not been overcapitalized. Formerly the steam roads of the State operated under a limitation of 2 cents a mile, but the electric railways were decided to be utilities and hence were not limited to that rate. The intern rban fare was first raised to 24 cents and later to 2f cents, thus keeping a differential of i cent as compared with the present steam road rate. This was maintained to retain a fair share of business for the electric lines. Mr. Mote stated that the commission makes no rate increases without a tentative valuation, and suggests financial reorganization where such seems necessary to put a road on a substantial basis. In this way the com- mission has reduced fixed charges by $400,000 per annum, with corresponding reduction in outstanding securities. In making these financial readjustments bond and shareholders are asked to accept new securi- ties of lower face value. The purpose in so doing is to reduce the amount of securities to nearly the actual value of the properties. Other financial changes have been the removal of unreasonable sinking fund charges and stopping the payment of interest on sinking fund accumulations. By the means outlined Mr. Mote said that it has been possible to keep the Indiana companies solvent and to maintain fair standards of service. As for the Federal Electric Railways Commission, while the In- diana commission will co-operate in every way, there is little locally that a federal commission can do, as the State has the situation well in hand. The Indiana commission, he said, proceeds on the theory that it is an administrative body and that its work to be effec- tive must be done promptly. The endeavor is to act upon petitions within a month. Mr. Mote said that the commission does not feel called upon to protect securities that have no real value, and he felt that electric railways as a whole had been a disappointment to their promoters. Competition is very severe and the future of the business is far from promising. It is, however, the intention of the Indiana commission to increase fares as needed up to the point where a further increase will not produce a greater income. In the Indiana cities the fare is now on a 5-cent basis and the commission hesitates to go higher at present. The commission has investigated operating conditions on the local properties and found that some could be greatly improved. The companies have suffered financially from claims growing out of accidents, some of which might have been avoided. In reply to a question by Commissioner Elmquist, Mr. Mote said that the commission has found it de- sirable and in the public interest to inspect the proper- ties with a view to suggesting improvements, and instanced a recent survey of the power situation on the Union Traction system, where the power supply was found to be inadequate. On other roads improvements in the signals have been found necessary in the same way. The companies have cheerfully co-operated in making the recommended improvemients. The situation in Indiana as regards labor conditions appears to be fairly satisfactory, as there are no strikes and no indications that the workers are dissatisfied. As to relief for the railways the commission would approve the waiving of paving and other municipal requirements and reduction in taxes, but has taken no steps in this direction as yet. It was felt, however, that the public would resent the relieving of the com- panies from municipal requirements unless absolutely necessary. Mr. Mote then went into the matter of franchises and explained that under the law of 1913 the utilities had the right to surrender their old franchises, re- ceiving in return new indeterminate franchises, and leaving the details in the hands of the commission. Provision was also made for emergency relief for the railways. A number of franchises have been sur- rendered under this law. In administering its work the commission is endeavoring to follow the service- at-cost principle, basing the cost upon a fair tentative valuation. The situation has been complicated some- what by a recent law which provides that where a company has surrendered its franchise any free service or service at special rates prescribed in the original franchise shall hold. In reply to a question by Mr. Warren, Mr. Mote said that this refers to special serv- ice for the municipality or its employees. Concluding his formal testimony Mr. Mote said that while the Indiana situation may get beyond the control of the commission in the sense that it cannot find a way to increase the incomes of the companies, he felt that the Indiana companies would be among the last to "go upon the rocks." Some Informal Comment by Mr. Mote Mr. Gadsden asked Mr. Mote if on the whole increas- ing the rate of fare in Indiana had produced a bene- ficial effect, to which the latter replied in the aflfirmative. Asked by Mr. Elmquist as to over-capitalization in that State he estimated this at from 15 to 20 per cent. Also he said that the present 5-cent fare represents an actual increase in fare from the fare previously in vogue. The commissioners endeavored to bring out the reasons for the better operating conditions in Indiana than in some other places, and Mr. Mote thought that these were partly due to the reasonable prices for fuel and labor. There is little complication due to the extension of city systems into other communities, as exists in some states. Mr. Mote stated his belief that the commission form of control is best, but favored municipal control in some respects, such as speed of operation, stops, extensions, etc. Cities and villages have such control in Indiana. He finds that there is little resulting conflict between the State and municipal authority. Asked as to the length of time needed for a tentative valuation such as those mentioned, he stated that ordinarily two weeks would be sufficient after the filing of an inventory, although in one case three months had been required. Commissioners Sweet and Gadsden asked as to Mr. Mote's ideas on the zone system, to which he replied that the commission had denied petitions for the in- stallation of this plan in Indiana in the belief that it would cause congestion. He believed, however, that it is inevitable in many cities. In addition, the commis- sion thought that the zone plan would be unfair to residents who had invested in suburban homes on the supposition that the flat fare would be permanent. August 16, 1919 Electkic Railway Journal 335 However, in the event that the zone plan offered the only solution to the electric railway problem as a basis of self-support, the commission in refusing to permit its use would undoubtedly make other provision for the railway income. At this point Counselor Warren introduced some data as to the effects of wage increases as bearing upon the zone system, and Mr. Mote said that the application of the same costs to the Indianapolis situation might make a zone system necessary. The data related to the census figures which showed that in 1917, with a maximum labor rate of 31* cents per hour, the labor cost per passenger was 2.36 cents, whereas at the 60-cent rate which now is paid in some cities the cost would have been 4i cents. In 1918 with a 34-cent maximum the cost was 2.82 cents per passenger, while at the 60-cent rate it vv^ould have been 4.98 cents. Thess amounts check w^ith the ex- perience on the Boston Elevated Railway on which in December, 1917, the rate was 2.20 cents per passen- ger and in May, 1919, 4.39 cents. In concluding his informal testimony Mr. Mote ex- plained what the com- mission has done to enlist and hold the co-operation of the public. The public has been told the full circumstances in all cases and the reasons for the decisions reached. As a result the public has confidence in the commission. Asked as to the trans- fer situation he said that transfers are not charged for, fnd the public did not take kindly to the plan of collecting and rebating for transfers. Again he said that the commission has no jurisdiction over jitneys, that the municipalities are waking up to the necessity for controlling the jitney situation, and that he did not believe the motor bus to be a possible substitute for the electric railway. Regulating rates and improv- ing service are equally important functions of the com- missions, and he looked forward to the time when it will be practicable to insist upon higher service standards. Connecticut Commission Heard From Richard T. Higgins, chairman of the Connecticut Public Utilities Commission, followed Mr. Mote. He read a brief statistical statement of the electric lines under the jurisdiction of his commission. There are ten operating companies in the State, of which two operate seven-eighths of the 828.7 miles of single track. The fare charged by the Connecticut Company is 6 cents for a single zone, while the Shore Line charges 5 cents in New London and Norwich (being held to this amount by State charter), and 2i cents per mile outside of the cities. Mr. Higgins told of the report of the special com- mittee of the State Legislature presented in April, 1919, recommending speedy relief for the railways, but Mayor James H. Couzens Wants Municipal Ownership In his testimony on Tuesday, Mayor Couzens said: While the main burden of paying for street- car service should be placed on the street-car rider, he did not believe that it all should rest there, but that some of it should be transferred to the shoulders of the manufacturer, the office building owner and others who should help bear the burden of getting the worker to his job. He said municipal ownership would produce this dis- tribution of the burden. He said he believed in putting the responsibility for public service of this kind on public and not on private officials, and that just as cities control and operate their water supplies, their systems of education, their collection of garbage and matters of health, they should have full control of their transportation systems, which he declared are just as essentially a municipal concern. in vain. He said also that the railways serve so many municipalities and the lines are so interconnected that it would be very difficult to administer the requirements of the railways by means of municipal ownership or control. In the early days many lines were extended outside the city limits and these now cannot possibly earn their expenses. Furthermore, the unregulated jitney competition in Connecticut is a very serious mat- ter. On the general situation Mr. Higgins said that the seriousness of the railway difficulty is now everywhere conceded. The future looks dark unless the states and cities will aid by increasing fares, reducing taxes, re- ducing municipal require- ments, and exerting proper control over competing transportation agencies. He thought that municipal ownership and operation should be avoided. In re- gard to relief from taxes he thought that there is as good reason for relieving the railways as privately endowed educational insti- tutions. It is very impor- tant that commissions should render their de- cisions promptly and that cordial relations between utilities and the public should be fostered. For some reason the nickel seems to be the favorite rate of fare, and it would be better if possible to re- tain and give a shorter ride for this sum. Mr. Higgins believed that electric railways under the conditions which he outlined could be self-sup- porting. The present emergency will not be taken care of, however, hy the service-at-cost plan, for if rates were set to give a fair return on investment without other m.eans of relief, such fare would be prohibitive with unlimited and unregulated competition. While the future of the auto bus cannot be predicted, it is true at present that the electric railways are essential. They should, there- fore, be protected during the period of transition. If the bus is the coming means of transportation, railway franchises should be amended so that the companies can go into this business and so conserve the invest- ment which has been made in them. In Connecticut, Mr. Higgins reminded the commis- sion, the companies have the right to set their rates, subject to revision by public appeal on petition, except that the companies cannot change a commission-made rate. All rates now in effect are company-made rates. Asked by Commissioner Elmquist for more detail as to the procedure in valuations, Mr. Higgins said that the properties had not been appraised in detail, but a tentative valuation of the Connecticut Company's prop- erty showed property in excess of outstanding obliga- tions. He said also that one small road had gone to a receivership without raising the fare above 5 cents for the reason that it did not believe the community sentiment would permit the increase. Questioned fur- ther as to the jurisdiction of the commission, he said that it controls service but not the issuing of securi- 336 Electric Railway Journal Vol. 54, No. 7 ties, although he thought it should do so. There is some sentiment in favor of giving the commission this power. As to applying the Cleveland plan in Con- necticut Mr. Higgins saw some difficulty in this because the railway lines run through so many communities. Thus it would be hard to allocate expenses among them. Concluding his testimony Mr. Higgins said that the public in Connecticut appears to be satisfied with the commission regulation as a whole, although one city seems to favor taking over the local lines itself. After analyzing briefly the labor and other local conditions, he stated that while it might be practicable to raise the fare to 7 cents and still produce more income, this would be accompanied by increasing competition. The jitney competition is still on the increase, although a law requiring jitney operators to be bonded will go into effect in a few months and may change the situation. At the same time riding on the railways is on the increase. The commission has given some attention to possible economies, and feels especially the need for some plan for insuring that the companies shall get all of the fares to which they are entitled. The one-man car is promising, he said. The public likes it and it produces substantial savings. Tn response to a sugges- tion from Mr. Warren, he said that the Connecticut Company, for example, has endeavored to introduce operating economies, and he considers that the person- nel of the local utilities compares favorably with that of similar companies elsewhere. Moreover, very cordial relations obtain between the commission and the utili- ties. Asked by Commissioner Sweet as to the attitude of the public toward the railways, Mr. Higgins said that public sentiment is improving. The people seem to be coming to a realization of their dependence upon transportation facilities. Replying to a question by Commissioner Elmquist he said that relief from tax burdens should be a temporary expedient. The com.mis- sion has no power to grant such relief. It must come from the Legislature, which in Connecticut grants all franchises. At this point Mr. Mote was recalled to the stand on request of Counsellor Warren, who desired to ask as to the experience in Indiana with the one-man car. Mr. Mote said that the results there have been very satisfactory, also that the pay-as-you-enter car had helped greatly in preventing loss of fares. The increase in fares previously referred to, combined with a large use of cars of this type, had produced a more than proportional increase in receipts. Mr. Ogburn then re- ported that there had been expressed a desire to have spread on the record a minute regarding the decision of the New Jersey Board of Public Utility Commis- sioners to permit the Public Service Railway to in- augurate a zone system in which the initial fare will be 3 cents, and 2 cents a zone thereafter. This action has been taken since Dr. Thomas Conway, Jr., had testi- fied before this commission. The plan for collecting fares for the present is of interest. When the pas- senger boards the car, which he will do at the front, the motorman will hand him a slip identifying him as to the boarding the zone, and he will pay the conductor the appropriate fare on leaving the car at the rear. Detroit Situation Explained by Citizen F. F. Ingram, a business man and manufacturer of Detroit, Mich., appeared before the commission to give the point of view of the general citizen toward the rail- way problem. He had held a number of positions quali- fying him for this purpose, including membership in the State constitutional convention v/hich provided for m.unicipal ownership of utilities for Detroit, as well as home rule. These changes were favored by him. Mr. Ingram questioned the necessity for electric rail- v.'ays in Detroit and said that during the recent strike there was a demonstration of the possibility of getting along without them. By the provision of free bus service by employers the workers were able to get to work without great difficulty. In reply to a question by Commissioner Elmquist as to the effect of the good weather which prevailed and the fact that the bus service was free, Mr. Ingram said that undoubtedly these things were factors in producing the unexpected result. Other factors were the presence in Detroit of the Ford factory and par- ticularly the statement by Mr. Sorensen, of the Ford Company, that gasoline-propelled vehicles could supplant the street car, which prejudiced the people against the railway. He said that he could not explain the senti- ment of the people of Detroit on the traction matter. Commissioner Beall asked if the low fares which De- troit had enjoyed were not made possible by taking profit from the company's interurban lines, and Mr. Ingram said that some citizen considered that they were, although others believed the contrary. The com- missioner pointed out that the facts were available though the company's reports. Mr. Ingram also said that the use of the city streets by the company's freight cars was objected to, but he admitted also that it would be a great deprivation to the city if the freight service were discontinued. Tuesday Afternoon Session Resuming his testimony after the noon recess, Mr. Ingram stated that his suggestion for a solution of the situation in Detroit was to charge a nominal fare of 3 or 4 cents with free transfer, without making any pretense of covering expenses. The deficit would be made up from taxation levied against the land which appreciated in value due to the presence of the railway lines. He could see no reason why the property holder who had thus materially benefited from the street rail- way should not share some of the burden with the car rider. Questioned if. this might not involve a deficit which would be a very heavy burden and thereby prove very unpopular with the voters, he replied that he did not think it would. He cited the plan of assessing the cost of irrigation in California against the property affected as analogous, and said that there had been no objection to this plan out there. He admitted, how- ever, that he did not know how the property owners of Detroit would look upon his plan. Counsellor Warren questioned the witness as to whether there would not be strenuous objection to a tax for the purpose of keeping up the street railways if they were looked upon by the people as unnecessary, an earlier statement to this effect having been made by Mr. Ingram. As far as the working classes were concerned Mr. Ingram did not think that there would be objection, but he did not know how other classes v.'0uld feel in regard to the matter. Mr. Warren also questioned about the relative congestion upon the streets during the recent strike while the street cars were not operating as compared with normal condi- tions, wondering if the congestion might not overcome the advantage of the automobile transportation if street cars were done away with. The witness said that in August 16, 1919 Electric Railway Journal 337 the downtown section the congestion had been less than normal because the jitneys turned back short of this section in order to avoid the congestion and make better time. In the outer districts of the city, how- ever, the congestion had been noticeably increased, but he did not believe that this would work against the rubber-tired vehicle because it was so much more mobile than the street car and could make use of adjacent parallel streets when too much traffic was concentrated along any one street. Concluding, Mr. Ingram reiterated that he believed the people of Detroit wanted municipal ownership and he did not see how it was going to be prevented from ultimately being consummated. The principal difficulty seemed to be with the manner of bringing it about. At this point Mr. Ogburn read into the record a letter by Ole Hanson, Mayor of Seattle, Wash., en- deavoring to give the circumstances leading up to the purchase of the street railway system in his city and to show the results which have been obtained during three months of municipal operation. This letter con- tains tables and will be published next week. Detroit Mayor Unalterably for M. O. Mayor James H. Couzens, of Detroit, former general .manager of the Ford Motor Company, followed Mr. Ingram, appearing at the invitation of the commission, and began his testimony by a statement that he was unalterably in favor of municipal ownership of the street railways because this was purely a social problem. As proof that it is a social problem he cited the great l)ressure which had been brought to bear upon the ad- ministration at the time of the local strike in Detroit recently by merchants and manufacturers who have no occasion personally to use the street cars. These busi- ness men wanted to have the strike settled in any man- ner which would bring about a resumption of service and enable the people to get to their work and to the stores. He said that unless the street car question were speedily solved in a manner satisfactory to the people the em- ployer would be obliged to provide transportation for his employees as a permanent proposition. Mr. Couzens then pointed out some of the difficulties of solving any problem which must be put up to a referendum vote. In Detroit, the people voted down by very large majorities two propositions, to which the Detroit United Railway had agreed in advance, which were so favorable to the interests of the public that the Mayor said they would have carried the company into bankruptcy. Then the city voted five to one for the general principle of municipal ownership and oper- ation in contrast to private ownership and operation of the street railways, and followed this action by rejecting a proposition to purchase the city lines upon a valuation to be made by the six circuit judges, and again voted down a proposition which would have made municipal ownership possible based on a value agreed to in ad- vance. In trying to explain these various contradictory decisions of the people Mayor Couzens said that it was his opinion tliat they wanted municipal ownership but did not want to be loaded up with the assets of the old company now on the streets. They also apparently had serious misgivings of the expediency of the steps which were contemplated to bring about municipal ownership and perhaps even distrust of the public offi- cials. Questioned by the commissioners as to what solution there was for the Detroit situation, the Mayor replied that he knew of only two solutions, both of which in- volved many difficulties. The first was to proceed to secure the property by condemnation, provision for which had been made by the last State Legislature, but this would require a three-fifths vote of the people and he doubted that it would succeed. The second means was for the city to order the company off the streets on all those lines on which the franchises had expired, and for the city then to proceed to install and operate a system of its own. Under such an action the tracks of the company would have only junk value and the city might then be able to purchase them at very much less than their capital value. Asked if this would not be confiscation he replied that he did not think it would for the company had accepted the franchise with a fixed-term provision and it should therefore have set aside a sinking fund to amortize that property in the life of the franchise. Further questioning brought out that he believed the company had been earning enough to provide for such amortiza- tion had it seen fit. One of the difficulties of carrying out this second plan of securing municipal ownership and operation is that it would take several years to com- plete the plan, during which time there would be com- petition by the remaining privately-owned lines. It was brought out by Counsellor Warren that the franchises have expired on about three-fourths of the lines in Detroit, so that these are now operating at the caprice and will of the people. Later when questioned by Counsellor Warren as to whether he meant that the city might force the com- pany to sell its tracks at their scrap value by ordering them off the street, the Mayor explained that he did not mean to do that, but that since such an order would reduce the value of the track to the company to its scrap value, the city and the company could then come to an agreement upon a price somewhere between the capital and the scrap value as a basis of purchase. Mayor Couzens was of the opinion in connection with municipal ownership that the car rider should pay the cost of the ride up to a certain point, which he said probably was a nickel, beyond which any deficit in oper- ating expenses should be made up from taxation of some kind. Perhaps this would take the form sug- gested by Mr. Ingram, of a tax upon the appreciated land value, or possibly it should fall upon the merchant and the manufacturer who benefit through the trans- portation of their customers and employees. As analogies, he cited the health and sanitation service of the city and public playgrounds, to which all persons contribute support although only part of them benefit directly. The street railway service is so intimately associated with the social life of a community that it seemed to him the community should provide this service for itself. While he was not yet ready to ad- vocate free transportation, he did believe that the cost to the rider should not be beyond that figure which would make the utility of maximum, service. As soon as the cost rose to the point that it began to drive away much patronage then the excess should be taken up through taxation. In answer to questions by Commissioner Elmquist the Mayor said he was distinctly opposed to the pay- ment of any street railway deficit out of taxes so long as the service was given by a private corporation. He 338 Electric Railway Journal Vol. 54, No. 7 was opposed to a charge for transfers, believing that the necessity for changing cars was an inconvenience to the passenger who should not be penalized for having to use two lines to get home. As a temporary relief, pending municipal ownership, he thought that taxes upon the street railway might be abolished if it were certain beforehand that the people understood that these would be returned to them in the form of lower fares or better service. He did not think favorably of the service-at-cost franchise, because the incentive to efficient and economical management was either lack- ing, or if a reward were somehow incorporated then the incentive was realized by curtailing the service and cutting expenses unduly to increase the reward. Asked if municipal operation would be as efficient and economical as private operation, the Mayor said that it would be so, absolutely. His basis for this conten- tion was the manner in which the water system of the city had been managed. He could see no danger in the large number of employees engaged in the railway service becoming municipal workers, since they repre- sented such a very small proportion of the total popu- lation, and also because the administration was likely to make as many enemies as friends among the em- ployees. He said that municipal ownership was not analogous to the federal operation of the telephone and telegraph lines and the railroads, tor these had been administered at long range from Washington, whereas the chief executive of a city would be in con- stant contact with the service being rendered by the railway department. Many of the aims of the federal authorities were lost through their lack of intimate contact with the service they were ultimately con- trolling. Another advantage of municipal ownership which Mayor Couzens emphasized was that the city would be able to secure money at about 44 per cent, whereas it would cost a private corporation about 7 per cent. Even granting a lesser efficiency through municipal operation, there was still a margin of 2^ per cent in the cost of financing which would certainly not be consumed from this cause. Pressed by Commissioner Beall on the point that the cost of money to a city would rise as its bonded indebtedness increased, the Mayor replied that even if the cost of the street car service were greater under municipal operation, it ought nevertheless to be brought about so that the eternal agitation might be stopped and the people be able to specify and get what they wanted in the way of service. Wednesday's Sessions W. C. Bliss, chairman, Rhode Island Public Service Commission, began his testimony before the commis- sion near the close of the Tuesday afternoon sitting and continued Wednesday forenoon. He filed as a part of his evidence, the report of the special commission appointed by the Governor, consisting of himself, Zenas W. Bliss, chairman of the State tax commission, and George W. Newhall, chairman of the State bank com- mission. This commission was charged with the duty of investigating the conditions of the Rhode Island Com- pany and recommending remedies. It presented its findings to the legislature in March, 1918. The contents of this report were frequently referred to and quoted by the witness who began his direct statement by re- viewing tlie circumstances of the last few years, lead- ing up to the present condition of the Rhode Island Company which operates the principal electric railway system of the State. He pointed out how the Rhode Island commission had encouraged the settlement of as many of the util- ity problems as possible with the local authorities, ad- vising companies to go to the city first, recognizing the merit of the home-rule contention though the law gave the commission jurisdiction. This had resulted in much loss antagonism on the part of the local com- munities. However, Mr. Bliss stated that there were difficulties in the endeavor to combine state and munic- ipal control, such as the conflicting ordinances of neigh- boring towns served by the same company, the power of a city to route cars in a way detrimental to the ser- vice of suburban localities, etc. In such cases as that of the Rhode Island Company which operates in twenty- six municipalities, there were many problems arising which must be solved from the point of view of the welfare of all of them and not to meet the selfish in- terests of any one of them. Such problems obviously required State handling. He believed that the State commission should always have the power of revision and over-jurisdiction of local franchises or permits. Mr. Bliss explained the manner in which it had been planned to secure for the Rhode Island Company the .$1,000,000 deficit which it faced as the result of a War Labor Board award. Previously, fares had been increased both on the flat-fare plan and then by several zone-plan rates and it had been found that it would be impossible to derive the whole deficit from fare in- creases. So the plan drawn up but which could not be carried out because of the failure of the Legislature to supply the enabline: acts, was to provide a fare increase which would net $300,000, to abolish exclusive franchise taxes which would save $150,000, to abolish paving taxes thereby saving $90,000, to introduce skip stops and other economies from which it was expected a $200,000 saving would be realized, and finally to secure from direct taxation $240,000, making a total of $980,- 000. Mr. Bliss said that the street car service deficit was entirely a matter between the rider and taxpayer, for the latter has an immediate interest in the trolley sys- tem represented by the value of his property. Business interests are likewise vitally interested in a car service costing little enough so that it will encourage and not discourage riding. Wages as well as Rates Must Be Regulated Lacking the power to put any part of the burden of the street car service on anyone but the rider, the only recourse left is to increase the fares. Mr. Bliss ex- pressed the opinion that it was utterly impossible to cope with the problem in this way, that liberal increases had been granted in Rhode Island and to increase fur- ther was simply suicidal, and there was nothing of consequence to be hoped for from more efficient man- agement for the property had been very ably operated. He said the problem simply cannot be solved as long as there is no restriction on wages. It can never be solved until wages as well as rates are regulated. He thought every company should have the privilege of bidding in the open market for labor and secure it as cheaply as possible. It is now a matter purely at the mercy of the unions. The public is entitled to the transporta- tion service with a rate of wage that is reasonable and it should be free to attract labor into its intimate serv- August 16, 1919 Electric Railway Journal 339 ices on that basis, allowing the laws of supply and demand and conditions of work to determine what wage had to be paid. Results of Fare Increases and Zoning The installation of the first zone plan in Rhode Island, comprising a 5-cent central zone at the traffic center of each municipality and 2-cent zones outside of that, the witness testified had resulted in a revenue increase of $505,000 as compared to an estimated increase of $540,- 000. The 5-7-9-cent fare had held the traffic and ap- parently had resulted in no harmful effects. When the central 5-cent zone was shortened and the outer zone increments increased to 5 cents, instead of producing the estimated revenue increase of $2,162,000, it had pro- duced $1,250,000, falling short $912,000. There was a distinct loss of travel in the outer zones. A 1-cent charge for transfers had produced $150,000 a year in- crease, estimated to produce $172,000, and the general use of transfers was reduced 15 per cent. This charge was received without complaint, Mr. Bliss thought, be- cause the fare for the central zone had been retained at 5 cents. On the line between Providence and Pawtucket, two cities close together, the effect of the 5-7-9-cent fare has been greatly to stimulate the business of the local merchants in Pawtucket and correspondingly to de- crease that of the Providence merchants. Judging from this, Mr. Bliss thought that merchants of the big centers could very well aflford to pay taxes to help sup- port the railway, and even further to subsidize them in order to maintain low-fare frequent service. A commis- sioner suggested that this business of the merchants from out of town had been done at the expense of the trolley company during the last few years, or that this represents the contribution of the utility to the aid of the social problem. Questioned by Commissioner Meeker whether the people would not soon realize that it would pay them to trade with the larger merchant even with the high carfare involved, the witness thought that the fare increase was very plain while the savings from the larger merchant might not be so readily appreciated by the customer. Asked if it were not possible to educate the public that even with a fare increase, the street car was still the most economical transportation available and it should not be influenced to walk by the slight increase, Mr. Bliss said he had always believed in the fairness of the public. But when it is impossible to get the essential facts clearly in the mind of the business men and professional men, he wondered how it could be ex- pected that the public in general might be made to un- derstand. He said this cannot be accomplished until the press and the public officials are willing to come out and truthfully and clearly state the problem and lead the people. Fundamental Causes of Critical Condition Mr. Bliss then turned his direct testimony to a brief discussion of the causes fundamentally responsible for the plight of the electric railways. The first of these was the enormous increase in the cost of labor and ma- terials. The cost of the latter, he believed, could be satisfactorily coped with by the companies. But he knew of no way to meet the labor costs until the people shall have risen up and educated their legislators to the necessity of providing a tribunal with power to decide what is a fair wage and to punish strikers by law. With the present disorderly demands of labor and the absence of governmental agencies to deal with it, he could see no possible relief. He also pointed out that the street railway was not altogether necessary, since during the eighteen-day strike in Providence, it was possible to operate factories and carry on business in nearly the normal way. The second cause related by the witness was the ex- cessive franchise taxes and paving obligations. These should be removed by legislation the first thing, he thought, and this would go a long ways toward meeting the emergency. The third cause cited was the com- petition of jitneys and private automobiles. He be- lieved the jitney supplied a superior service in many cases and that therefore, it could not be abolished, but that it should be put under strict regulation and on a basis comparable with the street cars. Under this regu- lation, it might survive but it would be a less serious competitor. The fourth cause assigned for the difficulty of the railways was the tremendous increase of federal taxes upon the utilities. From this burden they should be relieved, for the welfare of the country was dependent, he said, on transportation and the free movement of the people. Federal Intervention Imposes Heavy Burden The chief reason for the situation the witness stated to be the awards of War Labor Board. It was this cause which, he said, had come very near making the sitting of the Federal Commission a coroners' inquest rather than a consultation of doctors. The War Labor Board had added $1,250,000 to the annual operating costs of the Rhode Island Company, which the latter had not the money to pay, "with the beautiful words of explanation" that the Board was not concerned with the financial condition of companies, but that the award represented a living wage and it must be secured some- how. This decision had apparently been passed out without regard to its effect on the railways and it also put the public service commissioners in a very difficult position for they knew the effects of the award and their duty in behalf of the company and the ul- timate benefit of the public but were powerless to act. The conclusion of Mr. Bliss' testimony, together with that of Zenas W. Bliss, receiver The Rhode Island Com- pany; Mayor Chas. B. Gillen, of Newark, N. J., and Dr. Delos F. Wilcox, New York City, will be given in next week's issue, together with abstracts of the testimony presented on Thursday and Friday. Thursday's Sessions At the three sittings of the commission on Thurs- day the witnesses who testified were Commissioner Nixon of New York, followed by William P. Burr, cor- poration counsel. New York City, Prof. Irving Fisher, Greenville S. MacFarland, Thos. L. Hall, chairman Nebraska State Railroad Commission, and Mayor Con- nell, of Scranton, Pa. Mayor Thompson of Chicago telegraphed that he would be unable to appear as planned, and Otto Kahn wrote that it would be impossible for him to appear. Chairman William D. B. Ainey, of Pennsylvania Public Service Commission was present Thursday evening and was to be heard at 10 o'clock Friday. 340 Electric Railway Journal Vol. 54, No. 7 Some Mysterious Car Ailments Little but Important Troubles That Tend to Keep Equipment Men Interested in Their Work CONTRIBUTIONS ARE INVITED FROM THE FIELD How a Remedy for One Trouble Produced Another A LARGE Eastern rapid transit system operating trains equipped with multiple-unit type of con- trol and electro-pneumatic air brakes experienced con- siderable trouble from compressor cylinder-head gaskets blowing out. Investigation as to the quality of the gaskets used showed that these were up to the required standard. The foreman of air brakes received instruc- tions to make a thorough investigation of the trouble, in order to determine its cause. On visiting one of the terminals of the road he found the safety valves "popping off" on all of the cars that came in. His first impression was that the governors were out of adjustment or had purposely been set high .Release Pos'fion '600 Volf Line DIAGRAJt FOR ELECTRO-PNEUMATIC AIR BRAKES by some of the operating men. A train was held out of service for further investigation, and it was found that the air had been cut off from the compressor switches in each case so that they would not cut out the com- pressor. The compressors were thus running continu- ously regardless of the air pressure. The accompanying diagram shows the electrical and air connections for this type of equipment. The circuit for operating the compressor starts at the 600-volt line T2, passes through the wire T9 to the compressor switch across this and through the wire 124 to the compressor. From the compressor the current goes through the wire 125 to the battery charging switch, and through this and the batteries to ground. The compressor current is thus seen to be used for charging the batteries. The low-voltage or battery circuit is used for the con- trol of the governor and compressor switch, of which there is one on each car. The low-voltage circuit for this control starts from the Bl "plus" terminal of the battery switch, passes through the wire B6 "plus" to the governor and across its contact to the No. 15 wire which is a train-line synchronizing wire. All of the com- pressor switches on the train are in parallel between this No. 15 synchronizing wire and ground, so that any governor cutting in and energizing the synchronizing wire causes all the compressor switches on the train to close. The governor on each car is pneumatically op- erated and its cutting-in and cutting-out are governed by the main reservoir air pressure. The standard set- ting for governors is such that they cut in at 85 lb. main reservoir pressure and cut out at 95 lb. The compressor switches are electropneumatically operated. The battery current energizes a magnet valve which in turn admits air for cutting-out the compressor switch. This switch ordinarily is held in by spring pressure. Referring to the air connection to the governor and compressor switch as shown on the diagram, it will be seen that there are two cut-out cocks provided for cut- ting off the air pressure to either governor or the com- pressor switch as desired. The cutting-out-cock marked C2 is the one which had been closed in the present in- stance and caused the compressors to run continuously. By cutting the air off from the compressor switch this remained closed and the operating circuit through the compressor was thus established. The cause of the trouble having been located, the next investigation was to determine why the operating men had considered it necessary to cut out the compressor switches on all of the cars. On questioning several of the motormen. the information was furnished that these were being cut-out in order to charge the bat- teries which were weak. In this particular service it was evident that the compressor current was not suffi- cient to keep the batteries thoroughly charged, so that after a number of trips the control acted sluggishly and caused faulty operation. As long as the compres- sors were running the batteries were kept to their full voltage as they were floating across the line. Thus by keeping the compressors running the motormen found that they had no trouble from weak batteries, but the excessive air pressure which was obtained had caused the blowing out of the compressor head gaskets and the large increase in this trouble. In order to remedy the condition of weak batteries, the charging current was increased by using current August 16, 1919 Electric Railway Journal 341 from other sources in addition to the compressors to charge the batteries. The permanent handles on the cut-out cocks controlling the air to the governor and compressor switch were removed so that the air could not be shut off from these except by authorized inspec- tors provided with handles. Value of Pawl Springs Demonstrated by Ex- cessively Burned Controller Contacts AN EPIDEMIC of burned contact fingers and con- tacts on controllers led to an investigation as to the cause of the trouble by the engineering department of a large railway property. It was at first thought that this might be due to improper adjustment of the con- tact fingers or to their operating with too weak tension. As the trouble was confined to two or three of the depots of the system this assumption appeared to be a reason- able one. Investigation, however, disclosed the fact that while in some cases the tension on the fingers had been decreased by excessive heating from the burning which took the temper out of the finger springs, that in a majority of cases the tension maintained was proper and the contact fingers were properly adjusted. By operating the controllers on which the most severe cases of burning was found it was discovered' that the tension of the pawl springs was very weak, so that the motorman could scarcely feel the controller notches, and the evident cause of the burning was due to the motor- man stopping his controller drum movement between notches instead of on the proper contact positions. This led to an investigation of pawl springs. It was found that at the depots where the greatest trouble from burned contacts was experienced, there were also many broken pawl springs. The breaks in the pawl springs occurred at the end which hooks through the pawl, and at the bend where the loop leaves the first turn of the spring. At all of these shops it was found that the practice had been to open the loop of the spring with a pair of pliers or a screwdriver in order to hook the end of the spring to the pawl, and then to close this again slightly to keep it from unhooking after the spring was in place. As all springs were found to be broken at the end where the men had been in the habit of bending them in installing, it was evident that this bending was the cause of their breakage. The remainder of the operation of installing a new pawl spring consisted of hooking the other end of the spring over a stationary post. Several different meth- ods were used for this operation. Either a pair of gas pliers to grip around the spring, a pair of pliers to hold the loop, a screwdriver thrust between the turns of the spring, or a piece of wire or cord hooked through the loop of the spring was employed for the purpose. The last of these was found to be the best, as there was no danger of straining the spring. At one shop it was found that the men were cutting off the end of the loop so as to leave a space of about 1 in. between the first turn and the open end of the loop. This gave sufficient space so that the spring could be easily hooked through the pawl, but there was danger of the spring becom- ing unhooked in service. In order to facilitate the in- stallation of the springs at some shops it was found that a blow torch had been used to take the temper out of a few turns of the springs at the loop, so that the springs could be more easily stretched and installed. Another method which accomplished the same purpose had been to force a screwdriver between the spirals of the spring and to elongate it so that the tension of the spring would be decreased. While these methods rendered the installing of the springs much easier and also undoubtedly reduced the number of broken springs, it certainly increased the amount of burning at the fingers and contacts, as any decrease in the pawl spring tension permitted the motorman to stop the controller drum between notches. Another discovery was made which had led to diffi- culty in installing the pawl springs. This came from the indiscriminate use of two types of K-11 and K-28 pawl springs, which were of different design and dimen- sions. Some shops had but the one kind of spring which was used on both types of controllers and other shops had both sizes which were used for either type of controller without considering the type to which they rightfully belonged. To decrease the amount of trouble and prevent further irregularity the railway adopted one type of spring for use on the two types of con- trollers, which it had in service. This spring was made with a longer loop at one end, and with sufficient space at the end of the loop and the first turn of the spring to permit its being hooked into the pawl without bend- ing or closing of the loop. The space between the end of the loop and the first turn of the spring was made i in., and the entire length of the spring was so arranged as to provide sufficient contact after the spring was hooked into the pawl and to prevent its jarring out in service. Instructions were issued to all shops as to the proper method of installing these springs. These instructions specified that all pav/1 springs should be installed by using a piece of wire or cord hooked through the end of the spring after the other end had been inserted in the pawl. By the use of this wire or cord the spring could be easily pulled into position and hooked over the stationary post. Definite instructions were also given to the controller inspectors to prevent the use of any methods which would decrease the tension of the spring after its installation. Jerky Operation Does Not Improve Passengers' Tempers A MOTORMAN ran his car into the car house and reported that it would not start with the master controller on the first point. The car would start on the second point but the acceleration was so rapid due to the excessive current that the passengers were forced into one end of the car and made very uncomplimentary remarks regarding an inefficient motorman who did not know how to operate the car properly. This car was equipped with electropneumatic switch-group-type con- trol, and the electrician who was called in to locate the trouble found that the first resistor switch, R-1, did not operate. He tried several new valves, coils and contactors in this switch but still it would not pick up. The car was then turned over to the electrical depart- ment for more careful examination. An inspection of the relay in the control circuits showed that the upper disk did not come down far enough to make proper con- tact, and as it was in the operating circuit for the R-1 switch this poor contact was the cause of the improper action. The contacts were raised slightly so that proper connection was established, and the car operated satis- factorily. 342 Electric Railway Journal Vol. 54, No. 7 1^. o ^ ^ ^ '■Wroui^hf Iron To;? Plate - Walnut , other Parts • White Woool 3'/4"- A DETAILS OF SAFETY-CAR CHANGE BOARD, AND VIEW SHOWING CHANGE BOARD IN PLACE Change Boards on Safety Cars Connecticut Company Is Using on Prepayment Cars An Original Device to Facilitate Fare Collection THE Connecticut Company, on whose system a 6-cent fare is charged, has found very useful a "change board" designed by one of its employees, and now used on pay-as-you-enter cars and safety cars. When the 6-cent fare became effective, William Landy, a conductor on the New Haven division of the company, noticed how much time was consumed in making change for passengers who would present a dime, or a quarter, or any other single coin of greater value than 6 cents. He gave the matter thought and finally offered to the company the model of a change board which is now in use on all safety cars and which will be used on all pay-as-you-enter cars. The design used on safety cars consists of what looks like a shallow wooden box, one end of which is fastened by a keystone lock to the post that holds the fare box. There are thirty-two slots on this board, each slot « in. wide and I in. long, on each side of which small scal- lops have been cut out, so that the coins may be easily picked up. In these slots the operator puts change for 10 cents, usually a nickel and five pennies. At the farther edge of the board are eight slots for larger coins — like quar- ters or half dollars. When a passenger enters the car and gives the operator a dime, the operator merely picks the change for a dime off his change board and gives it to the passenger who puts 6 cents in the fare box and keeps the change. Much time is saved because the operator does not have to take a handful of change out of his pocket and count out the necessary five pennies. Under the change board proper are two shallow compart- ments, in one of which the operator keeps his transfers and punch, and the other is large enough for his re- port slips. The board is 12 in. long, 7 in. wide and 3i in. deep. The change board used on the pay-as-you-enter cars has no compartments for transfers, etc., and the board has rounded corners. It is held to the crown piece of the door-mechanism standard by means of two pieces of spring steel. It is 12 in. long. Si in. wide and 1 in. thick. There are twenty-two slots for change on this board. The conductor stands directly in front of the board, and as passengers come in he gives them change and they drop the proper fare in the fare box, which is placed just to the left of the change board as the pas- sengers enter. These boards are being made by the company in its own shops for use in all prepayment cars. The top plate is made of walnut and the other parts are of white wood. A well-written sketch of the one-man car by Floyd W. Parsons appears in the Aug. 16 issue of the Satur- day Evening Post. Views are shown of cars in opera- tion in Tampa, Fla., and in Bridgeport, Conn. The ar- ticle also contains facts about the present financial con- dition of the electric railways. ■9^4-- /2- .■Sprinq Steel V/ \y \T \T \7 ^ O Qf^ O O ^ Walnut CHANGE BOARD FOR TWO-MAN PREPAYMENT CAR, AND DETAILS OF TWO-MAN CAR CHANGE BOARD August 16, 1919 Electric Railway Journal 343 Electric Arc Welding Methods A Description of the Function and Practical Operation of Some Types of Equipment for Carbon and Metal Electrode Welding By H. L. UNLAND Power and Mining Engineeiing Department, General Electric Compan.\-, Schenectady, N. Y. THE principal advantage of the electric arc weld- ing process is that large amounts of energy are transformed into heat in a very small space. Heat is confined to the immediate locality of the weld and accordingly does not spread out over the adjacent space. This reduces materially the expansion and con- traction troubles, and at the same time results in a high heat efficiency. A further result of the great concen- tration of heat is to produce a very high temperature which is sufficient immediately to fuse the metal which it is desired to weld. It is not necessary in starting a weld on steel to preheat or to wait until the metal can be brought to the fusing temperature. Practically all arc welding is accomplished by either the metallic or the carbon-electrode method. In the former, the electrode consists of a wire or rod held in a suitable holder. In addition to melting a small pool on the work, the heat of the arc melts the electrode away and the current causes the molten metal to be driven, in finely divided particles, against the work. In this manner additional metal is built on or used to join two pieces of metal. By this method metal can be deposited on vertical surfaces and overhead. The carbon-electrode method is used for building up metal, plugging holes in castings, welding, and joining- parts where strength and appearance are not essential, or where the surface is to be machined off. Since heavy currents can be used, metal can be built on with great rapidity, and where speed is desirable this method is applicable. In the carbon-electrode method a carbon rod forms one electrode. The arc fuses the metal of the work and additional metal is built on by melting from a rod of filling material in a manner similar to soldering with an iron or welding with a gas torch. For cutting, or melting away excess stock, the carbon electrode is used. In cutting, the arc is held stationary at a point on the work where, when the metal is fused, it is free to flow or run ofl". As the molten metal runs away the arc is advanced, and in this way a cut is made through the piece. Welds soft enough to be machined can be made by us- ing either method if reasonable care is taken. The de- posited metal should not be chilled and if the carbon electrode is used the arc should be kept long enough to prevent carbon being carried into the weld. From other than the above causes, hard welds are usually due to poor quality of electrode metal or filling metal. The deposited metal is obviously cast steel, since it is merely fused in place and is not ordinarily subjected to any mechanical working afterward. The metal has the coarse crystal structure found in unannealed cast steel and likewise has comparatively low values for reduc- tion in area and elongation when specimens are tested in a tensile testing machine. In some cases the tensile strength of the metal in the weld may be as high as 55,000 to 60,000 lb. A safe figure is 35,000 lb. where the work is done by experienced welders. The Wirt Jones tests of the research sub-committee on arc welding of the Emergency Fleet Corporation, as reported in a paper before the A. I. E. E., show a range in tensile strength of from 38,600 to 62,600 lb. per square inch in welds made by direct current bare elec- trode, arc welding. These welds were machined down to the thickness of the plate before the tests were made. The elongation found varied from 4 to 13 per cent. Welding equipments may be classified as constant energy, constant potential and alternating-current types. Constant-energy equipments use a self-excited generator driven by either a direct or alternating-cur- MOTOR-DRIVEN ARC WELDING GENERATOR WITH CONTROL PANELS rent motor, or by gas, oil or steam engines. Constant- energy balancer sets are suitable when 110 to 125 volts direct current, is available. Constant-potential gen- erators can be driven the same as constant-energy gen- erators. Alternating-current welders may be used on 60-cycle circuits of 220, 440 or 550 volts maximum. The welder is single-phase but where several are in use on a polyphase system, they may be distributed among the phases to partially balance the load. Any direct current can be used for welding, but the voltage must be reduced to from twenty to fifty. One method of doing this is by using a constant poten- tial supply circuit and inserting resistance in series with the arc to absorb the excess voltage. With the ordinary supply circuits the voltage absorbed by the rheostats is a large part of the total energy. The amount of power required depends largely on the source of supply. In order to avoid losses the General Electric Company has developed a line of special, low-voltage generators and a method of control. The generator is wound for a voltage of from 60 to 75 volts, and the control equipment consists of a main generator panel with or without a welding control circuit, with a separate auxiliary pane! for each operator. In series with the arc is a grid 344 Electric Railway Journal Vol. 54, No. 7 rheostat for varying the current by means of a dial switch connected to taps in the rheostat. An automatic control equipment is provided to pro- tect the generator without affecting other operators whose welding circuits may be connected to the same generator. It consists of a protective relay controlling a shunt contactor in the welding circuit. The relay is ARC WELDING TRANSFORMER, AND TRANSFORMER REMOVED FROM CASING provided with an oil dashpot to prevent operation on momentary fluctuations of current. The setting of the dial switch on the welding panel determines the amount of resistance in series with the arc and therefore controls the current used. Before starting the arc the operator sets the dial switch for the amount of current required for the work. If, however, the operator leaves the electrode in con- tact with the work too long, or takes too much cur- rent after having drawn the arc, the protective relaj" opens the exciting coil of the contactor which in turn done by the carbon arc the capacity of the set depends on the cutting speed required. For light metal and where speed is not important 300 amp. is sufficient, but where the metal is 2 in. thick or more, it is desirable to use heavier currents and for this purpose up to 1000 amp. can be used. Another type of arc-welding equipment has been developed by the General Electric Com- pany to use alternat- ing current in the arc. It consists of a single-phase trans- former provided with taps and connections for obtaining the va- rious values of cur- rent and proper volt- age required by the bare metallic elec- trode arc as used in welding. The equip- ment also operates on a 60-cycle circuit and with supply voltages of 550 or less. The taps in the transformer winding are connected to ter- minals on a small switching panel where the proper connections are made by means of a plug switch. Four leads are brought out of the case, two of which are for connection to the supply lines and two for the welding circuit. The transformer with its panel is mounted in a woden box. The front panel of the box covers the switch panel and is provided with openings through which the plug switch can be inserted in making the connections. This mounting of the equipment in the box is so ar- ranged that definite air channels of suitable size are provided for the circulation of air by the draft due to the heating of the transformers. The box is approxi- mately 24 in. long by 18 in. wide by 20 in. high over all and the total net weight is approximately 350 lb. I- bolts are provided for lifting by a crane. The box rests on heavy wooden skids so the equipment can be dragged about if required. PORTABLE ARC WELDING SET opens the welding circuit. In order to resume oper- ations it is necessary only for the operator to lift the electrode, thereby breaking the circuit, whereupon the relay drops out, closing the contactor and restoring the circuits to the normal operating condition. Where carbon electrode work is to be done light work can be welded by using 150 to 250 amp. Medium weld- ing by this process requires from 250 to 350 amp. and heavy welding 400 to 600 amp. Where cutting is to be Specifications for Concrete Work IN THE Cayiadian Engineer, Prof. I. F. Morrison con- cludes an article on the subject of specifications for concrete by saying that these should call for concrete of a certain strength. This strength should be varied to suit the purposes to which the material will be put and an appropriate factor of safety should be used in the de- sign. Available materials in the locality of the proposed work should be sampled and tested, and the designer should be informed as to the strength available from these materials. In almost any locality tests on 6-in. x 12-in. cylinders can be carried out. Where work is done by contract, the contractor should be required to present his proposed proportions to the inspector sufficiently early; to permit a careful checking. The method of specifying concrete according to the strength or any other quality desired has not only become extremely practical but is advantageous from the standpoint of economy. August 16, 1919 Electric Railway Journal 345 New Rolling Stock for District Railway, London Larger Cars for Operation In Longer Trains With Rapid Rates of Acceleration and Retardation Are Needed to Better Conditions THE Underground Railway authorities of London, England, have now under construction cars of a new type designed to relieve the present overcrowding and provide greater comfort for the passengers. The present needs of the District Railway will be taken care of by the putting into service of 100 cars as soon as these can be delivered. Already the headway in side. Thus wherever in the car a passenger may be seated he will find an exit conveniently accessible. In appearance the new trains will not differ very materially from the latest pattern District trains now running except that the sides of the coaches will be slightly curved instead of straight. The cars will be fitted with larger trucks and Avheels and will be higher powered, which will materially improve the running as regards speed and comfort. As to dimensions, the width will be 9 ft. 6 in. as compared with 8 ft. 6 in. at present, and the length 50 ft. against 49 ft. The new trains will be capable of speeds up to 45 m.p.h. when working on "non-stop" services. Improved acceleration has been brought about Molor Car, & Doors Trail Car, fe Doors Control Trail Car, 1 Doors Cagacity 40 Capacity 48 Capsicity, 3- Class 12; I'J Class 52 NEW TYPE THREE-CAR TRAIN UNIT FOR METROPOLITAN DISTRICT RAILWAY the tunnel section of the railway is so low that it is not practicable to increase the number of trains except to a small degree; hence the alternative adopted is to increase the length of each train to 400 ft., the maximum permitted by the station platforms. The new District trains will comprise eight cars in all. The cars will be wider than those now in use, the wadth being extended to about the limit of the present stepboard. The trail cars will be fitted with three double sliding doors, each wide enough to permit two passengers to board or alight at one time. On the motor cars and control trail cars there will in addition INTERIOR OF NEW LONDON "UNDERGROUND" CAR be single doors at the ends. These will be available for the use of passengers when not obstructed by the train crews. Thus on an eight-car train there will be the equivalent of fifty-two single doors for the use of passengers. This provision for speedy passenger transfer is expected materially to reduce the time taken in loading and unloading at stations and permit a greater number of trains to pass over the congested sections of the line during rush hours. The present type of end vestibule will be dispensed with in the new design and the doors will be equally spaced along the by adding motors, and the braking apparatus has been selected to permit quicker stopping. The eight-car trains will be made up of two self- contained sections with a view to operating five-car trains during the slack hours and eight-car trains during the rush hours. The three-car unit can be utilized dur- ing slack hours on certain of the local sections of the line. As regards the interior arrangements and decorations, special attention has been paid to the design of the seats, to general "roominess" and to ventilation. The upholstery will be in moquette velvet in non-smoking compartments, and in "smokers" in a washable leather 01 some such material as "pegamoid." At each end of the car there will be large oval plate-glass windows, and the interior metal fittings and door handles will be of a non-oxidizing material. Convenient hand-rails and stanchions will be provided near doorways and in open spaces. The car is to be constructed of steel throughout except for a small amount of woodwork chemically' treated to render it fireproof. New Type of Bench Jointer A new type of portable bench jointer has recently been placed on the market by J. T. Wallace & Company, Chi- cago, 111. It is equipped with its own motor, lamp cord and plug ready for operating from an ordinary lighting circuit as required. The machine is equipped with a new type of fence that was developed particularly in connec- tion with this machine. This fence is mounted on the motor and slides backward or forward on rods, which has an advantage in that adjustments can be made more quickly than with the ordinary type. To provide for the replacing of the cutter heads these have been specially constructed and the tables are arranged to slide back- ward to permit the use of these special heads or for- ward to work with the narrowest possible throat open- ing. Ball bearings are used throughout in the motor and cutterhead housings. .346 Electric Railway Journal Vol. 54, No. 7 Mechanical Overload Release for Power- Driven Machines THE "Lettgo" release is a new device that will auto- matically disengage the driving power from driven machinery if the load exceeds a predetermined amount, thus allowing the driving motor or other source of power to run free without friction in the release. The device is designed to take care of an overload gradually as well as suddenly applied, and it can be set so as not to trip out from sudden jars or shocks. The operating principle and details of construction of the device are indicated in the accompanying illustra- DETAILS OF CONSTRUCTION OF OVERLOAD RELEASE tions. Referring to the drawing it will be noted that a spider A, keyed to a shaft B, has trigger C pivotally mounted on links D, with the ends engaging inside notches in the rim of the drum F and roller K. Springs E, regulated to any desired pressure by adjusting nuts H, hold the ends of the triggers on rollers K, under normal conditions, but when the drive is overstrained the compression of the springs permits the ends of the trigger to drop into the position shown in the detail drawing, releasing connection with the rim F and al- lowing the driven machine to stop immediately. For use in reset- ting the driving triggers in the driving position the collar J is pro- vided with fingers that engage the pins on the lower ends of triggers C. When this collar is turned by means of a spanner wrench, the triggers are moved to the orig- inal position and the outer ends at the same time enter notches in the drum F, thus renew- ing the transmission connection. A cover G, fits the end of drum F and incloses and protects the entire mechanism The hub of drum F may be extended to receive a wheel or gear, with a bushing for running loose on the shaft, or it may be keyed directly to a sep- arate shaft, thus forming a coupling device in which either element may be the driver according to the cir- cumstances. The release can be installed close to the driving ma- chinery so that when it operates there is no inertia DEVICE IX RELEASE POSITION force from high-speed moving parts to be overcome. It is made symmetrical and can be assembled to operate in either direction. The springs are arranged to adjust the tension so that the release will operate at the proper load, and no matter how often it operates the proper factor of safety is said to be maintained. The mechanism is entirely inclosed so that it can be packed with grease to insure lubrication for all operating parts. This device is said to be particularly useful on old conveying machinery which is weakened by long wear, and incapable of carrying any appreciable overload. Other forms have been developed for lighter high-speed service, one in particular being the single trigger re- lease which has been developed for reversible operation and is arranged automatically to reset the driving trigger after being tripped out, if the direction of rota- tion is reversed. The device in all its various forms has been patented by Frank E. Aurand, Oak Park, 111., and is being man- ufactured in four sizes by the Link Belt Company of Chicago. It is now being made particularly for ap- plication to endless-chain conveyor machinery, but can be applied to many kinds of service. New Steel Gain Saves Poles THE Hallet improved steel gain has been designed to eliminate the necessity of cutting a gain in a pole for the installation of a crossarm. The steel gain consists of a pole plate with a radius larger than that of the pole and a gain plate of galvanized steel. STEEL GAIN BEFORE AND AFTER TIGHTENING INTO POSITION This gain is placed between the crossarm and the pole. Tightening up the nut on the bolt which passes through the crossarm, gain and pole causes the struts on the gain plate to press against the pole plate in such a manner as to cause the pole plate to shape itself about the pole. It is claimed that the gain grips the pole so firmly as to permit the weight of a lineman at the end of a 5-ft. crossarm without producing any visible sign of deflection in the arm. The size of the gain depends upon the vertical dimen- sion of the crossarm and the diameter of the pole. They are made in three sizes of pole plate — namely, for pole diameters of 6 to 8 in., 8 to 10 in. and over 10 in. Before the gain is applied the distance between pole plate and gain plate is I in. This gain is manu- factured by the Hallet Iron Works, Harvey, 111. August 16, 1919 Electric Railway Journal 347 A Combined Motor Truck and Tractor for Use Around the Shop and Freight House AN EXHIBIT at the Atlantic City convention of the American Railroad Association, mechanical section, which attracted considerable attention, was that of the Motor Products Corporation, which has developed the Clark "Tructractor." Although on the market for but a short time, this machine has already proved to be "TRUCTRACTOR" FOR HANDLING MATERIALS ANO DRAWLING TRAILERS serviceable in many industrial plants. It has a carrying capacity of 14 tons and is supplied with either platform, cargo, or dump body, being provided with a drawbar at- tachment for convenient connection to the trailer. The speed can be varied from i to 15 m.p.h., and in ordinary use the gasoline consumption is 3 gal. per working day. In a recent cross-country test a "Tructractor" made 143 rnihs in one day, including a number of demonstration stops. New Portable Commutator Slotter Has Good Cutting Speed THE practice of undercutting mica on the commu- tators, of both large and small machines is more or less universal with both manufacturers and users. Conditions have led to the development of a portable motor-driven tool for undercutting the mica which in the case of large machines can be used without remov- ing the brushes. The essential feature of this commu- tator slotter is a l2-in. circular saw keyed to a hollow mandrel which in turn carries a worm gear. The hol- low handle contains the steel driving shaft with worm PORTABLE DEVICE FOR SLOTTING COMMUTATC )liS and a small universal motor. Immediately behind the saw is a thin metal guide shoe which slides in a sloi insuring a straight cut. Adjustments are provided so that the machine is serviceable for any size commutatoi and will cut to any desired depth. The rate of speed at which mica can be cut depends upon the length of commutator, the grade of mica and the operator but it is said that 20 in. to 30 in. per min- ute on large machines is easily accomplished. The life of the saw depends upon the condition of the mica but is said to average about 150 ft. After the comrhutator has been undercut the only smoothing operation neces- sary is to run a piece of fine worn sandpaper over the commutator lengthwise of the slot. The total weight of the machine is approximately 10 lb. and is borne by the adjustable depth shoe on one side and a small roller on the other. The handle and motor casing are made of polished cast aluminum. The universal type motor is of the definite pole type, series wound and is furnished for either 110 or 220-volt service and will operate at either 25 or 60 cycles. This machine which is known as the Aurand commutator slotter is being placed on the market by J. H. Green & Company, Chicago. Self -Centering Chuck Facilitates the Boring of Motor Bearings THE accompanying illustration shows a form of auto- matic chuck used in the shops of the Third Avenue Railway, New York, for boring railway motor-armature and axle bearings. This chuck is the invention of Harry J. Krombach, assistant general foreman of that company. It is in use on the properties of other large railways. TURNING AN ARMATURE BEARING The development of this device has resulted from an effort to reduce the cost of finishing bearings. Vari- ous forms of holding devices are used for this work. Some are specially designed and constructed for this purpose, while others use the U-shaped jaws of the reg- ular lathe chuck. Where the regular chuck is used considerable time is consumed in setting up for the boring operation, and as the jaws bear at four points on the circumference of the bearing, there is a ten- dency to force the bearing out of line if too large a cut is attempted and bearings can be distorted by excess pressure of the jaws. The chuck illustrated consists of two cast-steel parts, the body or jaws of the chuck and the sleeve nut which actuates the jaws. Its weight 348 Electric Railway Journal Vol. 54, No. 7 is 45 lb. and it can be readily adapted to operate satis- factorily on any type of lathe. In order to eliminate the possibility of an inaccu- rate fit the chuck is supplied with the spindle end of the body untapped. Experience has shown that some- times in tapping the casting for the lathe spindle con- nection there is the liability of this being made "out of true." With the final cut made on the lathe with which the chuck is intended to operate, this risk is avoided. The inside body or jaw of the chuck provides for a compression of about 5 per cent of the diameter. With •a 5-in. maximum-capacity chuck, for instance, it is pos- sible to hold rigidly any bearings having an outside diameter of not less than 41 in. and not exceeding 5 in. Where smaller bearings are to be held, it is necessary to introduce a reducing sleeve having slots which form jaws parallel with those in the body of the chuck. By the use of such sleeves small diameter bearings can be held rigidly. Some of the advantages claimed for this chuck are a saving in time necessary to set up the work and its ready adaptability for use with a low grade of labor. The chuck is manufactured and supplied by J. E. Coonan, New York. Insulating Varnish Solvent Chart N order to prevent or assist in preventing the use of varnishes at wrong gravity, which affects the results obtained, the Dolph Manufacturing Corporation, New York, has just issued a copyrighted "Solvent I DEC. 0S03 0897 089Z 0886 oesi 087S 1870 0864 a ess ass* om ami Q838 3S33 JSZB DEC B 25 ?6 27' 28 29 30 31 32 33 34 35 36 37 38 39 40 25 0 7«S? 2t 3 0 08?; n 6i H 0 28 10 7 0 788/ 29 !4 lOi 7 0 08?i 30 IS I4i // 8 4 0 5.8T 31 22 19 IS "i 8 4 0 ?6&? 32 27 23 iH I5i Hi 8 4 0 38£E 33 32 28 24 20 16 12 8 4 0 Dec •Decimal Scale 3F« 34 57 33 29 25 21 17 izi H 0 B •BeoumeScalf ?W? 35 43 39 35 30 26 22 I3i d 0 3S43 3e 50 46 41 36 32 ?7i 23 18 14 9 5 0 :S38 37 57 S3 48 43 38 33 28i 24 le ■I4i H 5 0 QS33 38 es GO 55 SO 45 40 35 30 25 20 IS 10 5 0 382i 39 74 £9 64 58 S3 48 42 37 32 26 21 16 II ei 0 }823 AO 84 78 73 67 61 56 50 44 39 34 28 22 17 12 6 0 SOIA'ENT CHART FOR INSULATING VARNISHE.S Chart" showing the percentage of solvents which should be used with its insulating varnish to produce the right specific gravity. The specific gravity sho\vn on the chai't is that at which the varnish is shipped ; it is given in both the decimal scale and the Beaume scale. The m.ost suitable gravity for any particular use should be established by trial and endeavor made to keep this constant. The solvent chart indicates the amount of solvent to be added to reduce the varnish to the desired gravity. Benzine is preferable to gasoline as a solvent, but gasoline can be used. The solvent and varnish should be approximately at the same tem- perature and neither under 60 deg. Fahr. The solvent should be added slowly and stirred thoroughly. As an example of the use of the chart, if it is desired to reduce from 30 B. to 32 B., the chart shows that 8 gal. of 58-deg. benzine would be necessary for every 100 gal. of varnish. To reduce from 0.864 (decimal scale) to 0.843, 18 gal. of 58-deg. benzine is required. Rail Joints Made Without Bolts ANEW TYPE of joint for T-rails developed by the Boltless Self-Tightening Rail Joint Company, Fre- mont, Ohio, is shown in the accompanying illustration. It is intended to provide a tight joint, and eliminate the use of nuts, bolts and washers. The joint is made in two types, one for a two- tie joint and the other arranged to bear on a single tie. The two-tie joints in which the boltless joint is suspended between the ties consists of a mal- leable iron or steel rail chair which is spiked to the ties. The rail is held against one side of this rail chair by a reinforced fish-plate bearing on the oppo- site side of the rail. A tapered hardened steel wedge inserted between this fish-plate and the rail chair, and driven home with a sledgehammer, forces the fish-plate against and under the ball of the rail so as to provide a tight joint. The small end of the wedge is turned dovra, and a coiled spring provides tension for keeping it tight, and for taking up any wear occasioned by vibration. The spring is held in place by a nut which is slotted and held in place by a cotter pin. BOLTLESS RAIL JOINT 1 — Rail chair. 2 — Fishplate. One-Man Car Mirror for Interior View THE Drew Electric & Manufacturing Company, Indi- anapolis, Ind., has added to its regular line of motor- men's safety mirrors a new one especially designed to give the operators of one man cars a clear view of the entire inside of "he car. This mirror is round, beveled and in- cased in a sub- stantial b r 0 3!t z e frame havirig a two-way adjust- able bracket which permits the device to be attached to each center post a1 both ends of the car. The diameter of this mirror is 5i in., and it can be adjusted to suit the particular heigHt of any opera- tor, giving him at all times a full view of the interior of the car. 1 1 >■■- ■Mb.. MIRROR DESIGN FOR GNE-MAiST CARS August 16, 1919 Electric Railway Journal 349 Letters to the Editors What Passenger Costs the Most? Brooklyn, N. Y., Aug. 11, 1919. To the Editors : In the early days of the electric railway industry, both the public and the operator believed that the rush- hour passenger was the most profitable. So far as t"he operator is concerned, that idea is long since exploded, but the old-time concessions are still in force in many communities. In one form or another, the workman's hours rate is still in use in many cities to plague con- ductor and auditor with tickets sold at less than the service costs to produce. To-day we are seeing a curious reversal of this prac- tice in that the person who rides during the off-peak hours is being asked to pay an extra charge unless he provides himself with tickets bought, say. to the num- ber of six. In one instance, five tickets are sold for 30 cents while the individual cash fare is 10 cents. Now it is assumed that the rider who is asked to pay the difference between the cash and the ticket fare is either a local or outside casual who ought to pay a larger standby charge because he is not a regular customer. At the same time, we have the patent fact that most of these casuals board the cars when there are plenty of vacant seats. Is it worth while to charge this high- er rate at the very time that it is cheapest to carry the passenger? Cannot we forget theory for a moment and see what can be done to get the largest amount of revenue through the carriage of the greatest num- ber of passengers? No doubt, the point will at once be made that it is so easy to purchase a mere half-dozen or even a dozen tickets in advance. True, but the greater proportion of the ticket purchasers are exactly the same ones who have had the workman's concession in the past. In other words, it is chiefly the person who must ride twice a day that provides himself with tickets and this riding is rush-hour riding. On the other hand, there are plenty of people who may ride on the cars just as often but at irregular intervals and at different hours of the day. These are the agents, plumbers, car- penters, painters, etc. traveling from one house job to another, shoppers, errand boys and so on. It is ad- mitted that the average off-peak ride is shorter than the average home-factory, rush-hour ride. Since that is the case, it follows that the off-peak rider exercises more option as to whether he will ride or not. For this reason he is less likely to buy a supply of tickets in advance and more likely (because of his shorter rides) to resent a higher rate of fare. There is, of course, the town visitor who certainly could not lay claim to special consideration on the fore- going grounds. Yet even he has to be considered. A great many people of this type come into the town to spend money for business or pleasure. It is a good thing to make them feel that they are wanted and wel- come instead of asking them to pay a 10-cent fare. Many a merchant would prefer to pay the fares of such visitors than to have them stay away from town. The case of the visitor for pleasure stands out in the experi- ence of a town which has always been a center from which summer vacationists made many tours without causing the railway any undue expense for special roll- ing stock and the like. When fares were increased, a 6-cent ticket rate was made for wholesale riders and a 10-cent cash rate for retail riders. The company, how- ever, gave to the cash passenger a redemption coupon good for 4 cents if turned in the same day. This was not very satisfactory to the non-resident vacationist as the time connections of the day did not usually give him the opportunity to get his money back. He said: "Now isn't that a fine way to be made welcome?" and resolved to take his next vacation elsewhere. He could not understand the contradiction of getting specially low rates on the steam railroad on which he must ride and of paying specially high rates on the electric rail- way on which he does not have to ride. The nib of the whole rate-of-fare question is not that of finding what each kind of passenger ought to pay but what he can be made to pay voluntarily. A parallel with the standby charges of gas and electric light companies leads to dangerous conclusions. The purchaser of gas or electricity must commit himself to paying something for a fixed connection, no matter how little gas or electricity he buys. If he has no pipe or wire leading into his house, he cannot get a cubic foot of gas or a kilowatt of energy at any price. But the street railway customer has no fixed connection for which to pay He can take the service or leave it, whether he rides twice a day or twice a month. At- tempts to make him pay a higher rate for fewer rides do not fail because they are unjust but because they are impracticable from the very natui-e of the street rail- way. Having pointed out the disadvantages, immediate and remote, of charging a higher fare to certain classes of casual, short, off-peak riders, a constructive suggestion is in order. That suggestion is: "Secure oflF-peak riding from your present twice-a-day rush-hour riders by giving them all extra rides at a lower rate of fare than the standard one-ride fare." To do this, it would be necessary to sell a commutation ticket at a rate equivalent to say three full-price rides a day but good for four rides and possibly for an unlimited number of rides a day. As the holder would already be a rush- hour patron, his additional riding would necessarily be off-peak riding. It would not be necessary to limit the ticket to the buyer because it would not be practicable for him to give the ticket to anyone else except after his return from work in the evening. The tickets would be sold on a weekly or twice-a-month basis in ac- cordance with the wage-paying practices of the prin- cipal factories. A monthly basis involves too large a sum for an article purchased a few cents at a time. Merchants, also, would be delighted to co-operate in selling a ticket that would bring the shoppers down- tovra every day. This would mean more goods sold, a greater proportion of goods taken home, more satis- faction and therefore less returned goods than with telephone shopping and a better opportunity to learn on what kind of goods to stock up. That merchants would advertise and sell such tickets at cut prices would not harm the electric railway one bit. In general, I believe that some form of limited or un- limited ride ticket will prove far more satisfactory than any form of reduced-rate ticket for special hours of the day. It reduces instead of increasing platform ac- 350 Electric Railway Journal Vol. 54, No. 7 counting (mighty important on one-man cars) and gives the reduced rate only to those who are buying more transportation than they have to instead of to any casual who happens to board the car during the off-peak hours. We hope no one will arise to say it can't be done when it is being done abroad under con- ditions far more strenuous than the average American city. It involves more trouble than one or two rates of fare, but does the merchant shirk selling his goods at different prices according to quantity, quality and day of week just because it makes more work? Hardly. If we are to merchandise transportation, we must do all those things, whether troublesome or not, that will bring the greatest revenue through the greatest num- ber of rides and riders. "Transportation." M^hy Does the Operating Engineer Frown Upon Theoretical Calculations? New York City, July 26, 1919. To the Editors: 1 read, with much interest, the article by C. W. Squier on "Car Performance from the Engineer's Office to the Track" in the June 21 issue of the Electric Railway Journal. Mr. Squier shows that it is possible to obtain a very close agreement between the results from engineer's calculations concerning new motors not yet built and the same motors after they are constructed. My natural deduction from this is that the differences between the plotted results of actual tests conducted on cars fully equipped and the speed-time curve which could be calculated from the characteristic curve of the existing equipment would show an even closer agreement. To show the perfect accord between theory and practice I believe a procedure opposite to that given by Mr. Squier should be followed. In other words, first make the equipment test and plot the results on a speed and current basis. Then calculate the speed-time curve, using the data and conditions found to exist. The reason that such a calculation would show an even closer agreement with the test results is that in any run there are so many variables to take care of that it is seldom possible to have the run performed as speci- fied; on the other hand it is very easy to reproduce on paper any operation which has already been performed m service. I have met a great many electric railv.-ay men who do not believe in speed-time curves, and even among the most progressive operators the tendency appears to resort to a large number of tests, which are frequently extensive and costly, instead of relying upon the work of an engineer which can be performed at a desk. F. Castiglioni. [Note. — Mr. Castiglioni's letter was referred to Mr. Squier, who explains that the fundamental point which was intended to be brought out in his article was the remarkable accuracy with which motors can be produced to perform a given service, and to conform to predeter- mined characteristics. Of course this emphasizes the close agreement of theory and practice in this case, but the formulas and data used in the calculations were obtained from tests and the logical method of presenting this discussion could seem to be to follow with the results obtained in the design, rather than to show how close a theoretical speed-time curve can be made to conform to one obtained in actual operation. The closeness of any such calculation will depend entirely on the skill with which the calculator makes his assum.ptions. If an operating engineer wants to know how much power a certain car takes in a par- ticular service, the simplest and most reliable way of obtaining this information is to put a meter on the car and measure the power consumption. If it is necessary to know how hot the motors become, the operating engineer usually takes some temperature readings. The conditions which confront the manufacturing engineer are entirely different from those confronting the operating engineer. The operating engineer has the motors all constructed, and the car completely equipped to operate. He also has the service at hand and can make tests very quickly and can be sure that they represent actual conditions. For him this is the simplest and quickest way of securing reliable informa- tion. The manufacturers' engineer, however, has to rely almost entirely on theoretical assumptions as the equipment and point of operation are often far removed from his office. Manufacturers seldom find it necessary to carry out the elaborate calculations and tests which were outlined by Mr. Squier in order to decide on the design of the motor equipment. The usual and simplest course is to obtain temperature readings for motors of any type which are operating in the service. The suit- ability of new equipment is determined by comparison of the motor characteristics of the motors tested with those proposed. The apparent disregard of theoretical graphs by operating engineers has resulted because such are not necessary in the majority of cases in order to obtain the information desired. Even if theoretical calculations are undertaken the operating engineer feels that it is necessary to make a series of tests in order to check up the accuracy of the calculations, which means doubling the work. The operating engineer, while cap- able of framing theories, insists that it is the test under actual conditions that influences his opinion and that all the data used are the result of practical tests. — Eds.] Association News ATLANTIC CITY CONVENTION, OCT. 6 TO 10 Addition to Convention Exhibits Since the publication of the preliminary list of ex- hibitors at the Atlantic City convention, in the issue of this paper for Aug. 2, space has been assigned to the following : American Association of Chilled Car Wheel Manufacturers American Mason Safety Tread Company American Steel & Wire Company Bemis Car Truck Company Cleveland Frog & Crossing Company Clipper Belt Lacer Company Barron G. Collier Economy Electric Devices Company Gurney Ball Bearing Company Hclden & White Jennison-Wright Company Johnson Fare Box Company Liberty Steel Products Company Monroe Calculating Machine Company National Tube Company National Railway Appliance Company St. Louis Car Company Texas Oil Company Thew Automatic Shovel Company Tool Steel Gear & Pinion Company M. Welte C. H. Wheeler Manufactur- ing Company Wilson Welder & Metals Company Van Dorn Coupler Company News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION PERSONAL MENTION Birmingham Men's Demands Eight-Hour Day and Almost 100 Per Cent Advance in Wages Are Asked Increases in wages amounting in several cases to 100 per cent are de- manded by its trainmen from the Bir- mingham Railway, Light & Power Company, Birmingham, Ala. The con- tract between the company and the union expires on Aug. 31. A copy of the demands to be made in the new contract were handed to the officials of the company on Aug. 5 by the com- mittee of the men. The demands pro- vide for a minimum of 60 cents an hour with a sliding scale extending as high as 70 cents an hour. The de- n)ands also include an eight-hour day with time and a half for all overtime, and provide that this shall apply to national holidays except Christmas, for which day the men shall be paid double time. The present rate of pay of the men is a minimum of 31 cents an hour with a maximum of 38 cents an hour. The increases in sevei-al instances amount to 100 per cent. No Statement from Receiver No statement in regard to the de- mands has been made by the receiver or any of the other officials of the company. A conference will be held, it is stated, with a committee of the men some time next week. The date of this conference has not yet been fixed. Section 22 of the proposed agree- ment relates to wages of men and provides that during their first year of service their rate of pay shall be 60 cents an hour, second year, 65 cents an hour; and third year, 70 cents an hour. Carpenters under the proposed schedule would receive from 68 to 75 cents an hour. Machinists would re- ceive 78 cents an hour. A raise every six months is provided for apprentice boys. Armature winders are rated at 78 cents an hour for first-class wind- ers, 68 cents second class, and repair men 60 cents an hour, and apprentices 35 cents an hour with a 3-cent increase every four months until they become armature winders. Other wages as proposed in the agreement are: Scrubbers, 42 to 48 cents an hour; painters' helpers, 48 to 55 cents an hour; painters, 68 to 75 cents an hour; truckmen's wages, first three months service, 50 cents an hour; second three months, 57 J cents; third three months, 60 cents; fourth three months, 63 J cents; and a scale of 65 cents thereafter; blacksmiths, 80 cents an hour; pipe fitters, 70 cents; helpers 50 cents with increase of 5 cents an hour each year until they reach the scale. The proposed agreement provides for recognition of the union and a con- tinuation of the present closed shop policy. It further provides that train- men shall handle no mail. The men also want extensive improvements car- ried out at the carhouses and seats on cars for both motorman and conductor. Face the Facts! We hear a good deal of talk about prices again becoming "nor- mal." Such talk results from a lack of understanding of what constitutes a "normal" price of a commodity or a "normal" wage of labor. If by "normal" is meant the prices and wages of, say, 1914, I do not believe we shall ever again see such prices and wages, and vi'e should at once begin squarely to face the facts. In my judgment the tendency is toward higher prices and wages. As I view it, a "normal" price is a price based upon the cost of production, so that what was a fair price for a commodity in 1914 is not a fair price in 1919. The same is true of wages; for "nor- mal" wages in 1919 must be based upon what it costs the worker to live according to American stand- ards and allow a reasonable margin for the inevitable rainy day. We are entering upon a new era. The future must bring a square deal for labor, a square deal for the public and a square deal for the public service companies, which are now being starved to death for lack of nourishment. BrITTON I. BUDD President Chicago Elevated Lines Chicago New York Mayor Suggests City- Owned Bus Lines The Hylan Administration in New York City has taken steps toward establishment of municipally controlled bus lines in all of the city's five bor- oughs. Acting upon a suggestion from Mayor Hylan the Board of Estimate has directed the Commissioner of Plant and Structures to make a com- prehensive survey of existing transit facilities and to submit recommenda- tions as to the operation of the pro- posed bus lines. The city-owned lines, if established, would be run in competition not only with privately-owned bus companies but with the surface railways. Request for Eight-Hour Day Milwaukee Men Advance This Plan — Company Lacking Revenue Appeals to Railroad Commission On July 30 the transportation de- partment labor adjustment committee of the Employees' Mutual Benefit As- sociation sent to Mr. Keummerlein, superintendent of transportation of the Milwaukee Electric Railway & Light Company, a request that the company now consider the desirability of carry- ing out the provision of the general labor contract of April 10, 1918, pro- viding for an eight-hour day. The com- mittee also requested that the company place the association in a position to procure the services of sufficient train- men by raising wages to a level that will accomplish this purpose. On July 31 Superintendent Keummer- lein advised that the company was un- able to carry out the provision of the general labor contract of April 10, 1918, subject to the limitations therein pro- vided, because it had not yet been pro- vided with sufficient revenues therefor; it was accordingly unable to accede to the request for an eight-hour day in the transportation department and it was also unable to raise the wage levels to a sufficiently high plane to attract the necessary labor properly to man the cars. Will Petition Conciliation Commission Mr. Keummerlein stated that the com- pany would, within the next day or so, file a petition with the Board of Con- ciliation, recently created under the Wisconsin laws by Chapter 530 of the laws of 1919, and ask the Board of Con- ciliation to make a prompt determina- tion of reasonable wages, hours and working conditions, etc. Under Chap- ter 530 of the laws of 1919, the Board of Conciliation is required to file its findings with the Railroad Commission of Wisconsin immediately and the Rail- road Commission in turn is required to review such findings of the Board of Conciliation and change or approve such findings. The law requires the commission to fix such rates of fare, tariffs, etc., as will provide for the in- crease in wages, if any are ordered, and will also at the same time produce a reasonable return upon the fair value of the investment in utility property. On Aug. 1 the company forwarded the petition to the Board of Conciliation at Madison. It is expected that hear- ings will be held very soon. The com- pany on July 22 petitioned the Railroad Commission for adjustment in fares so as to permit it to meet current wage requirements and produce a reasonable return upon its railway utility capital. 352 Electric Railway Journal Vol. 54, No. 7 Brooklyn Strike Settled Receiver Will Deal With Trainmen on Same Basis as He Treats With Railway Brotherhood The strike of the trainmen of the Brooklyn (N. Y.) Rapid Transit Com- pany was settled late on Saturday, Aug. 9. Service in full was resumed on Sunday morning. The strike was declared on Wednesday morning. The Union the Issue While questions of wages, terms of service and other issues were involved in the controversy between the com- pany and those of its trainmen who had become affiliated with the Amalgamated Association, the principal issue was the demand for recognition of the union. This matter, under the terms of the adjustment, is to be settled on the basis of the proportion of employees who were members of the Amalgamated Association at midnight on Friday, Aug. 8. If the union included a ma- jority of the employees, the receiver is to recognize it. If it did not include in its membership more than 50 per cent of the employees at that hour, the receiver will not recognize the union. The stand of Mr. Garrison, the re- ceiver of the company, was that he would not negotiate with the organiza- tion if it represented only a minority of his employees. The settlement agreement was signed by Judge Mayer and was witnessed by Mayor Hylan, Corporation Counsel Burr, Public Service Commissioner Nixon, Mr. Rogers, Mr. Garrison, Oi-- ganizer Shea and Union Counsel Fri- diger. The agreement follows in full: At a conference with Judge Mayer on Aug. 9, 1919, the following is herewitli agreed : That the pending strilce be called off at once and the men return to work at once upon the following conditions: 1. That if it is established to the satis- faction of Judge Mayer and Public Service Ccmmissioner Nixon that at midnight. Aug. S. 1919, employees of the Brooklyn Rapid Transit system eligible to membership in the Amalgamated Association were en- rolled members of said association to the txtent of more than 50 per cent of such en ployees so elig'ible, then the receiver V. ill entertain the grievances presented by the committee headed by E. D. Smith or such substitutes for such committeemen as n-.ay be properly substituted in place there- of, according such committee at least the same recognition as is now accorded the Brotherhood of Locomotive Engineers. 2. The receiver will receive the commit- tee presenting the grievances and take the sa.me up with such committee and with such advisers or counsel as such commit- tee selects. Arbitration as a Last Resort 3. In the event that such grievances or any which may hereafter arise cannot be adjusted by and between the receiver and the committee, they will be arbitrated by a board to consist of F. J. Shea, or his nominee, and Lindley M. Garrison, or his nominee, and, if necessary, by a third member to be mutually agreed upon by said Shea and said Garrison : and in tlie event of said Shea and Garrison being un- able to agree upon a third member, and so stating-" to Mayor Hylan and Commis- sioner Nixon, the two gentlemen last named slnll +h' reu'ion desig'iate arbitrators. 4. All parties agree to abide by the deci- sion of the said arbitrators. Public Service Commissioner Nixon played an important part in bringing about the settlement. It was he who first proposed a scheme of arbitration that won partial support from both sides. As soon as it was evident that the commissioner's proposal contained the basis of a compromise or settlement, the leading factors in the situation ad- journed to Judge Mayer's chambers, and after three hours of discussion finally arrived at the basis of settle- ment that was finally agreed to. The strikers are asking an eight- hour day, 75 cents an hour and the reinstatement of men said to have been discharged because of their activities in behalf of the union. The question of the preponderance of union men once disposed of, conference over the matters just mentioned will follow with arbitration as the final resort. For three days and sixteen hours service on the lines of the Brooklyn By paying a 60-cent maximum scale to its trainmen the Tri-City Railway, Davenport, la., on Aug. 7 ended a strike which for five days tied up all trans- portation on its lines. Service on all the company's lines in Iowa and Illi- nois was resumed at once with the ex- ception of the Muscatine city system. Service there will only be resumed, company officials state, when the City Council has agreed to a satisfactory fare increase. A Gentlemen's Agreement The company agreed to the new wage scale when a majority of the City Council of Davenport had made a gen- tlemen's agreement to the effect that the same fare shall prevail in Daven- port as the Public Utility Commission of Illinois may award in Illinois. The new wage contract, beginning on Aug. 6 and expiring on June 1, 1920, was signed on Aug. 6. The Clifton, Davenport & Muscatine Interurban, also affected by the strike, resumed service at the same time as the city lines in Davenport and Betten- dorf, la., Rock Island, Moline, East Moline, Silvis and Watertown, 111. Although the company granted the men a 54-57-60-cent wage scale no in- crease in fare has yet been given the traction interests. Final testimony in the petition for an increased fare was offered before Examiner H. M. Slater of the Public Utility Commission of Illinois at a hearing held in Moline, 111., on Aug. 6. Order Prevailed No violence occurred during the strike. Jitney bus lines sprang up like magic. Seventy-nine buses were given permits in Davenport and 150 in Rock Island and Moline. Factories organ- ized truck lines to carry workmen to and from industrial plants. Many merchants opened a half hour later Rapid Transit Company was prac- tically at a standstill. Some few ele- vated trains were operated, but very few surface cars were sent out. The contention of the company was to the effect that it had sufficient men, but that surface car operation had not been resumed to any extent because of inadequate police protection. This the police denied. They pointed in turn to the very limited service on the elevated, where by the very nature of the operation of the lines the maximum of protection was afforded. There is undoubtedly a considerable element of truth in both contentions, but it does remain a fact that such service as was operated was wholly inadequate to the transportation needs, even considering the hundreds of thousands transported by private auto, by bus and by truck, a service which sprang up overnight in startling manner. in the morning and closed a half hour earlier in the evening. There was no paralysis of business. The compara- tive compactness of the communities prevented this. The settlement of the strike by the granting of a 60-cent maximum scale marked a series of concessions by the Tri-City Railway. The full force of civic interests was brought to bear on the company at various times. Early in May the trainmen, then drawing a 40-cent maximum scale, filed notice of a demand for 62 cents an hour. They had been drawing 40 cents since the spring of 1918 when they were ad- vanced from a 33-cent scale by the company without petition. Nine-Hour Day Wanted The men asked for a nine-hour day and a year's contract, beginning June 1, 1919. The wage question was dis- cussed in the light of expected increases in fare, and an agreement was finally reached by which the men were given 50 cents an hour from June 1 to Aug. 1, with permission to open the wage question on Aug. 1 and the reservation that the scale would revert to 40 cents an hour on that date if the company were not granted a higher fare than 5 cents by the Illinois commission. Before these negotiations had begun the company had petitioned the Illinois commission for a 7-cent fare. Then the commission returned a de- cision turning the company down flat and holding the 5-cent fare to be fair and just. The men were notified that 40 cents an hour was all they could ex- pect after Aug. 1. They passed a strike vote, the walk-out to become effective on that date. Conferences between the men, the company and city officials were re- sumed. The company, offered first 50 cents, then 55 cents, then 56 cents. The car men in the meantime had raised Tri-City Railway Strike Settled Wage Dispute of Unusual Interest Because It Involved the Question of Fares August 16, 1919 Electric Railway Journal 353 their wage demands to 75 cents an hour. A joint conference of men, company and city officials was then held in Chi- cago and the company offered a 60-cent scale for ten months in Illinois and 60 cents for thirty days in Iowa to run the remaining nine months if at the expiration of thirty days the Councils of Davenport and Muscatine voted a 7-cent fare. The men turned this proposition down and walked out on Aug. 1. The City Council of Davenport then tied up the situation by passing a resolu- tion referring a fare increase to a special election. The company refused to accept this long-drawn-out possi- bility of a solution. Then came an all- night conference of trainmen, company heads and city officials in Moline on Aug. 5. Early the following morning a majority of the Council of Davenport agreed to give the company the same fare at Davenport as the Illinois com- mission may award. Then the company offered the 60-cent scale with no reser- vations. The men ratified the agree- ment almost unanimously. The Rock Island and Moline city au- thorities fought a fare increase before the commission hearing later in the day. The hearing was adjourned on the afternoon of Aug. 6. Muscatine is still fighting. The Muscatine city lines have been a losing proposition for the local traction system for many years. and through you to the members of the employers and the employees groups and to the other officials of the National War Labor Board, my sincere appreciation of the valuable and splendid .vork accom- plished. I feel that the work of the "War i>abor Board contributed in large measure toward the solution of the econoniic and industrial problems with which the gov- ernment was confronted during the world war." Therefore, be it resolved, that the board receives and accepts this letter of the Secretary of Labor as action by the Presi- dent dissolving this board, and that in ac- cord therewith the board does now adjourn sine die. During the fifteen months of its ex- istence the board has handled and ad- justed more than 1200 labor disputes. The board has been acting, at the spe- cial request of the President, during the period of reconstruction since the sign- ing of the armistice. War Labor Board Dissolved Since Armistice It Has Been Acting in Wage Disputes by Special Request of President The National War Labor Board, meeting in New York on Aug. 12, for- mally ended its existence after granting increases of 12 per cent in wages in ten different electric railway cases, affect- ing companies in territory extending from New England to the Pacific, and as far south as the Ohio River. Ex- President William H. Taft and Basil M. Prianly, joint chairmen, announced the adoption of a resolution which ter- minated the board's activities. The Eastern Massachusetts Street Railway, formerly the Bay State Street Railway, was one of the corporations ordered, on Aug. 12, to pay the increase. The question before the board was a proposed reopening of an award dated Dec. 3, 1918, in which 41 cents mini- mum and 45 cents maximum for motor- men and conductors was made by the board for the period of the war. In June the employees had the case re- opened and the company agreed to sub- m.it the question to the board. The high cost of living was given as the basis for this and all the other applications. The award dates back to June 3, and the employees will receive the increase as from that time. The awards in all cases were retroactive. Statement of Cases Settled Other cases decided were: Cleveland, Painesville & Eastern Railway and the Cleveland, Painesville & Ashtabula Railway, as of June 12. Cleveland & Chagrin Falls Railway and the Cleveland & Eastern Traction Company, as of June 12. Pittsburgh Railway, in the hands of a receiver, as of May 1. This case first will have to be submitted to the court in which the receivership is vested. Beaver Valley Traction Company and the Pittsburgh & Beaver Valley Street Railway, as of June 12. Portland Railway, Light & Power Company, Portland, Ore., as of June 25. East St. Louis, Columbus & Water- loo Railway, as of June 25. Alton, Granite & St. I;0uis Traction Company and East St. Louis & Sub- urban Railway, as of May 1. East St. Louis Railway and East St. Louis & Suburban Railway, as of May 1. The War Labor Board was created by an act of the President early in 1918. Since June 30 the board has been acting without compensation. After some correspondence with Secre- tary of Labor William B. Wilson it decided to dissolve, and a resolution to that effect was unanimously adopted on Aug. 12. The resolution read: Whereas, On June 25 the National War Labor Board adopted the following resolu- tion : Whereas, Members of the National War Labor Board, realizing that the great na- tional emergency which called the board into existence by Executive proclamation has practically terminated, th- puipo.^e of its organization has been substantially pei-- f ormed and no provision has been " made for its maintenance ; and Whereas. Until final dissolution of the board by Executive proclamation mem- bers of the board are ready at the ceU o" the President to take any action that may be necessary to carry out the purposes for wliich the board was created. The board, tlierefore. Resolves, That the secretary of the board give public notice that no new cases or applications will hereafter be received, and that when the board adjoai-ns during the present week it adjourns indefmitelv, subject only to the call of the chairjiiah, pending final dissolution of the board. It is f urthei- resolved that present con- troversies, jointly submitted, that cannot be considered and concluded prior to .Tune 30 shall be assigned to the joint chairmen or a section of the board for disposition. The board recommends that with the approval of the President all administra- tive duties in connection with any such cases, so far as may be, shall be" trans- ferred with all necessary formalities to the Department of Labor. The board further resoU'es that all rec- ords and files of the board be transferred to the Department of Labor, with the re- quest that they be separately stored so as to be convenient of access to all parties interested therein, as well as to the pub- lic, and the board takes this action assum- ing that the Department of Labor will retain for such time as may be necessary such members of the staff of tlie board as may be required in the administrative duties in connection with the business of the board. The secretary of the board is hereb-v- directed to do all things necessary and proper to carry into effect the foregoing resolution. And whereas the board is in receipt of a communication from the Secretary of La- bor on .July 7, 1919, in which it is stated: "As the activities of the National War Labor Board, which was created for thi' war emergency, practically terminated witli the close of the fiscal year, T want to take this opportunity of conyi'Ving to you, Wage Increase in New York The Interborough Rapid Transit Com- pany on Aug. 13 announced that it had granted an increase in wages of 10 per cent to its operating employees. Job E. Hedges, receiver for the New York Railways, on the same day recom- mended a similar increase to surface car employees in a letter to Federal Judge Mayer, who took the matter under advisement. The request for an increase was made to Vice-President Frank Hedley of the Interborough, by M. J. Mangan, pres- ident of the brotherhood of employees, v/hich is not affiliated with outside or- ganizations. The request on Receiver Hedges was made by the acting pres- dent of the organized employees. The Interborough Rapid Transit Company in a paid advertisement in the papers of Aug. 10 had said that Man- hattan and the Bronx were threatened '"with the same transit chaos that exists ir Brooklyn." It said that two things could be done by the public authorities tc prevent the interruption of subway and elevated service: 1. Immediately authorize an increase in the rate of fare to 8 cents so that wages may be readjusted to the cost of living. 2. Take vigorous and prompt action tc prevent disorder and the intimidation of loyal employees. The company said that its "employ- ees through collective bargaining are under contracts which last until the end of the year, and have declared their intention to live up to their agreements, but they should have more pay to meet the cost of living. We believe that this is the view of the fair and generous public." Complete Arbitration Award Presented The full report of the arbitration board which settled the recent strike on the Boston (Mass.) Elevated Rail- way was presented to a meeting of 2500 employees on July 31. In addition to the wage scale awarded platform men and published in the Electric Railway Journal of July 26, page 190, a full tabulation of the wage rates awarded so-called miscellaneous em- ployees was submitted. 354 Electric Railway Journal Vol. 54, No. 7 Des Moines Ca^e Threatening Court in Allowing Temporary Increase Calls Attention to Higher Fare Need Although demands and conditions are changing almost daily, Des Moines on Aug. 7 seemed to have secured a respite of at least thirty days in the threatened strike of the union em- ployees of the Des Moines City Rail- way. In an order of the court issued on Aug. 5 Judge Martin J. Wade, fed- eral judge, made a settlement which will at least be temporary and give the participants in the dispute time to work out a permanent adjustment. Judge Wade said: Under existing conditions the court has no power to tal First Next Three Nine There- Months Months after Springfield $3.76 $4.16 $4. .56 , ^Rate Per Houi ^ Worcester and other compa- nies $0.47 $0.52 JO.-'j? The wages of miscellaneous employ- ees of the company are to be advanced 32i per cent on all the roads covered by the award. The award was signed by Henry B. Endicott, chairman, and James H. Vahey, representing the employees. Bentley W. Warren, representative of the companies, declined to sign the award on the ground that the wage in- crease allowed the men is so great that he feared certain of the companies in- volved would not be able to meet it out of their present revenues, and that as representative of these companies he did not feel justified in agreeing to anything which would commit them to an increased expense which can be met only by imposing further burdens upon the public. Cost to One Road $750,000 a Year C. V. Wood, president of the Spring- field Street Railway, called the atten- tion of a representative of the Elec- tric Railway Journal to the fact that the new wage schedule would cost this road alone $750,000 a year more. In- creased revenue, he declared, is an ab- solute necessity. The Springfield Street Railway will apply to the Public Service Commission in the near future for permission to establish a new fare schedule. It may . be necessary to modify the present zone sytem to secure the necessary revenue. A curtailment of service by the com- pany may be necessary, also, on non- productive lines. August 16, 1919 Electric Railway Journal 355 Power Plant Contract Awarded The contract for a $15,000,000 power plant at Cheswick, Pa., on the Alle- gheny River, 15 miles above Pittsburgh, Pa., was let on Aug. 8, by the Duquesne Light Company, to Dwight P. Robinson & Company, New York. The primary purpose of the new plant is to insure an adequate supply of power to the steel industries in and around Pitts- burgh which are now beginning to de- velop a highly increased demand for electric current, but it is also intended to supply current for the operation of the Pittsburgh Railways. The Du- quesne Light Company is owned by the same interests that control the railway, and its decision to build the plant was prompted partly by the necessity of securing more steady current supplies for the traction system. It is expected that the new plant will be completed within a year. While the initial rating of the station will be 60,000 kw., the construction now under way is for 120,000 kw. and the ultimate rating of the plant will be 300,000 kw. The Cheswick plant is within a few miles of a coal mine owned by a sub- sidiary company, and fuel is trans- ported over a privately operated rail- road. Compromise Ends Muskogee Tie-up The board of arbitration which has been making an erfort to settle the strike that has tied up the lines of the Muskogee (Okla.) Traction Company for several months, has at last come to an understanding with the men. Under the terms of the agreement sub- mitted for ratification by the labor union and the company full seniority rights are granted to the members of the union. A wage scale is fixed from 36 cents to 40 cents an hour, the maxi- mum wage to be paid after four months. All strikers are reinstated in their old jobs. Non-union men em- ployed when the strike was called are to be retained. All differences except discharging employees for "knocking down" are to be settled by arbitration. The men are to be protected from the weather by properly equipped cars. The men went on strike on May 30. The findings of the board of arbitra- tion as handed down were in the nature of a compromise. I. T. S. Men Present Demands A committee representing trainmen of the Illinois Traction System waited upon C. F. Handshy, general manager, to present demands for a new wage scale and better working conditions. Re- cently, the trainmen voted to withdraw from membership in the Brotherhood of Interurban Trainmen and to become affiliated with the Amalgamated Asso- ciation. A demand for increases from 50 cents to 75 cents an hour for motormen and conductors and from 37i cents to 62 cents an hour and recognition of affiliation with the Amalgamated Asso- ciation was the substance of the inter- view with Mr. Handshy, who referred the men to H. E. Chubbuck, vice- president executive of the system at Peoria. The present wage conti'act with the men does not expire until Dec. 1. The trainmen assert that the in- creased cost of living makes it impos- sible for the men to live comfortably on wages which they now receive. No indication has been given as to when an answer to the demands might be expected from the officials. Boston Attacks Its Railway The city of Boston has filed amend- ment in the Supreme Court to the bill against State Treasurer Burrill and the trustees of the Boston Elevated Railway to prevent payment of $4,000,- 000 by the State to the trustees. In the amendment, the city attacks the constitutionality of the statute author- izing payment and seeks to prevent the city from being required to pay its proportion of the assessment to the State. The city claims that it is en- titled to hold and enjoy in its private or proprietary capacity its own prop- erty, all subways and tunnels con- structed for the use of the Boston Ele- vated Railway and receive the rents, in- come and profit of all now existing leases or contracts without interference by the Commonwealth, except on pay- ment of just compensation. It claims that the statute violates the constitu- tion in that it impairs its contracts and also that the statute contemplates the taking of property without due process of law. When the act was before the Senate, the judges of the Supreme Court sent an opinion upholding the constitution- ality of its provisions. Each of the seven judges signed that opinion. Now the city seeks to have the court reverse its own opinion. Urbana-Champaign Strike Settled The strike of trainmen of the Ur- bana & Champaign Railway, Gas & Electric Company, included in the Illi- nois Traction System, came to an end on Aug. 8 after five weeks duration. Full normal service was established the morning of Aug. 7. During the five weeks only about one-half the usual number of cars was operated, the union men refusing to work. Members of the local brotherhood manned the cars. The striking employees, who are members of the Amalgamated Association, have been reinstated in their seniority rights and all men returned to their respective positions with the company. The ques- tions of hours and reinstatement of discharged employees, the grievances which brought about the strike, were compromised in a manner satisfactory both to the men and the company. A new wage scale was agreed to which provides for an increase in the rate per hour to be paid to both conductors and motormen after Jan. 1, 1920. This carries with it a maximum of 45 cents an hour, the same rate as that paid by the Bloomington & Normal Railway & Light Company, another subsidiary of the Illinois Traction System. The Urbana & Champaign Company em- ployees have been receiving a wage of 42 cents an hour since Sept. 1, 1918. Otherwise, working conditions con- tained in the contract under which they were employed when the men left their places remain unchanged and the re- vised contract is extended over the un- expired term of the old contract. The company also announces that the same working conditions and wage scale agreed to with the Amalgamated As- sociation will apply for members of the Brotherhood. Holyoke Wage Increase Henry B. Endicott, Boston, arbitrator ;n the wage negotiations between the employees of the Holyoke Street Rail- way and the company, has awarded the following rates of pay to motormen and conductors: First six months, 49 cents an hour; second six months, 50 cents; second year, 51 cents; third year, 53 cents; thereafter, 55 cents. An increase is also recommended for miscellaneous employees. The award also covers rates of pay from Oct. 1, 1918, to June 1, 1919, and specifies from 37 cents an hour for the first six months to a maxi- mum of 43 cents for three-year men and over. The men at Holyoke asked for a wage of $5 a day. Berkshire Strike Unsettled About 400 employees of the Berkshire Street Railway, Pittsfield, Mass., quit work on Aug. 8 owing to the failure of the company to increase their wages as demanded to $5 for an eight-hour day. The entire system continues tied up from the New York-Vermont line to the Massachusetts-Connecticut boun- dary. The power plants of the com- pany at' Zylonite and Pittsfield have been shut down. It is expected that a receivership will be sought by the com- pany. Chairman Charles G. Wood of the State Board of Conciliation and Ar- bitration, spent three days in Pittsfield soon after the strike was declared in an unsuccessful attempt to bring about a resumption of service. Manufacturing- industries in the Housatonic Valley are hard hit by the suspension of service. The company's finances are in a pre- carious condition. New St. Louis Manager Addresses Men Col. Albert T. Perkins, general man- ager of the United Railways, St. Louis, Mo., held an informal conference dur- ing the week ended July 19 with divi- sion superintendents, supervisors and foremen of the company, soon after he took charge of the company manage- ment. More than 100 officers and em- ployees of the company were present at the meeting. Colonel Perkins was introduced by 356 Electric Railway Journal Vol. 54, No. 7 Butler, acting superintendent of trans- portation. He discussed matters con- cerning the men and the company. Col. Perkins urged the men to insist on co-operation in their departments and declared the one essential for the future success of the company is to give the best possible service to the public. He emphasized courtesy and safety-first methods. Colonel Perkins has stated as the in- itial plank of his platform a complete and amicable understanding with the employees of the company. He says he is ready and willing to listen to all de- mands of the carmen and will go as far as possible to see that all receive a living wage. A demand of the local branch of the union for increased wages is before the Missouri Public Service Commission, and both sides have agreed to abide by its decision. News Notes Strike in Olean. — About 150 em- ployees of the Western New York & Pennsylvania Traction Company, Olean, N. Y., went on strike early on Aug. 12, resulting in a complete tie-up of the system. The men demanded recogni- tion of the union and increased wages. Will Arbitrate Discharge Cases. — Arbitrators have been chosen to hear the cases of the twenty-six conductors of the United Railways, St. Louis, Mo., accused of misappropriation of fares and then discharged. The arbitrators were named after officials of the local union demanded a hearing for the men. Rolla Wells, receiver of the company, assented. Wage Increase in Harrisburg. — The Harrisburg, (Pa.) Railways, has in- creased the wages of its motormen and conductors 3 cents an hour. The vol- untary wage increase is effective from Aug. 15. Under the new wage scale, first-year men, now receiving 40 cents an hour, will get 43 cents; second-year men receiving 41 cents will get 44 cents and third-year men receiving 42 cents will get 45 cents. Wage Increase in Homestead. — A flat advance in wages of 10 cents an hour has been made to all employees of the Homestead & Mifflin Street Railway, Homestead, Pa., under a plan an- nounced by the company. The wages of the conductors and motormen at present are 48 cents an hour for the first three months and 50 cents an hour thereafter. The increase is the fourth in two years. Chicago Suburban Strike Settled. — Employees of the Chicago & Joliet Electric Railway on Aug. 13 voted 184 to 6 to return to work. This followed a conference held with Robert Osborne of the State Industrial Board. A com- promise offer providing for a 12 to 14- cent increase was made to the men and accepted. Employees of the Aurora, Elgin & Chicago Railway were still out on Aug. 14. No service has been given on that road since July 13. Since the strike began the company has gone into the hands of a receiver. Minneapolis Franchise Before Coun- cil. — It was announced that the amended franchise for the Minneapolis, (Minn.) Street Railway would go be- fore the Council on Aug. 15 for first reading. Horace Lowry, president ot the company, has formally waived any claim to guarantee by the city of the 7 per cent return on the value agreed to in the proposed cost-of-service fran- chise, nor will the company try to col- lect from the city the deficiency if any exists. Purchase periods will be yearly in the franchise as it is to be submitted to the Council by the committee after daily hearings for some time. British Investments in Argentina. — Referring to news reports alleging fric- tion between Great Britain and Argen- tma due to e.xtensive English invest- ments in the latter country, the Nation- al Bank of Commerce, New York, N. Y., says that $2,000,000,000 has been considered a conservative estimate of the amount of such investments. The bank says that it is knovra that British capital in railways alone amounts to $1,138,756,484. This represents about ten times the railway investments of any other foreign country in the Argen- tine. The amount of British money in- vested in the tramways alone is $133,- 434,262. Decides Against City in Jitney Case. — Supreme Court Justice Swayze has set aside a resolution of the City Com- mission of Jersey City, N. J., for a day fare of 5 cents and 10-cent night fare on jitneys on Bergen Avenue, Jer- sey City, from the Summit station of the Hudson & Manhattan Railroad to Seaview Avenue and the old Bergen road. The decision of the court indi- cated, however, that the situation might be different if the City Commis- sion had fi.xed the 5-cent fare by ordi- nance. In consequence the Corpora- tion Counsel promptly arranged to in- troduce an ordinance fixing the fare on Bergen Avenue at 5 cents. Guelph Employees Request Wage Increase. — A deputation from the Guelph (Can.) Municipal Railway em- ployees waited on Alderman Westoby, chairman of the railway and manufac- turers' committee of the Council, and asked for an increase in wages and shorter hours of work at once. The men are at present receiving 32 cents an hour and working up to as much as seventy hours a week. They now want 44 cents an hour for first three months and 47 cents thereafter, with time and a half for all time over eight hours. Alderman Westoby infoimied the men that the matter would come up soon before the Council. Legislative Committee Against M. O. Measure. — The committee on municipal government of the House of the Georgia Legislature has reported against the measure introduced in the Legislature at the request of City Council of Atlanta under which the city of Atlanta would have been authorized to condemn the properties of the Georgia Railway & Power Com- pany in order to acquire them for municipal ownership and operation. Mayor Key and City Attorney James L. Mayson were the only speakers who appeared in behalf of the measure. Those who opposed it included H. M. Atkinson, chairman of the board of di- rectors, and P. S. Arkwright, president, representing the Georgia Railway & Power Company, and others, among them many representatives of Georgia cities. Wages Before Twin City Directors. — A special meeting of the directors of the Twin City Rapid Transit Com- pany, Minneapolis, Minn., will consider a request made by representatives of the trainmen on Aug. 8 for an increase in wages. Although Horace Lowry, president of the company, said no spe- cific rate of wages had been made in the request, the men left it to Mr. Lowry's judgment for determination on a "live-and-let-live" basis. Trainmen say they want a maximum of 55 cents and a minimum of $4 a day for extra men. The scale now is 40 cents for beginners, 4S for men less than a year in the em- ploy and 45 cents for trainmen in the employ more than a year. The last in- crease, at the time of the strike last winter, was from 35, 38 and 40 cents. Wage Scale Discussed at Covington. — The South Covington & Cincinnati Street Railway and the local union are negotiating for an adjustment of a wage scale for another year. The old agreement expired on Aug. 1. The con- ductors and motormen are seeking the same rate of pay as that received by similar employees of the Cincinnati Traction Company, which is 50 cents an hour. Last year the wage rate was increased from 30 cents to 48 cents an hour, the present scale. The company complied with the request of the War Labor Board in advancing the wages, and holds this fact as an argument to increase the rate of fare. There is an understanding between the men and the company that in the event higher fares are granted the men will be the first to receive the benefit. Atlantic City Men Present Demands. — The employees of the Atlantic City & Shore Railroad, Atlantic City, N. J., have petitioned A. J. Purinton, re- ceiver for the company, for substantial increases in their wages and a closed shop. The company has until Aug. 25 to sign the new aggreement, the con- tract becoming operative on Sept. 1. Among the concessions demanded are that all employees join the local three days after employment and that no employee shall be discharged without a hearing. Should a discharged em- ployee be reinstated he is to be paid full time for the period lost. The men ask that the schedule of a day's work shall conform as nearly as possible to an eight-hour day and not in any case to exceed ten consecutive hours. It is also demanded that time a half be paid for all overtime work. August 16, 1919 Electric Railway Journal 357 Financial and Corporate Changes in Holding Company Properties Under Control of General Gas & Electric Company Are Realigned by Owners Arrangements have been made for the acquisition by the New England Gas & Electric Company, New York, N. Y., of the Pennsylvania and New England properties formerly owned by the Eastern Power & Light Corpora- tion. This acquisition is a result of plans worked out by the General Gas & Electric Company interests with the various protective committees of the Eastern Power & Light Corporation. They do not include, however, the West Virginia Traction & Electric Company, one of the former Eastern Power & Light Corporation subsidiaries which has just been placed in receiver's hands. New England Properties Grouped The New England properties of the Eastern Power & Light Corporation are to be combined with certain of the properties in New England now owned by the General Gas & Electric Com- pany, making a strong power company which will make additional water power developments in Vermont and New Hampshire. Securities of this new company, to be known as the Vermont Hydro-Electric Corporation, have been underwritten by Boston banking houses and application has been made to the State Public Service Commissions of Vermont and New Hampshire for the necessary authority to complete the organization of the company. The General Gas & Electric Com- pany will acquire the $3,000,000 com- mon stock of the Metropolitan Edison Company, and will acquire $3,100,000 common stock and $1,300,000 of 6 per cent preferred stock of the Reading Transit & Light Company. The ac- quisition of the common stock of the Metropolitan Edison Company, which owns all the common stock of the Penn- sylvania Utilities Company, a former subsidiary of the General Gas & Elec- tric Company, will give the General Gas & Electric Company control of a very important power system in Penn- sylvania with combined annual gross earnings of almost $4,000,000. Interconnected Power Supply The power plants at Easton and Read- ing are to be connected with a power line which will be extended also to con- nect with the Dover plant of the New Jersey Power & Light Company. With these extensions completed, the power system controlled by the General Gas & Electric Company will extend from just east of Harrisburg up to the sys- tem of the Public Service Corporation of New Jersey with another line ex- tending almost as far as Philadelphia. Combined gross earnings of all com- panies to be controlled by the General Gas & Electric Company after this ac- quisition for twelve months ended May 31, 1919, were $8,478,142. Combined operating income for the twelve months ended May 31, 1919, was $2,361,789, an increase of more than $712,000 over the twelve months preceding. More than 67 per cent of the gross earnings of the General Gas & Electric Company's subsidiaries are from elec- tric light and power and gas. The directors of the General Gas & Electric Company are to be increased in number to permit of the representa- tion of additional banking interests which have become identified with the company in this transaction. $193,721 Short of Expenses Under Six-Cent Fare Col. Albert T. Perkins, general man- ager of the United Railways, St. Louis, Mo., has issued a chart captioned "Where the 6-Cent Fare Goes." He will submit the chart to members of the Public Service Commission of Mis- souri, in session in St. Louis. The chart shows that revenue fell $193,721 short of paying operating expenses and fixed charges of the company for the twelve months ended June 30, first year of operation under the 6-cent fare. The statement lists the receipts and expenses as follows: Gross operating revenue, $14,811,876 ; wages, $6,011,359; material and sup- plies, $3,367,111; taxes, $1,146,246; injuries and damages, $888,712; other operating expenses, $983,499; interest charges, $2,608,669; total expenses, $15,005,597; deficit, $193,721. This statement does not include back wages of $233,212 paid in July and August for the months of April and May of last year. The percentage chart lists expendi- tures of revenue as follows: Wages, 40.59 per cent; material and supplies, 22.73 per cent; taxes, 7.74 per cent; injuries and damages, 6 per cent; other operating expenses, 6.64 per cent; interest charges, 17.61 per cent; deficit, 1.31 per cent. Interest charges amounted really to 17.61 per cent of the gross revenue, but only 16.30 per cent was available. No dividends were paid. The item of $983,499 for "other oper- ating expenses" includes $750,312 for reserve depreciation and represents the difference between the amount set up for depreciation and the amount actually expended in material and wages for replacements. This reserve is intended to take care of the daily depreciation of cars, tracks and other equipment. Disagree on Valuation I>oard Which Has Been Inquiring Into Pittsburgh Case Will Report Soon Three separate opinions, each reflect- ing the views peculiar to the interests from which it sprang, will probably be the outcome of the effort to arrive at an equitable valuation of the proper- ties of the Pittsburgh (Pa.) Railways. For almost a year and a half the in- vestigation had been going on, under the direction of the State Public Service Commission. Findings Already Filed The findings of the board were filed at the State Capitol at Harrisburg the first week of August. Nothing was made public by the commission as to the nature of the information ten- dered it by the valuation board, but reports from Harrisburg indicate a variance of opinion in the board. The members of the board, it is said, are unanimous as to the value of the tangible assets of the company, but fail to agree on what elements should be included in the valuation in respect of such things as franchises. There is also a lack of unity as to the return security holders should be allowed to earn upon their investments. It is largely upon the basis of the latter that the commission is expected to make its recommendation as to a fair rate of fare, and the whole valuation investiga- tion was designed primarily to deter- mine that, once and for all. The reports from Harrisburg say there will be one report by the two engineers representing the company, another by the engineers placed on the board to protect the interests of the city of Pittsburgh and the contiguous boroughs, and a third report by the repi'esentative of the Public Service Commission, who is the fifth and last man on the board. This division of opinion puts the final decision upon the Public Service Com- mission. That body is to meet in Pitts- burgh on Aug. 20 to receive the report of the board formally and to make pub- lic the engineers' views. At that time the commission will also hear the com- plaint of the city of Pittsburgh and the boroughs on the new fares — 7* cents when paid by tickets and 10 cents in cash — effective on Aug. 1. Valuation Cost $600,000 The valuation work in Pittsburgh is estimated to have cost about $600,000. The city and the boroughs assume one- third of the cost. The valuation board was composed of Dr. F. Herbert Snow, chief of the bu- reau of engineering of the Public Serv- ice Commission; J. A. Emery, New York, and Morris Knowles, Pittsburgh, representing the Pittsburgh Railways and the Philadelphia Company (the holding company), and Robert M. Feus- tel. Fort Wayne, Ind., and George W. Fuller, Boston, representing the mu- nicipalities. 358 Electric Railway Journal Vol. 54, No. 7 Results at Montgomery For Second Time the Receiver There Reviews Conditions on Property Intrusted to Him Ray Rushton, receiver of the Mont- gomery Light & Traction Company, Montgomery, Ala., has reported to Judge Henry D. Clayton of the United States District Court for the Middle District of Alabama with lespect to the affairs of the company. He recommends that the property of the railway be put in the very best condition; that the fare be increased to 7 cents ; that the wages of the em- ployees be increased, and that the re- •eivership be continued until the end of 1920. Income Must Be Increased Notwithstanding the breaking up of the various military camps the receipts of the company are in excess of receipts for any corresponding months of pre- war years, according to the report. While the railway has earned a little more than enough to pay operating ex- penses it has not earned enough to take care of the expensive improvements. No hope is entertained by the re- ceiver of selling the railway for any- thing like enough to pay its indebted- ness in the near future. Therefore, it is recommended that the receivership be continued until the end of 1920. According to Mr. Rushton, the in- come of the railway must be increased in order to meet the increased cost of material and labor. With this end in view, the receiver states that he ex- pects to discontinue a few lines and give a better schedule on other lines in order that each car may carry more passengers per mile. Seven-Cent Fare Asked The report recommends that the re- ceiver be authorized to increase the fare to 7 cents, anu later, if necessary, even to 8 cents. It further recommends that the wages of employees be in- creased from 35 to 40 cents an hour and the working hours of the men be reduced to nine hours a day. Mr. Rushton asks that he be per- mitted to purchase ten additional safety cars and such other material as may be found necessary. This is the second report to be made to the court by Mr. Rushton since his appointment. The first was made in February, 1919. It was reviewed very briefly in the ELECTRIC Railway Jour- nal for Feb. 22, page 382. Memphis Appraisers Confer Ross W. Harris, expert for the city of Memphis, Tenn., in connection with the proposed appraisal of the property of the Memphis Street Railway, has arrived in Memphis to meet the en- gineers appointed by the State Public Utility Commission and the receivers of the Memphis Street Railway, for a preliminary conference. Albert S. Richey, Worcester, Mass., is also in Memphis. He was named by the State Commission as its appraiser. J. H. Perkins, New York, named by the re- ceivers of the railway, was expected to arrive from New Orleans in a few days. The three experts will make a physical valuation of the Memphis properties to assist the commission in a final determination of the rate con- troversy. The appraisers have four months for the work and may make a joint or separate report. Receiver for West Virginia Company At the request of the creditors of the West Virginia Traction & Electric Com- pany, Wheeling, W. Va., Judge Dayton of the United States District Court, for the Northern District of West Vir- ginia, on Aug. 4 appointed J. D. Whit- temore equity receiver for the company to conserve its assets for the benefit of all concerned. Up to the time of his appointment as receiver Mr. Whitte- more was general manager of the com- pany's property, in active charge of operation. A large proportion of the total in- ccme of the company is derived from traction lines and these lines have suf- fered from war conditions. The high operating cost, due to increased wages to employees and the constantly ad- vancing cost of materials and supplies, in comparison with the increases in rates of fares which the company was able to obtain, has been a principal factor in the inability of the company to meet its obligations. The officials of the company do not feel that it is possible, at the present time, to make any statement as to pos- sible future plans for the adjustment of the company's affairs. A protective committee representing the bond secured notes which matured on May 1, 1919, has issued a prelim- inary plan of reorganization and in the statement accompanying it the committee says it feels encouraged as a result of its investigation of the property. Accordingly the committee purposes : 1. To buy In the collateral for the notes (unless outbid by an outside purchaser) at the foreclosure sale which it is expected \s-ili take place in about a month. The se- curities pledged consist of $2,500,000 of the company's twenty-five-year gold bonds of 1917 out of a total of $2,584,000 of such bonds now outstanding. 2. Also similarily to buy at foreclosure of the bond mortgage the premises, or such portions thereof as the committee may dtem desirable, in case they are not pur- chased by outside parties. 3. Organize a new company to acquire the purchased properties from the com- mittee in exchange for the securities of a new company, of which securities those senior in lien would be exchanged for bonds represented by the committee. 4. It will be the policy of the committee to co-operate with the other claimholders and the stocklnolders, so far as may be consistent with the superior interests and lien represented by the committee. 5. To obtain any cash necessary for the acquisition of the pledged bonds and the property securing the same, by pledging therefor the notes and bonds now or here- after held by it Later the committee will announce such amendments or extensions of this plan as may seem to it to be necessary. New York Traction Report Engineers Report to Holding Company on Needs of Rapid Transit and Surface Lines In a preliminary report of their ex- amination of the subway and elevated lines of the Interborough Rapid Transit Company, New York, N. Y., made to the chairman of the protective committee representing the holders of the 4J per cent collateral trust bonds of the Inter- borough-Metropolitan Company. Stone & Webster state that nothing short of an 8-cent fare on both the elevated and subway lines will provide for fixed charges and the payments to the city and the company contemplated by the contracts between them. The Inter- borough-Metropolitan Company is the holding company for the subway and elevated lines and some of the surface roads. Stone & Webster explain that they have not completed their examination of the surface lines of the New York Railways, but state that their exami- nation has progressed far enough to enable them to ascertain that during the last year the company has been earning nothing toward interest on its first real estate and refunding bonds after paying underlying charges and rentals. In the judgment of Stone & Webster, the lines cannot earn their fixed charges certainly for many years to come unless there is a substantial increase in the rate of fare. The engineers say that in their opin- ion the recent granting by the Public Service Commission of the charge for transfers will not yield sufficient addi- tional revenue materially to improve the security for the 4J per cent Inter- borough-Metropolitan bonds. The in- vestigation of Stone & Webster was made in co-operation with Price, Wa- terhouse & Company, certified public accountants. Of the general traction situation the engineers say: AVe find that the management of Inter- borough Rapid Transit Company is able and efficient. The condition of the proper- ties is excellent. They have been thor- oughly maintained and are in first-class operating condition, and there is practically no deferred maintenance. We should point out that while expenditures for current maintenance seem to be adequate, the re- serves for depreciation and obsolescence heretofore accumulated have been ex- hausted, and no reserves for that account are being made and none are provided for in the estimates of earnings given below. To enable it adequately to serve its ter- ritory and attain the estimated earnings, we believe it will be necessary for the com- pany to make additional expenditures for capital purposes, chiefly equipment, amount- ing to approximately $7,400,000 during the next five years. This may be reduced, pos- sibly about $3,000,000, by savings from the construction fund. It is manifest that a 5-cent fare falls far short of providing the cost of furnish- ing a ride, and that a considerable increase in fares is necessary to provide for fixed charges and the payments to the city and the company contemplated by the contracts between them. In our opinion, nothing short of an 8-cent fare on both elevated and subway lines will accomplish this pur- pose. The financial condition of this company is not unique. Traction properties through- out the country are faced by similar con- ditions, due to the great increase in the cost of labor and material as the result of the war. August 16, 1919 Electric Railway Journal 359 Appeals to Commission for Financial Aid The Santa Barbara & Suburban Railway, Santa Barbara, Cal., declares, in an application filed with the Rail- road Commission, that it has long been sustaining a very heavy financial loss. It asks the commission to investigate the financial affairs of the company and determine what should be done to enable the company to pay legitimate operating expenses without increasing the fare or lowering the standard of service. Figures submitted by the company show that in 1914 the railway ran be- hind $28,034. In 1915 the loss was $27,132; 1916, $38,149; 1917, $29,618; 1918, $50,626. Four months of the pres- ent year show a total loss of $8,759. The company, which operates buses and street cars, shows that in 1914 the cars carried 1,567,332 passengers. In 1918 it carried 1,471,063 car passengers and 368,194 bus passengers. The operating expense in 1914 was $63,681. In 1918 it was $107,531. It is asserted by the coinpany that in the last two years wages have in- creased 40 per cent and the cost of materials from 50 to 200 per cent. The petition says: The company desires so to operate its system, if possible, that it will be unnec- essary, in order to pay legitimate operating- charges, to increase the existing rate of fare or lower the standard of service. The company is uncertain whether such a resulv can be attained. It is willing to co-operate in making the attempt. Certain economies in operation will be necessary. The com- pany desires the benefit of such advice and recommendation as the Railroad Commis- sion may give after a careful investigation and study by the commission. 12 Per Cent Revenue Increase in Memphis The extra cent in fare is adding only 12 per cent to the revenue of the Mem- phis (Tenn.) Street Railway, accord- ing to the quarterly report of the cor- poration lately prepared. If as many persons had ridden on the cars at 6 cents as did at 5 cents, the increase in revenue would of course have been 20 per cent. In general, however, it may be said the public is returning to the cars again. In the nature of things, autumn travel is heavier than the sum- mer travel in Memphis, and a constant improvement in passenger movement is looked for as the summer wanes. The receivers soon must make a new working contract with the employees, but it is believed a settlement will be made without friction, as all confer- ences held thus far have been very friendly. Frank S. Elgin, one of the receivers, would make no prediction as to the probable wage under the new contract. T. H. Tutwiler, the other receiver, has been out of the city for several weeks, but is expected to return soon. City Attorney Livingston seems to think that when the fare hearing is resumed in November by the Public Utilities Commission it can be shown that the need no longer exists for the continuation of the 6-cent fare. Financial News Notes Receiver for Chicago Interurban. — Federal Judge Evans on Aug. 9 ap- pointed Joseph K. Choate receiver for the Aurora, Elgin & Chicago Railway, Wheaton, 111., on petition of the credi- tors whose claims are said to aggre- gate $50,000. The principal creditor named in the petition is the General Electric Company with a claim of $3,215. Receivership Is Denied. — Judge Wag- ner at Reading, Pa., handed down an opinion on Aug. 11 in which he refuses to grant the petition of John H. Pass- more, Philadelphia, and other stock- holders of the Kutztown & Fleetwood Street Railway for a receiver for the Allentown & Reading Traction Com- pany, of which the Kutztown & Fleet- wood Street Railway is a subsidiary. Will Sell Mississippi Road. — George P. Money, special commissioner ap- pointed by the Federal Court on July 2 to sell the properties of the Pasca- goula Street Railway & Power Com- pany, Pascagoula, Miss., in the mort- gage foreclosure suit of the Columbia Finance & Trust Company, has fixed Aug. 18 as the day upon which he will make the sale in front of the court- house at Pascagoula. Receiver's Certificate Formally Au- thorized — Federal Judge Mayer at New York on Aug. 12 signed a decree author- izing Lindley M. Garrison, receiver of the Brooklyn Rapid Transit Company,, to sell $18,000,000 of receiver's certifi- cates at 95. The decree provides that they shall be dated Aug. 1, 1919, and shall mature in two years. The pro- ceeds are to be used for the completion of the rapid transit lines. Receiver Sells $2,300,000 of Certifi- cates.— Rolla Wells, receiver of the United Railways, St. Louis, Mo., an- nounced on Aug. 4 that a syndicate of St. Louis bankers had purchased the issue of $2,300,000 of receiver's cer- tificates recently authorized by Special Master Lamm. This issue will enable the receiver to take up the loan of that amount made fourteen months ago by the War Finance Corporation. The cer- tificates will bear interest at 6 per cent and will mature in one year. Plan to Discontinue Reported. — The V- termining the value of the property used in the public service. The question of the power of the com- mission to entei'tain this application was considered in a previous case and the de- cision was adverse to the contention of the city. We adhere to the conclusions there announced and overrule the motion for a dismissal of the proceedings for want of jurisdiction. We think that the applicants have made a case which entitles them to an order allowing changes in rates without requir- ing the thirty days notice specified in Sec- tion 36 of the public utilities act. In regard to the Chicago Surface Lines, the commission stated that at the time of the previous petition of the company for relief the commission found that the requirements of reason- able return upon the fair value of the property of the company actually used in the public service would be satisfied if the net earnings of the properties reached the sum of $8,600,000. The evidence presented before the commis- sion showed that the net earnings for the twelve-month period ended July 31, 1919, were approximately $8,200,000. The companies have therefore fallen about $400,000 short of the amount to which the commission found they were entitled. It was estimated that to this must be added approximately $7,800,000 in- creased expenses due to the wage ad- vance, and at least another $1,000,000 due to the enhanced cost of materials and supplies for maintenance, to prob- able increased taxes, and to the loss sustained by the companies during the recent strike. The commission said, further: The present rates of fare now charged by the petitioners are insufficient, and the rates hereinafter authorized are just and reasonable rates and are no more than are necessary to enable the company to earn a fair return upon the fair value of their property actually employed in the public service. The following rates of fares on the surface lines were then authorized : For a continuous trip in one general direc- tion within the present or future limits of the city of Chicago over the street railways operated by the Chicago Railways Com- pany, Chicago City Railway, Calumet & South Chicago Railway and the Southern Street Railway, operating under the desig- nation of Chicago Surface Lines, a sum of 7 cents for each passenger twelve years of age or over and 4 cents for each pas- senger under twelve years of age : Pro- vided that children under seven years of age accompanied by a person paying fare, shall be permitted to ride free. The pro- visions as to transfers as they now exist shall continue until the further order of the commission. In referring to the Elevated Lines, the commission said: Petitioners have shown good cause for allowing increases in their rates of fare without requiring the thirty days notice provided in Section 6 of the public utilities act. The operating expenses of the peti- tioners have been largely increased by ad- vances in wages which are now effective and by increased cost of supplies and ma- terials and they will be unable to obtain money witli which to operate their lines unless prompt relief is granted. The annual increase in operating expenses due to advanced wages and other causes shown by the evidence will amount to more than $2,400,000. The rates of fare at present charged by the petitioners are insuf- ficient, and the rates Iiereinafter autliorized are just and reasonable rates and ai-e no more than are necessary to enable the companies to earn a fair return upon the fair value of their property actually em- ployed in the public service. The commission then authorized the following rates on the Elevated Lines : Adult fare between all points upon the lines of the several companies, namely, the Metropolitan West Side Elevated Railway, Northwestern Elevated Railway, South Side Elevated Railroad, and Chicago & Oak Park Elevated Railroad, where a 6 -cent fare is now cliarged shall be 8 cents ; foi' that portion of the Northwestern Elevated Railroad north of Howard Street, 6 cents. The above fares from points north of How- ard Street to points in the city of Chicago shall be the sum of the two rates above mentioned. Unless otherwise ordered by the com- mission the rates will be effective until and not after Feb. 1, 1920, but the com- mission reserves the right to extend the effective period of the rates beyond Feb. 1, 1920, or to order the discontinuance of the rates at any time prior to that date. The commission also retains jurisdic- tion of the cases and reserves the right to investigate the rates authorized or the service rendered, make further find- ings and issue such further orders as may be justified by the facts deter- mined at subsequent hearings as to the rates for railway service furnished by both the elevated and surface lines in the city of Chicago. The application for hearing and in- vestigation for the determination of the value of the property of both companies, and the establishment of permanent rates, was granted. The appeal of the Chicago Surface Lines, in this connec- tion, is set for hearing on Sept. 8, and that of the Chicago Elevated Railways for hearing on Sept. 17. Mayor Thompson immediately an- nounced that he would "fight to the last ditch" the increase in fares. He char- acterizes the award of the commission as a "vicious public hold-up," and states that the fares are the result of a "long contemplated and adroitly executed plan of the traction bosses." Last re- ports were that an application for a writ suspending the order of the Public Utilities Commission pending the city's appeal of the order was to be made in the near future to the Sangamon County Circuit Court. This announce- ment was made in the form of a letter to the clerk of the court. The court is not now in session, but is expected to convene on Sept. 2. Seeks to Correct Abuse of Transfers The Kansas City (Mo.) Railways has saved around $200 a day during the past few weeks, through a change in its method of handling transfers. A new transfer put out by the company several months ago had been seriously abused. A passenger giving a transfer and wishing to use still another car on his trip, received a second transfer — and with this second transfer, was frequently able to double back to a point near the origin of his trip. The company's order that the original transfer should be punched, and no new transfer given, has prevented the doub- ling back; and has also eliminated the practice of overstaying a reasonable time, since the time limit is punched on such original transfer, and there is no chance for a passenger to get a new transfer with later hour punched, or no hour punched. The company has saved many dol- lars by the simple process of abolish- ing the transfer privilege at the Union Station. Hundreds of transfers were exchanged or given away — many sold for 1 or 2 cents apiece — at the Union Station, the traffic having developed for the benefit of passengers leaving town, or arriving, or going to and from work in the station district. The greatest abuse of the assumed stop- over privilege existed at the Union Station transfer point. The company will soon issue a new transfer, with two coupons for each retransfer, and passengers may there- fore ride on only two lines in addition to the one on which the trip was begun. The City Council has passed an or- dinance which if enforced will mate- rially assist the Kansas City Railways in combating the abuse of transfer privileges. This measure carefully pre- scribes the conditions under which transfers shall be used, provides against traffic in transfers by barter or exchange, and fixes a penalty of not less than $1, nor more than $100 for violation of any provision of the ordi- nance. 362 Electric Railway Journal Vol. 54, No. 7 Omaha Charging Seven Cents Fares were advanced from 5 cents to 7 cents, on Aug. 10, on the lines of the Omaha & Council Bluffs Street Rail- way, Omaha, Neb., following confer- ences between officers of the company, a committee of the carmen's union and city officials. Three weeks ago the union made a demand upon the company for an in- crease from the then existing scale of 41 cents to 45 cents an hour, to 6.5- 75 cents. That demand was reduced to a maximum of 60 cents, and the final compromise was effected on the basis of a maximum of 55 cents. It is agreed that the matter may be reopened by the carmen ninety days from the date of the establishment of the 7-cent fare. The new rate of fai'e carries with it the sale of four tickets for 25 cents, 3-cent tickets for children five to twelve years of age, and 5-cent tickets for school children. The company has in- stalled a new type of pay-as-you-enter fare boxes which receive and register pennies. The company applied last year to the State Railway Commission for a 7-cent rate. The commission denied the ap- plication, whereupon the company ap- pealed to the State Supreme Court of Nebraska, which in a recent decision (Electric Railway Journal for July 26, page 199) directed the commission to order an increase of rates. The commission during the week ended Aug. 9, issued such an order. Representa- tives of the city and the company sent a stipulation, waiving the right of a lehearing before the Supreme Court. In the temporary settlement of this controversy the men agreed to waive their demand for a "closed shop" and recognition of their union. A Muss in Muskegon The man who put the "mus" in Mus- kegon, Mich., builded better than he knew. No other word in the English language, perhaps, so fittingly describes the condition in which that city finds itself. Muskegon is in an awful muss. There was an electric railway in Mus- kegon, but there isn't any more. Muskegon kicked when it had service and now it kicks that it hasn't any service. As a matter of fact, Muskegon destroyed the service as a protest against a 7-cent fare and now, like all iconoclasts, having deliberately set about destruction, stands aghast amid the ruin that has followed. The local railway at Muskegon, like other roads in other cities, needed more revenue. Unlike some others, however, it was unhampered by franchise provi- sions limiting the fare. Its frachise expired several years ago and has not been renewed. On Aug. 1 the company annuonced an increase in fare from 6 cents to 7 cents. This become a signal for a warm, if not gleeful, response on the part of the public, punctuated by riot and disorder. Now the cars of the railway in Mus- kegon are in the carhouse, there to re- main until the town has returned to its sober senses. There is some evidence even now that common sense will again prevail, but until it does there will be nothing doing on railway service. On this the owners of the property, the American Light & Traction Company, are determined. This is the price that Muskegon is paying for mob rule. Yes! mob rule. Just because it was disgruntled at a change in fares the hoodlum element in Muskegon rose up and not satisfied with orderly protest took things into its own hands and battered and banged the cars until they limped back to the carhouse, mere shadows of their former selves. In consequence service has been entirely suspended and the prospects are that the city itself may have to reimburse the company for damage done to railway property. Muskegon had a gala moment during the destruc- tion. Now it has fallen upon sober days, with plenty of time to think things over while it walks to and from work. Zones the Service, Not the Fares The Kansas City (Mo.) Railways is installing short-line schedules, with cars serving congested and business districts turning back at convenient in- termediate points on the lines, and stub lines operating to sei-ve the more thin- ly-settled suburban districts. Two of these readjustments have been made, and others will follow. While the outer and inner terminals of the readjusted routes have no direct relation with jitney routes as estab- lished by a pending city ordinance, in some instances the terminals of the electric railway and the jitney routes are about the same. After a week of service over the shortened routes for congested districts on two lines, the public, the company and the city of- ficials seem satisfied to extend the re- adjustment. There has been much discussion in Kansas City of the feasibility of zone fares, the suggestion being made fre- quently in connection with plans to overcome the competition of jitneys. The Kansas City Railways, however, has decided that zone fares are not practical or fair; but that zoning of service will meet both the jitney com- petition, and the problem of adequate service. In stating its case for the zoning of service the company says in part: The only solution possible is to reduce the suburban non-paying service and to give more cars and more car -miles to the portions of the city which are thickly populated and where they are needed. This means that new transfer points will have to be made and many lines which now have through service will have to be shortened and the outlying districts served by their own lines, on which will be given service adequate to the traffic possibilities and needs of these districts. A system of turn-backs will have to be inpugurated by which cars during the rush hours will cover only a certain part of their route and be turned back and sent downtown to take care of the people wait- ing for transportation, instead of continu- ing on to the end of the line with no pat- ronage. fransportation News Notes Cuts Operating Expenses. — Unable to obtain a higher fare the Louisville (Ky.) Railway has rerouted many of its cars as a means of curtailing oper- ating expense. One new line has been opened. Limited Service Planned. — Respond- ing to a demand for quicker service be- tween Los Angeles and San Beniardino, Cal., the Pacific Electric Railway is planning to run limited trains between the two cities. At present the cars make all local stops. Metal Tokens in New Orleans. — Metal tokens worth 6 cents each will be used by ttie New Orleans Railway & Light Company, New Orleans, La., to obviate the need for great numbers of pennies in the hands of conductors, according to Nelson H. Brown, general manager. Jitney operators of Kansas City have recently conceded all but one of the requirements in pending ordi- nances, this one being the bond of $5,000. Difficulty has been encountered in securing such a bond and they may have to suspend operation. Interurban Rate Increased. — The East St. Louis & Suburban Railway, East St. Louis, 111., gave notice to the Pub- lic Service Commission of Illinois on Aug. 1 of an increase in fare between East St. Louis to Edwardsville, 111., from 40 cents to 46 cents. The rate from Collinsville to Maryville is re- duced 2 cents. Homestead Company Increases Fare. —The Homestead & Mifflin Street Rail- way, Homestead, Pa., has announced an increase in fare to care for the v/age raise, noted elsewhere in this issue. The fare will go up on Sept. 1. The present charge is 5 cents. The new rate will be 6i cents by ticket and 7 cents when paid in cash. Illinois Company Wants More. — Hearings on the petition of the Chicago & Joliet Railway for authority to in- crease fares within the corporate limits of Joliet, Rockdale and Lockport, 111., have been begun before the Public Util- ities Commission of Illinois. The com- pany has applied for a fare increase to meet demands of its employees for higher wages. Seven Cents Asked by Sedalia Com- pany.— The City Light & Traction Company, Sedalia, Mo., has applied to the State Public Service Commission for a fare increase from the present 5- cent rate. The company asks that it be allowed to charge 7 cents for an adult ticket, and 5 cents for a child's half-fare ticket with six half-fare tickets for 25 cents. Hearings were to start on Aug. 11. August 16, 1919 Electric Railway Journal 363 Reducing Accidents in Kansas City. — Co-operating with the local Traffic Safe- ty League in its campaign to reduce the number of street accidents, the Kansas City (Mo.) Railways is col- lecting detailed information regarding all accidents in which its cars are in- volved. Daily reports are made to D. L. Fennell, superintendent of transporta- tion, who publishes a daily bulletin summarizing the data. Seven-Cent Fare for Illinois Inter- urban. — The Public Service Commission of Illinois on July 30 ordered a 7-cent cash fare for the Alton, Granite City & St. Louis Traction Company, Alton, 111., and a 6-cent fare in East St. Louis, 111. This schedule will continue effective until Oct. 31, 1919. The commission several months ago denied the com- pany's application for an 8-cent fare on the Alton city line. Trenton Hearings Sept. 16. — The State Board of Public Utility Commis- sioners has set Sept. 16 as the date for the hearing at the State House on the application of the Trenton & Mercer County Traction Corporation, Trenton, N. J., for another increase in fares in Trenton and suburban territory. The company wants to charge 1 cent for transfers and create four new zones on the suburban lines. I. T. S. Sleeper Service.— The Illinois Traction System has announced a new schedule of parlor car and sleeper serv- ice out of St. Louis. The new parlor car limited leaves St. Louis at 8.30 a. m., arrives at Springfield at 12.01 p. m. and arrives at Peoria at 2.30 p. m. Another parlor car limited leaves St. Louis at 2.30 p. m, and the sleeper leaves St. Louis at 11.45 p. m. and ar- rives in Peoria at 6.45 a. m. Jitney Men See Their Doom Sealed. ^Owners of jitneys in Camden, N. J., announce that if the Public Service Railway zone system goes into effect they will not be able to compete with the company on its 3-cent city fares and will transfer their activities to the suburbs. The jitney men now charge a 7-cent fare in the city. The jitney rr.en in Newark are said to be less pes- simistic about the future. Higher Fares on Suburban Road. — The Public Utilities Commission of Il- linois has approved the application of the Chicago West Towns Railway, operating lines in Oak Park and neigh- boring towns, for an increase in fares. Cash fares between the towns are raised from 7 cents to 10 cents. Within •-.he towns the rate is 7 cents or four tickets for 25 cents. The commission's order is effective until June 1, 1920. Eight Cents on Alabama Road. — The Public Service Commission of Alabama has issued an order permitting the Sheffield Company, which operates in Sheffield, Florence and Tuscumbia, to raise fares from 5 cents to 8 cents. The company had asked for a 10-cent fare. The company's application for a revision in fare zones was denied. When tickets are furnished in books of fifty a discount of 20 per cent is made, mak- ing the ticket rate 6.4 cents. Rhode Island Company Asks More. —The receivers of the Rhode Island Company, Providence, R. I., on Aug. 7 filed a petition with the Public Utili- ties Commission of Rhode Island for authority to put into effect a new schedule of fares so designed as to in- crease the revenue to meet the require- ments imposed upon the company by the advance in wages to its trainmen under the strike settlement terms out- lined in the Electric Railway Journal for Aug. 9, page 295. Detroit Fare Ordinance Re-enacted. —The Council of Detroit, Mich., has re-enacted the Kronk ordinance, passed by the aldermanic body a year ago, fixing 5 cents as the maximum rate of fare to be charged by the Detroit United Railway. Suit to test the va- lidity of the measure was brought by the Detroit United Railway and car- ried to the United States Supreme Court, from which it has been sent back and is awaiting a rehearing be- fore the Federal Court at Detroit. Fare Ordinances Submitted in Ports- mouth.— Another overture for increased fares has been made to the City Coun- cil of Portsmouth, Va., by the Virginia Railway & Power Company. The new proposition comes from W. H. Venable, who is the general attorney for the com- pany. With Mr. Venable's letter were two ordinances, either of which may be adopted. One provides for a 6-cent fare within the city limits with a 2- cent charge for transfers. The other provides for a 7-cent fare within the city without charge for transfers. New Jersey Hearing Put Over Until Sept. 17. — With the conclusion of the cross-examination of Charles K. Moh- ler, witness for the League of Munici- palities in the zone fare hearing for the Public Service Railway at Newark, N. J., on Aug. 5 the Board of Public TTtility Commissioners announced a re- cess until Sept. 17. Both Frank H. Sommer, counsel for the league, and Edmund W. Wakelee, vice-president of the Public Service Railway, agreed that the hearings could be more rapidly dis- posed of in the fall after the mass of evidence had been examined. Six Cents in Lake Charles. — Fares in Lake Charles, La., were placed at 6 cents beginning Aug. 1, under the terms of an ordinance passed by the City Council granting an increase to the Lake Charles Railway, Light & Water- works Company. The company was also permitted to make a 1-cent charge for transfers. Passage of the ordi- nance followed a compromise effected in the district court in the city's suit against the railway to restrain the lat- ter from putting a 7-cent fare into effect. Some months ago the com- pany established a 7-cent fare, where- upon the city secured a temporary in- junction which was later dissolved. Three-Cent Fare Will Stand.— The application of the Van Brunt Street & Erie Basin Railroad, Brooklyn, N. Y., for permission to increase its fares from 3 cents to 4 cents, has been denied by Deputy Public Service Commis- sioner Barrett of the First District on the ground that there is no necessity for the change. The company's line is a little more than a mile long. Its power is furnished by the Brooklyn Rapid Transit Company, which also cares for the street between the tracks. Commissioner Barrett pointed out that the company's net corporate income has increased from $8,248 for 1914 to $12,- 012 for the year ended June 30, 1919. Hearings Concluded in Mississippi Dispute. — Arguments in the hearings before Special Master Terrall, appointed by Judge Holmes of the Mississippi Federal Court to take evidence in the dispute between the city of Meridian, Miss., and the Meridian Light & Rail- way Company, were recently concluded. Mr. Terrall will present his report at the September term of the court. The controversy grew out of the increased railway rates from 5 cents to 7 cents. The city contends that charter provi- sions were violated, while the company asserts that under charter provision dating back to 1884 it has the right to increase fares to as much as 10 cents. The 7-cent fare was established more than a year ago. Express Service Extended. — -The Chicago, Ottawa & Peoria Railway, Ottawa, 111., included in the Illinois Traction System, has installed express service between Chicago and stations on that line, insuring quick deliveries and low rates. Service will be routed via Chicago & Joliet Electric Railway and the Interurban Motor Despatch line. Pick up and delivery service will be fur- nished at Chicago on first-class ex- press at 80 cents per hundredweight and on second-class express at 60 cents per hundredweight within the district bounded on the north by Chicago Street, on the west by Halstead Street, on the south by Eighteenth Street and on the east by Lake Michigan. Fare Controversy Still on in Colum- bia.— The City Council of Columbia, S. C, has passed on its first reading an ordinance to amend the franchise of the Columbia Railway, Gas & Elec- tric Company, so as to allow the city to fix rates of fare. The Council's ac- tion comes as the result of opposition to the 7-cent fare established by the company on July 1 to cover a 10 per cent wage increase to its men. Citizens attempted to secure an injunction re- straining the company from putting the higher rates into effect, but their ap- plication was refused. The events lead- ing up to the present situation were referred to at length in the issue of this paper for July 19, page 142. City Holds Out for Five-Cent Fare. —The City Council of Spokane, Wash., by unanimous vote has reaffirmed its belief in 5-cent fares on the railway lines of the city and asked the State Public Service Commission to restore the old fare notwithstanding the order of the commission to continue the 6- cent fare for another period of sixty days. The resolution was presented by Commissioner John H. Tilsley and passed by the City Council. In con- sideration of returning to the 5-cent fare the City Council agrees to con- 364 Electric Railway Journal Vol. 54, No. 7 tinue the policy of keeping jitneys in check as it has for the past three months. The resolution cites that thf city opposed the increase of fares in the beginning and that results have shown that the companies would have done as well under a normal increase in busi- ness, if the 5-cent fare had been re- tained. A larger net revenue will be ob- tained by the companies at 5 cents, the resolution states, than by continuing the fare at 6 cents. New Publications Spacing and Depth of Laterals in Under-drainage Systems By W. J. Schlick. Bulletin No. .52, En- gineering Experiment Station. Iowa State College, Ames, Iowa. This bulletin on the spacing and depth of laterals in Ohio under-drain- age systems and the rate of runoff from them, with data from investiga- tions, while primarily of interest in con- nection with farms, has reference value to railway men who have problems to solve in connection with the drainage of moist areas. Government Ownership of Railroads — Vol. 2 Compiled by Edith M. Phelps. H. W. Wilson Company, New York. 200 pages. Price $1.50. This is one of the "Debater's Hand- book Series" of the publisher. It should be explained at the outset that this vol- ume is not a new edition of the former handbook on this subject, but is an en- tirely new publication, based on rail- road conditions as they exist at the present time. Vol. 1, published origi- nally in 1912, has been through three editions. As the publishers explain, the various arguments for and against gov- ernment ownership of the railroads are brought out in the affirmative and neg- ative discussions. A selected bibliogra- phy is included, limited chiefly to the literature of the last two years, al- though earlier standard works have been added, together with a list of bib- liographies, which point the way to other material on the subject. The contents is divided into General Dis- cussion, Affirmative Discussion, and Negative Discussion. The volume deserves the careful at- tention of the student, the investor, and the operator. The proponents of gov- ernment ownership should be acquainted with what the opponents are thinking and saying, and the opponents of gov- ernment ownership of course should know what the proponents are thinking and saying. "Government Ownership of Railroads" make this comparatively simple. The publisher and the compiler are to be congratulated on the work they have done at this time in making reference easy to the best that is avail- able on this subject. Personal Mention Edward Dana, Acting Manager Well-Known Transportation Authority Selected to Head Boston Elevated Railway Edward Dana, Belmont, Mass., has been appointed acting general manager of the Boston (Mass.) Elevated Rail- way, succeeding C. D. Emmons, who resigned recently to become president of the United Railways & Electric Company, Baltimore, Md. Mr. Dana is widely known in the electric railway field as a specialist in transportation practice. He was born in Bernardston, Mass., thirty-five years ago, and was graduated from Harvard College in 1907, completing the four-year course in three years. F:DWARD DANA Mr. Dana entered the employ of the Boston company soon after receiving his degree. From a post as conductor he has advanced rapidly through vari- ous departments of the company to the position of manager of transportation, which he held at the time of his latest promotion. He became interested in the scientific aspects of traffic handling early in his career with the Boston company, and has written numerous articles for the Electric Railway Journal and other publications upon transportation matters. Among these have been extended analyses of sched- ule-making problems, the organization of snow-fighting forces, maintenance of service under adverse conditions, telephone adjuncts to electric railway operation, traffic counts and their in- terpretation, and many others. Mr. Dana has been active for some years in the work of the American Electric Railway Traffic & Transporta- tion Association, and has appeared as an expert in numerous commission pro- ceedings. Since the establishment of public control on the Boston system, he has been at the head of the transporta- tion department, reporting to the gen- eral manager. In the affairs of his home town Mr. Dana is unusually prominent, being a member of the finance committee, treasurer of the War Chest, and active in the publicity work of the municipality during the war. He has traveled widely in the interest of electric transportation work. Mr. Dana is a member of the New England Street Railway Club and of the Boston City Club. Organized for Separate Operation The Eighth Avenue Railroad, New York, N. Y., segregated from the New York Railways and operated separately under W. B. Yereance as general man- ager and chief engineer, has announced in a general order the appointment as department heads of the company's organization developed for the direct operation of its railroad the following officers : H. S. McGinness, supervisor of trans- portation. J. D. Kent, supervisor of way and structures. R. H. Waldo, acting supervisor of equipment. E. T. Baker, auditor. W. G. Wheeler, special (claim) agent. E. M. Musier, paymaster. S. L. Shuffleton, formerly chief of construction for Stone & Webster in the Seattle district, is now Western Manager for Stone & Webster at San Francisco. Capt. James H. McLaughlin, formerly connected with the Baton Rouge (La.) Electric Company, has gone to Houston, Tex., as secretary to L. C. Bradley, vice-president of the Houston Electric Company. Calvert Townley, president of the American Institute of Electrical Engi- neers, is the subject of an extended and sympathetic personal article by Lewis B. Stillwell in the July issue of the Electric Journal. Melnotte McCants, who has been as- sistant to the general manager of the United Railroads, San Francisco, Cal., for the last twelve years, has been given the title of assistant general manager of the company. G. A. Webb, who has been acting as superintendent of transportation of the Savannah (Ga.) Electric Company for several months, has been appointed to that position permanently. Mr. Webb was formerly traffic manager of the Tampa (Fla.) Electric Company. E. J. Mcllraith, formerly superin- tendent of ways and structures with the Puget Sound Traction, Light & Power Company, at Seattle, Wash., has been appointed to the position of engi- August 16, 1919 Electric Railway Journal 365 neer in charge of maintenance with the Philadelphia (Pa.) Rapid Transit Conn- pany. S. M. Read, superintendent of the Quebec Railway, Light, Heat & Power Company, Quebec, Que., and chairman of the outside industries committee of the Quebec Board of Trade, is the author of an article "For a Greater Quebec," in the bulletin of the Quebec Board for June 16. John W. Greer, Edgewater, N. J., has been appointed superintendent of the Hudson River division of the Pub- lic Service Railway, Newark, N. J. Mr. Greer has been with the Hudson River line for many years and was connected with it before it was taken over by the Public Service Corporation. C. B. Booth, for a number of years commercial manager and claim agent of the Vicksburg Light & Traction Company, Vicksburg, Miss., severed his connection with that company on Aug. 1 to become the business manager of a Mississippi electrical concern. Mr. Booth joined the traction company more than eighteen years ago. H. F. Cameron of the Lake Charles Railway, Light & Power Company, Lake Charles, La. has been appointed vice-president and general manager of the Texas Gas & Electric Company, with headquarters in Houston, Tex., succeeding A. W. Houston, whose ap- pointment to the Southern Utilities Company is noted elsewhere in this department. A. W. Houston has resigned as vice- president and general manager of the Texas Gas & Electric Company, Hous- ton, Tex., to accept a similar position with the Southern Utilities Company. Mr. Houston will have his headquarters in Palatka, Fla., and will have super- vision of plants of the Southern Utili- ties Company, in the states of Florida and Georgia. Charles S. Ruffner. vice-president of the Union Electric Light & Power Com- pany, St. Louis, Mo., has been elected a vice-president of the North American Company, which owes the Union Com- pany and whose common stock owner- ship in the United Railways, St. Louis, controls that company. Mr. Ruffner will spend half his time in St. Louis and half in New York. I. M. Stover, for the last two and one-half years manager of the Baton Rouge (La.) Electric Company, a Stone & Webster property, has been trans- ferred to the general office of the latter company in Boston, Mass. Before leav- ing Baton Rouge he was presented with a handsome silver water pitcher and tray by the company's employees. Mr. Stover was formerly connected with the Key West (Fla.) Electric Company as manager. H. R. Sharpless ha; been appointed chief engineer for the Pensacola (Fla.) Electric Company. Mr. Sharpless was until recently chief engineer for the power station of the Baton Rouge (La.) Electric Company. At the same time E. L. Bancroft was appointed assistant chief engineer. L. P. Chaney, formerly chief engineer of the power station of the Pensacola Electric Company, has been transferred to the Blackstone Val- ley Gas & Electric Company, Paw- tucket, R. I. F. C. Chamberlain, for the last six years district engineer of electric op- ei ation for the properties of Henry L. Doherty & Company in the Western District, has been appointed general manager of the Richland Public Serv- ice Company, Mansfield, Ohio, succeed- ing R. E. Burger. Prior to his con- nection with the Doherty organization, Mr. Chamberlain was with the Ameri- can Gas & Electric Company at Wheel- iiig, W. Va., and for about four years previous to that time he had been in the New York office. Robert L. Warner, who was vice- president of the United Railways, St. Louis, Mo., severed his connection with that company on Aug. 1 and returned to New Hampshire. Mr. Warner was elected to the company at St. Louis last fall to represent Eastern interests and to attempt to save the United Rail- ways from a receivership. He will i-e- turn to St. Louis soon, he announced, as a representative of the North Amer- ican Company, which controls the United Railways through ownership of practically all the common stock of the company. Augustus E. Haar has been appointed master mechanic for the Trenton & Mercer County Traction Corporation, Trenton, N. J. Mr. Haar spent nine- teen years in the employ of the Wash- ington Railway & Electric Company, Washington, D. C, resigning a short time ago to join the Trenton company. Joining the Washington company in 1900 as an apprentice machinist he gradually worked himself up to the position of master mechanic. Mr. Haar was born in Philadelphia in 1883. In 1908 he was appointed foreman of the company's machine shop and in 1914 was promoted to the position of general shop forman. Two years later he was made master mechanic. Louis Resnick has resigned as gen- eral manager of the Associated Trade Piess at St. Louis, Mo., to become diiector of publicity for the National Safety Council, which has a section op- erating in the electric railway indus- try. He will, however, continue with the press association in an advisory capacity as a member of the board. Mr. Resnick was formerly the resident news correspondent in St. Louis for the Electric Railway Journal. He re- ceived his preliminary newspaper train- ing at the School of Journalism, Uni- versity of Missouri. He has been engaged in newspaper work for nine years, four years of which he was with the Associated Press, and two years with the Associated Trade Press in St. Louis. J. D. Whittemore, who has been ap- pointed receiver of the West Virginia Traction & Electric Company, Wheel- ing, W. Va., is general manager of the company in active charge of operation. Before becoming connected with the West Virginia Traction & Electric Com- pany Mr. Whittemore was general man- ager of the Claremont Railway & Lighting Company, Claremont, N. H. He was at one time employed by the General Electric Company at Schenec- tady, N. Y., and later was transferred to Boston, working in the construction department. He subsequently entered the industrial engineering department of the Rochester Railway & Light Com- pany, Rochester, N. Y. Prior to his connection with the Claremont Railway & Lighting Company. Mr. Whittemore was manager of the Gardner (Mass.) Electric Light Company. Obituary Patrick D. Fox, seventy-three years old, manager of the old Elizabeth, (N. J.) Horse Railway before it was absorbed by the North Jersey Street Railway, now the Public Service Rail- way, died recently at his home in Elizabeth. Mr. Fox was bom in Ire- land and lived in Elizabeth for fifty years. John W. Marsh, superintendent of the Steubenville division of the Wheeling (W. Va.) Traction Company, died on Aug. 4 at Denver, Col., at the age of fifty-six years. Mr. Marsh entered rail- way work in July, 1888, as a motorman on the lines of the Wheeling Traction Company. In 1900 he was promoted to dispatcher and in 1902 he was made assistant superintendent of the Wheel- ing lines. When the Wheeling Trac- tion Company took over the lines of the Steubenville, Mingo & Ohio Valley Traction Company in 1903, Mr. Marsh was appointed superintendent of that division which position he held until his death, being located in Steubenville. George R. Webb, capitalist and or- ganizer of electric railways and tele- phone companies, died at Baltimore, Md., on July 7 of heart disease at the age of sixty. Mr. Webb began his busi- ness career with the Baltimore & Ohio Railroad. Subsequently in connection with Harry Parr he constructed the Bal- timoi'e & Northern Railroad. Then with Alexander Brown & Sons, bankers, he consolidated the street railways of Baltimore, and for a short time he was the president of the amalgamated com- panies. Mr. Webb's activities rapidly broadened. He organized the Maryland Telephone Company, the Pittsburgh & Alleghany Telephone Company, Wil- mington Light & Power Company and the Duquesne Light Company, Pitts- burgh. At a later period, with Balti- more associates, he assisted in con- solidating the electric railways of San Francisco, and with Pierre S. du Pont and Harry P. Scott he carried through to a successful conclusion the electric railways and light and telephone sys- tem of Wilmington, under the name of the Wilmington & Philadelphia Trac- tion Company. Manufadures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER. SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS Better Ordering of Rails For Fall Delivery Traction Companies in the Market for Small Amounts — Government and Foreign Inquiries Orders from traction companies for lails have been coming' in in better vol- ume recently. Truly, these orders have r.ot been for normal amounts, but, al- though they are small in size, they are coming in from an increasing number of companies. Heavy T as well as gir- der rails are included in the ordering. Fall demands are being considered, and at the present rate of shipments it is none too early, according to manu- facturers, to place orders for delivery so the rails can be placed before winter. Inquiries too have been received in larger quantity for girder rails. Some rail mills are not operating or operating on very small capacity. De- pending on the section required, ship- ments run from sixty to ninety days. With the mill for a certain section of rail not running when the order for that rail is received, it is probable that the rolling will be held up maybe 60 days awaiting sufficient orders for that size to make a fair sized rolling. Orders coming in near the end of this waiting period could be shipped in rather quick time. The Kailroad Administration has asked for bids on 100,000 tons of heavy rails, and Uruguay has been inquiring for about 1800 tons of traction rails. Buying of light rails for mining and industrial work is also on the inci-ease, and has a slight effect on shipments of traction rails. Advance in Uniforms, Insig- nia and Equipment Demands for Punches and Badges and Buttons Growing — Deliveries Re- ported to Be Lengthening Orders for punches during the past month have been so large in volume that the demands cannot be supplied. The orders are constantly increasing and the sales are very heavy compared with previous months, regardless of the 10 per cent advance which has taken effect during the past six weeks. The rise in prices was necessary on account of wage increases that have been granted the punch makers. Although their demands for increases have been rnet and there has been no interruption owing to strikes, punch makers are from four to six weeks behind on or- ders. The market is not strong in regard to uniform caps. Sales are only normal and deliveries are hard to make on ac- count of labor difficulties. Caps are up approximately 25 per cent during the past month. Labor charges are higher, but leather visors, formerly quoted at $14 per gross, have risen to $20 per gross, and are chiefly the cause of the 25 per cent advance just announced. Uniforms have also advanced and one manufacturer advises that a new price list is out this week. The advance amounts to practically 5 per cent on both single and double breasted styles, which in the medium weight melton suits are quoted at $25 to $26. Further increases are dependent upon labor con- ditions. All demands are being supplied and deliveries range from two to three weeks. Large Sales of High-Tension Insulators Made Price Advance of 10 Per Cent in Effect — Export Business Growing But Competition Expected Excellent sales are reported in the high-tension insulator market for the past week. One company received an order for 75,000 units for new con- struction work, and several large orders for stock or renewals approximating that number have been received. Still another manufacturer advises that an order for 60,000 units was just closed. Foreign sales are increasing, the de- niand in Sweden being greater than in Spain and Italy, while those of South America remain normal. It is expected that with conditions becoming normal in England, competition may result in a decrease in exports of certain types of insulators, especially those of medium voltages. Ball-clay and China-clay, largely imported from England, are in- gredients which American manufactur- ers must have. It is therefore neces- sary to import the raw material, manu- facture the insulator and then compete with manufacturers in England who have the advantage of position relative to shipping, and also have the raw ma- terials right at hand. During a recent interview with an English manufactur- er's agent who was in the United States, the fact was brought out that the Brit- ish are not now in a position to manu- facture high-tension insulators. The price advance which was pre- dicted in last week's issue was made effective Aug. 11 and amounts to 10 per cent. Further increases depend upon the molders and the uncertain condi- tions in malleables which are now be- hind in deliveries. Improvement Shown in Steam-Turbine Sales Factory of One Large Company Work- ing to Capacity on Units Up to 10,000 Kw. With the resumption of peace con- ditions there has been a Vetum of steam-turbine business which, accord- ing to one of the more prominent man- ufacturers, shows a healthy growth throughout the country. The Western, Middle Western and Southern sections, however, give evidence of quicker re- turn to normal commercial conditions than the remainder of the country. Steam turbines in sizes up to, say, 10,000 kw. are running in better vol- ume than those of larger size, and or- ders are coming through in a satisfac- tory manner. The volume of ordering for units up through 10,000 kw. is such that a comfortable capacity is now being maintained in the shops, and the general growth of sales is continuing in a normal manner. During the war many potential cus- tomers for these nominally smaller sizes were kept out of the market be- cause they could not get priorities to enable them to increase their power- generating capacity. These orders are now being handled by the manufactur- ers. Customers who have need for units of larger sizes have been able to have their wants filled, and marrufac- turers are about cleaned up on these back orders. Smaller Sizes Active Turbine prices are holding steady, and there is no evidence that there v.-ill be any downward revision. The in- dustrials and centi'al stations have come to realize this condition, and where the smaller sized units are re- quired, as well as where their need can be anticipated in the near future, orders are being placed in good volume. Shipments for these sizes are in the neighborhood of six to eight months, and this is one determining factor in the decision to order. As regards the larger sizes, it seems to take longer for customers to come to the realization that there is no down- ward tendency of prices and to get under way in their orders for turbines. Shipments are about ten months; so it would appear that in order to get into operation by next summer it is about time to consider the placing of orders. On these larger sizes over 10,000 kw. the factories are not working to capac- ity. There is, however, much propo- sition work on the boards. Foreign orders are being received in pretty fair shape. August 16, 1919 Electric Railway Journal 367 A report from another prominent turbine manufacturing company is to the effect that its business in that line is less than before the war but that present prospects point to a large bus- iness in the near future. Rolling Stock Quebec Railway, Light, Heat & Power Company, Ltd., Quebec, Can., has or- dered for the City Street Railway divi- sion ten new pay-as-you-enter cars. Five of these cars have been ordered from the Preston Car & Coach Com- pany, Ltd., Preston, Ont., and five from the Ahearn & Soper Company, Ltd., Ot- tawa, Ont. Delivery is expected early in September. Prices were requested in these columns June 14. The follow- ing specifications apply to the new cars : Number of cars 10 Type of car Pay-as-you-entei' Seating capacity 4 2 Weight ( total ) 36.000 lb. Length over bumpers 41 ft. 2 in. Length of car body 29 ft. 8 in. Width of roof 7 ft. 8 in. Width at belt rail 8 ft. 0 in. Length over all not to exceed. . . .41 ft. 2 in. Height, rail to trolley base 11 ft. 71 in. Body (type) Semi-convertible Interior trim Mahogany Roof Single arch Air brakes Westinghouse SME Axles Brill 4^ in. Bumpers Channel iron bent to shape Buzzers Faraday System Car trimmings Car Builders Conduits and junction boxes. . Crouse-Hinds Control (type) .. .Single-end West. K-35-D Couplers and drawbars Builders radial Curtain fixtures National Lock Washer Company Curtain material Fabrikoid Destination signs Praighead Door-operating mechanism. Front only.... National Pneumatic Company, hand oper- ated. Fare boxes Coleman No. 5 stationary Fenders H. B. Lifeguards Gears and pinions Nuttal B. P. Hand brakes Peacock ITeati-rs. . Consolidated Car Heating Company Hcaillights Crouse-Hinds Headlining Agasote Journal boxes Brill Motors West, quadruple No. 533 Paint Holland Varnish Company Sanders Brill "Dumpit" Sash fixtures National Lock Washe»- Company Seats Hale & Kilburn Seating material Rattan Side and center bearings ... Pei-ry-Hartman Ti-ack scrapers Root Trolley base Nuttal No. 11 Trucks (type) Brill 76-E-2 Ventilators Utility "Honeycomb" WHieels Rolled steel Miscellaneous Conductoi's' and niotornicn's seats Nipissing Central Railway, North Co- balt, Ont., has received two electric car bodies from the Preston Car & Coach Company. The City of Saskatoon, Sask., has asked tenders to be sent in by Aug. 20 for five fully equipped one-man safety cars to be delivered before Dec. 1. Montgomery Light & Traction Com- pany Montgomery, Ala., througli its receiver R. Rushton, has asked the court for authorization to purchase ten additional safety cars. Nova Scotia Tramway & Power Com- pany, Halifax, N. S., according to a re- port of July 14, expects to buy shortly twelve or perhaps twenty new cars for its electric properties in Halifax. Publ'c Service Railway, Newark, N. J., on Aug. 13 lost eighteen cars in a fire which destroyed a carhouse at Camden, N. J. The loss is estimated at between $100,000 and $150,000. The cars, it is stated, must be replaced im- mediately. Schuylkill Railways Company, Gir- ardville. Pa., through its general man- ager, C. S. Bailey, has ordered three cars for this company instead of for the Morgantown-Wheeling Railway, Morgantown, W. Va., as was reported in these columns on Aug. 2. The equipment ordered for them was three Westinghouse 532-B. motors, five air- brake equipments and one 500-kw. ro- tary. Track and Roadway British Columbia Electric Railway, Vancouver, B. C. — Work has been be- gun by the British Columbia Electric Railway on the reconstruction of 5 miles of track in District 2, south of Tucks on Lulu Island. The work will cost about $25,000. Pacific Electric Railway, Los An- geles, Cal. — Standard girder rails will be laid by the Pacific Electric Railway on East Colorado Street, Los Angeles. The company will lay the new rails from Broadway to Lake Avenue this fall and next year will continue the improvement from Lake Avenue to Al- len Avenue, the east city limits. The total cost of the proposed improvement will be about $100,000. Cripple Creek Short Line Railroad, Colorado Springs, Col. — It is expected that work will be begun early in Sep- tember on the electrification of the Cripple Creek Short Line Railroad, which operates between Colorado Springs, and the gold mining camps in that, section. Electric power for NEW YORK METAL MARKET PRICES July 31 Aug. 12 Copper, ingots, cents per lb 22.75 to 23.50 2L50 Copper wire base, cents per lb 26.00 26.00 Lead, cents per lb 6.00 6.00 Nickel, cents per lb 40.00 40 00 Spelter, cents per lb 7 . 90 7.65 Tin, cents per lb 70.00 to 7L50 70.00 Aluminum, 98 to 99 per cent, cents per lb 32.00 to 33.00 3L00to 33.00 OLD METAL PRICES— NEW YORK July 31 Aug. 12 Heavy copper, cents per lb 20. 50 to 21.00 18.00 to 19.00 Light copper, cents per lb 15. 50 to 16.00 15. 00 to 15.50 Heavy brass, cents per lb ll.OOto 11.50 lO.OOto 10.50 Zinc, cents per lb 5.25 to 5.50 5.00 to 5.25 Yellow brass, cents per lb 9.50 to 9.75 9.00 to 9.50 Lead, heavy, cents per lb 5 50to 5.62^ 5.l2Jto 5 25 Steel car axles, Chicago, per net ton. . . $28.00 to ,^29.00 $29.00 to 330.00 Old carwheels, Chicago, per gross ton. . $26 . 00 to $27 . 00 $26.00 to ,'(27.00 Steelrails (scrap), Chicago, per gross ton $25,00to ,t26,00 $25,00to ,?26,00 Steel rails (relaying), Chicago, grnss ton, $29,00to $30,00 $29,00to $30.00 Machine shop turnings, Chicago, net ton $9,50 to $10,50 $ 10 . 00 to $ 1 1 , 00 ELECTRIC RAILWAY Rubber-covered wire base, New York, cents per lb Weatherproof wire (100 lb. lots), cents per lb.. New York Weatherproof wire (100 lb. lots), cents per lb., Chicago T rails (A. S. C. E. standard), per gross ton T rails (A. S. C. E. standard), 20 to 500 ton lots, per gross ton T rails (A. S. C. E. standard), 500 ton lots, per gross ton T rail, high (Shanghai), cents per lb.. . Hails, girder fgrooved), cents per lb Wire nails, Pittsburgh, cents per lb. . . . Railroad spikes, drive, Pittsburgh base, I" cents per lb Railroad spikes, screw, Pittsburgh base, cnnts per lb Tie plates (Hat type), cents per lb Tie plates (brace typo), cents per lb. . . Tie rods, Pittsburgh base, cents per lb. Fish plates, cents per lb .\ngle plates, cents per lb .\ngle bars, cents per lb Rail bolts and nuts, Pittsburgh base, cents per lb Steel bars, Pittsburgh, cents per lb. . . . Sheet iron, black (24 gage), Pittsburgh, cents per lb Sheet iron, galvanized (24 gage), Pitts- burgh, cents per lb Galvantzpfl barbed wire, Pittsburgh. ceicto oer lb July 3 1 Aug. 12 28 30 30 33 30.75 30 75 $49 00 to $51 00 49 00 to 51 .00 $47 00 to $49 00 47 00 to 49 , 00 $45 . 00 to $47.00 45 00 to 47 .00 3 3 3 3 3.25 3.25 3 35 3 35 8 2.75 8 2.75 2.75 2.75 7 7 3 3 3.90 3 90 3.90 3.90 4 35 4.35 2 35 2.35 4.20 4.20 5.25 5 25 4.10 4. 10 to 4.20 MATERIAL PRICES July 31 Aug. 12 Galvanized wire, ordinary, Pittsburgh, centsperlb 3.70to 3.80 3 70 to3,80 Car window glass (single strength), first three brackets, A quality. New Y'ork, discount t 80% 80% Car window glass (single strength, first three brackets, B quality) , New York, discpunt 80% 80% Car window glass (double strength, all sizes AA quality). New York discount 81% 81% Waste, wool (according to grade) , cents per lb I4to 17 I4to P Waste, cotton (1001b, bale), cents per lb, 8 to 12} 8 to 12; Asphalt, hot ( 1 50 tons minimum) , per ton delivered Asphalt, cold ( 1 50 tons minimum, pkgs. weighed in, F. O. B. plant, Maurer, N. J.), per ton . . ■ - Asphalt filler, per ton $30.00 $30.00 Cement (carload lots), New York, per bbl $2.90 $2.90 Cement (carload lots) , Chicago, per bbl. $3.05 33.05 Cement (carload lots), Seattle, per bbl. . $3.13 $3.13 Linseed oil (raw, 5 bbl. lots), New York, per gal $2.20 $2.25 Linseed oil (boiled, 5 bbl. lots), New York, per gal $2.22 $2.27 White lead (100 lb. keg). New York, cents per lb 13 13 Turpentine (bbl. lots). New York, .cents pergal 1.35 $1.80 t These prices are t. o. b. works, with boxing charges extra. 368 Electric Railway Journal Vol. 54, No. 7 the operation of the road will be pur- chased from two central station com- panies, one of which will be the Ar- kansas Valley Railway, Light & Power Company. Chicago, North Shore & Milwaukee Traction Company, Highwood, 111. — A new extension will be built by the Chi- cago North Shore & Milwaukee Trac- tion Company down the Finer Road to the manufacturing region known as "the Flats" in order to accomodate the employees of the tannery of Johns- Manville Company, the Warden-Allen Company and other industries. Baltimore & Ohio Railroad, Balti- more, Md. — It is reported that the Baltimore & Ohio Railroad is consider- ing plans for the complete electrifica- tion of its system over the Seventeen- Mile Grade District. Tampico, Mexico. — The Mexican Government has granted a concession to the National Norwegian Company for the construction of an interurban electric railway between Tampico and Tuxpam, about 120 miles, with branch lines to several smaller towns in the oil producing territory. The route of the proposed main line will closely fol- low the Tampico-Tuxpam intercoastal canal. The National Norwegian Com- pany is composed of large banking in- terests in Copenhagen. It was or- ganized under the laws of Mexico only a few months ago for the purpose of operating in the oil fields of the Gulf Coast region. It has established its principal office in Tampico. Jersey Central Traction Company, Keyport, N. J.— The Board of Public Utility Commissioners of New Jersey has ordered the Jersey Central Trac- tion Company to make improvements and extensions in its plant and system for genera] betterment in service. The work includes improvements on the Keyport-Perth Amboy Division, the Matawan-Keyport division and at At- lantic Highlands. Brooklyn (N. Y.) Rapid Transit Company. — Bids will be received by J. H. Delaney, commissioner of transit construction, 49 Lafayette Street, New York City, until Aug. 19, for furnishing and installing tracks for a portion of the Culver Rapid Transit Railroad ex- tending over and along Shell Road and West Sixth Street from a point near Avenue X to Sheepshead Bay Road. Cincinnati (Ohio) Traction Company. —Street Railroad Director W. C. Cul- kins has ordered the Cincinnati Traction Company to extend the Sixth Street line over to Hopple Street viaduct to Beekman Street in order to relieve the congestion of the Clai-k Street and Col- lege Hill lines. Sand Springs Railway, Tulsa, Okla. — A report from the Sand Springs Rail- way states that it is now building about 1 mile of sidings and industrial tracks. Toronto (Ont.) Suburban Railway. — Plans are being made by the Dominion government for the extension of the Toronto Suburban Railway from Guelph to Kitchener, Stratford and London and perhaps on to Windsor or Sarnia, as one of the links of the new Canadian National Railways system. Portland & Southeastern Railway, Bend, Ore. — J. W. Foster, Portland, construction engineer for the Myler Construction Company, states that his concern will handle construction work for the newly incorporated Portland & Southeastern Railway Company, who will build from Mount Angel on the west side of the Cascades, to Bend, by way of Sisters. While no definite announce- ment has been made, it is authorita- tively stated that the new road will employ electricity for its motive power. Leases have been obtained for power site purposes on Marion Lake in the Santiam National Forest in Curry County. This lake is said to have a capacity of 30,000 to 40,000 hp. The distance from the lake to Portland is approximately 100 miles. In regard to further surveys and construction after Bend is reached, Mr. Foster declared that construction from the summit of the Cascades to Bend by way of Sisters would be the first work to be under- taken. Dallas (Tex.) Railway. — Improve- ments will be made within the next two to five years by the Dallas Rail- way under the Hobson-Strickland ser- vice-at-cost franchise that will repre- sent an outlay of $1,000,000 to $1,500,- 000, according to Richard Meriweather, vice-president and general manager of the company. This expenditure will be absolutely necessary, Mr. Meriweather said, if the company is to continue to give the class of service now given and the kind of service demanded by the Dallas patrons. Power Houses, Shops and Buildings Los Angeles, (Cal.) Railway. — Plans have been prepared by the Los Angeles Railway for the construction of an of- fice building on the northeast corner of Eleventh Street and Broadway. The structure will be 176 ft. x 65 ft., ten stories, and will be of reinforced con- crete. The cost is estimated at $400,000. New Orleans Railway & Light Com- pany, New Orleans, La. — A new car- house will be erected by the New Or- leans Railway & Light Company on Canal Street, New Orleans. Cumberland County Power & Light Company, Portland, Me. — The Public Utilities Commission of Maine has is- sued an order that the Cumberland County Power & Light Company ex- tend its transmission lines from the end of its present line near Gray Cor- ner along the Poland Spring Road and through the Dry Mills settlement. Public Service Railway, Newark, N. J. — The carhouse of the Public Serv- ice Railway at Newton Avenue near Haddon Avenue, Camden, together with twenty-one cars, was destroyed by fire on Aug. 12. The loss is estimated at $150,000. Trade Notes Harry K. Hauck, formerly connected with the Bethlehem Steel Company, has been appointed general manager of the G. C. Kuhlman Car Compay, Cleveland, Ohio, effective July 10. Perley A. Thomas Car Works, High Point, N. C, announces that it is now moving its machinery into a new mill and is in position to give prompt atten- tion to all new work and to repair work. Harry G. Steele, director, vice-presi- dent and manager and one of the founders of the Pittsburgh (Pa.) Transformer Company, has sold his in- terests in and resigned from that con- cern. For twenty years Mr. Steele has been active in the electrical manufac- turing industry, and it is understood that he will continue in the electrical manufacturing business. French Insulator Factory Resumes. — Etablissement Charbonneaux et Cie., glass manufacturers at Rheims, on April 25 announced that they had re- stored to operation one oven for the manufacture of glass electrical insula- tors. This concern expected, if suffi- cient supplies of coal should be received, to be able to put a second oven in oper- ation by Aug. 1 and a third about October. M. B. Austin Company, Chicago, makes the following special announce- ment: "Trico renewable cartridge fuses have been regularly tested by the Underwriters' Laboratories and comply with all the necessary requirements up to and including 600 amp. in both the 250-volt and 600-volt classification." Inquiry No. 30,051. — A general agen- cy and eventually purchase of all arti- cles for electricity, such as generators, motors, switches, commutators, small material such as wires and cables, in- sulating material for motors and gen- erators, material for electric railways, rolling bridges, and measuring instru- ments of precision, are desired by a company in Belgium. Correspondence should be in French. Quotations should be given c. i. f. Antwerp. Pay- ment, cash and credit. New Advertising Literature Black & Decker Manufacturing Com- pany, 105-115 South Calvert Street, Baltimore, Md.: Attractively printed and illustrated catalog of its electric air compressors, portable electric drills and electrically driven valve grinders. Bridgeport (Conn.) district salvage board, Ordnance Department: A weekly bulletin containing a list of all government property within the Bridgeport district available for sale. This property comprises buildings, building equipment, power equipment, materials, factory supplies, tools, ma- chinery, etc. Communications should be mailed to chairman Bridgeport Dis- trict Salvage Board, 945 Main Street, Bridgeport, Conn. Journa! Consolidation of STREET Railway Journal and Electric Railway Review Volume 54 New Yor^, Saturday, August 23, 1919 Number 8 Hearings on Mail Carrying " i Compensation Should Bring Good Results NO MATTER what the outcome may be of the elec- tric railway mail pay hearings concluded early this month, and we believe it will be favorable to the rail- ways, the fact remains that the American Association did a good job in systematizing the presentation of the testimony of the electric railways at the several centers. The use of a simple but comprehensive program enabled the federal authorities to comprehend the actual con- ditions with a minimum of effort. Inside of two months nineteen hearings were held in widely scattered sections of the country and probably 300 witnesses were heard, of whom one-half presented exhibits. The physical ef- fort involved on the part of those who personally partic- ipated in the hearings is in itself worthy of comment. There are many matters of countrywide scope like this which can best be handled by a national organization. The electric railway investigation now before the Fed- eral Electric Railways Commission is another case in point. The electric railway business is emerging from its isolation in local communities to take its place as a national problem. To the American Electric Railway Association is offered a wonderful opportunity in this connection. Don't Forget the Track Department IN THESE days, when we are getting so many en- couraging reports about the wonderful records of lower costs and better business due to the installation of safety cars, we are likely to forget that the way de- partment can help a bit, too, if given the opportunity. To talk about the bigger opportunity first, there is the matter of rerouting. The suggestion for rerouting may come from the transportation department, but it is the way department that ought to be given a chance to prove whether the relocations are going to cost quite as much as the transportation department supposes. Per- haps a little study will demonstrate that a few cars less would do the same work and as effectively if the routes and special work were laid out differently to meet changed traffic conditions. As for smaller opportunities for improvement, we have in mind a town where cars going from storage into service for the day have to back up once or twice every time they want to get in the direction of the main traffic, and in some instance the cars have to run opposed to traffic for several hundred feet before they can get over to the track on which they belong. These layouts were made many years ago, when, it is to be assumed, the traffic conditions were different. They do not meet the needs of to-day and thereby impose de- lays and possibility of accidents upon the transportation department and unjust blame upon the way depart- ment. Then, too, it is not unusual to find single-track towns where the crew of one car cannot see the other be- cause of breaks in grade, curves, foliage and the like. It is not fair to the cause of good service to allow such conditions to continue without either signal pro- tection or double-tracking. A general conference may show that the cost of but one new car if applied to way and line improvements would be justified by the fact that it would speed up the schedule to an extent other- wise impossible. The problem before the general man- ager, therefore, is the old but sometimes forgotten one of spending each available dollar where it will do the most good to the system as a whole. Track switches are less sensational than cars, but they are also en- titled to a hearing before the board of disbursement. Differences Are Not Insurmountable THE week of hearings for the public side before the Federal Electric Railways Commission has de- veloped the significant impression among those who have sat through all the sessions that the railways and the public are not so far apart as has generally been supposed. It might almost be possible to argue the rail- way case on the testimony of any ten consecutive wit- nesses, regardless of which side the evidence presented by them was intended to support. Even on the question of municipal ownership, while believing that munic- ipal operation would be less efficient, many of the rail- way men would accept this plan as a last resort if they could see that the municipalities had the power and the means to effect a purchase quickly. But this seems to be a step of distant possibility, and the industry is concerned with an immediate remedy. Another often-repeated contention of the public's witnesses was the over-capitalization of the street railways, but this is not a factor in the settlement the railway men are seeking, for they have expressed their willingness to base a permanent settlement on a fair valuation of their properties. Aside from these two points, there has been a marked unanimity of thought as to the general principles, though naturally a wide divergence of views as to the details of effecting the adoption of these principles. All are agreed that the industry is in a serious con- dition and that a new order of relations between the public and companies must be effected. All are agreed that the first step in bringing about a permanent settle- ment is an evaluation satisfactory to both parties. This is the starting point. As to what theory shall form the basis of the appraisal is a matter of detail on which there are as many opinions as there are experts. Practically all are agreed that in the interim, while a 370 Electric Railway Journal Vol. 54, No. 8 permanent settlement is being worked out, almost the only practical relief is a temporary flat fare increase. Where there are constitutional grants specifying a maxi- mum fare, the city is in a position to exact its pound of flesh if it chooses, but almost every witness has ex- pressed his faith in the fair mindedness of the Amer- ican public if it is possessed of the whole truth, and this attribute must be relied upon to bring about a fair solution in such cities. There is no other solution under those conditions. There was practically an agreement that the inde- terminate franchise is more satisfactory, provided the reservation of purchase by the city is clearly set forth and made actually possible. There was almost unanim- ity of opinion that under private operation some service-at-cost plan is the best arrangement. There was almost no objection to the contention that naving taxes should be abolished as a charge against the car riders.. There was also agreement that on a sound valu- ation the rate of return which a company should be allowed to earn should be enough to attract capital and to set aside a sinking fund for depreciation, re'^ewals and replacements. It was generally feh that the jitneys could not supplv adeouate service if ^he transportation needs of the communities were dependent on them alone, except perhaps in small towns. What the final outcome may be is entirely beyond tho intent of this editorial to predict or even indicate, bu^- the absence of any striking or insurmountable differ- ences appeals to us as being an omen that the recom- mendations from the commission will have a far-reach- ing effect in bringing about a distinct imnrovement in the public attitude with the result that a revenue in- crease will be indorsed. By virtue of such a result, the railways will be put in a position to give the cities the service they need and want. The (Nearly) Automatic Power Plant WHILE the automatic or semi-automatic substation has deservedly had a great deal of publicity of late, one should not overlook the progress that has been made in the direction of automatizing the power plant itself. As compared with one of twenty years ago the present- day plant is operated with a very small labor force, a force of a character much more highly skilled than formerly. B. J. Arnold, the original inspiration of the automatic control of substation, was also a pioneer in the sam.e direction in the power plant field, as reference to his Grand Trunk Railway Sarnia tunnel plant will show. That plant, it will be remembered, was origi- nally needed only for short periods at long intervals, and conditions favored a then unusual amount of auto- matic control through variation in boiler steam pressure. Due to the necessity for cutting out labor costs and eliminating "the personal equation" in the power plant, the principles illustrated in the Sarnia tunnel plant are now widely applied. This process has been aided by the increase in size of prime mover units and the simplifica- tion of operating procedure of the turbine, boiler and pump rooms. Furthermore, much attention has been given to the mechanical handling of power plant mate- rials— fuel, ashes, water and parts of the equipment, which formerly required the services of a large part of the station force. There is wide opportunity, particularly in the older plants, for further reduction in labor cost, and for in- crease in reliability, by making these plants more nearly automatic. There Is No Money for Superfluous Labor IN ALL the speeches and writings about the high cost of electric railway operation, it is remarkable how little is said about the question of superfluous labor on the car platform. No manufacturer would dream of having two men operate a machine when one would be enough, whereas in the electric railv/ay business too many companies and too many employees take it for granted that there should always be two men to the mileage-producing machine, the car. Talk to an elec- tric railway manager, who is faced by another strike for higher wages and ask him why he doesn't go to one- man car operation for the smaller cars at least. With a sigh, he says that he does not dare to raise the ques- tion, that labor is powerful in his town, that the public would never stand for it, etc. Ah, yes, but does the public welcome the higher fares and the poorer service that high platform costs are leading to? As- suredly, it does not. Why not, then, go frankly before the public and say that the retention of lower fares and frequent service i? simply impossible if the electric railway must con- tinue to employ men in positions which have been made obsolete by the progress of invention. Nobody sees bus operators ruled olT the street or boycotted by the public because the driver also collects the fare; yet there is no comparison between the safety of the bus and of the '"!ew or the modernized one-man car. When the wages of the conductor and motorman alone amount to $1 per car-hour out of $3 gross earnings it is surely time to have a show-down. In a recent case, the platform men alone asked for a wage that would have equaled about one-half of the revenue. Obviously, such a demand leaves the railway in a despairing, des- perate position unless it has the courage to put up its back and fight in the open with the public as referee. We certainly are not questioning the justice of any particular rate of pay requested by the men, but they must understand that electric railway service is not a sinecure. To-day every employee on the car platform must be a producer, not a spectator. Could anything be more absurd than for an electric railway to spend vast sums for prepayment areas and yet retain the con- ductor to stand in the way of boarding passengers? Or to spend large amounts on automatizing the car without combining the greatly decreased duties of motorman and conductor in one individual? What makes the sit- uation still more intolerable is that all the railway would ask would be to turn most of the superfluous men into operators of additional cars. Heaven knows that plenty of electric railways could double their service if only to recapture the trafl[ic that the jitney has taken away from them, but they cannot do it at a cost of $1 to $1.50 per car-hour for the wages of two men. Let us repeat that it is more than high time for electric rail- way men to face the music in this matter, for they have found to their sorrow that it is not so easy to pass-on this wastage to the public. If electric railways are being run to keep superfluous men in their jobs, let that fact be known and the laborite defenders of the practice put on the defensive. August 23, 1919 Electric Railway Journal 371 The New York Strike and the Future NEW YORK experienced this week a "rapid-transit- less" Monday and will not want to repeat the ex- perience. Mayor Hylan has had a good deal to say dur- ing the past month as to the great merits of bus trans- portation, but the public prefers the subway and ele- vated. The dispute has been settled temporarily, largely through the efforts of Public Service Commissioner Nix- on, but the fundamental trouble still remains — i.e., that of fare. Until an increase is granted the company cannot give the service which the city ought to have. Mayor Hylan has had much to say in the past about profiteer- ing landlords. Why does he not become equally indig- nant at city officials who are taking advantage of the extraordinary conditions brought about by the war to compel railway companies to carry passengers at less than cost? New York City stands practically alone among the large cities of the country as being unwilling to grant a petition for fare increase. In some of the other cities the increase has not been as large as the companies need, but the New York municipal authori- ties permit nothing and do nothing but vituperate. This is all the more noticeable because of the fact that New York is a partner in the rapid transit development. Now that the Interborough has granted an increase in wages of 2f. per cent to its men, the fact must be more than ever patent that its income should be increased. Why Not Get New Money at Home? RECENTLY there came to hand a letter saying: . "In spite of the increased costs, we declared the usual semi-annual dividend of 3i per cent on our preferred stock." The manager who sent this cheerful news operates a combination light and railway plant in a small Southern town with few of those industrial advantages that a public utility needs to grow and prosper. But this man believed in the town, and he made the tov^Tispeople believe in it, too, by the most substantial token possible — the investment of their own money in the home utility. His methods and his success offer a genuine inspiration to other operators who have been turned down heartlessly when they have sought new money in the usual financial quarters. On taking over the property in its original run-down condition, our Southern friend minced no words in tell- ing the public that the remedy lay with them quite as much as it did with him. If they had as much faith in their home town as in some gas or oil well that they had never seen, he would expect them to subscribe for the funds necessary to make their com- munity a better place to live in. How could he be expected to get money from Wall Street if they were not willing to take a chance on providing better light and railway service aside from dividends? Through his absolute frankness and hard work, the money was raised and the dividends have been coming regularly for the last four years. It goes without saying that this plan insured the friendship of almost every sub- stantial citizen in the community, and the public as a whole was made to feel that this was in a very real sense their lighting company and their railway. This true story is worth retelling by many a man- ager who knows that there is plenty of money in his town to finance any required modernization of the sys- tem. Surely any community which is live enough to raise several hundred thousand dollars as an outright gift for some one welfare purpose, because that gift will make life in their town more agreeable, ought to be willing to lend, at a fair rate of interest, similar amounts for the betterment of a utility whose improved service means enhancement of property values and im- proved conditions of living for practically everybody. In the purchase of new cars, especially, it is very ap- propriate to solicit local loans because the risk when standard cars are purchased is practically nil. Anyway, what better answer can be given to the Boosters' Club than to ask them to prove their faith by their works? Information for the Passenger WHEN a group of men are operating the same railway system day in and day out, it is hard for them to realize how little many of the riders know about the routes, the streets, the hotels, the business buildings and other traffic-making features of the com- munity. You ask a conductor where so and so is, and if he hasn't just been taken on from a country-store ap- prenticeship he may know enough to say something like: "It's in the Nineteenth National Bank Building," or "Just turn oif in front of the Post Office, walk three blocks to the right and then two to the left." The most puzzling direction, however, is to be told to go in some direction of the compass when we have carelessly left our compass at home and there is no sun or star to guide us. Some day a lot of railways will follow the example of Philadelphia and get out a route guide, or of St. Louis in telling where the important places are and how to reach them. Almost everybody will admit that the stranger within the gates needs help, but so does the native who has wandered into some other part of town. He may know the schedules and destinations of his own route per- fectly, yet when out of his own neighborhood be just as helpless as a stranger. How is he to know, for ex- ample, that on Sundays and holidays some cars are rerouted and that others do not go to the end of the line unless there is a card of some kind in the cars, in waiting rooms or at transfer points. We wonder, also, how many rides have been lost because a stranger had no schedule boards to advise him when cars passed cer- tain corners. Still another kind of information which is of great ?ielp to the stranger, and even to the native, is about the stopping points of cars, particularly at places where the usual near-side or far-side stop is not observed. In every city there are exceptions to the usual rule on stops, and these exceptions should be clearly marked by street signs. A man who has already walked ten to twenty minutes is generally sore enough to continue walking, because he feels that he would be handing the railway something by paying full fare for part ride. We hope that renewed attention will be given to this subject wherever zone fares are installed. Every zone boundary ought to be an information point as regards headways and, possibly, as regards places reached. It would be poor business policy to let people cut off a zone or two from their fares when a little information would tend to keep them waiting for the car. Always sell the customer the largest piece of transportation he really ought to have! 372 Electric Railway Journal Vol. 54, No. The Street Inspector as He Was and Is to Be He Once Occupied a Most Responsible Position — Then Changes in Practice Rendered Him Less Important — Now Condi- tions Are Reinstating Him as an Essential Railway Official By EDWARD DANA Acting General Manager Boston Elevated Railway IN EARLY DAYS, the street railway consisted of a few tracks on main thoroughfares, e x - tending a relatively short distance from the central business section, and in many cases the routes op- erated on these tracks all started from a single carhouse. Here was located the of- ficial usually known as foreman, station master or starter, who was responsible for the dispatching of the cars on the sev- eral lines on schedule time and who also recorded the hours of work of the men who operated the cars. It was necessary to provide a responsible official at the central business terminus to supervise car opera- tion, and as the system extended over larger and larger areas this official developed into the "street aide," "traffic aide" or "street inspector," so-called. In those days when the tracks were laid but a short distance from the center of the city this official was almost always located in one spot and knew the patrons as well as the car crews individually. As the systems developed and consolidations occurred, divisions were created, and these in turn subdivided into districts which were pa- trolled by these street inspectors. The ever-increasing number of routes and more frequent operation of cars added to the responsibilities of these officials and their duties became much more complicated. They represented the division superintendent within their district. They were expected to observe and report defects of service, tracks, trolley and equipment. They took charge in case of accidents and diversions of cars and were expected to supervise the appearance, conduct and efficiency of the men operating the cars as well as regulate the spac- ing of cars within their district. As it frequently occurred that lines operated by several divisions passed through one inspector's district and as the number of trips operated each day increased, the inspector was no longer personally in as close touch as formerly with either the patrons or the men on the cars over whom he had jurisdiction. In those days, managements looked upon the trans- portation department as a fertile field from which to call for operating economies, but unlike the technical departments it was not appreciated that sometimes sub- THE MODERN STREET INSPECTOR READY TO AN.SWER ANY CALL stantial expenditures are necessary to se- cure greater econo- mies. The transpor- tation departments have therefore been called upon to work at top speed and at all hours of the day and night. This was one of the causes of the deterioration of the efficiency of the street inspector. Dis- tricts remained ap- proximately as large as originally, yet these officials were called upon to be "jacks of all trades," and the hopelessness of showing the con- crete efficiency of their efforts resulted very soon in a lack of aggressiveness and an appreciation of the fact that they had been spread over their districts so thin that the division executive had considerable diffi- culty in holding them strictly to account. The public soon became acquainted with the situation, for as criti- cism of service became more and more acute, reference was often made to the fact that the company could not expect service when its officials in the person of street inspectors could be observed any day wasting valuable time and apparently indifferent as to their duties. It is a well-known fact in any industry that a man charged with more work than he can properly perform and whose duties are so broad and distributed that he has no opportunity to show the direct results of his ability, will, as he remains on the same work over any extended period of time, gradually and consistently deteriorate. The work of these men often reminds one of the various drives which we have experienced for war ac- tivities. If the management received complaint of cer- tain conditions, a drive was made by the operating department and street inspectors would for several days be directed to concentrate so far as possible on careless operation at street intersections or the proper starting of cars or the appearance of the men and so on. Their official life has in a way been a series of efforts in cycles. As time went on, another factor entered into the operation of street railways which ,had a very decided effect upon the activity of the street inspection, and that was the labor organization. It is believed that some of these inspectors had always had a misconception of their proper relationship and attitude toward the plat- August 23, 1919 E L E C T R I C R A I L W A Y JOURNAL 373 form employees and often it is said employed unfair methods in their efforts to ascertain the shortcomings of these men. Consequently this was not forgotten when conditions changed, and some employees when they be- came affiliated with a large labor organization made it disagreeable for street inspectors with the general result of lowered efficiency for these officials as a class. When this time arrived, in addition to the internal deterioration previously outlined, the usefulness of a street inspector in his former status became decidedly less. The Inspector Again Becomes an Importai^t Official Under modern conditions, the instruction and re- instruction of car and train men both old and new can best be carried out with the aid of the instruction school through which the spirit of instruction rather than criticism can be fostered, since the department which first initiates the individual into the business can in his eyes always exercise a more effective corrective pressure than an official whom he does not know or come intimately in contact with, except as the official happens to get upon the individual's car to instruct or correct him. Of course this requires a highly competent instruction organization capable of adequate follow-up work, among all employees, and the keeping of accurate and valuable records which has as yet not been developed as thoroughly as it should be. The consistent improvement of the engineering de- partments having to do with equipment, line and track has relieved the street inspector from many former duties in connection therewith. Relieved therefore, to a large extent, of the matters referred to, the modern inspector can be charged with the specific responsibility of supervising the operation of the cars more nearly according to schedule and handling irregularities in a more up-to-date manner. Inconsistent as it may appear, when this is done his district may be enlarged rather than contracted. This can be brought about by utilizing the automobile. As most street railway operating divisions on large properties spread out over quite a large territory, it can readily be seen that anything which reduces the idle time of an inspector in getting about increases his effi- ciency. The automobile, which annihilates distance greatly reduces traveling time and permits an inspector to cover the territory of his cars at various points more frequently. He can be of great service during the com- paratively restricted rush hour by covering two points where congestion varies by a period possibly of less than a half hour, by the use of the automobile, whereas it would be impossible for him to do this in any other way. When emergencies arise, he can get to the scene in the shortest space of time when he is not confined to a route followed by the car tracks but is free to go across country. He is likewise relieved from exasperating loss of time as, for example, when obliged to wait ten or fifteen minutes before getting started on an emer- gency call because of the headway of the particular line of cars upon which he may be located. The number of inspectors maintained in a division would determine the frequency with which they could be required to call the division headquarters, but under any circumstances it would be possible to be in touch with an inspector with an automobile every ten or fif- teen minutes, who could reach any point of a divii-ion in a very short time and be followed by others as they called in. It requires but a very little imagination to one fa- miliar with the increasing use of the automobile and its proved efficiency in other lines of business in which time is such an important factor, to picture any number of advantages which may be secured by motoring th« inspectors not only as regards economies but also, which is to-day so important, that of providing efficient up-to- the-minute service. By using an automobile, inspectors can not only de- crease the cost of operation but, what is more important, improve the character of the service rendered. Spme of the most bitter criticism of street railways is voiced by people who are inconvenienced when the service breaks down, yet often the officials have been doing their ut- most to relieve the situation but have not had the where- withal to make their efforts count to the fullest extent. Evidence of modern methods and a spirit of hustle when there is a failure will quiet many a disgruntled patron, for he need then but ask himself whether he could have done the job more quickly or in a more up-to-date manner. If he waits in a block of cars many minutes for an official to arrive and if when he does arrive the wrecking utensils are still a quarter of a mile away in a wrecking car rather than brought directly to the loca- tion in an automobile and the man on the job showi evident discouragement because of valuable time loat and inadequate provisions, he may well be justified in criticising such antiquated methods. Today many influences are at work to make the elec- tric railway situation much different than it was of old. Electric railway operators, be they private or public, must think along new lines and give evidence of modern practices if they hope to meet and satisfy the wants of the patrons whom they handle. One large urban property recently took the initial step in experimenting with this method of automobile supervision and has already received satisfactory results. Increasing Power Supply in Great Britain In a recent address before the Association of British Chambers of Commerce, Major Philip Dawson expressed the belief that general embarkation in the construction of super-power stations in Great Britain would be a mistake. The effort first should be to increase small capacities, especially in those districts where there was a demand for power, at the same time encouraging the co-ordinated extension of existing supply plants. There should also be a removal of restrictive legislation and a serious effort should be made to build up the load factor of existing properties. There were undeveloped opportunities for hydro-electric development, parti- cularly in Scotland. Among the immediate possibilities of the use of electric power from such super-stations, he mentioned, in particular, greater railway electrification. The Lon- don, Brighton & South Coast Railway, for instance, one of the pioneers in electrification, is well satisfied with the results of the last ten years. During thisi time the receipts of its electrified lines have more than doubled, and but for the war the whole of the suburban lines, amounting to more than 150 miles of track, would now be electrically operated. The electrification of the su- burban system of this company would demand and jus- tify the creation of a super-power station. 374 Electric Railway Journal Vol. 54, No. 8 Hearings for the Public Side Concluded Federal Commission Testimony Reflects Impression of Gross Over-Capitalization Held by the Public as Principal Cause of Antipathy — General Acknowledgment of Need for New Relations — Detailed Proceedings from Wednesday Noon Through Adjournment, Friday Night THE hearings of the Federal Electric Railways Commission on the public side of the electric rail- way situation were concluded last Friday night, Aug. 15, having continued from Monday morning throughout the week, with evening sittings the last three days. Adjournment was made until about the second or third week of September when the third in- terested party, labor, will present its case. The Amal- gamated Association of Street and Electric Railway Employees of America, whose president is a member of the commis- sion, will have charge of the pre- sentation of this program, through counsel and econ- omists especially employed for that purpose. The tes- timony is being very carefully prepared and will deal with such questions as the need of a mini- mum living wage, the relation of la- bor to the opera- tion of street railways, etc. The report of the Federal Com- mission hearings which appeared in last week's is- sue carried through part of the Wednesday morning sitting, and gave part of the testimony of William C. Bliss, chairman Rhode Island Public Utilities Commission. Mr. Bliss had pointed out the great difficulties which had been brought about through the awards of the War Labor Board without regard to the ability of the com- pany to pay. He felt that this attitude of the War Labor Board was entirely unjustified. Questioned if the failure to secure an increase in wages would not have acted anyway to drive the em- ployees to other lines and have killed the utility from lack of help, Mr. Bliss stated that the federal author- ities should have endeavored to revive the patient first and granted the increase when it could be borne. If they were going to kill the patient they should at least have done it mercifully, and not tortured him to death. He could not reconcile an award which granted not only a $1,250,000 per annum increase, but also back pay in the sum of $800,000, and this when the company did not have any money with which to meet it. He said that Caught unaware, their faces register how difficulties. Chairman Elmquist has exposed railways' burden. Tlie other g'entleraen are Commissioners Beall, Gadsden and Sweet. the only way the Rhode Island Company has con- tinued to operate was by not paying its State and municipal taxes. Mr. Bliss pointed out that federal intervention in the affairs of the Rhode Island Company through labor awards, -fixing of coal and freight rates, etc, had imposed an increase in the 1918 operating costs of $1,605,959 out of a total increase from all causes of $2,190,978. The company now faced a deficit in 1919 of $2,111,578 short of paying operating expenses and taxes. The limit of remedy which may be de- rived from in- creasing rates will soon be reached if it has not been already. The witness fur- ther reflected that it is unfair to make the man on the car contribute all of the in- creased operating cost. This policy he thought was driving pat- r 0 n a g e away from the trolley, and permanently, for it was finding other expendients of transportation and not return- ing. He thought the eighteen-day strike had had a permanent effect of this nature. Zenas W. Bliss, receiver Rhode Island Company and chairman of the State tax commission, took the stand at this time and very briefly told the commission of the tax laws in Rhode Island. He said that the combina- tion of city, county and State taxes in Providence made an assessment of 12i per cent of the gross receipts of the traction company. The tax commission had recom- mended the elimination of franchise and paving taxes, but having only advisory power, this had not been ac- complished. This commission believed the property tax should be retained as this relieved the security holders of the necessity to pay a tax and increased the value of the securities. Some improvement could be expected if a central tax authority were provided to have jurisdic- tion over, for instance, the determination of the tax on the Rhode Island Company in the twenty-six munic- ipalities in which it operates. Some equalizing in- fluence was needed on the tax appraisals. Mayor Charles B. Gillen of Newark then took the earnestly they have sought the fundamental back that looks capable of carrying the August 23, 1919 Electric Railway Journal 375 stand and testified briefly about the jitney service in his city, stating that the car service had become so poor that the introduction of some other form of trans- portation was necessary. He said the trouble with the street car problem was the large amount of water in the capitalization and that the Public Service railway system had $100,000,000 of water and only $60,- 000,000 of real value. Newark lines were profitable, he said, but they had to help pay the cost of operating all of the unprofitable lines running all over the State, for which the company was paying high rentals. The value of $60,000,000 was the figure arrived at by Delos F. Wilcox and Mark Wolfi", he testified upon cross-examina- tion. Delos F. Wilcox, who followed the Mayor, occupied the stand from about 11. .SO a. m. through the afternoon and evening sittings and until 11 p. m. He began his testimony by pointing out the contrast in financial con- ditions between the municipally-owned tramways of Britain and the privately-owned properties of the United States. The only cities of any considerable size in Britain which do not have municipally-owned tram- ways, are Bristol and Dublin, and the London bus line and London underground, these being private cor- porations. It was pointed out that one of the principal distinguishing points between the British properties and the American companies was that the process of electrification of the tramways in Britain had been done subject to the dictation of public policy rather than in the interests of private corporations. In this country the bankers and syndicates which got control of the street railway utilities, in 90 per cent of the cases, Registration at the Federal Electric Railways Commission Hearings for the Public Side William D. B. Ainey. chairman Public Service Commission of Pennsylvania, Harrisburg, Pa. ; Aug. 14, 15. W. R. Alberger, vice-president and general manager, San Fi an- cisco-Oakland Terminal Railways Company, Oakland, Cal. ; Aug. 11, 14. J. H. Alexander, vice-president Cleveland (Ohio) Railway; Aug. 13. J. R. Alpine ; Aug. 13. P. S. Arkwright, president Georgia Railway, Light & Power Company, Atlanta, Ga. ; Aug. 14, 15. Perry Arnold, a. E. R. A., New York, N. T. ; Aug. 14. S. S. ASHBAUGH;, attorney, counsel for American Association in mail pay case, W^ashington, D. C. ; Aug. 11. W. A. AtsEj Congressman, Washington, D. C. ; Aug. 15. Rodger AV. Babson, statistician, Boston, Mass. ; Aug. 11. A. N. Barber, secretary Board of Public Utility Commissioners of New Jersey, Trenton, N. J. ; Aug. 11. H. W. Barnum, general counsel Boston (Mass.) Elevated Rail- way; Aug. 13, 14, 15. A. C. Beck^ Columbus Railway, Light & Power Company, Colum- bus, Ohio; Aug. 14, 15. L. J. Beecher, Detroit Journal, Detroit, Mich. ; Aug. 12, 13. . J. E. Benton, solicitor Interstate Commerce Commission, Wash- ington, D. C. ; Aug. 14. C. P. Berms, W^ashington, D. C. ; Aug. 12. William C. Bliss, chairman. Public Utilities Commission of Rhode Island, Providence, R. I. ; Aug. 12, 13. Zbnas W. Bliss, receiver Rhode Island Company, Providence, R. L ; Aug. 12, 13. S. R. Bowen, vice-president Washington Railway & Electric Com- pany, Washington, D. C. ; Aug. 11. A. W. Brady, president Union Traction Company of Indiana, Anderson, Ind. ; Aug. 13, 14. W. G. Brasher, chairman Railroad Commission of Arkansas, Little Rock, Ark. ; Aug. 11, 12. Harry L. Brown, Electric Railway Journal, New York, N. Y. ; Aug. 11, 12, 13, 14, 15. J. D. Burks, National Industrial Conference Board, Boston, Mass. ; Aug. 12. William P. Burr, corporation counsel. City of New York ; Aug. 14. B. B. BuRRiTT, secretary American Electric Railway Association, New York, N. Y. ; Aug. 11, 12, 13, 14, 15. P. P. Campbell; Aug. 15. R. F. Carbutt, engineer Henry L. Doherty & Company, New York, N. Y. ; Aug. 14, 15. D. S. Carll, vice-president Capital Traction Company, Washing- ton, D. C. ; Aug. 11. M. J. Chiesa, Rome, Italy; Aug. 12, 15. Harlow C. Clark, A. E. R, A., New York, N. Y. ; Aug. 11, 12, 13, 14, 15. William L. Clarke, assistant secretary and treasurer Washing- ton Railway & Electric Company, Washington, D. C. ; Aug. 11. W. M. Clayton, attorney, Washington, D. C. ; Aug. 12, 13. B. C. Cobb, vice-president Hodenpyl, Hardy & Company, New York, N. Y. ; Aug. 11. H. L. Cobb, United Press ; Aug. 14. H. A. Cobb, Captain U. S. A., Scranton, Pa. ; Aug. 14. A. T. Connell, Mayor, Scranton, Pa. ; Aug. 14. Thomas Cooper, Westinghouse Electric & Manufacturing Com- pany, Philadelphia, Pa. ; Aug. 11, 12. A. P. Couvier; Aug. 12. James Couzens, Mayor, Detroit, Mich. ; Aug. 12, 13. Robert Dougan, Press ; Aug. 11, 12, 13, 14, 15. A. H. Ferrandou, Washington Railway & Electric Company, Washington, D. C. ; Aug. 11, 12, 14, 15. Irving Fisher, professor of economics, Yale University, New Haven, Conn. ; Aug. 14. W. J. Flickinger, assistant to president The Connecticut Com- pany, New Haven, Conn. ; Aug. 12, 13. John P. Fox, transit expert. New York, N. Y. ; Aug. 11, 12, 13, 15. C. P. GiLlen, Mayor, Newark, N. J. ; Aug. 13. M. H. Glazer, Electric Railway Journal, Washington, D. C. : Aug. 11. L. L. Goodman, Detroit News, Detroit, Mich. ; Aug. 12, 13. C. A. Greenridge, chief engineer The J. G. White Management Corporation, New York, N. Y. ; Aug. 14. T. L. Hall, chairman Nebraska State Railway Commission, Lin- coln. Neb. ; Aug. 13, 14. E. K. Hall, Electric Bond & Share Company, New York, N. Y. ; Aug. 15. J. H. Hanna, vice-president Capital Traction Company, Wash- ington, D. C. ; Aug. 11, 15. A. E. Helm, counsel Public Utilities Commission of Kansas, To- peka, Kan. ; Aug. 15. R. T. Higgins, chairman Public Utilities Commission of Connec- ticut, Hartford, Conn. ; Aug. 12. W. V. Hill, manager Washington office A. E. R. A., Washington, D. C. ; Aug. 11, 12, 13, 14, 15. A. S. Hills, secretary Utilities Publication Committee, Washing- ton, D. C. ; Aug. 11, 12, 13. AV. HuGGiNS, commissioner Public Utilities Commission of Kan- sas, Topeka, Kan. ; Aug. 15. F. F. Ingram, manufacturer, Detroit, Mich. ; Aug. 12, 13. DuGALD C. Jackson, professor of electrical engineering, Massa- chusetts Institute of Technology, Boston, Mass. ; Aug. 14. M. M. Jackson, attorney representing Mayor Key of Atlanta, Ga. ; Aug. 14, 15. S. P. Jones, Minneapolis, Minn. ; Aug. 11, 12, 13. C. J. Joyce, Philadelphia (Pa.) Rapid Transit Company: Aug. 14, 15. C. S. Kimball, engineer of way and structures Washington Rail- way & Electric Company, Washington, D. C. ; Aug. 11. C. W. KUTZ, lieutenant-colonel of Engineers, engineer-commission- er, Public Service Commission, District of Columbia ; Aug. 11. W. R. McCallum, The Evening Star, Washington, D. C. ; Aug. 11, 12. Gre.ntville S. MacFarland, lawyer, Boston, Mass. ; Aug. 14. Fred J. MacLeod, chairman Public Service Commission of Massa- chusetts, Boston, Mass. ; Aug. 15. F. W. Marvel, sales engineer the Buda Company, New York. N. Y. ; Aug. 12, 13. T. A. Mellen, manager of transportation United States Housing Corporation, Washington, D. C. ; Avig. 12. D. M. Moore, assistant engineer Washington Railway & Electric Company, Washington, D. C. ; Aug. 11. C.\RL H. Mote, secretary Public Service Commission of Indiana, Indianapolis, Ind. ; Aug. 12. F. B. Musser, president Harrisburg (Pa.) Railways; Aug. 15. Lewis Nixon, Piiblic Service Commissioner of New York, New York, N. Y. ; Aug. 14. H. H. NoRRis, associate editor. Electric Railway Journal, New York, N. Y. ; Aug. 11, 12. R. L. Norton, Boston Post, Washington, D. C. ; Aug. 15. John H. Pardee, president American ISlectric Railway Associa- tion, New York, N. Y. ; Aug. 11, 14, 15. A. W. Payne, Washington Times, Washington, D. C. ; Aug. 11. J. W. S. Peters, lawyer, Washington, D. C. ; Aug. 13. Garfield J. Phillips, examiner Public Service Commission of Pennsylvania, Harrisburg, Pa. ; Aug. 14, 15. H. B. Potter, assistant general manager Boston (Mass.) Elevated Railway Company; Aug. 11, 12, 13, 14. William F. Rhea, State Corporation of Virginia, Richmond, Va. ; Aug. 11. Lobebt St. Clair, Barron G. Collier, Inc., New York, N. Y. ; Aug. 12, 13, 14, 15. Fielder Sanders, city street railroad commissioner, Cleveland, Ohio ; Aug. 15. T. H. Saville, city councilman, Scranton, Pa. ; Aug. 13. J. N. Shannahan, president Newport News & Hampton Railway, Gas & Electric Company, Newport News, Va. ; Aug. 12. R. D. SIMMS, Capital Traction Company, Washington, D. C. ; Aug. 14, 15. A. J. Simmott, Newark News, Newark, N. J. ; Aug. 13. K. K. Simpson, Associated Press ; Aug. 11. Charles P. Swope, secretary to Senator Bois Penrose, Washing- ton, D. C. ; Aug. 15. C. L. S. Tingley, vice-president American Railways Company, Philadelphia, Pa. ; Aug. 11, 12, 14. John J. Walsh, lawyer and State Senator (member of street railways committee), Boston, Mass.; Aug. 15. Bentley W. Warren, counsel A. E. R. A., Boston, Mass. ; Aug. 11, 12, 13, 14, 15. B. T. Weadock, attorney Detroit (Mich.) United Railways; Aug. 12. J. W. Welsh, statistician A. E. R. A., New York, N. Y. ; Aug. 11, 12, 13, 14, 15. R. W. Westcott, Camden, N. J. ; Aug. 14. George Weston, consulting engineer Philadelpliia (Pa.) Rapid Transit Company; Aug. 13, 14. T. S. Wheelwright, president Virginia Railway & Power Com- pany, Richmond, Va. ; Aug. 11. William Wierth, city councilman, Scranton, Pa. ; Aug. 13. Delos F. Wilcox, public utility expert. New York, N. Y. ; Aug. 13. S. E. Wolff, Hodenpyl, Hardy & Company, New York, N. Y. ; Aug. 11. 376 Electric Railway Journal Vol. 54, No. 8 made electrification the excuse for doing all they could to wreck the street railway business. The result is that the only way out of the difficulty to-day is to bring about an almost universal "housecleaning" in order to get the industry down to a sound basis of capitalization. Glasgow, the witness pointed out, has paid off every dollar invested in the property, so that the transporta- tion system has no fixed charges, and in addition a large amount has been set aside for depreciation each year. The Liverpool system has paid off about one-half of its debt, and in addition has accumulated a 60 per cent depreciation fund. This policy of the British tram- ways was contrasted with that prevalent in the United States where, the witness said, the rule seems to be that there should be no reduction in capitalization ex- cept that forced. The capital account is kept as large as it can be and still worry along. Under state regu- lation, even, the capital account has been increased rather than decreased, the difficulty here being that the ?f,ate commissions have had jurisdiction over future securities and not over past issues. Another i-eason has been that the commissions have had no jurisdiction over the holding companies which have sprung up everyAvhere to finance the utilities. So the process of piling up capital has gone on. The stocks of the con- trolling companies, if not of the operating companies, have been sold, but the effect has been the same. Fare Collection Systems Compared The second characteristic distinguishing the British tramways from the American street railways, the wit- ness pointed out, was the system of fares adopted. Tn Great Britain the fares are arranged according to the distance traveled. Low fares are charged for short rides, while the fares for long rides are not high be- cause of the low initial charge. This v/as contrasted with the flat fare scheme which has been cultivated in this country. In this connection it was pointed out that in Glasgow for the year ending March 31, 1918, the tramways had received more than 40 per cent of all the revenue collected, from passengers who paid ] cent, and only between 2 and 3 per cent of the pas- sengers paid as much as 5 cents of our monej'. A .similar showing had been made in Liverpool. The witness then pointed out the disappointing re- sults which have been obtained from increases in the flat fare in this country, and stated that in many in- stances the companies have been so hard pressed for funds that they would adopt any means offered for in- creasing the revenue even if it meant that 50 per cent of the passengers would be lost, and irrespective of the ultimate effect. To make more clear these comparisons of the British and American street railways, Mr. Wilcox presented the accompanying table comparing the operating re- sults of the Glasgow tramway system with the Public Service Railway of New Jersey, making numerous al- lowances in order to reduce the two widely different properties to an approximately equal basis. Commis- sioner Beall interrupted the direct statement of the Avitness to question the reasonableness of the compari- son, with such widely differing properties. Mr. Wilcox agreed that even with the adjustment he had made, it would still be necessary to make veiw large allowances or mental reservations, when looking at the apparent advantages indicated by the Glasgow system. Even with these allowances in mind, he thought that the re- sults pictured by the table were most enlightening, and would have to be discounted tremendously to explain away the better showing of the foreign company. Chairman Elmquist asked the witness if it were not true that the labor cost in Glasgow was very much less than here. Mr. Wilcox replied that the British labor rates generally were now about where ours were at the beginning of the war, and Commissioner Gads- den asked if it were not true that up until almost one year ago the British rate was about 15 cents an hour as compared with our maximum of 38 cents, to which the witness agreed. Asked about the night and Sunday service, Mr. Wilcox said he was unable to answer about the details entering into these results, having never been to Glasgow and having based his statement entirely upon the studies made by Walter Jackson for the Electric Railway Journal. The witness then pointed out that the Liverpool sys- tem had also been prosperous and that it had carried 130,000,000 passengers per year at the beginning of the war, and 195,000,000 during last year. The aver- age revenue per passenger was 2.37 cents and only 2.2 per cent of the passengers paid a fare as high as 5 cents or more. The number of passengers per car- mile was 15.98, and the total track mileage of the sys- tem was 124. The net debt of the company still out- standing is $18,667 per mile of track. Questioned if the people of this country would toler- ate such small mileage, the witness said that conditions in the two countries perhaps represented the two ex- tremes, but he thought that the small mileage was not necessarily an attribute of municipal ownership and called attention to the extent to which the San Fran- cisco municipal railway is being built up. GLASGOW MUNICIPAL TRAMWAYS COMPARED WITH PUBLIC SERVICE railway SYSTEM WITH RESPECT TO TRAFFIC, REVENUES, CAPITALIZATION, ETC. Glasgow data taken from annual report for year ended Service railway data taken from annual report filed with Bi Commissioners for calendar year, 1918, and other exhibit; Railway rate case. Item Population served Passengers carried Rides per capita Total passenger revenue Averagefare paid by passengers, cents. . . . Proportion of passengers paying 5 cents more, per cent Car-miles run Passengers per car-mile Kilowatt-hours per car-mile Mileage of main track Net debt per mile Net capital stock per mile Passengers per mile, main track Passenger receipts per mile of main track . . May 31, 1918. Public oard of Public Utility in the Public Service Public Service Glasgow Railway 1,150,000 2,111,955 (1915) 430,946,566 404,991,768 (1) 375 192 $6,833,102 $19,102,346 1.56 4.72 2.25 76.22 26,261,231 53,250,832 16.41 7.61 1 56 3.73 198.25 790.23 Zero (2) $105,367 (3) Zero (2) $97,756 (4) 2,173,753 512,498 $34,416.60 $24,173. 15 Construction cost of Glasgow system, including power plant, shops ' and everything complete $ 1 8,798,968 Capitalization of Public Service Railway system $ 1 60, 5 1 4, 1 50 Construction cost , Glasgow system, per mile of main track $94,825 (T'apitalization, Public .Service Railw ay system per mile of main track $203,123 Construction cost, Glasgow system, per passenger carried (in a year), cents 4.36 Capitalization, Public Service Railway system per passenger carried (in a year), cents 39.67 1. This is the number of passengers paying initial fares as estimated by the company in its zone report (Exhibit P-3 1 6, page 1 45) , plus the number of transfer passengers. In Glasgow-, where the zone system is in effect, no transfers are given. Thus the number of passengers carried means in each city the number of separate car rides given to passengers other than "deadheads." 2. The Glasgow tramways were acquired by the city in 1894, and were soon thereafter electrified. The entire bonded indebtedness was paid off out of earnings by 1917, and up to May 31, 1918, the tramways had contributed $4,781,000 to the "common good" for the relief of taxation. Of this amount $864,000 was con- tributed in 1918. The tramways also pay taxes directly, which in 1918 amounted to $380,867, the equivalent of 5.57 per cent of gross receipts, as compared with 8 per cent paid by the Public Service Railway. 3. Includes with bonds the sum of $1,169,1 18 advanced by the United States Shipping Board for extensions and additions in 1918; also $150,000 bonds of Paterson State Line Traction Company, a subsidiary whose trackage is included in the Public Service Railway system. 4. Includes with capital stock, $3,475,347 of capital supplied by Public Service Electric Company, upon which the Public Service Railway pays a fixed charge of 6 per cent per annum. August 23, 1919 Electric Railway Journal 377 Turning his talk to the subject of over-capitalization and intercorporate complexities, Mr. Wilcox cited the detail history in these respects of several companies. He believed that the hatred of the public toward the street railway companies was the result very largely of stock manipulations. He thought there was no other way to overcome this public attitude and continue private operation and ownership except to reduce the business to a sound finan- cial basis. Even that may fail, he thought, for transpor- tation is so much a public function and in such a vital way that any private company producing this service is likely to be looked upon as a great source of corrup- tion. Despite this feeling of the public, Mr. Wilcox said that the com- panies should not be "soaked" with taxes, that the mischief had been done and it was difficult to undo, and heaping on taxes would not solve the situa- tion. While the witness said he did not criticise state regulation, he thought that the setting up of state commissions had brought about two con- flicting forces acting upon the street railways in many cities, re- sulting in a bad conflict between city and state bodies which was not getting any- where. Contracts and settlements entered into by the city were not per- manent in view of the power of the state commission to interfere. He believed that in general it was de- sirable that the state commission should control the issuance of securities, the accounting methods and re- ports, and those car lines not subject to municipal con- trol. But he was very strongly of the opinion that the urban community should have absolute control of the service and rates, and whether there should be a flat fare, a zone fare system, a subsidy, etc. He answered in the affirmative a question from the commission as to whether the state commission should have appellate jurisdiction over the valuation of a property, but he thought that the city should also have the privilege of contesting the value with the company, before the commission. Four Fundamental Problems Mr. Wilcox was of the opinion that the difficulties of the industry could be reduced to four fundamental questions as follows: 1. Should the character of street railway investment be speculative or non-speculative? 2. Should the business be conducted primarily for Just emerging from a hearing, ("liairniai seen in chai'acteristic attitude, taliving ov( tered tlie presence of beautiful background. profit or primarily for service; which motive should predominate? 3. Should continuity of service obtain? 4. Shall the business be conducted by the public or by private interests? On the first question, Mr. Wilcox thought that the investment should be non-speculative. This meant that the first step in bringing about such a condition would be to determine a sound valuation and then adopt a sys- tem of fares which would be flexible in order to permit of the permanent integrity of the investment. The plan must involve the physical upkeep of the property and in- sure against ruinous competition. It requires that the in- vestment shall continue in service until paid off and in- volves the necessity to amortize at least a part of the capitalization i n order to keep the capital account well within the present physical value at all times. If the rate of re- turn is fixed, the witness thought that this rate need be only rela- tively 1 0 w and that the rate of return did not need to be changed on money once in- vested. It might, however, be nec- cpssary to vary the rate for new capital in order to meet the con- ditions of the money market. If it is necessary for a company to sell its securities at a discount, he thought allowance should be made for this discount, but it should be done by amortization and not by put- ting it into the capital account. On question 2 Mr. Wilcox said that service should be the controlling motive at all times and that the ex- igencies of profit should not in any event determine the policy. The rate of fare should be determined by the best interests of the community from the social point of view, if necessary making up deficit out of taxes rather than to prescribe rates which would work to preclude the use of the transportation for some people. On question 3, as to the continuity of service, Mr. Wilcox stated that some means must be devised to prohibit strikes, and that effective arrangements for bringing about a settlement without a strike must also be provided. He thought that employees should be en- couraged to organize and that public utility operatives would get along better if they were permitted to par- ticipate in the active management of the utilities. The responsibility for hours, wages and conditions of labor must be fi.xed by the public, for the public has such a primary and responsible interest in these things that it must have control. Elmquist and \'ice-Cliairman Sweet are • some point. The camera has also regis- 378 Electric Railway Journal Vol. 54, No. 8 On the question of public or private operation, the witness had come to the conclusion that no solution of the present difficulty was possible unless we turn to public ownership and operation, for the industry was essentially a public function. The irreconcilable con- flict between company and public interests tends toward corruption, and he thought that the public would not stand for the tax exemptions and other conditions nec- essary to permit the private company to operate at a profit. He thought that state regulations had in large measure broken down, the present condition of the in- dustry being proof of that, and that this had resulted in increasing the differences in the conflict between municipal and state jurisdiction. The cost of new cap- ital under private ownership is becoming prohibitive. ■Greater risk must necessarily involve a higher rate of return. Mr. Wilcox said that even if 8 per cent were allowed on the present capitalization of private com- panies, the cost of new money would be at least double what it would be under public ownership. Referring to profit sharing and service-at-cost franchises under pri- vate ownership and operation, Mr. Wilcox believed these resulted in the loss of the good features of private ownership without gaining the advantages of munici- pal operation. Jn the New York situation, he said that the prelimi- nary requirements would be the pooling of all com- panies into a single interest in order to make effective an increase in fare to any of them, but such an increase in fare is distinctly contrary to the policy to which the city has committed itself. It has spent $250,000,000 of its own money to insure the 5-cent fare and has nearly broken its back financially as a result. To grant an increase in flat fare would be a reversal of policy. Asked by Commissioner Gadsden if the city could not mend its back and its policy at the same time by granting an increase in fares, Mr. Wilcox re- plied that he was not sure for before the city could receive any benefits from the increased fares, the Inter- borough Company's preferential contracts would absorb all of the increase in revenue for a long time to come. Mr. Wilcox's Solution Asked by the commission what recommendations he would make then, for the solution of the difficulty, Mr. Wilcox said he would first clear the air by a plain dec- laration for municipal ownership. He would have all of the states enact the necessary constitutional amend- ments to provide the power to the municipalities. He would likewise have legislation providing power to the municipalities to realize their own full power of credit. Commenting on how Seattle purchased its street rail- way system, the witness pointed out that the Wash- ington law not only permitted acquisition, but provided for the issuance of bonds outside of the debt limit by securing these bonds by a first lien on the gross earn- ings rather than on the property itself. That is re- versing the usual process of dividing the gross earnings. On this basis the City of Seattle has issued 5 per cent bonds, but Commissioner Beall interjected that he un- derstood that these bonds could not be sold. Mr. Wilcox would also have a law to provide that the property be acquired at a price fixed by an intel- ligent tribunal which would give due regard to the franchise obligations. He said the people were averse to condemnation proceedings. In carrying out the plan to acquire for municipal ovraership and opera- tion, the witness said he would be very careful that the right procedure was being followed, but that in any event the plan should be carried out. He added that legislation creating state commissions where they did not now exist was also desirable and that the zoning plan of fare collection might well be adopted. He would install a zone system where the 5-cent flat fare is not adequate. He would operate motor buses as feeders to the electric lines, but not as a complete system in themselves, citing that this feeder plan was now being utilized in San Francisco. It forms an admirable way of handling the outlying thin traffic. Speaking of the jitneys, Mr. Wilcox said that it was very difficult to regulate them because public senti- ment favored their operation, particularly where they were willing to carry people for 5 cents, with higher street car fares. While he did not believe in competi- tive systems, he did not think that the people would stand for such rigid regulations as would force them off the streets. He agreed, however, that under munic- ipal ownership jitney bus competition would not be permitted. He pointed out that in New Jersey the jitneys seem to be carrying a larger proportion of non- rush-hour traffic than of rush-hour traffic, and that they were therefore deadly competitors. In the Public Service Railway territory, the jitneys are carrying 80,000,000 pasengers a year, or approximately 20 per cent of the total traffic. In Newark the returns show that from May, 1918, when the company had a 5-cent fare in effect, until May, 1919, when a 7-cent fare was being collected, the jitneys showed a 107 per cent in- crease in traffic, while the Public Service traffic fell off 7 per cent. As to the future, the witness believed that both methods could not live together and that the jitney system could never be adequate in large cities, though it might suffice and win out in cities of 100,000 popula- tion or less. The witness expressed the opinion that street rail- way stocks should be issued under a municipal guar- antee, whether the property was municipally operated or not, for it was cheaper for the city to do this than to have some one else take the risk. He said the public would probably not make such a contract unless with a service-at-cost franchise it could be sure of a corre- sponding reduction in the cost of the service. Municipal contracts should not be abrogated until the value of the property has been fairly determined, subject to the terms of the contract. He pointed out that franchises are now a liability and not an asset as they had been in years before. This fact should be considered to the advantage of the city in arriving at any valua- tion. In other words, the municipality should hold to its bargain, perhaps tempered somewhat. What was a good franchise to sell the city, should now be a good liability to trade on. Discussing the rate of fare, the witness stated that it should never be increased to the point of driving away traffic. Questioned about transfers, he said that the free transfer was part of the theory of the flat fare, but that with a properly worked out zone system he believed no transfer was necessary. He then discussed the plan of the zone system which is about to be carried out by the Public Service Railway of New Jersey (fully described in the Electric Railway Journal for Aug. 9, 1919) and mentioned how this company had considered a stand-by charge and a movement charge m arriving at the proper rate. He said he could justify a stand-by charge for such utilities as supply water, gas, electric light, telephone, etc., but he could not for August 23, 1919 Electric Railway Journal 379 street railway service. The difficulty here was that the same passengers continued to pay the stand-by charge over and over again, while the person who very rarely used the service, and for whom the stand-by charge was justified, paid this charge only on rare occa- sions. When it was brought out that 3 cents was to be the initial charge in the Public Service zone plan, and that this covered a ride of one mile. Dr. Meeker of the commission expressed the belief that this charge was so high for the length of ride that very few people would ride. Asked about the applicability of one-man cars, Mr. Wilcox said that he believed they could be used to great advantage on 65 to 70 per cent of the trackage of the country. Questioned on the value of the skip stop, he said that it did not warrant much considera- tion in the gen- eral solution of the difficulties, for in the smaller towns where the service is com- paratively infre- quent, a skip stop would tend to make the service more inconve- nient and would thereby lose traffic. He con- ceded the skip stop to have some value in large cities, but said he believed it could easily be over- done. In reply to a question from the commission, Mr. Wilcox said that he did not know how the "housecleaning" of which he had spoken could be brought about except through receiverships,, and this would only bring the desired result provided a plan beyond the receivership was well worked out in advance. He thought that municipal ownership could be brought about quite soon, but that the question was as to whether it would be brought about right. Dr. Meeker asked if a receivership was not a very expensive pro- cedure, like burning down a barn to get rid of the rats. Mr. Wilcox answered that it might be made the agent to bring about a proper basis of capitalization on which to permit the company, through a service-at-cost fran- chise, to earn a reasonable return. In answer to further questioning from the commis- sioners, it was brought out that' Mr. Wilcox favored the indeterminate permit, provided that a plan of amortiza- tion of capital out of earnings was included as a condition. He said he could not get away from the conviction that ultimately the ownership of the street railways must be vested in the public, and if that were true, any policy which prevented the city from making a start should not be entered into. As to the best solution possible under private ownership, the witness said that this was undoubtedly the service-at-cost Hon. Wm. D. B. Ainey, who gave tlio i' friend Frank B. Musser, president of tlie ra: our impromptu stage at the moment we si§ picture. franchise with a provision for purchase by the city provided that the state legislature supplied the enabling acts to make this actually possible at any time the city found it necessary to take over the property. He then mentioned again the difficulty which the holding companies placed in the way of consummation of such a plan. He said that these holding companies enter into arrangements which are not binding upon the operating company, yet form a hidden control which does not leave the operating company a free agent to carry out "what is best for the city in the way of service. Municipal authorities are not permitted to look at the books of the holding company, so that there exists a hidden power which cannot be investigated. This same situation exists when a utility is owned by an individual, it was pointed out by Commissioner Gadsden. Refer- ring to the state- ment of the wit- ness on the con- tinuity of service, one of the com- missioners asked him to explain further how he would prevent strikes. He said that he thought it would be possible to provide a law which would make it a penal offense for the employees of any essential industry t o conspire t o stop the work. This would not in any sense take away the right of the individual to resign. Mr. Wil- cox pointed out that the real problem was to get a plan which would remove the legitimate cause for the strike, so that labor would feel that it was properly taken care of in the public estimation. Asked by Commissioner Sweet whether in his opinion it would not be better for the commission to recom- mend a general adoption of the Cleveland plan, as- suming that a satisfactory appraisal would be made and the necessary enabling legislation provided to make purchase possible, than to attempt now to secure munic- ipal ownership at one jump, the witness replied in the affirmative. He said the preparation for municipal ownership cannot be done overnight, and that mean- time the service must be continued and that the service- at-cost plan probably offered the best intermediate procedure. Thursday's Sessions Commissioner Lewis Nixon of New York was the first witness to take the stand Thursday morning. He declared it to be his belief that municipal ownership would come in the fullness of time in New York. He said it would be extremely difficult to take over the property at this time and that legislation was ■ nimis.=;ion much food for tlifiughl. and his Iway in Pennsylvania's capital, occupied nailed the camera man to "shoot" this 380 Electric Railway Journal Vol. 54, No. 8 necessary in order to clarify what the city could do. The contracts between the companies and the city are very clear, he said, and while the city authorities think that the companies should retire if they find it impossible to live up to their contracts, any such voluntary arrangement is impossible because if it were undertaken the stockholders would immediately bring about a receivership. Commissioner Nixon pointed out also that any plan of relief for the companies which involved an increase in fare could only be brought about by the companies relinquishing the contracts which they now hold and which are for a perpetual grant, and accepting in lieu thereof a new grant with a definite term. This is necessary because of the new city charter, which makes the granting of perpetual contracts an impossibility. Mr. Nixon began his testimony by a brief review of local conditions in New York, touching upon the recent Brooklyn strike and the efforts which had been made toward securing relief for the surface lines by the granting of a transfer charge. He also mentioned the extreme congestion which is suffered in New York and said that the demands for transportation were far in e.xcess of any engineering ability to meet them. He pointed out that the prime reason for the present difficulty was because of the high costs of labor and material and that the limiting of fares by franchise had made it impossible for the companies to meet the situation. Asked if the New York companies could operate on a 5-cent fare if they were all consolidated^ he answered in the negative. It would simply save a few large salaries but these form such a trifling part of the several hundred millions of annual revenue in- volved that the saving is insignificant. Commenting upon the great need for a sound valua- tion of all the transportation utilities in New York, Mr. Nixon said that he would like to see a board made up of members of such unquestioned integrity that when they had completed any valuation, the results would be acceptable to all, and would thereby provide a remedy for the present status of appraisals, adding that such a thing as an unquestioned valuation had never been made. Asked if there was any jitney competition in New York, Mr. Nixon said that it had been carefully esti- mated that the companies lost about .$12,000,000 a year in revenue to the jitneys, which operated in some suburbs. He said, however, that this was rather welcomed for the volume of traffic was so great that the demand on all systems of transportation was over- whelming. Zone F.\re Plan Politically Barred IN New York In reference to the application to New York of the zone fare system, Mr. Nixon said that the present contract prevented its adoption. He said that he had studied it thoroughly and that it seemed to be the most equitable and logical way of collecting fares, but at the same time he hoped to see it possible to maintain the 5-cent flat fare. He could not defend the justice of the 5-cent fare, he said, but there is so much staked on the plan of the flat fare in New York that he did not believe it was possible to bring about a zone system. He then made the statement that with the return of normal times and the completion of the great subway system, and with the vast volume of business increas- ing with the age of the system and the perfection of operation, that increases of earnings will come into play to such an extent as to make possible a fare of less than five cents. He anticipated that it would be possible to sell 12 tickets for 50 cents, with free transfers, in three to four years, provided that a give and take settlement was brought about. He said, how- ever, that under present conditions of strife he was unable to look forward to any reduction in fares. In answer to a question from one of the commis- sioners, Mr. Nixon said that he believed the Cleveland plan, with some modifications, could be applied in New York, and that he looked upon it as the most hopeful solution he could see. Such a plan would have to be based on a unit corporation basis, and he believed that consolidation would come about in time as a matter of common sense. Such a step would hurt some of the companies and help others. In speaking of the service- at-cost plan, he said that he favored it without any hostility to municipal ownership, this latter plan being simply impossible now. Transportation is a public service of such deep vital interest to the public that it must not be held up by strikes. Some practical way of preventing them must be developed, and in this respect, Mr. Nixon .saw better conditions ahead for he believed that labor was beginning to assume a better attitude toward its re- sponsibility as evidenced by the recent strike on Staten Island where the union leaders refused to permit the men to strike since they would violate a contract in so doing. He thought that if the labor organiza- tions were brought into a full understanding of the vital necessity for continuity of such services to the public, they would not take advantage of their power and would live up to contracts entered into. New York Will Fight to the Last Increase in Fares William P. Burr, corporation counsel, city of New York, began his testimony by asserting that the city had never been able to secure the complete financial history of the traction interests in New York and that complete data were necessary before any progress toward a solution could be made. He said that Stone & Webster had been employed to make a complete ap- praisal as a first step toward arriving at some basis of h-ettlement between the city and the companies. He then gave extensive figures showing the profits, rates of return, etc., of the New York companies and com- plained of the unwillingness of the Interborough Com- pany to retract one iota from the terms of its pref- erential contracts with the city. Mr. Burr spoke of the necessity which Mr. Nixon, had discussed, of the companies' relinquishing tlieir perpetual contracts and accepting fixed term contracts before any assistance could be secured in the way of increased fares. And in this connection he said that the city would fight to the last any change in the contracts now in force. He said it would pay a large city to operate its transportation system at a loss, if necessary, in order to give the people an opportunity to spread out and lessen the congestion which would result from high flat fares or from zone fares. He said that the final solution was not easy because of the- difficulties of the law involved, but that ways and means could be devised to make municipal ownership possible. He spoke of the great success with which the City of New York has operated its water system and from this drew the conclusion that the transportation system might be operated with equal efficiency and economy. August 23, 1919 Electric Railway Journal 381 He remarked that "the fact that the New York Rail- ways Company has twice been in bankruptcy does not speak well for the great men who have managed its affairs." Mr. Burr also commented upon the set policy in New York to maintain the 5-cent fare and the $200,000,000 investment of the city put behind that rate. He also referred to the broad development of the city based on the flat fare idea and emphasized the reticence the city had toward any change of policy. Getting at the Basis of the Trouble Irving Fisher, professor of economics, Yale Uni- versity, was the next witness to be heard. He said that he assumed the commission was interested in getting at the fundamental reasons for the present conditions, not only in the electric railway industry, but in every other busi- ness, and asserted that the inflation of our money was the prime reason. He said that the war was only indirectly the cause of present high prices through the influence it had had in causing a flow of gold to this country. He showed a series of charts which pictured the trend of prices after all of the previous wars of his- tory and brought out that not every war raises prices, nor do prices fall after every war. He was of the opinion that no dowmward trend of prices could be anticipated for a long time to come. During a very interestiiig discourse on the unwhole- some effect of our present money basis, he told of his plan for stabilizing the dollar by creating a dollar of variable weight and fixed value as a substitute for the present dollar of fixed weight and variable value. This plan was presented in the Electric Railway •Journal for April 19, 1919, p. 780. He pointed out that the evil of the fixed weight dollar was that many things, like the fixed street car fare, the wages of government employees and the salaried man in general, did not increase as the pur- chasing power of money decreased. He declared that 80 per cent of the unrest of the country is due to the depreciated value of money^ The populism agitation back about 1890 was due to the appreciation of money which was forcing the farmers who had mortgages against their farms into bankruptcy, and that it had disappeared as soon as money began to change its upward trend. To-day the opposite condition exists and Prof. Fisher prophesied that the bolshevism move- ment, which is the outcome of a long period of rising prices, will disappear in a similar manner with the stabilization of money. Speaking of the proper rate of return on capital in- vested in the street railway business, he said that if 6 per cent was a fair rate of return before the war, 12 per cent is the equivalent fair rate of return to-day. In other words, if a capitalization of $100,000,000 was William C. and Zenas AV. Bliss, not brothers, but both Rhode Islanders and closely associated for many years. William is cbaiiman of the Rhode Island Commission and as such has a finger on what Zenas does as receiver for the Rhode Island Company. Zenas is also chairman of the State Tax Board, so he must have to be Dr. Jeck\ l and Mr. Hyde in handling the tax of the R. I. Co. Photo bv Harris & Ewing, Washington, D. C. earning 6 per cent before the war, or $fi,000,000, this same rate of return at the present time was producing six million "little" dollars which was equivalent to only three million "big" dollars, or 3 per cent. He also pointed out that if the 5-cent fare was right in 1896, rhen the equivalent fare to-day would be 1-5 cents; or if 5 cents is a fair fare to-day, then in 1896, two cents would have been a fair rate, assuming that labor and material have trebled as have prices of commodi- ties.. Grenville S. MacFarland of Boston directed his tes- timony principally to the bad practices of private oper- ation and the desirability for municipal operation. He said that there was no remedy for the situation under private operation which could be acceptable unless it provided an increase in revenue. He said he had rather see a community suffer some loss under public ownership than to have the old practices under pri- vate ownership continued. These practices were sim- ply the inherent abuse re- sulting from an attempt to make private profit out of a public service necessity. The witness was of the opinion that the enormous private gains which have been made out of the stock manipulation of the street railways have had an im- portant bearing upon the increased living costs and that the elimination of all these corrupt practices through municipal owner- ship and operation would tend to reduce the costs. He believed municipal operation of the roads would be more efficient than private operation. Questioned by one of the commissioners as to what means of relief he would suggest for the industry meantime, while the long process of bringing about municipal ownership was being worked out, Mr. Mac- Farland replied that he thought "we ought not let the devil get well; make him act up to his profession." Chairman Elmquist asked if the commission should lecommend that, and Mr. MacFarland said that the commission should state that the patient was sick and that municipal ownership was the remedy, and if the medicine was taken to-day it would begin the cure sooner, and if put off until to-morrow, the medicine would have to be used in increasing quantity. He thought that the present evil was in private operation more than in private ownership, and that private owner- ship with public operation would probably bring about a satisfactory condition. In reply to questioning, he said he believed the Cleveland plan was the best sys- tem under private operation, but that it had worked v/ell because of special circumstances which would be hard to duplicate. T. L. Hall, chairman, Nebraska State Railroad Com- mission, took the stand Thursday evening and testified in great detail concerning the financial history of the Lincoln Traction Company, bringing out the intercor- porate complexities and illustrating the diflSculty which 382 Electric Railway Journal Vol. 54, No. 8 We spilled Secretary Burritt's ink tlie othei' day and so we're spilling some more here to malce up. George Weston is at his left and the chap liiding behind this well- known engineer is J. W. Welsh, statistician of the association. Harlow C. Claik at the right is trying to find his head with liis hat. Plioto by Harris & Ewing, Washing- ton. D. C. a commission faces in attempt- ing to deal fairly with the com- pany and the public under such c i r c u m- stances. He also referred to the attempt of the Omaha Company to place in effect a 6-cent fare on a n emergency waiting for a valuation of the property of pre- 1 i m i n a r y study by the commission, the matter having been carried to the supreme court of the state which remanded it to the commission, the latter holding that the company had sufficient surplus in material and operating funds to warrant the commission proceeding first to establish a proper valuation. Speaking of the labor problem, Mr. Hall said that the unions should guarantee labor without strikes, that the wage scale should be sufficient so that the men could establish savings accounts which should be de- jiosited with the company and used in operating, the company to pay dividends on these savings, the same as it does on its stock. In other words, the company must take labor into consideration in its earnings. Mr. Hall concluded his testimony by stating that he believed in public ownership, but that commission control should continue just the same. He thought that public owner- ship of the utilities would eleminate stock jobbing and manipulation. Mayor A. T. Connell of Scranton, Pa., made his mission that of informing the commission that he was dead against watered securities. He said that the Scranton company was trying to pay dividends on a total capitalization of $9,076,000, of which $3,800,000, Here you see the genial president of the American Associa- tion, John H. Pardee, leading P. S. Arkwright, president Georgia Ry. & Pwr. Co. off to lunch. The "gum-shoe pose" of Harlow C. Clark, at the left, must have been Inspired by something, but we absolve ourselves of all responsibility. according to Dr. Delos F. Wilcox, was water. Despite this inflation of capital, he said that the state commis- sion had granted the company a fare increase bringing the rate up to 7 cents cash and four tickets for 25 cents. Questioned as to whether he thought the paving charge against the company ought not be removed from the street car riders, he said that he did not, that the street cars did more damage to the pavements through the working of joints than any other vehicles. He thought this was a legitimate revenue which the city ought to get. At this point Mr. Ogburn, executive secretary of the Federal Commission, read a communication from the Central Labor Union of Kansas City, containing a resolution urging the Federal Commission to refrain from offering any help to the Kansas City company in its present financial straits until it should recognize the union. Friday's Sessions William D. B. Ainey, chairman, Public Service Com- mission of Pennsylvania, was invited to take the stand at the beginning of the hearing Friday morning. He confined his remarks very largely to a prepared state- ment which was read to the commission and which appears practically in full on a later page of this issue. During the course of his statements, Mr. Ainey ex- pressed his concern that the railway men had not placed before the public a clear, simple, direct statement of what they sought before the Federal Commission and what they could and could not do for the benefit of the public generally. He believed that the matter which has found its way into the public press has confused rather than clarified the minds of the people on the real issue. At this point Chairman Elmquist inter- rupted the witness and handed him a copy of the prepared statement submitted during the railway hearings by Harlow C. Clark, which Counselor Warren later explained was in effect a statement of the railway men's position. Asked by the chairman if this statement did not answer his criticism, Mr. Ainey replied that from a cursory reading of it, his mind ran in harmony with it, but he said it was not his mind he was speaking of, but the public mind, and that in this respect he would reply categorically that the statement by Mr. Clark did not meet his criticism. He said that there was not a single thought in Mr. Clark's statement which would clarify the mind of the Scranton mayor, for example, in the views he held. Then the witness reiterated the need for publicity, concerning the position taken by the railway men at the Federal Commission, of a most simple and direct character. He commented that un- fortunately the newspapers pick out only the radical and sensational expressions and that the results upon the average public mind of these piecemeal references to the hearings, carrying as they do a false impres- sion, have been detrimental rather than helpful in im- proving the public understanding of the problem. No one is so dependent upon the good will of the people as the railways, the witness pointed out, for they must have water, gas, and electricity, but when it comes to the street car ride, they have the alternative of walking. The railways thus occupy a different relation to the public than any other utility. The railway men may win the judgment and even commendation of the Federal Commission, but the judgment of this body will August 23, 1919 Electric Railway Journal 383 avail them nothing if the public is not thereby won as well. He said that in the interests of the railways he was exceedingly solicitous that they should state in a simple direct way that they wanted, what they could do, and what they could not do. As a specific example of the unfortunate publicity which has been spread over the country, he referred to Dean Coolej^'s statement that the best way to prove to the people the fallacy of municipal ownership was to encourage its adoption so that they might learn from experience how unsatisfactory it was and would then seek relief through a return to private operation. Dean Cooley's half joking reflex remedy would seriously be repudiated by every man, but Mr. Ainey said that it had won large space in the newspapers, and in fact much more space than any sound argument for or against municipal ownership would be given. During his direct statement, Mr. Ainey diverted to mention with words of praise the success with which the Philadelphia Rapid Transit Company has met the increasing costs of operation through studies which have developed economies and through the splendid morale of the employees without the necessity thus far to increase the fare above 5 cents. He suggested that the commission should invite a witness from this com- pany, and Chairman Elmquist asked him to suggest the name of some official of that company who could best present its accomplishments. Mr. Ainey said that he thought Mr. Joyce of the Philadelphia company, who was present, should supply that information, and it was understood that Mr. Joyce would later advise the commission on this question of the chairman. During the cross-examination, the commissioners took up further the discussion of the proper publicity, which Mr. Ainey had stated had not been obtained. Com- missioner Sweet asked the witness if he were right in interpreting Mr. Ainey's remarks to mean that what was desired was a plain declaration that the railways were not asking for a return on watered stock, etc., in order to counteract the extreme statements picked out for the headlines in the newspapers. Mr. Ainey agreed and added that the public does not know what is going on here, and is very likely to get an entirely erroneous notion of the hearing from the newspaper references. Questioned about the delay of commissions in render- ing decisions, Mr. Ainey replied that it was not always the practice to delay a decision in Pennsylvania until an evaluation could be made. He said the Pennsylvania commission had recognized the existence of an emer- gency and had fixed rates upon an increase basis as a temporary award while a more thorough study was made afterwards. Asked about paving charges and similar burdens, Mr. Ainey said that the heaping of such burdens upon the street railways was probably due to an utterance of the United States Supreme Court in the early days of the industry in which it was set forth that the fran- chise privilege belonged to the public and that such a permit ought to be given only upon receipt of a sub- stantial and continuing reward. On the question of public ownership. Chairman Ainey said that he had not yet arrived at the opinion that the public would get better service through public ownership and operation than it does through the initiative of private ownership. On the merits of the zone system of fare collection, he said that it had very substantial equities, but that he was not ready to recommend its adoption until some company which thoroughly be- lieved in it had given it a thor- ough trial. He said it should not be tried out by a company only lukewarm to the idea, and that results worth while could only be ob- tained when it was tried out in the hands of its friends. Dugald C. Jackson, profes- sor of electrical engineering Massachus e 1 1 s Inst i t u t e of Technology, fol- lowed Mr. Ainey as a witness before the Federal Com- mission. He followed very closely a pr?pared statement which appears in part on another page of this issue. During his testimony Mr. Warren interrupted to add the following figures concerning the Boston Elevated Railway to which the witness had made reference: In 1897 the investment in this property per $1 of income was $2.90; in 1918, it was $6.37, and in 1919, $5.38. Fred J. Macleod, chairman, Massachusetts Public Service Commission, was the next witness heard, and he also read from a prepared statement which will be published in a later issue of Electric Railway Journal. Fielder Sanders, city street railroad commisioner of Cleveland, then took the stand and very briefly reviewed in the fifteen minutes time he had available the fea- tures of the Cleveland plan from the public point of view. He said that this plan had certainly been a suc- cess from the company viewpoint, that the property was probably the finest in the country as was perhaps The gentleman at the right is Prof. Irving Fisiier of Yale, who would remedy the street railway difficulties by substitut- ing a fixed-value, variable-weight dollar for our present flxed-weight variable-value coin. Photo by Harris & Ewing, Washing- ton, D. C. Three of Boston's able lawyers and a successful railroad presi- dent from the Mid-W^est. They are Senator Thomas J. Walsh, Fred J. Macleod, chairman of the Massachusetts Commission, H. W. Barnum, general counsel for the Boston "L," and Arthur W. Brady of the Union Traction Company. 384 Electric Railway Journal Vol. 54, No. 8 indicated by the fact that the city tax commission was assessing the property at the par value of its stocks and bonds, less its credit. He continued that the plan has also been largely a success from the public point of view, for the service is excellent, and this always tends to satisfy the people. The fare has been uni- formly low and the company is now in good financial condition, with its stock selling consistently above par. In spite of a 25 per cent increase in wages for prac- tically all employees of the company, Mr. Sanders said that on July 8 the fare had gone down to 11 tickets for 50 cents. At this rate the interest fund was being depreciated $80,000 a month, but he hoped that this rate of fare would carry through when the high main- tenance expenditures of the summer season are past. Mr. Sanders gave the following reasons for the success of the Cleveland plan: First, the low valuation, compared with other street railways ; second, the franchise exemptions which relieved the company of the mill tax, bridge taxes, paving taxes, etc., and required the car rider to pay only for the cost of transportation; third, the development of the very latest ideas of operating economies and perhaps the fact that the average length of ride was not as long as in other large cities. He said that the success was largely due to the operating and financial support given the franchise by the city and also by the people. He said there was at present no crucial street car problem in Cleveland. It was his opinion that many people thought the company was now municipally owned and that they were receiving transpoi'tation at cost. He pointed out that 4800 of the stockholders of the Cleve- land Company are local residents, so that the company may be characterized as a local enterprise. He was not sure that the service-at-cost plan was popular enough to make it a success in other towns- Turning to the disadvantages of the Cleveland plan, Mr. Sanders pointed out the following: The reluctance of the company to extend its lines obtained as strongly under this plan as under the ordinary franchise. The city is limited by the terms of the franchise which specify that it may not require any extensions which would impair the value of the company's securities. This gives the company a basis upon which to refuse extensions. The second disadvantage to which Mr. Sanders called attention was that the labor trouble is as inherent to this plan as it is in other cities. The city authorities have no control over the labor problems, who can only regulate but not operate the property. The company fixes wages and the city has no power to force the company to accept any particular agreement with its employees. And in the case of a strike, it is entirely the people who are the losers, since the rate of return to the stockholders is fixed. Mr. Sanders pointed out that the fundamental fault of the plan is that the party who makes the rate does not fix the wages-. He thought that the city ought to have the right to fix wages if it must guarantee the return on the investment. In the recent strike, which cost the public, not the com- pany, $80,000, the city was placed in the difficult posi- tion of having to meet the demands of both the employees and the company, and endeavoring to appease both without the power to force either. Questioned about the desirability of including an in- centive in the contract to induce efficient and economical management, Mr. Sanders said that, academically, such a provision was good, but practically it was much better to have a fixed rate of return, so that there would be no doubt in the people's mind as to how much the company was getting. Then he thought also that it was the natural tendency for a company to skimp the property in order to increase its earnings. It would be a very easy matter to cut down maintenance, for example, to easily realize an increase of 1 per cent in its earnings. This would be $300,000 on the capitaliza- tion, he pointed out, and would be a very small part of the total sum paid out for maintenance, so that it might easily be lost sight of. He thought that if any one were to secure a bonus it ought to be the street car operators, the men. Asked about the value of the indeterminate franchise, Mr. Sanders said that it was theoretically all right but that practically the definite term with the renewal privilege was better. The witness said that there was a good deal of municipal ownership talk in Cleveland, but it was not because of any antagonism toward the company. His own feeling was that some of the defects of the present franchise might be cured through munic- ipal ownership, particularly the labor difficulty. Asked if he thought that municipal operation would be cheaper, he said he could not say, but he knew that it would not be any more expensive. State Subsidy Proponent Heard Thomas J. Walsh, state senator of Massachusetts and Boston lawj^er, and member of the senate committee on street railways, expressed his belief that after the car riders had contributed all that they will to the support of the transportation company "without notic- ing they are doing anything," the balance of the cost of the sei-vice should be contributed by the state. He commented upon the serious loss of riders in Bo.ston with the increasing fares, and said that he was inclined to think that a 5-cent fare was the logical charge and that the eff'ect this had in pleasing the public had a very distinct value. He thought that if the public was saddled with a portion of the expense involved from wage increases that it would be more keenly interested in keeping the operating costs down. Asked by one of the commissioners if it were not true that the em- ployees would take the position, under the state subsidy plan, that the operating officials should not stand in the way of further wage increases, since this did not affect them but came out of state funds. To this the senator replied that he thought the American public could be depended upon to assert its rights and he M-ould antic- ipate no trouble therefrom. He said the reason that the labor union men are now so successful is because of the cowardice of those they oppose and the want of more Rooseveltian courage. He said that the patriotism of labor had been largely submerged by the old slogans of human greed, but that he believed organized labor could not be successful unless it had the public will with it. He thought that the tide of public opinion was now running against labor, at least in so far as it has .shown an inclination to ignore its contracts. He ex- pressed the view that the tripartite arrangement would never work out and suggested instead that a better solu- tion would be for capital to get a smaller but certain reward and permit labor to receive the speculative reward. The witness stated in regard to public ownership that he believed private ownership was much more efficient, but that state ownership was inevitable because of the inability of the private street railway companies to get August 23, 1919 Electric Railway Journal 385 new money. He said he thought the public trustees in Boston had been made the "goats" of the irretrievable past of the corporation. Senator Walsh presented the following thoughts which he had used in support of his bill, Senate 54, now pending, providing for a 5-cent fare on the Boston elevated railway with a subsidy to be paid by the several cities and towns served by it in proportion to the number of car riders from each. 1. Economy of the proposal. a. It capitalizes the good-will inherent in a 5-cent fare by a large increase in riding without proportional increase in cost of equipment, personnel or overhead expense. b. It makes for easier collection, smaller number of col- lectors and generally lower cost of administration. c. It minimizes the temptation to practice fraud upon the road. Many feel justified in evading the 10-cent fare now, and conductors are more inclined to steal because of the public disfavor of the high fare. d. It will noticeably increase the number of short-haul riders, a very large number of whom would be patrons in non-rush hours. The pleasure riders will be far more nu- merous at 5 cents, and pleasure riders make velvet income. e. It holds up the values of suburban properties and also adds to the value of down-town realty by keeping up the normal rate of increase in every metropolis. Mercantile houses, all retail in-town establishments, all theaters and places of amusement and gathering-places of people, mar- kets, in fact every business which solicits trade, will benefit, therefore all landlords of property so used will benefit. It is the bulwark of what is called by economists the "un- earned increment." f. It makes the zone system unnecessary. 2. Fairness of the proposal. a. It distributes the burden of an indispensable public utility which affects every one in the community, in an •equitable manner. b. It safeguards stockholders, as does the act of 1918. c. All the people have paid for the development of rapid transit upon the theory that all were interested in it. They were invited to rely upon this scheme of development in buying suburban lands and building thereon. Their way of life was pivoted upon low transit fares. 3. Social value of the proposal. a. It helps to reduce congestion; everybody deplores and seeks to prevent overcrowding of humans. We try even to prevent overcrowding of animals in freight cars on hu- mane grounds. Congestion lowers public morale, makes pessimists; from pessimists come those who are easily poisoned by bolshevism. Congestion lowers human values in industry and commerce by taking the spring out of men and women and shutting them out from the amenities of life. b. The present scheme is an undue burden on the poor. At the 10-cent fare which is now in force a person obliged to use the elevated twice daily on the average pays an •excess of $36.50 a year; a household of two riders pays an excess of $73.00; and so on in proportion to the number of riders from any one household. Even if rents were raised to meet a subsidy tax they never could be raised so as to absorb the gain from a 5-cent fare. On the basis of a $3 increase in the tax rate, let us see what these figures mean : $36.50 means an increase of $12,000 plus, and $73 means an increase of $24,000 plus, etc. If the loss of patronage through high fares equals 50 million nickels a year, that amount is taken from the pockets of those who must ride. In other words the car riders who must ride are paying for thos; who do not ride because of high fares. Taking a normal increase of 25,000,000 riders as one extreme and a decrease of a like number under ab- normally high fares, we see where we lose $2,500,000. Un- der a 5-cent fare the amount of deficit to be made up is that much less than the difference between the total of 5-cent fares and the total of a higher fare. Why throw away that amount of money? 4. Political value of the proposal. The 5-cent fare will make friends for the elevated road and for the principle of public control. It will silence the kicker and appease him. It will please the great majority who are the car riders, and restore their confidence in public operation. It will make the work of employees easier and the troubles of the trustees lighter. The latter will have a better chance to work out their problems in peace. I dare say the people will be more tolerant of annoyances through poor and inadequate service. The 5-cent fare makes for comfort for everybody. A pleased public is a distinct asset in every community, and this pleasure is re- flected upon every member of the community; on the other hand, a dissatisfied public is a serious menace to progres- sive legislation, for every measure will be viewed with sus- picion. A light public spirit is as pleasing as a light spirit in an individual. As a matter of practical politics I should have in all tax bills in the cities and towns affected by this measure an item called, for example, "Transportation Subsidy," so that the people would know just what they were paying for this service. This new item, representing a daily actual sav- ing to each citizen, may be used to justify economy in other municipal expenditures, and make municipal administrators keen against waste and inefficiency. It will force economies in operation to keep down the tax rate. There are now no cheery riders on the elevated, no cheery employees and no cheery managers. Everybody is sore and vindictive, railing in vain against the wrongs of the irre- trievable past. This bill, providing a 5-cent fare and sub- sidy, takes nothing from anybody and gives much to every- body. The soundest fare for metropolitan areas is the limit the public, mostly fairly disposed, will pay without reluctance. Dividends should not be proportioned to original invest- ment or par value but to actual present value. There is no public sympathy for railway security holders because their investment was predicated on the-hope of heavy specu- lative returns. They ought to stand or fall with the varying fortunes of their gamble, with any political promoters like the Public Control Bill of 1918. Marion M. Jackson, attorney, representing Mayor Key of Atlanta, Ga., occupied the stand for the remainder of Friday evening and was the last witness to be heard on the public side. Mr. Jackson brought the message that municipal ownership offered the only solution of the present difficulties, which he believed to be very largely the result of the stock manipulations by the private companies. He reviewed the financial history of the Atlanta companies in great detail, endeavoring to show how with every consolidation which had taken place there had been a considerable inflation of the capitalization. Commenting on the service-at-cost fran- chise in Cleveland, he said that this plan was put in because it was impossible to have municipal ownership in Ohio at that time, and that it was therefore only a makeshift. His principal mission, he said, was to induce the Federal Commission not to make any recom- mendation which would act as a club against municipal ownership. The mayor for whom he spoke was elected on a municipal owmership platform, said the witness. The testimony on the public side having been com- pleted, Mr. Warren, counsel for the railways, sought opportunity to place at the disposal of the commission several statements prepared by the American Electric Eailway A.ssociation in answer to questions that had been raised bj^ the commission during the previous hearings. Some of this statistical information will be published in a later issue of Electric Railway Journal. A statement by J. A. Emery, of the firm of Ford, Bacon & Davis, was entered in the records at this time. An analysis of the income accounts of the street railways was presented in this statement which appears in part elsewhere in this issue. In closing the testimony of the public side. Secre- tary Charlton Ogburn, who had acted as counsel for the public on behalf of the commission, called attention to the 12 per cent flat increase which had been awarded by the War Labor Board as its final act. This brought the maximum scale of the Board from 48 cents an hour up to about 54 cents an hour. He also announced that the Pittsburgh men had rejected this increase and had gone on strike the evening before (Thursday evening). The employees of the East St. Louis lines did the same. 386 Electric Rail w a y Journal Vol. 54, No. 8 Traction Situation in Seattle* Events Leading Up to Purchase by City of the Street Railway System, and Operating Statement for the Quarter End- ing June 30, 1919 ; ^ By Mayor Ole Hanson ., ' •■ ■ Seattle, Wash. ^ ■•■ ■ .■■■■:-■'[ SOME years ago the Puget Sound Traction, Light & Power Company, operating most of the privately-owned street railway lines in Seattle, filed with the Public Serv- ice Commission of the State of Washington an application to be relieved from certain franchise obligations relative to paving of its right-of-way, payment of proportion of its gross earnings, and payment of bridge rental and other franchise obligations. Because of this pending application the company did not comply with its franchise obligations. A decision was finally rendered by the Public Service Commission in a similar case coming up from the city of Tacoma, wherein the Public Service Commission decided adversely to the rail- way's contention. The city of Seattle also was successful in its various suits in the Superior and the Supreme Courts of the State to enforce payment of gross earnings, taxes and payment of proportion of bridge rental. The long record of litiga- tion between this company and city resulted in the rapid crystalizing of public sentiment to a point where it was shown that the Puget Sound Traction, Light & Power FINANCIAL REPORT FOR QUARTER ENDING JUNE 30, 1919 Current Year Previous Year Revenue from transportation $1,273,018 $1,115,076 Revenue from other railway operations 26,021 20,046 Totalrevenue 1,299,039 1,135,122 Operating expenses 1,052,727 840,713 Deductions 239.503* Net operating revenue 6,809 294, 409^ ♦Includes interest, $198,781 Damage claims 20,0006 Industrial insurance 20,722a $239,503 (ri) The Industrial Insurance shown above has not been paid as no demand has been made by the commission. This amount, however, is a proper amount to be apportioned for this period. (6) As the city paid out about $1,000 for damage claims we have set aside arbi- trarily the sum of $20,000 as a proper amount to be charged. Current Year Previous Year Operating expenses $1,052,727 $840,713 Way and structures 84,079 55,599 Equipment 146,461 76,197 Power 179,979 194.398> Conducting transportation 599,672 352,346 Traffic 478 2,270 General and miscellaneous 42,058 159,903 Kw.-hr. purchased 17,035,346 18,514,119 Car-miles 4,146,850 3,386,350 Car-hours 442,572 347,360 An average for depreciation would ordinarily be $75,000. Owing to the fact, hovvever, that our maintenance charges are heavier by $98,744 than the same period last year, we feel that we have appreciated the property and that no de- preciation should be charged. ' This figure was computed from the number of kw.-hr. and the unit cost of the current year. -Presumably there are deductions that should be made from this figure but the report supplied includes none. Company could no longer enjoy the good-will necessary to operate its street railway property. The company was also in dispute with its employees as to a proper scale of wages, and was unable at the scale of wages it was paying to secure an adequate number of men to operate its cars; it had as much as 20 per cent of its equipment in the carhouses at one time, although these cars were imperatively needed to take care of the trans- portation of the shipyard workers. The city officials en- deavored to adjust in an amicable manner the points at issue between the company and the city in order that better service might be provided for the public, and on July 6, 1918, I sent the traction company a communication in which I indicated willingness to co-operate with the company in every way, even waiving for the period of the war certain * Abstract of Statement sent to the Federal Electric Railways Commission, Washington, D. C, and read by Charlton Ogburn Aug. 13, 1919. franchise obligations, and also co-operating with the com- pany so that operating economies would be effected in the following manner: Suggested Methods for Effecting Economies IN Operation '1. Inauguration of a system of skip stops by which the company expected to save $100,000 per year. 2. Elimination of street congestion due to standing and parking of motor cars at curbs. This the company ex- pected would result in a saving of approximately $100,000 per year, as a faster running time could be maintained through the business section. 3. Permission from the city to use the new bridge in the north section of the city, by which faster running time could be made. 4. Transfer exchange between the Municipal Railway lines and the company's lines. 5. The right to use idle cars of the Municipal Railways on a fair rental basis. 6. Emergency interchange of power between city and company. 7. Assistance in staggering of school hours and shopping hours to relieve peak loads. 8. Extra charge of 1 cent for transfers on certain lines, which would mean a probable extra revenue of $200,000 per year to the company. 9. Discontinuance of service on certain lines where serv- ice was being maintained only to hold the franchise. 10. Relief during the period of war from compliance with the paving obligations of the company's franchises. The unfulfilled paving obligations to this date would have re- quired the expenditure of approximately $400,000. These concessions were to be contingent upon the com- pany's consenting to increase the pay of its employees so that $4 would be the minimum wage for eight hours, and also to pay its past due percentage of gross earnings and to operate all the cars available. Net Return Allowed Determined by Income op Previous Five Years The city then entered into conference with the company on the points involved, and on July 11, 1918, the City Coun- cil adopted a recommendation to permit the company to earn an average net amount during the war equal to that earned during the previous five years and to bring about the necessary fare changes to make this possible. In com- pliance with this recommendation the Department of Pub- lic Utilities submitted a report on Aug. 17, 1918, during the discussion of which I made an offer to lease for the period of the war the street railway property upon the understanding that it was to be kept in as good condition as when turned over to the city; that the company would receive a net return equal to the average net return it had earned on its properties for the last four preceding years; and that the city of Seattle would purchase direct current power for the railway system from the company at the rate of 1 cent per kilowatt-hour on the trolley feeder lines. On Sept. 6, 1918, after a thorough investigation the City Council offered $15,000,000 for railway property payable in 5 per cent utility bonds. The city agreed to purchase direct-current power from the company at 1 cent a kilowatt- hour at the trolley feeders. The company accepted the proposition Sept. 13, 1918. On Jan. 8, 1919, the ordinance providing for the acquisition of the street railway lines v/as approved. The retirement of the bonds at the rate of $833,000 a year beginning Feb. 1, 1922, was specified in the ordinance. The city was further bound by the ordinance to charge such rates as would provide for the payments of interest and capital specified. In the litigation incident to the purchase of the street railway properties the City of Seattle was successful both in the lower court and in the Supreme Court of the State, which on March 5, 1919, confirmed the legality of the proceedings by which the city aimed to acquire the property. On March 31, 1919, the pro- ceedings were finally consummated and municipal operation began at 11 p.m. on that date. August 23, 1919 Electric Railway Journal 387 State the Facts to the Public' Plain, Simple Publicity Needed — Criticism of Commissions Refuted — Fundamental Faults Outlined and Remedies Suggested By WILLIAM D. B. AINEY Chairman, Public Service Commission of Pennsylvania WITHOUT adequate electric railway service the economic, social and industrial life of the na- tion is seriously affected, if not paralyzed. Its continuance upon a sound and efficient basis is of para- mount importance and that continuance cannot be as- sured to the public without affording to these com- panies adequate revenues enabling them to produce it. My acceptance of your invitation to appear before you is not predicated upon the assumption of the posses- sion of any fund of knowledge on my part which would enable me to present to you a four-cornered plan by the application of which the difficulties surrounding the railway would disappear. I shall content myself by suggesting for your consideration a line of inquiry which I believe has in it, elements of substantive help- fulness. I have some objection to placing myself in the position of a mere doctrinaire and an abhorrence for the vacuum of immature theories. I am convinced, nevertheless, after some careful consideration of the difficulties toward which you are devoting your atten- tion, that there is no single plan of general applicabil- ity to all companies and to all localities and to all con- ditions. I cannot accede to the suggestion that you have a problem before you ; on the contrary, I must, with due deference to these distinguished gentlemen who differ, insist that you are confronted by several problems predicated upon different factors and requir- ing various answers as differentiating circumstances play upon particular companies and localities. If, then, I may with full appreciation of these prob- lems as they affect the railway and the public help in clearing away the underbrush so that we may obtain an unobstructed vision into the fields beyond, I shall have at least fulfilled the actuating purpose of my presence. 1. There are widely varying conditions both with respect to the state laws and the economic policies en- forced therein under which electric railways are per- mitted to operate. 2. Within each state the localities which these com- panies serve vary so radically as to prevent a conclusion which we might reach with regard to one being ap- plicable to another. 3. The companies vary with respect to their cor- porate history, the circumstances under which their roads were constructed, and the extent and character of the population which they serve. Necessarily the increases in cost of operation will not equally affect the net returns of all these com- panies, and so we may have 5, 6, 7, 8, 9 and 10-cent fares each reasonable and severally yielding adequate returns. We would be blinded to the obvious, however, if we did not recognize that every electric railway of the land has felt the heavy weight of these increases. They exist, and must be paid. It is, therefore, a part of our duty to ourselves, and the public which need them, to ♦Abstract of Statement made before Federal Electric Railways Commission, Washington, D. C, Aug. 15, 1919. aid, in our own selfish interests, in maintaining the railways as efficient public servitors. We would rapidly retrogress, as a nation, into con- ditions similar to those which confronted the world in the dark ages, were we to be deprived of the serv- ices of and means of inter-communication provided by railroads and railways. The public which constitutes the patrons and pro- vides the revenues will not in my judgment have the least difficulty in agreeing with the carriers that the increased costs of operation ought to be, yes, must be, reflected in the rates of fare which they are called upon to pay. Neither will they controvert the fact that railway service is a national necessity in the conduct of business and in providing for the conve- nience of the country, but there are other matters con- cerning which they are in doubt and as to w^hich they have not been advised, and every man is inclined to resolve the doubt in his own more immediate interest. They are entitled to the assurances vi^hich can only come to them through definite clear-cut information, free from vague generalizations. If I am able to judge, the psychological influences which are at work against the public acceptance of increased fares are that there is a belief that some companies are over-capitalized or are extravagantly managed whereby the incomes are diverted and the public overburdened. This is the psy- chology of the case. Federal Hearings Have Helped Confusion of Issue In this connection and as emphasizing this point, let me express in no unfriendly spirit of criticism my astonishment at the incertitude and confusion with re- spect to remedies which appear in the testimony of the railways and allied interests which have been pre- sented before you. Notwithstanding many notable and instructive statements, that of President Pardee coming uppermost to my mind at the moment, there is on the part of the railways a remarkable lack of cohesive or constructive suggestion as to what ought to be done. I have no doubt this is the result of an attempt to na- tionalize the subject, to generalize where generalization was impossible and to hazard conclusions which might have application in some states and to some localities but not to all. Take the following thoughts which were carried ex- tensively in the public press and consider their effect upon the car riders whose good-will it is admitted by the railways must be won. I have gathered from a hurried perusal of your hearing records that the testi- mony of the railway witnesses ranges from the advoc- acy of municipal ownership, not as an effective remedy, but on the penalizing theory that it was bad and that the public when sufficiently punished would in a repentant frame of mind give more friendly support to private ownership; to requiring the public to pay fair return 388 Electric Railway Journal Vol. 54, No. 8 on watered stock. There have also been indirect state- ments, if not direct ones, intimating that public utility commissions were politically created and as such, with ears continually to the ground, were too timid or dis- inclined to grant the full measure of relief to which the railways were entitled. It is such expressions that bring doubt in the public mind as to the good faith of these companies and undermine the public's confidence .in the integrity and fairmindedness of commission de- cisions. Particularly is this likely to be so when these decisions support increases. Again emphasizing, as I believe I have the right, my full and sympathetic appreciation of their difficulties, it appears to me that the electric railways have pyra- mided an admittedly serious situation, which requires at your hands most careful and helpful attention, by at least a mild form of hysteria, which does not. Sug- gestions that patrons pay dividends on watered stock or on "capitalized hopes," that dividends on all capital be doubled because of the lessened value of the dollar, do not go far in wining public confidence, or gaining pub- lic support, when read by these patrons in daily news- papers. It necessarily distracts all our minds from the point in issue, from increased costs of maintaining service, to increased dividends to stockholders. If, therefore, the companies which are burdened with over- capitalization or unnecessary corporate complexity will put their houses in order fairly and fearlessly, they will have laid the foundation upon which they may establish public confidence and receive public support. The valuation basis for rate-making purposes, in every state in the Union where regulatory authority is e.xercised, rests primarily under the law upon original costs and reproduction costs new; in other words, upon the fair value of the property devoted to public ser- vice. Upon that fair value, every company is entitled to receive a fair rate of return, in addition to the costs of operation, including the increases in labor and material items, and a reserve fund for depreciation; and I am quite content to add, an allowance when tangi- bly expressed for economies in operation. I believe these allowances should be generous and not trimmed to the bone. Public Must Know Facts in Full Are the electric railways willing to stand actually as well as theoretically upon these revenue grounds? If so, I need make no promises for the Pennsylvania Public Service Commission. Its deliverances from time to time, and some of which have been specifically called to your attention, are sufficient to establish that it will fearlessly and justly perform its duty with due regard to the carriers and the public. Of course operating costs, including increases fov labor and material, must be met out of the imposed rates of fare. The public have no just ground for objecting, nor can I conceive of a public service com- mission placing an obstacle in the way, but the problem is not fully stated in the public's estimation by calling attention to the heavy increases in operating costs and to the materially lower net return. Between these two to their mind are numerous intervening factors, an in- quiry into which we must turn our attention if we would emerge from the chaos of the present situation. When an epidemic touches a locality its effect upon the individual depends in part upon any organic or fundamental physical weakness which that individual possesses. It is an axiom, I think, that disease usually makes its most sinister attack upon the weaker organ of the patient. A physician in diagnoisis would be recreant if he did not, therefore, take into considera- tion these fundamental difficulties in each patient. While analogies are not always logical, it is without ques- tion that the high costs of labor and material, the lessened purchasing power of the dollar, perhaps the changing riding habits of the people have borne down upon the electric railway interests of the land most heavily in places where there are fundamental weak- nesses in corporate history, management or general conditions. Shall we stop short of inquiring into these weaknesses ? If, then, these higher costs are likely to be contin- ■ ued, the companies in order to survive and meet the responsibilities of the new conditions under which they are called upon to operate must not deceive themselves. They must not gloss over any organic difficulties if they exist, but even at the expense of much travail subject themselves to rigid self-examination. Saving Watered Stock for Widows Untenable It has been remarked before you, I understand, that some companies have capitalized "hopes." It would be inexpedient for me to name or even have in mind particular companies, but making a composite state- ment of several to which my attention has been directed, let me inquire what you would recommend to public service commissions who were seeking to determine the fair return in the cases of companies which on outlays of from two million to three million dollars without an additional rail, spike, car or dollar of investment, capitalize such properties at seven or eight million dol- lars. Where increases were not made on the basis of money invested or upon the physical value of the property devoted to public service, but the then or anticipated net incomes were capitalized, these incomes have necessarily been lessened by the increased costs. Naturally such companies do not wish to readjust their capital issues to meet present net incomes on the basis they were established, but they now desire to increase their income to meet their former increases in capital. The payment by the public of a fair return upon watered stock on the ground that that stock had passed mto the hands of widows and orphans, no matter how just or equitable it might appear to the advocate of such a policy, nor how strongly entrenched in law, nor pursuasive the argument as an ad hominem appeal, would witn difficulty secure a consenting riding public to support it and would, of course, require changes in the organic law of every state regulatory body of the land. For valuation for rate making purposes is by law based primarily upon original costs and reproduc- tion costs new, neither of which would respond to such a suggestion. Moreover we would then be confronted by a situation in which the company whose capital is- sues bore fair relationship to the value of its property devoted to public service would fare much worse than the one burdened with watered stock. I am deeply concerned then, as a public official charged with grave responsibility, with respect to the matters before you and acting in the interest of the public and these companies, that the carriers shall place their ap- peal for relief squarely upon the only tenable and legal grounds which would entitle them to consideration at the hands of the public utility commissions of the land August 23, 1919 Electric Railway Journal 389 and not predicate their demand upon arguments and theories which under the law, as it exists, would be bound to close the door of helpfulness of every regula- torj^ body of the nation. Regulation by State Commissions not a Primary Obstacle If we are agreed upon the legal and equitable stand- ards for fair value and a fair rate of return as the basis upon which the railways are entitled to relief, then I submit that in the larger aspect there are no regula- tory difficulties, except perhaps in a negative sense standing in the way of an adequate solution of the rail- way problems. The equation stands, adequate service on the one side and a paying public on the other. To create the ideal situation the railway companies and their patrons must be brought into harmonious relations in which adequate service is rendered and reasonable and compensatory rates are paid. At the risk of being trite and also redundant, I will state that it is recognized that the companies must have adequate revenues, sufficient to pay the cost of operation, provide for proper reserves and to yield a fair return upon the value of the property devoted to public service. The public, of course, must, out of rates of fare, provide such revenues, but it does not lie within the power of public utility commissions nor in statutory enactments nor with the deliverances of your distinguished body to provide a riding public willing to pay the imposed rates. The patronage to produce the required revenue must be obtained by the energy, efficiency and business acumen of the companies. Against the fiat of any law, order or recommendation of regulat- ing or recommendatory bodies, municipalities or legis- latures, the public have a determinative veto, for they may still withhold their patronage. In states and in localities where statutes or municipal ordinances have fixed rates in which companies have heretofore assented and which under the law of those states are beyond the regulatory authority of commis- sions to change, the barriers are legal and not adminis- trative, and the relief must be found by appealing to the authorities which imposed and may remove those barriers. How can your distinguished body generalize over such conditions? They do not obtain in Pennsyl- vania. They do not exist in some other states. It was held by the Pennsylvania Commission, in an opinion which I had the privilege of preparing, (Wilkinsburg case), that notwithstanding the constitutional provision authorizing municipalities to grant or withhold consent to the laying of tracks upon the municipal highways, when such grants were made and accepted by the com- panies with conditions fixing the rates of fare to be charged, the commission had authority to inquire into and determine the reasonableness of filed rates which were in excess of those prescribed by ordinances. That opinion has recently been affirmed by the Superior (Ap- pellate) Court, and the legal barrier against imposing reasonable and if need be higher rates has not existed in Pennsylvania. Since the establishment of the public service commission the companies file their rates which upon thirty days notice automatically, without approval, become effective. If complaints are filed the rates con- tinue in effect until the commission makes a deliverance What the Federal Commission Should Bring Out By William D. B. Ainey The public and those charged with administrative and legal responsibilities will welcome clear and definite state- ments of the facts which confront them as railway patrons 1. The people should be advised of the commission's conehisions as to the extent to which increased costs have entered in railw^ay ex- penditures. 2. The people should be advised by the commission as to the basis upon which it would grant or with- hold increases to meet the situation. 3. The commission's deliverances should clarify the public's vision with respect to the importance of the railways in carrying on its business, and advise the public in a definite way as to the results which would follow the failure to provide ade- quate revenues. 4. The public, the railways, state commissions, municipal authorities, legislatures and executives have several duties and responsibilities, the performance of which awaits in some instances definite utterances and programs. 5. The inter-dependence of rail- ways and patrons in which the rail- ways must supply the service and the riders must provide revenues, cannot be over-emphasized. 6. The injustice to the car rider as well as to the company, and the economic fallacy of certain franchise burdens imposed on the carriers should be corrected. 7. Railways, if they are to be continued, must be operated under conditions not heretofore confront- ing them. The jitney, auto-bus and private automobile have no doubt deflected many fares. Their advent in such large numbers has not only affected revenues, but it has placed a competitive service in action, and these private or public competitors must be met by the railways. 8. If railways are to survive, they must meet that competition by efficiencies and economies in opera- tion, and there is a wide range for study and recommendation in these respects. 9. Too long rides for fares less than cost are sometimes provided. The short-distance rider, of course, foots the bill. 10. Coal must produce more cur- rent, cars more riders, and miles of track more service. 11. Some railways were construct- ed with more optimism thain good judgment. Without patronage to support them, of course, they can- not survive, and we cannot burden our statistics with such cases. 12. Jitney service where it exists must be a regulated service. 13. On the part of companies cor- porate complexities should be elim- inated where possible and if the future holds any promises there must be some fair relationship be- tween capital issues and the prop- erty devoted to public service. 390 Electric Railway Journal Vol 54, No. 8 after a hearing. No intervening power to suspend exists. This establishes that the electric railways of Penn- sylvania are operating under legal and regulatory con- ditions quite different from those obtaining in other states. A difference which, with due deference, I sub- mit you are bound to note in your conclusions. Nearly all the electric carriers of the state were operating un- der municipal ordinances fixing rates of fare, but a very large proportion of them have increased their rates above the m.unicipally imposed ones and their right to do so, to the extent that they were just and reasonable, is supported by commission decisions and judicial af- firmance. Permit me to excerpt from the report in one case wherein there was a rate fixed by ordinance. In the Waverly case the commission made the following pro- nouncement in upholding a 7-cent fare: To expect public service of these carriers without per- mitting them sufficient revenues to produce it is as falla- cious an economic suggestion as to demand bricks without straw or to require faithful toil from the muzzled ox. It is therefore a matter of ordinary business prudence and sagacity that the public generally should come to an appreciative understanding of what that service means to the industrial and commercial life of the State, and to each locality within it and to recognize that the terms upon which it can be continued for their use and enjoyment are that it shall receive at their hands as ratepayers, sufficient to furnish it. If the public is to be adequately served, railways must be permitted to earn out of imposed rates of fare revenues large enough in amount to pay operating costs, a fair return and provide for the maintenance of the property, provided always that the rates imposed are not unjust or unreasonable. I am calling these matters to your attention for the purpose of stressing two points, that Pennsylvania, both in its law and under the commission's broad policy, has dealt fairly with the electric railway interests of the state, and to establish before you that regulatory au- thority has not stood in the way of these interests ob- taining adequate returns. Receiverships Rare in Pennsylvania In that connection you will be interested to note that we have upwards of 130 operating companies in the state with about 5,000 miles of track, and as I am informed not more than eight are in the hands of re- ceivers. Of these, seven have 180 miles of track, and one has 605 miles. Two of them with 39 miles of track went into receiverships in early 1914, two with 60 miles of track in 1915, and the remainder in 1918. In every instance where receivers have been appointed, it was due in very large measure to special circum- stances. For instance, one of these small companies had a serious wreck with heavy loss of life, the damages for which were enormous and beyond its ability to pay. Regulatory authority is therefore not a primary ob- stacle confronting utilities. In fact, in some of the larger states the want of such authority is manifest. In recent addresses I have adverted to the fact that no two companies have the same corporate and financial history. Their railways have been constructed under widely varying conditions; they serve different types of localities in which the congestion of population, geographic and topographic features and riding habits play important parts. Take our two largest railway companies; that in Philadelphia and that in Pittsburgh. Each has been affected by the increases in labor and material. In the one, the company has met, in fact anticipated the demand for increased wages, has con- tinued to pay accustomed dividends on its stock and in- terest on its bonds, and it has not increased its rates of fare which are continued at the basic 5-cent rate. I quote briefiy in passing from one of the news- papers of Philadelphia of Friday, Aug. 8, with respect to that company: The introduction of improved operating methods, includ- ing removal of wasted effort, has thus far in Philadelphia served to keep pace with increased wages and other costs, as against the alternative of raising fares. Increasing fares in other cities has almost invariably resulted in reducing the number of passengers carried by forcing many who would and should be car riders to walk or use other means of transportation. The remedy, it is believed, is to be found in doing every- thing possible to increase revenues by increasing the num- ber of passengers carried and decreasing the costs of oper- ation. In the other case the company has gone from five cents by gradations to ten cents, is in the hands of receivers, and has earned hardly enough to pay operat- ing expenses. Here I again stress the point of the error of generali- zation in seeking our remedies. With these two local- ities before us, similarly influenced by the wage in- creases and higher material costs, it would lead to doubt- ful conclusions that either the 5-cent fare or the 10-cent fare were wrong when it is possible that (with the other factors of differing topography and density of population before us) both may be correct. Inter-corporate Complexities I invite your attention to another economic difiiculty which confronts some but not all the railways — expen- sive inter- corporate complexities. An operating com- pany of Pennsylvania controls directly or indirectly, by stock ovraership or leases, some seventy-eight (formerly 204) underlying companies with a complexity of inter- corporate relationships, including numerous bond issues and rental charges, and all surmounted by a holding com- pany. Such a condition can no more be justified from the standpoint of economy or efficiency than could be the placing of that many wheels in a watch. The ex- pense of maintaining these corporations, together with the duplication of taxes, is a burden which ultimately comes out of the revenues of the operating company, even though commissions may deduct the amount from fair return. And the arrangement serves no useful purpose either to the public or to the railways. Wheth- er that expense is $500, $1,000 or $1,000,000 per year, there is but one answer to its continuance. This is a matter which at least in Pennsylvania must be ad- justed by the companies rather than by the commis- sions, but it is important in connection with your pres- ent inquir3^ Too Long Rides Have Been Supplied Sometimes companies carry passengers for distances which at imposed rates are less than cost. Why should not there be a readjustment of rates to avoid such in- equality? When the short distance rider awakens to the fact that he must be charged a larger rate in order to give some other person a partially free ride, there ought to be no serious local difficulty in accomplishing the change. Whether that readjustment should be made upon a strict zoning basis I am not at all convinced, but prefer to leave the matter under the general statement that rates of fare must be based upon some fair propor- tion to the service rendered. It is too much to ask that Augmt 23, 1919 Electric Railway Journal 391 companies give greater attention to economies in opera- tion. Some are now doubt doing it. The meet to-day's and to-morrow's condition every utility must get more out of each ton of coal consumed. Merchandizing Let us assume that each company has reached the goal of economic efficiency, that each company has done its part. The required gross revenue has to be raised by the imposition of rates of fare. Here, then, comes the severe test of operative discretion. The gross amount to be raised is made up of two factors, the an- ticipated number of passengers and the rate of fare to be applied. It is an axiom of every day business judgment that patrons should be retained and others gained if it is possible to do so. I shall not burden this commission with any extended statement on this phase of the question. This too is a matter involving the exercise of business judgment of each company in the light of local conditions, congested centers and study with respect to potential riders. In two recent addres- ses I have discussed at some length the influence of the rate of fare upon the riding habit, and have sought to emphasize the fact that street railway companies might profit by the merchants experience and methods. Hav- ing car rides to sell, why should not the companies adopt adequate methods for selling? The percentage of in- crease in rates has not followed by the same ratio in- crease in revenues. Increased rates have in many instances been followed by a flattened curve in the number of car riders. It has been pointed out that the unusual winter conditions of 1917-1918, the re- movals by draft and the later epidemic all affected the data which we might use in determining the extent of the loss of riders. It has also been noted that the jit- ney and private automobiles have taken away a consider- able number of patrons. Nevertheless there remains a very appreciable number who have been influenced by the rates of fare. No business house would be content to lose such a large percentage of its customers with- out making a stupenduous effort to retain them. Many of these would not be casual but permanent patrons. Why not consider in particular localities monthly com- mutation tickets to meet this situation? This matter must be measured not only in terms of the revenues to the companies, but by potential good will of these riders in their respective communities, a good will that is reflected in local sentiment, political and otherwise. I look upon the loss of car riders as being a serious men- ace to the well-being of any company, and it is not an answer which should satisfy the companies that the in- creased fare gives them a revenue sufficient to meet their needs even if it has to be secured from selected patrons at the loss and consequent cost of a considerable number of their former patrons. Let me frankly say that all these matters do not affect all of these companies, and no doubt many of them are wholly free from any of them, but where they do exist that company cannot afford to ignore them in. its own interest as well as that of the public. [The conclusion of Mr. Ainey's statement appears in the box at the bottom of page 889.] Status of the Electric Railway Its Place Cannot Be Taken by the Jitney But Zone Fares Are Desirable By DUGALD C. JACKSON Professor of Electrical Engineering, Massachusetts Institute of Technology. HOWEVER serious may be the direct financial disturbances arising if the extensive electric tramway systems in the country decline into bankruptcy, those effects are minor compared with the effects on the prosperity of the country that will result from a failure of systematic local transporta- tion in the cities. The continuation of business in American cities, whether industrial, mercantile or other, is dependent on systematic local passenger transportation being available, and the activities and comfort of the great majority of individual citizens are likewise dependent on systematic local passenger facilities. Such facilities must be preserved and en- larged in a character which will maintain them, adapted to the characteristics of the cities. Most street railways have been organized and work under provisions of some agreement between repre- sentatives of a city and representatives of the stock- holders. The principles embodied in these contracts are usually similar to those in short-time business con- tracts, but the conditions are different, and both city representatives and company representatives have ♦Abstract of statement made before Federal Electric Rail- ways Commission, Washington, D. C, Aug. 15, 1919. been at fault in the past in not recognizing this fact. A company directorate which accepts an agree- ment to make a fixed fare within city limits which are not defined and may be largely expanded, places the company in a situation where the ultimate bankruptcy of the enterprise is likely to result in case the area of the city grows in large measure, and a city council which insists on such a provision promotes the ultimate ■strangulation of service as the city grows. But the difficulty has been to find a better way. With the advent of state public utility Commissions, the execution of some of the provisions may have yielded here and there to judgment. But even then there has often been a failure to correlate the facts so as to bring out the essential meaning of the tendencies in the in- dustry. The introduction of supervision by public utility commissions was essentially a move which, uniformly and fairly applied, would result in providing good serv- ice at cost, when a fair return on the investment is included as part of the cost in addition to the ordinary daily out-of-pocket expenses. At the same time it affords opportunity for a street railway operated with particularly able, foresighted management and giving 392 Electric Railway Journal Vol. 54, No. 8 notably good service to profit through receiving a larger return on its investment than the average for the industry, since a regulating commission may use its judgment on the question of restricting the return. The present slogan for service at cost adds to this the additional feature of guarantee by the taxpayers of a return on the investment, associated vi'ith operation under public authority. This addition has been adopted in certain instances, but it introduces an inflexibility in the rate of return which may in the future prove unfair to one side or the other. Another solution is to add to the powers of the public utility commissions, giving them sufficiently extensive and experienced engi- neering and accounting staffs so that they can fully audit the companies' affairs and correctly advise the public in respect to the problems of extension and of operation, without actually undertaking the details of the managem.ent. This is a solution to which I believe it is important for your commission to give careful thought. Our present street railway service is an outgrowth of horse car service which, naturally, dealt alone with the short haul, and the electric railway fares were chosen and fixed by habit on the basis of the horse car service. In that service, the investment per pas- senger-mile haul was less than in the modern electric service. In Massachusetts the general ratio of total investment to revenue passengers carried per year has gradually but unmistakably increased during the entire period since electrification of the street railways, and the density of traffic measured in revenue passengers carried per car-mile was less in 1915 than at the open- ing of the period. The service itself has been entirely changed by the introduction of the electric car, which made practicable longer hauls, so that a single fare was paid for hauls which previously cost the passenger two or three fares spent on connecting horse railways. The speed of transpoi'tation has also been raised and this has again increased the investment per passenger- mile-haul as well as certain factors of the operating expenses. Since it is necessary to maintain both the short-haul and the long-haul traffic, it may be inquired whether the electric car is adapted to do this double service. The following considerations bear strongly upon this question : Rail Lines Better than Buses It must be remembered that approximately one-half of street railway investment is fixed in the permanent way and adjacent pavement. This proportion has slowly increased during the past thirty years. The jitney buses which run at will on the street surfaces are free from this investment. True their owners contribute by taxes and license fees toward the cost of pavements, but so do the street railways in addition to financing the investment of their own permanent way which is used jointlj' bj' other street traffic. Moreover, the street railways make heavy investments in power plants of the most economical character, which is a conserva- tion policy as well as a policy for economy, and the jitney does not. These considerations make the jitney business more like other commercial enterprises in respect of the rapidity of turn over of capital and also enable it to compete with street car service oper- ated with flat fares. It is important to examine care- fully whether these considerations make the jitney bus lines with systematic routes and reliable schedules desirable substitutes or successors to the street rail- ways, or at least to a part of their business, as has been asserted. What would be the effect on the street traffic conges- tion in cities such as Chicago, Baltimore, Philadelphia, Boston, and a large number of others, if the surface street railway service was replaced by bus service of equal reliability? Many of the American cities each have more than 1000 cars operating on street railways during their rush hours. To replace such a service with buses would require several times as many vehicles, thereby adding to the welter of street traffic in the heart of each city. These vehicles would cause more than a proportionate addition to the traffic confusion because they would travel at will over the street, in- stead of being confined to certain definite channels like the street cars. Moreover, additional streets would have to be paved with smooth pavement at greater expense to support this bus traffic. This means a large increase of investment in paving as well as annual cost for paving maintenance. Given equally systematic and reliable service by street cars and by jitney buses, com- munity economy stands with the street car for service in main channels. The jitney may be made serviceable for certain special conditions. It should also be ob- served that the use of subways to divert some of the surface traffic from the surface in certain parts of the city, as is done in Boston and Philadelphia, and as is talked of in Chicago, Cleveland and elsewhere, would be less readily accomplished and less safe for railless traffic than for rail transportation. All of these considerations point to the fact that it is necessary under our present conditions of city life to maintain the rail traffic at a high degree of completeness. Unit Fares Discourage Short Hauls In my opinion, no amount of repressive regulation will be adequate to do away with the competition which jitney buses produce. If the street railway service cannot be made complete and adequate to the needs, some other service, such as jitney service, will come in as a competitor. In fact, it ought to come in and be encouraged unless means can be provided to make the street railway service adequate to the needs, and the necessities of the present are to find the best ways of making the street railway service adequate, in view of the fact that it is (with all things considered) the more economical service for the community. After having studied carefully the conditions of local transportation in American cities under the normal con- ditions of cost prior to the war, I became convinced that a considerable part of the difficulties of the present street railway transportation systems is due to their effort to satisfy the needs of long haul at the expense of the needs of the short haul. These conclusions are set forth in a statistical report on the subject, pub- lished in 1917 in a book entitled "Street Railway Fares, Their Relation to Length of Haul and Cost of Service" by Jackson and McGrath. In the first chapter of this book are set forth a summary and general conclusions. I wish to call your attention to seven paragraphs of specific facts regarding street railways which this investigation, in my opinion establishes. 1. Density of traffic is the most fundamental factor in establishing the cost of service per passenger. The higher the density of traffic, the lower the investment charges and operating expenses per passenger. In this connection den- sity of traffic is a term used to mean passengers carried per car-mile run, and passengers carried per mile of track per annum. August 23, 1919 Electric Railway Journal 393 2. Long hauls tend to decrease density of traffic, thus decreasing the earnings per car-mile and increasing the cost per passenger. 3. The average length of passenger haul increases with the length of line. 4. The density of traffic becomes large in medium-sized cities, but as the cities spread out and become very large, the density of traffic tends to decrease again because of long hauls into thinly settled suburbs. 5. Increased unit fares have a tendency to decrease traffic, while decreased unit fares tend to increase traffic. 6. For a number of individual roads studied, as well as for the aggregate of all street railways in Massachusetts combined statistically as a single system, it has been found that the average actual investment per revenue passenger carried per annum has been increasing, and the average rate of return has been decreasing. This has been asso- ciated in the last few years (considering conditions prior to the European war only) with an upward tendency of operating cost per revenue passenger. 7. Fares in British cities are somewhat lower than on American street railways, and are almost invariably based upon the distance the passenger rides. In general they ap- proximate (before the war) about 1 ct. (U. S. money) per mile and the average ride is usually only about 2 miles. Lower rates abroad may be ascribed partially to a greater density of traffic which results from a much greater density of population per mile of track, while wage scales are much lower in British cities than in this country and free transfers between lines are seldom issued. [In addition to these seven specific facts. Professor Jackson quoted ten conclusions from his book, setting forth, among other things, that, in his belief, the street railvi'ays in the United States, both urban and suburban, would sooner or later be forced to adopt a system of rates based more nearly on the length of the haul. A mileage system of. rates would probably be less desir- able, in his opinion, than to retain the nickel fare by putting a reasonable limit on the length of the ride permitted for that rate. In general, he recom- mended, something shorter and more uniform than the present irregular and unsystematic 5-cent zones, possibly with lower unit rates than 5 cents.] Zone Fares Should Be Established The foregoing conclusions all point to the necessity of some zone plan of fares for our large cities. Where it is pointed out in the conclusions that a mileage system of rates is probably not desirable in American cities, it is the intention to urge the fact that trans- portation, like other branches of business, has a certain proportion of overhead cost which is reasonably inde- pendent of the bulk of the business, and that, therefore, the short haul passengers may be expected to pay a larger fare per passenger-mile apportionment than the long haul passengers, and that the zone system should be laid out recognizing that fact. / ones which might have been based on a 3-cent fare under pre-war cost, would, to-day, call for a 5-cent or larger fare. Most of the street railways of the United States have wished to avert the introduction of zone fares, partially on account of the difficulty of adequately auditing the fares collected. In the European cities where zone fares have been used for several decades, the plan has been usually founded upon a straight mileage charge without consideration of the stand-by charges, and measures for adequate auditing have not been introduced. This is undesirable in American prac- tice since we have a much heavier passenger flow which calls for larger loads on our cars and makes imprac- ticable the collection of fares according to European methods. Moreover, the American public is more inclined to criticise loose methods of fare collection than the foreign public, and the American public has become more accustomed to methods of checking money collections in all lines of business, as is illustrated by the very general use of cash registers in the mercantile lines, than has the European public. Some of our American street railway employees suggest that the introduction of accurate methods of accounting for fares is a reflection upon the honesty of the platform men on the cars, but, in my opinion, this is an inaccurate inference in respect to the attitude of the true man. No true man can fairly object to the use of a cash register in a corner grocery in which he is employed as a clerk nor in a department store where he is employed, as it puts him upon his metal to do his work accurately and is to his advantage rather than his disadvantage if he is honest. Similarly accurate methods can be introduced in association with some fare collections on street rail- way cars. The passengers can rely upon paying only for that which they get in the way of transportation and can likewise rely upon the company receiving a full accounting from the collectors. With the normal conditions of commodity costs gradually returning, as we may expect them, to return ultimately, the unit fare may go below the nickel, so that a proportion of the passengers carried should pay less than the traditionally established nickel fare, while those pasesngers who travel larger distances will, and ought, to pay more than the nickel fare. Zone Fares Reduce Congestion Voice has been given to much well meant but in- correct criticism of zone fares for American cities. This has generally been based upon an allegation that zone fares would increase the concentration of popu- lation in the cities. My study has satisfied me that these premises are erroneous. The family that has gone to the suburbs for the purpose of obtaining better living conditions, as a rule, is able to pay a slight increase of fare without over-throwing its margin of advantages. If such fares are not increased above 5 cents provided the distance to the suburb is greater than a passenger can be carried for 5 cents, then the loss from carrying such passengers for 5 cents must be borne by others. If it is assumed by the state or city, the suburban dwellers will ultimately pay more than the extra fare, because we cannot escape the proposition that the general public pays for all such costs which are assumed by governm.ent, and that the cheapest way of meeting the costs is by direct payment, rather than the indirect payment through taxation. Moreover, there are a large proportion of unskilled working people living in cities on whom the payment of even 5-cent fares falls heavily, and these, with their families, are now constrained to live in definite portions of our cities often denominated "slums," which are near the locations of centers of employment, because the individuals are unable to pay transportation charges and must live near their work. The zone plan, properly introduced at the present time, may not aid this por- tion of the population now, but with the gradual decrease of the cost of commodities and the consequent reduction of the price of transportation there will be an ultimate reduction of the unit price per zone, which will enable such passengers to get a certain amount of transportation at less than 5 cents per passenger. The ultimate result of the zone system introduced properly into American cities will improve the present situation by tending to spread the area within which it is practicable for unskilled working people to live. 394 Electric Railway Journal Vol. 54, No. 8 Statistics Show Railway's Plight* Records of the Industry and From an Individual Property Show Increasing Costs and Lessened Earning Power By J. A. EMERY Ford, Bacon & Davis, New York, N. Y. A" NALYSIS of the combined income accounts of American electric railways since 1902, shows clearly : 1. That the present acute situation is not due to the size of payments for interest and dividends. That per passenger the payments for interest and dividends have practically remained stationary for seven- teen years. 3. That payments made for interest and dividends repre- sent only a moderate return on a moderate amount of capital. 4. That the increase in cost of labor and material which had been going on before the war was nearly offset by improvements in efficiency, but that the increase due to the war came too quickly to be so absorbed. . 5. That electric railway labor, as a whole, has received increased wages commensurate with the increase in cost of living'. 6. That the cost of materials used in electric railway operation has increased in proportion to the decline in general purchasing power of the dollar, and there is no prospect of material relief. 7. That the estimated combined net income in 1918 was only 11 per cent in excess of obligated deductions for in- terest and ren als This represents average conditions so that nearly half the industry was unable to meet its obli- gations in 1918. In 1919. when the full year's effec? of wage increases made during 1918 will be felt, a far greater portion of the industry will be involved. gieacei Taking up these assertions in order: Not Due to Interest and Dividends 1. That the present acute situation is not due to the size of payments for interest and dividends. The payments made for interest and dividends less that portion supported by non-operating revenue, have been as follows, per 5 cents of operating revenue: ' PAYMENTS FOR INTEREST AND DIVIDENDS PER 5 CENT'^ OF OPERATING REVENUE 1902 1907 1912 1917 1918 1.56 cents 1.59 cents 1.61 cents 1.50 cents Not available For each 5 cents collected, only 1.5 cents goes for re- turn on capital. This is so small that a large percentage reduction therein would not greatly affect the fare For example, a reduction of 33 per cent in the payments for use of capital would only reduce the fare by 10 per cent. The salvation of the electric railway industry therefore, cannot be effected by trimming the return on capital. These Payments Have Been Stationary 2 That per passenger the payments for interest and dividends have practically remained stationary for seven- teen years. It is shown by the foregoing statement that payments for interest and dividends per 5 cents of railway oper- ating revenue, increased by only 3 per cent from 1902 to 1912, but in 1917 were 4 per cent lower than in 1902. Thus, in the face of increasing costs in every other particular, the capital charges per 5 cents of revenue Hund,?eA''?n ^Jlf'^f"',!"*, P'^esented through Committee of One- iiunclied to Federal Railways Commission. have decreased slightly. During the period in question the cost of all material and labor entering into electric railway construction increased at the rate of approxi- mately 1.3 per cent per year up to the beginning of the war. Increased efficiency in design, however, has counteracted this increase in cost of construction. It is clear that present high cost of service is in no wise due to increases in payments to capital. They Have Been Moderate 3. That payments made for interest and dividends repre- sent only a moderate return on a moderate amount of capital. Payments for interest, rentals and dividends, less that proportion supported by non-operating revenue, have been in the following amounts per mile of track: INTEREST, rental AND DIVIDENDS PER MILE OF TRACK 1902 $3,430 1907 3,880 1912 4,460 1917 4,760 The payment for interest and dividends in 1917 per mile of track, represents a return at 6 per cent per annum on $79,300. This would be a most conservative valuation per mile of track at pre-war prices, especially considering that all subway and elevated lines are in- cluded. Valuations accepted by public authorities for over 4000 miles of track of various representative systems excepting subway and elevated lines, give an average of $87,000 per mile. Thus it is seen that whatever the nominal capitali- zation, undue payments have not been made for return upon capital. Pre- War Cost Increases Off-set 4. That pre-war increase in cost of labor and material has been offset by improvements in efficiency, but that the increase due to the war came too quickly to be so absorbed. The cost of operation per 5 cents of operating revenue which, up to 1918, is substantially the passenger revenue per revenue passenger, has been as follows : OPERATING EXPENSES PER 5 1902 1907 1912 1917 1918 Amount 2.87 cents 3.00 cents 2.9 4 cents 3.19 cents 3.61 cents CENTS OF REVENUE Increase over 1902 O.'l's cents 0.07 cents 0.32 cents 0.74 cents From 1902 to the beginning of the World war, electric railway wages increased at the rate of about 2 per cent per year, and material and supplies used in operation at the rate of about 1.0 per cent per year, the average being about 1.5 per cent per year. Electric railway managers were able to counteract such increase in prices by continuous improvements in efficiency so that in 1912 the cost per 5 cents of revenue was only 2 per cent greater than in 1902, indicating an increase in efficiency of about 13 per cent in the ten-year period. August 23, 1919 Electric Railway Journal 395 Since 1915 operating expenses per 5 cents of revenue have increased by about 21 per cent or 7 per cent per year, a rate vv^hich is altogether beyond the efforts of managers and engineers to cope with. Wages Increased With Cost of Living 5. That electric railway labor, as a whole, has received increased ,wages commensurate with th,e increase in cost of living. 5 > [19 77, /C } -4- ) ■1 lu 1/ f If / / / / / t /' 1904 1906 1908 1910 1914 1916 1918 1920 Fig. 1 1906 1910 I9I£ 1914 1916 1918 1920 Fig-. 5 FIG. 1 SHOWS STATISTICS REG.ARDING LABOR AND LIV- ING CONDITIONS; FIG. 5 REGARDING COAL The rise in w^ages since 1907, of electric railway em- ployees, is illustrated by chart Fig. 1 showing represent- ative figures on trainmen's wages and track labor in com- parison with Bradstreet's Commodity Index. It will be noted that wages kept in advance of the Commodity Index up to the beginning of the war. Since 1916, wages have lagged behind the Index, but at the present ject by the United States Department of Labor, the cost of living increased by 61.3 per cent between 1914 and 1919. The corresponding increase in trainmen's wages as shown on the chart, is 59 per cent and in track labor 95 per cent. The foregoing figures and illustrations show that electric railway wages have substantially kept abreast of the increase in prices. That wages in the earlier years of the industry were not comparatively low is proved by the fact that, at that time, there was little difficulty in obtaining labor in competition with other lines of industry except in years of unusual business activity. Cost of Materials Up 6. That the cost of materials used in electric railway operation has increased in proportion to the decline in general purchasing power of the dollar, and there is no prospect of material relief. Electric railways expend approximately 1 cent out of each 5 cents of revenue for materials and supplies, in- cluding coal and purchased power. The larger items of materials and supplies are coal and those which enter in- to maintenance of track and roadway, principally rails, ties and trolley wire. The base price, per gross ton of girder rails, at the mill has been as follows: base price of girder rail per GROSS TON AT MILL 1902 to 1915 1916 1917 1918 1919 (July) $36.00 42.00 60.00 90.00 60.00 Per Cent of 1902-1915 Price 100 per cent 117 per cent 167 per cent 250 per cent 167 per cent Variations in price of girder rail as actually pur- chased by a large operating company, are illustrated on chart Fig. 2. On this chart the prices are given for each year based upon the average price paid in 1895 as 100 per cent. The slight irregularities in price between 1 0 — 0 — 0 — 0 — c RRA IL,B. dS5, WO 0 — 0 — 0 — 0 — 0 — 0 — 0 0 — 0 — 0 f 0 — i V 0 270 260 250 240 230 220 210 200 ¥ 190 C » 160 ^ 170 u . 0- 160 150 140 130 120 110 100 - / [IB 95,10 0% Fig. 2 I89e 894 1896 1898 • 1900 1902 1904 1906 1908 1910 B12 1914 1916 1918 m Fig. 3 1 — ' 0 — 0 — 0 — 0 TRC •'yv "/SB 5,10 7% 0 0 — 0 — 0 — 0 ' / 0 — \ f :A 0 — ' 0 Fig. 4 THESE CHARTS, AND FIG. 5, WERE COMPILED FROM THE RECORDS OF ONE COMPANY, A LARGE OPERATING PROPERTY. THESE SHOW STATISTICS ON GIRDER RAIL, TIES AND TROLLEY WIRE time, with the effect of all the increases made in the past year now in full force, it is probable that the increase in wages fully equals that of the Index. According to reports of the National Industrial Conference, which agree substantially with investigations of the same sub- 1902 and 1916 are due to variations in specifications and points of delivery. This company purchased its girder rail requirements for 1916 and 1917 at pre-war prices, so that the rise due to the war does not show until 1918. 396 Electric Railway Journal Vol. 54, No. 8 Fig. 3 illustrates the average price paid for ties by the same company, based upon the average price paid in 1895 as 100 per cent. This chart shows that just previous to the w^ar, ties in this locality had practically doubled since 1895. In 1918 the average price had risen to 255 per cent of the 1895 price, or about 30 per cent above the pre-war price, while in 1919 the price has risen to 298 per cent cent of the price of 1895, or 50 per cent above that of 1914. Chart Fig. 4 shows the average price paid by the same company for trolley wire, based upon 1895 as 100 per cent. In the period before the war, copper made wide variations, practically all being above the 1895 price, but in 1914 it was only 10 per cent above the price of 1895. In 1917 the price reached a maximum which was 225 per cent of the price in 1895, or about double the pre-war price. In 1918 the average price was lower than that of 1917, and at present the price of trolley wire is approximately 185 per cent of 1895 prices, er about 65 per cent above pre-war prices. The cost of power constitutes approximately 18 per cent of the cost of street railway operation. Of central station power capacity in the United States, approxi- mately one-third is water power and two-thirds steam power. It is probable that electric railway power is supplied in about this proportion. The cost of produc- tion of hydro-electric power has increased comparatively little due to the war, but the cost of steam power has in- creased enormously on account of the rise in price of coal during the war period, and in deterioration in quality of coal. Coal Prices Up, Quality Down Chart Fig. 5 illustrates the rise in price of coal and decrease in quality of coal used by a large central sta- tion in a coal district where the freight charges are small. It will be noted that the average price paid by this company increased from 90 cents per ton in 1909, to $1.12 in 1913-1914-1915, after which a rapid rise began to $1.60 in 1916; $2.96 in 1917, and $3.32 in 1918, being then 300 per cent of the pre-war price. For the first seven months of 1919 the average price has declined to $3.12 per ton. The per cent of ash increased from 11.2 per cent in 1914, to 17.0 per cent in 1918, but has now dropped to the pre-war ratio. The B.t.u. per pound decreased from 13,300 in 1914, to 12,500 in 1918, a decrease of 6 per cent. The heating value has now risen to pre-war levels. With scarcity of coal and rising prices, the quality is certain to decline again, and central stations are probably facing such conditions next winter in view of the foreign demand for coal. The increase in price of coal during the war to sta- tions located at a distance from the mines, is shown by the following comparative analysis of average cost of coal to a large eastern electric railway system at pre- war prices, and at prices governing in the fall of 1918: COMPARATIVE COST OF COAL PER TON AT PRE-V\^AR AND 1918 PRICES FOR A LARGE EASTERN ELECTRIC RAILWAY SYSTEM Increase Per Cent of Pre- War Pre-war 1918 Total Cost at mines $1.50 $2.95 37 per cent Freight 2.20 5.00 71 per cent Tax on freight 0.13 3 percent Demuri age 0.22 0.90 17 per cent Clean coal premium 0.05 1 per cent Total $3.92 $9.03 130 per cent The cost of the coal purchased by this company prac- tically doubled at the mine. The freight rate more than doubled, and toi this was added the tax on freight amounting to 13 cents per ton. Demurrage regulations, together with government commandeering, increased the average demurrage pay- ments from 22 cents per ton to 90 cents per ton. The total cost of coal in this case was 130 per cent greater in the fall of 1918 than under pre-war conditions. The quality of the coal used by this company deteriorated by 20 per cent as indicated by the increased cost of coal per kilowatt-hour in excess of increase in price per ton. While the prices of materials used in electric railway operation have decreased to some extent below the prices caused by the acute conditions of last year, yet, on the average, they are far above pre-war prices, and there is practically no expectation among supply men and students of finance that the purchasing power of the dollar will increase in the immediate future. Immediate Relief Necessary 7. That the estimated small excess of net income over income obligations in 1918, indicates that nearly one-half the industry is in immediate need of relief. The estimate submitted to this Commission of the in- come account for 1918 of electric railways whose records are included in the Census Bureau reports shows, after the payment of bond interest and other deductions from income, an amount of $20,183,413 applicable to divi- dends, surplus and other corporate purposes. This would indicate that, by omitting dividends in part, electric railways in general could tide over the present emer- gency and survive on present rates of fare if prices tend downward substantially in the early future. This might be true if all electric railways were combined in one com- pany, or if the stronger companies could help the weaker ones. This is not the case, however, and it must be borne in mind that the net income as estimated repre- sents average conditions. As it shows gross income of only 11 per cent in excess of all the obligations for in- terest and rentals, it is clear that practically all com- panies whose financial condition is below the average, or about one-half of the total number of companies, are in need of immediate relief. As pointed out before, there is practically no pros- pect of improvement in operating conditions through decrease in prices of labor and materials. Reasons for Uniformity of Costs The extraordinary uniformity in cost of carrying electric railway passengers in the past in large cities and small, on urban and surburban lines, and during a long period of years in which wages and prices have greatly increased, has been due to a balancing of four prime factors entering into the cost of service, namely, length of haul balancing density of traffic, and increas- ing efficiency balancing rising wages and prices. Thus where long average hauls have been given for a single fare, the cost has been balanced by high density of tratfic. The continual increase in prices of labor and materials has been balanced by continually increasing efficiency in management and design of construction and equipment. The latter balance has been irremediably destroyed by the war and the effect has been particularly severe on those companies which combine comparatively long hauls with low density of traffic. The only salvation of this situation is a reasonable, scientific adjustment of fare to cost of service in each locality. August 23, 1919 Electric Railway Journal 397 West Ham's Telephone Control System First to Install System Permitting Immediate Touch with One or all Traffic Regulators — Reduction of Accident Costs a Valuable By-Product IN THE United States, the use of the telephone for the control of traffic conditions along the line has depended in large measure on the initiative of the out- side men except where they have been instructed definitely to call up at regular intervals. In the sev- eral electric railvi'ay installations, for ex- ample, the conductors call up on reaching the terminals or spe- cial traffic points in order to give their time and ask for fur- ther orders. The West Ham (England) Corporation Tramways has gone a step fur- ther. To its original private telephone exchange, it added in 1916 a control telephone set which permits the traffic controller at the board to call up one or all of the traffic regulators stationed at all important traffic intersections and to talk to them in single or multiple. In this way, the desired benefit of telephone control is obtained without any but emergency contacts with the car crews themselves. On a system with two-and- one-half minute and three-minute headways, and sup- plementarj"- overlapping routes almost everywhere, it would be utterly useless to have platform men leave the cars en route. Through the system of immediate com- munication with the traffic regulators, however, any changes necessary in the service can be made almost immediately, as the regulators exercise direct, personal supervision over the cars which pass through their control stations. Four Kinds op Telephones Available The control of traffic is centered at a telephone room in the headquarters of the tramways, where four kinds of telephones are available, as follows: TRAFFIC REGULATOR TAKING INSTRUCTIONS FROM TRAFFIC CONTROLLER (Note alarm bell overhead) The standard post- office or long-distance exchange, which is operated by an as- sistant during regu- lar office hours (9 a.m. to 5 p.m.), and from the car depot between 11.30 p.m. and 5 a.m. During the other hours of the day, calls are handled by the man at the control telephone. An inter-depart- mental telephone with automatic setting and anti-listening-in fea- tures. A sixty-line board, with northern and southern trunk, con- nects with substa- tions, feeder pillars, cross-overs spaced every h mile, section boxes spaced every i mile, terminals, etc. This is the original system for the use of crews and others along the line, and authorized users are provided with jacks to enable them to establish communication. A third trunk on this exchange establishes direct service with the power station for quick action when breakers go out, when portions of the line are to be killed, etc. Finally, there comes the most modern feature of all — the control telephone. This places the traffic controller in touch with any one of his traffic regulators or with any combination or all simultaneously. The telephone instruments at the locations of these regulators are fitted with a bell which not only can be easily heard at a distance of several hundred feet, but which also gives a ring-back so that the controller always knows that the telephone is operating. At the controller's end there are two horns (not unlike phonograph horns), one of which i°, the receiver and the other the trans- mitter. The receiving horn also replaces the bell or buzzer signal. As shown on the accompanying general telephone map, the present equipment has ten control points, but is adaptable for extensions. The control WEST HAM CORPORATION TRAMWAYS. Day Time Date Cause of Delay Locality of Delay IDT^ItaV TRT^FFie REPORT. Receips £ 19 W eaiher Car Services affected proceeding How dealt witli o , If Through UouteB isv wnom ^^^j j^i^^. UAILY TRAFI^'IC REPORT USED IN WEST HAM TELEPHONE CONTROL SYSTEM 398 ElectricRailway Journal Vol. 54, No. 8 installation is confined to the area of West Ham. Two men — one on early duty and one on late duty — handle all traffic control. Their work is so varied that the best way of describing it is to present an abstract from the de- lay reports and the log book. In the latter are recorded all calls with date, time, circuit, name of sender, and message and initials of the traf- fic controller who received the mes- sage. Reports, for example, are sent in as follows: From traffic regulators: Conductor on car 85 reports stiff trolley base. Please advise car sheds. Car No. 43 must go back to the depot. Please arrange for another to take its place. A baker's cart broke down in front of "The Green Man." I have obtained sample of the defective spokes that caused the breakdown A boy was knocked down by Car 101, Motorman Jones We have obtained six witnesses, as follows, name of police officer, as follows Or the crew of the line emergency wagon reports: "We have repaired the break at 'The Baker's Arms.' What next?'" Or an excited passenger calls up from an outside tele- plione to ask: "Has an umbrella marked W. L. G. been founil on the car that left Whipps Cross at 3.15 p. m.?" The foregoing v.'ill suffice to show the varied character of activities that pass through the hands or, more strictly, the ears of the traffic controller*. From the SELECTOR CASE CONTAINING BELL AND BAT- TERY INSTALLED AT TRAFFIC REGULATOR'S STATION ^F^^^'.-CVE 30X£S _ A Si'BSTAT/O/^ S£cr/ON BOXES \T£l.£P»m£S--(S) C/iOSSCV£ff5 Q opening of the day's work, when every traffic regulator calls up to get his time, the traffic controllers are on the job to see that the schedules are kept as close to perfection as is possible. No matter what telephone is used to send the message, these officials are in a position to transmit orders, suggestions and inquiries in a twinkling. In a district where foreign vehicular traffic is extremely heavy and congestion and breakdowns frequent, this means of inter-communication is invalu- able. In addition to receiving every moi-ning a complete report of all accidents and other delays of the preceding day, the general manager can exercise further super- vision of the traffic control system by listening-in at any time. Making the Guilty Party Pay for Accidents One of the valuable by-products of the telephone control system is that it fosters immediate and more detailed reports of accidents without, of course, dis- pensing with the written reports which must be turned in by the employees concerned. It is often possible to give helpful advice at such times to the men on the ground, particularly with regard to securing the names of witnesses, specimens of wreckage, etc. If the vehicle owner is at fault, the West Ham Corporation Tramways does not wait for him to present a bill but immediately puts in a claim for damages to the car: If palpable negligence is disclosed a prosecution may follow. British tramways do not take punishment lying down. As the joint result of careful operation, telephone control and counterclaims for damage due to foreign vehicles, the West Ham Corporation Tramway's third- party claim payments (damage and injury payments) for the fiscal year ended March 31, 1917, amounted to 2.2 per ce^t of traffic revenue or 0.242d. per car-mile and in the following year to about 2 per cent or only 0.197d. per car-mile. These figures a^e all the more impressive because they were obtained during a period of darkened streets, inexperienced platform emt)toyees and heavier traffic. Few Difficulties with Telephone Equipment The operating stafi: of the West Ham Corporation Tramways has long been accustomed to the extensive, all-around use of the telephone. From a maintenance standpoint, the telephones fire declared to be as satis- factory as the installation and v/eather conditions per- mit. Shorts occur sometim.es because only a portion of the telephone wires are in underground conduit. Troubles v/ith individual boxes are nearly always due to their exposed location, war shortage having led to the employment of sets made for indoor use. Protected instruments, like that at the power station, are prac- tically trouble-free. On the whole, the cost of installation and not the cost of upkeep is the chief matter for concern. It can- not positively be proved by figures that an installation of this kind pays for itself many times over in the prevention of severe blockades and in better service to, and therefore more revenue from, the public or in the reduction of accident cost, but the probabilities are all in favor of the telephone. SCHEMATIC DIAGRAM OF WEST HAM TELEPHONE CONTROL SYSTEM The Tramways and Light Railways Association re- sumed the holding of an annual dinner on July 25, with appropriate other entertainment, in London. There will be no annual congress this year in the provinces, owing to the difficulty of securing transportation and hotel accommodations. ■Av>gust 23, 1919 Electric Railway Journal 399 SCHOOL SCOUT PATROLS ORGANIZED BY P. R. T. IN ACCIDENT REDUCTION CAMPAIGN A Many-Sided Safety Campaign in Philadelphia "Miss Safety-First," School Patrols and Bulkhead Signs in Cars Were Among the Features Characterizing the Present Crusade UTILIZING the interior bulkhead spaces over the doors to present forcibly to the public facts of in- terest to the car riders has become a settled policy with the Philadelphia Rapid Transit Company. Under the personal direction of President T. E. Mitten these spaces have been effectively used for informing the public as to car routes, for waging an anti-spitting campaign during the last influenza epidemic and for refuting misstatements concerning the skip-stop sys- tem. References to these crusades have been made in the columns of this paper. More recently the bulkhead spaces have been devoted to a safety campaign for the prevention of accidents to children. Ever since the Stotesbury-Mitten management took charge of the company in 1911 it has endeavored to les- sen accidents among children in the streets, and the re- sults of the eight-year crusade are highly encouraging. Some initial safeguards were the adoption of the near- side car, the equipment of all passenger cars with an approved safety fender, and the enlistment of the co- operation of school authorities in urging safety among pupils and of the police in preventing children from playing on car tracks and hitching onto cars. So helpful were the results of this work during the 1911-1914 period that in 1914 a safety bureau was cre- ated under the auspices of the company, with "Miss Safety First," a young woman possessed of deep af- fection for children and ability to inspire their con- fidence, at its head. The records show the following work accomplished by this bureau: More than 100,000 children have been addressed annually on safety ; during the last year 627,- 000 pieces of safety literature have been distributed; 8000 children have taken the "safety pledge," and 100 safety officers or school "patrols" have volunteered from among the children themselves for patrol duty, this re- sponsibility consisting of cautioning other pupils against dangers in streets and safeguarding smaller pupils to whom danger has no meaning. The boys and girls constituting the "patrol" wear arm bands in the school colors bearing the words "Safety Patrol." They carry whistles to be used in signaling their orders to the children. They are trained BULKHEAD POSTERS USED IN P. R. T. SAFETY CRUSADE 400 Electric Eailway Journal Vol. 54, No. 8 and alert to shepherd their charges across dangerous streets and have been one of the most effective factors in the company's efforts to prevent accidents to children. Since 1914 the company's records show a decrease of thirty-two deaths from accidents among children as compared with the four years previous. MEMBER OF SCHOOL PATROL GUIDING "KIDDIES" ACROSS CAR TRACKS IN PHILADELPHIA The safety publicity campaign conducted in the bulk- head spaces consisted of a series of four signs, which are shown on page 399. The campaign featured "Miss Safety First" and aroused great interest in all of the schools and in the homes of the school children. The first bulkhead sign appeared in the cars from Feb. 19 to Feb. 28. 1019, the second from March 1 to March 20, the third from March 21 to April 6 and the fourth from April 7 to April 19. When the third sign was posted there were also dis- tributed, through the medium of a small box or holder in each car, 2,000,000 copies of a four-page folder en- titled "Making the Streets of Philadelphia Safe for the Kiddies." This was described as "a little heart-interest narrative in words and pictures telling of a distinctly worth-while effort by authorities, children, and 'Miss Safety First' of the P. R. T." The folder was illus- trated with photographs of the school "patrol" at work and gave a summary of the results accomplished. The safety first pledge which the school children take upon themselves under the tutelage of "Miss Safety First" is as follows: "I hereby pledge myself to aid my country and my city by preventing accidents." The pledge of the Philadelphia Rapid Transit Com- pany is that it will continue to co-operate unqualifiedly with authorities, children and "Miss Safety First" in this great humanitarian movement. Educational Publicity in Twin Cities On Twin City System Campaign Was Conducted to Demonstrate Seriousness of Existing Condition and to Help Public Choose Future Wisely IN CONJUNCTION with the present franchise nego- tiations between the Twin City Rapid Transit Com- pany, and the cities of Minneapolis and Saint Paul, the railway company in the latter part of February be- gan the publication of an extensive series of educa- tional advertisements. The first insertion took the form of an announcement that service was being given at less than cost, that such operation would ultimately im- pose direct penalties on the taxpayer, house owner, busi- ness man and workingman, and that facts concerning operating costs would be published regularly in the daily press, in order that the people of the Twin Cities might understand the conditions. The second advertisement announced that it would What Is a Cost-of -Service Franchise? The Cost-of-Service Franchise for your street railways now being considered by the Twin Cities would provide: 1. That City experts determine just what service should be given. 2. That City experts determine what new lines shall be built and what new paving shall be laid. 3. That City experts authorize increased fares when the costs are high and de- creased fares when the costs are low. 4. To stimulate maximum econpmy and efficiency in management, a part of any surplus earnings over the cost of service should go to the Company and the re- mainder be applied to th& reduetioB of fares. Do You Want a Cost-of-Service Franchise? To ^ve in I9I9 the service which unsolicited comments from other cities termed the best in the United States would cost $2,116,691.77 more than in 1917- Giving that service at a five-cent fare would throw your street railways into bankruptcy. '%ct the Twin Cities want that service and need it At this time it is only under a Cost-of-Service Franchise that your street railways can provide it The attemadve way of providing it, is to have the Gly do it under munidpiJ ownership. If you need tt> consider the facts before making up your mind, send for FOUR CHOICES— a booklet giving the doUars-and-cents facts about street railway service. TWIN CITY LINES What Are Your Street Railways Worth? The total invested capital in your street railways is $45,238,000* It is, however, maintained witK reason that the capital invested in any business seldom repre- sents the present value of that business. It may be more, it may be less. Expert valuation li generally necessary to de* tannine the true value. A number of such valuations of portions of your street railway properties have been made; all but one of them reaches a sum which, when extended to the total mileage, approximately equals the capital invested. The difference between expert valuation totak and capital invested totals is often referred to as "water," Is Pavement "Water" Recognized competent engineers in valuing the street rail- way property have placed a valuation of $1,906,208.09 on a part of the new paving paid for by the Company. Some people claim this has no capital value at alL Yet the money for this pavement was furnished by the in> vestors in the Company's stock and other securities. Those who call this investment in pavement "water," would say that a home-owner who has paid out $1,000 for im- provements on his home, is not entitled to consider that $1,000 as added vaJue in his property. Do you think that money invested in the construction of new pavements is "water." Send for FOUR CHOlCES-a bookfct giving the dollar-and- cent facts about the operating costs of your street railways. TWIN CITY LINES Why a New Franchise Is Needed No business man would think of building a million dollar factory on ground leased for only four years. He would want a long time lease before he invested his money. But Minneapolis wants your street railways to build new street car lines that will cost more than a million. Yet the Minneapolis Street Railway Franchise has only four more years to run. A new franchise must be granted before new construction can be undertaken on a large scale. The sooner a new charter is granted, the sooner can the Company borrow the money needed for additional lines. New Minneapolis Lines to Cost $1,144,356.1 Building the needed Seventh Street, Twelfth Ward uid other M'in»fp- a1i> line* would cait $1,144,356.00. TV Serenth Street line .lone would coti $239,290.00. The Twelfth W(Lrd Ime alone would co.t $177,968.00. Budding thne linei not only mean much to the diitrictl •erred but >*auld iietter ttreet car operation generally. Your .b-e trip II for FtulrvM wTlbiD &T« dt 001386 w COM 8ia CaI PROSPECT AVE. UlOthI will d| Nol Good II BaUcbxl PROSPECT AVE. ,!■ ticket S. CO. Nol Good II Deluhed TRIPLICATE TRANSFER USED IN KANSAS CITY reproduction of the transfer used prior to May 1. If a passenger wishes to transfer once only he turnsi it in to the conductor of the second car. If he wishes to transfer twice, the conductor of the second car tears off one coupon and returns the remainder to the passenger. The second coupon is torn off by the third car conductor if the passenger wishes again to transfer. The chief ad- vantage of the new form of transfer is that the com- pany may now obtain an accurate record of the number of times each passenger transfers. The new transfer permits and provides only for time and direction punching and for punching half-fare. The transfer is overprinted in red with the day of the month. 402 Electric Railway Journal Vol. 54, No. 8 Duplex Dial Watt-Hour Meter for Electric Locomotives Using Regenerative Braking TEN new locomotives for the electrified divisions of the Chicago, Milwaukee & St. Paul Railroad are being equipped with Economy watt-hour meters to measure the energy consumed in driving the trains and the energy returned to the line through regenerative braking, each reading being shown on one of two cyclometer-type dials. The locomotives are of the Baldwin-Westinghouse passenger type, each equipped with six 533-hp. twin- 1, 3100 g 102 oi +^ ° 3000 SilOO o <" > 2900 . 98 .£ 2800 ,1; 96 2700 11 94 CL 2600 92 2500 90 2400 88 Accuffar', Per Cent. Rated Load CURVKS SHOWING METER REGISTRATION UNDER OPERATING CONDITIONS armature motors. Each locomotive has one meter. The meters are a modification of the type ordinarily used with single dials. The distribution of certain account- ing charges is done on a basis of the watt-hour con- sumption used by these locomotives for the respective classes of train service. The meters provide a check on this and on the use of power in connection with the handling of the train and also provide operating and engineering data which must be known to check the operation of the system as a whole. An idea of the wide voltage and load conditions can be gained from the fact that the volt- age varies from an average of 2600 on motoring to an av- erage of 3300 on re- generation. Graphs giving the load characteristics are shown in the ac- companying illus- trations. From these graphs it will be seen that there is a variation of less than one-half of 1 per cent in the ac- curacy of registration between motoring and regenera- tion from 25 per cent to 150 per cent of rated load and over a potential variation from 2400 volts to 3450 volts. This characteristic has been achieved through the use of the standard meter element with special series compounding. Each meter has an external shunt FACE AND DIALS OF METER of 800 amp. normal capacity, capable of high overload service. The meter element has one series compound winding around the shunt field. This compound wind- ing is reversed from normal practice and therefore acts as a bucking compound winding when the locomotive is motoring and as a boosting compound winding on regenerating. This winding is a part of the current circuit and carries the full-load current of the meter element which is 10 amp., diverted by the 800-amp. open-type shunt which is cut in on the negative side of the motor group. In mechanical design these duplex dial locomotive meters differ from the regular Economy meters as used in electric railway power-saving work only in the dials and gear trains. The dial is of the duplex type with openings for two sets of figures. The reading for the motoring is above and for regenerating below, so that a subtraction can easily be made to get the actual net energy used for any period. The single meter element drives the two gear trains through a differential, so arranged that when the locomotive is motoring, the energy drawn from the trolley is registered on the up- per train, and when it is regenerating the energy is recorded on the lower train. The reversal is made without loss of motion in the gear train. In the design of this meter standardized parts are used. The meter element is so mounted on a sub-base that it may be removed from the case with little effort and without disturbing any heavy circuits. The case which protects the element is of heavy construction with tight-fitting joints designed to exclude dust. These meters, without their shunts, may be easily checked as 10-amp. units. Association News ATLANTIC CITY CONVENTION, OCT. 6 TO 10 Engineering Standards Committee THE committee on standards of the Engineering Association will meet at association headquarters on Aug. 25 and 26. Several reports of committees are already in the hands of members of the standards com- mittee for advance study. Chairman H. H. Adams has announced the appointment of Martin Schreiber, chief engineer. Public Service Railway, Newark, N. J., as vice- chairman of the committee. Public Service Commissioners at Convention SECRETARY E. B. BURRITT has announced the intention of the association to extend an invitation to all public service commissions to be represented at the Atlantic City convention. It is suggested that com- panies extend invitations to members of their commis- sions and to local and state officers. So much of the program will be devoted to readjustment problems that it is the belief of the association officers that these pub- lic officials would find the convention interesting and profitable. The committee on compensation for carrying United States mail was meeting in New York City as this issue went to press. A report of the meeting will be given in a later issue. News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION PERSONAL MENTION Portland Wage Details Oregon Company Points Out Its In- ability to Meet War Labor Board Award The Portland Railway, Light & Power Company, Portland, Ore., has been advised that the War Labor Board, in its final session in New York, referred to in the Electric Railway Journal for Aug. 16, granted to the em- ployees wage increases amounting to 12 per cent. The increase granted is only three-fifths of the advance asked by the men. It is announced by union officials that negotiations will be im- mediately opened with the company for a further increase. The application to the board was made for higher wages dating from April 1, and in the absence of detailed information it is presumed that the scale is retroactive to that date. The previous scale of wages ranged from 50 cents an hour for the platform men, and those in ordinary labor, to more than $1 an hour for work of an expert character. On April 1, 1917, the mini- mum for platform men was 26 cents an hour, and the maximum 31 cents an hour. The wage has been gradually advanced, until on Oct. 24, 1918, the War Labor Board, after long de- lays, finally announced a scale of 46, 48 and 50 cents an hour for plat- form men. The men, in their last ap- peal to the War Labor Board, asked for a maximum of 60 cents an hour. Franklin T. Griffith, president of the company, in a public statement, said that the railway cannot pay the in- creased wages and continue to operate. He says it is up to the public authori- ties to determine how the emergency shall be met. Mr. Griffith is quoted as follows: The flat increase of 12 per cent in wages to all traction employees of the company means an increase of $27,000 to $28,000 a month in the operating expenses of the railway. The lines are not now, at the present rate, earning fixed charges, and are making no returns to stockholders. The new rate of wages will be 95 per cent higher than two years ago, and with higher costs of materials of all kinds, it puts the operating costs of the railway more than 100 per cent higher than two years ago. The railway cannot pay those charges and live. If we are to pay the increased scale of wages, it will be absolutely necessary that additional revenue be secured. Seattle Strike Vote Postponed The indications were on Aug. 15 that the threatened strike of the empolyees of the Seattle Municipal Railway as a protest against the seniority rule made by Thomas F. Murphine, superintend- ent, would be avoided. The strike vote called by the union has been postponed, and an attempt is being made to settle the dispute. Mayor Ole Hanson has suggested to the representatives of the union that Mr. Murphine's ruling need not be final, and that the men have the right to appeal to the City Council or Board of Public Works, and if Mr. Murphine's ruling is found to be unfair, it can be ordered changed. Mayor Hanson points out, however, that the union must agree to abide by that decision, and that the threat of a strike will not affect the settlement of the question. It is not believed that the matter will be taken to the City Coun- cil. New York Surface Railway Wages Advanced On Aug. 19 Judge Mayer in the Fed- eral Court at New York approved the suggestion of Job E. Hedges, receiver of the New York (N. Y.) Railways, to increase the pay of all employees of the "green car" lines 25 per cent. An increase of 10 per cent had been made to the men the previous week, but this was not satisfactory to members of the New York Railways Brotherhood, who called upon Mr. Hedges on Aug. 19 to discuss a proposal for an additional increase. The increase is equivalent to that which was granted by the Inter- borough Company to its employees in the subway and elevated strike settle- ment. On the same day Judge Mayer wrote to Louis Fridiger, representing the Amalgamated Association, which con- ducted the strike in Brooklyn, that he would not tolerate any attempt of the Amalgamated to disrupt the Brother- hood of the New York Railways. He said the brotherhood had protested against the activities of agents of the Amalgamated and had continued faith- ful service during the Interborough strike and while Mr. Hedges and Judge Mayer himself were coming to a de- cision upon the employees' request for more pay. Judge Mayer declared his belief that the public was "sick and tired" of strikes and bickerings. He said that it was the duty of the court and the re- ceiver to preserve the use of the "green car" lines for the public, as well as to insure the safety of the investment by thousands of persons, and that he pur- posed placing the blame upon the shoul- ders of the Amalgamated officials if they caused the strike. The Third Avenue Railway, New York, N. Y., on Aug. 20 announced an increase of 25 per cent in pay to its uniformed men, effective immediately. The company operates in Manhattan, Bronx and Westchester. Under the in- crease the men will receive from 52 to 62 cents an hour. They had been get- ting 41 to 49 cents an hour. "L" Nearing Completion Entire Frankford Line, Philadelphia, Expected to Be Completed Some Time Next Year Such rapid progress is being made in the construction of the Frankford ele- vated line which extends from within a short distance north of Arch Street, Philadelphia, to Dyer Street, Frankford, that the belief is expressed by munici- pal officials that the entire road will be built and in operation before the close of 1920. ELEn^ATED Superstructure Completed The superstructure of the elevated has been completed on Front Street to Callowhill, and the Phoenix Iron Com- pany is now building the road south of that point to within a short distance of Arch Street, where, according to the plans, the physical connection with the Market Street subway is to be made. Plans and specifications have been drafted by the Department of Transit for continuing the big operation, and proposals will be opened the latter part of this month which will call for work and materials that will involve an ex- penditure of several millions of dollars. The most important of these is the fur- nishing and laying of rails for a double track the entire length of the super- structure, a distance of 51 miles, mak- ing 11 miles of track. Proposals will be opened soon by the department for con1;inuing the construc- tion of the road from the present ter- minus at Dyer Street to Bridge Street. These proposals will call for concrete foundations and column piers to sup- port the superstructure. Proposals will also be received soon for razing eight structures on Water Street above Arch, and a like number of buildings on Front Street, all of which have been acquired by the city under condemnation pro- ceedings. The removal of these build- ings will permit of the erection of the superstructure to the point where the line will connect with the Market Street subway. Under the specifications all the foundation piers and columns must be completed by Dec. 31 of this year, and the laying of the double-track by April 30, 1920. Plans Construction of Stations Plans have also been completed, and in a short time the department will ask for proposals for erecting more pa?sen- ger stations on the line of the elevated railroad. The matter of the lease for the opera- tion of the road by the Philadelphia Rapid Transit Company remains to be arranged. 404 Electric Railway Journal Vol. 54, No. 8 Subway and Elevated Tied Up LTu^^wMSe ind'°a"m S Short Strike in New York Settled on Basis of 25 per Cent ^ix hours. Employees who volunteer to Wae-e Increase '^'^^ overtime are to receive the regu- ^ lar rate v^fhile those Vfho are required The trainmen in the employ of the the settlement collusion on the part of ^o do so are to get time and a half, Interborcugh Rapid Transit Company, the management and the Brotherhood according to the ruling. The wages of New York, N. Y., went on strike on to prevent the Amalgamated from mak- ot^er employees are too numerous to be Sunday morning, Aug. 17, tying up the ing any progress toward organizing given in detail, but m general the em- subway and elevated lines of that com- the men. ployees other_than trainmen receive an pany in the Boroughs of Manhattan The rates of pay which were in effect increase of 45 per cent. ^ and the Bronx and the extensions to previous to the strike settlement are N° mention was made m the ruling Brooklyn and Queens. The men who as follows: company s application for in- went out belonged to the Brotherhood p^^^i^^ Service Cents '"^^'^.'^ ^^res to m^et the wage increase, of Employees of the company. They Motormen first year tso except a reference to Receiver Rolla struck to enforce demands for an in- ZcreJe''""^'^ ^^^^ crease in wages amounting to 50 per Motormen, fourth year 591 edse. ^ , Motormen, thereafter i 62 J C^iil'- Conductors, first vear 43 n/r, i , ±1 t i* 1.' Roads Idle Two Days conductors, second year 44 Massachusetts Investigating Conductors, thereafter , 45 rnmrnisstsinn Fi1l»H For forty-three hours not a train Guards, first year 39 v^ommisbion riiiea was operated on the lines. A settle- guards! the°"ifto^^: i!: ^ To replace Robert F. Herrick, Mil- ment of the matter was finally brought Towernien, first class, first year 46 ton; James L. Doherty, Springfield; about on the night of Monday, Aug. 18, ^ic'Ld%'ass%7st y^^^ George W. Anderson, Brookline, and and service was resumed in full on the Towermen! second class,' second year... 46 Levi H. Greenwood, Gardner, who have morning of Tuesday, Aug. 19. The Iwi^'Smln! 'lecond''''yeaf ! ! ! ! ! ! ! ! ! ! declined to serve on the Massachusetts men will get an advance of 25 per cent. Special officers, first" year 35 Electric Railway Investigating Com- The previous week they had been ad- |Srm°'^^enNrTytar!'^!': ! : :! mission, Governor Coolidge has nomi- vanced 10 per cent. The terms of the Platform men! second year 35 nated Roland W. Boyden, Beverly; settlement follow : The motormen, conductors, guards Charles Giddings, Great Barrington; 1. The men to return to work immedi- and towermen get one day off per Charles S. Ashly, New Bedford, and ^'I'.'^A flat increase of 25 per cent of the month with pay and the switchmen, David A. Belden Boston and Haverhill rates of all the wages paid over and above special officers and platform men are who have accepted and been confirmed 'TAyrother^cutstlins'^to be negotiated f^'iven two days off per month with by the Council. The other members of between the Brotherhood and the company, full pay. the commission are Ex-CongreSSman and in case of the failure of such nego- ' Charles G. Washburn, Worcester; Sen- tiations, to be arbitrated as provided for in . ^ i j? t-i tt i <• the constitution approved by the directors^ ^j, T r^.iic Wqo-^ AwiirH Annminrprl '^^^^^ Cavanaugh of Everett, Hardy of 4. All members of the Brotherhood of bt. LouiS Wage Award Announced Huntington, and Walsh of Boston, and to be . 4'to%d\o\hetrform^ A wage increase of 45 per cent has Representatives Kneeland of Winches- each to retain his individual seniority in been granted to employees of the United ter, Young of Weston, Allen of Nor- the service. Railways, St. Louis, Mo., in a decision wood, Maloney of Chelsea, and Mc- The platform expense of the com- handed down on Aug. 15 by the Public Donald of Boston. It is expected that pany will be increased $4,800,000 a Service Commission of Missouri. All the commission will begin work imme- year, under the settlement. Officials increases are to date from June 1, 1919, diately. of the company made it plain that and become effective on Sept. 1. unless the company receives relief if the men accept the award the ad- -i r< • o through an increase in fares the rail- vance authorized will make the total in- Railway Concessions Sought way faces bankruptcy. crease in the wages of the men 96 per m MexiCO The strike was settled at a six-hour cent since June 1, 1918. Approximately Applications filed by American and conference in which officials of the 5500 workers are benefited. Under the other foreign investment interests for company, officers of the Brotherhood, present sliding scale of wages the car- concessions for the construction of Public Service Commissioner Nixon j^ien receive a minimum of 36 cents an electric and steam railroads and various and Governor Smith participated. hour and a maximum, which is not at- other kinds of industrial enterprises are The tying up of the lines resulted tained until the ninth year of employ- now pending with the Department of in great confusion. The steam rail- ment, of 42 cents. Communications and Public Works of roads put on extra cars and trains The men, in recent wage demands, the Mexican government. It is indi- and the surface lines did their best, sought increases on the following basis : cated by the attitude of the Carranza but the facilities afl^orded by them were For the first three months, 55 cents an administration toward outside capital totally inadequate to cope with the hour ; for the next nine months, 60 cents that these applications may all be re- more than 1,500,000 passengers a day, an hour ; for the second year and there- jected. The government has already who were so unexpectedly thrown upon after, 65 cents an hour. adopted the policy of not granting any them for transportation. The commission fixed the wage scale new concessions for the construction of The Mayor Ignored follows: First year, 50 cents an additional lines of steam railroad. It hour; second and third years, 55 cents has announced its intention of doing on The strike has not been without its an hour; after the third year, 60 cents its own account whatever railroad animosities. Mayor Hylan, avowed an hour. building may be deemed necessary, advocate of municipal ownership, sees The men also had demanded an eight- adding such lines to the National Rail- in the strike only a great conspiracy hour day, to be completed in nine hours, ways of Mexico. on the part of the company to secure time and a half for overtime and a Recently application was filed with an increase in fares. Shut out from guarantee of $110 a month for conduc- the Department of Communications and the negotiations which resulted in the tors and motormen of the company on Public Works for a concession to con- settlement, he and the District Attor- the extra list. struct an electric interurban railway ney have been ^vriting letters to each The arbitrators ruled that the men through the oil fields of the Gulf Coast other. They promise a Grand Jury shall complete their eight hours work region, connecting Tampico and Tux- inquiry. On the other hand, the Amal- in nine hours on 40 per cent of the pam. The proposed line would be about gamated Association, which apparently runs; in twelve and one-half hours on 120 miles long. No action has as yet has been making little headway in its 40 per cent of the runs, and in four- been taken upon this application, efforts to organize a local among men teen hours on 20 per cent of the runs. American oil interests are back of the in Manhattan, sees in the strike and Work on holidays is not to exceed eight project. August 23, 1919 Electric Railway Journal 405 Pittsburgh Men Go Out in Spite of Contract A Story that Puts the Blame Where It Properly Belongs Purposely Told at Length Arrangements to operate the lines of the Pittsburgh (Pa.) Railways de- spite the strike that has tied them up since midnight on Aug. 14 were started by the receivers of the company on Thursday night, Aug. 21, after the platform men had voted by an over- whelming majority against returning to work under the wage award of the War Labor Board. The hope of the receivers was that they might be able to resume opera- tion with at least a part of the strikers in view of the fact that the action of Division 85 of the Amalgamated Asso- ciation in calling the strike was a vio- lation of their agreement following the May strike to accept the arbitration of the War Labor Board. As a result of this situation the re- ceivers contended in a public statement issued on Thursday night, Aug. 21, that no man by returning to work would imperil his standing as a union mem- ber. If the strikers failed to respond to their call, however, the receivers announced their intention of manning the cars in some other way. On the afternoon of Aug. 21 upon the advice of W. D. Mahon, interna- tional president of the Amalgamated Association, Division 85 voted on the question: "Shall Division 85 return to work, perform its contract obligations and live up to the laws of the inter- national union?" Men Vote Not to Return The vote was "No," 2521 to 63. The receivers immediately started arrange- ments to resume service without fur- ther dealings with the local union. They specified, however, in their public announcement that any striker return- ing to work would be considered and dealt with as a union man. They ap- plied to the Mayor for police protection and immediately all policemen on vaca- tion were ordered back to duty. The platform employees, 3300 in number, walked out at midnight on Aug. 14 in protest against the small- ness of the award made to them by the War Labor Board. The men, in striking, repudiated an agreement that bound them to accept the award. More- over, they struck in the face of advice from the officers of the local division of the union and in defiance of the or- ders from the international officers. The men have been sued by the receivers of the railway for $900,000 danng'>s, and have been accused, by counsel for the receivers, in a more recent court action, of having sacrificed their standing in the eyes of the law. Oppo- sition of the international officers of the union to this strike has become so pronounced that the strikers have been threatened with expulsion from the Amalgamated Asssociation unless they return to work and live up to their agreement. The Pittsburgh award was made on Tuesday, Aug. 12. The men had asked that their wages be made 55, 58 and 60 cents an hour, according to the length of service; these figures were 12 cents above the existent rates for the respective classes. Instead, they were given a 12 per cent increase, which made their wages 49, 52 and 54 cents. Strike Threats Made Next day there was a hubbub of strike threats among the men. The situation darkened. At midday, the receivers issued a statement, appar- ently to offset this talk of a walkout. The statement caused a mild sensation, for embodied in it was the text of an agreement, signed by the receivers and the representatives of the men, which absolutely bound the men to accept whatever decision was made by the War Labor Board. It was the first hint of the existence of such a document. The statement showed that the agree- ment was drawn up on May 19, last, just at the close of the four-day strike at that time. The crucial paragraph, and the one upon which the strike was later outlawed by the national leaders of the men's own union, read: It is further agreed that the decision of said board after approval by the said court (the United States District Court, of which the railway is now a ward) shall be valid and binding- upon the parties hereto. Eight men of the union had signed it. In order to validate this clause in the most evident manner, the receivers went into the district court the next day, Thursday, and petitioned the judges to approve the award. At the same time they issued a statement an- nouncing their intention of abiding by the award, and their confidence that the men should be held to it. It was also made plain in the same statement that even the increase allowed by the War Labor Board would necessitate another and, perhaps, a substantial ad- vance of the fare. The present fare was put into effect only fourteen days before and made increases in all the rates. It would take $1,050,000 to give the men the 6-cent advance, the re- ceivers claimed. In this connection they declared: If these wages are paid no justice can be done to tlie people whose money Is honestly invested in the property, e.xcept by a further increase in fare together with a material reduction in the service, whicli has been suggested as a last resort. We wish, if possible, to avoid the api^lication of these means of raising additional rev- enue ; but we cannot shirk the responsibil- ity of considering it as a remedy — and one which we contemplate with grave appre- hension. If the law permitted, a possilile solution would lie in direct help from the city in order to avoid excessive fares. If this is Impossible at present, the city and bor- oughs still could help very materially by relieving the railways of many of the burdens. As the day wore on it became even more plain that a strike was inevitable. The call went out for the meetings at which the men were to cast a strike vote. The strike vote was cast first by the night men. They were unanimous for a walkout. While they were thus engaged the wage committee for the men waited upon the receivers and asked them to petition the court for a straight 12-cent increase. The receivers refused. Mayor E. V. Babcock ad- dressed a letter to both sides in the con- troversy, demanding that a strike be put out of mind, and giving warning that it would probably be unpopular, if attempted. A committee of business men and officers of the Chamber of Commerce jumped into the breach and insisted upan amicable settlement. William D. Mahon, international presi- dent of the Amalgamated Association, addressed a wire to the men warning them to "go slow." William B. Fitz- gerald, first vice-president, wired that a strike would probably be illegal. In the face of all this, the day men voted solidly to strike. Three hours after they had cast their ballots, the strike was on. Men Seize the Reins It became apparent then that the men had literally seized control of the situation. P. J. McGrath, international vice-president, admitted to the business men's committee that "these street car men will not listen, even to their repre- sentatives. They are working on their own authority in this instance." Immediately upon the beginning of the strike, the receivers embarked upon a policy of publicity that has since characterized their conduct. They be- gan to explain the situation in the most minute detail in statements issued two or three times each day. The first of these statements, dictated on the first morning of the strike, declared that the receivers had asked Messrs. Mahon and Fitzgerald to Pittsburgh in the hope that the international officers could be impressed with the fact that the strike was wholly illegal, in view of the violation of agreement by the men, and that the officers might order the men to return to work. Unless that was done, the statement went on, the receivers would go into court at once and ask for an order requiring a spe- cific performance of contract on the part of the men. Later that day the receivers gave warning that they con- templated a rejection of the entire principle of collective bargaining unless the union was able to prove its power to carry out its agreements. Recourse would be had to individual negotiations with the men, it was threatened. Business men, perturbed by the havoc the strike was working with them, begged the receivers to pay the men the 12 cents increase. This only drew from the receivers a tart reply to the effect that "although we can again in- crease fares with the consent of the Public Service Commission, we cannot compel people to ride on the cars, and experience has taught us that increased fares do not by any means insure in- creased revenues." The business men thereupon retired from the situation 406 Electric Railway Journal Vol 54, No. 8 The Mayor brought the receivers and representatives of the men together on Saturday morning, Aug. 16. They con- ferred all day and got nowhere. In desperation, Mayor Babcock wired to Mr. Fitzgerald to come to Pittsburgh and take charge of the situation. To this Mr. Fitzgerald replied: I cannot participate in this conference (the meeting of the receivers and men). The membersliip of our organization in Pittsburgh are acting upon their own ini- tiative. Tlie local officers and members, from the telegrams that have been sent them, clearly understand the position of their international organization in connec- tion with the present controversy. The telegram was immediately seized upon by the receivers as the basis for a call to the men to be prepared to act as individuals in the event the com- pany decided to operate the cars. Their statement read : Should it become necessary for us to call for men to operate the cars, notwithstanding the strike, it must be remembered that union men who respond to the call will not thereby impair their union standing. In fact, they would be doing their organization a service by protecting its good name through the faithful upholding of its con- tracts. The strike is not binding upon any- one, because it is contrary to the laws of the organization and against the protest and instruction of its international officers, as well as in repudiation of its signed agreement. The men agreed to take a referendum on Aug. 21. On Sunday, the receivers appealed to Mr. Mahon, asking: "Are you in a position, as officer of the organization, to require the members of the local divi- sion to comply with the said agree- ment?" Coincidentally, they made a threat that they were "formulating plans, which, with the co-operation of the public, will result in the operation of the street cars at an early date." Mr. Mahon's answer to the appeal from the receivers came in the form of an earnest suggestion to the strikers to reconsider their action, and it was accompanied by a request that the re- ceivers deal leniently with the men. Meanwhile, the receivers had entered suit for damages against Division 85 of the Amalgamated Association in the United States district court. The suit names the association, eight members of the wage scale committee of the as- sociation and 100 motormen and con- ductors who were alleged to have been active in the pre-strike agitation, as the defendants. The receivers claim the $900,000 to compensate them for the loss of revenue that has resulted and must hereafter result through the failure of the cars to operate. The re- ceivers reserve the right to add to the list of defendants. On Tuesday afternoon, counsel for the strikers appeared in court and filed objections to the wage award as made by the National War Labor Board. Great stress was laid upon the rate of wages now paid railway men in other cities of America, notably Detroit, Bos- ton, Cleveland, Philadelphia, Chicago and New York. Attention of the court was also called to the fact that the Homestead & Mifflin Street Railway, operating a system about 12 miles from Pittsburgh, was paying its men 60 cents an hour. At the same time the strikers issued their first public statement. It was an attempt to justify their repudiation of contract. They said: The record of the men in keeping their obligations is vastly better than that of the Pittsburgh Railways ; the courts of the county are filled with lawsuits brought by the city and other interested parties in an endeavor to compel this corporation to comply with its solemn obligations, while this is the first time that such a charge has been brought against the members of this organization. If the dispute is to be adjusted, it will not be by measures of coer- cion, but by recognition on the part of the receivers and the public of the facts in the case. The district court on Wednesday morning, took up the hearing on the objections of the men to the award as made by the War Labor Board. Attorney George E. Alter, counsel for the receivers, immediatley called the attention of the court to the fact that the men had gone out on strike since the award was made. Consequently, he argued, they had no standing in the law and could have none until the re- sumed operation of the cars. He asked, therefore, that their objections to the award be stricken from the records. Attorney C. Elmer Bown, for the men, admitted he was a trifle uncertain as to the legal status of the men, in view of the strike, and moved that the court set a later date for a hearing on Mr. Alter's motion. Friday morning was named by Judge C. P. Orr. Judge Orr, speaking of the situation in which the men now find themselves, said: Tliey are in a very unpleasant position and the stand tliey have taken is unfor- tunate. A board of arbitration is a court and men are bound to honor decisions of court. Some people, it is true, break con- tracts ; but I have my doubts as to the morality of a man, or body of men, rich or poor, who will willingly break an agree- ment, as in this case. Men Reverse Their Position Copies of the minutes of the re- ceivers' meetings, supplied to the Elec- tric Railway Journal, indicate that the suggestion that the award of the War Labor Board be made binding was the direct proposal of the men and was incorprated in a letter submitted by the authorized ofiicers of the union May 9, last. All through the strike last May, the men demanded unequivocal approval of the principle of a binding award, and in this strike they are as- suming opposition the position and are directly fighting it. On behalf of the receivers, it has been made plain that the wages in other cities are not fair criterions of what should be granted in Pittsburgh. The 12 per cent increase was given because the cost of living had in- creased 12 per cent in one year, and the increase was in keeping with that made by the War Labor Board at the same time for other cities. It is pointed out by the receivers that in the hearings before the War Labor Board in Washington, only two wit- nesses were put upon the stand by the street car men, although in other ar- bitration hearings as many as 25 or 30 were called upon to prove that higher wages were justified. Aurora-Elgin Strike Continues Up to Aug. 19 there was no apparent change in the strike on the Aurora, El- gin & Chicago Railway, Wheaton, 111. Service has been suspended since 4 a.m. on July 30. The appointment of a receiver for the road has apparently had little effect on the strike. During the week ended Aug. 16 all- day conferences were held between rep- resentatives of the men and Edwin C. Faber, manager for Receiver Joseph K. Choate, and while no settlement has been effected, some progress has been made. Mr. Faber announced that a tentative agreement on the classifica- tion of employees other than trainmen had been made. Interurban Men Strike Platform men of the Ohio Electric Railway left their cars on the morning of Aug. 15. The entire system, with the exception of the Dayton-Indian- apolis division and and the Dayton- Cincinnati division, is at a standstill. Local lines at Zanesville, Newark and Lima are also affected and there is some trouble on the line at Springfield. Aside from the asking for an increase of 10 cents an hour in pay, the union men want the miscellaneous employees recognized as members of the union with an increase of 25 per cent in wages. This the company has so far refused to do. The company offered an increase of 3 cents. B. R. T. Recognizes Union The Amalgamated Association has won recognition in Brooklyn. On Aug. 14 Judge Mayer, by whom Lindley M. Garrison was appointed receiver of the Brooklyn Rapid Transit Company, wrote to Frederick P." Royce, general manager for the receiver, that it had been established to the satisfaction of Public Service Commissioner Nixon and himself that at midnight on Aug. 8 more than 50 per cent of the employees of the company eligible to membership in the Amalgamated were enrolled members of the association. He re- quested Mr. Royce to take up the mat- ters in dispute in the absence of Mr. Garrison. He laid down the procedure as follows: The next step under the agreement is to entertain the grievances presented oy the committee, headed by E. D. Smith, or such substitute, or such committeemen that may be properly substituted in place thereof, according to such committee at least the same recognition as is now accorded the Brotherhood of Locomotive Engineers, to receive the committee presenting the griev- ances, and take the same up with such committee with such advisers or counsel as such committee selects. In accordance with these instructions efforts to settle in conference the dif- ferences which resulted in the recent strike were begun on Aug. 19 when a committee of the Amalgamated Asso- ciation went into conference with Mr. Royce, in the absence of Receiver Lindley M. Garrison, and George D. Yeomans, counsel for the company. Failure on the part of the conferees to agree on the matters in dispute will re- sult in arbitration. August 23, 1919 Electric Railway Journal 407 Makes Plea for Co-operation The Philadelphia (Pa.) Rapid Transit Company has reprinted in pamphlet form a letter from President T.. E. Mit- ten to the employees. The trainmen are asked to read the letter carefully and carry it with them. The letter is a plea for still closer co-operation. The company says it wants more rides at 5 cents, not fewer rides at higher fares. The appeal follows in full: We added $1,750,000 to our annual pay- roll in August, 1918, and overcame the cost by skip stops and other economies. We have added approximately $2,250,000 to our annual payroll in August, 1919, and will overcome the cost by withdrawing all duplicated or ""necessary car service and removing all wasted effort from the car schedules. Wc Want More Rides at 5 Cents Not Fewer Rides at Higher Fares Street-car riding is a habit which can be encouraged. Co-operation in this, as in all other mat- ters, will work wonders. The management must provide the best car service for the greatest number of peo- ple at the lowest possible cost. Conductors, by alertness and courtesy, must endeavor to make the street-car ride an agreeable experience to the passenger — a smile always helps. Motormen must watch out for passengers and space the cars to catch the short dis- tance riders — pick up all the nickels. Employees generally must never miss a chance to help win the public. Tell every- body what we are now doing and what nine years of co-operative effort has accom- plished in building wages up and keeping fares down. Note the following: Philadelphia, up to 1911, was always in trouble with its street-car system — strikes every little while, men underpaid and the worst service imaginable. Deep-seated prejudices were established in the mind of the public and the employees were openly hostile to the management. Philadelphia, since 1911, has suffered less from labor disturbance on its street rail- ways than any other large city. Philadelphia's street-car service is sup- plied to-day by a loyal and satisfied body of men, who are a credit to the company and of whom the city may be justly proud. Philadelphia has to-day less trouble with its street-car service than ever before in its history. Philadelphia has retired all of its old. four-wheeled cars and has to-day a greater proportion of modern, double-truck cars than any other large city. Philadelphia is to-day the only large city in this country where street-car fares have not been increased by some method. A New Labor Policy Rolla Wells, receiver for the United Railways, St. Louis, Mo., has an- nounced that the company will abandon all secret lines of communication by which it has been getting information of the deliberations of the union. Mr. Wells also made known the fact that he had discharged James F. Brady, con- fidential employee of the claims de- partment. In regard to the decision to terminate the supply of "inside in- formation" about union matters, Mr. Wells said: I am doing this in fairness to our em- ployees. In the future their union meet- ings are not to be spied upon with the consent of the receiver. All such informa- tion will now cease to be received by the company. We are going to act open and above board in our dealings with our em- ployees who belong to the union. We shall be fair with them. As a matter of fact, I do not care what goes on at the union meetings. K. M. Nelson, the head of the local branch of the union, expressed himself as delighted with the announcement made by Mr. Wells and said it assured co-operation of the employees with the company. Improvement Program Announced Complete rehabilitation of the prop- erty of the United Railways, St. Louis, Mo., within the next year and a half is the plan of Rollo Wells, receiver, and Albert T. Perkins, general manager. Among the improvements pJanned are the following: Use of 100 lb. T-rails for relaying purposes. Purchase of a large number of new cars with modern motors. Relaying of 21 miles of rail before cold weather sets in, at a cost of $750,- 000. This is twice the usual amount spent in the past. Filling with dressed granite blocks the space between tracks. Improvement of various carhouses and repainting of cars at the rate of two a -day. All the 1445 cars of the company will be refurnished. Coke will be used for heating this winter, and 5000 tons have been ordered. Strike in Des Moines The city of Des Moines, la., on Aug. 18 had been without electric railway service for six days. Employees of the Des Moines City Railway went out on strike on Aug. 13 on account of dis- satisfaction over the ruling of Judge Wade of the Federal Court, on Aug. 5, which provided for temporai-y relief in the wage dispute between the company and the men. Judge Wade's ruling failed to take into account the claims of the men for retroactive pay. The men claimed that they were entitled to increased pay from March 1. On Aug. 18, upon application of the city of Des Moines, Judge Wade ordered the issuance of receivers' certificates to cover the $100,000 which the men claim is due them. Immediately after the issuance of the order Emil G. Schmidt, president of the Des Moines City Railway, was served with a notice by the employees that they would not return to work until the money for the certificates was deposited in the bank. While jitneys partly relieved condi- tic.ns resulting from the strike, private automobiles and trucks proved the real solution. Louisville Men Strike A general strike of the employees of the Louisville (Ky.) Railway started at midnight on Aug. 19 with about 1300 men out. About twenty cars were run- ning the first day. There were mild disorders, resulting in two arrests, up to noon. Patrolmen rode on the front and rear platforms of all cars run. Such cars as were run carried very few passengers. The matters not agreed upon were apparently of small moment, and the indications on Aug. 19 were that the strike will not be of long duration. Increase in Wages in Baltimore On Aug. 16 the wages of the train- men and other employees of the United Railways & Electric Company, Balti- more, Md., were increased approximate- ly 10 per cent. In the case of motor- men and conductors the rates in cents per hour were changed as follows: Previous Pay New Rate Per Hour Per Hour First three months.... 41 45 Next nine months 43 48 Thereafter . . .i 45 50 With the increase in wages of plat- form men the minimum monthly wage was raised to $90. It had previously been $75. The minimum is guaranteed to every car man who reports daily whether or not he has a run. In the case of other labor employed by the company the increase is a flat 10 per cent. The increases were ordered after a conference on Aug. 13 between a sub- committee of the United Railways As- sociation and President C. D. Emmons. In discussing the niatter Mr. Em- mons said: We had expected to take up the question of wages with ovir men at the conclusion of the rate case, but on request of the com- mittee from the association we felt that the question should be settled immediately and the amount of money be included in our figures before the commission. I appreciate the way in which our men have conducted the negotiations. It was very gratifying to me to know the kmd ot men with "whom I will have to deal in Baltimore. The increase in wages, which will mean an additional expense of about $1,000,000 a year, caused a realignment of the company's plans for increased carfare, necessitating annual revenue to cover this large increase in the pay- roll. A significant point brought out at the fare hearing before the Public Service Commission, on Aug. 18, was that the people's counsel would concede that the United Railways was entitled to a higher rate of fare than the present 6 cents. The question is how much higher the commission will be willing to'fix the rate. The original petition of the company under which the present hearing is .being held was for a 7-cent fare with four tickets for 25 cents. Even before the increase in wages it was seen by the company's represen- tatives that this rate would not suffice to cover the augmented expenses of the railway. The petition has not been amended, "however, but the company's attorneys have indicated that they may ask for as high a rate as 8 cents. Strike Again Ties Up Muskogee Lines Street-car service in Muskogee, Okla., which was resumed on July 17 follow- ing a strike which began on May 30, was again interrupted when the car- men walked out a second time on Aug. 1. Failure of the company to stand by the terms of the recent arbitration award granting the men seniority rights, was given as the cause of the second strike. Company officials de- clare that the terms of the contract have been fulfilled. 408 Electric Railway Journal' News Notes Convention of Amalgamated Associ- ation.— The sixteenth convention of the Amalgamated Association of Street and Electric Railway Employees has been called for Sept. 8 in Chicago, 111. The meeting will be held in the Ashland Boulevard Auditorium. The head- quarters of the association will be at the Briggs House, corner Randolph and Wells Streets. A Railway Hires a Humorist. — Edgar A. Guest, Detroit, Mich., who has a humorous column on the editorial page of the Free Press daily, is contributing a page of jokes every week to the Service Spotlight, the official publica- tion of the International Railway, Buf- falo, N. Y. The Service Spotlight is placed in the "Take One" boxes of the International Railway's cars every Monday morning. Cripple Creek Short Line to Be Elec- trified.— Announcement by the Cripple Creek Short Line, which operates be- tween Colorado Springs and the gold mining camps, is to the effect that the road will be electrified, construction to begin in September. Electric power will be purchased, according to the announcement, from the Arkansas Valley Railway, Light & Power Com- pany, and another central station com- pany. Burlington Employees on Strike. — On Aug. 8, the employees of the Bur- lington (Vt.) Traction Company went on strike. The men seek a wage schedule of 50 cents an hour for an eight-hour day, with time and a half for overtime. They also demand the reinstatement of some of their number who were discharged recently. The company in a statement on Aug. 10 said that motormen and conductors had been receiving from $18 to $23 a week, according to length of ser\ice, and were liberally paid for overtime. The statement added that the company was unable to meet the demands without in- creasing its present 5-cent fare. Arbitration Accepted by Memphis Men. — Agreement of officials of the union and of the Memphis (Tenn.) Street Railway that an arbitration board should settle demand for in- creased wages was ratified on the after- noon of Aug. 17 by the men. The ar- bitration board will consist of three members. The union and the railway each will name a man and these two will select the third member. The demand of the union members was for 75 cents an hour flat. At present the men are paid 36 cents to 40 cents. Suburban Employees Demand More. — The employees of the New Jersey & Pennsylvania Traction Company, Tren- ton, N. J., held a meeting recently and decided to go on strike if an additional wage increase was not granted. A three-year contract between the com- pany and the men expired on July 21. This contract called for a closed shop, but at its expiration the company re- fused to grant a wage scale of 60 cents an hour, saying that the financial con- dition of the company would not permit it to grant another increase. Chicago Suburban Line Tied Up. — On Aug. 16 the trainmen of the Ham- mond, Whiting & East Chicago Rail- way, Chicago, 111., went on strike be- cause the company had refused to meet their wage demands. This company has an operating agreement with the Chicago Surface Lines for use of the city tracks, and the employees asked for the Chicago wage scale. The man- agement asked for a 7-cent fare to help meet this demand. The authorities in- the three cities refused the petition and the tie-up was the result. It was re- ported that the city of Hammond, Ind., would ask for a receiver to operate the load. No Strike at St. Joseph, Mo. — Pros- pects of a strike of trainmen of the St. Joseph Railway, Light, Heat & Power Company, St. Joseph, Mo., have been averted by the decision of the men to abide by their contract with the com- pany which provides that no strike shall be called on account of a wage mis- understanding until the matter has been laid before a board of arbitration. The employees are negotiating with the company for an increase of 10 cents an hour in pay. The company has asked the men to wait until the Public Service Commission of Missouri has disposed of its petition for an 8- cent fare. New Wage Scale in Clarksburg. — The new wage scale of local union employees of the Monongahela Valley Traction Company was signed at Clarksburg, W. Va., on Aug. 14. By the new agree- ment the employees are granted sub- stantial wage increases based on the length of service with the company. The new working conditions call for a closed shop. The new wage scale is as follows: For the first six months on city lines, 40 cents an hour, on inter- urbans, 40 cents an hour; second six months, city, 42 cents; interurban, 42; third six months, city, 43, interurban, 44; fourth six months, city, 45; inter- urban, 46; fifth six months, city, 47; interurban, 48; sixth six months, and thereafter, city 49, and interurban 50 cents an hour. M. O. Theory and Practice Differ.— In granting the Third Avenue Railway, New York, N. Y., permission to aban- don operation of three of its subsidi- aries which were not paying expenses. Public Service Commissioner Lewis Nixon wrote to Mayor Hylan, telling him of the situation of the lines, and informing him that if the city desired to take them over, the necessary hear- ings before the commission would be held. Mayor Hylan is an avowed ad- vocate of municipal ownership, but he replied to the commissioner in nart as follows: "From their statement to'^trti as to their present condition, it would seem more proper that they (the rail- roads) take their wares to people who deal in second-handed railroad scrap, who are commonly called junk dealers." A Railway Offered as a Present. — The United Railways, St. Louis, Mo., is being asked by the Memorial Park Association, which controls Memorial Park Cemetery at Melrose_ and Lucas and Hunt Roads, St. Louis County, to accept a car line as a present. The United Railways now runs its St. Peter's line to vdthin three-quarters ot a mile of the cemetery gate and the association has proposed that Receiver Rolla Wells of the United Railways extend the St. Peter's line to the ceme- tery gate at the association's expense. The extension would cost approximate- ly $10,000. Receiver Wells is also be- ing petitioned by a committee, ap- pointed by the citizens of West Walnut Manor, St. Louis County, to extend the Lee Avenue line through Walnut Park with its western terminus in West Wal- nut Manor. Franchise Renewal Up in Belleville. — Mayor P. K. Johnson of Belleville, 111., called a special meeting of the City Cr.uncil on Aug. 14 to discuss the matter of a new franchise for the East St. Louis & Surburban Railway. The company has as yet made no move for a renewal of its franchise, although its present grant expires on Sept. 1 for the line within the old city limits of Belleville. The franchise for the su- burban line running between East St. Louis and Belleville was granted in 1899 by the St. Clair County Board of Super- visors for a period of fifty years. Al- though various civic bodies in discuss- ing the matter of a renewal of fran- chise, were insistent upon gaining a 5- cent fare to Edgemont, that matter has since been dropped and an extension of service to outlying parts of the city will probably be all the city will ask as a condition for the renewal. Road Ofifered to City.— W. 0. Wood, vice-president and general manager of the Long Island Electric Railway, which operates from Jamaica across the meadows to Far Rockaway, Long Island, has informed Deputy Public Service Commissioner Alfred M. Barrett, of the First District, that he is willing to recommend that the road be turned over to the city of New York to be operated municipally upon the basis of payment by the city of only the appraised value of the road. The line, which operates for a 10-cent far, is nearing bankruptcy, according to Manager Wood. The commission has for some time been investigating the affairs of the road with a view to meeting complaints as to its service. Manager Wood testified before Com- missioner Barrett that the road for a period of some years has not earned its operating expenses and that the deficits from operation have been made up by contributions from the owners, namely, the Interborough Rapid Tran- sit Company, and interests connected with the LonsT Island Railroad. August 23, 1919 Electric Railway Journal 409 Financial and Corporate Interurban in Receivership Aurora, Elgin & Chicago Railroad Placed in Hands of J. K. Choate on Creditor's Petition An involuntary petition in bank- ruptcy was filed on Aug. 9, against the Aurora, Elgin & Chicago Railroad, Wheaton, 111., by attorneys represent- ing the General Electric Company. In the petition, to which brief mention was made in the , Electric Railway Journal for Aug. 16, it is charged the road has an authorized capital stock of $6,200,000 and is indebted to the com- pany for $3,215. The road is alleged to have a total outstanding secured and unsecured indebtedness of about $11,000,000. Receiver in Complete Charge Judge Evan A. Evans of the Federal District Court issued an order appoint- ing Joseph K. Choate, New York, as receiver. Mr. Choate is to have power to take complete charge of the road, operate it, and take whatever steps he deems advisable to produce satisfactory results. Mr. Choate has announced he will retain E. C. Faber, former manager of the company, as his representative and general manager. B. P. Alschuler, Aurora, will act as counsel for Mr. Choate. According to Judge Evans' order the receiver also has power to employ M, B. & H. H. Johnson as at- torneys. The bankruptcy petition, filed by At- torneys George B. McKebbin and Dwight S. Bopp, states the railway was organized on March 20, 1901, in Illi- nois. Its principal office, the petition goes on, is at Aurora, and the lines traverse Cook, Du Page and Kendall Counties. On April 1, 1901, the petition states, the road executed and delivered its so- called first trust deed to the American Trust & Savings Bank, Chicago, secur- ing $3,000,000, par value, first mort- gage bonds, of which there are now outstanding $2,589,000, par value, secured by a lien on part of the road- bed and equipment. The total of first mortgage bonds outstanding, the peti- tion states, amounts to $1,546,000, like- wise secured by a lien. $8,045,000 OF Outstanding Bonds The petition states on July 1, 1910, the road executed and delivered to the Northern Trust Company a so-called trust deed securing an authorized issue of first and refunding mortgage bonds amounting to $15,000,000, par value. The petition names the principal bond and note indebtedness of the road as $8,045,000. The amount said to be due the holders of first and refunding mortgage bonds is set at $76,975, which the road, the petitioners say, has been unable to pay. Furthermore, the petitioners assert, there is no prospect that the road can meat its obligations, its buying capacity has been exhausted, and it now faces financial destruction. Grafton Creditors Meet Committee Appointed to Consider Offer of Purchase from Edison Electric & Gas Company Another meeting of the creditors of the Grafton Light & Power Company and of the Grafton (W. Va.) Traction Company, bankrupt corporations, was held on July 29 at Grafton after two former postponements taken at the in- stance of the creditors for the purpose of considering propositions made by New York capitalists for the purchase of the two plants at private sale, before taking an order for public sale thereof. The meeting was addressed at length by John T. McGraw in person on behalf of the two companies. He recounted a proposition to buy the plants made by a new company already organized and incorporated, which had acquired ex- tensive holdings of gas and electric properties in West Virginia and Mary- land, chief among which was that of the Western Maryland Gas & Electric Company. Briefly stated, the proposition is this: The new company, which is known as the Edison Electric & Gas Company, proposes to pay off the indebtedness ex- isting against the two bankrupt con- cerns, the Grafton Light & Power Com- pany and the Grafton Traction Com- pany, now amounting to about $176,000, exclusive of the Brady claim, by paying therefor $100,000 in cash and $100,000 in second mortgage bonds of the new company. Then the new company further proposes to liquidate the Brady indebtedness by the payment of a like sum of $100,000 in cash and $100,000 in preferred stock of the new company, the Brady debt at present with interest amounting to about $180,000. Mr. Parry, of the law, firm of Larkin & Parry, New York, which represents the Central Trust Company, New York, Barstow & Company and other bankers interested in the Edison Elec- tric Power & Gas Company, was also present and made a brief address in which he fully corroborated the state- ments of both Messrs. Coniff and McGraw as to the responsibility of the new company. The end of the matter was the ap- pointment of a committee from among the creditors present by attorneys for the purpose of seeing the absent cred- itors and sounding them upon the mat- ter of accepting these bonds in part pay- ment of their respective debts, and re- porting the outcome of their action to a future meeting of creditors. Pittsburgh Valuation Presented Some Difference of Opinion Between Railway and City and Com- mission Experts The value for rate-making purposes of the Pittsburgh (Pa.) Railways is $48,000,000, in the opinion of the engi- neers who represented the city of Pittsburgh on the Pennsylvania Public Service Commission's joint valuation board, but a rate base to be just to both parties and unjust to neither should not be less than $65,000,000 and to give weight to the cost of reproduc- tion should range between $65,000,000 and $70,000,000, in the judgment of the men on the board who represent the company. The report was filed before members of the Public Service Commission in Pittsburgh on Aug. 20. It was at- tended with no ceremony and there was almost no attendance at the hearing, although it is conceded in some quarters that this report may be the beginning of the end of the receivership. The valuation proceedings were be- gun eighteen months ago with the in- tention of establishing a definite cal- culable basis for the computation of an equitable rate of fare. The two en- gineers of the company on the board estimated that the traction system will need $18,986,000 for its operation dur- ing 1920, and that, to raise ttiis sum, a fare of 8.45 cents is necessary. The two representatives of the city of Pitts- burgh declare the railways will need only $17,446,000 for its operation in the coming year, but to secure this they must charge a 7-cent fare. The present fare is 7i cents when paid by ticket and 10 cents in case of cash payment. The letter of transmittal to the Pub- lic Service Commission briefly sum- marizes the work of the board, and then goes on to relate the manner in which the valuations were arrived at. The value of the physical property was determined upon by seven different methods. They are as follows: Basis No. 1 — Historical cost as deter- mined upon from the records, with scrutiny of engineers and accountants, representing actual investment in pliysical properly placed in tlie service of the public, $59,- 069,392. Basis No. 2 — Estimated costs of repro- duction new at prices ruling when each part of the existing property was con- structed, and under original conditions of construction, $49,324,791. Basis No. 3A — Estimated cost of repro- duction new at average prices of Ihe period 1906 to 1915 inclusive, and under original conditions of construction, $56 148.398. Basis No. 3B — Estimated cost of repro- duction new at prices indicated for 1918 by the trend of prices for twenty years previous to 1916, and under original condi- tions of construction, $60,832,200. Basis No. 3C — Estimated cost of repro- duction new at average price.«; in the period 1914-1918, inclusive, and under original con- ditions of construction $73,560,300. B.Tsis No. 3D — EstimatPd cost of repro- duction new at the estimated average prices for the period from 1918 to 1922, inclu.sive, and under the original conditions of construction, $84 191,300 Basis No. 4 — Estimated cost of reproduc- tion new at prices and under the condi- tions ruling at the date of valuation, viz., April 1, 1918. $102,842,274. No allowances were made by the board for franchise values in excess of 410 Electric Railway Journal Vol. 54, No. 8 cost, nor for earning capacity, nor for terminal facilities, nor for bridge rights in excess of cost, nor for the special value of the charter, which is one of seven said to be the broadest of the kind known. The company placed a substantial value on this charter, but the board denied it. It was on the question of whether "other elements of value," besides the actual physical valuation of the properties, should go into the total, that the valu- ation board split, the company's en- gineers opposing the stand taken by the city's representatives on "develop- ment values," "going concern values" and similar items. $14,086,000 Required a Year All the engineers agreed that the physical operation of the system re- quired $14,086,000 next year. To the capital invested the city engineers would allow a return of $3,360,000, making the total requisite revenue $17,446,000. To capital the company engineers credited a return of $4,900,- 000 a year, thus making their total $18,986,000. The city's engineers recommended a zoning system of fares, presumably based on that recently projected for trial in Newark, N. J. The board also made a recommendation as follows: No Account Taken of Recent Wages The solution of the railway problem, in our opinion, will not come with the mere setting down of fixed charges that are reasonable under all the circumstances on the amount invested. The real need, in our opinion, is for some contract arrange- ment between the public and the company, which would be based on the reasonable assurance of securing all necessary charges, including a return on the investment. We are absolutely convinced that a contract lelationship should be established at the very earliest moment. The report makes it plain that all its estimates were made without regard to the recent award of the National War Labor Board, which adds, accord- ing to the receiver's figures, $1,050,000 to the company's annual expenses. Abandonment Threatened by Long Island Line Officials of the New York & North Shore Traction Company, operating from Flushing, Long Island, to the New York City line in Little Neck and con- tinuing to Hicksville, Long Island, filed notice on Aug. 19 with the Public Serv- ice Commission for the First District, that it will not be able to continue oper- ation this fall at the present fare of 5 cents. Deputy Public Service Ccm- missioner Alfred M. Barrett agreed to hold a meeting on Aug. 23, at -v^hich time reasons for the proposed abandon- ment of the road will be advanced by the company's representatives. George A. Stanley, president of the company, said on Aug. 19 that it is im- possible to continue to haul passengers under existing financial conditions. He said that some patrons of the road are voluntarily paying 7 cents for a ride, but that this increase in the company's receipts does not go far in solving the problem. The line was started in 1907. The company has 38 miles of track, 17 in the city amd 21 outside the city. The company has never paid a dividend, and has only paid bond interest for four and a half years out of the twelve it has been operating. The road now owes $13,000 in taxes and more than $10,000 in current bills. The efforts of the company to secure an increase in fare through the authori- ties of New York so far have failed. The affairs of the company have been reviewed previously in the Electric Railway Journal. Basis of St. Louis Valuation Announced The Public Service Commission of Missouri has replied recently to the inquiry of the Civic League of St. Louis, Mo., concerning the methods of its valu- ation of the property of the United Railways, on which the commission's engineers have been at work for several months. The answer to the Civic League was as follows: AH property owned by the company will l^e included in the appraisal, being divided into property in use and useful and not in use and not useful. The matter of dis- carded property has not been decided. The factors of wear and tear, inadequacy and obsolescence, will receive due consideration. Unit prices used in the appraisal are based on costs as evidenced by vouchers, con- tracts, and work orders and actual weighted average costs for the thirteen years ending Dec. 31, 1918. The percentage allowance to cover overhead construction costs has not yet been calculated. The commission fixes the fair present value of the property used and useful in the serv- ice after all evidence has been submitted and when finding the fair present value it makes such allowance for intangible value as the evidence warrants. The league will announce later the use to be made of the information. Investment Return Arbitration Soon Hearings in the arbitration of the demand of the Cleveland (Ohio) Rail- way for an increase from 6 per cent to 7 per cent in the guaranteed dividends on its stock will be started during the week ended Aug. 23. The public will be admitted to the hearings, but the conferences of the arbitrators will be private. As is well known the Cleve- land system is operated under the serv- ice-at-cost plan. J. R. Nutt, president of the Citizens' Saving & Trust Company, will rep- resent the company on the board of arbitration; W. E. Davis, city light commissioner, will represent the city, and Attorney A. A Stearns, appointed by United States District Judge West- enhaver, will be the third member. At- torneys Harry J. Cravsrford and Thomas Sidlo will represent the company, while Alfred Clum, of the city law depart- ment, will be the attorney for the city. It is understood that some members of the Council contend that an increase in the dividend cannot be legally made without submission to a vote of the electors, and they threaten to circulate petitions for a referendum vote if the decision is in favor of the company. Financial News Notes Foreclosure Sale on Sept 5. — The sale of the Lewiston, Augusta & Water- ville Street Railway, Lewiston, Me., un- der foreclosure has been set for Sept. 5 by order of Wallace H. White, special master. As noted in the Electric Rail- way Journal for Aug. 9, page 301, the foreclosure proceedings were started by the Old Colony Trust Company, Boston, Mass., trustee under the mortgage se- curing the first and refunding bonds of the company. Abandonment Authorized. — The In- ternational Railway, Buffalo, N. Y., has been authorized by the Public Service Commission for the Second District, to abandon part of its Gooding Street line in the city of Lockport. The company will tear up the rails on this line and reroute cars on its Lockport-Olcott in- terurban division over other tracks through Lockport. The company con- tended before the commission that op- eration of the line resulted in a big annual loss. Foreclosure Sale Set for Sept. 8. — ■ The Pennsylvania & Ohio Railway, which extends from Conneaut to Jef- ferson in Ashtabula County, Ohio, to- gether with all its property of every description, franchises, rights-of-way, real estate and appurtenances, will be sold at receiver's sale, in Jefferson, Ohio, on Sept. 8. Bondholders who have not yet deposited their bonds with the bondholders' protective committee are urged to do so before Sept. 1, 1919, which is the last day bonds may be de- posited. The receiver of the company is Palmer Wardman, Ashtabula, Ohio. Electric Branch Lines Sold to Santa Fe. — Announcement was made at Por- tei-ville, Cal., on Aug. 2, of the com- pletion of the sale by the Visalia Electric Company to the Santa Fe Railroad of certain branch lines ex- tending south and southeast of Porter- ville, built to connect with the Porter- ville Northeastern Railway. In connection with the transfer and the reconstruction of these lines to freight traffic standard, it is announced the Santa Fe will start immediate sur- veys for the extension of their lines south from Porterville through a rich farming and orchard district to Ducor. Sale Under Foreclosure Confirmed. — The recent sale at auction of the Southern Traction Company, to H. M. Mepham, St. Louis, Mo., who originally promoted the road has been approved by Federal Judge George W. English, in chamber at Danville, 111. The sale was held in East St. Louis a few weeks ago by the master in chancery of the Federal Court and the purchase price was $400,000. This ends litigation which began in the Federal Court in Augmt 23, 1919 Electric Railway Journal 411 the year 1914, at which time the road became bankrupt. It was built by the Lorimer-Gallagher Construction Com- pany, Chicago. Back Interest Payment to Be Made. —Holders of the 6 per cent three-year gold notes of the International Traction Company, Buifalo, N. Y., dated Aug. 1, 1917, have been notified that through the efforts of the protective committee appointed under the protective agree- ment dated Jan. 31, 1919, the interest on said notes which became due on Feb. 1, 1919, and Aug. 1, 1919, together with interest at the rate of 6 per cent per annum upon each of said instalments of interest from its respective due date to and including Sept. 2, 1919, will be paid on and after Sept. 2, 1919, at the office of the Bankers' Trust Company, in New York. St. Louis Receivers Reports. — The third monthly report on the operation of the United Railways, St. Louis, Mo., since the concern went into receivership was filed on Aug. 13 in the United States District Court by Receiver Rolla Wells. It shows total receipts of $1,- 892,299 against disbursements amount- ing to $1,629,397. The receipts include $16,850, paid by employees of the com- pany on Liberty Loan subscriptions and $538,000 realized through the sale of certificates of debt. The report covers the period between June 1 and June 30, 1919. Cash on hand on June 1 is given in the report as $149,198 while the cash balance on June 30 aggregated $410,- 100. Plan to Reclaim Road. — The New York & Pennsylvania Traction Com- pany, Hornell, N. Y., which has a line between Canistee, N. Y., and Shingle- house, Pa., will start running cars again between the two points about Nov. 1. The line has been idle since 1917. W. W. Crittenden, Hornell, has been successful in raising $325,000 for the purchase of the property. The line is 54 miles long. Old stockholders of the company have pledged a large part of the money. The roadbed is badly washed out in places and must be re- built. Eight miles of single track near Whitesville, N. Y., has also been dam- aged. The old rolling stock will be used, according to Mr. Crittenden, who has had an option on the properiry for more than a year. Electric Line to Be Sold. — On Aug. 11 Judge R. C. Patterson of the Com- mon Pleas Court at Dayton, Ohio, or- dered the sale of the electric line be- tween Miamisburg and Germantown, controlled by the Ohio Electric Railway. The sale is for the purpose of satisfying mortgage indebtedness, according to an announcement. Judgment for $50,000 and interest was ordered in favor of Phillip C. Swing, Cincinnati, as trustee. He is the plaintiff in the suit. Among the corporations named as defendants are the Miamisburg & Germantown Traction Company, the Cleveland Trust Company, as trustee; the Cincinnati & Dayton Traction Company and the Ohio Electric Railway. Judgment for $2,000 was also ordered in favor of the Cleve- land Trust Company on bonds secured by mortgage. .Exception Taken to Report of Special Master. — Exceptions have been filed in the United States District Court to the report of Special Master Henry Lamm, regarding the issuance and sale of re- ceiver's certificates to take up a debt of $2,300,000 of the United Railways, St. Louis, Mo., which is due. Those who filed were John W. Seaman, who instituted the receivership suit against the company; Elmyr A. and Robert T. Laughlin, intervenors in the suit. They object to language of the report, in so far as it refers to a "default" on the part of the company, in not taking up bonds issued in 1904 by the St. Louis Transit Company which leased the rail- ways in St. Louis from the United Rail- ways. They assert that there was no consideration for the indorsement by the United Railways of the Transit Company bonds and that therefore the indorsement is void. Protective Committee for Eastern Pennsylvania Railways' Bonds. — A protective committee of the mortgage 5 per cent bonds of the Eastern Penn- sylvania Railways, Pottsville, Pa., has been organized. A circular issued by the committee says that the company is faced with the immediate necessity of largely increasing its power gener- ating capacity but is without funds that can be used for this purpose and that it has no way of raising money at a satisfactory rate of interest. For this reason the holders of the first mort- gage bonds are requested to deposit these bonds with the Central Union Trust Company, New York, N. Y., or with the Girard Trust Company, Phila- delphia, Pa. Deposits must be made on or before Sept. 26. The last annual report of the company, dated June 5, showed a balance available for re- newals, depreciation, amortization, etc., for 1918, of only $1,987, against $44,- 754 for 1917. It was stated that for the first four months of 1919 there has been an increase in net profits of $48,- 435 or 100 per cent over the correspond- ing period of last year. The annual report also spoke of the increased de- mand for power. The protective committee consists of Edwin G. Merrill, chairman; Herbert Coppell, A. A. Jack- son, Lewis A. Riley, and Thomas New- hall. Electric Railway Monthly Earnings Period ATLANTIC SHORE RAILWAY, SANFORD, ME . Operating Operating Operating Fixed Revenue Expenses Income Charges Im., June, '19 Im., June, '18 $14,346 14,865 BANGOR RAILWAY & Im., June, '19 $84,769 Im., June, '18 73,723 12m., June, '19 980,653 12m., June, '18 910,855 $16,687 12,151 ELECTRIC *$52,082 *43,850 *635,358 *539,500 $2,341 2,714 COMPANY, $32,687 29,873 345,295 371,355 $523 517 BANGOR, $20,547 19,502 243,822 234,007 Net Income t$2,864 2,197 ME. $12,140 10,371 101,473 137,348 CHATTANOOGA RAILWAY & LIGHT COMPANY, CHATTANOOGA, TENN. Im., June, '19 $156,597 *$1 18,050 $38,547 $20,943 Im., June, '18 149,073 *120,003 29,070 22,396 12m., June, '19 1,869,400 =^1, 456,858 412,542 268,214 I2m., June, '18 1,552,084 *1, 354,217 197,867 349,333 CITIES SERVICE COMPANY, NEW YORK, N. Y. Im., June, Im., June, 12m., June, 12m., June, '19 $1,601,017 1,808,929 21,566,635 20,907,945 $54,140 38,393 668,173 398,630 $1,546,877 1,770,536 20,898,462 20,509,315 $167,373 5,751 1,199,439 13,815 $17,604 6,674 114,328 tl51,466 $1,379,504 1,764,785 19,699,023 20,495,500 COMMONWEALTH POWER, RAILWAY & LIGHT COMPANY, GRAND RAPIDS, MICH. Im., June, '19 $1,992,372 *$I, 314,851 $677,521 $544,198 $133,323 Im., June, '18 1,831,428 *1, 162,616 668,812 505,784 163,028 12m., June, '19 23,904,157 *15,785,580 8,118,577 6,346,150 1,772,427 12m., June, '18 20,789,999 *13,727,411 7,062,588 5,648,168 1,414,420 CUMBERLAND COUNTY POVSrER & LIGHT COMPANY, PORTLAND, ME. Im., June, '19 $221,793 *$156,477 $65,316 $56,030 $9,286 Im., June, '18 278,214 *175,338 102,876 72,311 30,565 12m., June, '19 3,004,447 *2,1 10,904 893,543 767,464 126,079 12m., June, '18 3,141,634 *2,158,755 982,879 847,632 135,247 EAST ST. LOUIS & SUBURBAN COMPANY, EAST ST. LOUIS, ILL. Period Im., June, '19 Im., June, 1 2m., June, 1 2m., June, •18 '19 '18 Operating Revenue $322,638 318,857 4,370,095 3,863,918 Operating Expenses *$263,082 *243,468 *3,499,062 *2,810,900 Operating Income $59,556 75,389 871,033 1,053,018 Fixed Charges $68,844 67,915 827,019 801,618 Net Income t$9,288 7,474 44,014 251,400 THE NORTHERN OHIO TRACTION & LIGHT COMPANY, AKRON, OHIO 12m., June, '19 $8,070,622 $5,421,704 $2,648,918 $1,288,541 $1,360,377 12m., June, '18 6,750,454 4,339,549 2,410,905 1,047,182 1,363,723- PENSACOLA (FLA.) ELECTRIC COMPANY Im., May, '19 $45,155 *$35,483 $9,672 $8,822 Im., May, '18 38,606 * 25,996 $12,610 7,088 12m., May, '19 557,504 *426,882 130,622 91,973 12ni., May, '18 404,933 *249,283 155,650 82,358 PORTLAND RAILWAY, LIGHT & POVPER COMPANY, PORTLAND, ORE. Im., June, '19 $725,633 *§$452,157 $273,476 $191,125 Im., June, '18 632,552 *§391,558 240,994 187,746 12m., June, '19 8,279,444 *§5,554,502 2,724,942 2,262,643 12m., June, '18 6,818,090 *§4,181, 568 2,636,522 2,155,699 $852 5,520 38,642 73,299 Im., Im., 12m., 12m. SAVANNAH (GA.) ELECTRIC COMPANY May, '19 $120,915 *$100,255 $20,660 $24,927 May, '18 93,022 *62,857 30,165 23,439 May, '19 1,278,899 *1, 003,464 275,435 289,846 May, '18 1,053,943 *705,680 348,263 275,166 $82,351 53,248 462,299 480,823 t$4,267 6,726 tl4,411 73,097 TAMPA (FLA.) ELECTRIC COMPANY Im., May, '19 $103,018 Im., May, '18 82,798 12m., May, '19 1,144,288 12m., May, '18 998,742 * Includes taxes, t Deficit. twelve months, 1919, $557,397; depreciation. *$64, 146 $38,872 *51,526 31,272 *677,273 467,015 *578,020 420,722 § In Juno,1919, $21,769; $4,610 4,266 52,883 50,390 June, 1918, $18,977; $34,262 27,006 414,132 370,332 twelve months, 1918, $290,512 included for 412 Electric Railway Journal Vol. 54, No. 8 Traffic and Transportation Rhode Island Plan Presented Three Propositions Filed with Commis- sion— Three Miles for Eight Cents Favored It was announced that the hearings would commence on Aug. 19 on the pe- tition of the Rhode Island Company for increases in fares, to which brief reference was made in the Electric Railway Journal for Aug. 16. The petition of the company for relief pre- sents three plans by which officials be- lieve that the revenue may be increased sufficiently to meet the added operating- expenses incurred by the wages named in the settlement of the recent strike. The plans as suggested by the com- pany follow: 1. By contracting the present central zones to central zones having radii of li miles, in Providence, Pawtuclvet and Woonsocliet, witli all otlier zone points remaining as at pre.sent fixed, and making the fare 6 cents instead of 5 cents for each zone, thereljy securing an estimated increase of $1,021,400 a year, and l)y increasing the cliarge for transfers from 1 cent to 2 cents, with tlie same transfer privileges enjoyed as at Jjresent, thereby securing an estimated in- crease of $12(1,000 a year, or a total in- crease of $1,141,400 a year. In Plan 2 the zone limits remain as they new are. but the fare in each zone is in- creased from 5 cents to 6 cents. Experience seems to warrant the expectation of an increase in revenue of 10 per cent from this 20 per cent increase. It will be noted that operation under this plan results in a deficit of more than $189,000, unless paving charges and franchise taxes are abrogated. In Plan 3 the central zones are con- tracted to diameters of 3 miles as in Plan 1 and the 5-cent fare in each zone is re- tained. Operation under this plan would yield a deficit of more than $488,000 a year, and even witli the remission of paving costs and franchise taxes there would still be a deficit of more than $88,000. With their proposed schedule of fares the receivers also filed a table of the estimated earnings, which is reproduced below. Increased Chicago Fares Cause Little Friction Collection of 7-cent fares on the Chi- cago Surface Lines and 8-cent fares on the Elevated Lines has proceeded without friction since midnight of Aug. 7. The falling off in traffic due to the higher rates was about as expected. No financial reports have been issued as yet by either company, but it is said ESTIMATED EARNINGS AND OPERATING EXPENSES OF RHODE ISLAND COMPANY EstiniateH earnings for year (based on six months to June Plan I Plan 2 Plan 3 30,1919) . $8,000,670 $7,622,269 $7,322,836 Estimated operating expenses for year (based on six monthsto June 30, 1919) $5,495,902 $5,495,902 $5,495,903 Estim.than bookings for 1918, still it must be remembered that bookings for the first quarter were considerably less than for the secona quarter, and consequently that the an- nual rate shown by the first six months of the year may be considerably in- creased before the year is over. It is also understood that billings are run- ning ahead of last year, owing to the large number cf unfilled orders carried over. Hazard Manufacturing Company of Wilkes-Barre, Pa., manufacturer of in- sulated wire and cable, on July 1 opened a new sales office and warehouse at 1415 Wazee Street, Denver, Col., in charge of Ernest P. Kipp, district man- ager. The Denver office will cover the Intermountain district, including in its territory Colorado, Wyoming, Montana, Idaho, Utah,- New Mexico and the west- ern portions of Nebraska and South Dakota. Mr. Kipp, who has had six- teen years experience in the wire in- dustry, was captain in the United States Engineers and has raceived his honorable discharge. A full stock of wire rope and rubber-insulated wire is carried at Denver. American Steam Conveyor Corpora- tion, Chicago, announces the appoint- ment of Thomas 0. Morgan, until re- cently head of the service department of the New York office, to the position of sales engineer. He will handle Long Island and Connecticut territory. H. S. Valentine has been appointed sales en- gineer in charge of Philadelphia terri- itory. An office has been established in the North American Building, Phila- delphia. Mr. Valentine was connected with the Link-Belt Company of Phila- delphia for five and one-half years, with the Brown Hoisting Machine Com- pany and Yale & Towne Manufacturing Company for six years and with the Badenhausen Company for one year. Norton Company Reorganizat'on — From July 1, 1919, the business of the Norton Company and Norton Grinding Company, Worcester, Mass., will be conducted by the Norton Company with the following board of directors: George I. Alden, chairman; Aldus C. Higgins, treasurer and general counsel; Charles L. Allen, president and general manager; George N. Jeppson, secretary and works manager; R. Sanford Riley, John Jeppson. Announcement is also made of the following appointments: Carl F. Dietz, vice-president and gen- eral sales manager; W. LaCoste Neil- son, vice-president and foreign man- ager; Herbert Duckworth, sales manager grinding wheel division; How- ard W. Dunbar, sales manager, grind- ing machine division. Export Association Plans to Assist Foreign Buyers. — Arrangements have been made by the American Manufac- turers' Export Association whereby in- troduction cards will be placed in the hands of foreign buyers about to visit this country. These cards, properly signed by representatives of the United States government abroad, banks, cham- bers of commerce and the representa- tives of the Export Association in for- eign lands, will serve to accredit visit- ing buyers to the New York office of the Export Association. Buyers seeking particular kinds of merchandise will thus be aided by the association in getting in touch with American manu- facturers producing the kind of goods desired. This will result in putting foreign purchasers in direct touch with American exporters. Chicago Pneumatic Tool Company plans moving its general offices from Chicago to New York, and toward this end is erecting an office building at 6-8 East Forty-fourth Street, New York City. The operation of the company's six American plants and twenty-six sales and service branches will be di- rected from this plant. There will be continued in Chicago a sales and service organization more extensive than for- merly. The new building is to be ready for occupancy early in 1920, at which time the transfer will be effected. The company announces the appoint- ment of L. C. Sprague, formerly dis- trict manager of sales at New York, as manager of Western railroad sales with headquarters at Tisher Building, Chicago, and H. G. Barbee as manager of Eastern railroad sales with Head- quarters at 52 Vanderbilt Avenue, New York City. Nelson B. Gatch, formerly district manager of sales at Chicago, has been appointed district manager of sales at New York, succeeding Mr. Sprague. Announcement of Mr. Gatch's successor at Chicago will be made later. New Advertising Literature Laclede - Christy, St. Louis, Mo.: "Mixes Brains into Fire Brick" in its August bulletin. Breeze Manufacturing Company, Inc., Newark, N. J.: Thirty-six page book on "Flexible Metal Hose, Tubing and Accessories." Allis-Chalmers Manufacturing Com- pany, Milwaukee, Wis.: Booklet, "Pros- pectus of Apprenticeship System." Also Bulletin No. 4014 on "Perforated Metal." General Electric Company, Schenec- tady, N. Y.: Index to its descriptive bulletins and sheets, and also an index to its supply parts bulletin. Both these indexes are dated July, 1919. Wheeler Condenser & Engineering Company, Carteret, N. J.: A pamphlet entitled "What Worried Admiral Jelli- coe Most." A postcard is inclosed for those who request a Tube Handbook. Whiting Foundry Equipment Com- pany, Harvey, 111.: Catalog No. 145, which has for its subject railroad equip- ment, and covers locomotive hoists, coach hoists, frames, transfer tables and turntable tractors, as well as car- v/heel foundries. Holden & White, Inc., Chicago, 111.: Illustrated catalog No. 20 descriptive of the new Jewel hot blast car heaters recently placed on the market by this company and described in the Aug. 9 issue of the Electric Railway Jour- nal, page 290. SEP 2- ,919 V ^' PATENT 0^^^!^ Journa! Consolidation of Street Railway Journal and Electric Railway Review Volume 54: Ncw York, Saturday, August 30, 1919 Number 9 One Reason Why Transportation Work Fascinates AN EX-LAWYER, then prominent in the electric railway field, said a few years ago that he left the law for transportation work because people spend so much more money on the latter. His idea was that where the most money is spent in paying for needed service there the opportunity is greatest. Even now, when the whole transportation industry is in dire straits, the business continues to hold large num- bers of able men, who could make a living in other fields with less expenditure of nervous energy, but they re- main in the business because they feel that transporta- tion is an essential industry and must continue in one foi'm or another permanently to supply a vital public service. As good service is one of the most saleable of commodities, its merchandizing will always attract the men who can produce, deliver and advertise it well. The very difficulty of producing good transportation under the present transient conditions furnishes an appeal to real transportation men. With reasonable encouragement in the way of compensation they can be held indefinitely. Declining Usefulness or Greater? THE harassed electric railway manager who has to find ways and means of securing more revenue can hardly be blamed for seeking the immediate path of- fered by the higher unit rate of fare. He gets a cer- tain increase in revenue at a sacrifice in number of passengers. Costs go up again and there is another increase in fare, some increase in revenue and a further decline in the number of customers. How long is this process going to continue before the usefulness of the electric railway has shrunk to such a point that it will be patronized only by those too poor to own an auto- mobile or bicycle or so situated that they cannot use a jitney? If an electric railway was carrying well-loaded cars throughout its working day of eighteen to twenty hours, then it would be obvious that an increase in fares was the only resource. Fortunately, if we may use the word for such a situation, almost every electric railway is badly underloaded most of the day. If. then, there are ways of getting more riders during the cff-peak hours that have not been tried, those ways ought to be tried before we reconcile ourselves to mak- ing the e'ectric railway less useful instead of more use- ful. Have we not been treading a dangerous road in as- suming that the riding characteristics of the commu- nity, hour by hour, could not be affected favorably by different standards of service and rates? Are we not unduly timid alr^o in assuming that the public cannot be convinced that one-man cars, graduated fares, whole- sale-ride tickets, etc., are worth trying to stave off higher fares and poorer service? Have we ever rea- lized how the coming of other means of transportation can be turned to the benefit of the street railway if we modernize the street railway, because the man who is used to an automobile is becoming disused to walking? Have we forgotten that the more customers we have, the more likelihood there will be of our getting a square deal? Therefore, in trying to meet the need for more rev- enue let us exhaust every possibility of securing riders, more riders and still more riders during those hours of the day that we have seats and service to spare. The sensible investor will always take more interest in a concern whose customers are increasing year after year than in one whose customers are showing a steady de- cline while the competitors are flourishing. There is al- ways hope for the concern which is growing even though it pays only a small return; but there is no hope for the concern which is deliberately getting all it can to-day with no thought for the morrow. We must never forget that before anything else, an electric railway must make itself useful to the greatest num- ber of people who could possibly benefit from its service. As one of the greatest electric railway oper- ators in the world said recently: "Don't begin to in- crease fares until you are sure that you have attracted all the people who not only need but who also like your service." Modern Cars Are a Necessity for Holding Traffic IN ANALYZING the rolling stock of a small-town electric railway recently we were struck by the fact that one-half of the rolling stock was almost thirty years old. And when we went a step further into the analysis, we learned that two of these cars were re- quired to give the same annual mileage that could reasonably be expected from one up-to-date car which would be able to do the trick partly through faster schedules but more largely through staying on the line instead of in the shop. While wondering whether these prehistoric relics could have any connection with the red-ink statem.ents of the operating company we passed a 20-cent movie. Lined up in front of this theater and for several feet more in each direction was a choice collection of auto- mobiles from "Henries" to the ultra-luxurious sort in which only Success is said to ride. Now, what could have induced the several hundred automobile owners to have come down to a 20-cent show from a radius of 2 to 3 miles on their machines instead of in the street cars? Simply because of the taste which they had acquired for a faster and more quickly available form of transportation than was being offered by the local street railway. There had been a time when to wait. 422 Electric Railway Journal Vol. 54, No. 9 ]0 minutes for^ an electric car was not considered a hardship and when 8 miles an hour was considered pretty lively going. But the years had come and the years had gone with the street cars growing dingier and slower, while the electric car's rival, the automobile, was becoming cheaper and more plentiful. On the day that the balance figures changed from black to red, the street railway began to realize that it had failed to satisfy the appetite thus acquired by the public for more and better transportation. It has been remarked that no merchant would think of foisting a 1900 hat upon a 1919 customer. Why then should a street railway expect to get along with the car of 1890, which certainly has not improved with age, when the car of 1919 is needed to meet new con- ditions? It is all very well to point to the difficulty of getting new money. The fact remains that bond- holders and stockholders eventually will lose a lot more money if they will not back up the efforts of the manage- ment to modernize the property. How Deep Is Public Prejudice? IF WE ARE to believe the pessimists of the electric railway industry, the public has decided that "the sins of the fathers shall be visited upon the children even unto the third and fourth generation." Firm in this belief, the "What's the Use" clan turn deaf ears and dull eyes to anyone who holds a contrary opinion. Those who are in and of the electric railway field are prone to assume rather too readily that the minds of the people are poisoned against them by the sensa- tionalism of newspapers, the currying for favor by peanut politicians and the tales of high financing com- mitted by their forebears in the job. Of course, there is some truth in this assumption, but it is very far from being the whole truth. The man in the street (who ought to be "the man on the car"!) may have some con- fused notion about interlocking directorships, overlying and underlying securities, excessively liquid stock, etc., but it is a confused idea at best and one that becomes tangible only when he has to wait an unconscionably long time for a car and then find it too crowded to be worth the fare. In short, public prejudice is about 10 per cent due to dislike in the abstract and about 90 per cent due to dislike in the concrete. What proofs can be brought forward for this statement? Here's one of many. On a large Eastern system with a past that the pres- ent management is doing its best to live down, it was necessary to go to a 6-cent fare. The change did not meet with unanimous approval— far from it. About the same time, however, the company equipped one of its lines with light-weight cars and added 50 per cent more service. What followed? An increase in traffic, despite the 6-cent fare, practically proportional to the increase in service! Not the least pleasing feature of the operation on this line is the obvious desire of the passengers to help the car operator through having exact change ready. But the great, big, outstanding fact is that despite the bitter opposition which this commu- nity put up against an increase in fare and despite the prejudices of a generation, traffic has increased as it never did increase in the palmiest days of this electric railway company. If there is a better index to the decrease of prejudice than the increase of riding, we would like to hear of it. And it was all done within three or four months with no other means than the honest-to-goodness service that the elimination of hard feeling and the extirpation of jitneys demanded! Prej- udice is only service deep after all. Is the Proposed Change in Method of Testing Girder Rails a Good One? THE news columns of this paper on July 5 carried a rather extended notice of the proposed change in the American Electric Railway Engineering Association's standard specifications for girder and high T-rails. This is proposed by the American Society for Testing Materials acting jointly with the way committee of the Engineering Association. The change has to do with the method of testing, a proposition to substitute a modified form of Brinell hardness test for the present drop-test requirement. The drop test as now specified differs slightly from the same sort of test required by standard specifica- tions for standard (low T) section rails, the height of the drop being regulated by the depth of the rail as well as by certain limits of rail weight. Thus it was recognized that the testing of girder rails presented some different problems from those present in the standard-section rails. Another factor regulating the girder rail tests is the higher limit of the carbon content in the standard girder rails. The greater tendency to- ward brittleness had to be provided for in the drop test.. Girder rail breakage in service is comparatively rare and, in paved streets at least, the element of danger from this source is much less. Consequently there were ample reasons for using drop tests of somewhat less severity. Nevertheless, we call attention to the desir- ability of some form of test which will cover the girder strength of the rails. There are also such defects as piping, segregation, seams and other detrimental fac- tors which may come from unsound ingots and these must be guarded against. These forms of unsoundness contribute largely to the breakage of rails in connection with electric welding of joints. To eliminate drop tests without providing some other agency for the discovery of unsound metal would be a step backward. If the drop test is to be abandoned, we suggest the possible substitution of the "quick-bend" or hydraulic-bend test for this purpose. Its very name implies that it is quite rapid, and it is now thought that it will produce results equal to, or even better than, the drop test. The American Railway Engineering Association is con- sidering its adoption in place of the drop test, and we do not think our association can afford to discard the sort of test which is thus obtained without very serious con- sideration of the A. R. E. A. action in the same matter. In electric railway work these tests need not be so fre- quent as to be burdensome, but they should be made. There can be no harm in sticking to the drop test for another season — that is, until the Pennsylvania Rail- road and A. R. E. A. reports on comparison of the "quick- bend" and drop tests come to hand. The proposed new test is one which may better be added to the specification rather than used as a sub- stitute, and a hardness test of the sort proposed will be well worth while as it doubtless can be made at little, if any, extra expense. We favor its adoption, but as an addition and not as a substitute. In conclusion, attention is called to the present title of the specifications referred to. The use of the words August 30, 1919 Electric Railway Journal 423 "high T" is out of date, and the association has long been trying to get rid of the word "tee" because of its red flag effect in the minds of municipal engineers. Several of the association specifications and recom- mendations have already been edited in this regard, and the rails referred to are nov^^ called "plain girder rails," which indicates their similarity in form to I-beams. We suggest that the way committee take this point up and ask the A. S. T. M. to join in the standardization of the use of better terminology. The title of the speci- fications should be "Standard Specifications for Girder Rails." Seeing Things from the Customer's Viewpoint EVERY department-store merchant knows that if he had no stools at the counters there would be more room in the aisles; also that he could carry more stock if he could dispense with writing rooms, nurseries and other accessories that have no direct relation to the selling of his wares. Yet he seems glad to install these conveniences because he does believe that they have a beneficial, even though indirect, effect upon sales. If we were to apply this policy to the merchandising of transportation, v/e should doubtless have to give up certain things which make for efficiency but not necessarily for ultimate maximum net. In the matter of aisles, we would surely use cross-seats in preference to longitudinal seats, at least to the extent of two- thirds of the entire seating capacity. It is true that a car with longitudinal seats is the easier to load, but it is not the kind of seat that the customer prefers. It may even please the customer himself during the rush hours, but why not have a car that will attract pas- sengers during the other fourteen operating hours of the day? We recall distinctly an instance where the change from longitudinal to crossseats increased the earnings by 3 cents a car-mile. That there was noth- ing "fluky" about this was proved upon investigation, as it was found that many people would walk over about one-eighth mile for the sake of riding in these cars instead of using the longitudinal seat cars upon the nearer line. As for summer riding, the cross-seat con- vertible car can be made as attractive as an open- bench car, and safer, whereas the longitudinal seat car will get compulsory riders only. The provision of shelters at important transfer points is another example of seeing things from the customer's viewpoint. The weather may be bad and the wait may be long only once in a month, but that is the occa- sion he recalls to the disadvantage of the railway. It cannot be claimed, of course, that shelters directly in- crease riding, but if they please the customers they will prove a good investment for many a day. For an industry that never had the inspiration that comes from competition and that was further handi- capped by the absurdity of charging a price that had no relation to quantity or quality or cost, the road to the merch.andising sense is going to be a hard one; but there are already encouraging signs that the electric railway in future will win out on merit and service, quite regardless of price, just as progressive merchants win out on the simple basis of proving to the customer that they are always trying to see things from his point of view. As Marshall Field is reported to have said: "The customer is always right." The Tragedy of Precedent WHETHER we acknowledge it or not precedent has much to do with the course of human life and human activities and incidentally has had a very considerable influence on the development of the elec- tric railway industry. If we do a certain thing in a certain way a few times the action becomes reflex or automatic, conscious thought about details no longer being necessary. If a man travels from his residence to his place of business over a certain route for a few days he will tend to continue following that route, although other routes just as short and as satisfactorj' in other ways may be available. If we see some one perform an operation new to us, when cur turn comes we tend to try to imitate the per- formance. The "homing" instinct, the tendency to run in the same groove, the blind following of precedent, seem to be an inherent quality of the human mind. To illustrate, years ago some bell wether in the industry enunciated that most fallacious of ideas, that a 5-cent fare would always be adequate for a passenger fare within city limits and often beyond. Of course, the theory upon which this W3,S Dei sed was that im- provements in the art would counterbalance the greater expense of increasing lengths of haul, but besides in- cluding a very loose assumption upon a very important matter this theory was faulty because it did not take into consideration the varying purchase power of the nickel. Again, somebody in the years gone by decided that cars should be big and heavy. The idea appealed to everybody. The public liked to see battleships passing up and down the street. The idea has been developed until now it is not uncommon for us. to be hauling, on the average 1000 lb. of passengers on a riO,000-lb. car. An awful waste of effort ! And so we might go on reciting bad precedents. Of course, there have been many good precedents that have resulted in great benefit to the industry, but good precedents like good men do not need watch dogs 1o keep them from doing damage. It is said that you cannot teach an old dog new tricks, and the transportation industry is an old one. Ever since some cave man ancestor of ours invented a vehicle by rigging a forked sapling into a sledge, men have been selling transportation. History is a young thing and leaves no record of this cave man benefactor of mankind, but we do know that the 'vay- bills of Nebuchadnezzar's day are not a very far cry from those in use to-day. Possibly the developm.ent of sales methods for selling the transportation of men and m.aterials has been hampered to no little extent by the efforts of our illustrious ancestors. Certain it is that the methods of selling transportation of com- munication and electric energy have been placed on far more scientific basis. And these methods have been developed within the memory of men now living. The moral of the whole story is that it is worth while to stop short occasionally, look around a bit, do a bit of thinking, and get a perspective of our job and our industry. The cry of the teamster to the hurrying throng "Heads up" is a warning worthy of attention. Railway operating men are busy men, in these days they are harassed men, but in many instances a little miore time spent in getting a broad outlook on the in- dustry and its development would pay big dividends in the way of increased progress. 424 Electric Railway Journal Vol. 54, No. 9 Maintenance of Air-Blast Transformers United Railways of St. Louis Has Sixty-three Air-Blast Transformers in Continuous Service, Forty- four of Which Were Rebuilt in 1913 for 13,200 Volts— Maintenance Confined to Rebuilding from Burnouts and to Bi- Weekly Cleaning — New Cover Designed to Prevent Fires THE United Railways of St. Louis has in contin- uous service thirteen substations, three portable substations and two power plants, each of the latter having two rotaries in addition to their genera- tors. The largest substation has a capacity of 12,000 kw., and the smallest a capacity of 500 kw. The total capacity of rotary converters is 47,5C0 kw. ; of alter- nating-current generators, 3600 kw. ; of direct-current generators, 18,100 kw. ; of steam boosters, 600 kw. ; and of motor boosters, 200 kw., giving a total kilowatt ca- pacity of 70,000. The company has a total of sixty-six transformers in continuous service, sixty-three of which are of the air- blast type. These range in capacity from 2200 kva. to 110 kva. and only seven are of a 6600-volt primary type, all of the rest being wound for 13,200 volts pri- mary. The secondary voltage on all of these ranges from S'O to 430. Practically all of the air-blast trans- formers are General Electric. Forty-four Transformers Rebuilt in 1913 During the first half of 1913 it became necessary to change part of the high-tension system at St. Louis from 6600 volts to 13,200 volts. This necessitated the taking apart of forty-four transformers to install new primary coils and rebuild. This work was done by four men in the maintenance gang and four men in the arma- ture room. The armature winders assembled the pri- mary and secondary coils in their insulation casings, while the maintenance men did all of the lining up of coils in the transformer casings and the laying of the laminated irons and connecting of transformers to the lines and rotaries. It might be stated that a wrong con- nection was not made during the rebuilding of the entire forty-four transformers. At present the company has plenty of spare trans- former equipment. There have been times, however, when not a single spare part was available and it was necessary to have a machine down until it could be re- paired and rebuilt before it could be placed back on the line. On one occasion a coil in one phase of a three-phase 1100-kva. transformer burned open in the Quincy Street substation on April 5, 1918, and the equipment was back on the line five days later. This would not appear to be much of a record, but the va- rious steps necessary to accomplish the work should receive careful consideration and will furnish an ex- ample of the work which is necessary to rebuild a trans- former after a burnout. The transformer, which weighs lOi tons, was back in a corner on a raised concrete air chamber and would not pass the other equipment in the station. There was no crane, and there was not room enough around the transformer either to take it apart or build it up. It was impossible to get at the unit with jacks except below in the air chamber, so screw jacks were used to raise it high enough to get som.e iron slides underneath it. It was then forced away from the wall, and in this position was jacked up high enough to get 8-in. rollers under it. The fan had to be moved entirely out of the station to make room for the transformers to be loaded onto a flat car, by means of which it was hauled to the central power station. Here it was taken apart, one phase was hauled to the armature room, repaired and hauled back, the transformer was rebuilt and the for- mer operations repeated to get it back in the station and running again. The above transformer consists of three phases and about 20,000 pieces of laminated iron placed in layers, no two of which must lap anywhere. Each alternate layer is painted, thus insulating all layers fron; eaci' other to reduce iron losses due to heating caused by e id: currents. Another feature worth noting is the fact that only four men can lay irons at one time, one on each side and one at each end. The accompanying diagram shows the position of the laminations during the process of rebuilding a trans- former. There are fourteen pieces in each layer, everj' other layer being laid opposite the previous layer — that is, piece No. 2 will be where piece No. 1 is and so on, There are about 150 layers to a section and fifteen sec- tions to a transformer, and, as mentioned before, only four men can build at a time, their position being one on each of the four sides. After laying about twelve sections without pressing the irons down, there is very little space left between the coils at the top and the iron where the key is driven in. The loose irons are pressed down by means of two heavy plates of iron with the screws in one pushing against the other, these are placed in the same position as the timber shown in one of the accompany- ing photographs. This press is generally left on over night in order to compress the irons and force them to remain in position. After all of the irons are in place, a hard maple key is driven in where the timber shows in the photograph. It is then an easy matter to put the top and side casings in position and connect the transformer to the line. Considering a 1100-kva., three-phase transformer, it will under ordinary conditions take four men one day to take the irons out of the transformer and get the three phases into the armature room from any location on the system where there is a crane for loading onto a car. It will require four men in the armature room six. days to take the three phases apart and reassemble and put the casing around them again. It requires four men one-half day to get the coils back to the station and lined up ready for laying irons. It requires four men two days to lay the irons and put the transformers in shape for connecting. Thus it normally requires four men working steadily eight hours a day, nine and one- half days to complete the repair and rebuilding of an 1100-kva., three-phase transformer. The original policy of the company was to install air- blast transformers for the reasons that they were cheaper in first cost and required less floor space and considerably less head room than self-cooled transform- ers. These air-blast transformers operated satisfac- August 30, 1919 Electric Railway Journal 425 torily until the inter-connection of the Union Company's power system and water system greatly increased the generating capacity available and caused damage in case of short-circuits. It was found that even the transformers which had been rebuilt in 1913 were se- riously damaged due to the disruptive force of heavy currents on the coils of the transformer. The construc- tion of an air-blast transformer is inherently poor to withstand heavy mechanical jars because the coils have to be separated to allow the passage of air, and these separators become loosened and disarranged. The oil-insulated transformer, either self-cooled or water cooled, is particularly advantageous where large amounts of power are involved because the coils can be compactly constructed and braced mechanically against strains. No trouble of any kind has been ex- perienced with the three oil-insulated transformers in service in St. Louis. This type of transformer has the disadvantage of higher first cost and more floor space required, and some insurance companies object to the fire risk on account of the oil. The oil used, however, has a high flash point and the fire menace is not of much importance. The question which arises concerns the best method of preventing damage and limiting fires in air-blast transformers follov/ing short-circuits. These might be briefly stated as follows: 1. Install some protective devices, say, an aluminum cell lightning arrester, perhaps two, on the busbar sup- plying the transformers, which acts as a safety valve to relieve the surges, and hence protects the transform- ers. This has been done at two stations in St. Louis and the results have been very beneficial. 2. If a fire does start in the transformer, means should be provided so that it can be quickly smothered out. This has been accomplished by means of airtight lids a description of which appears in the following POSITION OF LAMINATIONS DURING PROCESS OF RE- BUILDING AN AIR-BLAST TRANSFORMER paragraphs. In addition, transformers should, if pos- sible, be run either with individual fans or arranged so that they can be separated into compartments so that in case of fire in one transformer it can be isolated and the rest of the station continued in operation. 3. Remove causes for fires as much as possible by keeping the transformers blown out with air and by removing from the air chamber any apparatus which might cause a fire. At one station the United Railways suftered a $3,000 loss because a spark from a small piece of apparatus, which had been damaged, flew into a transformer which was not in service and caused a 10 10 4 4o 4 o 13 6 6 Coils 11 Coils . 13 Coils -J f 7 o 0 1 o II o d 2 o -2 o 12 2~ o 6 8 9 9 12 14 3 o 3 3 14 o 5 5 DIAGRAMMATIC LAYOUT OF AIR-BLAST TRANSFORMER LAMINATIONS fire which ruined the big transformer. At this station all apparatus which can cause sparks from the air chamber has been removed. New Cover Designed to Smother Out Fires As mentioned above there is always danger of bad fires in an air-blast transformer. A very slight spark will cause a fire in the insulation and the constant pres- sure of air will soon fan this into a roaring flame. Thus it is necessary that the operator be w.-ttchful at all times and if he smells smoke he must find Ihe source immediately and try to smother it out. It has some- times been necessary to shut down a whole station in order to shut off the air from a transformer to stop a fire. This is due to the fact that the lid cannot be made airtight. With this in mind the United Railv/ays has rebuilt REBUILDING AN AIR-BLAST TRANSFORMER, SHOWING METHOD OF LAYING IRON LAMINATIONS its transformers as shown in an accompanying illus- tration. First a series of i-in. holes is drilled all thpt way around the top as shown, giving, when the piece is taken out, an opening 20 in. x 34 in. A tool is then run over this, giving a flat, smooth surface about 1 in. wide. A new cover is then made from No. 16 gage iron reinforced around the top edge by ^-in. x 1-in. angles and fitted with felt around the lower bearing sur- 426 Electric Railway Journal Vol. 54, No. 9 face. This cover is hinged and equipped with a special lock device. During operation this device props the lid up on one side about 4 in. as the transformers can- not operate at all v^'ithout the air passing through the coils. In case of fire, however, the device is used to clamp the lid securely shut. With this new lid which has been put on, it is believed that an ordinary fire can be smothered out without shutting down the fans. Another advantage of the hinged top is that during cleaning it can be opened back while the old top had to be lifted off and put on the floor. As this weighed about 50 lb., it was hard for one man to perform the operation where he had as many as eight transformers to clean. The new top also affords ample room for changing transformer taps during construction work. All of the 1.3,200-volt transformers can be connected for 6600 volts, and it is sometimes necessary to make this change. The care of air-blast transformers is practically lim- ited to the matter of cleaning the dust from between the ceils and from the iron lam- inations. This is mostly carbon dust from the rotary brushes sucked into the air chamber by the fans. The cleaning is done once every two weeks by means of compressed air and is accom- plished after midnight when the station is shut down. The air pressure must not be too high as the cleaning of the coils would tend to loosen the insulation. Each station is equipped with an air compressor and enough air hose to reach any desired point. After the station is shut down the operator on the watch, wearing a wet sponge over his nose and mouth and with the air pumped up to about 60 lb., starts at the end transformer and blows down through the coils in a direction opposite to that in which the air ordinarily passes. This dislodges any dirt or dust which has col- lected during the operation of the transformers. After the transformer is blown free of all dirt, the top is closed tight and after all transformers have been cleaned, all dirt is cleaned from the air chamber so that when the station is again started up the same dirt will not be carried back into the coils. The tops on all the transformers are then raised and the transform.- ers are ready to cut back into service. In the new Midland station, there is a separate com- partment air chamber and separate fans, so that in case of fire in a transformer this can be smothered out without taking the air away from the other transform- ers. These fans take fresh air from outside of the station, and it is noticeable that there is not as much dirt and dust as in other stations where the air is taken from inside the building. It may be of interest to note that the company has had in continuous service since 1906, three 1100-kw. air-blast, 6600-volt transformers which have never been AT LEFT. NEW COVER DESICNEH Ti i SlMOTHER OUT FIRE.S : AT RRiHT, OEL) COVER IJRIELED TO EX- LARGE COVERLVG opened up or taken apart for repairs. These have been subjected to 50 per cent overload for a half hour to an hour per day for a number of years. The principal trouble has been experienced at the Spring Avenue Sta- tion which is connected to the water power source by three heavy tie lines and is therefore in a particularly exposed position. The foi'egoing information was secured through the courtesy of W. E. Bryan, superintendent of power sta- tions and P. C. Varble, power department United Rail- ways of St. Louis. Pay Subsidies, if Necessary Rhode Island Receiver Advocates Guarantee by State of Cost of Service to Provide Reasonable Fare THEODORE FRANCIS GREEN, for the last five years connected with the Rhode Island Company, of Providence, R. I., first as trustee and then as receiver, has given his views to one of the Providence daily papers on the future of the electric railway. After referring to the needs of the community for good transportation service which only an electric railway can supply, Mr. Green pointed out that the great increase in wages and cost of materials has made it impossible for the Rhode Island Company and most other electric railways to con- tinue to pay a fair return to the owners of the property; in fact, he says that at present the Rhode Island Com- pany's receipts are less than its expenses and fixed charges, and it may be that no reasonable system of fare can be devised that will provide for proper oper- ation. His remedy is that "the whole community, that is, the State, or cities and towns affected, should in some way make up any difference between the receipts from a reasonable system of fares and the amounts necessary to provide for the proper operation of the road. This may be by remission of general or special taxes, or by guaranty, or even, if necessary, by direct subsidy." Mr. Green believes that a fair return on the invest- ment should be guaranteed to the investors and that any surplus of receipts over expenditures, including such re- turn, should go to the whole community, either directly by payments to the State, cities and towns, or by pro- viding a lower system of fares for better service. He also recommended profit-sharing with the employees, and that they should have some voice in the management of the company. He maintains that the questions of the past history of the Rhode Island Company, and the ex- tent of "water" in its stock have nothing to do with the case because "all that is now asked and all that for several years has been asked by the investors in several companies constituting the system is that a reasonable return shall be paid to them on the actual value of the property which they own and for which their money was spent." According to Mr. Green, the receipts of the Rhode Island Company during the first six months of 1919 amounted to $3,429,418.12, while the operating expenses and fixed charges for the same period amounted to $3,769,854.97, a deficiency of more than a third of a mil- lion dollars. Some prepayment cars with door and step control have been put in service on the Rome Municipal Rail- way system. They are the first of this kind to be tried in Italy. August so, 1919 Electric Railway Journal 427 Public Ownership May Be Only Means of Restoring Credit' Massachusetts' Problem Particularly Acute — Higher Fares Have Been Unsatisfactory — Subsidy Plan or Public Ownership Seems Necessary — Further Legislative Aid Anticipated By FREDERICK J. MACLEOD THE crisis in the street railway situation in Mas- sachusetts is due in the main to the same general causes and conditions which have been described in the testimony already given before your commis- sion. The problem with which we have been confronted in Massachusetts has been, however, in certain respects more than ordinarily difficult and complex owing- to cer- tain special conditions resulting from the history of street railway development in our State. 1. The losses due to experimentation in successive stages of street railway development and to replace- ments and renewals made necessary at frequent inter- vals by successive advances in the art, have been heavier in Massachusetts than in most of the other states. 2. In Massachusetts the financial stability of the street railway industry has been impaired by over-pro- duction. Massachusetts has more street railway mile- age in proportion to its population and area than any other state in the Union, and this mileage is not only large in amount, but in many cases badly located. This condition is the result of the era of speculation in street railway building which set in with the advent of elec- trification. It might have been better in the long run if this boom period had been allowed to run its natural course, if unnecessary lines had been abandoned and if a number of small companies which had sprung up during this period of mushroom growth had reor- ganized by scaling down their securities to correspond with the traffic possibilities of the territories they served. Instead, these speculative companies were saved from prospective bankruptcy or the scrap heap by the policy of consolidation, under which they were taken over, with all their questionable debts and obligations, on a share-for-share basis by the more prosperous urban companies. From this union of prosperous and poten- tially bankrupt companies there emerged a number of street railway systems with just sufficient vitality to keep their heads above water during fair weather, but incapable of meeting the stress of hard times and war conditions. 3. Our Massachusetts companies undertook the dis- astrous experiment of trying to extend to the country districts the ordinary type of street railway service which had been developed to meet city conditio'.^s. The interurban lines have been merely appendages to the city systems, with similar fares and methods of opera- tion. Our present hybrid and diversified street rail- way systems were built up on the theory that the city lines would prove sufficiently profitable with a 5-cent unit of fare to absorb the losses on the suburban and interurban lines. For a time a downward trend of *Absti'act of statement made before the Federal Klcctiic liMil- ways Commis.sion, Wa.shington, D. C, Aug. l.'), 191!l. prices as the result of improved tnethods and the com- paratively low cost of upkeep while the properties were new, offered some encouragement that the experiment might prove successful. As soon, however, as prices began to rise and the need of extensive renewals arose, it was found that the money which was needed for the proper upkeep of the more prosperous city lines had to be expended in the reconstruction of the cheaply built promoters' lines which were taken over, and in meeting the deficits from their operation. Companies originally prosperous then found themselves unable to support the burdens imposed by the consolidation of unprofitable lines. 4. While in the early days a substantial amount of water was injected into street railway securities, most of the electric railway lines in Massachusetts have been built under rigid State supervision of security issues. Generally speaking, the stocks and bonds of Massachu- setts street railway companies represent an equivalent amount of money paid in in cash and expended for legit- imate corporate purposes. In all cases, moreover, the bonded indebtedness had been protected by the issue of an equivalent amount of stock paid fo^ in cash at par or better. This policy, in conjunction with the policy of con- solidation already referred to, has resulted in giving an extended lease of life to properties which would ctherv/ise long ago have been faced with bankruptcy and forced to abandon operation, and in saving Massa- chusetts until recently from the frequent failures of street railway companies which have marked the finan- cial history of other states. This policy, moreover, in its immediate effect has been in many ways bene- ficial from the public standpoint, as it has made pos- sible longer rides and additional transfer privileges for former units of fare, has prevented unwholesome con- gestion in the cities, has made possible more healthful living conditions for a large part of our population, and has largely increased property values and otherwise contributed to the prosperity of our suburban commu- nities. Fares Inadequate for Many Years The prevailing fares, however, were insufficient for many years prior to the war to enable the companies to maintain themselves in sound financial condition. Depreciation requirements were almost wholly ne- glected and many companies were not even making ade- quate provision for current repairs and maintenance. The companies, in other words, were not meeting cur- rent expenses out of current revenues, but were in effect paying dividends by drawing upon invested cap- ital. During all this period, the companies, influenced 428 Electric Railway Journal Vol. 54, No. 9 by the necessity of preserving their financial credit in order to obtain new capital, affected an air of prosper- ity, and shrank from disclosing their real financial sit- uation, even to obtain an increase of rates, and were thus left in an impoverished condition with no reserve of financial strength to stand the shock of wartime prices and conditions. Many Fare Increases Granted Since 1914, successive applications for fare increases to meet the constant rise in prices have been made by almost every company in the State and have from time to time been granted, in whole or in part, by the com- mission. In considering these proposed increases the commission has tried to do justice both to the companies and to the public, and in every instance has fully recited the facts and its findings, in order that there might be no doubt as to the basis of its decision. The decision has been based upon the principle that in the long run the rate-paying public, as well as the investing public, will be best served by recognizing that our public utility com- panies are entitled to chai'ge such rates as will, under honest, efficient and economical management, produce revenue sufl[icient to meet operating costs, including proper provision for depreciation and other reserve funds in order to prevent an impairment of assets, and to pay taxes, interest charges, and a moderate return on invested capital, based, not upon the cost of repro- duction with or without depreciation, but upon the cap- ital honestly and prudently invested in the property. On the other hand, the commission has emphasized the fact that in any proper method of dealing with street railway rates, the public cannot be expected to pay dividends upon watered stock, or interest upon indebt- edness improperly incurred, or to m.ake good any losses due to mismanagement. Under proper public regulation dividends do not rep- resent profits, but merely interest upon invested capital. The man who invests his money in street railway stock is entitled to the prevailing interest rate for the use of his money equally with the man who makes his investment in the form of bonds. Indeed, in so far as the stockholder assumes the risk of having his prin- cipal impaired or entirely wiped out before bonds are aflfected, he is entitled to something more than the bond interest rate. Public service companies, however, should be so managed and regulated that the risk to the in- vestor and other speculative elements will as far as pos- sible be eliminated, and the dividend return practically limited to the going interest rate. But if the possibility of speculative profit is removed, it is essential that the investment be reasonably secure, or private capital will not enter the field. In the past, the legitimate investor has been receiving a very moderate return, usually less than the current interest rate, and is confronted with the prospect of a substantial loss of principal if forced to realize upon his investment. The public have had much to put up with in the way of poor service, but this service has nevertheless been furnished in many cases for less than cost and at the expense of the properties and the in- vestors. Broadly speaking, the deterioration of the properties and service of our street railway companies is due to deferred maintenance, and that in turn is due. in part at least, to deferred increases of rates. As between the car rider and the investor, the car rider has, up to the present, had much the better of the bargain. Recent fare increases in Massachusetts have been greater, both in number, variety and extent, than in any other state, and the effects of such increases upon traffic and revenue have been such that they supply, little evidence indicating that a general increase of rates offers a panacea for the present ills of the in- dustry. When it is pointed out that interurban fares in Massachusetts are now generally on the basis of about 2i cents a mile, that a straight 10-cent fare is now charged in twenty-three cities and a 7-cent fare, with a 6|-cent or 6.i-cent ticket rate in the remainder, it can hardly be claimed that the experiment of increasing fares has not been given a fair trial. The results of fare increases for the smaller companies have been less satisfactory than for the larger companies. Rather than pay the higher fares passengers will forego all mere convenience riding, will walk, change their place of residence, or remain at home, will patron- ize the jitneys, or use the railroads where lower rates in many cases are available through the purchase of commutation tickets. The revenues received even by the larger and more prosperous systems under the high fares now prevailing fall far short of meeting the le- gitimate costs of service under present high prices. As a practical matter, a maximum limit for fare in- creases is fixed by what the traffic will bear, and in- creases beyond that point will decrease rather than in- crease gross revenue. It is possible that some further increase of revenue may be obtained by raising fares still higher, although it would appear that the satura- tion point must be almost reached with fares already on a 10-cent basis. If further increases are made, it is clear, in any event, that the burden imposed upon the car riders will be wholly disproportionate to any benefit which the companies can possibly receive. Legislative Solution of Troubles Sought The unsatisfactory revenue results from fare in- creases under the old regulatory system have stimu- lated efforts to solve the street railway problem through new legislation. Last year the Massachusetts legisla- ture passed a general act to provide for service at cost by street railway companies. No company, up to the present time, has availed itself of the provisions of that act. The service-at-cost principle, however, has been recognized in two special acts providing for the public operation of the two principal street raihvay companies in the commonwealth, the Boston Elevated and Bay State companies, representing together approximately 46 per cent of the mileage and about 72 per cent of the capital investment of all street railways in the commonwealth. Under the plans embodied in these special acts the properties of the company are in effect leased to the commonwealth for a period of ten years, and the entire direction and control of the properties is placed in the hands of public trustees appointed by the Governor. The trustees are required to advance the fares from time to time as may be needed in order to meet the cost of service, including a return on legiti- mate invested capital as determined by the commis- sion, at a rate of a little over 5 per cent in the case of the Boston Elevated Company and of 6 per cent in the case of the Bay State Company. The Boston Ele- vated act also provides that any deficit in the amount necessary to meet the cost of service may te.-nporarily be raised by assessing it on the communities served, but must ultimately be repaid by the car riders. August 30, 1919 Electric Railway Journal 429 During the year ended June 30, 1919, the fares of the Boston Elevated Company were successively ad- vanced to 7 cents and 8 cents, and on July 1 to 10 cents. A general strike on the company's lines and ether abnormal conditions during July make it diffi- cult to draw conclusions from the revenue figures thus far available, but there appears to be little reason to anticipate that the company will prove self-supporting even on that basis. On the Bay State system, under the 10-cent fare, the increase in revenue for the month of July was only 10.06 per cent, which is less than half the percentage of increase under the former 7-cent fare. During the present year further attempts have been made to secure remedial legislation for our street rail- way companies, but the various plans presented all failed of enactment. The gravity of the present street railway situation under the conditions disclosed is so great that the Governor of the commonwealth has found it necessary in the public interest to appoint a special commission for an expert study of the problem, and to provide for the calling of a special session of the legis- lature in the latter part of this year in order to enact appropriate legislation. Ordinary Laws of Economics Prevail In considering the remedies which are open, it must be clearly kept in mind that no legislative enactments can override the operation of ordinary economic laws. The street railway companies have no revenue except that which is received from the public, and unless the public, in one form or another,contributes an amount sufficient to meet the legitimate cost of operation, serv- ice must deteriorate or be entirely abandoned. Every effort must of course be made to secure the greatest pos- sible economy and efficiency of operation, but the chief problem is to determine the method by which the bur- den of street railway cost can be distributed with least detriment to the public interest. In our judgment street railway service should be sup- ported through the fares paid by the car riders in so far as this can reasonably be done Avithout unduly in- terfering with the freedom of traffic which is essential for the business prosperity of the communities served. But when fares have been raised to a point where a fur- ther increase is likely to prevent the public from availing themselves with reasonable freedom of the service and facilities furnished, and where the burden upon the car riders is likely to be wholly disproportionate to any revenue benefits received by the company, any addi- tional revenue needed to maintain the service should, we believe, be contributed by the communities served out of the general tax levy. I believe that where rides of substantial length are furnished, there would be little public protest and little diminution of riding if fares were established on the basis of 6 cents, or pos- sibly higher. If that is so, and the fact can only be determined in the light of experience in each partic- ular case, there is no convincing reason, on account of historic reasons or a mere accident of coinage, for preserving fares at the old five-cent level. There are, however, manifest advantages as a matter of conven- ience as well as a matter of psychology, in retaining the five-cent unit of fare and that may prove to be the wisest policy. Under a plan of making up deficits out of taxation, the financial drain upon the communities served would be enormously less, and the advantages resulting from the free movement of traffic would inure mainly to the benefit of the merchant, the manufacturer and the real estate owner, and would thus more than offset any amount paid through increased taxation. Any pay- ments so made, it is true, are likely to be passed on to the ultimate consumer through increased rents and higher prices paid to the local merchant, or, broadly speaking, to the same class of persons who constitute the present body of car riders, but the economic waste under the existing system will be eliminated. Public Ownership May Be the Remedy Other remedies besides an increase of fares may be available as a means of increasing the net revenues of the companies, such as new shop machinery and labor- saving devices and improved equipment including the one-man cars which may permit of a sufficient fre- quency of operation to reclaim a considerable portion of the traffic which has been lost to the jitney. No substantial saving can, however, be effected without new capital and the credit of the companies is such that the necessary capital cannot be obtained. It may well be that the ultimate solution of the street railway problem must be found through public owner- ship. No other method offers any reasonable prospect for the restoration of the companies' credit, which is necessary to provide needed capital. The figures pre- sented to your commission, indicating the decline in the street railway riding per capita, emphasize the fact that, with the growth of motor transportation, street railway service is no longer a public necessity to the same degree as heretofore. The street railway is no longer in undisputed possession of the field of urban transportation, and the possibilities of profit are corre- spondingly curtailed. V/hile no other agencj^ of trans- portation yet devised can supplant the street railway and while its retention is vital in the public interest, it is extremely doubtful if the street railway, under present economic conditions, can be supported wholly by private investment. As a matter of abstract theory, private operation may have many advantages over pub- lic operation, but where a public utilitj^ must be re- tained in the interest of public service rather than as a possible source of profit, and where private capital continues to occupy the field only in the hope of sal- vaging the investment already made, recourse must be had to public credit if adequate service is to be re- tained. If it should be deemed necessary or advisable in any case for the public to acquire existing street railway properties, many difficult questions will arise in regard to the terms of purchase. In determining the proper purchase price, while consideration should be given to the investment cost and perhaps also to the cost of reproduction less depreciation, the most important fac- tor, in my judgment, is the actual or potential earning power of the companies. If it can reasonably be shown that the actual results of operation are due to restric- tive legislation or supervision through the denial of needed increases in fares the value of the property should not be depreciated because of losses due to that policy but should be based upon its revenue potentiali- ties under the maximum fare which the traffic will bear. On the other hand, the investors must assum.e the losses incident to a decline of business from gen- eral economic causes, which would have operated even if 430 Electric Railway Journal Vol. 54, No. 9 the companies had been free, like the ordinary busi- ness corporation, to fix the price of their product at the point which would yield the maximum return. Massachusetts, as already pointed out, has already embarked upon the policy of public operation for about half the street railway mileage of the State through the lease rather than the purchase of street railway properties. While this experiment has, up to the pres- ent time, not proved in all respects as successful as was hoped, there is, as far as I can judge, absolutely no public sentiment whatever in favor of a reversion of the properties to the old system and in so far as there is agitation for change, it is directed towards the outright purchase of these properties. But even if we should be forced into public ownership as the only way out of our present street railway difficulties, it must be borne in mind that no change in ownership of the properties will materially affect the cost of the service, and that under any form of operation, the public can obtain in the way of service just as much as it is willing to pay for, and no more. Safety-Car Experience in Virg^inia Fifty Safety Cars Are Now In Operation On the Lines of the Virginia Railway & Power Company By H. N. Callard, Jr. Coniinoi-i ial EiiKim-vr ^\'l-stillyilous(■ Electric & :\Ianuf acturing Coinp.i n.\ CERTAIN franchise matters delayed the inaugura- tion of safety-car service on the various lines of the Virginia Railway & Power Company on its Virginia properties, but these have now been ironed out and to-day twenty cars are in operation in Petersburg, Va., twelve in Norfolk and eighteen in Richmond. THE INCREA.SINGLY FAMILIAR SAFETY CAR IN A NEW ENVIRONMENT IN VIRGINIA In Norfolk the cars operate on the Atlantic City, East Main and Brableton line which passes through the narrow, congested streets of this city, including Granby Street, the principal thoroughfare. Formerly this line was operated with seven cars on a ten-minute headway. Now a seven-minute service with ten cars is given. Car mileage has been increased 38 per cent and the number of revenue passengers approximately 20 per cent. In Petersburg the cars are used to replace old single- truck, longitudinal-seat cars, with a seating capacity of twenty-four passengers. With the decreasing soldier traffic from Camp Lee, the density of travel did not warrant an increase in service, and a car-for-car re- placement was made. The new cars are so convenient and comfortable, however, that a slight increase in travel has resulted. The cars are used on the Syca- more Avenue, Grove Avenue-Cemetery line, and the Washington Street and Ferndale Park lines of this property. In Richmond the cars are operated on the Belmont Avenue and Laurel Street lines, both of which make the Eighth Street, Main Street, Ninth Street and Broad Street loop which handles the most congested travel in the city. Service has been increased on the Belmont Street line approximately 55 per cent and on the Laurel Avenue line 40 per cent. On Aug. 6 a test trip was made by the Mayor of Richmond, accompanied by city officials, to determine whether the operation of a street car by one man was hazardous. The car was put through various "stunts" on the level and on some of the 7 per cent and 8 per cent grades. As a result the entire investigating committee, including the Director of Public Safety, were enthusiastic over the car and were convinced that the safety features provided for every emergency. The following extract is from the Richmond Times-Dispatch of Aug. 12: MYERS GIVES APPROVAL TO SAFETY STREET CARS Director Reports to Council Committee that New Equipment Is Best Ever Used Here In a report made at the meeting of the City Council's committee on streets yesterday afternoon. Director of Public Safety Myers declared that the one-man street car used in Richmond is a "thoroughly safe car" and that the modern appliances with which it is equipped "make it the safest of any car operated by the Virginia Railway & Power Company in the city." It is probable that this report brings to an end the move- ment in the Council against these cars which are now being run on two lines in Richmond. The committee yesterday took no action beyond "receiving and filing" the report. In order to popularize the cars in Richm.ond, as much as possible, marker lights are used to help patrons to distinguish their cars more readily at night. The Belmont Avenue cars show red, and the Laurel Street cars green markers. The maximum permissible load in the car is placed at fifty passengers and when the car has this number of passengers aboard, a "car full' sign is shown. This is a v/elcome innovation for the people in the car and, since very frequent service is given, passengers who are passed up do not complain. Colored Patrons Will Please Fill the Seats From the Rear. White Patrons Will Please Fill the Seats From the Front. Thank You! Virginia Railway & Power Company. Separation of the races is necessary on all lines of this company. When the safety cars were installed, the above sign was placed in the center of each car to accomplish this purpose. The Interborough Bulletin for July, 1919, contains an account of the 60,000-kw. turbo-generator unit installed by the com.pany in its Seventy-Fourth Street power sta- tion in New York City. This was based upon the article published in the Electric Railway Journal for May 10. This article was written by W. S. Finlay, Jr., superintendent of motive power of the company. August 30, 1919 Electric Railway Journal 431 Mr. Jackson Discusses Foreign Fare Practice* Short Zones, High Density, Short-Haul Traffic and Concessions as Features of Foreign Operating Practice Described at Commission Hearing — Interesting Australian Zone System Data Are Presented THE dfevelopment of the fare system on a distance basis has taught the Britisher that people can not be carried for the same price for a like dis- tance in different cities or even over different parts of the same line. His fundamental endeavor is to secure the greatest possible revenue from the greatest possible number of riders rather than the greatest amount per individual passenger. It is characteristic, therefore, that British zones begin and end at a traffic-gatheriiig point wherever possible instead of having definite lengths. These points may be an intersection with an- other line, a large store, a theater, a junction of several streets, the foot of a severe grade or other condition that tends to attract riding. Municipal boundaries have an influence on the location of zone limits due to the fact that they also represent the boundaries of the local municipal system. Zone boundaries change from time to time as fares are changed. Depending on the character of the route and the nature of the ter- ritory, zones vary greatly in length, as from 1.62 miles to 0.74 mile on a 20.8-mile run and from 1.75 to 1.42 miles on a 13.8-mile run. Zone Stages Classified The difference between end-on and overlapping stages is that in the latter the passenger has the advantage of being able to travel from the middle of one stage to the middle of the next. If the London County Council Tramways had end-on stages it would be necessary for a passenger to go to the boundary of the stage in order to be sure of getting 1- miles for a penny. Instead, the stages are halved (approximately), so that the pas- senger has a much shorter distance to walk in order to get his full monej^'s worth. The disadvantage of the overlapping stage in a large city is the difficulty of col- lecting the full fare. Thus the London County Council Tramways figured that a system averaging fourteen passengers per car mile should have ''-mile laps in order that the conductor might be able to collect all the fares due from the passengers. The lengthening of the lap from 0.6 mile to 0.75 mile was estimated to be good for an increase in revenue of £40,000 per annum. The Lon- don cars are very large, seating seventy-eight pas- sengers on two decks. However, the practice in London must not be taken as indicative of the proper practice for other systems with thinner traffic and smaller cars. The British Elec- tric Traction Company uses much shorter laps. In a number of cases this company has reached the statutory fare of 1 penny per mile with end-on stages. It has realized that it can not get 2 pence from a man who is going li miles, as he would walk after getting his pennyworth. To keep him on the car, the company had devised the quarter-of-a-mile farthing increment. As "Abstract of testimony of Walter Jackson presented during the hearing on fares of the Public Service Railway before the IJoard of Public Utility Commissioners of New Jeisev, at Newark, .Tune 23. 24 and 25, 1919. the farthing is a rare coin, farthing tickets were sold before the war in strips at full price. These were legal tender for either penny fares or penny-plus-frac- tion fares. The farthing increment has since been superseded by the half-penny. Length op Zone for a Given Fare The British form of discrimination is intended to work out for the greatest benefit of the greatest num- ber, whereas the American unit fare has discriminated always against the short rider — the very person who should be encouraged to use the service. The length of stage for a given fare is best illustrated by a table which includes data for thirty-four municipal proper- ties.' The statutory maximum rate is still 1 penny per mile, but this is likely to be raised in the near future. At the same time, the general principle of irregularity in length of zones will be maintained. Bus fares, which are not regulated, are in the London area about 30 per cent higher than tramway fares where tramways are not in competition ; otherwise, they are the same ex- cept that the buses do not attempt to have a 4 pence maximum fare (as on the London County Council Tramways) because of their long-ride pleasure traffic. Bus fares run up to 1 shilling 6 pence (36 cents) or more for long runs into the suburbs. The latest ordi- nary fare of the London County Council Tramways is 1 penny for two sections totaling li miles, replacing the rate of 1 penny for a three-section zone totaling 1.8 miles — the average distance current, February, 1919. The 0.3-mile cut and the use of two sections instead of three are expected to bring more revenue and assure better fare collection. The variations in length for a penny ride are also noticeable on the tube lines, ranging from 1.1 to 1.9 miles on the Piccadilly line and 1.1 to 2 miles on the South London and Central London tubes. The Aberdeen system has practically a two-fare ar- rangement. A halfpenny fare is charged for distances averaging 0.6 mile; a penny fare is charged for the overall ride on any line from the center of the city. A ride across town costs the sum of the fares on the op- posite sides of the center. The short-ride fare is so popular that it is responsible for more than 25 per cent of the traffic at ordinary fares. Suburban Traffic Is Encouraged Zone fares are not necessarily cumulative. On the London County Council Tramways, as already explained, the maximum fare does not exceed 4 pence, regardless of distance beyond four two-section zones, and on the London Underground lines also certain concessions are made to the long rider. This is to encourage riding on the outer or suburban ends. Thus, a passenger who rides the full length of the Hampstead tube gets two or three stations on the connecting District Railway or Piccadilly tube, so that he is carried into a large part ^Electric Railway Journal. May 3, 1919, page 856. 432 Electric Railway Journal Vol. 54, No. 9 of the business district without extra charge. As a general proposition British electric railways favor the suburban rider, the theory being that since a certain base service must be given on a suburban line the railway should be willing to reduce the fare or lengthen the zone if the result promises a greater revenue because of the capture of walkers. From the earliest days of the British tramway, pas- sengers boarding cars before 7.30 or 8 a.m. (according to local franchise conditions) have enjoyed less-than- cost transportation. This fact emphasizes the bun- combe in statements that the zone fare has prevented the British workman from living in the country. In its last fare increase, the London County Council Tram- ways management noted that instead of losing £160,000 per annum on workmen's fares they would lose only £105,000 — a mere half million dollars ! Short-Haul Traffic It is difficult to make any real comparison of the headways and other service standards except to bring out this fundamental fact: If a street railway is op- erated on the assumption that the short rider is wanted, British Discrimination The British form of discrimination is intended to work out for the greatest benefit of the greatest number, whereas the American unit fare has discriminated always against the short ridrr — the very person who should be encour- aged to use the service. People cannot be carried for the same price even over different parts of the same line. a certain number of invitations must be extended to a person before he has walked a mile or less. If he has already walked half the way before a car comes, he is not likely to be interested, but should a car come along every two or three minutes the temptation to ride is irresistible. The chief difference between the American and Brit- ish rush hour is that the contrast between off-peak and peak riding is less in the United Kingdom, chiefly through the excellent short-ride traffic throughout the day which comes from the non-factory part of the popu- lation— women shoppers, school children, office workers going to and from lunch, delivery boys, agents and others. One parallel which brings out the difference between the short-ride and long-ride system is the cinema, or moving-picture theater. In Great Britain the rise of the neighborhood playhouse has improved afternoon and night traffic; in the United States it is said to have injured such traffic. Actually almost every British system has three peaks — morning, noon and night. In Belfast, a fairly wide-spread city, the ordinary penny passengers constitute almost 50 per cent of the riding, although the penny passenger can not get much over a mile for his fare.'' In general, the minimum fare on British tramways, whatever that fare may be, is responsible for from 40 to 60 per cent of the traffic. -Electric Railway Journax, May 10, 1919, page 909, and May 24, 1919, page 1005. While the revenue return per passenger carried is li to 11 pence (8 to 8* cents) on a number of British lines, that figure is not so far below the United States average after allowance is made for the dilution caused by the free transfer. Furthermore, many British pas- sengers pay two fares or, say, 4 to 6 cents in all in mak- ing a trip, because they get no free transfers but pay only for actual distance. Figures of many British op- erators show that even where the individual zone fares are low, the earnings per car-mile compare very favor- ably with those secured with the higher unit fares paid in the United States. For example, the 1918 report of the Liverpool Corporation Tramways showed earnings of 18.91 pence per car-mile, or very close to 88 cents, despite the fact that fully 80 per cent of the passengers paid a fare equivalent to 2 cents and that this fare was good for a ride of not more than 2 miles. The short-ride habit can be illustrated in no better way than by the fact that in London a man who has already paid 6, 8 or 10 cents for an underground ride will jump on a bus and pay another 2 cents for the i to A mile to his home. In fact, in building up its bus traffic, the London Underground looks upon every sub- way station as a focal point for short-ride traffic. It will deliberately turn a bus line a block or two off its route in order to pick up this class of traffic. British operators are usually willing to reduce the rate of fare where there is a chance of getting more revenue with- out a corresponding increase in operating expenses. Why British Cities Have Less Track The smaller suburban development of British as com- pared with American cities accounts largely for their smaller track mileage. At the same time even the muni- cipal lines do not hesitate to take up unremunerative sections of track. After all, the only way to determine whether a city has sufficient track is to inquire if whal it has is meeting the needs of the community. Most British managers do not see the need for any great en- largement of mileage, as the British systems were for- tunate in having been developed systematically without duplicate competitive lines and the like. America is ahead of Great Britain as regards the mechanical side of the industry; but the British, because of the influence of the short-ride traffic, appear to be ahead of Ameri- cans on the commercial or selling side. Car Speed and Equipment Standards In spite of the heavy traffic the schedule speed of British cars is not more than a mile-per-hour or so lower than American cars in cities of equal size, and this difference is not chargeable to fare collection but to the lower motoring of British cars. The average American car has four 50-hp. or two 75-hp. motors, whereas many British single-truck, double-deck cars have only two 35-hp. motors. Most British cars are double-decked. Opinion concerning their desirability is divided. Some British managers contend that they are absolutely necessary for their heavy traffic while others wish for the single-deck car. Within the past decade, the tendency has been to inclose the upper deck except on lines where pleasure traffic is a factor. The seating usually is longitudinal on the lower deck and transverse on the upper. The seating capacity is high, ranging from fifty-four to seventy-eight. The Glasgow car seats sixty-two passengers. Standing in pre-war times was permitted only to a very small extent. The August 30, 1919 Electric Railway Journal 433 managements realize that the short rider must get comfort or he will walk. A great variety of signs are used to indicate stop and fare points. Inside the car is a poster showing the rates of fare between different points on the route. The regular rider, of course, simply asks for a penny or 2-penny ticket, etc., but the poster is helpful to the stranger. No automatic devices for showing the num- ber of the stage reached by the car are in use. Stopping periods are short, owing to the prevalence of open plat- form.s, the absence of prepayment and the presence of loading inspectors at busy points. The number of stops per car mile is not greater than in the United States, despite the greater number of passengers per car mile. Compulsory stops are few in number, the fire-hose type of America being unknown. One factor, which tends to keep down the number of boarding stops, is the tendency of people to walk to a fare stage boundary. Effect of Increased Fares on Traffic British roads are now getting higher fares, but under the zone system adjustments in fares are much easier. It is not necessary to change the coins; it is enough to give smaller packages of transportation at the old prices. The most striking feature is that, despite the greater proportionate increase, 50 to 100 per cent, there are no such decreases in riding as followed a mere 20 per cent increase in the United States. Also, the greatest increase in cost has to be borne by the short rider whose fare rose from i penny to 1 penny. Riding is holding up very well since the armistice, although many man- agers had feared a drop after the war fever. The reasons for the good post-war riding are various, in- cluding the eight-hour day, which gives the workman more leisure. The Dublin United Tramways may be regarded as a good example of the effect of increased fares ; first, be- cause it is a private undertaking; second, because it serves a non-industrial community; third, because the fare in the older part of the city was fixed at 1 penny by local statute. Despite two fare increases, an .en- forced cut in service due to fuel shortage and the in- fluenza epidemic, there has been a gain in traffic. The report period, covering eleven months of 1918, is divided as follows: Jan. 1 to March 20, full service at ordinary fares; March 21 to April 26, reduced service but no increase in fares ; April 27 to Nov. 13, first fare in- crease; Nov. 4 to Nov. 30, second fare increase. The total number for the 11 months was 64,996,883 pas- sengers, an increase of 4,356,447." It is only fair to state that British tramways have had no competitors except buses — and the latter are a factor chiefly in metropolitan London. Even in the case of Leeds, one of the few cities showing a drop, the loss in traffic for the fiscal year ended March, 1919, was only 3 per cent as compared with an enforced cut of 4 per cent in mile- age, due to fuel shortage. Probably some increase might have followed if the mileage had been maintained. During the- war almost every able-bodied man went into some kind of war service. As a result of the war hundreds of thousands of women went into industry and a good deal of the increased riding came from tham. They rode more than men do. The workers, generally, have become better riders because of higher pay. Men in working clothes get on a bus or car to ride for only 'Electric Railway Journal, May 31, 1919, page 1038, and June 7, 1919, page 1087. one or two traffic stops. They can not refrain from riding apparently because of the frequency of service and the short-ride fare rate. British Zone P'are Collection Methods Are Uniform In Great Britain the system of fare collection current involves the issuance of a receipt showing the amount of fare paid and some other details. Prepayment is used to some extent for upper-deck passengers on some properties and for all passengers only at Gateshead and on one or two other small properties. Among the reasons why the prepayment idea has not been popular in Great Britain are the following: Occupancy of rear platform by the stairway to upper deck; length of time necessary to handle a variety of fares; smaller losses than in America from stealing by conductor or pas- senger due to the fare receipt system ; absence of en- closed front and rear platforms ; low standing load, which prevents conductor's presence within the car from becoming obnoxious. Three well-known kinds of fare receipts are: The Belfast type, which shows only the number of stages or Encourage the Short-Haul Traffic If a street railway is operated on the assump- tion that the short rider is wanted, a certain number of invitations must be extended to a person before he has walked a mile or less. If he has already walked half of the way be- fore a car comes along he is not likely to be interested. A car every two or three minutes is irresistible. zones to which the passenger is entitled to ride; the London type, which shows both the number and the name of each stage; the Glasgow type, which shows only the names of the stages. With any kind of a ticket, the conductor must as a precaution against fraud cancel each receipt in a counting-type bell punch. At the end of the day the total increase over the starting number shown by the bell punch must equal the total number of receipts issued, whether cash or non-revenue exchange for tokens or workmen's "returns." The use of differential fares on the British pay-while- you-ride system necessitates the use of ticket inspectors. These men board the cars at irregular intervals to check the passengers' receipts against the route and serial numbers shown on the conductor's way-bill or trip- sheet. The use of defunct tickets is rare, the chief loss being due to over-riding the zone to which fare has been paid. On detecting over-riding, the conductor issues a new ticket for the additional amount exactly as for a second passenger. On lines of moderate traffic, that is to say ten to twelve passengers per car-mile (British standards) missed fares and over-riding are declared to be negligible. It is amazing that the British conductor can collect so much money for the treasury as he does in view of the fact that he has to handle dif- ferential fares on double-deck cars seating from fifty- four to seventy-eight passengers. Unlike the American conductor, the British conductor has no time-limit transfer to worry about, however. In general, the zone 434 Electric Railway Journal Vol. 54, No. 9 fares in Glasgow where there are about twenty pas- sengers per car-mile are collected with less difficulty than is the unit fare plus the time limit transfer in America. On the Alexandria Park crosstown line in Glasgow it has been found possible to make twenty- three fare collections per car-mile. The Zone System in Australia Statistics on zone fare practice in Australia show that short riding is as popular there is in Great Britain, although the conditions in Australia, such as widespread cities, liberal amount of trackage, high wages, etc., are much closer to American conditions than to British. Australian practice appears to be a blend of British and American. Much of the Australian equipment is of American origin. Sydney, New South Wales, with a population of from 750,000 to 800,000 people, has 2251 miles of single track in its "city and suburban lines." During the fiscal year ended June 30, 1918, the fare was 3 cents for any initial section varying in length from 1 to 2 miles plus 2 cents for each additional 1 to 2-mile section. AUSTRALIAN ZONE FARE DATA Fare Fare for Earning.-; Length for First Other Cent.'5 Zone Zone Zones p°r Citv Population Miles Cents Cents Car-Mile Svdnev 750.000 1 to 2 3 2 44.7 Melbourne 708.000 1 to 2 3 2 34.0 Bri.sbane 170,000 1 2 2 45 to 50 Adelaide 145.000 0.94 to 1.9 2 2 Certain concessions were made to teachers and school children. The number of passengers carried was 212,- 372,470. The average revenue per car mile was 44.70 cents, the operating expense 35.1 cents, and the cor- responding operating ratio was 78.5 per cent. The per- centage of profit on the capital invested was 5.51 per cent. Melbourne, the second city of Australia, with 708,000 people, for the fiscal year ended June 30, 1918, showed traffic receipts of £901,474; passengers carried, 113,034,- 157; average fare per passenger, 1.914 pence, or nearly 4 cents; revenue per train mile (cable gripper and trailer) 16.859 pence, or nearly 34 cents. A remarkable feature in the Melbourne report is that fares actually have been reduced. The reason for this is that in 1916 the cash fare on the suburban sections was reduced from 3 pence to 2 pence, bringing the average to 1.95 pence; and in the following year a further reduction lowered the average to 1.91 pence, or 3.8 cents. These reductions proved justified by the increase in traffic, for in 1916 the receipts were £805,778; in 1917 they were £841,784, and in 1918 they were £901,474. During these years the revenue per train mile also increased, being 16.217 pence in 1916, 16.261 pence in 1917 and 16.859 pence in 1918. The length of the penny stages varied from 1 to 2 miles. One peculiarity of Australian systems is that they sell a weekly 12-ride ticket in addition to the season tickets. About one-third of the Melbourne riders used such weekly tickets, although they were no longer obtainable at reduced prices. The single-trip fares in Melbourne were li, 2 and 3 pence, or 3 to 6 cents, with an average ride of 1.628 miles per penny. The numoer of passengers per train mile was 8.8. The total revenue for the fiscal year ended June 30, 1918, exceeded that of the preceding year by £59,690. Most of this excess had been absorbed in the increased costs of fuel and stores and wages. The operating ratio of 56.6 per cent was, of course, lower than that for electric railways. The Brisbane Tramways serve a population of 170,000. At Brisbane the zones or sections average about 1 mile in length, variations being made to take in traffic con- centration points wherever practicable. As at Sydney, the suburban sections are rather longer than those near the center of the city. Furthermore, the maximum fare for a ride taken from the business and retail shopping district does not exceed the cost of three sections or 3 pence (6 cents) even if the ride covers four or five sections. Frequent stopping places attract the short rider and 60 per cent of the fares are from penny (2- cent) passengers. The earnings per car mile are between 45 and 50 cents. Data covering the operations of the Adelaide Tram- ways Trust for the year ended July 31, 1914, are of interest. For this year Australian conditions closely paralleled those in America for cities of populations comparable to Adelaide which then had 145,000 people. The beginning wage was a shilling (24 cents) an hour and the maximum 32 cents, with time and one-quarter for each hour in excess of nine hours a day. Actually, eight hours' work corresponded to seven hours' platform time. The men received six days' vacation a year plus three days more for good behavior. Uniforms, over- coats, punch and miscellaneous supplies were furnished free. Australian Zones Favor Suburbanite While the 1914 figures on Adelaide are probably obso- lete now as regards rates of fare, the ratios of different classes of passengers are instructive. In the fiscal year ended July 31, 1914, 41.91 per cent of the passengers paid the base fare of 2 cents, 43.42 per cent paid 4 cents, 8.69 per cent paid 6 cents, 1.49 per cent paid 8 cents and 1.41 per cent paid 10 cents. The length of the sections varied from 0.94 to 1.9 miles, indicating the usual zone fare plan of giving an extra bit to the suburban rider. A report dealing with the Adelaide tramways makes the statement that "the extension of ihe electric railway system has been in a large measure responsible for the rapid growth and extension of the suburban districts." This is good evidence that the right kind of zone system does not hamper suburban growth. Adelaide suburbanites could buy commuta- tion (concession) tickets at 16S to 183 per cent discount if they rode three, four or five sections. There were also concession tickets for school children. A report of the Auckland, New Zealand, property of the British Electric Traction Company shows for the period Sept. 23, 1916, to Sept. 28, 1917, 27.13 miles of route, a schedule speed of 9.31 m.p.h. and the high car use of 63,705 miles per car per annum. The pas- sengers per route mile were 860,158; the passengers per car mile, 12.35, and the earnings per car mile were 19.95 pence, or nearly 40 cents, based on an average fare of 1.6 pence or 3.2 pence per passenger. Although the inability of Australia to ship its surplus food and v.'ool abroad probably prevented the need for wage increases as high as in the United States, the Australian tramways have nevertheless been obliged to make certain increases as well as to carry the war allowances to enlisted employees and the increase in the prices for fuel and materials. The Australian practice of favoring the suburbanite is in accord with British and Continental zone practice. August 30, 1919 Electric Railway Journal 435 Zone fare operators see no sense in reducing rates on saturated sections but are willing to do so at the outer ends where there is a possibility of filling up the cars. In short, their theory is to get the largest number of passengers that will bring the maximum revenue. Objections to Zone Fares Considered As to the relation between zone fares and congestion, Glasgow, the lowest zone fare city in the world, and New York, the lowest flat fare city in the world, are alike in the prevalence of tenements. The rapid iiansit lines of New York have not taken people out into the country as expected. What they have done is to take the New York (Manhattan) tenement houses to Brook- lyn and the Bronx. People who moved out of Manhat- tan did not want a cottage but a still-easier house- keeping apartment than they had had before. Lo- cal habits, as well as topography, have much to do with the character of dwellings. The people of Glasgow and Edinburgh are like New Yorkers in their prefer- ence for the multi-family house. In an English city, on the other hand, the average house is a one-family structure.* No doubt, America's adjustment from the flat to the distance fare will be fraught with real estate adjustments too, but this can not be avoided. The realty business has been a parasite long enough. That the zone fare does keep the price of land within reason is also illustrated by the case of the distance-fare sub- urban railroad of the United States. People would not travel 25 miles or more on a distance-fare road if there was no set-off in lower rents. American electric railways, in changing to zone fares, are faced by a hard task. Such readjustment is always harder than direct evolution. People demand all sorts of things such as: "Why not give us another block?" etc. If the zone fare is to be a success, discrimination — the giving of difl'erent distances for the same rate — is unavoidable, but is not the American unit fare dis- crimination against the short rider? Human nature is not substantially different in Britain, Australia and America. What has proved good abroad in the way of selling transportation would serve here, too. City zone fares require a reasonable density of popu- lation. Many American cities have that density, but cities like San Diego and East St. Louis are rather too scattered for complete zone fare practice. Newark, Jersey City and Hoboken, all of which are served by the Public Service Railway, are well adapted to zoning. Railways ought to have every encouragement from regulatory bodies in working out a flexible system of zone fares. Otherwise both would be disregarding the vast body of experience on the subject. While the personnel in field and office for a zone-fare system is greater than for the unit-fare system, the zone-fare operator has the advantage of securing an absolute audit of every fare transaction whereas it is practically impossible to do this with the time-limit transfer. If fare receipts are to be issued in America on a prepayment car, a machine would be more de- sirable than the British hand punch. However, the general tendency here is to operate the zone system on the pay-as-you-leave scheme of fare collection. The zone fare tends to make a better business man of the railway operator because of the short riders. A manager who knows that the bulk of his trafiic can leave *See also Electric Railway Journal, May 24, 1819, page 1017 ; Aug. 9, page 276. him over night necessarily grows into a different point of view than a manager who feels that the bulk of the traffic must stay with him. British systems that begin with a penny go in the ratio of 1, 2, 3, 4, etc., or 1, Ih, 2, 2i, and the same rule applies on the Continent. In other words, the second fare is either double or one and one-half times the initial fare. It is clear that in fixing these rates, the desire is to establish the lowest feasible minimum that will attract the short rider. If it be assumed that a corresponding condition exists in the United States, a series like 2, 4, 6, 8, 10 cents, etc., or 3, 5, 7, 9. 11 cents, etc., would result. In any event zone fare systems in which the base or initial fare is three, four or five times the following increment fares, are not known abroad. 'If foreign zone-fare practice for long rides were applied to the Public Service Railway, the charges might run: An initial charge of 3 or Si cents; 2 cents more for the second mile; then 11 miles for the next 2 cents; li miles for the next 2 cents; li miles for the next 2 cents, and so on, thus reducing the rate for the suburban rider. Whatever method is pursued, the extra revenue has to come in some way, but foreign spe- cific graduated fare systems do not attempt to assess a standby charge against the short rider. Adjustment op Charges The fact that 52.2 per cent of the workers in fac- tories of 250 employees or more live within 2 miles of their work creates an ideal situation for the develop- ment of short-ride trafflc on the Public Service Railway. With the traflac density on this system it appears hardly necessary to adhere strictly to the mile divisions. There might well be a greater tolerance than the 500 ft. plus or minus to the mile. If a zone fare is tied up to a rigid mileage system it is, in some respects, just as bad as a flat system. It would lack the element oi flexibility and of adjustment to increased or decreased costs. The zone system means more work for everybody. Nevertheless it is necessary to look at this problem as a merchant does. If he could sell everything at one price regardless of quality his bookkeeping v/ould be immensely easier — but it would not be good business. The public is thoroughly used to the face that he sells the same articles at one price on bargain mornings and at another price on other mornings. It has not acquired that conception about street railways possibly because the latter has been a monopoly. A street railway ought not to be held down to giving exactly the same amount of transportation at the same price under a great di- versity of conditions; the manager of a street railway ought to be in the position of saying: "How can T get the greatest possible number of customers and the greatest possible revenue from these customers, regard- less of what I do 10 miles from here?" The merchant is not questioned on this discrimination because the customer has freedom of choice. Under the old-time transportation conditions the customer had no choice except to walk. Today he has the choice of some other vehicle. Therefore, the railway operator ought also to be free to meet competition. A number of foreign zone systems earn more in cents per car mile than the Public Service Railway expects with either a 7-cent flat fare or its 5-cent first-mile plan. It is not uncommon to find car mile earnings 40 cents or more where the base fare is onlj' 2 or 3 cents. 436 Electric Railway Journal Vol. 54, No. 9 Pittsburgh Valuation Reviewed Cost of Financing, Working Capital and Other Important Valuation Problems Are Dis cussed — Zone Fares Are Recommended by City Expert AS WAS NOTED in the news columns of the Elec- l\ TRIG Railv/ay Journal for last week the report X. A. of the Engineers Valuation Board, Pittsburgh, Pa., was filed before the Public Service Commission of the Commonwealth of Pennsylvania on August 20. The report will be considered at a meeting of the commis- sion now scheduled for Sept. 24. This bpard was formed early in 1918 for the purpose of assisting the commission in connection with a determination of the rate-making value of the property of the Pittsburgh Railways Company, and of a reasonable return thereon. The report, which is an eighty-eight-page volume, con- tains the letter of transmittal to the commission which includes a general summary of the report, a general description of the property, a summ.ary of the historic cost of the property, the estimated cost of reproduction on several different bases, the estimated cost of opera- tion, maintenance and renewals, organization charts, maps of the component parts of the property, and sep- arate statements filed by mem.bers of the board. The report was signed by Robert M. Feustel and George W. Fuller, representing the City of Pittsburgh and the neighboring boroughs respectively, J. A. Emery and Morris Knowles, representing the Pittsburgh Rail- ways Company, and by F. Herbert Snow, chief engi- neer of the commission and chairman of the valuation board. Details of the Report Statements of original and historical costs were pre- pared by the railway companies under the direction of Ford, Bacon & Davis, consulting engineers. New York City. This work was done under general instructions laid down by the valuation board, and was checked while in progress, and after completion by the city's representatives on the board. The several bases upon which the cost of the physical property was deter- mined, together with the corresponding costs were de- tailed in the news story of last week. Depending upon the basis used, the estimated cost of reproduction ranged from $49,324,791 to $102,842,274. The repro- duction cost figures include: Real estate and right of v/ay; organization and development cost prior to con- struction; engineering, legal and administrative ex- penses; interest and taxes during construction: cost of financing; materials and supplies and the working cap- ital necessary for operation. The railway company pur- chases its power of the Duquesne Light Company, and has done so since Dec. 31, 1913. While the actual trans- fer of title to all of the power plants has not taken place, these plants were not considered part of the property as valued for rate-making purposes. The board found superseded property costs as fol- lows : Horse car system - $1,542,178 Cable system 3,778,639 Early electric equipment and construction 5,950,641 A large proportion of this property was superseded fhi'e still in good operating condition, some of the cable systems having been in operation for only seven years. Corresponding to the several bases upon which the physical cost was determined, the accrued depreciation was estimated in am.ounts ranging from $12,039,600 to $23,775,500. While able to agree on a physical value of the prop- erty the board was unable to come to an agreement relative to the value to be used for rate-making pur- poses. Development value, going concern value and other elements of value proved to be stumbling blocks. In the valuation work no allowances were made for franchise values in excess of cost, the special charter of the Pittsburgh Railways Company, earning capacity, terminal rights or facilities and bridge rights in excess of cost. According to the report the Pittsburgh Railways Company system embraces 600.2 miles of single track, of which 441.9 is paved. The rolling stock consists of 1861 cars, of which 1630 are passenger cars. The com- pany o-\vns 167 bridges, and has borne a portion of the cost of 32 others. One tunnel, the Mount Washington, 3500 ft. long, is owned by the company. During the year 1918 the company operated 33,573,578 car-miles and 4,209,989 car-hours, carried 264,232,927 passengers, and purchased 173,500,078 kw.-hr. of energy from the power company. The present system is made up of properties, rights and franchises originally acquired by some 200 separate companies. Upwards of 70 mu- nicipalities in two counties of Pennsylvania are involved. The report summarizes the history of the propertj' both from a structural and an investment standpoint. In making the appraisal due recognition was given to probable omissions from inventory, to unavoidable con- struction wastages, and losses and contingencies as ac- tual experience shows them to be encountered under the customary methods of construction followed by ca- pable engineers. The allowances made for these items range from nothing at all for special work, trolley wire supports, poles and fixtures, etc. to 15 per cent for fences and signs. The percentages were added to costs and not to quantities. In recognizing the construction expenditure items of engineering and superintendence, legal services, ad- ministrative and miscellaneous general expenses, inter- est during construction, taxes during construction, and financing, the report states that while it has been com- mon practice to estimate these overhead expenses by taking either a percentage of the total property ex- penditure or a lump sum intended to cover such item, the limitation of such a procedure was considered. Ac- cordingly the probable expenditures for each of the sev- eral services named were considered separately, due ac- count being taken of all the available evidence on the conditions and cost of reproducing the property in question. In estimating these overhead costs it was considered that the property was reproduced at the rate of 150 miles of track per year, that is a four year reproduction period was used. While 5 per cent is ordinarily used August 30, 1919 Electric Railway Journal 437 to cover engineering, 4 per cent was used in this case because of the absence of power plants. Administra- tive, legal and miscellaneous general expenses were estimated at 3J per cent. Cost op Financing Discussed The discussion of the cost of financing is of particular interest. Quoting from the report: "In this case, taking into account the magnitude of the property and the amount of securities necessary to be issued to re- produce it, the board is unanimously of the opinion that there is an additional element of cost, separate and distinct from bond discount, which may be properly considered as the cost for services that should be in- cluded, like engineering and legal expenses, in the cost of property. "We submit that a distinct factor in the cost of re- producing this large property, not present perhaps in a smaller one, is the expense involved in assembling the necessary capital. This expense is commonly met by money retained from the sale of securities, so that the utility company receives less than the sale price. Moreover, the sale of the securities to the ultimate holder is frequently at less than par, so that the sum actually realized to be devoted to construction purposes is still further reduced below the face value of the secur- ities. "There are two elements of expense which make up the difference between actual sale price to the investor, and what the company realizes, and the significance of each element is recognized by this board in arriving at a fair estimate of allowances for cost of financing. The first element represents only the reasonable com- pensation for bankers services in marketing the securi- ties, and forwarding the funds yielded. It covers per- sonal and corporate service and the expenses of examination, negotiation and advertising and selling, through all of the various stages, until a sale to the final investor is effected. Such expenses would be in- curred even if the utility company dispensed with bank- ers and marketed its securities through its own sales- men and agents. In fact, this latter method undoubt- edly would require more time and cost more than if recourse were had to an existing banking house with established reputation and clientele. Working Capital Is Defined "The second element of cost in financing is experi- enced in the case of an issue of securities running into many millions of dollars like those of the property in question. This is the underwriting of a large firm or a syndicate to guarantee that the entire issue will be promptly marketed without even a temporary lack of funds to embarrass the company or halt construction." In the opinion of the board these two elements of expense constitute a part of the cost of reproduction. The report goes on to say that these costs frequently are merged with an additional definitely recognized ele- ment which reduces the sale price of securities below par value. The element referred to is that of the bond discount which is necessary to attract the investor. For the cost of reproduction as of the actual date of construction the cost of financing is estimated at 3 per cent, while for the cost of reproduction as of the present date the cost of financing is estimated at 5 per cent. Working capital is defined in the report as the total mobile capital required in addition to the fixed capital. This capital was separated into two elements, one re- lating to general stores and supplies, the other to the funds necessary to meet minor irregular payments incident to the ordinary conduct of the business, and for the prompt payment of bills in order to secure trade discount, for prepayments found to be desirable and necessary, and for the purchase of materials at ad- vantageous market prices. Several different methods of arriving at an estimate of the necessary amount of working capital are discussed in the report. In sum- ming up this discussion the report states : "This board finds, after giving due consideration to the fact that the street railway business is a cash one, revenues being collected almost entirely in advance of ordinary dis- bursements, that $1,075,000 should be allowed for cash working capital, and that $1,134,000 should be allowed for stores and supplies, making the sum total $2,209,000 for working capital. Service-at-Cost Contract Recommended In arriving at the figures for accrued depreciation mentioned above, consideration was given only to the condition of the inventoried property at the time of the inspection as affecting the ability of the item to give service. Except where the particular part in question could not be satisfactorily inspected, obsolescence was not given consideration ; in such cases recourse was had to life tables where obsolescence is automatically re- flected. Wherever the part being depreciated had a scrap or salvage value, its value was given recognition. The Mount Washington tunnel was depreciated on the basis of a 100-year life. Relative to contractual relations, the report expresses the opinion that all expenditures for street improve- ments, bridge tolls, etc., add nothing to the facilities for the convenience of passengers on street cars. On the other hand these things use up money which would otherwise be available for better cars and improved service generally. It is suggested that there be a re- adjustment of the contractual relations between the public and the company managements, and that this readjustment should result in a material modification of the terms of the public's consent to the company's operation, and should make possible an agreement in partnership in the construction, maintenance and opera- tion of the railway system. Regarding this point the report says further: "It is beyond the experimental stage in at least two. American cities where an effort is seen to give service at cost, to fix a definite return on definite value, to afford public participation in the man- agement of the transportation system, to remove inequi- table tax burdens from the rider, to adjust easily and smoothly the fare to the needed revenue and generally to reward good management." Board Members File Separate Statements While agreeing on certain figures representing his- toric cost and cost of I'eproduction new, the members of the board were not able to agree as to what weight should be attached to each of these factors in arriving at a rate base. Separate statements representing the several opinions of the members of the board were in- cluded in the report. In his statement, Robert M. Feustel reviewed the various bases of costs used in mak- ing the valuation. He stated it to be his belief that the average prices for the period 1906-1915 were fair prices upon which to base the physical value of this property. He expressed the opinion that going value, as it is com- monly called, is not a value which inherently attaches to 438 Electric Railway Journal Vol. 54, No. 9 all properties. In his opinion, this value exists pri- marily w^here the business is showing favorable earning possibilities as a result of the efficient vi'ay in which the whole enterprise has been built up and operated. He did not believe that the past earnings of the Pitts- burgh Railways Company, taken as a whole, warrant any conclusion that there is an additional value which should be added to this property. In his opinion, the proper rate base should not be greater than $48,000,000 and a fair return was believed to be 7 per cent. Where the money is raised 60 per cent from bonds and 40 per cent from stock, this return corresponds to a 6 per cent return on the bonds and 8* per cent on the stock. He recommended that earnest consideration should be given to a trial of zone fares. In a concurring statement George W. Fuller agreed as to rate base and rate of return with Mr. Feustel, but held slightly different views relative to certain par- ticulars. In his opinion appreciation of plant because of prevailing high prices should not appear in the rate base. His concluding remarks were, to quote the report: "The first requisite of this proposition is to provide good service, and the cooperative efforts of all concerned should be directed expeditiously to that end. Actual investments of the past should be respected and steps taken to safeguard the necessary return on the new money needed for imperative rehabilitations, extensions, and betterments." In the statement signed by J. A. Emery and Morris Knowles, the opinion is expressed that neither the pres- ent company nor the preceding companies, considered as one system, could have charged off the superseded horse car, cable and early electric system, to say noth- ing of the accrued depreciation of parts of the present physical property, and at the same time have main- tained their credit for the development which was required of them by paying a proper and reasonable rental for the capital required. They stated it as their belief that the records arc clear that at least $6,000,000 cash was put into the property for consolidation purposes. Regarding appre- ciation they expressed the opinion that the company is justly entitled to enjoy fully the appreciation in value represented by present prices, especially since prices are not expected to revert to their former low levels. As fair average prices they advocated those based on the averages for the period 1914-1918 inclusive. The inclusion of such development cost, together with their estimates of going value, consolidation value and other elements of value represented by actual expenditures, brings their estimate of the rate base to at least $65,- 000,000. They also expressed the opinion that the rate of return upon new capital should be at the rate of 8 per cent. In their estimate of annual return an item of $4,900,000 covering contingent expense, tax reserve, functional depreciation and amortization of abnormal re- placements was included. Changes in the Cost of Living July, 1914— July, 1919 THE cost of living for American wage-earners was 71 per cent higher in July, 1919, than at the outbreak of the World War in August, 1914, according to a preliminary statement just issued by the National Industrial Conference Board based on a careful sur- vey of conditions the country over. This represents an advance of 6 per cent since March, 1919, and of 12 per cent since June, 1918. The increase of 71 per cent to July, 1919, makes the highest point yet reached and compares with an increase of 61.3 per cent to March, 1919; of 65.9 per cent to November, 1918, and of 52.3 per cent to June, 1918. The total increase for the five-year period since the beginning of the war in the average cost of each of the principal items entering into the family budget is shown below: InTease in Cost Relative Between July, Increase as Re- Importance in 1914, andJuly, lated to Total Family Budget, 1919, Budget, Budget Items Per Cent Per Cent Per Cent All items 100.0 ... 70.8 Food 43.1 85 36.6 Sholtpr 17.7 28 5.0 Clothing 13.2 100 13.2 i^upI, heat, and light 5 .6 57 3.2 Sundries 20.4 63 12.8 More Statistics Added to Washingf- ton Testimony Data on Distribution of Capital Stock, Compari- son of Operating Revenue, Expenses and Wages, etc.. Presented TO SUPPLY supporting data for statements which had been made during the hearings for the rail- way side before the Federal Electric Railways Commis- sion and to answer questions which had been raised by the commissioners, the American Electric Railway Association, through its counselor, Bentley W. War- ren, presented several statistical reports at the close of the recent hearings for the public side. Among these renorts was one covering the distribution of the secur- ities of electric railways which showed, in summary, that of 27 companies reporting, 4,665,462 shares of .'^tock outstanding are held by 30,492 individuals, or an average of 153 shares to each holder. Of 98 companies reporting. $440,867 735 worth of stock (par value) out- standing is held by 3?. 788 individuals, or an average of $13,446 worth to each holder. Of 49 companies re- porting, $240,347,825 worth of bonds outstanding is held by 448,475 individuals, or an average of $536 to each holder. The distribution of the capital stock of 11 electric railways among men, women, and fiduciary institutions showed the following totals: Per Cent of Total Number of men stockholders 1 1,324 47.28 Number of shares held fmen) 667,750 52.42 Number of women stockholders 10,941 45.68 Number of shares held (women) 290,556 22.81 Number of fiduciary institution stockholders.. . . 1,686 7.04 Number of shares held (fiduciary institutions) .. . 315,564 24.77 Total number of stockholders 23,952 100.00 Total number of shares held 1,273,870 100.00 A comparison of the valuation and capitalization of twenty-six companies showed in summary, a valuation of $107,985 per mile of single track and a capitalizatino of $119,663. The ratio of capitalization to valuation is 110.8 per cent, or in other words, the capitalization includes 10.8 per cent of water. Other data which were furnished the commission in- cluded a report covering the wages of trainmen, one on one-man car operation, one showing the effect of in- creased rates of fare on passenger revenues as shown by the results of 125 companies and a summary of the cities in which fares have been increased and the char- acter of the change. August 30, 1919 Electric Railway Journal 439 Some Light on British Tramway Conditions Companies, Municipal and Private, Are Not Prosper- ous — A Rational System of Zone Fares Is Outlined — The Effect of Present and Proposed Fares on Congestion By WILLIAM L. MADGEN, M.I.E.E. Director British Electric Traction Company, Ltd. THERE are two criticisms which apply generally to tramways in the United Kingdom. The first is that they fail to produce an adequate financial return to their proprietors; the second is, that in many respects they fail to give the community all the benefits of which they are capable. As a matter of plain fact, we have here a simple example of cause and effect — of what happens when a community is working a strangle- hold on an industry. ' Both these criticisms apply in greater or less measure alike to the tramways owned by municipalities and to those owned by companies, and to a large extent these failures are the result of faulty legislation. This legis- lative handicap weighs with different force upon com- pany and municipal tramways, but both are affected, and the remedies have not so far been within the power of any body but Parliament itself. The immediate object of this paper is to point out some ways in which it appears to the writer that the controlling bodies have a considerable responsibility for the failures mentioned, and have it within their power to bring about better results. The first point is that tramways do not produce an adequate financial returns to their owners. It is taken first for the reason that an insufficiently remunerated industry cannot provide the community with the full service of which it is capable under more encouraging conditions. A prosperous industry can accumulate funds avail- able for the improvement and extension of its activities or can attract the necessary capital for such purposes. A starved industry cannot do this. Municipal corpora- tions can no doubt obtain loans upon favorable terms because they offer to investors the security of the rates, but they are naturally loth to increase municipal in- debtedness for the extension of services which are not likely to be remunerative unless such services are oblig- atory. Tramway companies cannot obtain capital for extensions unless they can show that their existing en- terprise is giving a reasonable return. It has to be noted that while a number of the munic- ipal tramway systems show good financial returns they are none the less starved because the bulk of their net receipts are ruthlessly appropriated in aid of the rates, instead of being utilized in the improvement of the service. This point was well taken by Mr. McElroy in his report on the Manchester Tramways, wherein he showed that the whole of the extensive improvements recommended could be financed from the tramway net receipts if the City Council would refrain from appro- priating £100,000 per annum for the benefit of the bor- ough fund. Apart from this unjustifiable diversion of tramway profits where they exist, which is not under the direct ♦Abstract of paper read at a convention of tlie Britisli Tram- ways & Light Railways Association, July 25, 1919. control of the m.anaging bodies, it remains to inquire why tramways are not more prosperous and therefore more useful to the communities which they serve. It is clear that for a service to be remunerative the Slims charged for it must cover the whole of the^costs, including capital charges, and provide a reasonable margin. It is also clear that the charges made for the service ought to be equitable, i.e., every passenger should pay his fair share of each of the items of cost involved in carrying him. In transport undertakings some of these items of the cost of service are proportional to the distance a passenger is carried. Some of them are more nearly represented by a fixed amount per pas- senger. If, therefore, we can ascertain what these costs amount to per passenger in any given case, the result gives a sum which must be exceeded by the fares charged for the shortest journey. The fares for longer journeys should be increased over this minimum in pro- portion to the distances. The results of such a scheme of fares are — first, that every passenger pays his fair share; secondly, that the longer journeys are relatively cheaper than the shorter ones ; and, thirdly, that the cost of living consequent upon residing at a greater distance from the place of employment is less than the increased cost of traveling greater distance. The last-named effect would be of immense importance in making tramways of greater service to the community. Taking "standing charges" to include all the costs of having the system equipped and ready to meet the traffic, and the "running costs" as those proportional to the passenger miles, we distinguish a figure for stand- ing charges which can, with entire fairness, be spread equally over the whole number of passengers. The equity of this as regards passengers at the minimum fares is made more apparent by the fact that, taking all the tramway systems collectively, a far larger num- ber of passengers are carried at minimum fares than at any others. This is true for at least the majority of in- dividual systems. For the tramways of the whole king- dom the Board of Trade's return for the year 1913- 1914 show that the average receipts per passenger were l.lOSd., proving that the number of passengers at one penny (the minimum fare on the majority of systems) is far in excess of those at higher fares. As an example of a particular system, Glasgow may be cited where the minimum fare of one halfpenny was paid in the year 1918-1919 by 63 per cent, of the total number of passengers. The following figures represent a reasonable division of tramways costs into a fixed charge per passenger and charges proportional to the length of journey. They are extracted from the last published Board of Trade returns, viz., for the year 1913-1914. They represent pre-war costs, and require considerable modification to 440 Electric Railway Journal Vol. 54, No. 9. make them fit present conditions. There is not suffi- cient data available for a safe estimate covering stable post-war costs of labor and material, but this does not affect the principle, and it is better to use figures repre- senting facts under known conditions than to make alterations dependent upon guess work. ANALYSIS OF TRAMWAY EXPENSES EXTRACTED FROM THE BOARD OF TRADE RETURNS FOR THE YEAR 1913-1914 Depreciation, say 4% of capital Expenditure interest at 3.03%. Permanent way Electrical equipment Engines, etc Rolling stock Building tools, etc Traction power Traffic ^jipenses Rent of offices, etc Rates and taxes Compensation and insuranc<>.. Other expenses Average per passenger. Total £ 3,239,1 13 2,389,208 815,561 171,114 20,628 1,177,431 125,769 2,137,361 4,236,026 50,064 638,537 235,971 551,094 15,787,877 1.105d. Standing % 100 100 50 80 nil nil 80 nil 5 100 100 20 100 Charges £ 3,239,113 2,389,208 407,781 136,891 100,615 211,801 50,064 638,537 47,194 551,094 Running nil nil 50 20 100 100 20 100 95 nil nil 80 nil Costs £ 407,780 34,223 20,628 1,177,431 25,154 2,137,361 4,024,225 188,777 7,772,298 0.544d. 8,015,579 0.561d. It has to be observed that these figures are an alloca- tion of the total receipts, the first two items, "deprecia- tion" and "interest," being an allocation of the net re- ceipts of £5,628,321 deduced from the returns. The operating figures given in the return are as follows : Passengers carried 3,426,473, 1 92 Car miles 354,379,672 Gross receipts £15,787,877 Working expenses £10,159,556 Net receipts £5.628,321 Capital expenditure £80,977,838 The gross profits amount to 7.03 per cent of the capital expenditure. Allowing 4 per cent for deprecia- tion, the average net yield on the capital invested was only 3.03 per cent. This result proves that the tramway work in the United Kingdom is a starved industry, for a return of 3.03 per cent is not sufficient to attract capital or to justify its expenditure, nor does it provide a margin for enterprise in improvements and extensions. The figures show that the average receipts per pas- senger were 1.105d., of which standing charges ab- sorbed 0.544d. and the running costs 0.561d. From this it follows that the basic or fixed charge per passenger to which running expenses proportional to the length of journey have to be added should exceed 0.544d. at pre-war rates, or, in other words, that in 1913-1914 every passenger carried should have paid 0.544d. pbis an amount varied according to the distance traveled. This fare would, however, have provided a yield of only 3.03 per cent on the capital, which, of course, is quite insufficient. A moderate yield is 6 per cent, amounting to 0.340d. per passenger. Taking the depreciation, etc., at 4 per cent, as before, gives 0.227d. per passenger; rent, rates, etc., as before, gives 0.090d. per passenger; and, taking 100 per cent increase over pre-war prices for the items mainly made up of labor and material belonging to this side of the account, gives 0.120d. per passenger, making a total of 0.777d. as the basic figure for standing charges, to which must be added in each case an amount per mile traveled to cover running costs. In tabular form, standing charges modified from. 1913-1914 Board of Trade returns to give a yield of 6 per cent on capital and 100 per cent increase on items effected by post-war prices follow: Total Per Passenger Depreciation, 4 per cent £3,239,113 0.227d. Interest, 6 per cent 4,858,640 0.340 Rent, rates, taxes, etc 1,286,889 0.090 Material and labor items 1,714,176 0.120 £11,098,818 0.777 It has to be observed that, taking the figures of de- preciation and those for rents, rates, taxes, etc., from the 1913-1914 returns unaltered, is an assumption too favorable to the passenger. As depreciation has to provide for replacement of equipment, it will be in- creased by the rise which has taken place in labor and materials. Taxation is also unlikely to revert to pre- war levels in any near future, so that this basic figure of 0.777d. per passenger is rather on the low side, and leaves something to be made up by the passenger-mile charge for depreciation and return on capital, and meets the criticism that a portion of these charges is in fair- ness proportional to the use made of the system by each passenger. There are no statistics in the Board of Trade returns or the accounts published by tramway undertakings of the passenger-miles, so that the running expenses per passenger-mile can only be estimated. A fair estimate of the average distance each passenger was carried in 1913-1914 for the average fare of 1.105d. is 2 miles, or a total of 6,853,000,000 passenger-miles for running costs of £8,015,579, or 0.281d. per passenger-mile. At post-war prices of labor and material, this cost will be doubled, but let us take it on the low side at 0.55d. per mile. On the bases set out then a table of fares against dis- tance would give the following figures : Standing Running Rate Charges Cost Total per Mile For 1 mile 0.77d. 0.55d. 1.32d. 1.32d. For2miles 0.77d. l.lOd. 1.87d. 0.935d. For 3 miles 0.77d. 1.65d. 2.42d. 0.806d. FDr4miles 0.77d. 2.20d. 2.97d. 0.742d. For 5 miles 0.77d. 2.75d. 3.52d. 0.704d. This table is an illustration of the plan on which an equitable fare table can be made up. It is believed to give fair average figures for United Kingdom tramways under post-war conditions, but each undertaking can determine the two basic figures — standing charges and mileage rate — from an analysis of its own accounts. Greater London is, of course, a particular case in which special factors have to be considered. It is submitted that this is a sound method of settling fares, and that it will tend to raise the tramway in- dustry, legislation permitting, from the position of be- ing starved to one in which it will be moderately pros- perous, and therefore able to attract and to expend capital in improvements and extensions. Such a result will meet the first criticism mentioned at the beginning of this paper, viz., that tramways fail to produce an adequate financial return to their proprietors, and will enable them to meet the second criticism, viz., that in many respects they fail to give the community the bene- fits of which they are capable. Of the failures to benefit the community as much as they should, by far the most important is that tramways have not brought about that spreading of the population of large and crowded industrial centers which they clearly can assist. It is admitted that they have done something in this way, but, on the other hand, it is believed that the practice of giving very low fares for short distances, which militates against reasonable finan- cial returns, has another very serious effect, in that it encourages people to continue to live at distances from August 30, 1919 Electric Railway Journal 441 their work within the radius of the minimum fares. The table of fares given above shows that on a sound basis the fare per mile would be lower for long distances than for short ones. That is, a man living two miles from his work would not pay twice as much in tramway fares as one living a mile away. Tramways Should Aid in Distributing Population It is obvious that successive rings at distances of one mile, two miles, etc., from a given center have areas proportional to their distance. Taking the rings as a mile wide, that lying between 1 and 2 miles radial dis- tance will have an area of nearly 94 square miles, or 6030 acres; that between 2 and 3 miles an area of 151 square miles nearly, or 10,050 acres; and that between 3 and 4 miles an area of nearly 22 square miles, or 14,- 070 acres; and that between 4 and 5 miles an area of 28i square miles, or 18,090 acres. With these increases of living room it is at least probable that rents will decrease with increasing distance from the center more rapidly than the annual expenditure on fares increases. There will be m.ore room to live, more garden and park space, more sunlight and fresher air. The importance of providing the poorer classes with these improvements in their living conditions is so well understood that it is unnecessary to dwell on it, but it has not been sufficiently recognized that a rapid and economical means of traveling over the greater dis- tances between house and work is essential to the pur- pose, and that it is best alforded by tramways up to at least 6 or 7 miles from the industrial centers. The most serious social fault of the systems of very low fares for short distances is that they discourage families from moving outward. It is at least partly due to this effect of low fares that the central districts of some of our large cities, such as Glasgow, have not been relieved of their over- crowded slums to anything like the extent which might have been expected from the operation of the very effi- cient tramways there. As above explained, this low- fare system, charges the short-distance passenger less and the long-distance passenger more than his fair share of the standing charges, and is therefore a direct handicap upon the spreading of the overcrowded popu- lation. This is not because Glasgow has not made tram- way extensions to long distances from the center. It has done so in a few directions, but only seven of these spurs go beyond three miles from the central districts. Similar conditions as to fares and extensions prevail around other crowded centers, and the only reasons for mentioning Glasgow are that the corporation has made a special feature of halfpenny fares, keeping them in operation throughout the war, and that 14 per cent of the population are reputed to live in one-roomed "houses." If the corporation had perceived the relation of tramway fares to overcrowding, there can be little doubt that it would have arranged them to encourage the spreading of the population rather than to dis- courage it. Most of us are familiar with the consideration which I might mention here that the crowding of cars by minimum fare passengers has a tendency to drive away those wishing to travel longer distances and to encour- age competitive services. There are two obvious difficulties against setting up a rational fare system. The first is that tramway fares are generally limited to a maximum of one penny per mile, and any sound system — at present costs — must charge more than a penny for the first mile. Besides this general statutory obstacle, there are numerous provisions in special acts and orders, agree- ments between companies and local authorities, and the like, setting out scales of fares or maximum fares which cannot be reconciled with the principles laid down. An entirely different set of circumstances has also had a serious influence upon the development of im- proved transport facilities by means of tramways and light railways. The ratable value of a town is in some degree a measure of the remuneration paid to some of its principal officials and of the personal prosperity of the trading classes, of which with a sprinkling of pro- fessional men the Council itself is largely composed. Now we must not regard these gentlemen as muni- cipal Pharaohs who consciously and intentionally "will not let the people go," nor can we believe that they impose bad fare systems upon the tramways in order to keep the population within range for business pur- poses or to promote congestion ; but we may urge that the community should be no longer subject to the "ratable value" fetish which tends to provide particular attractions for the centers of population and an in- fluence adverse to the provision of adequate housing arrangements_ in more healthy surroundings. The working classes have been misled into the idea that the halfpenny tram fare is an advantage to them, but as a cold and cruel fact the conditions which it helps to foster are the very worst in all respects for them- selves and their children. There is very strong evidence that the contrast be- tween the sheer discomfort of the crowded working class quarters and the comfortable homes of those who are able to live in decency and comfort — though they may derive their incomes from the same industries as the workmen — is a chronic and growing cause of the un- fortunate spirit which manifests itself in labor unrest. Of the many manifestations of this spirit during the war, it was noticeable that the worst and most per- sistent cases occurred precisely in those districts where overcrowding is most prevalent. What labor needs above all things is to improve its living conditions, and one of the most effective means to that end is to spread the houses outside the indus- trial areas in bright and pleasant surroundings, where the working man and his family can enjoy their allot- ments or other favored occupations of their increased daylight hours and leisure time. To make this pos- sible the lowest possible fares for the longer distances, and ample transport facilities for those districts are essential. Both these conditions will be favored by abolishing non-paying short distance fares, graduating all fares in an equitable way, and making the tramways sufficiently remunerative to induce an enterprising spirit in the management. It is obvious, therefore, that a campaign of education and propaganda among the authorities concerned in favor of sound fare tables and a more tolerant spirit is urgently necessary, and the tramway interests should take up this work with energy. There is another difficulty about the application of rational ideas to tables of fares, viz., the coinage. Re- ferring to the table of rational fares, it is seen that for the first 2 miles the nearest coins include farthings, and, even so the difference between the theoretical fare and the nearest coin is a somewhat large percentage Electric Railway Journal Vol. 54, No. 9 of the total. Farthings are not popular. The penny- has too small a value for the minimum fare, because the standing charge item alone is nearly 8d., and the length of ride which could be given for the 2d. balance is too small for a stage. The writer strongly advocates the adoption of the decimal system of coinage as approved by the Associated Chamber of Commerce, the Institute of Bankers, the Decimal Association and by numerous other bodies, in- cluding your Association. This system divides the £1 into 1,000 mils, and includes the provision of a 5 mil nickel coin of the value of ten to the shilling. This is equivalent to 1.2d., and would suit a rational system of fares very well. The value is a little lower for the mile distance as set out above, but that table is only an illustration based on collective figures. The actual length of the stages will in every case have to be ad- justed to the circumstances and costs of the particular system. There is no need to keep to even miles in making this adjustment. As it is, the lengths of fare stages are rarely based on even miles. They vary on different routes on the same system as the stages are in practice defined by traffic points, junctions, etc. There is no more difficulty in fitting the stages to the coins of a decimal system than to the halfpennies and pennies now in use. Five mils is a better starting .point than a penny or the near equivalent four mils, and there are very strong reasons in other directions for making the coin of the slightly higher value. Electric Railway Employees Own Half- Million Dollar Building in Chicago THE accompanying illustration shows the carmen's building in Chicago owned by Local Division 241 of the Amalgamated Association of Street & Electric Railway Employees of America. This local comprises HEADQUARTERS FOR TRACTION EMPLOYEES IN CHICAGO the employees of the surface lines. The Elevated Rail- ways' men, who have no financial interest in the build- ing, have offices in it. The building is located on Ash- land Boulevard and Van Buren Street, and is 100 ft. x 180 ft. in plan. It contains an auditorium with a seating capacity of 4000. The Union which owns the building comprises about 10,000 members, including carhouse workers (truckmen and cleaners), trainmen, switchmen, watchmen, etc. Some Observations on Signal Maintenance The Author Urges the Necessity for a Signal-Main- tenance Department on Any Property Where Automatic Signals Are Used By Carl P. Nachod President Nachod Signal Company, Inc., Louisville, Ky. FROM a year's personal observation of the way in which automatic signals are maintained on electric railways I am convinced that the operating managers of many railways unwittingly hamper their service seriously, as well as injure the reputation of their signals, by not providing proper signal maintenance. In contrast, some few roads stand out as shining ex- amples of good practice in this line and enjoy the excellent service that should be attained by all. It is false economy for electric railways to spend large sums for automatic signals and then to neglect to provide properly for their maintenance. It is to be hoped that eventually the signals on electric lines will receive maintenance care of the same standard as prevails on steam railroads, and this is a reasonable expectation because at one time the steam roads treated their automatic signals with indifference also. Signals do not require an abnormal amount of atten- tion, but they do need periodical inspection and prompt attention when out of order. A minor trouble, if neglected, will often produce severe damage to the signal because the latter is connected to the relatively high-voltage trolley system. Too many railways are not getting good signal service and many are satisfied with indifferent results. Very often when the signals are in bad shape this condition is due to the passing of responsibility from one department to another. The creation of a signal department would concentrate this responsibility. In- stallation and maintenance of signals is usually allotted to the line department merely because the signals are connected to the overhead lines; but signal maintenance and repair require a skill in handling fine mechanism which the average lineman does not possess. The char- acteristics and training of the lineman are not such, in general, as to enable him to acquire this knowledge easily, and he cannot read blueprints or trace out the somewhat complicated signal circuits. Few lineman can make intelligent tests on signals to locate trouble, and in "hunting" trouble most of them expose the elements of the signals in succession or at random until some part shows by its appearance that it is damaged. This procedure is lengthy and uncertain, as many parts do not alv;ays show defects to the eye. In addition some part is liable to be put out of adjustment by unneces- sary disturbance. With the signals cared for in the line department, and not understood properly, a lack of confidence will result. The line foreman is apt to blame the signals and not the workman, and will do nothing to remedy conditions. At the head of the signal department there should be a man with a natural aptitude for this work, one who has been trained by working in the testing and assembling department of a signal-manufacturing com- pany as an employee of the signal company, or one who has been sent to the factory by the railway company for instruction. This man should have a helper or under- study. Even a small railway has a man in the electrical August 30, 1919 Electric Railway Journal 443 department or at work on telephone circuits who is "good timber" for signal work. The signal department should be provided with a well-lighted work bench, with small tools and testing facilities. The last named should preferably include a miniature trolley or track plan already wired up, so that the signal leads can be connected directly to the ter- minals. Such an arrangement can be used not only to demonstrate the signals to others but as a basis for study. (See Electric Railway Journal, March 22, 1919, page 572.) A road having more than three or • four blocks of signals should have at least one spare signal on hand, or preferably one block of two signals complete. Other parts should be kept in stock also, so that home-made parts will not have to be used. In cases where electric railways have not considered it necessary to provide a signal-maintenance depart- ment, the manufacturers have endeavored to show them how to get the best results from their signals under existing conditions by furnishing a skilled service man for the purpose. Such a service man finds that the maintenance of signals is often regarded as a minor matter, and the manager is not familiar with the way in which the signals are operating. The superintendent of transportation is apt to say that the signals are not giving any trouble; in fact, this is the general reply. To this statement the service man replies: "Perhaps the signals are all right now, but since I have come all the way for the purpose, it would be to your interest to have me inspect them, note their condition and point out ways of preventing future trouble." On being told to do so, he may find that the signals have been allowed to fall into such condition that only with his help, together with the co-operation of the railway, can they be put back into shape again. Such co-operation is difficult to secure, and it must extend all the way from the manager down to the maintainer. An in- different official can block the procedure. Sometimes such co-operation cannot be obtained, and service work stops where it began. Sometimes after an inspection a dozen reasons can be pointed out as to why the best results are not obtained, but these do not seem to awake interest in betterment. Obviously, the signal-main- tenance work should come under the transportation department, as that department is most interested in signal operation. The above facts are pointed out in the belief that a clear presentation of them to the progressive and in- telligent railway oflScial will be appreciated and will result in improvement in the desired line. It is proposed in a later article to tell how the signals on a certain road, having fallen into an evil estate, were put into another department by co-operation, and by means of hard work were raised to a high standard of operating •condition. Revision of National Electrical Code The chairman of the Electrical Committee of the Na- tional Fire Protection Association has announced the appointment of several committees to consider various questions in anticipation of the 1920 code. The stand- ing committee on cars and railways consists of M. Schreiber, chairman; R. C. Bird and Ralph Sweetland. The American Electric Railway Engineering Associa- tion has appointed two committees to co-operate with this standing committee on the revision of rules on car- house wiring and car wiring for more than 600 volts. Letter to the Editors More About That Discouraged Railway Official Brooklyn, N. Y., Aug. 15, 1919. To THE Editors : I have noted the editorial comment printed v.'ith my letter of July 29, in which you point out that the man- ager mentioned by me should have tried all possible expedients to overcome the obstacles to successful oper- ation before giving up. I reported the interview with this manager rather fully because it brought to my mind a thought new to me, that is, the responsibility of the public, through the rate-making bodies, for the morale of the officers and employees of public utility companies. It might be interesting to digress on the question of what those officers should do after they have used all means known to them to make both ends meet on the income account. Even then they should avoid discouragement as far as possible, but can they not be excused for accepting a call to service under more favorable circumstances, and so leaving open a position the difficulties of which could perhaps be better met by a new man? The regular readers of the Electric Railway Journal are well informed as to the various expedients which have been devised to increase revenues and de- crease operating expenses. The public is inclined to think that these expedients have no limit under any circumstances. There is urgent need of public educa- tion in the fundamentals of economies and finance, including the function of good credit. The old proverb, "The destruction of the poor is their poverty," seems to be particularly applicable to present-day public utility companies. If the unfortunate companies only had earnings enough to give them credit they might make capital expenditures which would result in new econ- omies of operation. George H. Johnson A New Development in Japanning DR. W. P. DAVEY, of the General Electric research laboratory, describes in the current issue of the General Electric Review a new form of japan. It comprises a base, consisting, say, of an asphalt and an oil such as linseed, very finely subdivided and emulsified in water. The water japan was developed to eliminate fire and accident hazard, particularly, in "bak- ing on" coatings of japan in which volatile and inflam- mable solvents are employed. The new japan is less viscous than ordinary japan, so that it cannot be applied by dipping in the usual manner. Howeved, special methods of dipping have been devised which accomplish the same purpose. These are termed the "electric dip" and the "hot dip." The electric dip operates on the principle that elec- trically charged bodies are carried along by an electric current when in suspension in a liquid. The particles of the base (which are only 0.000010 in. in diameter) carry negative charges, hence when an object to be coated is attached to the positive terminal of a bath and 444 Electric Railway Journal Vol. 54, No. 9 current is sent through it the particles are deposited on the object. As in a metal-plating bath the material tends to spread uniformly over the surface to be coated. The dipping requires about two and one-half seconds for a satisfactory coat and the current required is about 0.8 amp. per square inch. The coating is then baked in the usual manner. This process is adapted to small odd jobs of japanning rather than to quantity produc- tion. The hot-dip process consists in heating the objects which are to be coated to about 500 deg. Fahr., cooling them 100 deg., and plunging them into cold water japan. Woven wire baskets are convenient for holding them for this purpose. After being kept for about ten seconds in the japan the objects are drained for thirty seconds and transferred to the baking oven. The preheating was originally adopted to remove the grease and oil from metal pieces, but experience showed that the plunging of the heated metal at a temperature from 250 to 400 deg. Fahr. produces an effect similar to that which is produced by electro-deposition in the electric- dip method. Association News ATIjANTIC city convention, OCT. 6 TO 10 standards Committee Plans Exhibit at Convention * TWO-DAY meeting of the Engineering Association j^committee on standards was held at association headquarters on Aug. 25 and 26. Of the committee those in attendance were: H. H. Adams^ Chicago, 111., chairman; E. R. Hill, New York City; C. G. Keen, Phil- adelphia, Pa.; H. H. Norris, New York City; E. D. Priest, Schenectady, N. Y.; Martin Schreiber, Newark, N. J.; A. B. Stitzer, New York City; N. W. Storer, Pittsburgh, Pa.; N. B. Trist, Pittsburgh, Pa. Other interested members who were present for part of the meeting included E. B. Burritt, secretary of the associa- tion ; C. L. Cadle and J. H. Libbey of the power distribu- tion committee; Daniel Durie, of the equipment com- mittee, and J. W. Welsh, special engineer. In addition to consideration of the recommendations as to standards, recommended practices and miscellane- ous practices contained in committee reports, the com- mittee discussed ways and means for increasing the use of the standards. A decision was reached to endeavor to have at the Atlantic City convention a tangible ex- hibit of the results of the Engineering Association com- mittees' work, and plans to this end were immediately formulated. At the convention every available means will be employed to impress upon the men in attendance the urgency of adopting association standards as a meas- ure of economy in construction and maintenance. In its routine procedure the committee approved for adoption as standards several gages for use in check- ing car wheels, and specification of gaging points and terms in connection therewith. The same action was taken in reference to a specification for bolted frogs and steam railroad crossings, and to a revised form of rules for carhouse wiring which had been prepared by a committee in co-operation with the National Fire Pro- tection Association. The Aug. 26 sessions of the meeting were taken up largely with the recommendations of the power distri- bution committee. A revision of the standard specifi- cation for 750-volt overhead line material was approved, and a specification for electrical conduit construction, to replace one included in 1909 in list of miscellaneous prac- tices, was approved for such substitution. The committee expressed itself as pleased with the quality of the work submitted to it and pledged itself to a renewed eff'ort to "sell" the results of this and pre- vious work to the company members of the association and to others who should buy it. Committee on Mail Pay Meets THE committee on compensation for carrying United States mail, consisting of V. S. Curtis, New Haven, who acted as temporary chairman ; W. S. Rodger, De- troit; S. S. Ashbaugh, New York; L. H. Palmer, Balti- more, and J. W. Welsh, New York, held a meeting at association headquarters to consider plans for the prep- aration of a brief which Mr. Ashbaugh, counsel for the association, will present before the Interstate Commerce Commission. The brief will consist of four parts, as follows: (1) Statements pertaining to the legal phases and issues involved in carrying mail on trolley cars. (2) An ab- stract of the 3000 pages of testimony presented at the recently held regional hearings, which abstract will be prepared by a sub-committee consisting of Messrs. Pal- mer and Curtis, in the form of a topical brief covering all subjects on which testimony was presented. (3) Consideration of the operating methods in handling mail on electric railways, especially the portions of ser- vice that may be recommended for elimination, such as carrying parcel post on passenger cars, side and term- inal service required of car crews. (4) Determination of specific rates applicable to various kinds of service performed. It is planned to submit by letter to all member companies the proposed rates so that in case any companies feel dissatisfied, they can present individual briefs stating rates that would be applicable for the service performed in their respective individual cases. Such briefs must be filed with the Interstate Commerce Commission not later than Oct. 15. The committee plans to hold another meeting within the next two weeks to prepare a full report covering the entire matter for presentation to the Atlantic City con- vention. More Convention Exhibitors DIRECTOR OF EXHIBITS WELLS reports that the following have been assigned exhibit space in addition to those listed in the Aug. 2 and Aug. 16 issues of this paper: American Engineering Company. Automatic Reclosing Circuit Breaker Company. Dayton Mechanical Tie Company. Differential Car Company. Fire Gun Manufacturing Company. National Conduit & Cable Company. Republic Engineers, Inc. These seven exhibitors bring the grand total up to 129, a very encouraging number at this date. Obviously the success of the exhibit feature is now assured. Mr. Wells will appreciate prompt return by exhibitors of the forms recently sent out covering requirements for furniture, flowers, etc. News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION PERSONAL MENTION Service Withdrawn Pittsburgh Railways Unable to Resume Service on Account of Strike Disorder A series of riots, in which several persons were injured, blocked the first attempt, on Monday, Aug. 25, of the re- ceivers of the Pittsburgh (Pa.) Rail- ways to break the strike which has had the lines of that company tied up since midnight on Aug. 14. Protection Inadequate Absolute failure of municipal author- ities to provide adequate police protec- tion was given by the receivers as the reason for their inability to start serv- ice. No attempt was made to resume op- eration on Aug. 26, the receivers post- poning further efforts until police ar- rangements could be strengthened, according to a statement by Mayor E. V. Babcock. It was planned to send cars out again on Aug. 27. In the meantime. Division 85 has been disowned by the Amalgamated Association for striking in violation of a contract entered into last May, by which it pledged itself to accept the de- cision of the War Labor Board in the wage decision then pending. As was related in the Electric Railw^ay Jour- nal of Aug. 23, the board awarded the men an advance of 6 cents an hour, in- stead of the 12-cent raise they had asked. In fact. Division 85 expelled itself from the union by its refusal, upon a referendum vote on Aug. 21, to return to work and carry out its contract, ac- cording to President W. D. Mahon, in a telegram to P. J. McGrath, secretary of the local union, an international vice-president and one of the leaders of the strike. This action by President Mahon was taken up by the interna- tional executive committee in Detroit on Monday and although no statement would be- made by international offi- cials, it was understood that his stand was to be upheld. What the further plans of the Amalgamated Association may be had not been developed late on Aug. 26. Receivers State Their Policy Following the men's referendum vote on Aug. 21 in which they refused to re- turn to work under the War Labor Board award, the receivers announced that they proposed to resume service without an agreement with the union. They declared that they would bring no operatives in from outside Pitts- burgh. Their hope then, they said, was that enough of their own striking em- ployees would return to work to start the cars and that the rest would fall in shortly, leaving the strike to die for lack of strikers. No attempt was made to send any cars out on Monday morning. Shortly after noon, however, a sand car was run around the carhouse loop. Two or three other cars followed, but the at- tempt to operate had to be abandoned. Monday night the receivers issued a statement calling attention to the im- poteQce of the city administration in affording protection for their opera- tives. Tuesday was a day of innumer- able conferences about the City Hall. In the afternoon it was decided that sev- eral hundred city firemen would be added to the police force for Wednes- day's resumption of operations. Prompt- ly the firemen called a meeting at which to vote on a motion to strike. General opinion in Pittsburgh is that eventually State troopers will have to be called in to handle the situation, for both the receivers and the men appear to be firm in their resolve not to yield. The city police showed on Monday that they are temperamentally unfitted for such an emergency as exists. Minneapolis Increases Wages Trainmen of the Twin City Lines, Minneapolis, Minn., are receiving a wage advance of 5 cents an hour. The increase was eft'ective on Aug. 20 fol- lowing a series of conferences between officials of the company and members of the trainmen's co-operative committee from the six stations in the Twin Cities. Other departments are raised propor- tionately. Horace Lowry, president of the company, said in part: Following ten days consideration by the management and directors, the company to-day announced an increase in wages to its employees, which will mean added annual cost of operation in all departments of the Twin City Lines of approximately $600,000 per year. This increase in wages was granted be- cause general conditions are so unsettled all over the country that an increase seemed necessary until conditions become more normal. In making this increase in its operating expenses, the management was influenced by its belief that the people of the Twin Cities will, without unnecessary loss of time, approve a service-at-cost agreement so that the company may soon be able to furnish the public with the service required. Until such ineasure of relief Is in effect between the company and the city, this added burden of expense will be a severe strain upon the company's ability to furnish service, and emphasizes the necessity — in the public interest — of the pending negotia- tions with the Twin Cities being brought to a successful issue at the earliest possible date. The additional 5 cents an hour will be paid to regular trainmen. Extra trainmen are guaranteed $3.50 a day, a daily increase of 50 cents. Regular trainmen have been receiving 40, 43 and 45 cents an hour, depending upon experience and length of service. Boston Elevated Affairs Legislative Commission at Work — Company Not Ready for Zone Fares — Five-Cent Line Run The special commission on street railways appointed by Governor Cool- idge of Massachusetts to investigate financial conditions opened its hearings at Boston on Aug. 26. Chairman Wash- burn presided, and the entire session was devoted to an inquiry into the af- fairs of the Boston Elevated Railway. Chairman Jackson of the company's board of public trustees was the prin- cipal witness. He stated that there is no likelihood that fares will ever have to be raised above 10 cents on the Bos- ton Elevated system; that if all the dividends now paid to the stockholders were to be eliminated, there would be a reduction in fares of less than one- half a cent; that the increase in wages to the carmen as a result of the recent strike adds $2,600,000 to the annual financial burden of the company; that the cost of the strike to the company was about $50,000 a day or $200,000 for its duration; and that practically every fare paid to a jitney in Boston must be paid back by the city to the company in making up the cost of serv- ice deficit below electric railway earn- ings. Relief might be obtained, the speaker said, by the remission of corporation taxes and subway rentals, together with the purchase by the State of the Cambridge subway. The trustees have given a zone system very careful study, but have not yet reached the point of trying it. Mr. Jackson said that he questioned whether fares could be re- duced in future below 8 cents. The 10-cent fare has not yet been in effect long enough to warrant conclu- sions as to its practicability, but each week the trustees receive some addi- tional hope that it will eventually yield the necessary revenue. If the Cambridge subway should be purchased by the State, the prospects of an 8-cent fare would brighten considera- bly. Relief from the burdens of high- way maintenance, the witness said, is also most important. On Aug. 23 an experimental 5-cent fare line was established between Franklin Street in the retail district and the North Station. No transfers are given on this line, which covers a round-trip route about 2 miles long, the one-way fare being a nickel. So far results have been rather disappoint- ing. The trustees are considering the establishment of another 5-cent trial line, possibly between the North and South stations. The hearing was con- tinued until the next day. 446 Electric Railway Journal Vol. 54, No. 9 Toledo Traction Talk Ouster Ordinance Suspended, Company Suggests Service-at-Cost Settlement The situation in regard to the rail- way department of the Toledo Rail- ways & Light Company is clearing. The action of the City Council in pas- sing an ordinance ordering the railway to vacate the streets brought the long- standing franchise dispute to a focus. The company had made all prepara- tions to comply with the terras of the ordinance and would have taken the cars from the streets on the night of July 31, but the citizens of Toledo, realizing what complete cessation of the service would mean to the city, circulated petitions demanding a refer- endum on the ordinance. More than 10,000 signatures were obtained on the first day the referendum petitions were circulated, and filing of the petitions automatically suspended operation of the ouster ordinance. Had the opera- tion of the ordinance not been suspended by the filing of the referen- dum petitions, Toledo would have been without railway transportation after Aug. 1. Measure Before Voters on Nov. 4 Frank R. Coates, president of the Toledo Railways & Light Company, has presented to the City Council copies of the proposition of the company for a new franchise ordinance, adoption of which would settle the franchise con- troversy. This ordinance is now before Council, and steps will be taken to place it before the voters of the city for adoption on Nov. 4. President Coates in his letter to the City Council said that if the proposition the com- pany submitted was not found accept- able, the company would be willing to accept any fair and reasonable plan the city may propose. President Coates also said in his letter to the Council that if the city and the company were unable to agree on a plan, the company would initiate the ordinance it had pre- sented, at the election on Nov. 4. He asked that the City Council make all possible speed so that the company might know by Sept. 1 whether it would be necessary to circulate petitions to initiate the ordinance. The ordinance presented to the Coun- cil by the company aims to provide rail- way service at cost, including a fair return on the investment made by the company in the property. The ordi- nance provides for a twenty-five year franchise, and also contemplates a scientific rerouting, which would in- clude a crosstown line. Other provisions of the ordinance in- clude the following: The motive power shall be electricity or such other motive power as the Council may approve. The company is to maintain the pavement between the rails and 1 ft. outside. It must have at least 300 cars of modern design. The right is reserved to the city to pre- scribe service, schedules, routes and char- acter of cars. The city shall name a street railway commissioner, who shall keep him- self informed and advise the Council as to service, cost and rate of fare and com- pany's accounts. The company shall pay the salary of the commissioner, as fixed by the Council, but not to exceed $10,000 a year. Differenced between the city and company shall be settled by arbitration. In the case of non- agreement upon a third arbitrator, the person who is the federal district judge of the United States District Court, Western Division of Ohio, shall appoint the third arbitrator. The company shall pay the expenses of arbitration. A decision must be reached within thirty days. The decision of the arbitrators shall be final. The company's books shall be open to inspection by the city at all reasonable times. A valuation of the company's property shall be made by three arbitrators chosen in the same way as other arbitrators pro- vided for, TlTe decision of any two of such arbitrators .^^hall be binding upon the city and the company. The arbitrators shall not take into con- sideration tlie amount of bonds, stocks and securities of the corporation or fran- chise value or rights, but shall determine the amount which would be renuirfd to create the business and property anew, and from this amount they shall deduct a sum sufRcient to put the property in first-class operating condition and the remainder shall Employees of the Des Moines (la.) City Railway returned to their cars on Aug. 20 after having been on strike since Aug. 13. The settlement was the result of a compromise secured by busi- ness men of the city and the union of- ficials. The settlement was arranged on the following basis: The men agreed to return to work if the Council passed an ordinance submitting a 6-cent fare to the people; secondly, that Judge Wade of the Federal Court should order the issuance of receiver's cer- tificates to cover $105,000 of back pay. The first condition was met imme- diately by the passing of an ordinance by the City Council providing for put- ting the 6-cent fare before the people on Sept. 22. The ordinance as passed by the Coun- cil provides that the voters shall decide upon the collection of a 6-cent fare effective immediately after the election and continuing until the increased pay and the back pay have been paid. The fund raised by this additional fare is to be kept intact and used only for the payment of the rnen under the scale provided in the arbitration award. Upon the request of both sides to the controversy Judge Wade returned to Des Moines for a hearing on the settle- ment and after the case had been pre- sented ordered that "the receivers shall forthwith, as soon as certificates are issued to the employees, pay upon each certificate one-third of the amount thereof, such payment to be indorsed upon the certificates at the time of pay- ment and the money to make such pay- ments to be taken from such other funds as may be on hand, the same to be in the nature of a loan from such be the valuation and shall be the initial capital value of the system. Arbitrators will also determine what would be a reasonable rate of return to the company, but in no event shall it be less than 6 per cent. To the capital value shall be added the cost of any extensions, bet- terments and permanent improvements. The fare will be on a sliding scale basis to be determined by an equalizing fund consisting of the earnings above the oper- ating expenses and the maintenance, de- preciation and renewal and allowances. Whenever the balance in the equalizing fund shall be more than 5 per cent of the capital value by an amount equal to 2 per cent of the capital value, the fare shall be lowered to the next lower rate. Either the city or the company may give notice of a change in fare not in accordance with the schedule, and if the two parties cannot agree, the question of the rate of fare will be submitted to arbitration. In case the city purchases the property, the company agrees that it will furnish electric current at a rate to be agreed upon, or if not agreed upon, to be fixed by the Ohio Public Utilities Commission. The city must give at least six months notice of its intention to purchase the railroad system. The price sliall be the capital value of the company as provided in the ordinance. The company shall have sole control of better- ment extension and pprman»nt improvement whenever the unexpired term of the grant shall be less than fifteen years, and, at that time, may charg'e such a rate of fare as will provide a sufficient reserve to pro- vide an amortization fund equal to capital value of property less the amount of the salvage value of the property. fund and to be reimbursed from the advance fare of the ordinance when adopted." Judge Wade also wrote into his order that a further consideration of addi- tional payment would be deferred until Sept. 10, at which time he would order further advances if he was morally satisfied that the ordinance would be adopted by a vote of the people. This order did not satisfy the union men, who demanded that the full amount of the certificates be paid at once. They threatened another walk- out if this condition was not met by Aug. 25. A citizens' committee and officials of the State fair, which is being held in Des Moines, conferred on Sunday with the union executive committee and finally a mass meeting of the union voted overwhelmingly to accept the proposition made by the citizens' com- mittee. This proposition offers the men all receipts of the company between Aug. 1 and Sept. 22, over and above the actual operating expenses and specifies that in figuring the expenses taxes and depreciation are not to be considered. Earnings will be paid to the men on second certificates. The receipts for the month of August are to be paid on Sept. 5 and the receipts up to Sept. 22 to be paid Sept. 24. The money thus derived to be applied pro rata upon the certificates. The initial third pay- ment of the certificates ordered by Judge Wade is to be made on Aug. 26. In his ruling upon the original set- tlement proposed Judge Wade said: At the present stage, I cannot assume the moral responsibility of ordering the payment of the back pay in full, but as the evidence of good faith and to give some aid to the men who have waited so long, I Des Moines Strike Settled Council Agrees to Put Matter of Increased Fares Before the Public August 30, 1919 Electric Railway Journal 447 am making an order that the receivers shall pay forthwith as soon as receiver's certificates are made out one-third of tlie back pay. It will no doubt be a surprise to the people of Des Moines to know that in order to make this one-third payment part of it will have to be taken from funds on hand to meet the payment of $63,000 taxes due on Oct. 1, and this is true after the collection of the balance due from the Interurban Railway and other available accounts. I make special appeal in behalf of these men to the newspapers of the city to get the facts before the people. There Is no mystery about the financial condition of the railway. The figures are on file with the city and the receivers will aid in every way in getting the facts to those interested — and this means every citizen in Des Moines. Upon hearing of the action of the union in threatening another walkout on the morning of Aug. 25 in case the full amount of the certificates was not made Judge Wade ordered the federal clerk to withhold action on his original order for the one-third payment. Ohio Electric Strike Settled After a strike lasting more than a week a settlement was reached between the Ohio Electric Railway and its plat- form employees at a conference held in Springfield on Aug. 23. The men had demanded an increase of 10 cents an hour over their old schedule, but they accepted 5 cents an hour. The company had oflfered an increase of 3 cents. This was refused at the time the men walked out. After the strike became effective, the officers of the union announced that they were willing to arbitrate and inti- mated that they might be willing to ac- cept 5 cents instead of 10. They per- sisted, however, in their claim that the company's offer of 3 cents was entirely inadequate. Under the terms of the settlement the union agreed to drop the employees other than trainmen from the organiza- tion. They may form a new organiza- tion later. The company has agreed to settle with them at the prevailing wages. Aurora-Elgin Strike Settled The Aurora, Elgin & Chicago Rail- road strike, which tied up transporta- tion on that system for more than three weeks and deprived a number of cities of light and power, was called off at noon on Aug. 21 by practically a unan- imous vote of the 600 employees. The striking employees have accepted a temporary increase of 5 cents an hour with the understanding that if the situ- ation warrants it, a further increase will be granted by Judge Evan Evans of the United States District Court in Chicago. In offering the men a maximum in- crease of 5 cents an hour E. C. Faber, general manager for the receiver, esti- mated an 8-cent fare in Aurora and El- gin and slight increases in the inter- urban fares would provide for an in- crease in wages of about 4 cents an hour. It is understood that the com- pany will file an application with the Public Service Commission for an in- crease in rates. Westchester Strike Settled Service on the New York, West- chester & Boston Railway, which had been tied up for five days through a strike of the motormen and conductors, was resumed on the morning of Aug. 27. A settlement was effected on Aug. 26 after negotiations lasting continu- ously for more than thirty hours. The men struck because their demand for the same wages that are paid to similar classes of labor on the federalized steam railroads was refused. The men won the rate of pay they asked for, but they conceded to the company a nine-hour day instead of the eight-hour day. On Aug. 17 the com- pany advanced the rate of pay 25 per cent, but the men were not satisfied and demanded steam railroad rates, which the company said it could not pay because it would mean an addi- tional increase of 30 per cent. The men denied this and during the con- ference statisticians of the Public Serv- ice Commission submitted a table showing that the increase asked for would amount to only about 9 per cent, which, with the 25 per cent already granted, would mean an advance of about 34 per cent, which many of the conferees deemed reasonable. L. S. Miller, president of the Westchester line, based his refusal of the men's de- mands on the belief that the increase they demanded would amount to 30 per cent. When he learned that it meant only an increase of approximately 9 per cent his attitude became concili- atory. The strike situation was com- plicated by threats of the men against the New York, New Haven & Hartford Railroad, by which the Westchester line is controlled. East St. Louis Strike Ended The employees of the East St. Louis & Suburban Railway, East St. Louis, 111., went on strike on Aug. 15. The strike was precipitated over dis- satisfaction by the men Vith the War Labor Board increase of 12 per cent. Service was resumed on Sunday morn- ing, Aug. 24. During the time between Aug. 15 and Aug. 24 no attempt was made to operate cars, and practically no discussion was entered into on the part of the company as to wages or rates, but the pertinent issue as to the breaking of the contract was kept most prominent. Following the declaration of the strike, W. H. Sawyer, president of the East St. Louis and Alton companies, telegraphed President Mahon of the Amalgamated reviewing the issues in- volved. Mr. Mahon later ordered the men back to work under threat of tak- ing away their charter. The men returned without any prom- ise on the part of the management other than that contained in the com- pany's telegram to Mr. Mahon. The company felt that it had no option ex- cept to take the ground that it did, making no further agreement or prom- ise with men who were then breaking an agreement. It was explained by the company in the telegram to Mr. Mahon that it would again agree to abide by the re- sults of the War Labor Board award, and if the men promptly returned to work and continued in the future to re- spect their contract the company would further agree that after the full War Labor Board award was received, if it was unsatisfactory to either party the management would sit in conference with the Amalgamated members alone or with representatives of the public included, in order that there might be a full inquiry as to whether any in- justice had been done, and if an injus- tice had been done, as to what further steps, if any, were practicable. Mr. Huff Raps the Amalgamated In announcing the increase of 25 per cent in the wages of the trainmen of the Third Avenue Railway, New York, N. Y., to which brief reference is made in this paper for Aug. 23. Slaughter W. Huff, president of the company, made the following statement: In our notice to you advising you of an increase of wages of approximately 10 per cent, effective on Aug. 13, we told you that we were unwilling that you should be paid less than the prevailing rate of wages in the immediate vicinity ; and complying with this assurance to you, your rate will again be increased, so as to make a total in- crease within the last month of approxi- mately 25 per cent, including starters, in- spectors, switchmen and plowmen. This increase will become effective as of the date of the former 10 per cent increase, namely. Aug. 13, Iftlfl. The financial condition of this system is not such as to justify such a large increase, and without an increase in fare it is simply a question of how long we will be able to meet these largely increased expenses be- fore disaster overtakes the system. I believe that the large majority of our men are satisfied with their pay and work- ing conditions, and do not wish any inter- ference from the outside with their rela- tions with the management of the system, and particularly in view of your past expe- rience with the Amalgamated Association, you are not willing that they should again take possession of you and use you for their own selfish purposes in the great gamble with the New York transit situation start a strike almost immediately after it that they have been engaged in for the last several years. Since they violated their contract with the companies of this system and called you out in a sympathetic strike three years ago and threw you down, you have re- mained independent of the various brother- hoods, both national and local, that have entered into the transit situation. There seems to be ample evidence that during that time a spirit of co-operation and con- fidence has been developing between the management of this system and its em- ployees, and if this has been developed to a point where you can trust the manage- ment to give you a square deal you do not need the Amalgamated Association or any other outside influence to control your course. As you well know, the policy of the Amalgamated Association has been to gets control of the employees of a system, and in your case they are even now threatening to call a strike before they get control of you. or even before they get a representation among you. trusting to the disorderly element in the community to force you from your positions and into their control. Tou can rest assured that the management of this system will stand with you in your efforts to keep out these professional agitators, and dismiss froTji the service those who ally themselves with them. On Aug. 26 Justice Guy in the Su- preme Court postponed until Sept. 8 ^the hearing on the injunction and re- straining order against Patrick J. Shea and others to prevent them from inter- fering with the management and con- duct of the Third Avenue Railway. 448 Electric Railway Journal Vol 54, No. y Everybody Censured The local transit committee of the Brooklyn (N. Y.) Chamber of Com- merce reported to the membership on Aug. 14 on the Brooklyn Rapid Transit strike situation. It is the opinion of the committee, of which Herman A. Metz, former comptroller of the city, and himself a large employer of labor, is chairman, that the attempt by Re- ceiver Garrison of the company "to deny the right of collective bargaining * * was of itself a challenge from which the strike was natural and to he expected." The committee says that Mr. Garrison "took an arbitrary stand." The chamber also sees an error of judgment on the part of Mayor Hylan. The committee says that "for the chief magistrate of the city to take a position which could not by any chance be in- terpreted as neutral to disorder, places directly the responsibility for the dis- order that followed." For the employees the committee has the following words of censure: For the employees of our transit lines to take an unfair advantage of the present financial and industrial situation brings them directly within the class the Presi- dent brands as un-American and as profiteers. The committee draws attention to its report of Feb. 4, 1919, in which it "offered co-operation to settle and ad- just the transit tangle if the facts were all put upon the table by the transit companies and all of the facts that now are claimed to warrant increased fares are stated." In this connection the committee said: This has not been done. The whole trans- it situation should be settled now without further delay and talk, but we believe that no satisfactory or permanent settlement can be reached which leaves uncovered any of the facts of cost, finance, or leasehold in connection with these properties. As a matter of fact, the quotation from the reply by Mr. Garrison to the chairman representing the Amalga- mated Association, on which the cham- ber bases its criticism, was to the effect that Mr. Garrison would not deal with outside organizations, but would meet v.'ith the employees. Strike in Los Angeles On Aug. 16, at 2 a.m., some 3000 trainmen, electricians, shopmen and maintenance-of-way employees of the Pacific Electric Railway and Los An- geles Railway lines, Los Angeles, Cal., went out on strike because the com- panies had refused to grant certain demands for an increase in pay and changes in working conditions. The Los Angeles Railway, with the employees who remained loyal and the reserve force of student trainmen, was able to maintain 50 per cent service and has bettered service each following day. The Pacific Electric Railway, how- ever, due to practically all the substa- tion operators going out, was not able immediately to maintain more than 50 per cent service, but in the succeeding days with competent substitutes was able to restore service to normal. There was no serious interruption to the Pacific Electric Railway freight service except the delay of interchange with the steam roads, as the members of the Brotherhoods on these lines are re- fusing to accept or deliver freight to the Pacific Electric. No violence of con- sequence was evident on either line up to Aug. 19. A United States court injunction was obtained by the Pacific Electric Railway during the strike of 1918 and an in- junction of the Los Angeles Railway returnable on Aug. 20, 1919, restrains the striking employees from intimidat- ing employees who are still working and from molesting or damaging the prop- erty. The Pacific Electric Railway trainmen are organized under the Na- tional Brotherhood of Locomotive En- gineers, and the Los Angeles Railway trainmen are unionized under the Amal- gamated Association. Dissatisfied With Wage Award The employees of the Eastern Massa- chusetts Street Railway, Boston, Mass., dissatisfied with the wage award of the War Labor Board, voted on Aug. 25 to go on strike. During the voting a telegram was received by James H. Vahey, general counsel for the carmen's unions, from President William D. Mahon of the Amalgamated Association, giving in- structions to have the men remain at work and accept the award under pro- test, until he could come to Boston in about three weeks, when he would try and effect a settlement personally. After receiving the telegram the union leaders conferred with Mr. Vahey for several hours trying to evolve some means by which the men could be per- suaded not to put into effect their strike vote. Disorder and Bloodshed at Olean All platform men in the employ of the Western ^ew York & Pennsylvania Traction Company, Olean, N. Y., went on strike on Aug. 12. The motormen and conductors were receiving from 27 to 33 cents an hour. They demand 43 cents an hour for the first six months; 50 cents an hour for the next nine months, and 55 cents thereafter. They also ask a reduction in working hours and recognition of the Amalgamated recently organized in Olean. Wilson R. Page, president of the com- pany, told the men the company is not in a financial position to grant a wage increase at this time and promised he would consider their demands after ac- tion is taken by the Public Service Commission for the Second District, on the company's application for permis- sion to raise its local fares in Olean from 7 cents to 10 cents and its in- terurban fares from 3i to 4^ cents a mile. This plan the men rejected. The company then brought to Olean about sixty-five men from Philadelphia, and an attempt was made to run cars. Oh the night of Aug. 18 strikers at- tacked a car operated by an outside crew and demanded that the company release the outside employees quartered in the carhouse. More than twenty persons were taken to hospitals suffer- ing from gun shot wounds and as many more were attended by local physicians. The police and deputy sheriffs were unable to stop the disorder and the car- house was stormed and after consider- able difficulty the outside employees were hurried to the police headquar- ters in automobiles. Many were badly wounded. The mob then stormed the jail until State troopers arrived. The strike breakers were then taken to the county jail at Little Valley where they are being held pending a Grand Jury in- vestigation. No attempt was made by the com- pany to run cars after the riot. James P. Quigley, secretary and counsel of the company, told a correspondent for the Electric Railway Journal that he is willing to submit to a board of arbi- tration all questions in dispute between the strikers and the company and said the company will not discriminate against union men. The strikers are also willing to arbitrate all points in dispute but demand recognition of the union. Alfred D. Ewing, president of the Olean Chamber of Commerce, called a conference between the strikers and the company officials in an effort to bring about a settlement, but no agreement was reached. The Mayor of Olean also tried to bring about an agreement, but without avail. Strike in Charlotte, N. C. Electric railway service in Charlotte and Winston-Salem, N. C, and Green- ville, S. C, stopped on Aug. 10, when the trainmen of the Southern Public Utilities Company walked out on short notice demanding a further wage in- crease and recognition of the union. Z. V. Taylor, president of the company, had refused to treat with the men as members of the Amalgamated Asso- ciation, although expressing willing- ness that they form a union of their own. The men asked for a maximum wage of 45 cents an hour for motor- men and conductors and for 50 per cent above the scale for operators of one- man cars. The company, which had raised the pay more than 100 per cent during the last three years, contended that no further increase was possible at present. The men operating the line in Anderson, S. C, who had recently received an increase, refused to join in the strike. The company presented its case to the men and to the public in the last edition of its monthly maga- zine. For more than a week electric rail- way service in Charlotte and neighbor- ing towns was completely tied up. The striking car men were backed up in their demands by the workers in the company's power and gas plants, who walked out in sympathy with them. August 30, 1919 Electric Railway Journal 449 Rumor About Mr. Mitten It was reported by the evening news- papers of New York in their editions late on Aug. 27 that Thomas E. Mitten, president of the Philadelphia (Pa.) Rapid Transit Company, had been in- vited to succeed Theodore P. Shonts as head of the Interborough Rapid Transit Company, New York. It was said that the resignation of Mr. Shonts was in the hands of the company's directors. The New York Sun said that, according to the report in circulation, the plan was for Mr. Mitten, upon assuming the presidency of the Interborough, to take charge of a general merger of all railway lines in New York. That paper, however, quoted an officer of the banking firm of J. P. Morgan & Com- pany as having said that he did not be- lieve there was any foundation for the report. News Notes Wage Increase in Easton. — The em- ployees of the Easton (Pa.) Transit Company have been granted an in- crease in pay of 5 cents an hour. The men had requested an advance of 10 cents. Railway Takes Over Buses. — The bus lines running between Houghton and Calumet, Mich., and Houghton and Painesdale have been taken over by the Houghton County Traction Company, which is purchasing four new buses for the service. The company is also erect- ing a garage for the accommodation of the equipment. St. Louis Men Accept Award. — The wage award of the Public Service Com- mission of Missouri, granting trainmen of the United Railways, St. Louis, Mo., an increase of 45 per cent, was pre- sented to the men officially at a meet- ing of their union. The secretary of the union announced that the men we're satisfied with the award. Truce in Burlington Strike. — The Burlington (Vt.) Traction Company resumed operation on Aug. 16, an agreement having been reached with the strikers for a thirty-day truce. The men went on strike on Aug. 8 to en- force their demands for an increase in wages, an eight-hour day and time and a half for overtime. Strike in Nashville. — Electric rail- way service throughout Nashville, Tenn., was entirely suspended on' Aug. 21 as a result of the strike of con- ductors and motormen of the Nash- ville Railway & Light Company. The company attempted to operate a few cars, but the effort was quickly aban- doned. It is said that the principal is- sue involved is recognition of the union. Wilmington Men Ask More. — The employees of the Wilmington & Phila- delphia Traction Company, Wilmington, Del., have presented a request to the company for an increase in wages of 15 cents an hour. Conferences looking toward an adjustment of the matter have been held by i-epresentatives of the men with Thomas W. Wilson, vice-president and general manager of the company. Examination for Mechanical Engi- neer.— The United States Civil Service Commission has announced that on Sept. 23 next an examination will be held for the position of associate mechanical engineer. Vacancies in the Safety Section, Bureau of Standards, Department of Commerce, Washington, D. C, at salaries ranging from $2,000 to $2,800 a year, will be filled from this examination. Strike to Enforce Reinstatement. — Between 400 and 500 employees of the Niagara, St. Catharines & Toronto Railway, St. Catharines, Ont., refused to take out their cars on Aug. 21, car- rying out their threat to strike made when Superintendent E. W. Oliver, Toronto, refused to give the employees sufficient evidence for the dismissal of William Bell, a conductor. There is no wage controversy involved. Present Wage Scale Will Continue at Tacoma. — Motormen and conductors of Tacoma Railway & Power Company, Tacoma, Wash., have agreed to sign a contract continuing the present rate of pay for one year. Union officials said that higher pay was not demanded at this time so that no greater burden need be put upon industrial workers for fare. Fares were raised from 5 cents to 7 cents when the present wage scale went into effect last year. Solution of Traction Program Pro- posed.— Traction matters are again due for a stirring up at a special meeting of the City Council of Chicago, 111., called for Sept. 9. Mayor Thompson has announced that he will present a message on the subject at that time, proposing a solution of the transpor- tation problem. While the details of his plan have not been made public, it is thought they have to do with the construction of a subway system with the traction fund and the forcing of the companies to agree to some form of public operation. Hammond Strike Still On.— The strike on the Hammond, Whiting & East Chicago System, Chicago, 111., is still in effect. The employees want the Chicago wage scale and the company insists this cannot be granted without a 7-cent fare. The Hammond city authorities have applied for a receiver to resume operation of the cars, and the hearing was set for Aug. 26. It is said the local authorities are willing to concede a 7-cent fare, but they in- sist on extension of lines which the company officials say will be too costly. Brotherhood Men Satisfied. — A state- ment prepared on their own initiative by employees of the Kansas City (Mo.) Railways and signed by a majority of them, has been sent to the committee of 100 appointed by the Chamber of Commerce to investigate traffic condi- tions, especially the operation of the railway. The statement reflects satis- faction with their working conditions, and a spirit of co-operation with the company. The employees declare it to be against the interest of the public and the company, for the company to re- store to their position men affiliated with the Amalgamated Association who participated in the recent strike. Disorder Prevents Operation. — Aug. 22 marked the fourth day of the strike in Louisville. It is claimed the strikers are now asking increases in wages and various other things which were settled by arbitration prior to the walkout. At the time of the walkout the question of the company's right to discharge men without preferring charges within twenty-four hours was the principal grievance. The four days have been marked by considerable violence. The company has told the Mayor that it could run its cars if given police pro- tection. Washington Men Want Seventy Cents. — Demands for a wage scale of 70 cents an hour for motormen and con- ductors, beginning on Sept. 1; an eight-hour day, an increase for other employees of 25 cents an hour and other improvements in conditions of work and wages were submitted to the Washington Railway & Electric Com- pany, Washington, D. C, on Aug. 22, by a committee of Division 875 of the Amalgamated Association. The Amal- gamated claims a*membership of more than 800 employees out of the total of 1050 employees of the company. The Brotherhood of Street Railway Work- ers a few days previous had presented ten demands to the company. The brotherhood demanded a flat increase of 25 per cent for all employees of the company. This was the principal de- mand. The nine other demands were all for improvement in working condi- tions. Holyoke Award Announced. — The re- port of Henry B. Endicott, as arbitra- tor on the wage question as affecting the employees of the Holyoke (Mass.) Street Railway gives the trainmen a maximum of 55 cents an hour, begin- ning June 1, 1919, an increase of 14 cents an hour over the present maxi- mum. Trackmen get similar increases and the snow sweepers get 10 cents ait hour more than at present. Spare men will get one-half of one day's pay, when reporting on orders of the company, instead of two hours pay, as at present. In making the award Mr. Endicott said: "If the public is to have the privilege of street railway transportation, it must pay a fair price for it; and the unwillingness of the pub- lic to recognize the full cost of trans- portation by street cars, or the hesi- tancy of public officials to co-operate with the street railway manage- ments in devising means for the collec- tion of the necessary revenue, is not a reason for requiring railway employees to work for inadequate wages." 450 Electric Railway JouRNAii Vol. 54, No. 9 Financial and Corporate Foreclosure Sale Soon Reorganization Plan Is Announced for the Fort Wayne & Northern Indi- ana Traction Company The stage is being set for the reor- ganization of the Fort Wayne & North- ern Indiana Traction Company, Fort Wayne, Ind. The plan for carrying out the financial rehabilitation is that ad- vanced by the committee representing the holders of the thirty-year first con- solidated mortgage 5 per cent bonds of the Fort Wayne & Wabash Valley Traction Company. Out of the $6,966,- 000 of this issue outstanding, $6,063,000 has been deposited. The reorganization plan is dated Aug. 18. A period of grace of thirty days is extended to dilatory holders of the bonds to come in under the plan. 220 Miles of Road The various companies included in this system of 220 miles of street and interurban railways had outstanding $11,801,700 of bonds, of which the largest issues were $6,966,000 of Fort Wayne & Wabash Valley Traction first consolidated mortgage 5's and $3,000,- 000 of Fort Wayne & Northern Indiana Traction Company first and refunding mortgage 5's. This amount of $11,- 801,700 does not include $200,000 of car-trust certificates. The stock issues outstanding consist of $2,500,000 of 6 per cent preferred stock and .$4,000,000 of common stock. There is also $75,000 of dividend scrip. Under the reorganization plan only a very small amount of the issues out- standing will remain undisturbed. Those which it is proposed to leave un- touched are the $29,000 of Fort Wayne Traction Company first mortgage 4's, the $57,700 of Fort Wayne Power Com- pany first mortgage 5's and the $400,- 000 of Fort Wayne, Marion & Bluffton Traction Company first mortgage 5's. There has been no default on these. Holdings of Stockholders Reduced The proposed capitalization of the new company will be $13,901,700, di- vided as follows: $4,679,450 of 5 i^er cent first and refunding mortgage bonds, $4,807,750 of three-year 6 per cent ad- justment mortgage bonds, $2,202,250 of 7 per cent preferred stock, and $2,212,- 250 of common stock. The details of the various exchanges are of interest mainly to the holders of the issues in- volved. So far as the stockholders are concerned, however, the scaling down of their holdings appears somewhat drastic. For the holders of the $4,000,- 000 of present common there is appor- tioned $400,000 of new common, or 10 per cent. For the holders of the $2,- 500,000 of present preferred stock there are apportioned $225,000 of adjustment mortgage 5's, $100,000 of 7 per cent preferred stock and $1,600,000 of com- mon, or securities to the extent of 77 per cent of their original holdings. The committee explains that the property has been improved considera- bly during the period of interest default out of earnings and the reorganization plan contemplates that no interest shall be paid upon any of the new bonds during 1919 in order that further use may be made of earnings for construc- tion and renewals, thus eliminating the necessity of selling securities. The receiver, Robert M. Feustel, will shortly apply for an order of sale for the property. Court Fixes Status of Debentures In a friendly suit brough by the Con- necticut Company, New Haven, Conn., against the New York, New Haven & Hartford Railroad, the Travelers' In- surance Company and the Aetna Life Insurance Company, the Connecticut Supreme Court of Errors has handed down a decision holding that the com- pany cannot mortgage certain property owned by it without providing for par- ticipation in the security by the hold- ers of $14,000,000 of debentures issued by the Consolidated Railway before the company came into control of the electric railways in New Haven. The Connecticut Company asserted that these debentures constituted a cloud on its title to certain property and pre- vented it from raising funds by way of mortgage. The following questions were passed upon : (a) \sniether the plaintiff is debarred from mortgaging tlie main line, formerly of the old Fairhaven & Westville Railroad, situated in New Haven, without providing in such mortagage for participation in se- curity thereof for the holders of the deben- tures. (b) Whether or not an equitable lien was created on the property and franchise owned by the Consolidated Railway by the issue of the debentures. (c) Whether or not the Connecticut Com- pany, having acquired the street railway properties and franchises as descrilied in the pleadings, holds them free and released from any obligation or lien imposed thereon in favor of the purchasers and holders of the Consolidated Company's debentures, and whether or not the Consolidated Com- pany can effect a valid mortgage without providing for the debenture holders. (d) Whether the obligations of the con- tract with the debenture holders is pro- tected by the federal Constitution so that its terms are inviolable and cannot be al- tered or impaired or defeated by subse- quent special acts of the Connecticut or Massachusetts Legislatures in 1915 set up in the complaint or by a decree of a judi- cial tribunal. With Justice Gager writing the opin- ion, the Supreme Court's answer was wholly in favor of the bondholders. Justices Prentice and Beach, however, concurred in all except the answer to the second question, dissenting from the conclusion that it should be an- swered in the affirmative. See Depreciation Need San Francisco Committee Opposed to Depletion of Fund to Pay Increase in Wages The finance committee of the Board of Supervisors of San Francisco, Cal., composed of Ralph McLeran, J. C. Kor- tick and F. Suhr, Jr., has reported against the resolution to transfer $10,247 from the depreciation fund of the Municipal Railway so that the money would be available to cover the increase in wages of the railway em- ployees for July, making the rate $5 a day. Depreciation Percentage Stands As noted in the Electric Railway Journal for July 19, page 144, the board voted to increase the pay of the platform and the track men, but de- clined to reduce the percentage of gross passenger revenue that is set aside for depreciation. In its report to the Board the finance committee said in part: In the judgment of the committee it will be most unwise to attempt a reduction of the 18 per cent of gross revenue set aside for depreciation. As a matter of fact, a study of this problem and comparison with reports of other cities indicate that the de- preciation percentage should be raised in- stead of lowered. This statement is sub- stantiated by a very complete report pre- sented by the city engineer of San Fran- cisco, which is attached to and made a part of this report. Favors Six-Cent Fare To meet the extraordinary charges now being imposed upon the Municipal Railway- it will be necessary for the Board of Pub- lic Works and the superintendent of the Municipal Railway to inaugurate most rigid economies in operating expenses and wherever possible eliminate excess service. The committee is advised that some econo- mies may be made without impairment of the excellent service being given by the Municipal Railway. These economies may bring about partial restoration of the finan- cial balance which makes for the profitable operation of our municipal street railway system. After a very thorough investigation, the committee believes that the true solution is an increase in fare to 6 cents or more, but does not recommend that such action be taken at this time, for this reason: In- crease in electric railway fare can only be successfully installed after education of the public. The committee has before it reports from other cities where fares have been in- creased in some instances as high as 10 cents, as in Boston. Other cities have in- creased to 5, 7 and 8 cents. It is a ques- tion that should be brought to tlie atten- tion of the public, and when the cost of l3bor, material and all necessities of life is doubled and trebled, there is no reason why railway fares should not be raised propor- tionately. No More Extensions Out op Revenue To continue the $5 a day wage on the railroad the committee will from time to time recommend to this board transfers from the depreciation fund of a sufficient amount to meet the payrolls. A 3 per cent reduction of the .present 18 per cent would not be sufficient to meet the increase which has been granted. The attention of the Board of Super- visors. Board of Public Works and the pub- lic is directed to the questions of extensions of the Municipal Railway, and under exist- ing financial conditions it is certain there can be no further extensions of the Munici- pal Railway financed out of revenues. Fu- ture extensions can only be made by a bond issue or by some method of financing other than from revenue. And unless there is a marked increase in revenue in all prob- ability the Board of Supervisors will be compelled in future years to provide for bond interest and redemption in whole or in part from the annual tax levy. August 30, 1919 Electric Railway Journal 451 Running Behind American Public Utility Company Has Loss of $104,816 for Year Ended June 30 The earnings of the subsidiary com- panies of the American Public Utility Company, Grand Rapids, Mich., for the year ended June 30, 1919, follow: Gross earnings from operations .. $4,643,318 Operating expenses 3,052,717 Net earnings from operations. . . .$1,590,601 Miscellaneous income 76,429 Gross income $1,667,030 Loss $ 104,816 Net income $1,542,723 Fixed Charges for Twelve MTonths Interest on underlying securities $1,389,653 Interest on collateral trust bonds 172,815 Interest on two-year notes 29,340 Miscellaneous interest.. 55,731 Total interest charges $1,647,539 Loss $ 104,816 The report of the directors covering the operations of the company for the fiscal year ended June 30, 1919, was, to some extent, anticipated by the letter of the president of the company, ad- dressed to the preferred stockholders, on July 1, in which were discussed the conditions of income leading the direc- tors to suspend payment of preferred stock dividends until conditions became more favorable. There is no cessation in the public demand for service fur- nished by the company, but the net returns from the service give, for the present, no adequate basis for the im- mediate recompense of the capital al- ready interested, or for attracting the new funds which are constantly re- quired for extensions and betterments. Operating Expenses Outstrip Earnings Proof of these statements can be found in a comparison of gross earn- ings and operating- expenses of the company for the years ended respec- tively, June 30, 1918, and June 30, 1919. For the first of these periods the gross earnings of the properties owned by the company (the Holland City Gas Com- pany and the Jackson Light & Traction Company being excluded) were $4,- 089,090. For the year just closed the gross earnings from seven of the prop- erties which contributed to the previous year's figures of gross earnings were $4,643,318, an increase of $554,227 of gross receipts. For the first period the net income was $1,590,831, while for the year just closed the net earnings were $1,590,601, showing a decrease of $230 in the net results of the last year's operations as compared with its pred- ecessor. A sum greater than the total amount of increased gross earn- ings had been absorbed by the increase in operating expenses. The attitude of the public authorities of Jackson, Miss., toward the Jackson Light & Traction Company resulted in its failure to meet its obligations, and that property has also been put under the protection of the bankruptcy court to protect its mortgage and its creditors. Proceedings affecting this property are still in progress. Gross earnings for the past fiscal year from the operations of the sub- sidiary companies, as compared with those of previous years, were : Year ended June 30, 1912 $1,738,192 Year ended June 30, 1913 1,981,320 Year ended June 30, 1914 2,319,594 Year ended June 30, 1915 2,932,069 Year ended June 30, 1916 3,309,586 Year ended June 30, 1917 3,819.820 Year ended June 30, 1918 4,089,090 Year ended June 30, 1919 4,643,318 The total for the year ended June 30, 1918, in the foregoing table excludes $363,034 of earnings from the Holland City Gas Company and the Jackson Light & Traction Company, included in the last annual report, the adjustment being made for purposes of comparison. B. R. T. Receiver's Certificates Offered A group of bankers consisting of the Central Trust Company, the Bankers' Trust Company, the Chase Securities Corporation, Hayden, Stone & Com- pany, and J. & W. Seligman & Com- pany has purchased the $18,000,000 Brooklyn (N. Y.) Rapid Transit Com- pany 6 per cent two-year receiver's certificates sold by Lindley M. Garri- son, receiver. These certificates -are being offered for public subscription by bankers at 98 and interest. They are in denom- inations of $1,000 and are dated Aug. 1, 1919, and are due Aug. 1, 1921. They are redeemable at any interest date at par and accrued interest on thirty days notice. The proceeds of not less than $13,- 000,000 and not mo'/e than $15,000,000 of the certificates are to be used princi- pally to complete the subway contracts with the city of New York, and the proceeds of the balance will go to com- plete the power house improvements of the company required in connection with the new rapid transit lines. The certificates will be secured by a pledge of not less than $13,000,000 nor more than $15,000,000 of the joint cer- tificates of the receiv ^r of the rapid transit lines (New Vork Municipal Railway Corporation and New York Consolidated Railroad) which are in turn secured by a first lien on all the property and income of these two companies being subject only to the underlying liens of the first mortgage of the Brooklyn Union Elevated Rail- way under which $22,967,000 of bonds are outstanding, also by a first lien on all property of the Brooklyn Rapid Transit Company, in possession of the receiver or subject to the administra- tion of the court and on the income therefrom, subject only to the prior lien of the 4 per cent refunding mort- gage of 1902, under which $27,621,000 bonds are outstanding; also by a pledge of $5,822,000 of various bonds includ- ing $5,092,000 of 4 per cent refunding bonds of 1902 and by a first lien on all the property susceptible of separa- tion purchased with the proceeds of the certificates, principally the power house improvements. Financial Briefs from St. Louis Exceptions to the report of Special Master Henry Lamm, who investigated the receivership case of the United Railways, St. Louis, Mo., have been overruled by Judge D. P. Dyer of the United States District Court. The ex- ceptions included objections to the rec- ommendation of the special master that Rolla Wells, receiver, be author- ized to issue more than $2,000,000 of receiver's certificates, payable in one year, the receipts from the sale of which were to be used to pay bondet indebtedness which has matured. The issuance of these certificates is now authorized. One of the greatest transcripts of evidence ever prepared for a court in St. Louis will be submitted about Sept. 1 to attorneys in the suit of John W. Seaman against the directors of the United Railways for an accounting. The transcript contains about 1,250,- 000 words. A decision is not likely in the Seaman suit before Jan. 1, 1920. Valuation of the physical property of the United Railways, on which the chance of higher fares depends, has been held up by the Public Service Commission because the State is short of funds. The valuation was to have been completed by June 1. The date was later put ahead to Sept. 1. Now, on account of the lack of funds, the commission is unable to employ en- gineers and it is doubtful if the valua- tion can be completed before next spring. Five-Cent Fare a Failure With a straight 5-cent fare during the month of July the Grand Rapids (Mich.) Railway lost $19,323, accord- ing to its monthly report submitted to the City Commission. This loss is shown in the face of an increased net revenue of about $10,- 000 over the same month a year ago. The receipts for the month are shown at $120,183, against $109,279 for 1918. A reduction of nearly $1,000 is shown in the general expenses over the same month a year ago. The total expense, however, is $90,757 against $77,172 for the same month a year ago. The in- crease is brought about through in- ceased wages to employees and in- creased operating expenses. The net operating income for the month was $29,426, but with interest depreciation and other items totaling $48,749 charged off the deficit is shown. To date since Jan. 1, $87,500 has been charged off as a depreciation item. Of this amount $41,411 has been spent, leaving a balance of $46,088 in the depreciation fund. When the commission, through the railway committee, requested a trial of the 5-cent fare during July Benjamin S. Hanchett, president of the company, estimated that the operating loss would be about $20,000, which is shown to have been just about correct. The company has reverted to a 6-cent fare with nineteen tickets for a dollar. 452 Electric Railway Journal Vol. 54, No. 9 $635,395 Deficit in Columbus In response to a resolution of the Chamber of Commerce of Columbus, Ohio, the Columbus Railway & Light Company, through president Charles L. Kurtz, has published the following statement covering the year 1918: Operating revenue $4,197,177 Operating expense (no depreci- ation 2,770,370 Net operating revenue $1,426,807 Taxes 342,698 Operating income $1,084,109 Non-operating income 67,309 Gross income $1,151,418 Deductions from gross income. 1,786,813 Deficit $ 635,395 It is explained that the deductions consist of bond and note interest, liabil- ity on account of fare rebate coupons, back wages due employees under the award of the War Labor Board, depre- ciation and other usual and proper de- ductions, with no allowance for any dividends on preferred or common stocks. Abandonment Threatened According to the announcement from Homer Loring, chairman of the board of trustees of the Eastern Massa- chusetts Street Railway, the successor to the Bay State Street Railway, some of the cities and towns will lose their service because of the added burden of the increased wages to the employees under the recent decision of the War Labor Board unless they contribute to the cost of service, as provided in the public control act of 1918. The in- creased wage, it was reported, will mean a total increase of nearly $1,000,- 000 the first year. Unless the communities contribute to its support the company will be com- pelled to abandon 200 miles of track. Service has been discontinued or will be discontinued on other lines, but the new announcement includes 200 miles additional to these places. Under the new edict the lines which will be af- fected are the New Bedford, Middle- boro & Brockton line and the George- town Rowley & Ipswich line. The cities and towns which will be affected have been notified of the proposed aban- donment of service unless they con- tribute to the road under the 1918 act. Argentine Earnings Decline The shareholders of the Anglo-Ar- gentine Tramways, Ltd., met in Lon- don, England, on Aug. 14. The traffic receipts for the past year amounted to £2,909,375, so that, notwithstanding the continuance of abnormal conditions, there was an increase of £209,131 over the figure of 1917. The directors re- gretted that, having regard to the un- certain labor position and to the cost of current during the first five months of the present year, they were unable to recommend the distribution by way of dividend on the first preference shares of any part of the £83,042 stand- ing to the credit of profit and loss. For eighteen days, from May 27 to June 13, the service was entirely dis- organized, and the receipts were re- duced by £90,000, owing to a strike of the employees. In the end a full serv- ice was resumed on the understanding that the employees would be granted an eight-hour day and other ad- vantages so soon as the municipality of Buenos Aires sanctioned the increase of fares. Application was made to the munic- ipality to sanction the increase, and a committee appointed to consider the matter had unanimously reported in favor of the application. The matter was still under consideration by the municipality, and the manager was hoping for a favorable decision. When the concession was granted, a uniform fare of 10 cents was sanctioned, upon the ground that it was fair in the in- terests of the city of Buenos Aires, and was sufficient to give them an adequate return upon the capital of the com- pany. Financial News Notes Lighting Company Purchased. — The Alabama Power Company, which op- erates an electric railway in Anniston and Huntsville, Ala., has purchased the Selma (Ala.) Lighting Company. East St. Louis Removing Track. — The East St. Louis, (111.) Railway will remove its tracks on St. Louis Avenue between Collinsville Avenue and Fifth Street. The double track on this street has been used very little. Notes to Buy Cars. — The Springfield (Mass.) Street Railway has requested authority of the Public Service Com- mission to issue notes totaling $44,805 to pay in part for ten one-man cars which the company will soon put into operation. Note Issue Asked. — The East St. Louis & Suburban Railway, East St. Louis, 111., has filed a petition with the Illinois Public Utilities Commission for permission to reissue notes to pay off part of the original indebtedness of the company in the amount of $400,000. Another Abandonment Threatened. — The Mahoning & Shenango Railway & Light Company, Youngstown, Ohio, has made application to the Public Utility Commission of Ohio for permission to abandon operation of its electric line between Niles and Mineral Ridge, 2i miles long. Traffic revenues have not been sufficient to cover operating ex- pense. Threaten Abandonment. — The trus- tees of the Eastern Massachusetts Street Railway, Boston, Mass., have written to George A. Schofield, who is acting counsel for Ipswich, to the ef- fect that it is their intention to stop operating the Georgetown, Rowley & Ipswich line on Sept. 1, unless the three towns make contributions to keep the line running. City Asks for Receiver for Railway. — With the Hammond, Whiting & East Chicago Street Railway, Chicago, 111., refusing additional service in exchange for permission to raise its fare to 7 cents, the city of Hammond on Aug. 22 filed a petition for a receiver for the railway in the Crown Point Circuit Court, after it had begun mandamus proceedings to force the company to re- sume the operation of its lines or lose its franchise. Abandoned Road to Be Sold. — The properties, franchises, etc., of the Abi- lene (Tex.) Street Railway will be sold at public auction on Sept. 9, by W. G. Swenson, receiver. The sale is to be made to satisfy a judgment and fore- closure for $38,670, issued out of the District Court of Taylor County. The company owns about 5 miles of track in Abilene, but its cars have not been operated for some time, having been supersedea by a motor bus system. Suspension Threat in Oswego. — The Empire State Railroad, Syracuse, N. Y., has called a stockholders' meeting for Sept. 23 for the purpose of considering the advisability of abandoning its lines within the city of Oswego. This is frankly stated to be a movement re- sulting from the position taken by the city officials regarding matters of fare increase and public improvements. It in no way affects the operation of the company's lines between Syracuse and Oswego. Chicago Receipts Increase 23.4 Per Cent. — A comparison of the results of operation on the Chicago (111.) Surface Lines for the first seven days following the strike with those of the seven days immediately preceding the strike shows that in place of the theoretical 40 per cent increase in revenue resulting from the increase in fares from 5 cents to 7 cents, the revenue has actually been increased 23.4 per cent. This compari- son also shows that riding has de- creased 11.31 per cent. Prompt Interest Payment Planned. — ■ The directors of the Quebec Railway, Light, Heat & Power Company, Quebec, Que., have decided to pay up the in- terest on the first mortgage issue in place of taking the full three months grace as has been the custom for some years back. The Financial Post of Toronto says that the annual state- ment of the company for the year ended June 30 will show a big improve- ment in earnings due to increased fares, increased rates for gas and elec- tricity, etc. Youngstown Doing Better. — The re- port of the Youngstown (Ohio) Munici- pal Railway, controlled by the Mahon- ing & Shenango Railway & Light Com- pany, for the month of July, during which month a 6-cent fare was in ef- fect, shows the deficit in the stabilizing fund cut from $24,182 for June, when August 30, 1919 Electric Railway Journal 458 a 5-cent fare was in effect, to $9,374. The 7-cent fare now in effect is ex- pected to end the monthly deficit in this fund and perhaps show a profit. The report shows the gross revenue for July to be $130,335 against $112,482 for June. Buses Will Supplant Railway — On account of the very high cost of opera- tion and the small earnings the South- ern Railway & Light Company, Nat- chez, Miss., is now dismantling 4 of the 6 miles of railway and has forfeited its franchise, except for the 2 miles of track that leads from the Ferry Land- ing through the center of the city. The cars with motors and tracks are being offered for sale as it is not probable that I'ailway service will be resumed. The question of operating gasoline buses is being considered, and as soon as two suitable buses are purchased a trial will be made. Foreclosure Sale Approved. — Judge George W. English in United States District Court has approved the sale of the property of the Southern Traction Company to H. D. Mepham, New York, N. Y., the original promoter of the road. The Southern Traction Company planned to build from East St. Louis to the coal fields near Belleville, 111. William E. Lorimer, Chicago, 111., and the Lorimer & Gallagher Construction Company were interested in the road and their insolvency contributed to the failure of the LaSalle Street Trust & Savings Bank, Chicago, a few years ago. Litigation over the railway was started in the United States District Court in 1914. The purchaser is to pay the full amount of the purchase price by Oct. 1. Washington Merger Urged. — Resolu- tions advocating the merger of the Capital Traction Company and the Washington Railway & Electric Com- pany, Washington, D. C, practically identical with those adopted by the pub- lic utilities committee of the Chamber of Commerce some weeks ago, were adopted by the chamber's board of di- rectors at a meeting on Aug. 22. The board's resolutions set forth that a merger of the two companies would be for the best interests of the com- panies, stockholders, residents, em- ployees and all concerned. A commit- tee is to be named by President Robert N. Harper of the chamber to draw up a bill for presentation to Congress pro- viding for the merging of the two com- panies. A Road Reclaimed. — The Massachu- setts Street Railway, successor to the Bristol & Norfolk Street Railway, is to resume traffic on the line between Hol- brook Station, Randolph and Stoughton Square. The line has not been operated since Dec. 1, 1918, when, owing to fi- nancial loss, the cars were stored in the carhouse and partial dismantlement be- gun with the view of junking the road. A few weeks ago it was stated that the rails would be torn up and the wires taken down. This announcement caused a storm of protest which was followed by the demand of a heavy bond for the replacement of the streets in their original condition. A company has been formed by local men with the result that service will be resumed. Iowa Railway & Light Notes — Har- ris, Forbes & Company, New York, N. Y., and the Harris Trust & Savings Bank, Chicago, 111., are offering for subscription at 99 and interest, yielding more than Gh per cent, $731,500 of two- year, 6 per cent collateral notes of the Iowa Railway & Light Company, Cedar Rapids, la. The notes are dated Aug. 15, 1919, and are due Aug. 15, 1921. The Harris Trust & Savings Bank is the trustee. The bankers offering the issue point out that the net earn- ings are more than one and three- fourths times the annual interest on the outstanding funded debt. The note issue is secured by the pledge of first and refunding mortgage bonds on the basis of 77 per cent of the face value of bonds pledged. The authorized is- sue of the notes is $2,000,000. Another Long Island Abandonment. — The Public Service Commission for the First District of New York has been informed that the Long Island Electric Railway, which operates from Jamaica to Far Rockaway, is ready to ask the courts, through a receivership, to discontinue operation, wind up its affairs and sell its rails and other prop- erty to the highest bidder. The com- pany is owned jointly by the Inter- borough Rapid Transit Company and by the Long Island Railroad, which have advanced numerous sums in re- cent years to provide its running ex- penses. The company has not paid in- terest on its bonds for many years and never has paid dividends on its stock. The parent companies refused longer to advance moneys for maintenance and operation, and officials of the road de- clare they must shut down. Liquidates Back Dividend. — Directors of the Standard Gas & Electric Com- pany, Chicago, 111., on Aug. 20 declared the regular quarterly 2 per cent cash dividend on the preferred stock pay- able on Sept. 15 to stockholders of record of Aug. 30, and passea a reso- lution providing for the payment of 13 per cent cumulated dividends on the preferred payable in common stock of the company at par. The operating statement for the first six months of 1919 shows the full 4 per cent for the preferred and 3.52 per cent on the common shares, including the increased common stock due to payment of the accumulated dividends on the preferred. This is at a yearly rate of 8 per cent for the preferred and more than 7 per cent for the common, without taking into consideration any earnjngs from the Shaffer Oil & Refining Company, which company, the directors state, is progressing most satisfactorily. Exception Taken to Report of Special Master. — Exceptions have been filed in the United States District Court to the report of Special Master Henry Lamm regarding the issuance and sale of receiver's certificates to take up a debt of $2,300,000 of the United Rail- ways, St. Louis, Mo., which is due. Those who filed were John W. Seaman, who instituted the receivership suit against the company, and Elmyr A. and Robert T. Laughlin, interveners in the suit. They object to language of the report, in so far as it refers to a "de- fault" on the part of the company, in not taking up bonds issued in 1904 by the St. Louis Transit Company which leased the railways in St. Louis fpom the United Railways. They assert that there was no consideration for the in- dorsement by the United Railways of the Transit Company bonds and that therefore the indorsement is void. Judge David P. Dyer of the United States District Court will pass on the exceptions. Property of Projected Road Sold. — The properties of the Eastern Texas Traction Company, including fran- chises for the construction of an in- terurban line from Dallas to Green- ville, a distance of 32 miles, right-of- way on which the roadbed has been graded for considerable distances and other intangible assets, were sold at sheriff's sale recently to S. B. Brooks, Greenville, Tex. The sale was made to satisfy a judgment granted on June 10 on suit of Phil Karner, contractor, to recover $53,690 alleged to have re- mained unpaid for construction work on the right-of-way. R. R. Neyland, Mr. Brooks' attorney, of Greenville, said that the sale was in effect a formality intended to place the entire control of the property in Mr. Brooks' hands. As originally organized, F. E. White was president of the Eastern Texas Trac- tion Company and J. W. Crotty was its vice-president. Bay State Interest Not Earned. — The Boston News Bureau of Aug. 26 said: "Operating expenses of the East- ern Massachusetts Street Railway (Bay State System) have increased so rapid- ly in relation to gross receipts that the road will be unable to pay any interest this year on the refunding mortgage bonds. There are nearly $20,000,000 of these bonds outstanding, bearing interest at 4i, 5 and 6 per cent. Inter- est requirements on these bonds are in the vicinity of $900,000 a year. The failure to meet the interest due wall not, however, operate as a legal de- fault. It was provided as a part of the recent reorganization of the road that "any instalment of interest pay- able at any time prior to June 30, 1921, may be extended if there is no avail- able income for payment thereof. Interest so extended, plus 20 per cent of its amount, shall be payable sixty days after the close of the first period ending June 30 or Dec. 31 in which available income shall have accrued for the payment thereof, but in no event later than Dec. 31, 1925." In other words, the company can, if required earnings are not available, defer until Dec. 3, 1925, the first two years' inter- est on the refunding mortgage bonds, being penalized, however, 20 per cent of the amount of interest that is so deferred. 454 Electric Railway Journal Traffic and Transportation Portland Wants More Oregon Company Asks for Rate to Return Seven Per Cent on Commission Valuation The Portland Railway, Light & Pow- er Company, Portland, Ore., has filed with the Public Service Commission application for an increase in rates. This is pursuant to the company's in- tention as announced following the 12 per cent wage increase allowed the company's employees by the War Labor IBoard recently. This increase, the company's petition asserts, in- creases its annual expenses $350,000, and an increase in rates is sought suf- ficient to make a minimum return of 7 per cent upon the value of the railway property as determined by the commis- sion. The company makes representations that the net earnings of the system for the twelve-months period ended June 30, 1919, were insufficient to pay interest on its bonded indebtedness and its maturing street improvement as- sessments. Commission's Valuation The value of the railway property as fixed by the Public Service Commis- sion in its order of Nov. 19, 1918, was $18,568,073 as of Dec. 31, 1916. Be- tween the latter date and July 31, 1919, the company alleges it has added im- provements and betterments netting an additional valuation of $129,437, bring- ing the valuation up to $18,698,510. The company asserted "that for the twelve-months period ended June 30, 1919, the net operating revenue of the railway system was $792,203, which is equivalent to 4.24 per cent on the value of the railway property established by the commission.'' It is further charged the net earnings provided no return whatever upon that portion of the value of the railway system represented by the investment of the stockholders. The petition shows since the com- mission's order of Jan. 5, 1918, es- tablishing a 6-cent fare, operating ex- penses have increased materially through conditions beyond control of the company. On that date the average wage of platform employees was ap- proximately 43 cents an hour as es- tablished by a board of arbitration in October, 1917. Subsequent increases, says the company, have since increased wages periodically, and the war board's 12 per cent order will increase its op- erating expenses approximately $350,- 000 a year. Great Increiase in Costs The application alleges that since the 6-cent fare order was rendered operat- ing costs have increased greatly, so that notwithstanding an increase in traffic, net earnings have shown no tendency to increase. As indicating that a material in- crease in traffic may not be expected in Portland in the immediate future the petition shows that for July this year gross earnings of the system were $3,000 less than for July last year, and it is estimated that gross earnings for the year ending June 30, 1920, will not exceed the gross earnings for the year ending June 30, 1919. Assuming that the gross revenues for the next year will equal those of the past year, it is asserted that net earnings will not exceed $392,203, equivalent to only 2.1 per cent on the value of the railway property. To show the increase in operating expenses, exclusive of taxes and de- preciation, the application gives the following figures showing operating expenses since 1915, inclusive: 1915, $1,707,912; 1916, $1,697,586; 1917, $2,017,136; 1918, $2,890,228; for the twelve months ending June 30, 1918, $2,410,814; for the twelve months end- ing June 30, 1919, $3,119,791. St. Louis Wants Ten Cents Rolla Wells, receiver of the United Railways, St. Louis, Mo., has gone before the Public Service Commission of Missouri with an application for permission to charge a 10-cent cash fare and to sell metal tokens good for one fare at the rate of 7 J cents apiece. It had been indicated before the hearing that the company would ask for an 8-cent fare. Col. Albert T. Perkins, manager for the receiver, is opposed to the idea, re- cently adopted in Kansas City, of vary- ing fares, dependent on number of tickets purchased. Col. Perkins' plan is to sell the disks conveniently wrapped in flat packages and by an advertising scheme get merchants about St. Louis to dispose of the tokens as a convenience to their customers. He believes that the saving will induce 95 per cent of the passengers to use tokens. Colonel Perkins said: I am very anxious to get permission from the Public Service Commission to use one metal token, sold at one price, irre- spective of the quantity bought. To make metal tokens popular with the public there must be a reduction in price from the cash fare. Use of these tokens, if they are made sufficiently attractive to the public, is cer- tain to result in a decided improvement in the movement of cars. It will reduce the delay that now results while the con- ductors make change under the 6-cent fare. In the hearing for increased fare Re- ceiver Wells will show the State board that the recent granting of a 45 per cent wage increase to employees means an additional expenditure of $2,740,000 annually, plus $684,000 in back wages to June 1, which must be paid by March, 1920. Vol. 54, No. 9 Six Cents in Birmingham City Commission Allows Increase Fol- lowing Request by Receiver — Re- serves Right to Lower Fare The City Commission of Birming- ham, Ala., on Aug. 23 adopted a resolution allowing the Birmingham Railway, Light & Power Company to increase its fare to 6 cents. This action was taken in accordance with a written request filed by Lee C. Bradley, re- ceiver for the Birmingham Railway, Light & Power Company, the Birming- ham Tidewater Railway, and the Bir- mingham-Edgewood Electric Railway. The resolution provides that the 6-cent fare is temporary and is subject to modi- fication on the part of the City Com- mission at any time and that the 5- cent fare may be restored on thirty days notice by the city. All rights of the city under the fran- chise of the Birmingham Railway, Light & Power Company and the other companies are reserved to the city. The resolution provides that the 6-cent car fare shall become effective on the ac- ceptance of the terms of agreement as set forth in the resolution and the reservations by receiver and their ap- proval by the Federal Court. Receiver Asks for Instructions Asking instructions as to what steps he should take in regard to the new wage contract presented by the local di- vision of the Amalgamated Association, Mr. Bradley recently filed a petition in the United States District Court in which he stated that the income for the six months ending July 31 was $88,072 less than the total operating expenses, taxes, and interest on the funded debt. The present contract with the employees expires on Aug. 31 and must be renewed by Sept. 1. The receiver points out that the increase in operating expenses will amount to $791,311 per annum if the wages now asked are granted. In submitting their new pay agreement the men asked for a minimum wage of 60 cents an hour. Court Recommends Increase The petition, which was filed on Aug. 16, was taken up by Judge William I. Grubb, of the Federal Court on Aug. 18. He ordered the receiver to take the matter up with the Public Utilities Commission and ask that body to grant such an increase in fare as would allow the operation of the property without the wasting of the estate. He also ordered the receiver to take up the matter with the City Commis- sion of Birmingham and to petition that body to waive the 5-cent fare limit as provided in the franchise in order that such a fare may be collected as will allow the operation of the property without loss. Receiver Bradley stated that until the wage demands of the men have been settled it could not be decided as to just what rate of fare will be asked for. ■August 30, 1919 Electric Railway Journal 455 Key Route Fare Raised Rate Across San Francisco Bay Made Fifteen Cents — Valuation Is Slashed Because of the increased cost of la- bor and materials fares on the trans- bay service of the Key Route (San Francisco-Oakland Terminal Railways) were increased on Aug. 12 by author- ization of the State Railroad Commis- sion. Authority is granted to raise the one-way fare from 11 cents to 15 cents and the commutation rate from $3.30 to $4. The rates may be made effective within thirty days. The commission briefly reviews the history of the company, how its fares were increased 10 per cent in June, 1918, in parallel with the increases on the Southern Pacific fixed by the federal administration, and how in August, 1918, the Oakland Traction division of the company was given an increase in fares from 5 cents to 6 cents. The commission, therefore, had remaining: for consideration only the trans-bay rates under the application filed in July, 1917. This is the matter now decided. The commission rejects the com- pany's claim of a $46,000,000 invest- ment value as unsound and prefers to recognize the estimates of the com- mission's engineers, which are $8,000,- 000 for the Key division property and $11,000,000 for the Traction division, a total of $19,000,000. The commission, however, holds that neither the in- vestment nor the valuation can be con- sidered the chief factor in determin- ation of rates for this company. Decreask in Gross Income A table showing the income of the company for the past four years shows an advance in gross operating revenue from $4,353,891, for the year end- ing June 30, 1915, to $5,160,385 for the calander year 1918. While this increase in gross operating revenue occurred a decrease in gross income was equally positive, the gross in- come dropping from $1,232,021 for the year ending June 30, 1915, to $882,924 for the calander year of 1918. Out of this gross income the payment of in- terest on funded and unfunded debt and the return on property investment is paid. During the period alluded to there were many increases in the cost of materials and particularly advanced wages for the many classes of em- ployees. Comparing the period of Aug. I, 1918, to June 30, 1919, with a similar period of the preceding year leaves, the commission says, a decrease in op- erating profit of $126,867 on the Key division alone. In discussing the income showing of the company, the commission says: Were it not for the fact that there has been a remarkable increase in traffic dur- ing the last two years on both the Traction and the Key divisions of this system, the financial results would be much worse. There appears to be so healthy and rapid a growth in population in the territory served by this company that it is sound to estimate that this growth will further continue. This condition is taken into con- sideration in reaching our conclusions. Even with this condition obtaining it is apparent that t)ie increased gross revenue from the increased traffic has failed to keep Lip with tile incrfusing operating expenses. In discussing the many increases in wages granted, the commission says: The commission has definitely adopted the policy to recognize as operating ex- pense all increases in labor costs and this policy will be adhered to in this proceeding. It will not be necessary in this decision to go into the details of the increases in operating expenses and the reasons for such increases. The subject is a familiar and pressing one and has Ijeen dealt with exhaustively in a number of previous de- cisions made Ijy this commission. Findings of Commission The commission's conclusion on the company's finances is shown in the fol- lowing declaration: A careful analysis of the applicant's financial condition leads to the conclusion that the margin between revenues and operating ex]ienses is steadily growing less. This is true for the property as a whole, taking the Traction and the Key divisions together. It is also true to a lesser ex- tent for the Traction System alone, al- though it is apparent that the street car operations of tlie ap].)licant taken by them- selves are still, even with the Increased operating costs, returning a profit even though this profit on a fair rate basis is less than 8 per cent. The Traction di- vision earnings now are, as they have been in the iiast, carrying the Key division's losses. Considering the Key division alone (and it must be remembered that it is the rates on the Key Division that we are dealing with in this decision), the point has almost been reached where the rev- enues are insufficient for operating expenses and taxes alone with no margin whatever for a return on any rate base. For the property as a whole, the net income after operating expenses, depre- ciation and taxes, is less than 5 per cent on the rate base. It is our estimate that with these fares, the applicant's revenues will be increased by approximately $400,000 per annum. The greater percentage of this amount will be a net increase. We believe that with this increase, the applicant will be enabled to render an entirely efficient and adequate service to the public. In discussing the rate base the com- mission declares that the suburban serv- ice cannot be segregated from the other services of the company and that it is impracticable to have one set of rates for the Key Route and another for the competing Southern Pacific lines. The commission holds that "a fair decision both to the public and to the company should provide for in- crease in fares sufficient to place this company in a position where it can render adequate and efficient service to the communities on its lines." A remedy for the financial condition of the company is suggested by the commission, which says: It has been repeatedly pointed out by this commission that the only permanent remedy for the financial difficulties of this company is a thorough-going reorganiza- tion of its finances. As long as the Key System rests on the present unsound finan- cial structure, it is bound to continue in financial difficulties in the future as it has in the past. The rate increases will not effect a complete or permanent remedy of this situation. If it were practicable to do so, we would make reorganization one of the conditions of this order. The value and the cost of tlie service rendered by the company, in our opinion, justify an in- crease of interurban fares. The commission criticises the depre- ciation reserve account of the company. It finds that it has been bookkeeping and not actually making money, and directs that in the future an adequate cash depreciation reserve be set aside equal to $100,000 a year for the Key division and $140,000 a year for the Traction division, accumulating by monthly installments of $20,000. I. C. C. Favors I. T. S. Upon application of the Illinois Trac- tion System, Peoria, 111., for an order requiring the establishment of through loutes and joint rates between points on the lines of the Illinois Traction System on the one hand and points on the New York Central System on the other, the Interstate Commerce Commission has issued an order involv- ing the following points: 1. That through routes should be estab- lished for the transportation of freight traffic except coal from and to all points on the line of the Illinois Traction System between Ijincoln and Mackinaw, to and from all points on the New York Central System, and joint rates applicable thereto not higher than the rates contemporaneous- ly applied on lil( Id. Trmo J fer Tickets relumed ... ., ., IJd, Trwidir Tickets ., ..- 3d. Paid in Meeeived A1 otot-inyin' i AZ/jmr bv...: Ser-.u Car h e, - lo.. . .. Jos. NOTE. — If you have orried out your duUes properly the amou value of Tkkets sold t of Cash 4>aid in will corTe5poDd with the CONDUCTOR'S WAYBILL MADE FOR A SPECIFIC ROUTE IN CROYDON and he makes due entry of the coupon on his waybill. When the passenger presents the rest of the ticket on the first car homeward in the afternoon, the third con- ductor removes the coupon marked "3" and enters it on his waybill after having punched the destination on the dark or "p.m." side of the ticket. The fourth conductor punches the same side and removes coupon "4" to square his count. What is left is the passenger's standard fare receipt. Naturally, the serial number on the ticket is good as a check only on the first car of the day, but it does not pay to put day and time limits on a ticket of this character. The same ticket may be used as a two- car ticket, in which event no coupon is removed by the morning conductor, but all are taken off by the after- noon conductor. This multi-coupon ticket was gotten out as a special concession to war workers, and the rail- way hopes to do away with it at an early date. In no case are the return-ride privileges available on holidays. All workmen's tickets must be sold no later than 7.30 a.m. The ordinary Id. ticket with special exten- sions of ride is available in the case of workmen's one- way trips in the morning. It is now in order to explain the use of transfers for the ordinary-rate passenger. These are not transfers in the usual American sense of fare receipts giving the passenger an extension of his journey on a second car with no increase in fare. The simplest way to express the idea of what is accomplished by a Croydon transfer is to say that it sells two i-d. rides for Id., two Id.-rides for 2d., and so on, wherever it would be unwise to at- tempt to sell the rides separately because the distance would be so short as to make it seem to the passenger hardly worth while to board the second car. The pros- pective passenger is led to think of his trip as a unit even though he has to use two cars to make the journey. Instead of receiving more for his money, however, the transfer passenger in actual practice gets a little less. Another advantage of the transfer is that it keeps a certain number of people who live on the branch lines from patronizing the buses because once they buy a through ticket they use it on both the branch and the main-line cars. Passengers who purchase a transfer ticket give it up for an exchange ticket on boarding the second car, the second conductor punching the same stage on the exchange ticket as the one he observes on the transfer ticket. As soon as possible, however, the exchange ticket will be abolished in favor of the plan of having the second conductor cancel the transfer against further use by means of a non-registering punch. September 6, 1919 Electric R a i l w ay J o u r n a l 471 At one time an effort was made to place a limit of at least one day on the transfer ticket by using code letters. The complications thus involved did not prove justified, especially in view of the fact that th3 transfer was not a free privilege in the American sense but something that was paid for. The Id. and 2d. transfer tickets of the South Metropolitan Tramway system, however, still carry such markings. In the case of the 2d. coupon transfer used within that company's area, the first conductor punches the letter selected for the day; the second conductor punches the time nearest to the receipt of the ticket and retains the serially-num- bered top coupon as an accounting for the registration of his punch. In addition to relying upon seven ticket inspectors (one of them a woman) for the proper issuance and use of tickets, the management has the conductors ex- amine tickets at the end of every fare stage as a check against over-riding. The latter rule, of course, simply takes advantage of the fact that the conductors at Croy- don are ordinarily not kept too occupied to do this. Placards for passengers as posted in the cars cover three important points in connection with the fare sys- tem: Rates of fare, a suggestion that upper-deck pas- sengers pay on the platform, and a warning as to the statutory penalty for failure to pay proper fare. To conclude the discussion relative to tickets, it mav be of interest to mention the departmental tickets bought at full face value by different departments of the municipality. Each token, which is exchangeable for a standard ticket on the car, is marked with the initials of the department which uses them, as "T. C." for town clsrk, "B. E." for borough engineer, "E. L. D." for electric lighi; department, "R. S." for road surveyor, "F. C." for food controller (of blessed memory), etc. Those tickets which are good for use after office hours are surprinted "A. 0. H." The departments interested receive regular statements, as shown, of the tickets used by them. One of the advantages of supplying the CROYDON CORPORATION TRAMWAYS. Particulars of Through and Company Tickets issued 19 Class of Tickh. Total Issued. Corporation's Proportion. Company's Proportion. No. Vai ri l:.,,,' -■\.MorNT. kATE, AmOUNI. Id Thro Buff Ill id. 2d. „ BJiie& White IJd. 3d. „ Yellow 2d Id 4d. „ Green 2d 2d. Id. S.H.E.T. 1d Id. T, „ Id. 2d..T. ,. 2d 4d. Lns 4d. Corporation Totals Add Company's „ j Net Result for Day | Balance due to for Day I I Excess Miles run by Company's Cars Checked by CUrf C/,'i. DAILY SUMMARY OF TICKETS ISSUED employees with tokens instead of cash is that they are no longer tempted to use their employer's competitor- — the motor-bus. The Ticket Department Although tickets are supplied from a common stock, they are issued according to continuous serial numbers, and the conductors must always work off their own re- mainders. The ticket department and not the conductor estimates the quantity of each kind required. The department records on the waybill the initials, the open- ing and the closing numbers, the quantity, etc. The CROYDON CORPORATION TRAMWAYS. To W. GUNNER, Esq., Borough Treasurer, Town Hall, Croydon. Dear Sir, Tramways Offices, Thornton Heath, Surrey, .- , 191.,..^ DEPARTMENTAL STAFF TICKETS. send you the following particulars relating io the above for the week ending Friday day of.- _ --. /9/ . Yours faithfully. DEPARTMENT. NUMBER USED. TOTALS FOR WEEK. TOTALS TO DATE. Satukdav SUNLIAY MONDAV TUf-SIlAV. Wednesday Thursday. Id. IjJ Id i!d. 1d. i;d Id, m. IL lid. Id. Ijd- Id. I!d, Id. Vaiue. Id. lid Value Town Clerk's Borough Treasurer's Borough Engineer's BoroUgh Road Surveyor's Public Health Electricity Elducation Rale Collector's Weights, and Measures ... TOTALS WEBKI^Y SUMMARY OV TICKETS ISSUED FOR ACCOUNT OF OTHER MUNICIPAL DEPARTMENTS 472 Electric Railway Journal Vol. 54, No. 10 6936 Id A 3861 PENOEA BRlXTOr^ a Si 4(1 (SftR 1586 H 01 L86 -4° ill T •3 = 1 Hi: 0 C = TO > if T> H = 0 » ^ - ft r SOME conductor puts down the opening or top numbers of the tickets returned and ■ fills in on the bottom of the waybill the data con- cerning money and tickets returned. Cash and tokens are turned in by the con- ductors to the receiver sta- tioned from afternoon to midnight at each of the two depots. These receivers sign for the value received and bank the money with- out having it go to the ticket department. The inner side of the waybill prepared for each route is arranged to show the ticket numbering at various points along the route. Ob- viously a report like this is not accurate enough for the busy hours, but it is helpful to the ticket inspector in conducting his check. The registering punch used is made by the Bell Punch & Ticket Company. Few counts of the punchings are required either through inaccurate returns or out-of- order punches. Hardly more than one count a day is made with eighty to ninety conductors in service. With regard to the check on the cars, it may be said that although the ticket in.spectors have other traffic duties, they average sixty to seventy checks a day. Several forms used by the ticket department are re- produced herewith, such as the waybill, the statement of departmental tickets, the summary of receipts for tickets and punches given to the individual conductors, and the daily summary of cash and tickets. Neither the three employees who prepare traffic summaries nor the cash I'eceivers are charged against the ticket system, as they would be needed anyway. The ticket department L0459 2il =11 L0459O ^0459^ D 1259 0 1259 MlLiOKliiaCa.rra A B C m 1 a _ 0 E "e~ 8 Q 10. , 12 itself has but four em- ployees^— namely, the chief clerk, two boys who make out the waybills, and one boy who empties and resets the punches. That the Croydon Corporation Tram- ways should have such good traffic as described earlier in this article is all the more extraordinary in view of the powerful com- petition of the motor bus, particularly on the Norburj' main line. This line would probably enjoy 30 per cent more traffic if the buses were absent. It has to com- pete with three bus routes over its full length in addi- tion to other buses which go over the same route from West Croydon station and Crown Hill to the "Red Deer." For example, on Sunday, March 2, 112 buses were operating as compared to fifty cars. In view of the many pros and cons on this subject, it may be of value to set forth some of the reasons why the bus has proved so dangerous a competitor. Mr. Goodyer has given much thought to this subject, and while the following figures from two of his reports (1913 and 1914) may not be correct to-day, the com- parison of burdens still holds good. COMPARISON OF PUBLIC BURDENS BORNE ANNUALLY BY TRAMCARS AND MOTOR BUSES AT CROYDON Crojim Cor TraiDwa/8. DEPAF JTAL GOOD FO STA6E B.E.° VARIETIES OF CROYDON TICKETS, INCLUDING TRANSFERS, INTERCHANGE TICKETS AND MUNICIPAL, EMPLOYEES' TICKETS Items Car £ s. License duties 2 15 Taxes on track 43 8 Maintenance of road 92 II Petrol tax Motor Bus d. 0 5 If 138 15 6 43 48 '"Croydon is Goodyer and Goodyer is Croydon" would be one way of express- ing the state of affairs at Croydon. Since December, 1901, THOMAS BoYCE Goodyer has been the tramway executive in that city, first as general manager for the British Elec- tric Traction Company, Ltd., when it was lessee of the Croydon Corporation Tramways; then from the termination of the lease in May, 1906, as tramways manager for the municipality. Continuity in office under such radical change in control indicates that Mr. Goodyer must have achieved that object so difficult for an electric railway manager — popularity. Indeed, one does not have to spend many hours with him to learn that the general public want to lay their troubles before him only. He would no more allow a complainant to leave unsatisfied than a good salesman would allow a prospect to get out of the shop without buying. A com- munity like Croydon, where so much of the traffic comes from women shoppers, needs and gets this personal culti- vation. Mr. Goodyer's popularity is equally great among his fellow managers, as instanced by his election last year to the presidency of the Municipal Tramways Association. This honor he fully deserved for the hearty, hustling way in which he throws himself into any matters of general welfare to the industry. Mr. Goodyer's birthplace was Glasgow, but he was edu- cated at the Royal High School, Edinburgh. On leaving school he spent several years with D. W. Paterson, solicitor, and for many years secretary of the Edinburgh Street Tramways, of which Mr. Goodyer's father was traffic man- ager. In 1884, Mr. Goodyer joined the traffic office staff of the London Road Car Company, Ltd., and some months later became manager and secretary of the Northampton Street Tramways. His next appointment was that of man- ager of the West Metropolitan Tramways, part of which is now the London United Tramways. In October, 1887, he resigned to become assistant traffic manager of the Birming- ham Central Tramways, which kept him busy vdth horse cars, cable cars, accumulator cars, steam cars and omni- buses! In 1894 he was appointed traffic manager. In 1896 a new company called the City of Birmingham Tramways was formed to take over and operate the Birmingham Cen- tral. Mr. Goodyer remained with the new company until April, 1898, when he resigned to become the general traffic superintendent of the British Electric Traction Company, Ltd., when that great concern was operating several score properties, aggregating many miles of electric, steam and horse lines. During 1900 he spent several months in the United States and Canada to get a first-hand view of Ameri- can practices. When the office of general traffic superin- tendent was abolished in December, 1901, Mr. Goodyer was appointed general manager at Croydon as noted above. Mr. Goodyer has been a member of the executive counqil of the Municipal Tramways Association for several ^years and is also a member of the council of the Tramways aiid Light Railways Association, which is composed of privately- owned undertakings. Since 1907 he has been honorary secretary to the Metropolitan Association of Electric Tram- ways Managers, and he has also. acted in a similar capacity to the tramways (Board of Trade) local advisory committee for No. 1 area. Metropolitan and East Coast. September 6, 1919 Electric Railway Journal 473 ■00 05 o Q ■H la oi o Z o Q >^ O o El, ►J < m 1 OJ sD r> O — o O ' ^ — — ^ — (0 (fl oO oO r'M-^. Ln>J-\ I f-. o r»-. — CO o u-\ *-H ^ o r*. --o w OJ I OO m «0 O O lA r<> — aO — fl ■ — r"». "5 ^0 sO oO "n o3 bJ3 oo ^ CO r-. C - - - - - - ' I ; a ■ ■ ■ ■ ■ ' I Ph ' <^ rs. o »^ CO t>, (VMj-V iL a,- cn — — ' — ■ — — oS:;: o in in in in in o r^. oo CO CO 00 oo o f m f;^ J (U ^ Tj- in ^« ^ O I ^fl ^Vl m '-> m o ^ ■ moj-^m'^inm^ II ?^ I O O O rs. r«« t>i. CO "-n in rv| in btoQ_oOinr^QO r OO nq — — — O fl O "fl ct^ nj O oO OO CO t-^ (_ — rg — — ■ ' O OO _ rs ^ oo "0 r-^ <^ oO OO rvj X> -O ^ ^ mo.- ■■>.•■ S2 I E I 4> O-^t^rsun — o I ^ P.^ ^ cr\oOOOOOO^ O l u^ ' — p>. , — 0.1 O ■ — c3 o '1- -^rr>."^-^r-*Tf ^3 ■^mr^^'^^o ^ yi^™r<*i^Or««cOsO d 0^■^J-000^0~■00 jIh a> — m — r^r^inrs -I 53775 o "J^ CO m OS oj o ■■^ pn CO 73 ~" — O sD O "-D — 1^ 00 m ^ tsj o o^ 00 00 00 00 (-< r^oo"*o — , 0/ — u-, r-j m — — O ; bO sO ti- o — ^ Oh g oo'oo'fN - (U I M vo . 00 m in '-+^ o o '■cj~» ^ tN 00 — o o - I 1 0) — in OS CO rn ' c3 I P-O — ^ooso^coo^o^ , rncOOMnoonj tfl CO ". I I — CO ^ sO ^ /I J f~j (-M /^i ^1 rvl I .rt £3 a> ri.— I i/i TTt^u-i-^f^oOO QJ c^, rX' 73 H P H In addition to the foregoing items, the Croydon cars for the preceding year had contributed an average of £51 14s. 6d. each toward the taxes, thus giving a sum of £190 10s. per annum per car run or a gross total of £11,095 16s. 7d. as a contribution to the local revenue. After pointing out that most of the vi'ages earned by the Croydon Tramway employees were spent in the com- munity, Mr. Goodyer showed the following: HOW TRAMCARS IN THE METROPOLITAN AREA ARE HANDI- CAPPED IN COMPARISON WITH MOTOR BUSES Motor Buses Free to go anywhere at their option Provided and maintained from taxes. Repaiis paid for by the general taxpayer. Control Track Workpeople's Fares Tax on track Traracars Permitted to run only on routes san?tioned by Par.'iamcnt Provided and maintained by the tramway system. Damage done by motor buses and other traffic repaired at cost of trams. On all routes None Tax paid on track None In concluding his 1913 report, Mr. Goodyer quoted a former official of the Board of Trade who stated in a report on "Means of Locomotion and Transport in the Penalty for avoiding payment of fare, or for wilfully travelling beyond the distance paid for Forty Shillings. (Tramways Act, 1870) PAYING FARES ON PLATFORM Passengers upon joining Cars at non-busy points and intending to travel on the outside, are respectfully requested to pay their fares on the platform. rL-BRU.iRy. 1919 TWO IMPORTANT CAR CARDS USED IN CROYDON Metropolitan Area" : "Where the streets have ample width and the conditions are otherwise favorable, the tramway has no rival for the safe, convenient and cheap tran.sport of large numbers of people." In his report of June, 1914, Mr. Goodyer again di- rected attention to the depredations of the bus and quoted verbatim testimony which showed how destruc- tive the bus was proving to the roadways of London, in one case the cost of maintenance having doubled. The report stated that following the initiative of Croydon, the communities of East Ham, West Ham, Leyton, Bex- ley and Walthamstow had passed resolutions to be sub- mitted to the Prime Minister and the President of the Board of Trade recommending legislation that would place motor omnibus companies on terms of equality in regard to public obligations with the municipal tram- way authorities in the metropolitan area. In connection with evidence presented before the select committee on motor traffic in 1913, it had been stated that if the London motor omnibus proprietors had to pay a contribution towards track and road main- tenance, and a tax on the track, equivalent to what the London County Council Tramways had to pay (£200 per vehicle), it would amount to about £600,000 per annum. It was asserted that the existing conditions were mani- festly and monstrously unfair. 474 Electric Railway Journal Vol. 54. No. 10 The work of impressing such facts upon the govern- ment, so as to secure remedial legislation, was inter- rupted by the war. Efforts are now being made, how- ever, to bring the subject to the attention of Parliament. European Electrification Proposals British Plans in Abeyance, Pending Government Action — France Has Commission at Work — Belgium Has Approved Several Undertakings By Alexander McCallum London THE subject of electrification of steam railways is engaging earnest attention at present in Great Brit- ain, France and Belgium. In the first of these coun- tries, however, nothing can be done pending the passing of legislation now before Parliament. In France the subject is complicated by its forming part of a gigantic scheme of national reconstruction. In Belgium only does it seem likely that a very early start will be made. Great Britain The conversion to electric traction of steam railways in England and Scotland- where such a course seems advisable, is a part of the policy of the present British government. There is, however, no prospect of any- thing definite being done until two bills now before Par- liament have been passed and until the administrative machinery which they set up has been got into working order. These measures are the Ministry of Ways and Conmiunications bill and the electricity supply bill. As most readers no doubt know the former creates a minis- try which will have charge of all means of public loco- motion and the latter establishes a national electric sup- ply which will also be under the supervision of the new ministry. The ways and communications bill is now being discussed by the House of Lords, many of the members of which show a hostile spirit to it and it is not at all certain that there will not be a conflict between the Lords and the House of Comm.ons on the subject. The electricity bill as yet has not got beyond the House of Commons and it also is meeting with much criticism. In the end of July the government adopted an important amendment under which railway companies' existing generating stations will be exempted from the general transfer of power stations to the national scheme. British railway companies, in the meantime, will do nothing to inaugurate electrification. They are and will be for two years under government control and at the end of that period no one knows what will happen. That is to be decided in the interval by the new minister. Hence no avoidable capital expenditure will be under- taken by the companies. But if the two bills are passed without substantial wreck, the minister is expected, in collaboration with the companies, to inaugurate electri- fication. No definite plans have yet been formulated; in fact, the heads of departments who have been pro- visionaliy nominated for the ministry do not really exist as such until the bills have been passed. An early scheme will no doubt be the electrification of the main line from London to Southend, a distance of about 40 miles, for which Parliamentary powers already exist. Another definite plan will be the conversion of the South Eastern Railway from London to Dover, more than 70 miles, provided that the Channel tunnel scheme goes forward as it promises to do. The French authorities have just approved it. As for the rest, the prospect seems to be one of suburban electrification gradually car- ried further and further out from the great cities, and in some cases at least ultimately meeting and joining up. Under the electricity supply bill £20,000,000 is provided for the erection of super-power stations and main trans- mission lines to be used for all power purposes, and £25,- 000,000 is allotted for financing the proposed district electricity boards and joint electricity authorities who are to take over existing generating stations and main transmission lines and work them into the scheme of great new stations to form a national system. As to the method of traction which will be employed, there can hardly be a doubt that in very many cases at least it will be the direct-current system, though noth- ing has been formally decided. Apart from a short local line at Morecambe in Lancashire, the only example of single-phase system of traction in Britain is that on the suburban lines of the London, Brighton and South Coast Railway. Though this has been in highly suc- cessful operation for several years, the steam railway electrifications which succeeded it like those which came before it have all been direct current. France Nothing very definite has emerged in France. An elaborate report by the Higher Council of Public Works was issued last spring dealing with many subjects be- sides railway electrification. Numerous committees are carrying on investigation on a variety of subjects and one of them, as already reported in this journal, has been investigating electric railways in the United States. The conversion of thousands of miles of main-line rail- ways in France is contemplated, but according to the latest information no definite steps have yet been taken. Belgium It is different in Belgium, despite the way in which that country has been ravaged by the war. The Belgian government has had several reports with regard to power distribution. Though interrupted by the war a commission has long existed for the study of the elec- trification of the Belgian State Railways. In the early part of this sum.r.er the Belgian government approved a report by this commission in favor of carrying out the change. Four experts were appointed to work on the subject, and it is expected that the railways first to be dealt with will be those from Brussels to Antwerp, Brussels to Luxembourg and Brussels to Ostend. There is talk of the work of conversion being begun next year. Direct-current traction is to be employed at 2400 volts and either third-rail or overhead conductors will be used, according to circumstances. A very frequent service of trains is contemplated. In connection with the Eighth Annual Safety Con- gress which is to be held in Cleveland Oct. 1 to 4 in- clusive, the safety exhibit will be held in Grays' Armory. The entire space has been contracted for, and there will be seventy booths in which will be shown types of safety equipment applicable to every industry. A feature which will be of particular interest to electric railway men will be a shop-lighting exhibit to be con- ducted by the National Lamp Works, to which has been assigned the entire stage of the armory. A shop will be shown in operation, with three lighting installations varying in quality from the point of view of safety en- gineering. September 6, 1919 Electric Railway Journal 475 Progress on the Midi Railway Pyrenean Electrification An Ultimate Electrical Mileage of More than 500 Is Involved in This Important Development, Which Was Greatly Hampered by the War By LUCIEN a. H. PAHIN Pontoise. France FOLLOWING the negotiations which resulted in the concession making possible the railway line across the Pyrenees Mountains, the Midi (South- ern) Railway in France undertook, in 1905 and 1906, the preparation of electrification projects of which a part are now completed. Electrical operation was de- cided upon because many of the grades involved would have been insurmountable by steam locomotives. While the new lines were being developed, in order to insure the most rational development of the main line between Toulouse and Bayonne (on the Atlantic coast) and its branches, it was decided to substitute electric traction for steam on a number of lines of the system already in operation. On the accompanying map may be seen the following lines or sections of lines which have been electrified up to the present time: (1) Foix to Ax-les-Thermes and to the Spanish frontier, 504 miles, the French part of the Trans-Pyrenean line from Ax- les-Thermes (France) to Ripoll (Spain). (2) Montrejeau to Pau, 70 miles, a section of the line between Toulouse and Bayonne. (3) Montre- jeau to Bagneres-de-Luchon, 22 miles. (4) Lannemezan to Arreau, 15i miles. (5) Tarbes to Bagneres-de-Bigorre, 13i miles. (6) Lourdes to Pierrefitte- Nestalas, 13 miles. (7) Pau to Oloren — Ste. Marie and to Laruns-Eaux-Bon- nes, 34 miles. (8) Auch to Lanneme- zan, 43i miles. (9) Arreau to Saint-Lary and Vieille- d'Aure, 7 miles. (10) Pau to Hagetman, 33 miles. (11) Oloron-Ste. Marie to Bedous and the Spanish frontier, 32^ miles, the French part of the line across the Pyrenees between Bedous and Jaca. The sections next to be completed will be those from Montrejeau to Toulouse, 644 miles ; from Toulouse to Foix, 52 miles, and from Boussens to Foix, 50 miles. Most of these lines contain grades up to 4J per cent. All of the above track is standard gage. The lines, however, connect with two of meter gage (3 ft. 8.4 in.), that between Villefranche-de-Conflenz and Bourg- Mad- ame, and that between Castlenau-Magnoac and T irbes. The Midi Company adopted for power supply to the trains single-phase current at 12,000 volts, distributed over an aerial line with catenary suspension. On the important lines the passenger and freight trains will be drawn by electric locomotives equipped with motors of 600 hp. or the equivalent, and weigh- ing about 88 tons (2000 lb.) of which 59 tons is car- ried by the three driving axles. f The type of chassis of the locomotive, number of axles, wheel arrangement, etc., were specified by the railway com.pany. As was covered in the technical press before the war, the railway company and the manufacturers were at the time studying carefully the details of electrical equipment best fitted for the op- erating program prescribed by the railway, but neces- *For more detail reKarding the pre-war status of this electrl- flcation see Electric Railway Journal, Feb. 15, 1913, page 288 ; May 3, 1913, page 792; June 14, 1913, page 1067 ; June 3, 1916, page 1040. tNoTE. — We assume that the power capacity of the locomotive is subject to modification in the light of the experience now being had with the electric locomotives which are in service. — Eds. MAP OF PYRENEAN SYSTEM OF MIDI RAILWAY, SHOWING ELECTRIFICATION PROGRESS sarily the tests which were then under way were inter- fered with by the beginning of hostilities. On the branch lines, as well as for the local trains on the Toulouse-Bayonne line, the railway expects to use single-phase, multiple-unit cars equipped each with four 125-hp., 285-volt, 15-cycle motors. These coaches, of which a number are to be furnished by the French Westinghouse Company, will weigh about 61^ tons. As a whole the work undertaken by the Midi Com- pany, in co-operation with the government, for the electrification of the Pyrenees system involves nearly 530 miles of route. The undertaking may be consid- ered, in magnitude, as one of the most important in Europe. The results obtained to date on the electrified parts of the system are excellent, but actual operating data are not yet available because since 1914 the train serv- ice given on all of the French lines has been quite ab- normal. Furthermore, the power plants of the Midi Company have furnished electric power to various fac- tories working for the national defense, henjv, L.ey 476 Electric Railway Journal Vol 54, Nq. 10.' have operated under conditions different from those normal in a railway power plant. Later it will be pos- sible to obtain data of value regarding regular opera- tion, and as a result of the tests which were inter- rupted, or at least disturbed, by the outbreak of hos- tilities on Aug. 1, 1914. The electric power supply for the Midi system in- volves a number of plants, principally of the hydraulic type. The Pyrenean region abounds in water powers of high heads, well located for the purposes of the rail- way system. Some detail of the principal hydro-elec- tric plants will be given in a later article. The Three Types of Locomotive Now in Trial Use Readers of this paper will remember that prelimi- nary tests of six types of locomotives were held by the Midi Company near Villefranche in 1911 and 1912. As a result three types were selected as satisfactory, and machines of these types have been in service dur- ing the war period. In view of the importance of these WVWW-' Compensating Windings Series Operation Repulsion Opei-ation SCHEMATIC DI.\GRAM OF SERIES COMPENSATED MOTOR CONNECTIONS FOR MIDI R.\ILWAY LOCOMOTIVE service trials it will be well to review briefly the prin- ciple characteristics of the locomotives. The locomotives now in use were purchased from three companies, which for brevity may be te'rmed the Jeumont, the French Thomson-Houston, and the French Westinghouse companies respectively. The character- istics of their machines are detailed briefly in Table I. All of the locomotives have the 2-6-2 wheel arrange- ment, but differ in method of connecting the driving wheels and motors, and in other details. The Jeumont drive involves three 400-hp. motors geared to the driving axles through flexibly-mounted quills. This drive was described and illustrated in the issue of the Electric Railway Journal of Feb. 15, 1913. The Thomson-Houston locomotive contains two 600-hp. slow-speed motors. Each drives a jackshaft through cranks, and the jackshaft cranks are con- nected at the ends of the connecting rods which also tie the three driving axles together. In the Westinghouse machine each of the two 6C0-hp. TABLE I— CHARACTERISTICS OF MIDI RAILWAY ELECTRIC LOCOMOTIVES (Approximate Data) Jeumont Thomson-Houston Westinghouse Length of locomotive over bumpers 46tt. 9^in. 45 ft. Length of cab 41 ft. 4 in. Height of cab above rail. ..... . lift. 65 in. Height over pantograph, raised 21ft. 4 in. Height over pantograph, lowered... . 14^t.9Jin. Diametc r of ii iving wheels. .. . 4ft. 7 in. Diameti r of pony wheels 3 ft. in. Distance between centers of outside motor axles . lift. lOin. Weight p-^r driving, axle, tons of 2000 lb 19 .8 Totalweight, tons". 95 . .... 97 Maximum spted, m. .hi 46.6 48. 4 ft. 3J in. 2 ft. 9^ in. 12 ft. 10 in. 37 ft. 3i 34 ft. II 12 ft. 8 i 3 ft. 1 1 in. 13ft. Uin. 19.8 ^9 • 46.6 motors drive a jackshaft through gearing, and the two jackshafts are crank-connected to the connecting rods which join the drivers. The Thomson-Houston and Westinghouse drives were shown in detail in the issue of this paper for May 3, 1913. The program of operation laid down by the railway specified that the locomotive should be capable of draw- ing a 440-ton train up a 1.7-per cent, grade, and of attaining a minimum speed of 25 m.p.h. with a 308-ton train and of 37 m.p.h. with a 110-ton tram. In descending a grade the motors were required to act as generators, returning power to the line, and the speed in descending a grade was to be capable of con- trol from that fixed by the ascent of this grade to one- half of this speed. Motors Are of the Series Compensated Type Although the details of the motors and controls were discussed in the European technical press when the preliminary tests had been completed, and an abstract from an article in the Elektrotechnische Zeitschrift was printed at the time in the Electric Railway Jour- nal, it is worth while at this time to summarize the control principles employed particularly because the method by which the locomotive is made to regenerate power is of great interest. The Jeumont control may be taken as typical ; it operates briefly as follows : The motors are of the series compensated type, and the rotor does not differ in construction from the armature of a direct-current machine. The stator, however, comprises three distinct windings: A series winding of one turn per pole, a compensating winding and a commutating winding mounted in the same slots as the compensating winding. The accompanying fig- ure shows in simplified form the motor connections. It will be seen the commutating winding is connected in parallel with the compensating winding and the number of turns in each is so arranged that when the currents which flow in the windings superimpose their magnetic fields they produce a suitable commutating field in the armature turn which is short-circuited un- der the brush. This field, of course, opposes the field which is produced by the short-circuited turn. By proper designing it has been possible to secure good commutation over wide limits of current. In the series connections of the motors it is possible by means of the control to subject each to a voltage' varying from 67 to 230. For use in starting and run- ning at low speed the connections are so arranged that the motors act as repulsion motors. The commutating windings of the motors are con- nected in parallel and produce a rigid electrical coup- ling. If one motor tends to revolve faster than the other, its commutating winding becomes the source of a voltage higher than that in the corresponding wind- ing of the other motor. A circulating current results in the commutating windings in such a direction as to speed up one motor and restrain the motor of higher speed until speed equality is re-established. For regenerative operation there is substituted for the series excitation of the motors an independent ex- citation, which however forms an integral part of the system. The motors operate as shunt generators with the frequency of the exciting current, which is the same as that of the line, producing a voltage deter- mined by regulators whose voltage determines their ' speed of operation. September 6, 1919 Electric Railway Journal 477 In regenerating, as the motors operate in parallel with the alternators of the system, it is necessary that their voltage have a proper value and phase relation vv^ith respect to the line voltage, as well as a proper relation to the speed of the locomotive. For control of voltage magnitude an induction regulator, automatic- ally operated, is employed. Some Important Phase Relations The phase control is roughly as follows: The electro- motive force induced in the motors by rotation is in phase with the exciting flux, and this is itself in phase with the current in the inductors, displaced about 90 deg. from the voltage at the terminals of the latter. The exciting voltage in the inductors of the motors is therefore displaced by 90 deg. from the line voltage by the aid of an auxiliary winding placed on the stator winding of the compressor motor at 90 deg. space dis- placement from the power or torque-producing wind- ing fed by the system. There is thus impressed on the terminals of the motor inductors a voltage nearly in phase with that of the low-tension side of the transfor- mers. When the motors are supplying current as generators, the reactance of their winding throws their voltage out TABLE III— LOCOMOTIVE TEST DATA SOULOM POWER PLANT OF THE MIDI RAILWAY, SOUTH- WESTERN FRANCE of phase with that of the line. The reactance of the motor circuit, of course, includes that of the trans- formers also. This reactance is about three times as great as the resistance, so that as generators the motors operate with a powerful de-phasing effect, considerably reducing the torque. To reduce the phase displacement between current and flux, the motors are excited with a voltage displaced more than 90 deg. from that of the line. This result is obtained automatically by the use of a compounding transformer which displaces the phase of the primary voltage of the transformer. Some Test Results Secured Some tests were made to determine the resistance of the Jeumont locomotive by determining the loss in speed while traversing a course of given length under its own momentum. Results are shown in Table II, which gives the resistance in pounds per ton. Ob- viously the resistance thus obtained includes all com- TABLE II— LOCOMOTIVE RESISTANCE AT VARIOUS SPEEDS Speedinm.p.h 3.1 6.2 9.3 12.4 15.5 18.7 21.8 24.9 28.0 31.1 Resistance in pounds per ton 7 5 7 6 7 8 8 .2 8 ,6 9 .0 9 5 10 .0 10 7 118 Weight Spend Moved, in in Tons ra.p.h. 309 1 10 25.5 37.9 Power Absoibed, i n Kw. 1,100 850 Line Volt- 10,300 1 1,300 Current in Amp. Hiph- Low- tension 120 83 Power Factor, tension percent 1,625 1,100 90.0 91.5 Low- tension Voltage 650 700 ponents including that due to irregularities in the track. Results obtained in drawing loads on a 1.7-per cent grade, containing a number of curves, are given in Table III. With the voltage raised to 12,000 the correspond- ing speeds were 22 m.p.h. and 30 m.p.h. for the two train weights respectively. The power factor was slightly better also. With a 280-ton train the power returned to the sys- tem was about 400 kw. on a grade of 1.7 per cent. The power absorbed in driving the same train on the same grade and at the same speed was 1020 kw. Thus the coefficient of regeneration or recuperation was 39.2 per cent. The Westinghouse locomotive produced a tractive ef- fort of 33,000 lb. or more, and the following results were obtained with a 280-ton train: speed, 26 mp.h.; power developed at the wheel tread, 950 hp. ; power ab- sorbed, 970-kw. ; line voltage, 11,000; current. 100 amp.; power factor, 88 per cent; efficiency, 72.4 per cent; ap- proximate tractive effort, 13,500 lb. New Franchise in Paducah SOME new features as regards an electric railway franchise are contained in a settlement measure passed by the board of commissioners of the city of Paducah, Ky., on April 4, 1919. The franchise has not been accepted by the Paducah Traction Company, the electric railway in that city, because the company is now in the hands of a receiver. The reorganization managers for the bondholders' protective committee are Stone «fe Webster, and the property is being operated by A. S. Nichols. The company was consulted in the draft of this franchise, however, and it is expected that the franchise will be accepted after the company has been reorganized. With the exception that a maximum fare of 6 cents for the first year is specified, the franchise is on the service-at-cost basis, with a review of the earnings every twelve months to determine the fare to be charged during the next twelve months. In this determination the ordinance provides that the company is to receive a sufficient sum to pay operating expenses and a reason- able rate of return on the capital invested, all earnings over this amount to be paid to the city. The city has the right to regulate the service, provided such regu- lation does not "impair the present or future ability of the company to earn a reasonable return on the value of its property." No paving is required except that the company must provide the pavement foundation between its rails and for 1 ft. each side, the surface paving being provided by the city. Another important feature of the fran- chise is the specification that the cars shall be entitled to a right-of-way on its tracks, and vehicles on or close to the tracks must turn out whenever a car approaches. In case of refusal to do so when signaled or requested by the trainman, the driver of any vehicle is subject to a fine of $10. Also, the right is reserved to abandon unprofitable lines upon proof of the fact and approval by the city authorities. ■ ' \' ; 478 Electric Railway Journal Vol. 54, No. 10 Typical Zone Tickets from Abroad e 13 lliil J e. lid. i 11 passrgfjrro d' ve pre- ^F^^^Sfnlarc opei io ques'o bi- in difftio fi" lieve ai-'jut- li/i/r-* Hit altro. Cenlesiiul 20 3 1 S i 3 " e S £ -i s I e Concokezzo iiorni 1 LiNEA CIRCOLARE itij ~\ Sezioni 1 2 1 2 3 4 5 6 7 Piarza IndipondHza 8 3 Stazione Cintrale 8 7 6 5 4 3 2 1 "i" To 4 5 6 i_ • PcrtaJjalB Pel'ITJorDio 11 "# 13 14 Ts 8 Politaama 16 17 18 9 PBiti Oiriiu 10 Piazza iDdipifltiinza 19 31 J 25 830 20 21 b Capo 1 Posiiliiio I V. CosTa" |V. Cappella IDonn' Anna 1 Barbaia jl Torratta TRAMWAYS NAPOLETANI j 'viii'orjFV A ,.,11, II l,,-ti,-ir,. ,l.'v<' nil,, .-la. CtnitiiB.i 30 Ferdinando = 14594 , Posta , i PiaizaSettef 5eptEinbre I. rciTorsii ili 5 Scziiiiii Conf lollo 1 lll,IIJtl«IIIIIUI^ No. 1 — Unione Italiana Tramways Elettrici, Genoa, Italy. No. 2 — Societa della Tramvie di Torino, Turin, Italy. No. 3 — Tramvie Interprovinciali, Milan, Italy. No. 4 — Neapolitan Tramways, Naples, Italy. Nos. 5 and 6 — Sicilian Electric Service Company, Palermo, Italy. No. 7 — Societa Elettrica Comense, Como, Italy. No. 8 — Lombardy Road Railways, ililfin. Italy. No. 9 — Municipal Tramways, Amsterdam, Netherlands. No. 10 — Rotterdam (Netherlands) Tramways. No. 11 — First Dutch Electric Tramway, Haarlem, Netherlands. No. 12 — Hamburg (Germany) Electric Street Railway. No. 13 — Municipal Tramways, Potsdam, Germany. No. 14 — Commutation Ticket, La Sociedad-Comercial, Montevideo, UrugUo V. No. 15 — Ordinary Ticket of Same Company. No. 16 — Anglo-Argentine Tramway, Buenos Ayres, Argentine. No. 17 — Municipal Tramways, Vienna, Austria. September 6, 1919 Electric Railway Journal 479 Typical Zone Tickets From Abroad Exhibits from Europe, Asia and South America Show Use of Three General Types— "Duplex," "Check-Stub" and "Fixed-Amount, Ride-Limit" By FERDINANDO C. CUSANI Milan, Italy THE necessity of adopting a zone fare to meet ever- increasing costs has brought many American operators face to face with an abrupt change from the almost automatically computable and easily collect- ible universal fare to the complicated zone fare. And the zone fare, unless it be carefully tackled, threatens to impair the efficiency of prepayment in all of its dif- ferent forms. The only zone plan that can be easily effected, with- out considerable change to the existing prepayment cars and their fare collection equipment, seems to be the "pay-enter-pay-leave" advocated by Professor Richey, with two zones, and one or two registers, depending on whether the zones have the same or a different price. The plan of using a multiple fare register, while it may be the most simple solution from a purely technical standpoint, does not appear perfect, as it does not afford absolute protection from overriding. Such a plan gives no proof that any individual passenger has paid his fare up to the point where he wants to leave the car. On the other hand, the system of making passengers pay the initial zone fare first, and of collecting addi- tional zone payments at the beginning of each succes- sive zone by means of a portable register, may be per- fectly good on old-type cars. It would be, however, a rather difficult practice on modern cars, where the door and step control and other safety devices require that the conductor be always stationed on the platform. The Public Service Railway front-entrance rear-exit postpayment plan, though requiring totally different and rather cumbersome fare registering equipment, seems the only way of dealing correctly with the situation, provided four-door cars be available. As this does not always happen to be the case, many electric railway operators seem inclined to take up the European plan, by which a receipt is issued to each passenger upon col- lection of the fare. A review of the most used types of tickets or fare receipts, therefore, may be of interest to these officials and, in general, to anybody connected with the fixing of fares and the supervision of rapid transit traffic. The receipts shown herewith will give a fair idea of the efforts of many properties to handle the zone-fare prob- lem. It has been deemed inadvisable to include a de- scription of the British stage-ticket plan, inasmuch as this has already been dealt with in both a pleasant and a very exhaustive way by Walter Jackson in his series of articles on "The Zone Fare in Practice." Three General Forms of Tickets All zone tickets can be traced down to three general forms, viz.: the "duplex," the "check-stub" and the "fixed-amount, ride-limit." The first type consists of two tickets printed in such a way that when the first is folded against the second and punched all punches ap- pear also on the second, which remains in the ticket book for checking and accounting purposes. The sec- ond type, which is much similar to a ticket widely used on American railroads as a conductor's receipt for fares collected aboard the trains, the value of the fare col- lected, being determined by the point at which the stub is made when the receipt is torn off. The third type requires as many tickets as there are different rates of fare, each bearing printed marks for punching to show the limit of ride. Receipt No. 1, issued by the Italian Union of Electric Tramways, Genoa, Italy, is of this last type, a single punch being required to show the limit of ride. Receipt No. 2 is a duplex universal ticket used by the Turin Tramways on one of its interurban lines. The two square punches, which were made by the conductor at the moment of sale, showed what the ticket was worth as a single-trip receipt; the triangular hole, punched by the traveling ticket examiner just before the pass- enger reached his destination, indicate that the receipt was void thereafter. If this same ticket had been used as a round-trip ticket, the conductor v/ould have punched either in the first column on the left, showing return' rates to and from Chivasso, or in the second, giving the same from Turin. In each case he would also have had to punch the month and the day of issue (this last by using one of the three big and one of the ten small numerals at the bottom of the slip). On the re- turn trip the conductor of the second train would have punched the returning train's schedule number under the heading "Treni di ritorno." Receipt No. 3 is a duplex ticket used by the Interprovincial Tramways, Milan, Italy. It is good for a 30 centesimi ride between the two stations punched; a time limit punch is pro- vided, and the date is rubber stamped on the back. Receipt No. 4, of the Neapolitan Tramways, Naples, Italy, is of the ride-limit type; it has a zone-fare tariff printed on its back. Receipt No. 5, of the Sicilian Elec- tric Service Company, Palermo, Italy, is a zone-fare transfer from a belt line to a radial line; it carries both a time and a date punch. Receipt No. 6, from the same city, gives the right to a continuous ride on four zones, the number of sections in which the line is divided being shown on the back. Receipt No. 7, of the Como (Italy) Electric Power Company, is a simple two- zone ticket with a ride-limit punch. Receipt No. 8, of the Lombardy Road Railways, Ltd., Milan, Italy, is a "check-stub" receipt requiring a pair of scissors for use. Tickets of this sort have been nick- named "pair of pants" by the employees. Nobody seems to like them much, for they require high calculating powers for issuance, payment and checking. The price is the difference between the amount printed near the point of origin and that shown near the point of desti- nation. The time limit at the top is punched by the ticket examiner. Only part of this ticket is shown. Under the old plan used by this same company, the 480 Electric Railway Journal Vol. 54, No. 10 conductor would issue a ticket for a given number of zones, and the ticket examiner immediately following him would punch it and remember the passenger to whom it had been issued. This same examiner would pass before reaching every station and gather in all tickets due at that station. In case of any dispute aris- ing between the examiner and the passenger as to the limit, a look at the day card, on which the conductor had been required to write down, after passing through the train, the top numbers of all the ticket books, would suffice to show after which stop the receipt had been issued. This plan, although requiring two employees (the light railways laws required, anyhow, that on the difference) must be an art not totally unknown to the Dutch conductors. Receipt No. 11 is a 74-cent zone ticket "good for one ride of at most three kilo- meters" on the belt railway of Haarlem, Netherlands. Receipt No. 12 is for a 10 pfennig zone on the Ham- burg (Germany) Electric Street Railway; it may be used as a straight fare receipt or as a transfer from route 15 to any connecting line. The zone numbers are shovra in red, and a time limit is provided in the outer columns. Tickets in Dresden, Frankfurt, a./M., Mainz and Cologne are, more or less, of the same pattern, but the Potsdam Municipal Tramways tickets (Receipt No. 13) are of the simple zone-limit form. sltLlnlant Viliosllgtt (llrfi)-iiII-Mftrln'Tfr. laitauy. B1|JappJl^ ((07(111 ues^Slya tirsDSin- VONALSZAKASZJECr llil.r(iil-|l*r-k»iiiil-lrt Ijpp*t— r.foi ttin\ iiiia Kh«illu»-ttr-Sai||hlrl Sa. I. IJili.-Hallti Vyufluli [>. iilliai CO Iliingulii'Ul P«0»"I1|. r«ii. Krletif^ld V, s,..,.| Jaim cn Harailliij iif^i liiilli.l rf9 10111 1 12|13|14il5| 161171 181 19|20|21|22|23|24 eols Bosch Cli, de I Cr:. de | Forte tir PJamuc | Porte de ] lltp-M de ISchaerLet-k Vieiirgat CtArleroi ou Place Hoyale Schaeri>e€k]Si.hae/l.eeli (Mat. tiai) 4128 PersooQllJk kaartje af te gevea op elk zuelf, IS 10+5 5+10 (5+5+5) 15 4 I 5 (6 1-7 I 9 I 10 I n I 12 1.13 I 14 15 ! 16 1 JZ L-18 1 19l^0121,l?2J23i24| 1 k25 -26 L27 ^30 ^131 20 OK OM SP5 Vy.i 12 3 4 , 5 ^ t! nihy. 6 7 m iV 1 2 2 1 O 38885 4|0|U T T 1 8 9 1 'J 1 3 1;2 3 V VI 1 1 3 o 7 S 1 !) 1011jl2 s LD i:! 14 1.1 10 VII 1 2 3 F M Is W .J II 1 2|3 VIII 1 2 3 G V L iy,20i*i 12 T!ii3 IX 1 2 3 T 1 l.|2|3 i 1 2 3 z 2;i,23|24 11 XI 1 3 3 B. % B. Hin & Rifckfahrt. 6eni Hon IIJJIUSJDJ EofeDacbt I"* Worb 31 8 437 22 19 S DE CCHSTiNT)N0f>1.t i 'i I . ^ t '. •s <^ \ I'. 08( 317 Pprai B 40 ^ i ^ ' 0~ r. i H i "1, ! _ i Ct,t 1 Pttrac'.e 2 «rch».«- ch« gui CoftJeliers 1 a I'dvenus de Ncadlei 1 ' Pont Morand a la o^ie LrotKau> 1 Coura Vllton lU Mont- 1 Monl- a u 'uc Choieuil Per.sche e 0 Ci» O. T. u CO LlSie: le-Coril8liers-Parc-Pemcli6 III D' CM i Cc biiiet Jolt flp Uae sectiuD cu^ja. u.c: jiUL'te ^:ciuuie eatlere. 3 23 No. IS — Budapest (Hungary) Tramways. No. 19 — Prague Czecho-SIovachia Tramways. No. 20 — Tramways Bruxellois, Brussels, Belgium. No. 21 — Constantinople (Turkey) Tramways. No. 22 — Berne-Muri-Worb Tramways, Berne, Switzerland. No. 23 — Lyons Tramways & Omnibus Company, Lyons, France. No. 24 — Tokyo (Japan) Motor Bus Service. Typical Zone Tickets from Abroad steam interurban trains without air brakes at least two train employees be provided), was very simple from the checking and accounting standpoint, as it entailed only the checking of the opening and the closing numbers of each ticket book. It was abandoned on account of the company passing under the control of another inter- urban systems where the "pair of pants" forms were already used. Receipt No. 9 shows a. 7h cent ticket of the Municipal Tramways, Amsterdam, Netherlands, the three num- bers in the corners being those of the sections in which the lines are divided. Receipt No. 10 is a duplex of the Rotterdam (Netherlands) Tramways used on the Hoorn-Enkhuizen suburban line. Advice to the pas- senger reads as follows: "Conductors must tear off tickets in sight of the passenger" — which may mean that the double-punch trick (punching the ride ticket in one way and the stub ticket in another, and pocketing Receipt No. 14 is a monthly commutation card for sec- tion "Union y Maronas" of the Montevideo (Uruguay) Commercial Company, and Receipt No. 15 is a zone tick- et. The fare inception point is ascertained through reading the day cards ticket sales record, which must be filled in after the passing of each section limit. The right-hand half of the ticket may be torn off by a travel- ing ticket examiner. Receipt No. 16 is a straight fare ticket of the Anglo-Argentine Tramway, Buenos Ayres, Argentina, its distinction lying in the fact that it is issued through a device — resembling the British bell punch — which is carried by the conductor. The Municipal Tramways, Vienna, Austria, receipt (No. 17) shows what appears to the writer to be a useless complication, all the time-punch numerals be- ing printed under each of the week days. In fact, these tickets do require a lot of patience and attention on the part of both the conductor and the rider. The September 6, 1919 Electric Railway Journal 481 Budapest (Hungary) Tramways ticket (No. 18) has zone number marks on the outside, a thirty-one day and a 6 a.m. to 11 p.m. time limit column, route in- dications and, in the inner part, ride-limit and transfer- point marks. As with a number of other tickets, the conductor indicates the point to which fare has been paid by tearing a piece out of the fare receipt. The Prague (Czecho-Slovachia) Tramways ticket (No. 10) shows day, hour and thirds-of-an-hour limits. Receipt No. 20, a transfer used by the Brussels (Belgium) Tramways, is remarkable irtasmuch as the fare can be split up in a number of rides, as shown by the numerals with plus marks. The Constantinople (Turkey) receipt (No. 21) is worth a fixed amount and is good both for first and second-class travel, giving a right to ride on longer zones in the second than in the first. The Berne-Worb (Switzerland) tickets (No. 22) are duplexes; the conductor must punch both parts under the eyes of the passenger and tear off the check part, putting it into a sealed box which he carries and which will be opened upon his return to the carhouse. The Lyons (France) ticket (No. 23) is a simple ride- limit receipt; the Lyons Omnibus & Tramways Com- pany uses a special time printing stamp for canceling transfers. As for the Tokyo (Japan) Omnibus ticket, it may be understood that it contemplates the fixing of zones; but as it happens to be, well, plain Japanese to the writer, he will be glad to give up its full interpretation to some of his more learned readers. The Graduated Fare at Brisbane, Australia By J. S. BADGER , Managing- Diiector Bi-isbane Tramways Company, Ltd. BRISBANE TRAMWAYS AND SECTION POINTS Mr. Badger Says That the Adoption of the Universal Fare Would Provoke a Riot! In 1918, Collections Were 45.15 Cents Per Car-Mile With 60 Per Cent of the Riders Paying Only 2 Cents Each I WANT to emphasize first that the section fare sys- tem, as in operation in Brisbane, Sydney, and English and Continental towns is, strictly speaking, different from the "zone" (central area) system as discussed in America. The section system simply means that the passenger pays according to the distance that he travels. Certain points called "section points" or "stations" are established with a uniform fare of Id. (2 cents) between any two points. We endeavor to make these sections or stages as nearly 1 mile in length as practi- cable, but in order to locate these at points where traffic naturally concentrates there is necessarily some vari- ation. The general rule in Brisbane and Sydney is that the outlying or suburban sections are rather longer than in the center of the city in what is properly the retail shopping district, from any point in which the through fare in any direction is only 3d. (6 cents) if paid at one time, although the distance may cover three to five sections. The accompanying map shows the Brisbane Tram- ways lines, together with the section points. The va- rious routes correspond with the chart, on page 482, which shows the routes and section points all drawn to the same scale. As a rule, cars stop at all intersecting streets except in a few cases, and in the middle of long blocks in the center of the city. Our stopping places average about fifteen to the mile in the city. Our purpose is to en- courage the short rider and to make the tramway approach as nearly as possible to a moving sidewalk. All section points are compulsory stops. Other stops are made only on signal. In operation the section system tends to concentrate traffic at a few principal points, especially morning and night, when many passengers— particularly working people— will walk a short distance to a section point in order to save Id., which they would pay for riding part of a section. But by properly locating section points in the business district, we encourage short riding on the part of shoppers and business people during the day. If anyone objects that Brisbane, with its 170,000 population, is not a fair example, I would say that Syd- ney with more than 750,000 people has substantially the same system. In either city, a change to the old straight fare system, as in vogue in the United States,, would result in riots. 482 Electric Railway Journal Vol 54, No. 10 We maintain a regular headway of not less than ten minutes on all lines all day. This is supplemented during the rush hours of morning, noon and night by short trippers covering one or two sections. During the busy hours of night we have an outbound car from the business district on an average of less than fifteen seconds and at times less than ten seconds. The seating capacity of our cars varies from thirty-four on some of our old-style single-truck cars to fifty-six for our more modern, double-truck center-aisle cars. For the year 1918, our traffic receipts were 45.15 cents per car-mile, and 60 per cent of the fares came from penny (2-cent) passengers. For 1919, until the influ- enza epidemic struck the country, the receipts ap- proached 40 cents a car-mile. Of course, there are no transfers. If a person wishes to ride on two lines he 2 J itci Aubigny Cracknell S.U. Juliette Cemetery "it. Deighton Rd. 1 Beakons- y/est Park Rol, a I 1 e u n c ?eorge New Farm New Farm Wharf aWa St.) Credent Rd, Great S federal 5t, Valleij Ann Junction June 5owen_ Bridge _L George t. BRISBANE TRAMWAYS Routes and Sections Oct. 1.1916 Kelvin Grove Rd. Gate Ai'laide f S ' Prospect "Ter Melbourne St Ry. VaMey Junction Clayfield A b St. Bulimba Mbion Rd. Kedron Park r G VARIATIONS IN LENGTHS OF PENNY SECTIONS ON BRISB.^ pays the proper fare on each line. For 1918, we carried 13.1 passengers per car-mile at an average of 3.36 cents per pa.-^senger. According to the United States method of accounting, this would really mean "passengers in- cluding transfers." Fare Receipt System Without British Bell Punch Brisbane uses no bell or registering type punches. They were in use years ago, but we found them a source of irritation to the conductors and of slight value. The registering mechanism was inaccurate, a fact which the conductors soon learned, and counting the disks (ticket punchings") was an interminable job. As noted hereinafter, all our tickets are numbered consecutively, and as it is an easy matter to keep account of the tickets issued to each conductor and of the number sold, we see no utility in a registering punch. Tickets are printed by the company in its own office, and errors in number- ing or putting them up are very rare. Now as to the details of operation. We use three kinds of tickets: Id., 2d. and 3d., one of which is reproduced. These tickets are put up in packages of fifty, wire stitched at the end, with perforations which permit them to be easily detached. Only complete pack- ages are issued to the conductors, all broken packets being destroyed, even if but one ticket has been used. We found that the clerical labor involved in the reissue of partial packets cost more than the tickets. The Id. ticket is for one section, the 2d. ticket for two sections and the 3d. ticket for three or more sec- tions. The points between which a passenger is entitled to ride and the direction in which he is traveling are indicated by a punch mark in the margin of the ticket opposite the proper designation. Each conductor is provided with a punch having a special die, and he keeps that punch all the time. If a person should pick up a ticket on the street, the conductor who issued that ticket could be identified at once, and by reference to his waybill it would be possible to tell very closely the place where the ticket was is- sued and the time it was issued. The conductor enters the starting num- ber of each kind of ticket on his waybill, on each half trip. Tickets wrongly punched are not issued but are turned into the office with a re- port where they are credited to the conductor's account. Ticket inspectors board the cars at various points to check up and see that all passengers have their tickets. Under our by-laws a passenger is obliged to produce his ticket when- ever called upon. Failure to pro- duce the ticket, even though he has paid his fare, is an offense for which he may be fined. Of course, we had some trouble in the beginning to get passengers to keep their tickets until they left the car, but a few prosecutions brought them to a real- ization of the situation, so that now we have no difficulty. If an inspector finds a passenger without a proper ticket he requires him to pay the fare. .\NE tramw^ays We never eject a passenger for non- payment, but get his name and ad- dress with witnesses. Prosecution follows. All counting of cash and checking of tickets is done at the head office where all cars pass. Conductors pay in at this office about every third trip, using a returns envelope with the lettering shown in the reproduction on page 483. Conductors are not expected to pay in any fractions of Is. . These payments are entered on the waybill where the envelope number is entered, and this is initialed by the officer who receives the envelope. This does not guarantee that the amount is correct, but that an envelope purporting to contain a certain amount was received. When the conductor finishes his day's work, he turns in his waybill, all unsold tickets and cash to balance. The method of making this up will be seen plainly from the waybill reproduced. Conductors are provided with little printed cards showing the amount representing any number of tickets sold, so that they do not have to do any calculating themselves. They are required to settle according to the number of tickets sold and are expected to make up any "shorts." All "overs" are returned to the conduc- Station Gregory Terrace Custom "p House Queen St. Scale September 6, 1919 Electric Railway Journal 483 tors. A conductor, who, according to the individual record of "shorts" and "overs" shows above a certain percentage of errors is dispensed with. A series of "shorts" means prompt action. We do not demand "blind" returns, for conductors simply will not make them. There is no use in having a rule which we all know is easily evaded. We have two classes of inspectors — traffic inspectors and ticket inspectors. The former are engaged princi- N9 43501 I'i'^e BRISBANE TRAMWAYS COMPANY LTD. CONDUCTORS CASH DEPOSIT Name Notes .. Gold Silver Copper Total Ueceived by , 1918 CONDUCTOR'S CASH DEPOSIT FOR.M pally in handling the traffic and generally in super- vising operation outside. They are expected to attend promptly and report all accidents, and in case of injury to a person, they must see that aid is promptly ren- dered. They may suspend any motorman, conductor or other outside traffic employee, when deemed necessary in the interests of the company, reporting the same at once by telephone to the superintendent and following this message with a written report. They may also at times perform the duties of ticket inspectors. The chief duty of the ticket inspectors is to examine the tickets of passengers to ascertain if the proper fares have been paid and the tickets issued and punched correctly. All violations of the company's regulations, CONDUCTOR'S ACCOUNTING OF TICKETS ISSUED AND SOLD either by employees or passengers, are reported and such action taken by the management as is deemed advis- able. The company employs no "spotters," relying entirely upon its uniformed staff of inspectors to correct all irregularities. Reports from other employees are dis- couraged. It is understood that when the manager is riding on a car he is not looking for slips on the parts of the employees. The cost of living is considerably less than in the United States, but I think that the wages paid on the Brisbane system are relatively higher than in the United States. Forty-eight hours is the standard working week, and we reduce overtime to the smallest possible amount. No man works more than six days out of seven in any one week. In the power house and all other departments where continuous operation is required, there are three eight-hour shifts each day, and no man works more than six shifts in any one week. Of course, accidents may require a variation of this rule, but they are an exception. The operating day of a car is sixteen to seventeen hours. The rule is, early out, early in. There are two shifts per car, with two meal reliefs. Conductors and motormen alternate, taking an early shift one week and a late shift next week, and work all the different time- tables in rotation. If a regular time-table is less than forty-eight hours in one week, the conductor is paid for forty-eight hours. If it is over forty-eight hours, he is paid overtime rates for Ws 437161 bRISBAME TRAMWAYS UO. LTD. eiadstoneBU— ciagfield. m jD 5; D C3 u) n rt, o ■K o o™ Ift » P o • 1 1 S. BftlS. CEM OjcUD. RO. X ^ DEICHTON RO IJORT« QUAY CLAO^ Ra X COS. HOUSE NORTH QUAY VAltEV JCT CUS. Hovse BOWLtNQCRN VALLEY JCT ALBICN HTL BOWLING am CLAYFltLD 2d " ST f :i 3 Z ^ ^ FARE RECEIPT FOR 2-PENNY FARE the excess. As to the actual standard of living, I think that the workingman in Australia enjoys a rather higher standard than his mate in the United States. I have been much amused at reading learned dis- courses in the electric rail- way papers about the in superable ( ? ) obstacles in the way of adopting the sectional zone system in the United States. Most of the objections urged against the system are such as to indicate that the objector knows very little about the subject. The system has been in use in Brisbane for about twenty-five years and was modeled largely upon that in use by the London General Omnibus Company, with certain modifications to suit local conditions and to reduce clerical labor in accounting. When the Sydney Tramways were electrified, the same general system was adopted there with some differences in details to suit individual ideas. In operation, this system is simplicity itself but is not well adapted to the pay-as-you-enter cars. Of course it requires a little more work on the part of the con- ductor sometimes, as he is obliged to check up his car to a certain extent after leaving each section point, but our experience is that conductors become so expert in keeping track of their passengers that our losses from uncollected fares are very small. Sometimes we find it necessary to put two conductors on a car when leaving the city at rush hours, but the extra conductor rides only a short distance. The checking of cars by inspec- tors is done at irregular intervals and a different places, so that neither the conductor nor the passengers know when an inspector will board the car. From my point of view, the principal difficulty in the way of a reasonable readjustment of street railway fares in the United States is the unwillingness of the American operator and the public to profit by other peoples' experience. 484 Electric Railway Journal Vol. 54, No. 10 I can heartily indorse the following excerpts from Walter Jackson's article on the "Zone Fare in Practice — Glasgow," published in your paper for Feb. 22, 1919, reading: "The most casual investigation on the gro^ind will show that the connection between the distribution of population and the system of fare charging is a minor rather than a major factor in the development of mun- icipalities." Our experience is that higher rents counterbalance the lower fare for the interior districts and that lower rents and lov^^er property values counterbalance the higher fares in the outlying districts. This is distinctly so in Brisbane, where by far the greater part of the laboring population lives in the outlying districts. Publicity for Zone Fares What Public Service Is Doing to Inform Car Riders and Employees of the Details of Its New Fare Schedule INFORMING both the public and its own organization of the details of the zone-mile system of charging fares, which will go into effect on Sept. 14 on the Public Service Railway system, has been a task in which the company has been engaged since last spring, from the moment, in fact, that the zone plan called for by the Board of Public Utilities Commissioners of New Jersey was submitted by the company on Mar. 11. The importance of this task was magnified by the fact that the zone plan about to become operative is the first of its kind to be instituted on a street railway system in this country, and that in its operation it revolutionizes certain methods, and materially changes the habits of the riding public. Therefore, in order that the plan should receive a fair start, the railway company has devoted every means at its disposal toward conveying to all persons intei-ested the complete de- tails of the system. First, the public had to be told the reasons for the submission of the zone plan. The Utilities Board had directed that the company present a plan whereby the method of charging fares in force might be revised over its entire territory so as "more properly to relate the cost of service with the length of haul and value of service." The company faced the necessity of secur- ing additional income, and the zone plan presented the fairest method known of securing this additional revenue. The public had to be told these facts. Therefore, with the submission of the zone plan to the State body the company began the publication in the newspapers of a series of advertisements, a new advertisement each week in daily and weekly publica- tions throughout its entire territory. The first ten of these advertisements, captioned, "Fare Zones for Street Cars," and continuing to include the week of June 1, discussed various phases of the zone plan. "Standby" and "Movement" costs were explained, the company's financial situation, the increased costs of labor and materials and restricted revenues were set forth, and the fairness of the "pay-for-what-you-get plan" under the zone-m.ile basis, was emphasized. The saving to a large proportion of riders under the zone plan was also pointed out. Throughout these advertisements and subsequent series there was continued the thought that the zone system was the fairest method known as it applied to the rider and to the company. CO a CM O uu GO o Federal Street Ferry, Camden TO Broadway and Berkeley SI. ZONE Broadway and Berkeley St. TO Broadway and Jackson St. ZONE Broadway and Jackson St. TO Broadway, S. S. N. Y. Ship loop ZONE Bro:dway, S. S. N. Y. Ship Loop TO KIne and MIddlesei St). ZONE King and MIddlesei Sis. TO P. R. W., 900 11. S. ol Water St. ZONE p. B, W., SCO It. S. ol Watei St. TO P.R.W.,700lt.No.otWasli.Pk.A»e. ZONE P.R. W.,700ILNo.olWaili.Pli.Ave. TO P. R. W. and Fancy Hill Road ZONE p. R. W, and Fancy HIM Road TO p. R. W. and S.OSO rt. Soulli of Fancy Hill Road 8 ZONE p. n. W. and S.OOO It. South ol Fancy Hill Road TO Belmont Avenue ZONE Belmoflt Avenue TO National Park (End ct Line) 10 ZONE cu to cn CSi O "< "w" '"^ CT ^ f- '/^ 2 P •< ^ ? " g 5! TO ? X 2 . o O O r, IT! In r. " 0."^ rr ^ 0 Q'O(»N!0>'J)^>l-^ S " a -J; t^ o5 CO ii q'i qVDCD~-1C5>U' m J;J|lI«>--iijtOJ CO •pi 3 CO o ^ '-' CO FRONT AND BACK VIEWS OF NEW PUBLIC SERV- ICE ZONE TICKET The ten advertisements were followed by a series of eight shorter ones, each taking a single point previously discussed and briefly reiterating it. This series con- tinued up to and including the week of Aug. 8. In the meantime the Public Utilities Board was hold- ing hearings upon the company's zone report which, under conditions which obtained at the time the report was filed, set up a fare of 5 cents for the first zone- male, 1 cent for each additional mile and a penny for a transfer as a rate which would meet the company's requirements. The National War Labor Board, however, in an award which became effective as of May 1, granted an increase in the wages of trainmen which amounted to SI, 150, 000 annually in the company's payroll. This necessitated a revision in the fare rate to meet the additional cost, and the State Board, on Aug. 1, directed the placing of the zone plan in operation on Sept. 14, under a rate of 3 cents for the first zone-mile and 2 cents for each additional zone-mile or for any part thereof. With a definite zone-mile rate and a time for its operation set, the company could proceed to instruct its own forces as well as continue its publicity for the benefit of the public. Accordingly a new series of advertisements was in- augurated, reverting to the larger size space of the September 6, 1919 Electric Railway Journal 485 NOTICE FftClM 1 ZOf(£ ' FROM -3 FROM f, ZONET As a convenience to pas- to 2»ne Cts. Fare To Zone FiTlC eu To Zone CIS, sengers and to enable, therp to have exskct fare ready v^hen leaving car, thereby avoiding delay, the zone in which you boarded car and the fare 1 iC 3 4 5 S 7 8 36 E, 7 S) 11 13 15 17 19 4 5 6 ,7 8 9 lO 3 7 9 1 1 13 15 17 19 3 5 7 8 9 lO 3 7 9 1 1 13 15 17 4 6 7 8 Q lO 3 7. 9 1 1 13 16 to all other zones are lO 21 indicated on the extrerne right of this side of zon checlt -J ZONE ZONE ZONE UJ o ISi 6L 'le das CM (0 p«t 'jea iuiAesi uai|« jounpuos oi iiueH -R9 ps|iJEi>q jaSuassed (t3ii|M U| guoz saies ■|pu| i|3W|3 |0 pu3 xj^n ;e jaqiuni^o; UVa ONIHaiNl uo ll35^9f^S9niS| ry, Camden rttley SI. Iway and Berlteley SL TO Iway and Jackson St. t ^ o =^ S h ■i J? t 8 >- J, QNnoa^ ^ 0 " $ 1- g !2 * *ol c/i H S -yioaHD SNOZ " § s » •oa*E«i|Ea93|Aj3S3!iqnd TORN END SHOWS ZONE AT WHICH PASSENGER ALIGHTED AND FARE TO FOLLOWING ZONES first, in which the various methods of boarding and leaving cars and paying fares under the new plan were explained. It was pointed out that the new plan of boarding cars by the front end and leaving by the rear platform, and paying fares at the end of the ride, was simply a change in habit, reversal of former procedure. This series of advertisements will be con- tinued as long as the necessity for public information through the press is seen. Details of Educational Program Immediately upon the issuing of the State Board's order establishing the zone plan, the company began informing the rank and file of its organization of what would take place. The original zone report, although it had been predicated upon the "5 and 1" rate, formed a working basis. It was necessary to revise details of mechanical devices and to prepare zone checks, tickets and accounting forms to meet the "3 and 2" plan, and this was speedily done. Between Aug. 1 and Sept. 1 division heads and supervisory forces had been in- structed in the workings of the new system and the instruction of trainmen had begun. In the latter con- nection there was first prepared and issued a pamphlet, "Facts About the Zone System," which briefly explained the chief points to motormen and conductors, while cards giving the zone points on each line were issued to the operating men. These will be followed by book- lets giving the zone points on all lines for permanent use. An extensive supplement to the trainmen's rule book has been printed, covering the working of the plan in detail. All zone points were indicated by marking v/ide yellow bands on poles, with the zone numbers stencilled in 6-in. black letters on the face of the pole. Blore than 1000 poles were so marked. As an additional means of informing the public, a series of posters was printed. The first, which made its appearance on the platforms of cars on Aug. 31, and so placed as to meet the eye of the boarding passenger, reads as follows : Riders Will Board Cars at Front End and Leave at Rear End Under the Zone Plan Effective Sept. 14 On Sept. 7 the foregoing posters will be replaced by the second of the series, reading: Beginning Sept. 14 Pay-as-You-Leave Under the Zone Plan Instead of Pay-as- You-Enter The third of the series will appear on Sept. 14 and will read: Get Zone Check From Motor man Give to Conductor When Paying Fare Pay-as-You-Leave Every car as it starts out on the line after midnight on Sept. 14 will carry dash signs, front and rear, reading : Enter Front Exit Rear Pay as You Leave these signs being of letters of sufficient size to be easily read by persons on the sidewalks. Three million leaflets, separated as to lines, have been printed, bearing the zone points. These were placed on the cars beginning Sept. 1. On the reverse side of each leaflet appears information as to the method of boarding and leaving cars, use of zone checks and zone indicators and the fare rates. These leaflets are being supplied in receptacles on which the sign "Take one" appears, and overhead signs reading "Zone limit leaflets in boxes ; Take one," supplement the signs on the boxes. As another means of acquainting the public with the operation of the zone plan, moving pictures were taken under actual operating conditions, showing each step the passenger takes boarding cars, getting zone checks upon entering, paying fare and leaving car. Views of zone points showing poles, and "close-ups" of zone checks, zone indicators, and the method of fare regis- tration were taken, and the whole story in proper .se- quence will be shown in moving picture houses so far as is possible throughout the State before the plan becomes effective. The newspapers have been kept informed of the news features of the new plan and stories have appeared illustrating the use of the zone check and telling the procedure of the riders on and after Sept. 14. There will be forthcoming additional matter to describe various features of the plan, such as the location of places where strip tickets may be purchased, new forms of school tickets in such parts of the system where triese are in use, and the operation of pay-as-you-leave terminals where the same are to be established at con- gested points. Briefly, the plan provides that passengers will board by the front door and that the motorman will issue a zone check as illustrated. This check is torn from a holder to indicate boarding point and on the re- verse side for convenience there is tabulated the fare to succeeding zones. Fares are paid on leaving and rung up on a cash register. 486 Electric Railway Journal Vol. 54, No. 10 Paris Tramways in War Time Municipality Has Shown Reluctance to Give Real Aid to Tramways for Lightening War's Burdens THE large part which Paris played in the European War and its dangerous nearness to the battle lines caused the life of its tramways to be event- ful. A general description of the experiences of the Parisian surface and rapid transit lines during war time is given in a recent issue of the Electric Raihoay & Tramway Journal. The outbreak of the war was promptly followed by Paris being deprived of all its motor omnibuses, in which a large section of the French army was rushed to the front. Thereafter Paris was subjected tO' almost innumerable air raids by Zeppelins and Gothas and, later on, to long-distance bombardment. These attacks natur- ally kept the nerves of the inhabitants on edge and in- terfered with the performance of electric railway service. Despite these attacks, however, and the drastic recruiting for the army, a highly creditable serv- ice was rendered by the tramways and (in due course) by the motor buses after the initial shock had been survived. Rising Cost Hit All Lines Most of the surface transportation service of Paris is carried on by the Compagnie Generale des Omnibus de Paris, which pays to the city an annual rental and a fixed proportion of its receipts. This company was en- trusted a few years ago by the city authorities with a big scheme of tramway reconstruction and extension. It had to reconstruct all the tramways within the central area on the conduit system, and outside that area on the overhead system, thus abolishing the compressed air, accumulator and steam traction previously in use. This scheme of reconstruction had not been completed when the war broke out. In spite of the difficulties involved, however, the com- pany re-established and maintained its tramway serv- ices and four lines of motor omnibuses. For the roll- ing stock, etc., requisitioned by the government the company received an indemnity of $893,890. Like other railways, it is said, this company has suf- fered during the last few years from the high prices of labor, fuel and materials. The public administration, in spite of the suggestions of the ministry of public works, has tried to hide its responsibilities behind a proposal which the company summed up in these words : "It is proposed that the companies should borrow event- ually the capital repayable after the war, at 6.81 per cent per annum, so as to permit them to lose the money in operations conducted at a loss." The official figures for 1918 have not yet been issued, but those for the preceding three years follow: 1914 1913 1916 1917 Revenues $8,762,807 $5,237,266 $6,147,803 $7,349,208 Working- expenses. 7.349,577 3,651,876 4,892,324 6,040,020 Net revenues $1,413,230 $1,585,390 $1,235,479 $1,309,182 That the financial results for 1914, it is stated, were not poorer was due to the progress made in the first seven months before the war broke out. The revenues for the year, however, were $2,984,026 less than in 1913. The Compagnie du Chemin de Fer Metropolitain, which operates the rapid transit lines in Paris, had its full share of troubles after the outbreak of the war, not the least being those arising from disagreement with the city of Paris. Throughout the war period the com- pany's receipts continued to rise, the increase for 1916 being 13 per cent above the best pre-war figures, and for 1917 19 per cent over 1916. The higher costs of coal, labor and materials, however, were such that despite an increase in receipts of $2,500,000 the net benefits de- creased by nearly $200,000. The total receipts in 1917 were $14,278,149, and the expenses $7,272,258. The city of Paris took $4,765,220. The rapid transit traffic in 1917 amounted to 398,241,116 passengers. It is suggested that one of two plans is now reason- ably realizable: (1) An increase in fares that will cause the passenger to pay the increased cost of trans- portation, or (2) a modification of the rights of the city so as to make it share the higher expenses. The public administration and the Municipal Council have been sheltering themselves behind the stipulations in the company's concession, but the company asserts that the theory of the "unforeseen" is plainly applicable to the situation. The city at one time agreed, under certain condi- tions, to advance money sufficient to enable the com- pany to pay dividends not exceeding 4 per cent, the advance to be repayable after the war with interest. The company, however, saw no advantage in accepting a proposition which meant simply that it would find itself eventually face to face with the city instead of private financiers. War-Time Progress in Swiss Railroad Electrification A CORRESPONDENT of the Engineer, London, writes to that paper that Switzerland has begun to prepare for the electrification of her railways much more earnestly than ever before. During the war it was impossible to do much and even the electrification of the Gothard line, which ought to haVe been complete by now, can hardly be finished for two years. Some idea of the enormous cost of the electrification in Switzer- land at present is given by the figures in connection with the line from Berne to Thun, not quite 20 miles in length. This is so far advanced that electric trains may be able to run over the entire distance long before. The cost has run to nearly $47,000 per mile, not including generators, etc. This line adds a link to the chain of already electrified lines, for at Scherzligen it joins the Lotschberg line which has always been elec- trified. When the Berne-to-Thun line is completely electrified it will be possible to go from Berne through the Simplon tunnel to Domodossola by electric traction. As Italy is pushing the electrification of the stretch from the latter point to Milan, if the eastern railways of France consider it to their advantage to use the Lotschberg Line for Franco-Italian traffic it is possible that the line from Delle to Berne via the Grenchenberg tunnel will be one of the next to be electrified. Even with the present high cost of materials and la- bor it is calculated that it would be cheaper to use elec- tricity on the railways than to continue with steam, as coal costs in Switzerland about eight times as much as before the war. Before the war the German coal mine owners did their utmost to put difficulties in the way of electrification of the Swiss railways. Now one of the great arguments in favor of it is that it would free Switzerland from dependence upon foreign nations for its coal supply. September 6, 1919 Electric Railway Journal 487 Fireproof Construction for Substations Program for Construction of a New Type of Sub- station as Inaugurated on Pacific Electric Lines in Southern California By C. a. Elliott Cost Engineer, Maintenance of Way Department, Pacific Electric Railway, Los Angeles, Cal. DURING 1918 the Pacific Electric Railway undertook the construction of several new substations at lo- cations where they were most needed on its lines. The first was erected at Wilmington Junction where three of the company's lines converge. These are the San Pedro main line, the Long Beach-Wilmington line and the City of Los Angeles Municipal Harbor belt line. This belt line serves several large shipbuilding plants as well as many other industries and warehouses located at Los Angeles Harbor, which was formerly known as San Pedro Harbor. Wilmington Junction is 2.6 miles from San Pedro Harbor. The type of substation construction employed in the past was brick. The new type is also brick con- struction but the exterior walls are plastered and sand- finished and the construction is fireproof throughout. The roof is of reinforced concrete. The building is 47 ft. 10 in. long, 32 ft. 10 in. wide and 23 ft. high from floor level to bottom chord of truss. The steel portions of the structure consist of two 32-ft. cross trusses and eight 8-in. channels for purlines, supporting the reinforced concrete roof. Lighting and ventilation have received very careful consideration in these new structures. The windows with steel sash are placed at a sufficient height to give a good distribution of light. Louver galvanized- iron ventilators are installed at the floor level, and on the roof there are three 36-in. Swarthout ball-bearing rotary ventilators. The equipment of this substation at the present time comprises a Westinghouse motor-generator set capable of carrying a load of 1000 kw. continuously and momen- tary swings up to 3000 kw. The energy is received from a three-phase circuit at 15,000 volts and feeds to the trolley line at 600 volts, direct current. The substation equipment is protected against lightning and other high-voltage surges by an electrolytic light- ning arrester installed in the 15,000-volt alternating cur- rent line as it enters the substation. A lightning ar- rester is also installed in the direct-current feeder. For the present the substation will be manually operated, but later it will be converted for automatic operation. A substation building of the same type as that at Wilmington Junction has been erected at Slauson Junc- tion, where the double-track Whittier line branches off from the four-track Long Beach main line. This sub- station will be automatically operated from the start, and the gallery has, therefore, been omitted in the building construction. As there is great need of improvement in the power facilities at Los Angeles Harbor due to the heavy freight hauls and the frequent increases in passenger traffic, the construction of a new substation at San Pedro is to be undertaken immediately. In general this type of construction will be the same as at Wilmington. The building will be 70 ft. long, 36 ft. wide, and 24 ft. high from floor level to bottom chord of truss. Only two 36-in. Swarthout ball-bearing rotary ventilators will be installed in the roof of this structure, as ventilators are to be placed in the steel sash. As this substation will be manually operated, a gallery will be provided. Plans have also been completed for the erection of a substation within a few months at Maple Avenue, Los Angeles, on some property adjoining the company's main terminal passenger station. More than 1800 electric interurban trains move to and fropi this terminal build- ing daily and this new substation will considerably increase the power facilities for handling this exten- sive service. This substation will be of the same type as those already described and will correspond in dimensions to that of the large substation to be erected at San Pedro. This contemplated substation is to be automatic. Open~Air Exhaust for Circuit Breakers THE usual location of the circuit breaker on the car is above the motorman's head in the cab. Every time the motors become overloaded and the breaker ope- rates there is naturally a flash and report which is often startling to passengers, especially those who may be standing on the forward platform. There have been occasions also when the blowing out of the breaker ha.'^ thrown particles of carbon into the eyes and on the AT LEFT, OUTLET FOR CIRCUIT BREAKER FLASH AND REPORT. AT RIGHT, THE BREAKER IS SUSPENDED UPSIDE DOWN BY BRACKETS clothes of a passenger, and occasionally the motorman gets a hot spark down his neck which is not only annoying but may interfere with operation. To eliminate all of these objections the Des Moines City Railway is now relocating the circuit breakers on all of its cars so that the flash and report occur on the outside of the car. As shown in the accompanying illustrations the breaker has been turned upside down and suspended by brackets from the roof at the side of the vestibule. An outlet has been cut through the letterboard and lined with asbestos board. The outside shield shown in the illustration is light sheet iron lined with asbestos. Eight or more cars have had the breaker relocated in this manner at present. When the cars come into the shop for repairs or overhauling this change will be made until the entire system is changed over. The new arrangement has worked very satisfactorily. 488 Electric Railway Journal Vol. 54, No. 10 Portable Rivet Heater for Shop Use Des Moines City Railway Has Built Portable Equip- ment for Use in Any Part of Shops — Burns Kerosene and Is Great Time Saver RIVETING has to be done in many parts of the . ordinary railway shop. A forge is generally avail- able only in the blacksmith shop so it becomes necessary to do one of two things, either take all riveting work to the blacksmith shop or devise some portable heating equipment so that the work can be done wherever it is most convenient. The Des Moines City Railway favors the latter method and has designed and con- structed a portable forge or rivet heater. The stand of the heater is built up from lA-in. x li-in. angle corner posts cross braced by ^-in. x l:i-in. iron straps. The bottom an- gles are the same size as the corner posts and the floor is No. 12 sheet iron. The fire box is built of fire brick lined with fire clay mixed with common salt and the whole is incased in No. 12 gage sheet iron. The fire box rests in IJ-in. x 1^-in. angles bolted the corner posts and these latter extend about half way up the sheet iron sides of the fire box and are bolted to them. The top of the box is clamped as shown in the illustration, but a better method would be to carry the angle-iron corners all the way up and fasten the ends with angles in the same way that the bottom of the box is sup- ported. The heater complete is 4 ft. 5 in. high, 44 in. »c)uare at the base, 18 in. square at the bottom of the fire box and 17 in. square at the top. The box is 15 in. high. The fuel tank is of 10 gal. capacity and was part of an old pre-heater equipment. Kerosene is used as a fuel. There are four pipes in the top of the tank, the one shown at the left with a valve is for filling purposes. The second is for attaching the hose line from the shop air connection which forces air into the tank at 90 lb. pressure. The air outlet through the top is a i in. pipe and in addition there is an exhaust pet cock. The oil-supply line consists of a l-in. pipe which enters the tank near the bottom. Both the air and the oil lines are equipped with valves for the proper adjustment of the mixture necessary to give the desired heat. The two lines merge near the nozzle which throws a flame of intense heat through an open- ing in the side of the fire box. An auxiliary air line of I in. pipe extends around to the front of the box and is perforated under the door opening. By adjustment of the valve this air keeps the flame within the fire box. It will be noticed also that there is a shield to protect the face of the operator when rivets are being inserted or withdrawn. This equipment is mounted on four solid-cast wheels 8 in. in diameter and is easily wheeled about the shop by one man. The use of the heater is confined mainly to rivet work but it is used also for heating bushings for G.E. Nos. 57 and 67 motors and other similar work. PORTABLE RIVET HE.\T- ER MADE ANn USED IN DES MOINES SHOPS Air connections are conveniently placed, throughout the shops and by means of an ample length of hose the heater can be used in practically any location. It has been a great time saver and convenience. Swing of Radial Coupler on Curves Formulas Developed for Use Do Away with the Necessity for Special Layouts By L. F. Seelar Chief Engineer St. Louis Car Company, St. Louis, Mo. ONE of the conditions which has always been a source of much trouble and vexation to those en- gaged in the construction of electric cars is that of determining the swing of the radial coupler. The usual method is to employ special layouts, which are often very inconvenient and take a considerable time to make. Few draftsmen can readily figure the swing of the coupler, and in order to assist in such calculations, I developed the following formulas for this use. These formulas require only an elementary knowledge of trig- onometry and the use of a table of squares similar to that of Smoley or Hall. When Smoley is used, the par- allel table of logarithms greatly simplifies calculations. 1 '1 / U- --T- -f >i<-c->l A 'r / r DIAGRAM FOR MAXI- MUM SWING OF RADIAL COUPLER O N CURVE Referring to the accompanying diagram, let us con- sider two cars, one of which is on a curve and the other car with the pivotal point of its coupler at the point of tangency. The maximum swing of the coupler occurs with the cars in this position. Let A = Distance from center of car to pivotal point of coupler B — Length of two couplers R = Radius of curve T = Truck centers t = One-half truck centers = i T c = Distance from center of truck to pivotal point of coupler X = Maximum swing of coupler Then (1) D = ^/li''^' (2) C = V A' L>= (3) Z = Tan-i ^ (4) Y = Cos-i 2 (5) X = 180° — (Z + 7) To show the application of these formulas let us con- sider a case with A = 19 ft. 10 in., B = 9 ft. 10 in., R = S5 ft., t = 14 ft. and C = 5 ft. 10 in. Then from formula (1) D will be 32 ft. if in. and from formula (2) C = 37 ft. 8j% in. Z will be 58 deg. 16 min. 11 sec. and Y will be 66 deg. 5 min. 20 sec. X will then be 55 deg. 38 min. 29 sec. September 6, 1919 Electric Railway Journal 489 Association News ATLANTIC CITY CONVENTION, OCT. 6 TO 10 Convention Exhibit Notes SECRETARY BURRITT has written to all member companies calling attention to the unusual activity among the manufacturer members in preparing for ex- hibits, and recommending that delegates be prepared to spend as much time as possible in making a systematic study of these exhibits. To assist delegates in prepar- ing permanent reports of their observations, the exhibit committee will distribute a combined directory and notebook. A full page in this book will be assigned to each exhibitor, on which his name and address will be printed and a description of his exhibit given. Names will be alphabetically arranged and exhibit space numbers indicated. The entertainment committee has formulated final plans for the entertainment part of the program. Sub- committees are at work making arrangements for music, etc. One evening will be set aside for a dance and another evening for a carnival. During these evenings special features will be introduced by professional dancers and other performers. Arrangements have also been made for daily aeroplane flights at a reasonable fee. Engineers and electric railway contractors are show- ing appreciation of the Hall of Engineers; a new fea- ture this year. Manufacturers Draft Constitution for Affiliated Association A MEETING was held at Association headquarters on Sept, 3, of the committee appointed by the Ameri- can Association to draft a form of organization for a proposed affiliated association of manufacturers. Those present were Thomas Finigan, Chicago, 111., Chairman ; S. M. Curwen, Philadelphia, Pa.; E. D. Kiburn, New York City, representing Guy E. Tripp; E. B. Burritt, New York City, and H. H. Norris, Electric Railway Journal, representing James H. McGraw. The committee put the finishing touches upon a draft of a constitution and by-laws, which had been prepared earlier in the year. This will be put into the hands of manufacturer members of the association for con- sideration in advance of the convention. Canvass on Wages and Labor Conditions THE bureau of statistics and information of the American Association is collecting first-hand data regarding the wages and labor situation. A bulletin will be issued at once showing name of company, wage scale and date in effect. The information requested on working conditions will be tabulated and kept on file for the use of companies on request. Data Sheet No. 193 is being used in collecting the information. In connection with the questionnaire some attention is also being given to traflSc conditions in so far as they affect labor and wages. The subject covered by this canvass is in such a state of flux that the compilation of data is diflficult. The association, therefore, requests prompt co-operation in the return of the sheets. This is doubly timely and im- portant in view of the coming hearings before the Fed- eral Electric Railways Commission at which the labor and living conditions in the industry will be presented by the Amalgamated Association. Letter to the Editors stimulating Sales of Metal Tickets Brooklyn, N. Y., Sept. 3, 1919. To the Editors: In a certain town, whose name I prefer not to men- tion, it became necessary in the course of distressing events to raise the fare from 5 cents cash to 6 cents cash. At the same time, the 6-for-25 ticket went into the discard. The immediate result — nay the permanent result — was a terrific drop in noon-day riding to and from the largest factory in the city. Yet the men employed in this factory were highly-skilled mechanics whose wages had risen far more than the rate of fare. This unhappy result surely was the consequence of a mistake in psychology. These men did not resent pay- ing an increased fare so much as they resented being deprived of a little discount from whatever happened to be the established rate of fare. As four-time-a-day riders instead of two, they held that they were entitled to a little cut from the figure established for the casual rider — all the more so as they knew that much of the noon-day riding cost the railway less than regular rush-hour service. To raise and lower the fare at one and the same time seems a queer performance, but it is good business if properly stimulated. The trouble with most companies that claim that they cannot see any good in selling the metal ticket at a discount is that they have never really tried intensively to sell such tickets. When we find only 10 or 15 per cent of the riders offering tickets, we may be certain that little publicity has been given to putting the metal ticket over. Thus, instead of reliev- ing the conductor of the worries that the odd fare has added to his platform life, such systems simply make him fill out a couple more blanks on his trip sheet for the occasional metal ticket that some passenger offers in much the same spirit as a person passes counterfeit money. It was my experience recently to enter a waiting room and, upon offering to purchase metal tickets, to be gazed at in wonder and to be told that "they hadn't had any sales in weeks!" It seems to me that two things are necessary to get all the good that there is in the metal ticket: First, to sell the tickets in packages at a price averaging i cent below the cash rate; second, to place the tickets in every store that will handle them as a convenience for custo- mers, backing up this campaign by a series of placards that will emphasize both the saving and the convenience. When at least 50 per cent of the riders present metal tickets, the railway can say that it has really tried to sell them ; otherwise it has failed to use the one best means of saving platform time and minimizing fare losses since the 6, 7, 8, 9-cent, etc., fare came into our disturbed midst. A Believer in Transportation Salesmanship. 490 Electric Railway Journal Vol. 54, No. 10 Recent Happenings in Great Britain Important Legislative Measures Still Before Parliament — Orders Placed in America for Rails Provoke Discussion (From Onr Regular Correspondent) The two great legislative measures of the government which have a direct bearing on transport are still strug- gling through Parliament. The Min- istry of Ways and Communications bill completed its course in the House of Commons before the middle of July, and as a result of concessions made by the government the third reading was agreed to without a division. These concessions are chiefly in the direction of limiting the powers of the Minister, the most notable being in connection with docks and harboi-s. A Warm Reception When the bill came before the House of Lords toward the end of the month it met with a very hostile reception. Bureaucratic control and nationaliza- tion were the principal scarecrows which were vigorously waved about, and a strong demand was made that the operation of the bill should be confined to railways only. A second reading was granted, however, without a vote being taken, and the govern- ment solemnly warned the mili- tant peers against making anv at- tempt to put a knife into the bill. A little later a party in the House of Lords attempted to have the bill divided into two bills, one dealing with railways and the other with other means of locomotion, and the former to be dealt with immediately and the latter postponed. This wrecking pro- posal was defeated by a two-to-one majority. The committee stage of the bill was concluded early in August and several changes were made against the wishes of the government. Anv which the latter consider vital will doubtless be rectified by the House of Commons, and the bill" will probably pass into law about the middle of the month. Electricity Bill Dragging Protracted proceedings on the elec- tricity supply bill went on during July. The measure was before a standing committee of the House of Commons and an enormous number of amend- ments were discussed. For some time the bone of contention was where dis- trict electricity boards to take over and operate the power stations and to pro- vide new ones should be constituted for each district into which it is pro- posed to divide the country. There was no objection to the setting of the general administrative body called the electricity commissioners, but much was urged against compulsory district boards. The government offered a compromise under which district boards should only be formed where authorized undertakers and local au- thorities failed to produce a satis- factory scheme themselves. This was agreed to. The alternative bodies are to be called joint electricity boards. Another change of importance, this one being made at the instance of the government, was to exclude existing railway (as distinguished from tram- way) power stations from the opera- tion of the bill. Such stations will ac- cordingly not be transferred to the districts boards. Early in August the committee on the bill adjourned till after the summer recess. The resump- tion will be in October or November. The prospective heads of branches of the Ministry of Ways and Communica- tions are largely railway men. The consultant mechanical engineer is Sir John A. F. Aspinall, formerly general manager and now a director of the Lancashire & Yorkshire Railway. On the system he has had much experience with electric traction. The regular act- ing head of the mechanical engineering department is Lieut.-Col. L. Simpson, D.S.O., R.E., late traction superintend- ent of the Buenos Aires & Pacific Rail- way. Sir Philip Nash, who is at the head of the traffic department, was as- sistant manager of East Indian Rail- way. Statistics and accounts are to be under the charge of Sir J. George Baeharrell, D.S.O., assistant goods manager of the North Eastern Rail- way. The secretarial and legal work will be managed by Sir Francis Bun- nell, secretary and solicitor of the North Eastern Railway. H. G. Bur- gess, traffic manager for Ireland, of London & North Western Railway, will be director of Irish transport. Mr. Dalrymple a Dissenter An example of one of the tramway problems likely to arise under the ways and communications bill after it has be- come an act is furnished in a memo- randum prepared by James Dalrymple, general manager of Glasgow Corpora- tion Tramways. In this he gives some facts relating to the Glasgow tramway power station and points to questions which would arise if the station is taken over in connection with the na- tional power scheme. The load is car- ried by three turbo-generators of a total capacity of 14,000 kw. and the whole plant is more than ordinarily efficient. The station, distribution system, and substations cost together £1,200,000, but the whole of the capital has been repaid and current is pro- duced simply at works cost. If the station is taken over the Council will have to consider what sum it should receive and at what rate the tramways should be charged for current by the new authority. It would be very bad business to scrap such a fine station. The taking over of the high-tension distribution system is strongly opposed by Mr. Dalrymple, as the high-tension and the low-tension feeders must be operated by the same authority. There are a number of other large efficient tramway power stations in the country which are in a similar posi- tion to that of Glasgow except that in their case the capital has as yet been only partially repaid. In the case of a still larger number the problem will be further complicated because these stations have lighting and general power loads as well as tramways to provide for. The whole future under the national power scheme is in fact very misty, and it must remain so until the new Ministry has been at work for some time. In the committee on the electricity bill recently some reassur- ance was given to tramway authorities by the government. If and when their power stations are taken over munic- ipalities will have the option of re- ceiving annuities to discharge the outstanding indebtedness on the sta- tions, or of receiving a sum representing cost less depreciation. Labor Outlook Uncertain The labor unrest, ever-increasing wages, shorter hours, a serious coal- miner's strike in Yorkshire, and an in- crease in the cost of coal of 6s. per ton are having their serious effect on electric traction as well as on other undertak- ings. The future is not at present bright. One or two authoritative figures were given by the Board of Trade in reply to a question in the House of Commons on July 17 regarding the or- der by the Glasgow Corporation to an American firm for 5000 tons of tram- way rails. Mr. Bridgeman, for the Board of Trade, stated that the order was placed abroad because home firms were unable to deliver the rails in time for the necessary renewals of track which had to be carried out be- fore winter. The difference in price ■ between the American and the lowest British tender was more than £10,000, and the American company undertook delivery at an earlier date. The value of the contract was more than £100,000, London Order for United States Early in August some talk arose over the fact that the London United Tram- ways had also ordered rails from America, but as this was a case of a company, and not a local authority less was said about it. The company has bought 2500 tons of rails from the United States Steel Products Company at a price including delivery of about £40,000. Only one British tender was received, and though it was not much higher than the American one there was a stipulation for raising the price should the cost of labor increase. The British oflfer also could not promise de- livery on a definite date. Under an arrangement come to be- tween the two tramway associations and the National Transport Workers' Federation, tramway employees on duty on July 19 (the peace celebration day) were paid double time and were granted an extra day's holiday with pay. News of the Eledric Railways FINANCIAL AND CORPORATE . TRAFFIC AND TRANSPORTATION PERSONAL MENTION Advises Taking Over G. T. R. Sir Adam Beck, Head of Electric Com- mission, Urges This as Advan- tageous to Government In addressing a meeting of repre- rientatives of municipalities, to the num- ber of seventy-five, from Western On- tario, at Stratford, Ont., on Aug. 29, Sir Adam Beck, chairman of the On- tario Hydro-Electric Commission, advo- cated the taking over of the system of the Grand Trunk Railway and its elec- trification as a public utility. The occasion of the meeting was the formal opening of the Stratford mu- nicipal electric power station and the remodelled waterworks. Sir Adam re- called that Stratford was one of the original twelve municipalities that en- tered into the contract when the Niag- ara power scheme was first broached. Giving figures for the activities of thf Hydro Commission, Sir Adam spoke of twelve systems now being operated by the commission, serving in all 234 municipalities, developing 336,- 000 hp. He also spoke of the Chippewa government undertaking and said that the original plan calling for the initial 200,000 hp. at Niagara Rapids has been changed to double the quantity, so that 400,000 hp. will be developed at that point. In speaking on the subject of hydro radials, Sir Adam said that no action would be taken to parallel the Grand Trunk Railway tracks until the ques- tion of taking over the railway was settled, but that surveyors were at work estimating the costs, so that work could be rushed when a decision was reached. He quoted the London-Port Stanley line as an example of a municipally-owned road that was paying its way hand- somely. Sir Adam stated that making elec- tricity readily available for domestic use would have a great effect on farm life, in the keeping of young people on farms and getting people back to the land. He thought 100,000 hp. could be sold in six months time if the com- mission had it to furnish to customers. Jackson Lays Down Franchise Terms The City Commission of Jackson, Miss., has declined to adopt a franchise for the Jackson Light & Traction Com- pany submitted for a prospective pur- chaser of the property, which is now in the hands of a receiver. The Mayor and the Commissioners say, however, that they are willing to adopt a fran- chise which conforms to the one now in existence. They argue for a valua- tion basis of less than $1,000,000 for the property. The Mayor said: It wa.s .shown on the trial in the Federal Court that, while the value of the com- pany's property was less than $1,000,000. the comi)any has issued, not upon the value of its property, but upon its earning capacity, $930,000 of first mortgage bonds, $216,000 second mortgage bonds, $140,000 of promissory notes, $600,000 of preferred stock, and $1,000,000 of common stock, or about $3,000,000 of total capitalization, and upon which interest and dividends were to be iiaid, and upon which stock, to the sacrifice of maintenance, dividends liave heretofore been paid. If the rates upon gas or electric lights, or the railway are deemed by Mr. Grossman, if he con- cludes his purchase, to be too low, the city would consider an application touching an increase or application could be made to the Railroad Commission of Mississippi to fix rates for the railway. An Interurban Manager on the Interurban Outlook Charles J. Finger, receiver and gen- eral manager of the Columbus, Mag- netic Springs & Northern Railway, Delaware, Ohio, contributed a letter to the Neiv Republic for Aug. 20 on "The Passing of the Interurbans." Mr. Finger apparently sees clearly the in- exorable law of the survival of the fittest hard at work in the transporta- tion field, with the prospect of many small roads being pushed to the wall by the auto. After reviewing the pas- sing of the turnpike companies, sup- planted by the steam railroads, Mr. Finger says in part: To-day the interurban electric lines and some short steam railroads are in much the same position that horse transporta- tion companies were in then. They are being pushed aside in great measure, by the automobile and the truck in rural com- munities. An examination of electric railroad sta- tistics of passengers carried reveals the fact that, with war service eliminated, the past six years have shown a steady de- crease in the number of reventie passengers carried. During the past two years, many rail- roads, both electric and steam, have surrendered their charters and ceased operation. In Ohio at least eight roads have vanished from the map, and others must follow. Nor does it seem that the communities which these roads served have suffered. Where small villages have been left railroadless, auto bus lines have been estaijlished. Obviously then, to attempt to persuade those in Washington that the plight of the interurbans can be bettered by an increase of rates, is foolish. Such an increase would only serve still further to decrease patron- age, and exacerbate the troubles complained of, by driving still more people to the automobile and truck. The probable outcome will be that the interurban will be replaced by the more serviceable automobile, with its cousin, the auto truck. Such interurbans as operate between cities of considerable population will survive, but even they cannot, without ultimata disaster, raise their rates to any appreciable extent. Their hope is in economy, but not that false economy that makes for inferior maintenance. Revenue could be increased by selling current to farmers along the right-of-way. Old ties and bridge timbers, poles and posts, could be sold for fire wood, instead of being burned. Finally, bond- holders, who in small interurbans are more often than not the owners, should volunta- rily reduce their holdings, and thus lighten the liurdcn of interest payments. Pittsburgh Men Return Accept War Board Award "Under Pro- test"— Men Apparently Glory in Their Shame After a two weeks interruption of service, Pittsburgh's striking railway men returned to their posts the morn- ing of Friday, Aug. 29, accepting "under protest" the 6-cent raise awarded them by the War Labor Board, against which they had struck in violation of their contract. Decision to acknowledge defeat was reached by the men at a mass meeting on Thursday afternoon, Aug. 28, at which the impossible situation their conduct had thrust them into was point- ed out to them in vigorous terms by William B. Fitzgerald, international vice-president of the Amalgamated As- sociation. The terms upon which the strikers returned to work are: That all should be reinstated to their former positions and seniority. (Excep- tion : Men against whom informations have been lodged to be dismissed if convicted.) That the contract prevailing on and prior to Aug. 14 shall be reinstated That the receivers drop their suit against the men for $900,000, claimed as damages suffered by reason of an unlawful strike. This basis of agreement was reached after numerous conferences on Aug. 28 between the receivers of the railway and the wage scale committee of Divi- sion 8.5, with whom Mr. Fitzgerald sat. The spirit of the meeting at which the strikers finally voted to return to work made plainly evident that they were not persuaded to do so by any feeling of repentance for their outrage of their contract. Mr. Fitzgerald informed the receiv- ers before leaving Pittsburgh that he would reopen negotiations shortly to obtain for the men the full wage de- manded in the case submitted to the War Labor Board — a 12-cent advance. The receivers did not commit them- selves on this proposition, but no one has any idea they will concede any- thing. Altogether the strike and the two weeks suspension of service is esti- mated to have cost Pittsburgh about $15,750,000, divided as follows: Loss of business bv mercantile enterprises $14,000,000 Loss to travelling public as re- sult of being forced to ride in jitnevs and trains 7.50.000 Loss to Pittsliurgh Railways. . . 750,000 Loss to men in wages 250,000 The strike breakers brought in by the company, whose first and only attempt to operate cars brought on riots, as described in the Electric Railway Journal of Aug. 30, were shipped out immediately after the strikers voted to return to work, and before the first cars were taken out. No further trouble occurred. . ; ,. , , , 492 Electric Railway Journal Vol. 54, No. 10 Spokane Men Abide by Agreement On the advice of the international union, the platform men of the Spokane Traction Company, controlled by the Spokane & Inland Empire Railroad, unanimously voted recently to reject the appeal of the striking shopmen, machinists, blacksmiths and electricians for sympathetic support, holding that their contract with the company, under which they were granted an increase of wages several weeks ago, barred them from walking out. Conductors and motormen in the em- ploy of the traction division of the Inland system have not changed their attitude as to the strike on the Inland because of the adverse decision of their claims for back pay, filed in the Federal Court by Oscar Cain, master in chan- cery in the receivership case. Accord- ing to Everett J. Parker, president of the local union, the platform men will continue on the job and in the mean- time prosecute a further effort in the Federal Court to secure back pay. In the decision of the master in chan- cery the claims of the Inland employees are not only denied priority, but are entirely disallowed as valid claims against the company. Failure of the company to pay the back wages, based on an award or recommendation by the Federal War Labor Board, is one of the things that brought on the strike. The special committee appointed by the Central Labor Council to investi- gate and report on the request by the striking Inland employees that the com- pany be placed on the unfair list, re- jected the request for emergency ac- tion by a vote of four to one. They will refer the matter back to the Cen- tral Labor Council, where it is to come up for discussion. Ottawa Electric Railway Wages Settled The dispute between the Ottawa (Can.) Electric Railway and the union of employees has been settled. A wage scale for motormen and conductors has been accepted by both parties which carries the following pay per hour: First-year men 39 cents Second-year men 41 cents Third-year men 43 cents Subsequent years 45 cents The new arrangement took effect on Aug. 1. The conciliation board which had been appointed automatically went out of existence. The new agreement regarding wages and working conditions between the company and its employees has been signed by all parties. It confirms the new wage scale as announced some time ago. The agreement is not a majority report of the conciliation board, but is the agreement reached between the company and its men on July 25, without the aid of the board of arbitration. There vsdll be no report from the conciliation board, its func- tions having ceased when an agreement was reached between the two parties. The company guarantees that no dis- crimination will be used against any man in its employ because he belongs to an association or union of employees. London Traffic Committee Reports The report by a committee of the House of Commons which had been in- quiring into the problem of London traffic congestion was issued in the end of July, and locally, at least, it has caused some little sensation. The re- port savors more of modern daily jour- nalism making a case than of the calm, judicial, well-thought-out type of docu- ment to which one is accustomed in the case of Parliamentary committees. The main recommendation is in principle only a repetition of that of the Royal Commission of 1905 — namely, the formation of a traffic board for London to control and co-ordinate all public means of locomotion and to de- velop and extend them. Dispute will arise as to the proposed composition of the board, especially in regard to the recommendation that the London Coun- ty Council should be represented on it, seeing that the body as the owner of tramways is an interested party. The wisdom of the committee may be judged by the fact that one of its recommenda- tions is that fares should be reduced. Apparently congestion is to be dimin- ished by encouraging people to ride by means of cheapening fares. And this at a time when most undertakings are in difficulties despite increased fares. Wages Increased in Texas The Dallas (Tex.) Railway has granted a wage increase of 4 cents an hour for all conductors and motormen. This makes the scale from 42 cents to 46 cents an hour. During the first three months men are paid 42 cents an hour; for the next nine months they receive 44 cents an hour, and thereafter they will receive 46 cents. Wage increases for conductors and motormen of the Galveston-Houston In- terurban Railway, the Houston Elec- tric Company and the Galveston Elec- tric Company, have just been an- nounced. The new wage scale will be from 42 cents to 46 cents an hour. The Eastern Texas Electric Com- pany, Beaumont, Tex., has granted an increase of 4 cents an hour for its con- ductors and motormen. M. J. Loftus, superintendent of the lines in Sherman, Tex., owned and operated by the Texas Electric Com- pany, Dallas, notified the motormen and conductors that they would receive an increase in wages of 4 cents an hour, making the scale 42 cents to 46 cents an hour, instead of 38 cents to 42 cents. The El Paso (Tex.) Traction Com- pany has announced a wage increase for trainmen amounting to 2 cents an hour. The new scale will run from 42 cents to 46 cents an hour. In every case the new rates are ef- fective from Sept. 1. Vancouver Men Present Demands The railway employees of the British Columbia Electric Railway, Vancouver, B. C, on Aug. 8 submitted a proposed new wage schedule together with no- tice of the reopening of the present agreement, which will, therefore, auto- matically expire thirty days from that date. The new scale for city motormen and conductors as proposed by the men is 55 to 65 cents an hour, reached in twelve months in place of 40 to 51 cents an hour reached in eighteen months. For interurban men the proposed scale is 65 to 69 cents reached in twelve months instead of 40 to 53 cents, reached in eighteen months. A totally new provision is for the payment of 70 cents an hour to city motormen and conductors on night runs, which the men propose shall be those after 6.30 p.m., except when com- pleted before 8.30 p.m. The proposed agreement provides for a guarantee of an eight-hour day for week days, and six hours for Sundays, instead of a minimum of six hours on week days under the old contract. The spread is proposed to be reduced from eleven hours to ten hours. Under the terms of the old agree- ment, either party could reopen it on giving one month's notice. It will, therefore, be necessary to come to some conclusion before Sept. 8. The matter will in all likelihood go before an arbi- tration board under the Lemieux act. M. 0. Proposal Defeated On Aug. 11 the ratepayers of Guelph, Ont., by a majority of 437, defeated the proposed agreement between the city and the Grand River Railway (con- trolled by and operated in the interest of the Canadian Pacific Railway) , pro- viding for the taking over of the local railway line and making an extension to Puslinch Lake and Hespeler to con- nect at the latter town with the present system of the Grand River Railway (formerly the old Gait, Preston & Hes- peler Railway). The campaign was an exciting one, in view of the fact that while the citizens at first were in favor of giving the Canadian Pacific Railway the right to take over the local railway line and obtaining much-needed connections with other towns, the Hydro-Electric Com- mission was opposed to the agreement, perceiving that it would place the Ca- nadian Pacific Railway in a strategic position by giving to the railway sur- face rights over the streets of Guelph and handicap the present projected On- tario Hydro Radial Railway system, which is to cover western Ontario from Niagara to Toronto and to Windsor. Following the vote on Aug. 11 Sir Adam Beck, chairman of the Hydro- Electric Commission, received an invi- tation from the railway and manufac- turers' committee of the City Council of Guelph to be present at a meeting to be held there on Aug. 21 to consider the prospects of an electric line from Guelph to Hespeler. September 6, 1919 Electric Railway Journal 493 Puget Sound Will Use Electricity from Spokane Electric energy from Spokane is now penetrating every part of the vast elec- tric distributing system of the Stone & Webster interests from Tacoma on the south to Everett and Bellingham on the north. The Washington Povk^er Company transmits the energy to the Coast by means of the transmission lines of the Intermountain Power Com- pany. The latter company carries the power from Long Lake to Taunton on the Milwaukee, where it is retrans- mitted to Cedar Falls and then to Snoqualmie, where it is fed into the whole Puget Sound electric distributing system. The Intermountain Power Company is the company which buys power from various power companies and sells it to the Chicago, Milwaukee & St. Paul Railroad, the Stone & Webster interests and other customers. From Taunton, the eastern terminus of the Milwaukee's Puget Sound electrification, current is carried into the Puget Sound country over the transmission lines of the Mil- waukee Railroad. The Puget Sound unit of electrifica- tion of the Chicago, Milwaukee & St. Paul Railroad between Taunton and Seattle and the Sound is ready for operation and during the winter the Milwaukee road plans to operate all its transcontinental trains from Taun- ton to Seattle, Tacoma and way points by means of electricity. The contract with the Washington Water Power company is a permanent affair. The company agrees to furnish power to the Intermountain Power Company, which transacts the commer- cial business with the Coast concerns and the Milwaukee. From Long Lake to Taunton the distance is 112 miles; from Taunton to Cedar Falls, 139.2 miles; from Cedar Falls to Snoqualmie, 10.6 miles, mak- ing a total of 262 miles before the Spo- kane-generated power reaches the dis- tributing system of the Puget Sound country. Safety Cars Legalized at Terre Haute Ordinances are no novelty which for- bid the operation of one-man cars, but one is which expressly stipulates their use. Such an ordinance was passed by the Common Council of Terre Haute, Ind. By it the Terre Haute, Indian- apolis & Eastern Company is permitted to run Birney safety cars in accordance with the American Car Company's specification No. 100. The first instal- lation of these cars was described in the issue of this paper for June 28, through the courtesy of E. M. Walker, general manager. The exact wording of this ordinance follows: Whereas, the city of Terre Haute has reciuested the Terre Haute, Indianapolis & Eastern Traction Company to improve the street car service in said city, and in re- sponse thereto said company has Under- taken to comply with the city's said re- quest in that behalf, said company in a written communication has advised the city that it has conditionally arranged for the jiurchase and u.sc in tlie said city of thirty (30) new street cars of the type commonly known as the quiclv service or safety cars, which are particularly described in the American Car Company's specifications No. 100 and in such specifications called the Birney safety cars. Believing that it is in the public interest the city desires to meet the conditions specified in said com- pany's communications respecting such matter, reference to which is liereby made. Therefore : Section 1. On and after the adoption of this ordinance by the Common Council of the city of Terre Haute and the ap- proval thereof by the Mayor of said city it shall be lawful for the Terre Haute, Indianapolis & Eastern Traction Company, its grantees, successors and assigns, to op- erate in, along and upon the streets of said city either exclusively or in connection with the use and operation of the type of street cars now and heretofore used and operq,ted in said city, the type of street cars com- monly Icnown as the quick service or safety cars and of the general type designated by the American Car Company's specifications No .100 and particularly called the Birney safety car, with only one operative for eacli such car. Section 2. All ordinances and parts of ordinances in conflict with the provisions thereof are hereby repealed. Section 3. An emergency is hereby de- clared to exist for the immediate taking effect of this ordinance and the same shall therefore be in full force' and effect on and after its adoption by the Common Council of said city and its approval by the Mayor of said city. Dated, July 5, 191S. Normal Service Resumed in Los Angeles Both the Pacific Electric Railway, which gives interurban service in four counties and street car service in ten towns, and the Los Angeles Railway, which serves the major part of Los Angeles, CaK, were giving normal day- light service on Sept. 4 and substan- tially normal night service up to 10 p.m., with a promise of complete resto- ration within a week's time. The pub- lic is riding very heavily in full sym- pathy with the electric railways. A mass meeting of twenty-three prin- cipal business organizations of Los An- geles and vicinity representing practi- cally all commercial, industrial and manufacturing interests has pledged support to the electric railways and to the 200,000 working men in Los Angeles who do not belong to any union. The Labor Day union parade had 8700 men in line. There was little or no enthusi- asm. Moreover, there was no violence of any consequence anywhere. The situation on the steam railroads, where there was a sympathetic demonstration in which the national administration took a hand, is again normal. The strike was called in all depart- ments of the electric railways, but the effect was not noticeable except in con- nection with motormen and conductors. The men who left work in the shops, substations, and electrical overhead de- partments were immediately replaced. The companies have stopped advertis- ing for employees except motormen and conductors. The two companies are short only 20 per cent of the normal number now. The chief lesson from the experience of the Pacific Electric Railway during the last year and a half is that steam line brotherhoods cannot be tolerated on electric railways. Their ideas as to wages and working conditions are im- possible of fulfillment on lines that de- pend for their revenue chiefly on city and suburban fares and that must be operated in competition with private and public automobiles and motor trucks. In the case of the Los Angeles Rail- way it has been demonstrated again that an electric railway cannot be half union and half individual and that in southern California the sentiment is 90 per cent against union domination. It has also been established that this sen- timent is militant and willing to fight to maintain freedom from government by unions. United We Stand; Divided We Fall The Massachusetts Northeastern Street Railway, Haverhill, Mass., has ad- dressed an open letter to its employees explaining briefly the weight of the high cost of living on the electric rail- way business. The employees are urged to interest themselves in the solution of the difficulties of the company and to help inform the public of the crucial situation. A condensed table of facts gleaned from the testimony presented at the electric railway hearings in Washington is presented to the em- ployees in the open letter. The management of the company declares in the statement that in- asmuch as the United States govern- ment has recognized the principle that every business is entitled to a fair and just return on the money invested in the business, the electric railway must have this fair and just return or it cannot pay wages and upkeep. The final dec- laration of the management is : If the authorities who control i-ailway fares do not apply the same fair principle applied by the United States government to the steam railroads, the electric railways must quit business. The Massachusetts Nortlieastern Street Railway is one of the electric railways facing tliis situation. You as employees of the company are just as interested in the solution of our difficulties as is the company. If we lose our job, you lose yours, too. Post-War Rehabilitation Program The Interstate Public Service Com- pany, operating between Indianapolis, Ind., and Louisville, Ky., is planning to expend from $350,000 to $500,000 as a part of its af ter-the-war rehabilita- tion. Bert Weedon, general freight and passenger agent of the company, states that the work of improvement will be begun at once. A central shop to cost about $100,000 will be built, but the location of this shop has not been determined. The establishment of a uniform voltage of 600 is contem- plated to take the place of the present voltage of 600 and 1200. The company now plans to run freight trains of from five to ten cars each. A number of all-steel cars have been ordered for the company and additional limited service is to be provided, with prob- ably one or two limited runs providing only one stop between Indianapolis and Louisville. 494 Electric Railway Journal Vol. 54, No. 10 Riot Insurance Taken Out. — The Cleveland (Ohio) Railway has taken out an insurance policy in Chicago, said to be the largest ever written, for $10,110,000 against "riot and civil com- motion." The premium was $37,110. Advance in Wages in Bristol — Wages of the employees of the Bristol & Plain- ville Tramway, Bristol, Conn., were ad- vanced 5 cents an hour, effective on Aug. 24. New men will receive 44 cents and older men 50 cents an hour. Interurban Men Want More. — Train- men of the Illinois & Iowa Railway at Clinton, la., are demanding an increase in wages from 40 cents to 90 cents an hour. Rules governing working condi- tions have also been drawn up for pre- sentation to the company. Wage Award Acceptable. — The award of the Public Service Commission of Missouri of a 45 per cent wage in- ci-ease to employees of the United Rail- ways, St. Louis, Mo., was read to the men at a union meeting during the week ended Aug. 30 and accepted. Claim Made for Electrolysis Damage. — The Memphis (Tenn.) Telephone Company has filed a suit against the Memphis Street Railway in the Chan- cery Court to recover $3,700, which it claims represent damage to its cables due to electrolytic action of the rail- way return circuit. Wage Increase Granted. — The Toledo, Bowling Green & Southern Traction Company, Toledo, Ohio, has granted a wage increase of 5 cents an hour de- manded by the employees. About 200 employees between Findlay and Toledo are affected. Under the new rate they will receive 48 cents an hour. Queens County Wages Increased. — W. 0. Wood, president of the New York & Queens County Railway, Long Island City, N. Y., on Aug. 26 an- nounced a voluntary increase of 25 per cent in the wages of the employees in the operating and transportation de- partments. Conductors and motormen who have been receiving 41 to 49 cents an hour will get 52 to 62 cents. Banquet to Herbert Hoover. — The en- gineers of America, under the auspices of the American Institute of Mining and Metallurgical Engineers, will give a dinner to Herbert Hoover in New York, at the Waldorf-Astoria Hotel on Sept. 16, on the occasion of his arrival from abroad. W. L. Saunders is chair- man of the banquet committee. Wages Raised on Ohio Interurban. — The directors of the Toledo, Bowling Green & Southern Traction Company, Findlay, Ohio, a part of the old Cin- cinnati Street Railway, have granted de- mands of the employees for a wage scale of 48 cents an hour. The Town Councils of Bowling Green, Portage and Maumee had previously refused the company's request for an increase in fare. Franchise Talk at St. Paul. — Upon re- quest of Horace Lowry, president of the St. Paul (Minn.) City Railway, a hear- ing has been called for consideration of a cost-of-service franchise for that city by the Council. At the suggestion of one of the commissioners Sept. 9 was set for the first date. A tentative franchise has been submitted by the company, but no action has been taken. North Shore Wages Adjusted. — Em- ployees of the Chicago, North Shore & Milwaukee Railroad, Highwood, 111., have accepted the compromise increase in wages offered by the company. The settlement is said to have been at 67i cents an hour on the basis of a ten and one-half hour day. The men for- merly were receiving 45 and 50 cents an hour. The men had asked for an increase to 75 cents an hour. Proposed New Line in Canton. — The municipality of Canton, China, is of- feiing a franchise for the construction of an electric railway 10 miles long around the city, upon the site of the old city walls, which are being demol- ished. A copy of the terms upon which the franchise will be granted can be obtained from the Far Eastern Divi- sion, Bureau of Foreign and Domestic Commerce, Washington, D. C. (Refer to file No. 119,907.) Civil Service Examinations An- nounced.— The New York State Civil Service Commission has announced the following examinations for Sept. 27, 1919: Bridge designer, office of Transit Commissioner, salary $1,500 to $2,100; five years of practical experience in drafting required. Junior engineer. Grade 7, salary, $1,200 to $1,500; two years of practical experience required. The positions are open to non-residents as well as residents of the State. Border Strike Settled. — The strike on the Niagara, St. Catharines & Toronto Railway, St. Catharines, Ont., which tied up the Niagara district for three days, ended on Aug. 24 in a compro- mise. Strikers voted to return to work after a committee had reported that Superintendent Oliver had agreed to give them the information they asked regarding reasons for discharging Con- ductor William Bell, the union business agent. Employee-Director in St. John. — In order that the employees may be kept more closely in touch with the com- pany's affairs, and to promote a better mutual understanding, it has been de- cided to give the employees of the New Brunswick Power Company, St. John, N. B., the right to elect an employee as a member of the board of directors of the company, with all the authority and privileges enjoyed by other direc- tors. This director is to be elected by a popular vote of all the employees. Track Repairs Planned at Toledo. — The Toledo Railways & Light Com- pany, Toledo, Ohio, has resumed work on track repairs, which was stopped when the City Council passed the ous- ter ordinance on June 30. The tracks on Superior Street between Jackson Street and Madison Avenue will be re- newed. The management has announced that the company will proceed with per- manent improvements on Adams Street, where new track will be laid. The work on Front Street is also to be completed. Wants Decision Rendered — Louis Fridiger, counsel for the Amalgamated Association, appealed to Justice Robert F. Wagner of the Supreme Court on Sept. 2 for judgment on the pleadings against the Third Avenue Railway, New York, N. Y., in its suit to restrain the Amalgamated Association and thirty- four others from inducing or trying to induce employees of the railway and its subsidiary companies to join the union. St. Louis Employees Heard. — The Public Service Commission of Missouri gave a rehearing on Aug. 26 to the United Railways, St. Louis, on the subject of increased wages to electri- cians in the employ of the company. These employees were included among other employees of the company in the arbitration of increased wages, and at present have the same standing in the award as other employees. The com- pany called the attention of the com- mission to the fact that these employees are under contract to the company. I. T. S. Labor Conference. — Repre- sentatives of the employees of the Illi- nois Traction System, Peoria, 111., and officials of that system were scheduled to meet Sept. 2 in the office of Superin- tendent E. D. Bell in St. Louis to ar- range for the transfer of the contract by which the company and the em- ployees are now bound. At the time of the drawing of the contract the men were members of the Brotherhood of Interurban Trainmen, while they now belong to the Amalgamated Association. The question of wages was also to be taken up at the meeting. Conference Between Officials. — With a view to preparing a franchise similar to the one held by the Cincinnati (Ohio) Traction Company, Hubert A. Mathonet and J. W. Whitemore of the Chamber of Commerce of Kansas City, Mo., con- ferred recently with W. C. Culkins, Street Railroad Director of Cincinnati. They expressed considerable satisfac- tion with the ordinance governing the operation of cars in Cincinnati and ex- tended an invitation to Mr. Culkins to address the members of the Kansas City Chamber of Commerce on the sub- ject at an early date. Portland Men Dissatisfied. — The or- ganized employees of the Portland Rail- way, Light & Power Company, Port- land, Ore., have expressed by vote their disapproval of the award of 12h per cent increase in wages made by the War Board. According to an agreement be- tween the company and the employees decisions of the War Board will be ac- September 6, 1919 Electric Railway Journal 495 cepted during the period of the war, or until the peace treaty is signed. The union is expected to adhere to this agreement and the company will not protest the decision of the War Labor Board. Shore Line Strike Broken. — The Shore Line Electric Railway, Norwich, Conn., has resumed service on all its lines after a strike. One by one, divi- sion after division was started with new men. For the first time in nearly five weeks a car was operated between Nor- wich and Willimantic on Aug. 18. The men are being paid 37i cents, 39 cents, and 42i cents an hour, the latter rate being said to apply to former em- ployees who returned to the service of the company. Wants Public to Attend Wage Dis- cussion.— Rankin Johnson, president of the Trenton & Mercer County Traction Corporation, Trenton, N. J., has re- quested the public to attend the con- ference to be held between the com- pany and employees relative to a de- mand for a 25 per cent increase in pay. President Johnson says the wage ques- tion is one of general public interest and he wants the public to know what is being paid the men and what the company's income is at this time. The date of the hearing has not been set. Proceedings to Oust Road from High- way.— Walter S. Ruff, prosecuting at- torney of Starke County, on Aug. 12 brought quo warranto proceedings against the Northern Ohio Traction & Light Company in the Supreme Court of Ohio to compel the company to va- cate the public road between Canton and Massillon. It is claimed the fran- chise has expired and that the company will not sign another one prepared by the County Commissioners, which con- tains a rate of fare obiectionable to the management. The petition alleges that the entire road space is needed for vehicular traflSc. Mexican Interurban Talk. — A press dispatch from Mexico City, Mex., is to the effect that a contract has been entered into by the Department of Com- munication and Public Works of the Mexican government with the Mexico Tramways, Ltd., for the resumption of the construction of the interurban elec- tric railway which will operate between the city of Mexico and Pueblo, about 130 miles. The construction of this line was begun some years ago, but before much progress had been made the revolutionary activities caused a suspension of work. Wage Adjustment in Atlantic City. — Through an agreement signed between the employees of the Atlantic City & Shore Railroad, Atlantic City, N. J., and A. J. Purinton, general superintendent and receiver of the corporation, a wage increase approximating 10 cents an hour has been granted. This is a com- promise, the men having asked for a raise approximating 24 cents an hour. The new agreement became effective at once and will run until March 1, 1921. The trouble over the shop rules and recognition of the union was also amic- ably settled. Nashville Strike Settled.— The strike of the trainmen of the Nashville Rail- way & Light Company, Nashville, Tenn., has been settled. The men were out twenty hours. The agreement which resulted in the settlement was reached at a conference attended by the Mayor, a committee of the strikers and officers of the company. The company has agreed to recognize the union and to re- instate all former employees. The men have agreed not to present any new de- mands for a year. Both sides have agreed to arbitrate all differences in the future. Wage Increase in Binghamton. — Conductors and motormen employed by the Binghamton (N. Y.) Railway are or, a new salary schedule. An increase of 3 cents an hour, an average of 30 cents a day, $2.10 a week, providing they work seven days, was voluntarily granted by William G. Phelps, receiver for the company. No demand for higher pay had been made by the plat- form men. Conductors and motormen had been receiving an average wage of 31 to 35 cents an hour. Pay will now range from 34 to 88 cents an hour. Previous to the war the maximum rate was 24 cents an hour. Service Being Gradually Resumed. — During the second week of the strike in Louisville, Ky., the Louisville Railway managed to keep ten lines in operation from 7 o'clock in the morning until 6 in the evening, service gradually im- proving until cars' were running on four to ten-minute schedules. The com- pany has i-efused to arbitrate with the union, agreeing to talk with individ- uals, and discuss matters with city offi- cials and representatives of business men's organizations. A federal labor conciliator arrived in the city during the week, but discovered that there was nothing that he could do. Mutual Insurance for Ottawa Em- ployees.— A plan of mutual insurance is under consideration by the board of directors of the Ottawa (Ont.) Electric Railway and will be put in force in the near future. The company pro- poses to pay half the premium on a $1,000 policy taken out by any em- ployee with the understanding that he shall receive $10 a week in case of sickness. If a man leaving the employ of the company desires to continue to carry his policy, he will be permitted to do so, and any man retiring on ac- count of age will receive either a paid- up life insurance policy or a cash pay- ment based on the amount of money paid by himself and the company. So the People May Know. — In an- nouncing a number of changes in rout- ing for the betterment of the service, the Cincinnati (Ohio) Traction Com- pany has published an explanation of the service-at-cost plan, under which it is now operating. It expresses the hope that the peak of increasing cost of op- eration has now been reached and that it will now be possible to make some of the improvements that are desired and needed. At the same time, care in the expenditure of money is necessary, since every dollar expended is reflected in the rate of fare. Some comparisons are made between the rate of fare in Cincinnati and fares in other places. Wage Increase in Johnstown. — All motormen and conductors of the John- stown (Pa.) Traction Company re- ceived a substantial increase in wages effective on Sept. 1. According to the iiew rates, motormen and conductors for the first three months will receive 45 cents an hour; next nine months, 47 J cents; after the first year, 50 cents. Under the former rates, an employee the first three months with the com- pany received 40 cents an hour; from the third to the sixth month, 41 cents; from the sixth to the twelfth month, 42 cents; from the twelfth to the eigh- teenth month, 43 cents; from the eighteenth to the twenty-fourth month, 44 cents, and after twenty-five months, 45 cents an hour. B. R. T. Employees Accept Increase. - -The employees of the Brooklyn (N. Y.) Rapid Transit Company on Aug. 29 voted to accept the agreement of their representatives with the oflScers of the company providing for an in- crease in wages of 25 per cent and leave other questions to arbitration. Among matters still in dispute are the demand for a nine-hour day, instead of ten as at present, and the reduction of the term of employment before maxi- mum wages are paid from ten years to five. An arbitration committee of three will take up these matters. Patrick J. Shea of the Amalgamated will represent the workers, and Lindley M. Ganison, receiver for the Brooklyn Rapid Transit System, the company. The third party, it was said, will be Lewis Nixon, Public Service Commissioner. Short Strike in Peoria. — Cars are op- erating in Peoria, 111., after a strike which for a time threatened to tie up the entire industrial life of the city, inasmuch as the strikers demanded that all workers in the city leave their employment and join the strike. Strik- ers at the time threatened violence to the cars and property of the Peoria Rail- way, but police interference prevented disorder. The trouble was caused by a strike among the miners. It spread to a number of other industries, includ- ing the railway. Motormen and con- ductors ran their cars into the carhouse and went quietly to their homes for fear that labor insurgents engaged in the general sympathetic strike would do damage to the rolling stock. The rail- way men were persuaded in a few hours to resume their duties. Program of Meeting Western Society of Engineers A meeting of the Western Society of Engineers will be held Sept. 8 in Chi- cago. The subject will be "The Eco- nomic Future of Transportation Utili- ties." There will be several speakers. 496 Electric Railway Journal Vol. 54, No. 10 Financial and Corporate Municipal Railway Profit Seattle Road Reported to Have Been Operated at Profit of $6,808 for First Three Months Seattle's electric railway system netted a profit of $6,808 for the first three months of operation under mu- nicipal ownership, according to figures submitted by Thomas F. Murphine, superintendent. Revenues from all sources amounted to $1,299,039, a gain of $163,916 over the quarter ending March 31, 1919. Total known operat- ing expenses are shown by the report to have been $1,052,727, to which Mr. Murphine adds an estimate of $40,722 for industrial insurance and damage claims, making a total of $1,093,449 as compared with $857,118 in the quarter ending March 31, 1919. In discussing the report Mr. Murphine said in part: Extraordinary expenditures in the way of inaintenance during tlie quarter more tlian offset tlie depreciation, as shown by the statement in the financial report that an average for depreciation would ordi- narily be $75,000. Owing to the fact, how- ever, that our maintenance charges are heavier by $98,743.93 than the same period last year we feel that we have appreciated the property and that no depreciation should be charged. The total maintenance expenditure of $230,540 for this quarter is at the rate of $922,163 a year, or approximately 6 p.er cent of the value of the street railway properties. The various items for interest, industrial insurance and damage claims, de- ducted from the gain, would leave a net profit during the quarter of $6,808. It will be noted from the statement that we operated during this quarter a total of 442.572 car-hours, which is 95,212 more car-hours than were operated during the corresponding quarter of the previous year by the combined lines of the Puget Sound Traction, Light & Power Company and the Municipal PLailway divisions A and C. It is also shown that we operated 760,- 499 more car-miles than in the correspond- ing quarter of the previous year by both railway systems. The fact that the car-miles operated, which show an increase in excess of 22 per cent over the car-miles operated in the same quarter of the previous year, taken in conjunction with the fact that there has been a great increase in the use of the automobile as a method of transportation, indicate that the people are now getting an increased service in excess of the in- creased growth of the population of the city. Mr. Murphine estimates that revenue derived from the operation of the mu- nicipal railway during the year 1920 will aggregate $7,017,000. Budget es- timates submitted by Mr. Murphine to the Council call for a total expenditure of $7,002,250 during the year, making the net revenue for the year $14,750 on the basis of Mr. Murphine's figures. Revenue receipts as itemized by Mr. Murphine will be as follows: Passenger fares, $6,225,000; freight, $60,000; sale of advertising contracts, $20,000; common user rights, $157,000; sale of power, $25,000; safety cam- paigns, $10,000; miscellaneous, $20,000; stores to construction, $500,000. While the city will receive $25,000 from the sale of power, it will pay the Puget Sound Traction Company approx- Receiver for Berkshire Company, Beset by Labor and Fare Troubles, May Resume Service in Part A partial resumption of service on the Berkshire Street Railway in Pitts- field and North Adams, Mass., is hoped for early realization following the ap- pointment of Clinton Q. Richmond, gen- eral manager, as receiver of the com- pany. The road has been tied up for about four weeks by a deadlock regard- ing revenue and wages. In Massachusetts the "company oper- ates about 114 miles of track and is the chief source of electric transporta- tion from north to south, and vice versa in western Massachusetts. A revised schedule of fares has been proposed by Mr. Richmond, in which the 5-cent fare is to be retained within a 2-mile radius in the cities of Pittsfield On Aug. 28 the Ohio Public Utilities and North Adams, with an outside zone Commission ruled that the Cincinnati rate of 2.5 cents per mile. imately $700,000 during the year for current. The $10,000 safety cam- paign allowance is expected to result from the inauguration of "safety first" measures which will reduce the budget estimate for medical aid and industrial insurance that amount. The $500,000 stores to construction item represents supplies to be bought during the year out of maintenance funds that will be used in construction work and will be chargeable to the bond construction fund. Ohio Abandonment Sanctioned & Columbus Traction line between Owensville and Hillsboro could be dis- mantled and junked, but that the sec- tion between Owensville and Norwood must be kept in operation. The con- sumers of current along the abandoned portion will be supplied until some other arrangement can be made for thtm. The evidence showed that the auto truck and automobile have been big factors in damaging the line. The order was made on the applica- tion of the Union Savings Bank & Trust Company, Cincinnati, trustee for the first mortgage note holders, to abandon the entire line. The petition was filed under the Gilmore act of 1917. Operation of the road was begun in- 1903. Common and preferred stock to the amount of $2,500,000 each was is- sued, together with $600,000 of first and $86,000 of second mortgage bonds. The destruction of the Little Miami River bridge by a flood in 1913 threw the company into the hands of a re- ceiver. In 1918 the losses had become such that the courts ordered the prop- erty sold, and the Union Savings Bank & Trust Company bid it in at $200,000 as trustee for the first mortgage bond- holders. During the receivership the net earn- ings varied from $6,253 to $32,430, but they were never sufficient to pay the fixed charges. The commission found that the enormous increase in operating- expenses had played a big part in bringing the property to its present condition. In 1913 it was found that operating expenses and taxes were $88,467, while in 1918 they had in- creased to $172,130 or almost 100 per cent. The commission expressed the belief that the present owners should en- deavor to operate the portion of the road that is paying best until the loop in Cincinnati is completed, when in- terurban cars will be able to reach the business portion of the city. After that, it was stated, there can be Mr. Richmond has offered to increase the wages of car-service men 12 per cent provided the Massachusetts Pub- lic Service Commission grants the new rate schedule. The men demand a 33 per cent increase, claiming that their rates of pay should be on the same basis as the Springfield Street Railway. The company's officials maintain that a 12 per cent wage increase would place the men on the same basis as the em- ployees of the Connecticut Company and of the local systems at Albany and Troy, N. Y. Petition for Receiver Filed Aug. 22 Three petitions for a receiver were filed on Aug. 22. The applicants were the New York, New Haven & Hartford Railroad, and W. F. Gilbert & Company. New Haven, Conn. The New Haven Railroad is the owner of the stock of the Berkshire Company ($5,398,100) and of debenture bonds of $200,000 issued in 1905, the interest on which has been defaulted since March 1, 1918. Gilbert & Company are coal dealers and creditors of the Berkshire Company to the extent of $48,000. The company is also indebted to the New Haven road on notes for $3,357,500, and in further sums for which no notes have been issued for cash advanced to finance con- struction and to meet interest and other expenses. Many industries are dependent upon the company's service and there is a strong disposition in the district to bring about a more satisfactory sched- ule of rates which will at least enable the more essential lines to resume oper- ation. The refusal of the employees to return to their posts, even upon the basis of the 12 per cent increase sug- gested, is proving a stumbling block in the restoration of local service, but it is expected that in the city districts cov- ered it will be possible to start opera- tions soon if the new rate schedule is sanctioned. The company will probably little question of the future prosperity employ safety cars to a considerable of the line. extent on these lines. September 6, 1919 Electric Railway Journal 497 $42,790,000 Required This Is Cash Requirement of I. R, T. for Five Years, in Addition to Earnings The committee representing the hold- ers of the 4i per cent collateral trust gold bonds of the Interborough-Metro- politan Company, New York, N. Y., has received from Stone & Webster a re- port on the affairs of the Interborough Rapid Transit Company supplementary to one made previously. In the circular of Aug. 13, to which reference was made in the Electric Railway Journal, for the committee representing the security holders it was pointed out that the estimate of Stone & Webster as to the pi"obable deficits of the Interborough Rapid Transit Com- pany for 1920 to 1924 inclusive was "based upon the scale of wages now prevailing in New York City and the present prices for materials and sup- plies." Since that circular was issued the company has granted a 25 per cent in- crease in wages to a large proportion of its employees and has agreed to submit to arbitration various questions of dif- ference between the company and its employees affecting wages, hours and conditions of work, etc. Stone & Webster now advise that the 25 per cent increase in wages, if con- tinued, supposing other conditions to continue as at present, will result in increasing their estimates of probable deficits, and that the estimates are in substantial accord with the figures of the officers of the company. A table submitted by the engineers shows that although under the old wage scale the deficit would decrease prog- ressively yearly, and thus in 1924 a sur- plus of $864,000 would be shown, the. 25 per cent increase in wages would re- sult in the following annual deficit: 1920, $8,778,000; 1921, $8,678,000; 1922, $7,155,000; 1923, $5,993,000; 1924, $4,- 786,000. Stone & Webster estimate, therefore, that the company will require before July 1, 1924, under the new wage scale in force, in addition to about $7,400,000 needed for capital purposes, $35,390,000 for deficits, making cash requirement for that period in addition to earnings $42,790,000. The engineers point out that although present wages, cost of materials and supplies and other operating expendi- tures continue, and the 5-cent fare is in force, the company will not be able to earn its fixed charges for many years after 1924. They state also that the increased wage scale just granted to the employees of the New York Rail- ways will -make it impossible for the surface lines to earn their operating ex- penses and taxes unless there is a sub- stantial increase in gross earnings. The investigation carried on by Stone & Webster, in co-operation with Price, Waterhouse & Company, certified pub- lic accountants, covered the city-owned subways operated by the Interborough and the elevated lines operated by that company under its own franchise and its lease from the Manhattan Railway. The preliminary report, dated Aug. 11 and made public on Aug. 13, showed that a deficit would exist under the old wage scale up to 1924, when for the first time a slight surplus would be shown. The report on which the pres- ent letter is based takes into considera- tion the 25 per cent increase granted after the recent strike. Sells Direct to Investor $3,600,000 of Five- Year 7 Per Cent Notes Have Been Sold to Home Investors at Milwaukee The Milwaukee Electric Railway & Light Company, Milwaukee, Wis., is another public utility that has demon- strated that it is possible to dispose of a considerable issue of public utility se- curities through a direct off'ering by the company itself to local investors. Up to July 24 nearly $3,500,000 of an issue of $3,600,000 of five-year 7 per cent bond-secured notes had been bought in small lots by 4750 investors, mostly Milwaukee men and women. The sale started on Dec. 18 last and is still in progress, less than $100,000 of the issue remaining to be sold. The company felt from the beginning that it could sell the notes at less cost through advertising in the local papers than through the usual bankers' syn- dicate. This has proved true. The advantages of such a sale from the standpoint of the company through the ties that it makes among local peo- ple of material advantage to the com- pany are too readily apparent to need reiteration. The saving in marketing the issue will work indirectly, of course, to the benefit of the company's custom- ers, for they are concerned in all the savings and economies effected by the company. It might be remarked, how- ever, that the new investors have brought the company a good many new customers. Another phase of the matter is that the campaign of advertising conducted in connection with the placing of the securities has introduced the company to the habit of advertising regularly and fairly liberally, with a resulting good effect upon the mental attitude of all home papers toward the busi- ness. Most of the advertisements about the note sale have been coupled up in the same column with advertisements of the company's electric railway service, its electrical appliance business, its in- terurban express service, and its public relations generally, with notably good results in all of these fields. In short, the advertising has not only sold the notes at home, but is believed to have gone far to "sell" the company into the good-will of the public at the same time. The price of the notes is par for cash. In the case of those who invest in the notes and need their money before the maturity date, the company has agreed to create a market by putting the notes on sale any time after the sale of the original issue closes. Sept. 1 Dividend Postponed Indianapolis Company Decides on This: Course After Conference With Public Service Commission After discussing the matter with the Public Service Commission of Indiana, the directors of the Indianapolis Street Railway have decided to postpone tem- porarily the Sept. 1 installment of divi- dend on the Indianapolis Street Rail- way stock. In a letter to the stock- holders, dated Aug. 30, Robert I. Todd, president of the company, calls atten- tion to bond interest charges due since April 1 and July 1, 1919, which have to be met; also to an additional annual cost of operation estimated at $125,000 resulting from the recent wage in- creases granted to the employees of the company. It is stated in the letter to the stockholders that a petition will be presented to the commission within a few days for permission to charge 1 cent for transfers on the city lines. Following the conference with the directors, the Public Service Commis- sion addressed a commendatory letter to the railway stating that it was not the function of the commission to direct the payment or non-payment of divi- dends. This letter follows in part: The commission is informed that the company has made rapid and satisfactory progress in the matter of extensions and service. The company has shown a dis- position to meet all the requirements of the commission, and the general attitude of the company with respect to all matters which have been before the commission is to be commended. In the matter of the capitalization of the consolidated company the officers and directors have shown a spirit of compli- ance. The commission is informed that the consents of bondholders to the tem- porary discontinuance of direct payments into the bond-sinking funds and the dis- continuance of payments of interest on bonds in the sinking funds are now being- secured. The commission's order required that these consents be secured by Sept. 1. Our information is to the effect that it will be impossible to secure the necessary con- sents by Sept. 1 and that perhaps thirty days additional time will be necessary ap- parently laying a sound financial basis for future operation. The commission is of the opinion that no dividends should be paid on Sept. 1 for the reason that while the company has made satisfactory progress in fulfillment of its franchise obligations there is still con- siderable work to be done. In view of this fact, the commission is not In a position to hold that there has yet been a substantial compliance with the franchise requirements or the orders of the commission, although the company will un- doubtedly within a short time be able fully to comply with all such requirements. This attitude of the commission should not be interpreted by the stockholders of the company as indicating a disposition on the part of the commission to permit no dividends to be paid ; on the other hand, the commission is of the opinion that the payment of dividends should be resumed at the earliest date consistent with the com- pany's welfare and its franchise obliga- tions. The commission is fully of the opinion that a return on investment Is absolutely essential to the establishment of credit which will make it possible for the company to render proper service. We are advised that within the next two or three months the company will have com- plied with all of the requirements in ques- tion. The commission, therefore, can see no reason why the payment of dividends cannot be resumed when such requirements have been met. Among other things, the purpose of this letter is to dispel any thought that the commission is opposed to the payment of dividends or that the commission believes that the payment of dividends should be postponed for a long period of time. This information is given to the company and its stockholders in order that they may not be misinformed about the commission's at- titude. 498 Electric R a i l w a y J o u r n a l Vol. 54, No. 10 Fare Returns for May Give Promise Reflect a Belated Readjustment of the Industry to Unfavorable Conditions Rather Than to Any Improvement in Conditions Themselves There is a promise of better condi- tions for the future in the operating returns of electric railways for the month of May as made by companies reporting to the Information Bureau of the American Electric Railway Asso- ciation. Compared with May, 1918, a slight improvement is shown, which if it continues, should eventually lead the industry back to a self-sustaining basis. Returns Analyzed The returns for May offer the first opportunity in a long time for making a fair comparison with the correspond- ing month of the preceding year; that is, it is the first month that has oc- curred in a long time in which gen- erally normal conditions prevailed in two successive years. In May, 1916, the heavy storms which crippled opera- tion in the East, South, and Middle West during the winter and spring were well over and the roads had about gotten back to normal operation. And there was no influenza epidemic at the time in either year such as defeated all attempts to make comparisons during the months of October, November and December, 1918. It is fair to assume, therefore, that the figures in the ac- companying tables reflect general con- ditions as they affect electric railways. A short study of the accompanying tables leaves the impression that the slight improvement noted above is due to a belated readjustment of the in- dustry to unfavorable conditions rather than to any improvement in conditions themselves. The improvement shows principally in the net income per cai'- mile which for the country generally increased 0.35 per cent. That this im- provement is not due to favorable oper- ating conditions is shown by the rela- tive increases in operating revenues and operating expenses. The revenues per car-mile increased 22.87 per cent while the expenses went up 33.59 per cent, producing a decrease in the net revenue of 0.39 per cent. This is the smallest decrease in net revenue that has been returned in many months, and that it is not larger can be attributed to the numerous fare increases which are beginning to produce the increased revenue that was expected of them. Taxes increased 9.42 per cent and deductions from income 8.95 per cent. The situation was saved, however, by the increase in non-operating income and the development of revenue from auxiliary operations which was not available in 1918, all of which confirms the impression that the slight improve- ment noticed is due to a belated read- justment to abnormal conditions. The companies are securing new fare in- creases and they are realizing on past increases. And in addition they are developing sources of revenue outside of strictly railway operations. Another source of increased revenue should not be overlooked, and that is the demobilization of the army. Several million men have been returned to private life from abroad and from the training camps, and it is safe to as- sume that a large proportion of these are now daily riders. In addition, as somebody has pointed out, this class of men are responsible for a great deal of the pleasure riding. In Tables III and IV on page 499 details of the operating expenses are tviven; Table III showing the amounts in dollars and Table IV showing the amounts in cents per car-mile. Heavy increases in the cost of ma- terials are implied in the two mainten- ance accounts, way and structures and equipment. In the former the cost per car-mile jumped from 2.66 cents to 4.64 cents, an increase of 74.44 per cent. This is for the country as a whole. The greatest increase is in the East where the cost of maintenance of way and structures rose from 3.38 cents per car-mile to 6.61 cents, an in- crease of 95.56 per cent. In the South and West increases in this account were more moderate, being 20.95 per cent and 27.78 per cent respectively. Operating Expenses Show Increase The cost of operating the cars, that is principally the wages of trainmen, increased for the country as a whole from 9.94 cents to 12.97 cents per car- mile, or 30.48 per cent. The heaviest increase in this account was also in the East where the actual cost per car- mile is already greatest, being 10.18 cents per car-mile in 1918 and 13.81 cents per car-mile in 1919, an increase of 35.66 per cent. In the South and West the increase was practically uni- form, being 23.79 per cent in the South and 23.89 per ceht in the West. The cost of power for the country as a whole was 3.32 cents' per car-mile in 1918, and 3.93 cents in 1919, an in- crease of 18.37 per cent. The greatest increase in the cost of power was in the South where it amounted to 97.87 per cent, rising from 0.94 cent per car-mile to 1.86 cents per car-mile. However, a number of companies in the South include the cost of power under conducting transportation which accounts for the smallness of the amoui\t and also in part for the large ratio of increase. As in the past, the returns from both city and interurban companies have been classified according to the following geographic grouping: East- ern District — east of the Mississippi River and north of the Ohio River; Southern District — south of the Ohio River and east of the Mississippi River; Western District — west of the Missis- sippi River. The figures in italics in. the tables indicate a decrease. A Profit Replaces a Loss The city authorities of Ocean City, N. J., are meeting with success in the operation of the Ocean City Electric Railway following the refusal of the company to operate because of the expenses being too great. William E. Massey, trustee of the railway, who was appointed to the position by Chan- cellor Edwin Robert Walker, reports that since the line has been in opera- tion this summer the increase m net travel with a 7-cent fare has been 34 per cent. The same number of cars is in operat'on as was used during 1918. The road was operated during the sum- mer of 1918 and the board of directors suspended operation on Nov. 1. Residents of the city, especially those who spent the summer months there, demanded that the road be placed in operation again and Mayor Champion and others had a bill passed by the Legislature, allowing the city to oper- ate the line. The municipality advanced a small amount of money so the road could begin operations this summer, and this amount has already been paid back. The road is more than meeting its operating expenses and from pres- ent indications there will be a balance in the treasury by Oct. 1, the date to which the order permits operation un- der the trustee. TABLE I— income STATEMENT OF FORTY-FOUR ELECTRIC RAILWAYS FOR MAY, 1919, COMPARED WITH MAY, 1918 . United States ■ East ■ South ■ ■ West ■ 1919 1918 1919 1918 1919 1918 1919 1918 Railway operating revenue $9,915,162 $7,976,269 $6,303,234 $4,867,624 $1,190,642 $1,053,590 $2,421,286' $2,055,055 Railway operating expens s 7,375,150 5,456,419 4,916,532 3,480,975 781,454 629,480 1,677,164 1,345,964 Net operating revenue 2,540,012 2,519,850 1,386,702 1,386,649 409,188 424,110 744,122 709,091 Net revenue: Auxiliarv operations 79,260 70,441 1,012 7,807 Taxes 513,643 462,133 295,431 252,907 94,601 95,173 123,611 114,053 Operating income 2,105,629 2,057,717 1,161,712 1,133,742 315,599 328,937 628,318 595,038 Non-operatins income 558,962 414,008 242,897 222,389 171,437 144,027 144,628 47,592 Grossincome 2,664,591 2,471,725 1,404,609 1,356,131 487,036 472,964 772,946 642,630 Deductions from gross income 1,967,340 1,784,133 1,143,893 1,010,702 281,062 264,684 542,385 508,747 Net income 697,251 687,592 260,716 345,429 205,974 208,280 230,561 133,883 Operating ratio (per cent) 74.38 68 41 78.00 71.51 65 .63 59.75 69.27 65.50 Car-miles operated 24,500,401 24,223,264 14,010,100 13,803,099 3,504,239 3,484,715 6,986,062 6,935,450 September 6, 1919 Electric Railway Journal 499 TABLE II— INCOME STATEMENT IN CENTS PER CAR-MII,E OF FORTY-FOUR COMPANIES APPEARING IN TABLE 1, FOR MAY, 1919, COMPARED WITH MAY, 1918 — — United States . ■ • East- South — West — Per Cent Per Cent Per Cent Per Cent 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase 1919 1918 Increase Railway operating revenue 40.46 32.93 22.87 44.99 35.26 27.59 33.98 30.23 12.40 34.66 29.63 16.98 Railway operating expenses 30. 10 22.53 33.59 35.09 25.22 39. 13 22.30 18.06 23.48 24.01 19.41 23.69 Net operating revenue 10.36 10.40 0.S9 9.90 10.04 HO 11 .68 12. 17 i.os 10.65 10.22 4.21 Net revenue: Auxiliary operations. 0.32 0.50 0.03 0. 1 1 Taxes 2.09 1.91 9.42 2. 1 1 1.83 15.30 2.70 2.73 1 . 10 1 .77 1 .64 7^93 Operating income 8.59 8.49 1.18 8.29 8.21 0.97 9.01 9.44 i.56 8.99 8,58 4.78 2.28 1.71 33.33 1 .73 1 .61 7.45 4.89 4. 13 18.40 2.07 0.69 200.00 Gross income 10.87 10.20 6.57 10.02 9.82 2.03 13.90 13.57 2.43 1 1 .06 9.27 19.31 Deductionsfrom gross income 8.03 7.37 8.95 8. 16 7.32 11.47 8.02 7.59 5.66 7.76 7.34 5.72 Net income '. 2.84 2.83 0.35 1 .86 2.50 26.60 5.88 5.98 1.C7 3.30 1 .93 70.98 Operating ratio (per cent) 74.38 68.41 8.73 78.00 71.51 9.08 65.63 59.75 9.84 69.27 65.50 5.75 24,500,401 24,223,264 1 . 14 14,010,100 13,803,099 1.50 3,504,239 3,484,715 0. 56 6,986,062 6,935,450 0.73 TABLE III— OPERATING EXPENSES OF *SIXTY ELECTRIC RAILWAYS FOR MAY, 1919, COMPARED WITH MAY", 1918 LInited Stati s . . East ■ . South . . West . 1919 1918 1919 1918 1919 1918 1919 1918 Operating expenses '$8,405,046 '$6,290,277 -$5,443,493 »$3, 906,378 $1,065,650 $845,665 $1,895,903 $1,538,234 Way and structures 1,324,283 751,761 1,036,250 522,505 122,858 101,028 165,175 128,228 Equipment 996,373 780,511 642,551 525,013 125,906 83,059 227,916 172,511 Power 1,120,761 935,723 734,194 665,444 90,162 45,075 296,405 225,204 Conducting transportation 3,696,717 2,803,592 2,165,869 1,574,120 595,050 477,255 935,798 752,217 Traffic 29,833 35,063 16,960 22,516 3,194 3,783 9,679 8,764 General and miscellaneous 1,036,445 921,922 640,669 534,907 128,480 135,465 267,296 251,550 Transportation for investment — Cr 3117 1-27 6,366 24O Car-miles operated 28,510,907 28,216,829 15,679,622 15,460,800 4,844,433 4,806,341 7,986,852 7,949,688 * NOTE — This table includes the expenses of the forty-four companies shown in Table s I and II and in addition sixteen othe r ccmpanit s which are not included in Tables I and II, because of the fact that they do a power and light business and do not separate their railway taxes and fixed charges from the taxes and fixeei charges of their other business. ' Includes $207,000 undistributed depreciation. Includes $62,000 undistributed depreciation. ' Includes $207,000 undistributed depreciation. ■* Includes $62,000 undistributed depreciation. TABLE IV- -OPERATING EXPENSES IN CENTS PER CAR-MILE OF SIXTY COMPANIES APPEARING IN TABLE III, FOR MAY, COMPARED WITH MAY, 1918 . United States - Per Cent 1919 1918 Increase 1919 Operating expenses '29.48 *22.29 32.26 '34.72 Way and structures 4.64 2.66 74.44 6.61 Equipment 3.49 2.77 25.99 4.10 Power 3.93 3.32 18.37 4.68 Conducting transportation. . . 12.97 9.94 30.48 13.81 Traffic 0.10 0.12 16.67 0.11 General and miscellaneous.. . . 3.64 3.27 11.31 4 08 Transp. forinvestment — Cr Car-miles operated 28,510,907 28,216,829 1.04 15,679,622 ' Includes 0.71 cent per car-mi!e for undistributed depreciation. - Includes 1 . 33 cents per car-mile for undistributed depreciation. East Per Cent 1918 Increase ^25.27 37.40 3.38 3.40 4.30 10. 18 0.15 3.46 95.56 20.59 8.84 35.66 26. 67 17.92 1919 21.99 2.54 2.60 : .86 12.28 0.06 2.65 - South . Per Cent 1918 Increase 17.59 25.00 2. 10 1 .73 0.94 9.92 0.08 2.82 20.95 50.29 97.87 23.79 25.00 (i.OS 1919 23.74 2.07 2.85 3.71 11.72 0. 12 3,35 0.08 -West - 1918 19.35 1 .62 2. 17 2.83 9.46 0. 1 1 3.16 Per Cent Increase 22,69 27,78 31 .34 31 .09 23.89 9.09 6 01 15,460,800 1.41 4,844,433 4,806,341 0.79 7,986,852 7,949,688 0.47 Includes 0. 40 cent per-car mile for undistiiluted depreeiotien. ■* Includes 0.21 cent per-car mile for undistiiVutcd derr^ciatien. TABLE V— INCOME STATEMENT OF * 1 24 RAILWAY'S FOR MAY, 1919 United States East South West Railway operatinsr revenue $24,351,664 $17,765,877 $1,500,461 $5,085,326 Railway operating expenses 17,685,039 13,085,552 996,539 3,602,948 Net operating revenue 6,666,625 4,680,325 503,922 1,482,378 Net revenue: Auxiliary opera- tions 642,271 358,953 82,467 200,851 Taxes 1,358,926 951,445 126,757 280,724 Operating income 5,949,970 4,087,833 459,632 1,402,505 Non-operating income 708,545 368,895 175,399 164,251 Gross income 6,658,515 4,456,728 635,031 1,566,756 Deductionsfrom gross income.. . 4,960,540 3,374,242 369,906 1,216,392 Netincome 1,697,975 1,082,486 265,125 350,364 Operating ratio 72.62 73.65 66,42 70.85 Car-miles operated 62,201,377 43,713,616 4,387,876 14,099,885 * Includes the companies shown in Tables I to IV and others for which the 1918 figures are not available. TABLE VII— DETAILED STATEMENT OF OPERATING EXPENSES OF *150 RAILWAYS FOR MAY, 1919 United States East South West Operating expenses '$ 1 9,730,9 1 4 '$13,658, 1 35 $1,288,338 $4,784,441 Way and structures 2,743,462 2,039,808 150,388 553,266 Equipment 2,455,905 1,660,179 152,833 642,893 Power 2,882,600 2,027,200 118,423 736,977 Conducting transportation . 8,756,013 5,912,218 =698,128 2,145,667 Traffic 93,794 51,112 5,279 37,403 Genera! and miscellaneous., 2,542,488 1,701,081 163,287 678,120 Transportation for invest- ment—Cr 10407 dfl 9,880 Car-miles operated 71,104,119 46,129,165 5,768,673 19,206,281 * NOTE — This table includes the expenses of the 124 companies show n in Tables V and VI ancl in adelition twenty-six other companies which are not included in Tables V and VI because of the fact that they do a power and light business and do not separate their railway taxes and fixed charges from the taxe s anel fixeel charges of their other business. ' Includes $267,059 undistributed depreciation and freight department ex- penses. ^ Includes $267,059 undistributeel depreciation and freight department ex- penses. ' Includes some power. TABLE VI— INCOME STATEMENT OF TABLE V, IN CENTS PER CAR-MILE United States East South West Railway operating revenue 39.20 40.63 34.20 36 07 Railway operating expenses 28.50 29.93 22.71 25.55 Net operating revenue 10.70 10.70 11.49 10 52 New revenue ; Aeixiliary operations 1.03 0.82 1.88 I 42 Taxes 2.19 2.17 2.89 2.08 Operating income 9.54 9,35 10.47 9.95 Non-operating income 1.14 0.85 4.00 1.1 6> Grossincome 10.68 10.20 14.47 1 1.11. Deductionsfrom gross income 7.98 7.72 8.43 8 63 Netincome 2.70 2.48 6 04 2 48; Operating ratio 72.62 73,65 66.42 70.85 Car-miles operated 62,201,377 43.713,616 4,387,876 14,099,885 TABLE VIII— DETAILED STATEMENT OF THE OPERATING EXPENSES OF THE 1 50 COMPANIES APPEARING IN TABLE VII, SHOWING THE AMOUNTS IN CENTS PER CAR-MILE United States East South West Operating expenses '.'27 75 ■■,',29,61 $22.33 $24.91 Way and structures 3.86 4.42 2.61 2.88 Equipment 3.45 3.60 2.65 3.35 Power 4.05 4.39 2.05 3.84 Conducting transportation.. . . 12.31 12.82 M2.10 11.17 Traffic 0.13 0.11 0.09 0.19 General and miscellaneous .., , 3,58 3,69 2 83 3,53 Transportation forinvestment — Cr 0 .01 0 or. Car-miles operated 7 1 , 1 04, 1 1 9 46, 1 29, 1 65 5,768,673 19,206,281 ' Includes 0.38 cent per car-mile for undistT'iliuted depreciatic r. crd freight department expenses. ' Includes 0.58 cent per car-mile for undistributed depreciation and freight department expenses. ^ Includes some power. 500 Electric Railway Journal Vol. 54, No. 10 Indianapolis Merger Legal Court Upholds Proceedings in Connec- tion With Consolidation of Street Railway and Terminal Company Judge Ferdinand A. Geiger, serving as special judge in the Federal Court for the district of Indiana, on Aug. 29 handed down a decision approving vhe legality of the recent merger of the Indianapolis Traction & Terminal Com- pany and the leased lines of the In- dianapolis Street Railway. He also sustained the motion of the defendants in the suit brought by certain minority stockholders for an injunction against the new consolidated Indianapolis Street Railway and affiliated properties. The complainants in their bill con- tended that conditions which were re- quired by the Public Service Commis- sion of Indiana when it approved the merger agreement on June 28, as re- ported in the issue of the Electric Rail- way Journal for July 5, page 42, made fundamental changes in the merger contract and consequently were of such character that the directors of the two companies were without authority to accept what amounted to a new con- tract. It was also contended that the proceedings at the meeting of the stock- holders of the Indianapolis Street Rail- way were without la>vful effect, and that the Indianapolis Traction & Ter- minal Company had violated certain conditions of its lease of the street rail- way property. 1899 Law Sufficient Judge Geiger decided that the law passed by the Indiana Legislature oi 1899 authorizes domestic street rail- ways to consolidate, and is not restrict- ed to consolidations in which a com- pany operating to the State line and there connecting with a line of another state is a party. He referred to the decision of the Indiana Supreme Court in the case of Norton vs. Union Trac- tion Company of Indiana, wherein a merger was upheld, and gave great weight to that decision. The judge found that the Norton case forecloses the contention of the com- plainant in the present suit that a unanimous vote of the stockholders, or a greater preponderance than was shown at the stockholders' meeting of the Indianapolis Street Railway is nec- essary to authorize a consolidation. In the Norton case it was decided that a vote of the holders of a majority of the stock was sufficient. The court found that there was an unusually large attendance of stock- holders, either in person or represented by proxy, at the meeting of the Indi- anapolis Street Railway when the merger was approved, and Judge Gei- ger's view was that the stockholders considered the wisdom of the consoli- dation and reached a conclusion, and as there were no facts presented "to en- able the court to point out when or wherein the power of the majority stockholders to further or adopt the merger plan either broke down or was oppressive or unconscionably exer- cised," a court would be slow to upset the judgment of the stockholders as represented by the present merger. Financial News Notes Sale Under Foreclosure Postponed. — United States Judge Frank H. Rudkin at Spokane, Wash., has entered an order postponing the sale of the Spokane & Inland Empire Railroad under foreclos- ure, from Oct. 1 to Nov. 1. Receiver for Alabama Company. — The North Alabam.a Traction Company, Albany, Ala., operating in Albany and Decatur, has been adjudged bankrupt on petition of New York bondholders. A. A. Hardage has been made receiver. Would Abandon Short Line. — The Mahoning & Shenango Railway & Light Company, Youngstown, Ohio, has ap- plied to the Public Utilities Commis- sion of Pennsylvania for authority to abandon operation of its electric lines between Knowles and Mineral Ridge, about 22 miles. Funds for Memphis Interest Pay- ment. — The receivers of Memphis (Tenn.) Street Railway on Sept. 2 de- posited with Central Union Trust Com- pany, New York, N. Y., funds for the payment of the July 1, 1919, interest on the consolidated 5 per cent mortgage bonds of that company together with two months interest thereon at 5 per cent. Aid for Kansas City Railways. — A special dispatch from Kansas City, Mo., says that a loan of $1,000,000 by Ar- mour interests saved the Kansas City (Mo.) Railways from receivership on Sept. 1, the time limit for the payment of interest defaulted on July 1. The r-ecent increase of fares to 8 cents is ex- pected to provide enough revenue to meet the interest charges in future. Mr. Garrison Made Permanent Re- ceiver.— Judge Julius M. Mayer in the Federal District Court has made per- manent the appointment of Receiver Lindley M. Garrison of the Brooklyn Rapid Transit Company as receiver of the surface lines in Brooklyn. At the same time the court also ordered the consolidation of the foreclosure and general creditors' suits against the Brooklyn Rapid Transit Company and subsidiaries. Receiver for Small Pennsylvania Company.— The Title Trust & Guaran- tee Company, Johnstown, Pa., has been made receiver for the Penn Central Railway, Johnstown, formerly the South Fork & Portage Company, with a hearing to be held soon on the ques- tion whether the order shall be made permanent. The capital stock of the railway is $250,000. There was a re- organization about a year ago. O. P. Thomas then became head of the con- cern. Colorado Springs Bondholders Act. — The Colorado Springs & Cripple Creek District Railway, Colorado Springs, Col., defaulted on the interest due on Jan. 1, 1919, on the first mortgage 5 per cent bonds dated Jan. 1, 1900. The company also defaulted on the July 1, 1919, interest, and the sinking fund in- stallments due Jan. 1 and July 1, 1919. In consequence the Central Union Trust Company, New York, N. Y., trustee, at the request of $1,183,000 out of a total of $1,225,000 of the bonds, has declared the principal of all the bonds issued and outstanding to be imme- diately due and payable in accordance with the terms of the indenture under which the bonds are secured. George M. Taylor has been appointed receiver. Seeks to Capitalize Expenditures. — The Georgia Railway & Power Com- pany and the Georgia Railway & Electric Company, Atlanta, Ga., have petitioned the Georgia Railroad Commission for pei-mission to issue more than $500,000 of bonds. According to the petition $489,000 is wanted by the power com- pany to reimburse it for expenditures made since April 1, 1914, for construc- tion work, such as power houses, dams, buildings needed for the hydroelectric plant in the process of development, and for other property acquired. The $105,- 000 asked for by the electric company is, the petition states, 75 per cent of expenditures for additions and exten- sion to the plant made since Jan. 1 of this year. Interurban Offers Notes. — Halsey, Stuart & Company and the National City Company, New York, N. Y., are offering for subscription $1,100,000 of 6 per cent gold notes of the Chicago, North Shore & Milwaukee Railroad, Highwood, 111., divided as follows: $600,000 series A, due on Aug. 1, 1920, offered at 99.29 and interest, yielding 6.75 per cent, and $500,000 of 6 per cent equipment gold notes, due $50,000 on Aug. 1, 1920, and $25,000 each year in February and August thereafter to Aug. 1, 1929, at subscription prices varying according to maturity to yield between 6.50 per cent and 6.75 per cent. The series A notes are secured by de- posit with the trustees of $857,200 par value of the company's first mortgage 5 per cent gold bonds, which are pledged at approximately 70 per cent. The equipment gold notes are secured by a first lien on fifteen steel interur- ban motor cars, fifteen steel interurban control trailer passenger cars, twelve parcel dispatch motor cars and ten one- man safety cars. The total cost of the equipment is at the rate of $100 of equipment for each $70 of notes is- sued. The statement of earnings for the year ended June 30, 1919, shows a net income available for interest charges, depreciation, etc., of $906,872. The annual interest charge on the se- curities now offered is $316,450. September 6, 1919 Electric Railway Journal 501 Traffic and Transportation Zones and Higher Fares Commissioner Nixon Raises Rates on New York & North Shore Road — Shutdown Had Been Threatened Public Service Commissioner Lewis Nixon, of the First District of New York, on Aug. 28 took action to pre- serve the operation of the New YorK North Shore Traction Company, Ros- lyn, N. Y., to the traveling public, by issuing an order, on the recommenda- tion of Deputy Commissioner Alfred M. Barrett, permitting the road to estab- lish a zone system of fares from Flush- ing to Whitestone, and from Flushing to Little Neck in excess of the exist- ing 5-cent fare. Evidence had been pre- sented to the commission that the com- pany's cars might stop running on Aug. 29 if the officials of the road were not assured of some means of additional revenue. Had Threatened Shutdown The stockholders of the company re- cently announced that they could no longer stand the losses entailed by oper- ation of the road at a 5-cent fare. The new fare system which has been worked out provides for four zones, the initial fare in each of which is 6 cents. The fare from Flushing to Little Neck will be 10 cents. The fare in any sin- gle zone vnW be 6 cents, save in zone 4, where it will be 7 cents. For a pas- senger making a continuous trip from zone 1 to and into zone 3, 2 cents will be added to the original 6-cent fare in each zone to bring the total up to 10 cents. Commissioner Nixon's act in raising the fare is the first occasion on which the Public Service Commission of the First District has increased a rate of fare. It is contended that the commis- sion has the power to raise as well as to lower fares under the recent Court of Appeals decision in the BulTalo case. The courts will probably be called upon to settle the North Shore rate ques- tion as a test case. City Fights Increases Acting under directions from the Mayor, Corporation Counsel William P. Burr, on Sept. 2, served notice on George A. Stanley, president of the railway, forbidding him to put the high- er fares into effect. At the same time the Corporation Counsel's office re- quested a rehearing of the case. Com- missioner Nixon has said that the au- thorization was an emergency measure, and that if the city requested a re- hearing the case would be reopened. The commissioner set the rehearing for Friday evening, Sept. 5, in the Flushing Tovra Hall. He announced that he would be glad to answer the questions of Mayor Hylan and other city officials who cared to attend. Mayor Hylan had already sent a let- ter to Public Service Commissioner Nixon declaring that his action in al- lowing the establishment of the zone system and the increase in fares was illegal, and contrary to the decision of the Court of Appeals. The Mayor de- manded that the commissioner rescind his action. During the hearing on the company's petition, at which were rep- resentatives of the city of New York and of the communities interested in the case, no one entered an objection to the fare increase. The Mayor on Sept. 3 instructed the Corporation Counsel to take steps to secure from the courts a writ of pro- hibition restraining the company from collecting the righer rates. The Mayor has since issued an appeal to the people of New York calling for the formation of a Citizens' Vigilance Committee of 1000 to oppose any at- tempt to increase fai'es on the part of the New York rapid transit lines. The Mayor's plea calls for a canvass of all candidates for the State Legislature to ascertain their views on the fare ques- tion. At the organization meeting of the vigilance committee the Mayor was chosen honorary chairman. Service at Cost May Be Tried in Denver Pursuant to the agreement of the city of Denver, Col., allowing a 6-cent fare to be charged by the Denver Tramway until an election is held to decide upon a permanent plan, two plans are to be submitted at the elec- tion to be held early in November. 1. The "elastic" 6-cent fare spon- sored by the company would continue the present 6-cent fare until the aver- age wage in five other cities, viz.: St. Louis, Kansas City, St. Paul, Omaha, and Milwaukee, had fallen below the present wage of 48 cents an hour for trainmen. 2. The service-at-cost plan, urged by the citizens' committee of fifty-five, would cause the fare to fluctuate based on earnings of the tramway. Under the elastic fare plan the con- trol of wages would be in the hands of a regulatory board of three members, one appointed by the Mayor, one by the City Council, and one by the tramway company. The employees are still urging their demands for a wage scale of 70 cents an hour. The company has filed petitions, bearing the signatures of thousands of Denver citizens, asking for the submis- sion of the two plans at the November elections. Zone Plan Recommended Engineer of California Commission Re- ports Favorably on System Pro- posed for San Diego Lines Establishment of a two-zone system with a 5-cent fare for a ride between any two points in the same zone and a 10-cent fare for one between points in the different zones, is recommended for San Diego, Cal., in the report re- cently submitted to the State Railroad Commission by Richard Sachse, the commission's chief engineer after a thorough investigation. Mr. Sachse's report was prepared following hearings before the commis- sion on April 29 and June 17 into the application of San Diego Electric Kail- way for an increase in fare. Hearings are to be resumed early in September. The report advocates the fare system, suggested by the company, referred to in the issue of the Electric Railway Journal for May 17, 1919, page 983. Sees Need of Increase Mr. Sachse states in his report that some plan of increased fares is neces- sary if the company is to continue oper- ation. The proposed zone plan con- templates a central zone about 1 mile in radius embracing the business and a great part of the industrial sections of the city. The 5-cent fare for a ride in any one zone would carry with it free trans- fer privileges to any point in the same zone, thus permitting a ride of about 3i miles on a nickel fare. The 10-cent fare for a ride in the two zones would also carry the transfer privilege. The proposed plan makes provision for regular patrons of the company. Those riding twice a day would be en- titled to the following commutation rates : Round-trip tickets in blocks of four tickets : Good betwen any point, in inner and outer zones, with transfer privilege to inner and outer zones. Good for bearer ; sold at 30 cents per block of four tickets, equivalent to 7i cents per ride. Ticket book at rate of $4, equivalent to 6i cents per ride. Good for bearer of individual ticket and good for two rides or one round trip each day of the calender month ; good for the date printed on the ticket ; limited to current month. Transfer privileges in inner and outer zones. Reasons for Zone Plan Mr. Sachse gives a number of rea- sons for urging the establishment of a zone system, among them the follow- ing: In a city of such large area as San Diego (79 square miles) it is a practical impossi- bility to adhere to the "one city, one fare" plan. The zone limits proposed for San Die.go will give the benefit of the 5-cent fare to the bulk of the population, including the working population. A zone system will tend to build up the territory within the 5-cent zone, a result that is of benefit to the city as a whole and is more to be desired than the continu- ing of indiscriminate real e.state develop- ment within a very large one-fare radius. The adoption of a zone system is much more likely to secure to the company the necessary additional revenue than a flat increase. This is true because a large amount of short-haul business would be lost to the company under a flat increase, while under the zone system this most profitable part of the business will remain and will continue to increase 502 Electric Railway Journal Vol. 54, No. 10 St. Louis Presents Its Case Company Wants Further Fare Advance Until Question of Valuation Has Been Finally Settled The Public Service Commission of Missouri has completed hearings on the petition of the United Railways, St. Louis, to increase the fares from 6 cents to 7^ cents, when paid in tokens and 10 cents when paid in cash, to abolish the double transfer system and to establish zones on its St. Louis County lines. The United Railways side was presented by Col. Albert T. Perkins, general manager of the com- pany for the receiver, under cross- examination by members of the com- mission, attorneys for the city and for the Citizens' Referendum League. Rolla Wells, receiver of the company, had asked the increase immediately after the commission granted a 45 per cent wage increase to all employees. This wage advance, the receiver esti- mated, would cost $2,740,000 annually. Since the company was losing money on the present 6-cent rate sufficient in- crease was asked to take care of the additional wage burden. Mr. Wells claimed that the estab- lishment of the metal token system would simplify the duties of conductors and make returns to the receiver more sure. Under the metal token system the fares for children would be 3 cents by token and 5 cents cash. The double transfer system was attacked on the grounds that it is much abused and is a source of loss. Under these revisions it was estimated that the increase in revenue would approximate $2,075,000 in six months. Asked how the receipts under the proposed increase would be used, out- side of taking care of the increased wages of the employees, Colonel Per- kins said that if sufficient funds could be obtained the company would make extensive improvements, give the peo- ple better cars, more rapid transporta- tion and all necessary extensions. He said that extensive replacements must be made if the public is to have ef- ficient service. The question was then asked whether it was true that the deficit of $380,000 for the year ended May 31, 1919, was artificially created, by putting 10 per cent of the gross revenue aside on the books as a reserve and then not holding it in a separate fund, but spending it for other purposes. Colonel Perkins said that if the company set aside 10 per cent of the gross revenue for de- preciation that did not necessarily mean there was that amount on hand to expend for the purpose of keeping up the property. The company might have been forced to take some money that was intended for the purpose of replacement and improvement and use it in some other manner. He said that the company had no voice in the mat- ter, for the Public Service Commission of Missouri and the Interstate Com- merce Commission arranged a certain form which the company must follow in making its reports. The Interstate Commerce Commission arranged the form and when the Public Service Com- mission came into being it adopted the same form. Colonel Perkins on Mr. Mitten A matter brought up was the state- ment by Mr. Mitten, president of the Philadelphia (Pa.) Rapid Transit Com- pany, to the eff'ect that he wanted more riders at 5 cents, not fewer riders at higher fares. When asked about this, Colonel Perkins said that he was not in possession of the facts and did not care to express an opinion on them. Conditions might be different in Phila- delphia, he said. In his testimony Colonel Perkins touched on the condition of the county lines, saying that they would have had to go out of business long ago if they had been depending on their own rev- enues. It is proposed to establish fare zones on these lines, under the opera- tion of which it will cost 45 cents to make a round-trip between St. Louis and the more distant suburbs. It now costs 22 cents. One-Man Cars Suggested by City Engineer Maj. C. E. Smith, consulting engi- neer for the city, presented the case for the city against the railway. Major On Monday morning, Aug. 18, the Racine division of the Milwaukee Elec- tric Railway & Light Company started an experiment in selling transportation, particularly in the off-peak hours, through the use of a weekly pass. The cost of the pass is $1, which is only 28 cents more than a passenger would have to pay for twelve trips a week at 6 cents a trip. Therefore the person who pays this difference secures all riding in excess of twelve rides a week at a cost which decreases directly as the number of rides increase. By means of this pass it is hoped that people who are now using the cars only for com- pulsory long riding during the rush hours will be tempted to ride the shorter distances in off-peak hours when riding from home to the shopping districts, to theaters, to make personal visits, etc. A pass-holder also is, not inconvenienced by the need for secur- ing change, which is enhanced on a railway that is being operated at an odd fare, nor does the pass-holder have to ask for a transfer. The passes are of cardboard and of a different color for each weekly period from Monday morning till the follow- ing Sunday midnight. The passes are on Smith declared that he would stake his reputation as an engineer that he could operate the United Railways success- fully on the present 6-cent fare. He outlined his plan for operating the rail- way as follows: 1. Issue receiver's certificates and pur- chase $1,000,000 worth of one-man street cats of about thirty passenger capacity to take the place of the large, heavy cars now in operation on some of the lines. There should be at least 200 one-man cars operated, thus saving in wages, deprecia- tion and power costs. 2. Make the county lines pay their own way and, if they failed, issue receiver's certificates to make up the difference. 3. Inaugurate the skip-stop system which shovild have been retained in operation as during the war-time period. 4. Reroute some of the cars, inaugurat- ing changes in that regard to expedite their movement by cutting down their winding about town. 5. Consolidate trackage where possible. 6. Change the form of keeping the ac- counts, which now show a deficit where none really exists. After Major Smith had been Sub- jected to a rigorous cross-examination by attorneys for the company and the attorney for the Citizens' Refer- endum League had made an argu- ment in which he said the people would bitterly resent the increased fare, the commission adjourned and the members departed for Jefferson City. City Counselor Dawes was given two days in which to prepare a brief for the city. There will be no oral arguments at the final hearing in Jefferson City. The railway officials are anxious for an early decision because the wage in- crease, estimated at $235,000 a month, went into effect on Sept. 1, and back wages, nmounting to $684,000 must be pa d by March 1, 1920. sale at the central office of the com- pany, on all the cars and through va- rious stores. All sellers of passes, whether conductors or merchants, are charged 98 cents for each weekly ticket. This gives a profit-sharing feature for the conductor. So far as the merchants are concerned, they are at liberty to sell the passes at as low a price as they see fit, to encourage personal patronage and traffic. A holder in boarding simply shows his pass and goes on into the body of the car. No attempt is made to count the number of rides taken on passes, although this could be done for the traffic checks, auditing, etc. The con- ductor merely observes the color of the ticket and the date of the week. Every- thing possible has been done to make the use of the pass frictionless for both the holder and platform man. In introducing the pass the company published on Aug. 16 the accompanying newspaper advertisement. In addition it secured editorial notice in the local press. Car cards were also used to draw attention to the sale of the passes. The first week the total number of passes sold was 798, of which 757 were Unlimited Rides for Racinians An Experiment in Fares that Is Something New and Promising — Plan May Be Extended September 6, 1919 Electric Railway Journal 503 sold the first day. The number sold for the week beginning Aug. 25 was 962 of which 937 were sold on Monday. The week beginning Labor Day, Mon- day, Sept. 1, was of course abnormal, but nevertheless 644 passes were sold on the holiday and 188 the following day making a total of 832. It has been observed that the largest purchasers are those who get on the car about 8 a.m., as this class is much more likely to avail itself of lunch-hour riding than men who go to work earlier at the fac- SOMETHING NEW IN STREET CAR FARES One Dollar Buys a Weekly Pass Which You or Any Member of Your Family Can Use, and Which Is Good for Any Number of Rides Between Monday A. M. and Sunday Midnight. Beginning next Momiay morning, Aug. 18th, «e are Roing to try out iin experiment, lierc in Racine, whjch some o( OS think may cofitain a solution ol the eountry-wltic problem nt making street car lares support the kind ol street car service the public wants. We are goine to sell, at $1 each, weekly passes which you or any member ol ypur lamily can use, and w hich w ill be good lor anv number nl rides between Monday morning and the lollowins Sunday midnight You. can buy these passes at the Main street sta- tion, or from any conductor, on any car, at any time. The passes will be good on city cars within the single-fare limits, and during the week of sale. Each week the passess will be of a different color, and will bear the date ol the week Thcie will be no punchinE or other cancc.sation No identilicatipn ol pass bearers will be necessary. Just show the pass to the conductor Pass holders won't need any translers— |ust show the pass to the nest conductor. When Sunday midnight comes, all passes lor the week past evpite. whether they have been used much or liille Regular or frequent car riders can «ave time and money by using weekly passes. Most of such riders now use more every week than a dollar's worth of tickets pr cash fares at present rates. With weekly parses they and their families will ride much oftener, especially during the non-rush hours, shopping and visiting, because the extra rides won't cost any- thing. We hope to get two results: First, to make the cars earn more mone> through increased riding Second, to make them more uselul to the community, .We believe that il we get either rcsuT* wt shall get both. One thing is certain— the whole country is going to watch this Racine experiment. If it makes good, it win ^ve Racine an advertisement worth hundreds of thousands of dollars, all over the United States. We hope to have your hearty co-operation in mak- ing the new plan a winner. The Milwaukee Electric Railway & Light Co. One of the Racine Advertisements tories and who may have only thirty minutes for the luncheon period. Steps are being taken to show this class of riders how they or their families can benefit from the use of the ticket. In making its announcement the com- pany said that it was going to try out an experiment which might con- tain the solution of the country-wide problem of making fares support the kind of service the public wants. If it made good it would give Racine an advertisement all over the United States worth hundreds of thousands of dollars. Study Cincinnati Plan Street Railway Director W. C. Cul- kins has been requested by the city authorities of Vancouver, B. C, to send them a copy of the Cincinnati Street Railway ordinance. Employees' Service Code One Prepared by W. H. Boyce Gives Valuable Pointers for Trainmen Codes are popular these days. Every organization has one, from the po- litical party to the local chapter of the Red Cross. Especially are they favored by followers of the road. The carmen of the Beaver Valley Traction Company, New Brighton, Pa., have a code of their very own. Theirs was written by W. H. Boyce, superintendent of the company, and if they live up to it, travel on the Beaver Valley lines must be pleasant indeed. Anyway, they read it, and probably stayed home from the movies to do so. Codes are very important, but, like most important thmgs, are usually dull. Mr. Boyce's code is the exception. Here are some extracts to prove it: The greatest service existing in your work is the service the passenger gives you. Funny, isn't it? True though. I said he paid your wages. That's mighty important to you — mine are to me anyway. So, every service you can give the passenger will not be any more than he is entitled to — re- member that. But few of the passengers consider you except in tiie way you serve them in their transportation needs. Do your duty by every one and wlien the day comes to a close you can in content spend the evening with the folls, drive, Pittsburgh base, cents per lb Railroad spikes, screw, Pittsburgh base, cents per lb .... Tie plates (flat type), certs per lb Tie plates (brace type), cents per lb , . . Tie rods, Pittsburgh base, cents per lb. Fish plates, cents per lb Angle plates, cents per lb. .Angle bars, cents per lb. . ' Rail bolts and nuts, Pittsburgh base, cents per lb Steel bars, Pittsburgh, cents per lb ... . Sheet iron, black (24 gage), Pittsburgh, cents per lb Sheet iron, galvanized (24 gage), Pitts- burgh, Cunts per lb Galvanized barbed wire, Pittsburgh cep t(. oer lb ELECTRIC RAILWAY Aug. 12 30 33 30.75 $49 00 to $51 00 $47 00 to $49 00 $45 00 to $47 00 3 3 3.25 3 35 8 2.75 2.75 7 3 3.90 3.90 4 35 2 35 4 20 5 25 A in Sept. 2 30 33 30 75 49 . 00 to 51 . 00 47 00 to 49 00 45 00 to 47. 00 3 3 3.25 3 50 7.50 to 9 00 2.75 2 75 7 3 3.90 3.90 4.50 2.35 4,20 5.25 4.10 OLD METAL PRICES— NEW YORK Aug. 12 Sept. 2 Heavy copper, cents per lb 18.00 to 19.00 I8.50to 19.00 Light copper, cents per lb 15.00 to 15.50 1 5. 00 to 15.50 Heavy brass, cents per lb 10.00 to 10.50 I0.50to 11.00 Zinc, cents per lb 5.00 to 5.25 4. 75 to 5.00 Yellow brass, cents per lb 9.00 to 9.50 9.00 to 9.25 Lead, heavy, cents per lb 5 . 1 2Ho 5.25 5 . 00 to 5.10 Steel car axles, Chicago, per net ton, . . $29.00 to ^30.00 S26 . 00 to $27 . 00 Old carwheels, Chicago, per gross ton. . $26.00 to?27.00 $25 . 50 to $27 . 00 Steel rails (scrap), Chicago, per gross ton $25.00 to J26.00 *22 . 75 to $23 . 75 Steel rails (relaying), Chicago, gross ton. $29.00 to $30.00 $26 . 50 to $27 . 50 Machine shop turnings, Chicago, net ton $10 00 to 811.00 $9.25to S9.75 MATERIAL PRICES Aug. 1 2 Sept. 2 Galvanized wire, ordinary, Pittsburgh, cents per lb... 3.70 to 3.80 3 7n Car window glass (single strength), first three l>rackets, A quality. New Y'ork, discount t ... _ 8U% 77 "„ Car window glass (single strength, first three brackets, B quality) , New- York, discount 80% 77% Car window glass (double strength, all sizes A A quality), New York discount 81% 79% Waste, wool (according to grade), cents per lb 14 to 17 16 to 19 Waste, cotton (1001b. bale), cents pel n . 8to12J lOtoMJ Asphalt, hot ( 1 50 tons minimum) , ner ton d ■li\'ered Asphalt, cold ( I 50 tons minimum, pkgs. weighed in, F. O. B. plant, Maurer, N. ,1), per ton ■ • Asphalt filler, per ton $30.00 $30,00 Cement (carload lots), New York, per bbl .. . $2.90- $2.90 Cement (carload lots), Chicago, per hbl. $3.05 $3.05 Cement (carload lots), Seattle, per bbl. . $3.13 $3.13 Linseed oil (raw, 5 bbl. lots), New York, per gal $2.25 $2.25 I.in.seed oil (boiled, 5 hbl. lots), New York, per gal $2.27 $2.27 White lead (100 lb. keg), New York, cents per lb 1 ^ Turpentine (bbl. lots), New York, .cents per gal 1-80 $1.80 t These prices are f. o. b. works, with boxing eharees extra. 508 Electric Railway Journal Vol. 54, No. 10 its franchise granted several years ago for its proposed line between Jackson- ville and St. Augustine, about 35 miles. Grading has been completed on 7 miles of line and three miles of tracks have been laid. T. R. Osmond, St. Augus- tine, general manager. (Feb. 17, '17.) Track and Roadway Davenport, Springfield & Southern Electric Railway, Springfield, 111. — An application for a certificate of conven- ience and necessity for the construction of an electric railway has been filed by the Davenport, Springfield & South- ern Electric Railway with the Public Service Commission of Illinois. The main line of the road, which will be constructed first, will extend from Rock Island to Moline, Galesburg, Lewiston, Havana, Petersburg and Springfield, thence to Hillsboro, Greenville, Car- lyle, Nashville, Clancyville, Carters- ville, Vienna and Metropolis. The pro- posed road is intended for both pas- sengers and freight. Among those interested are Robert B. Barker, Phillip J. Delaney and Harry Leek, all of Chi- cago. (Aug. 2, '19.) Southern Traction Company of Illi- nois, East St. Louis, 111. — According to an announcement made by H. D. Mep- ham, new owner of the Southern Trac- tion Company of Illinois, electric rail- way connection between East St. Louis and Belleville will be made within the next sixty days. Tracks will be laid to mines in the Belleville disti-ict. Bridges are being rebuilt and the roadbed placed in good condition. Plans are under consideration to extend the road to Duquoin. About $1,500,000 will be spent for new rolling stock. Detroit, (Mich.) United Railway. — The following extensions will be made by the Detroit United Railway in the near future: The Twelfth Street ex- tension; the St. Jean extension; an extension on Warren Street from Ber- wick to St. Jean and an extension of the Stephenson line to Royal Oak. Power Houses, Shops and Buildings Houghton County Traction Company, Houghton, Mich. — A new garage is being built by the Houghton County Traction Company for the accommoda- tion of its electric buses. Brooklyn (N. Y.) Rapid Transit Company. — Plans are being made by the Brooklyn Rapid Transit Company for the construction of a power station at Kent Avenue and South Sixth Street. Third Avenue Railway, New York, N. Y. — Plans have been prepared by the Third Avenue Railway for improve- ment and alternations in its one-story shop at 251 East 133d Street, to facili- tate operation. The cost is estimated at $6,000. Oklahoma, (Okla.) Railway. — Plans have been completed by the Oklahoma Railway for the reconstruction of its terminal station at Oklahoma City, to cost approximately $250,000. North Coast Power Company, Van- couver, Wash. — A contract has recently been awarded by the North Coast Power Company to N. A. Strand, Kelso, for the construction of a new brick substation near its office building. The company has also begun the recon- struction of its power line from Kelso to Kalama, increasing the carrying ca- pacity to 66,000 volts. Wisconsin Traction, Light, Heat & Power Company, Appleton, Wis. — Plans are being made by the Wisconsin Traction, Light, Heat & Power Company for the extension of its transmission lines to Dale, Medina and Sherwood. Trade Notes American Conduit & Manufactur- ing Company, New Kensington, Pa., has increased its capital from $540,000 to $600,000. Chicago (111.) Pneumatic Tool Com- pany announces the removal of its Cin- cinnati office from the Mercantile Library Building to the Walsh Build- ing, Pearl and Vine Streets, where a service station with a complete stock and repair parts will be maintained. Abrasive Company, Philadelphia, Pa., announces that it has discontinued the use of the name Boro-Carbone as ap- plying to its aluminous abrasive. Here- after this product will be marketed under its new registered trademark, "Borolon." The company's silicon-car- bide abrasive will continue to be trade- marked "Electrolon." Edward N. Lake has organized the Lake Engineering Company which will be located at 139 North Clark Street, Chicago, 111. He was formerly mana- ger of the Krehbiel Company and also a resident engineer for Stone & Web- ster. The new company, of which he will be president, will engage in gen- eral engineering work. Van Dorn & Dtitton Company, Cleve- land, Ohio, recently exhibited a Gleason spiral double gear cutting machine in actual operation of cutting gears from forged steel blanks on the corner of East Ninth Street and Euclid Avenue, Cleveland, Ohio, in a space belonging to one of Cleveland's foremost banks. Gears which were produced on the cor- ners were being made for actual orders. This is only one of the methods used to educate the public. The American Steam Conveyor Cor- poration, Chicago, 111., announces the appointment of Morton McI. Dukehart & Company as its representative in Baltimore and the surrounding terri- tory, including all of Maryland and the District of Columbia and a few counties in Pennsylvania, Delaware, West Vir- ginia and Virginia. This concern con- sists of Mr. Dukehart and E. S. Denise, both power-plant and sales engineers. American Malleable Castings Asso- ciation, 1900 Euclid Avenue, Cleveland, Ohio, maintain a research department for investigations and experiments and for the testing of an analysis of the daily output of each member of the association. Impartial tests are made and the results, together with direc- tions for improvement, are forwarded to respective members. When a mem- ber's products have daily met the re- quirements of the prescribed standard for three months, a certificate of qual- ity is issued that member, who may designate his output as "Certified Mal- leable Castings." E. L. Sullivan has been appointed to represent the Green Engineering Com- pany in the Pittsburgh district includ- ing western Pennsylvania, eastern Ohio and western West Virginia. Mr. Sul- livan has been a special representative for the McDonough Regulator Company for the past ten years in Chicago and in Pittsburgh, and has devoted all of his time to special investigations per- taining to the securing of more effi- cient boiler and furnace operation. Mr. Sullivan will maintain present offices at 2545 Oliver Building, Pittsburgh, where he will serve in all matters pertaining to the sale of Green chain grate sto- kers, sealflex arches, steam-jet ash con- veyors, cast-iron ash tanks, and re- placements for the same. American Car & Foundry Company, New York, N. Y., announces that James M. Buick, formerly vice-presi- dent and general manager, has assumed the direction of the sales division of the company and will be known as vice- president in charge of sales. The pro- duction division will be directed by William C. Dickerman, who will be des- ignated at vice-president in charge of operations. He will be assisted by Frederick A. Stevenson, assistant vice- president, who will be head of the man- ufacturing section, and have charge of production in the car plants, rolling mills and foundries. There will also come under Mr. Dickerman's super- vision the engineering, improvement and research, patent and industrial re- lations sections. The headquarters of both divisions will be at the general offices of the company, 165 Broadway, New York. New Advertising Literature Walter A. Zelnicker Supply Com- pany, St. Louis, Mo.: Bulletin on rails, switches, frogs, ties, etc. Arrow Electric Company, Hartford, Conn.: New 1919 catalog with prices entitled "Wiring Specialties." W. Roy McCanne, 1050 University Avenue, Rochester, N. Y. : Illustrated folder on reinforced concrete pole bases. Economy Electric Devices Company, Chicago, 111.: Bulletin No. 60, giving a description of the Economy railway meters, including the type with inspec- tion dials to indicate when car equip- ment is to be inspected. Facts are also given on proper acceleration and meth- ods of energy saving. Electric Railway Journal Consolidation of Street Railway Journal and Electric Railway Review Volume M Ncw York, Saturday, September 13, 1919 The Eight-Hour Day on the Electric Railway , ^ WE HAVE referred several times in these columns to the growing demand for an eight-hour day for electric railway trainmen, and now that this principle has been conceded with certain restrictions in the new Chicago agreements, it will be interesting to see how the arrangement works out. The contracts agreed upon by the surface and elevated companies in Chicago, fol- lowing the recent strike, were alike except in a few minor particulars. The former provides that the work day for all employees "shall be eight hours with time- and-a-half for all time worked over eight hours — not less than 60 per cent of the runs to be 'straight' time — the balance to be completed within fourteen consecutive hours." New time tables on an eight-hour basis are to be prepared as rapidly as possible, all to be effective before Jan. 1, 1920. While these changes are being made, time-and-a-half is to be paid for all time over the tim-i called for by the respective runs on present schedules, and any runs extending over eleven hours are to re- ceive time-and-a-half for such excess. Officials in the Amalgamated Association refer to this settlement as "the first eight-hour day, with time-and-a- half for overtime, ever received by any body of car men." The Boston Elevated eight-hour day, as we understand it, calls for no "straight" runs and the men get a bonus only when the "spread" exceeds eleven ^ hours. It has frequently been insisted that the straight eight-hour day is impracticable in street railway sched- ules, and after a hard battle in Chicago with members of the Public Utilities Commission digging for facts, this was found to be true. The result was a compromise calling for only 60 per cent straight runs, the remain- ing 40 per cent being reserved to cover peak load demands. Union officials themselves must have realized at last that they have been asking the impossible. This is in- dicated in the compromise Chicago agreement. They have evidently discovered also that their men will not be satisfied with an eight-hour limit to their working day, and that the choice runs are those which pay ten or more hours per day. A recent issue of the Union Leader, official organ of the Association in Chicago, has this to say on the subject: Perhaps we may yet be forced to admit the claim of the companies that many of our men did not want the eight- hour day. We are reluctant to believe this. * * * If we have men who want the long workday, they are surely blind to their own interests and the interests of their fellows * * *. With the shorter workday established it will be much easier in the future to advance wages and secure other improved conditions. The test will come when the new eight-hour tables are put in force. With the long workday now prevailing, the total daily wage will be higher than with the eight-hour time table. Then will come the test as to whether our men wanted the eight-hour day; as to whether we are sincere in our adherence to trade union principles. Apropos of the new Chicago wage scale, it is inter- esting to note a recent advertisement of the Carpenters District Council in Chicago. The striking trainmen had been pointing to the higher hourly wages of other union workers, "The carpenters are getting 922 cents," they said. These same carpenters who were striking for $1 an hour, now complain that "the carpenter can get work only part of the year. His average annual wages do not exceed $1,200." Industrial Conference Should Include the Electric Railway Industry PRESIDENT WILSON has called a conference for Oct. 6 for the purpose of obtaining the "combined judgment of representative employers, representative employees and representatives of the general public" on what may constitute "a common ground for agree- ment and action with regard to the future conduct of industry." To this end he has invited the United States Chamber of Commerce to select fi-ve persons to attend the conference, the National Industrial Confer- ence Board to select five, the American Federation of Labor fifteen, the Investment Bankers' Association of America two, and the National Grange and National Farmers' Union three, while he will select fifteen rep- representatives of the public. This conference will no doubt atford a splendid opportunity for threshing out all of the differences and presenting all the interests of the four parties concerned — labor, capital, public and government. But this conference cannot be complete in its scope unless one of the largest industries of the country, both in number of employees and capital invested, and made up of a large number of individual plants locally gov- erned and operated, is included. We refer to the elec- tric railway industry. Differing from the steam roads, which are subject to a single administrator, the electric railways are like the industrials in their segregation and diversified control. They are also inextricably in- terwoven with the life and prosperity of the individual industrial plants and are vital to the social and in- dustrial welfare of the nation as a whole. So it would seem that if the conference is really "to canvass every relevant feature of the present in- dustrial situation," this great industry should have a voice. This might be had as a direct nomination from the American Electric Railway Association, or through the Public Utilities Committee of the United States Chamber of Commerce, which has already been invited to nominate five persons. This leads us to suggest that a railway man, such as Philip H. Gadsden, for instance, who is a director of the Chamber of Commerce and who is well qualified through his prominent experience on the Electric Railway War Board and the Federal 510 Electric R a i l w a y J o u r n a l Vol. 54, No. 11 Electric Railways Commission to Serve in this impor- tant work, would be a happy choice. In any event, we hope that the labor problem on electric railways will be thoroughly considered at the conference. Let's Cut Out "Preaching" In the Safety Movement THE program for the Eighth National Safety Con- gress, just issued, shows that the electric railways are to be well represented at that gathering. The pro- gram contains six papers by electric railway men of high standing, including the presidents of the Ameri- can Electric Railway Engineering and Claims Associa- tions. The topics of their papers suggest that the au- thors propose to handle the general subject in a tan- gible, practical way. This is highly desirable for there has been quite a little "hot air" in evidence in safety discussions, and a somewhat marked tendency to "preach." A recent Safety Council electric railway poster recognizes this fact by the caution, properly il- lustrated, "Teach by Example — Don't Preach Too Much." Accidents are in themselves tangible enough. The wordiness referred to comes from the difficulty of impressing upon the men who contribute to the causes of accidents the seriousness of the situation. Nearly everybody is willing to take a chance on his own safety and many are willing to include the safety of others also. But they don't like to be cautioned about it; it seems patronizing to them. The electric railway section meetings are to be held on Thursday and Friday, Oct. 2 and 3. There are some interesting matters of general interest to be presented on Saturday morning, and the annual dinner is sched- uled for Friday evening. It is thus possible for electric railway men who can route their Atlantic City ttrip so as to include Cleveland to take in at least part of the congress on their pierward way. It certainly would greatly encourage the men who are striving to keep up the interest in accident reduction if a reasonable number of the men fairly high up in the business would attend. Our observation inclines us to the belief that the executives in industrial plants take the safety move- ment more seriously than do those in the utilities, as evidenced at least by attendance at the Safety Congress. Why Politicians Try to Befog the Issue THE mayors of the largest two cities still seem to think it a popular move to oppose a living fare to the electric railways. In New York this opposition has gone so far, in the case of the New York & North Shore Traction Company, as to threaten to force its abandonment of much needed transportation facilities, where the persons dependent on these facilities have manifested their approval of a higher fare by voluntar- ily paying it in large numbers for some months. If the converse was the case in either New York or Chicago, it is easy to imagine the great outcry which would be raised over the necessity for lower fares. If a railway or any other public utility, on the strength of a franchise granted sixty years ago under conditions en- tirely different from those at present, was making enor- mous profits, it would soon be required to lessen its charges. There are cases without number where rates for utility service have been cut by the state legislature and these reductions upheld by the courts, and it is just that a public utility should be restricted to rates which will return only a reasonable return on the value of its property. A public utility is a public servant which conducts a monopoly for the state because private ownership is considered more desirable than that of the public, but in other respects it is practically a branch of the state. If the state thus assumes to reduce rates which are unreasonably high it is equally bound to in- crease the rates of a public utility which are unreason- ably low. That fair treatment of the local railway system is not only a duty but good business is recognized by a growing number of city officials. One of the clearest cut statements along this line which we have seen re- cently is contained in an opinion recently expressed on the advisability of increasing trolley rates in Auburn, N. Y., by C. S. Drummond, city attorney. "By law, in common sense and in good morals," he says, "the com- pany is entitled to a return for the service it renders the public, that is, the company is entitled, so long as it serves the public, to receive enough money to pay its operating expenses, the taxes assessed by the public upon its property, the interest required to be paid upon the money invested in property, and besides a reason- able return on its system for the service it renders." No pronouncement on the situation could be clearer and sounder than this. Status of the Manufacturers In the American Association AT THE coming Atlantic City convention it is hoped /land expected that provision will be made in the executive committee of the American Association for official representation of the manufacturers and that some plan for an affiliated association of manufacturers will be approved by the manufacturer members of the American Association. It is now nearly three years since Charles L. Henry, then president, in his Atlantic City convention address, suggested the provision of means to permit more active participation of manufac- turer members in the management of the association. It will be remembered that the 1916 convention was the first at which the manufacturing companies were rep- resented as company members on the same footing as railway members. At the following meeting of the executive committee, held on Dec. 20, 1916, a committee of manufacturers was appointed to draw up a proposed plan of union, and, at the 1917 midyear meeting such a plan was presented, but after discussion was returned to the committee for further consideration. During the war, when conventions were abandoned, naturally but little progress was made. Nevertheless, the executive committee decided, in any event, to rec- ommend the addition to the executive committee of two manufacturer members and suggested that after the m.anufacturers had formed an affiliated association there would be a third manufacturer representative on the executive committee in the person of the president of that association. Such constitutional steps as are necessary will be taken before the convention, so that the f rst of these changes may be voted upon at the October convention and a proposed form of constitution establishing the manufacturers as an affiliated associa- tion will be placed before them for their approval. There has been a question in the minds of many man- September 13, 1919 E LECTOR I c Railway Journal 511 ufacturers as to whether the proper form of their body should be an affiliated association or an independent or- ganization. For this reason, perhaps, it is just as well that the determination of this question has not pro- ceeded too rapidly. We believe that a majority of the manufacturer members of the association accept now the formation of a suitable affiliated association as the best solution of the problem. It may be that this opin- ion is unanimous; we hope that ii is. If there are still manufacturer or railway members who think otherwise, we call their attention to the fact that while some in- dependence is undoubtedly surrendered under the pro- posed plan, it provides for a 50 per cent increase in representation on the executive committee and a much greater unity of organization. Under any form of united organization, the manufacturers will enjoy a very considerable independence due to the nature of their business. Furthermore, they now form more than a third of the membership of the American Association and pay a fifth of the dues. Being such a large element, both numerically and financially, in the parent organi- zation, it would seem that they should have a section of it for their own in order that they may contribute most effectually to the development of the industry. If We Sat at a Telephone Switchboard ELECTRIC railway men in discussing traffic surveys no longer confine themselves to the actual passengers on the cars but to the possible passengers on the side- walks. One equally important source of prospective traffic may be suggested for such traffic surveys, namely, an analysis of telephone uses. If we could only sit in at a telephone switchboard to hear the nature of the messages, what surprises would be in store for us! Mrs. Jones is telephoning her favorite department store, 2 miles away, that she would like to have the store send up two or three size-38 house gowns for approval. Mrs. Smith is having a long chat with Mrs. Robinson who lives but a mile away. Mr. Williams, that likable rent collector, is asking some tenants to mail their checks, it having occurred to him that today he will lack time to walk from block to block. In short, we would soon see that the telephone instead of the electric railway was being used for countless occasions. Undoubtedly many interviews can be conducted more quickly and easily by telephone than personally, but we believe that the splendid salesmanship that the telephone companies have exhibited for years has had a great deal to do with the extended use of that instrument. There is just as good opportunity for the electric railway com- panies to display salesmanship. Traffic can be driven away by infrequent service and too high charges, just as it can be cultivated by the opposite policy. In the cases cited, Mrs. Jones possibly would have preferred to select those gowns herself at the store and the mer- chant surely would have liked her to do so, had it not been because of the long headway on her line or the recent increase in car fare. Mrs. Robinson would cer- tainly have had still more pleasure in seeing rather than merely hearing that dear Mrs. Smith. Had Mr. Wil- liams called for the rent in person, he might have run across examples of the janitor's neglect that would not otherwise come to his attention until too ^ serious to smooth over! The obvious moral is that the electric railway must be just as keen to advertise the advantages of personal presence as the telephone company is to advertise the advantages of faster though less satisfactory com- munication. The transportation man must not take the triumphs of the other fellow for granted, but be ready to do a little salesmanship of his own. With the self- propelled vehicle at one end and the telephone at the other, it is high time that we felt the inspiration that comes from competition. Some Things That Organized Labor Can Do. SANE and orderly unionism has won out against the aggressions of radicalism on at least two occasions recently. Once was during the Chicago street car strike when a majority of the trainmen sustained In- ternational President Mahon in his criticism of a dis- turbing element of men who had previously refused to take a referendum vote on a settlement offer. Only a few weeks later Mr. Mahon found it necessary to threaten the revocation of the Pittsburgh employees', charter because they went on strike in spite of a solemn agreement with the receivers of that property to abide by the award of the War Labor Board. At a subsequent meeting of the union the men listened to the pleas of their official counsellors, who insisted that they main- tain the inviolability of their contract. For such leader- ship the Amalgamated Association must be commended. A strong object lesson might have been given by mak- ing outlaws of the radicals on either of these occasions, but it is at least to the credit of Mr. Mahon and his as- sociates that they took the action which they did in these situations. In thus recognizing true unionism, it is none the less a duty to call attention to another chapter in the Amal- gamated Association's history which forms a less en- viable record. By this we refer to the story of tactics and methods of organized labor as related a few weeks ago in Kansas City at a hearing before the Chamber of Commerce committee. Various witnesses at that session told of former union employees who had ap- proached them while they were working on the cars and suggested means for beating the company. Far be it from us to intimate that union leaders had encouraged such conduct. If these stories are true, however, prompt steps should be taken to weed out from union member- ship all who could be identified as countenancing such tactics. If labor is to have any hope of coming into partner- ship with capital in the conduct of business, it must be prepared to join in the agreement with clean hands. Th'^ days of unsavory methods are past for labor as well as for capital. The time is coming, we hope, when correct moral principles will be the prime requisite for entrj^ into any union or any business. American labor has already proved itself more sane in listening to reason rather than to bolshevistic arguments, and we believe that with new responsibilities added to organized labor in its growing share in industrial activity the days of the unprincipled workman are numbered. The Amal- gamated Association membership, assembled in biennial convention in Chicago this week, might well ponder the benefits of following capable leadership rather than listening to the siren song of those who would lead the workmen into the doubtful benefits of a new Paradise. 512 Electric Railway Journal Vol. 54, No. 11 The Nickel in 1913 and 1919 The Shrinkage of the 5-Cent Coin During the Past Six Years Is Clearly Demonstrated by the Application of Unit Figures of 1913 Costs to 1919 Expenses By W. H. burke stone and Webster DURING the past few years we have witnessed what cornea dangerously near being the com- plete breakdown and disintegration of an indus- try representing an investment of some $6,000,000,000 and furnishing service each year to a total of about 15,000,000,000 passengers, including between 11,000,- 000,000 and 12,000,000,000 revenue passengers. We have seen the entire street railway industry of the country forced to the verge of bankruptcy, with com- panies both large and small owning some 6000 miles, or about 15 per cent of the total electric railw^ay track mileage of the country already in the hands of re- ceivers, over 500 miles of track dismantled and sold as junk during the past four or five years and in addition service on about 250 miles of track discontinued. Faced with the strong possibility of losing its street railway service entirely, the general public has in the past year or so discarded some of its apathy toward the situation and has at last begun to realize that like any othei commercial undertaking the street railway com- pany must, if it is to continue in business, be allowed to take in as much money as it is obliged to pay out. The car rider is coming to understand that serious re- sults are bound to follow his refusal to pay as much for his ride as it costs the company to furnish it, and that there is no pot of gold at the end of the rainbow which the company can draw on to offset the increase in present-day, as compared with pre-war costs of op- eration. The company manufactures and sells but one thing — transportation — and its selling price, in the long run, must be equal at least to the full manufactur- ing cost including a fair return on the money invested in its plant. The present predicament of the street railway industry is due to the fact that the cost of pro- ducing transportation service has increased enormously during recent years while the selling price, instead of being subject to the economic laws which govern the prices of other commodities, has arbitrarily been kept down to substantially the pre-war figure. Car Ride and Loaf of Bread Once Cost the Same The 1913 nickel was in many, though not in all, cases equal to the cost of the average city street-car ride. It was also equal to the cost of a loaf of bread in- cluding the baker's profit, but times have changed. In addition to handling the world's normal business as it did six years ago, the world's nickel has been called upon to supply battleships, guns, ammunition and other war equipment to the extent of some $150,000,000,000 in addition to meeting indirect costs of the war, and the strain was too great. To meet the situation $250,- 000,000,000 in paper currency has been issued, with the result that the nickel of pre-war days has shrunk in purchasing power to a shadow of its former self. To offset this depreciation in purchasing power the baker, for instance, added a few cents to the price of his loaf of bread. In other words, he gave his nickel the help required to maintain it at the equivalent of its 1913 value. The street railway nickel has not fared as well but has been obliged to continue as it had done five years before under conditions which were entirely different. It has done as much work for the com- pany as it was possible for it to do under the changed conditions of the past few years and the rest has been left undone and labelled "deferred maintenance" or more generally "foregone dividends". During the past year or so some, though by no means enough, relief has been granted in the way of higher fares. The regulatory bodies and, to a certain extent, the general public have apparently begun to realize that the nickel will not stay in the street rail- way business if it is to be permanently overworked and discriminated against, but will join the other mem- bers of the family in lines of business where the re- quirements are less exacting. This matter of comparative value of the nickel has been mentioned at some length for the reason that the car rider, at least, does not usually appreciate the fact that the nickel he now drops in the fare box is not, from the railway company's standpoint, the same coin at all as the one with which he paid his fare five or six years ago, although outwardly it looks the same. It won't buy as many pounds of rail nor pay the wages of the motorman for as many minutes as the nickel did in 1913, and this, after all, is the impor- tant point which concerns the street railway company. All Factors Must Be Duly Weighted in Making Comparisons It is evident that the real measure of permanent relief which the railway needs in the way of higher fares can only be accurately determined by comparing the value of the 1919 nickel with the 1913 nickel work- ing under identical conditions. It is not enough to say that last month's total operating expenses show an in- crease of 25 to 50 or 75 per cent over what they were . for the corresponding month six years ago because it may well happen that in the 1913 month, when con- ditions were tolerably satisfactory, the railway com- pany retied a couple of miles of track, for example, whereas with conditions as they are with most com- panies at the present time, it is reasonably safe- to assume that no extensive work of this kind is being done, provided the cars will stay on the rails. Merely to compare total operating expenses to prove our case is, in a somewhat exaggerated sense, like attempting to prove that the cost of living has in- creased because we paid $2 a bushel for potatoes last week where in 1913 we paid only 10 cents a quart for beans — our comparisons are differently based. Neither does it throw much light on the subject of in- creased operating costs to compare present and pre- war unit prices of materials and equipment used in street railway operation. In an effort to prove their case, a great many such comparisons have been pub- September 13, 1919 Electric Railway Journal 513 lished by the railway companies during the past two years, but in most instances 90 per cent of the items included in these statements covered such compara- tively insignificant materials as wood screws, trolley fingers, carriage bolts, etc., and while their unit costs might show increases of two or three hundred per cent, their total money cost would not represent 5 per cent of the companies's total operating expenses. In the data given in this article an effort has been made to arrive at a true weighted average amount and percentage by which operating costs for a typical month in 1919 exceeded those for the corresponding month in 1913, the information covering the operation of three representative street railway properties, which for convenience are referred to as A, B and C. Stated in another way, the purchasing power, and therefore the value, of the nickel which these companies are col- lecting in 1919 has been compared with the value of the nickel collected in 1913. How THE Comparisons Were Made Company A operates a city railway system serving an estimated population of 105,000. Company B is also a straight urban railway proposition serving an estimated population of 150,000. Company C operates a combined city and interurban system, the population served being estimated at 280,000. The three com- panies are operating their city systems on a five-cent fare with a 2J-cent child's fare, and with the usual liberal transfer privileges. Although Company C is required by its franchise terms to sell twenty-two tick- ets for a dollar, only 7 per cent of _ its city revenue is represented by sales of these tickets, so that to all practical purposes its rate of fare is 5 cen.ts. Briefly the procedure followed in comparing present and pre-war operating costs for the three companies was to determine what their 1919 operation for a nor- mal month would have cost at the unit labor and ma- terial prices which prevailed during the corresponding month in 1913. All vouchers, stock slips and pay rolls covering March, 1919, operation were carefully analyzed and the quantities of material and supplies and the hours of labor chargeable against each operating account under the Standard Accounting Classification were thus determined. To the 1919 quantities the material prices and wage rates prevailing in March, 1913, as shown from the companies' records, were applied. In this way figures were arrived at which show what the cost would have been in March, 1913, for identically the same work as was done in March, 1919. The greatest care was taken to assure accurate results. As an example of the detail in which the matter was covered, it may be stated that adjustments were made in such com- paratively unimportant items as the increases since 1913 in freight and express rates on material. Actual data were available in substantially all cases and such minor assumptions as were necessary had to do with insignificant items which could have no appreciable effect on the total figures which are summarized in Table I: TABLE I— COMPARISON OF OPERATING EXPENSES FOR THREE COMPANIES IN 1913 AND 1919 Actual Operating Cost of Same Weighted Av. % Expenses — One Operation at Increase in 1919 Month, 1919 1913 Unit Prices Over 1913 Costs Company A $44,473 $26,879 65 4 Company B 107,277 72,309 48 4 Company C 138,226 95,405 44 .9 It should be explained in connection with the above figures that Company A, like most street railway com- panies, has been subject during the past few years to a very large increase in the cost of coal. Companies B and C, both of which burn oil as fuel, have been un- usually fortunate in this respect, due to the fact that both have purchased oil on long-term contracts at very favorable prices, while in the case of Company A it was impracticable to make a coal contract covering more than a one-year period. Company B is, in fact, paying slightly less per barrel for fuel oil at present than in 1913. This explains the greater percentage increase in the weighted average expense for Company A. If the increase in fuel cost be disregarded for this company, its weighted average increase becomes 48 per cent, or substantially the same as for Companies B and C. Incidentally, the condition referred to above shows the justice of different rates of fare in cities where outwardly at least conditions appear to be very similar. A more detailed comparison of March, 1919, with March, 1913, weighted operating costs for each of the three companies is shown in Table II: TABLE II— COMPARISON OF 1919 PRIMARY EXPENSE ACCOUNTS ON 1913 COST BASIS — Company A — ■ — Company B—- — Company C —> Maintenance of way and structures $2,541 $1,727 $8,935 $5,092 $17,148 $10,525 Maintenance of equip- ment 3,938 2,436 9,168 5,796 18,716 10,190 Total power 6,639 3,435 12,191 12,687 11,684 10,622 Wages of trainmen... . . 16,763 8,741 42,662 23,677 44,348 25,002 Other car operation, in- cluding superintend- ent of transmission . 4,082 2,275 10,538 7,206 13,360 8,400 General and miscellan- enous, including traf- fic 10,510 8,265 23,783 17,851 32,970 30,666 Total $44,473 $26,879 $107,277 $72,309 $138,226 $95,405 The foregoing figures show that it cost from 45 to 65 per cent more in 1919 than it did in 1913 to do identically the same work. There is one phase of the matter which is not taken into account in the figures shown above, that being the relative efficiency of the labor the companies are now employing and the quality of the materials they are now receiving compared with what they were getting in 1913 at much lower prices. While it is practically impossible to develop accurate data on these two points, there is no question but that such a comparison would have the effect of further increasing 1919 costs by a very substantial amount. In 1913 all of these companies were furnishing good service, maintaining their physical properties in good condition, providing the required amounts for deprecia- tion, paying a reasonable return to the owners of the property and laying by a little balance out of the nickel with which to stabilize their credit and attract new capital as needed. Merely to take care of the increases in current operating expenses under present conditions and allowing for no falling off in business due to the higher fares necessary to accomplish this, it appears that in the case of Company A the portion of the nickel which goes to pay current expenses would have to be increased 65 per cent and an increase of approxi- mately 45 per cent in the case of Companies B and C. This would represent an increase in fare so far as these particular companies are concerned, of about 2 cents in the case of Company A and about 11 cents for Com- panies B and C, making their fares 7 and 61 cents re- spectively. As stated above, these advances in fare would offset 514 Electric Railway Journal Vol. 54, m. ii only the increase in current operating expenses; another quarter of a cent would be necessary to take , care of the enormous increases in taxes to which the companies are now subject and a still further addition to the fare unit would be necessary to pay the investor the higher return which he is now demanding on his money and which he is able to get — and with safety of his princi- pal— in other lines of business. Furthermore, if present high prices continue, depreciation requirements are bound to be greater than under former conditions, since eventually the present physical properties must be largely rebuilt and replaced at costs which exceed the cost of the existing construction by from 50 to 100 per cent or even more. The grocer, for example, has added his increased costs to the- price of his goods, but for the most part the street railway company has not been allowed to do so because of franchise restrictions and requirements and the arbitrary manner in which its business is regu- lated. Looked at in another way, the above figures show that the nickel no longer represents its 1913 equivalent in purchasing power and if the 1913 nickel be taken at 100 per cent value, the companies in 1919 are not getting a 5-cent fare, but only roughly from 3 to 31 cents, and this is after allowing merely for higher current operating costs. Conversely, if Company A. had been collecting a 3-cent fare and Companies B and C a 3i-cent fare in 1913, they would have been receiving approximately as much for their service based on then prevailing conditions as to wages and material costs as they are getting at the present time and under exist- ing conditions. How THE Net Would Have Increased to 2.21 Cents In this connection, an analysis has been made to determine how Company B, for example, spent the nickel it collected in March, 1919, and how it would have been spent in 1919 if the same work which was done this year had been done at prices prevailing in March, 1913. This information is summarized in the tabu- lation shown in Table III : TABLE III— COMP.\NY B'S DIVISION OF THE NICICEL IN 1919 \ND WHAT IT WOULD HAVE BEEN ON 1913 BASIS ■ Division of 5-Cent Fare ^ Actuiil March, 1919. Based - March, 1919 on March, 1 9 1 3, Price- Labor. . . 2. 17 cents I . 12 cents Material and sundries 1.46 cents 1. 02 cents Total operating expenses 3 . 63 cents 2 13 cents ; 37 cent .16 cent Interest charges 40 cent .50 cent Balance tor reserves, depreciation and dividends 60 cent 2 . 2 1 cents 5 . 00 cents 5 . OO cents NOTEL — Sundries include such items as injuries and damages, r^nt, insui- •ance, light and water, and others which cannot be classified directl\- as either labor or material. It will be seen from the above that average labor costs have practically doubled until nearly 45 per cent of the nickel is now required to meet the pay roll, that prices of material and sundry expenses have advanced some 45 pcv cent, that taxes have considerably more than doubled. Interest charges, on the other hand, have de- creased slightly, due to a rearrangement of the com- pany's outstanding obligations, while the portion of the nickel left to take care of reserves and depreciation and pay the investor for the use of the money which he invested in good faith in the property is actually 73 per cent less than it would have been if 1913 conditions were applied to March, 1919, operation.. The facts are that in March, 1919, this particular com- pany earned, after allowing for depreciation, at the rate of 2.2 per cent per year on the actual cash investment in the property, although this figure would be reduced to less than 2 per cent had it been possible to maintain the prooerty at pre-war standards. If the showing were based on 1913 conditions the company would have earned, afier proper allowance for upkeep, approximate- ly 10 per cent on its actual cash investment. Incident- ally, this is equivalent to only 7 per cent. on the repro- duction cost to-day, as shown by a recent appraisal of the property. It cannot, therefore, be contended that even under 1913 conditions the return would have been exorbitant. It might be stated further that this com- pany was recently obliged to pay 9 per cent for money in order to finance its floating debt for a period of 3 years. The Comparison Carried to Gross Earnings In the case of Company B, the comparison between the actual March, 1919. showing and the adjusted show- ing based on March, 1913, prices was carried a step further, gross earnings, as well as operating expenses, being adjusted in order to determine the company's balance after paying its current operating expenses, for a typical month this year under conditions which pre- vailed in U-J3. This particular company has been the victim of cut-throat jitney competition, in varying de- grees, since the latter part of 1914, as many as 800 jit- neys having been licensed at one time with about 135 still in operation. In order to allow for the effect of jitney operation on the company's earnings, the 1919 figures were adjusted by assuming that normally the earnings per car mile in March this year should have been at least as great as in March, 1913, when tbe figure was slightly over 30 cents. On this basis the figures compare as shown in Table IV. TABLE ir— COMPARISON OF EARNINGS AND EXPENSES FOR COMPANY B ON 1919 AND 1913 BASES Actual Man-li, 1919 Gross earnings $143,888 Operating expense.<5 1 07,277 Balance for taxes, intercht, depreciation, dividends and reserves $36,611 * Incrsase. Same Op'^ration Based on 1913 Conditions $169,981 72,309 $97,672 Decrease $26,093 *34,968 $61,061 It should be made clear that the figures shown above in the second column do not represent the actual March, 1913, showing of this company, but merely what the showing would have been if March, 1913, prices and con- ditions had applied to this year's March operation. The facts are that on account of the company's financial condition a great deal less work was done on the prop- erty in March this year than was really needed to main- tain and operate it at its 1913 standard, and as 1913 expenses as adjusted are based on 1919 operation this means that they are very much less than they would have been had the company been in shape financially to operate and maintain its property at the standards which prevailed before the war. The above figures speak for themselves ; they show that on an equivalent basis this particular company, after paying its current expenses, had $61,000, or 63 per cent less than it would have had under conditions as regards operating costs which prevailed in March, 1913, with which to take care of depreciation, pay its taxes arid a return to the investor and maintain its credit. Fur- Sevtember 13, 1919 Electric Railway Journal 515 therpibre it should be rerfembered that even basing the If arch, :^,919, showing on March, 1913, prices and wage rates, '^tlie company wbuld have earned no more than 10 per cent— not on some assumed value, but on the cold cash that has actually gone into the property — and that it is actually earning at the present time con- siderably less than 2 per cent on this investment after allowing for proper upkeep oi its physical property. As already stated, ths three companies considered in this article are fairly representative, Company A being more; 'SO than the other two since its fuel costs as well as its other expenses have increased enormously dur- ing the past tljree years, as has been the case with prob- abl^.,9p per cent of the street railway companies over the country. The figures show that this company's operation for a typical month this year cost 65 per cent more than it would have cost under 1913 conditions as to material prices and wages and that its so-called nick- el fare has now become 3 cents without making any allowance for higher taxes, increased money rates and greater allowance for depreciation which must be faced sopiner or later. As a broad proposition, these figures wopld probably hold true for the majority of city prop- erties over* the country. ,. , - It has been shown that ^e purchasing power of the nickel the company receives for its service, taken as 100 per cent in 1913, has now shrunk to 3 cents in the case of Company A and to about 34 cents in the case of Com- panies B and C; if higher taxes, capital costs and de- preciation requirements were allowed for in addition to higher current operating expenses, the respective figures would be not more than 21 and 3 cents. There is surely no good reason to think that visages and other costs which have, as a matter of fact, increased since the armistice was signed last November, will show any appreciable reduction in the near future and it is a practical certainty that they will never go back to vvhat they were in 1913. In other words, like every other industry, the street railway business is on a permanently higher price basis both as regards operating costs and the cost of the capital needed to finance its require- ments. Failure to recognize this fact or to take the necessary action after recognizing it, is responsible for the present predicament of the street railway industry generally. The Service Must Be Paid For There is no cure-all by which the railway company, any more than other lines of business, can in the long run get 5 cents worth of value for 2^ or 3 cents, as it has been and is now trying to do. The street railways of the country need some $600,000,000 to $700,000,000 a year for improvements and extensions in order to keep pace with city growth and development, and in addition an average of about $350,000,000 a year is needed to refund maturing obligations. There are substantially but two ways to get this money, either through munic- ipal ownership or through some plan under which the private investor can count not only on the safety of his principal but also on a reasonable return on the money he puts into street railway securities. If an in- dustry as large as this and as necessary to the public welfare is worth saving, then the shrinkage in the value of the pre-war nickel fare must, in the long run, be made up. This can be done through higher fares, through a combination of higher fares and relief from present franchise burdens such as expenditures for paving and other street improvements, transfer requirements, etc.. or through municipal ownership by charging the deficit into the general tax bill. If municipal ownership and operation is the plan ul- timately adopted, the full cost of the service will still have to be paid in some way, either by the car rideiJ or the general public. The physical property will con- tinue to wear out and require replacement just as it does now; interest on the securities issued by the city to finance the property will have to be paid the investor the same as with private ownership ; the current ex- penses will have to be paid under municipal operation, just as is now the case, and there is very good reason to believe that these expenses will be considerably higher than for the same class of service under private operation. Taxes may seem to be reduced under munic- ipal ownership, but ultimately the amounts which the privately owned company now pays the city in the form of taxes must, of course, be collected from the other local taxpayers, so that there is really no saving, even here. In other words, whatever the final solution of the present difficulty may be, the community will, if it wants street-railway service, have to pay its full cost — something it is not doing now and has not been doing for several years past. Japanese Railways Report Favors Electrification THE annual report of the Imperial Government Rail- ways of Japan for the year ending March 31, 1917, has made its appearance in English in the form of a vol- ume of more than 200 pages, with numerous illustra- tions, charts, maps, etc. On the subject of electrification, the report has this to say in general: "Electric traction, as applied to rail- ways, is especially suited to Japan, where the railways pre-eminently traverse mountainous regions, with the consequent prevalence of long tunnels and heavy grades. Already a good beginning has been made in this re- spect for suburban service in and around Tokyo and for the mountain section of the Shin-Etsu line over Usui Pass. The satisfactory results shown by the electrified line have led the authorities to consider the extension of the field of electric power to some of the heavj' trunk lines." While the electrification work had its inception be- fore the nationalization of the railroads, it has since been fostered and extended under the government man- agement. The most recent extension of note was the Energy Consumption Mileage per ^ Traveled Energy Loeoniotive- Electric by Vehicle Consumption, Mile, Year Ending, Loco- Electric Mileage Kilowatt- Kilowatt- March 3 1 motives Locomotives Hauled Hours Hours Miles Miles 1913..: 10 87,722 536,215 1,642,050 18.72 1914 12' 122,155 761,115 2,246,847 18.39 1915 , 12 136,409 900,879 2,549,124 18.69 1916 12 112,977 743,531 2,241,162 19.84 1917. . . 12 127,444 841,449 2,535,118 19.89 electrification of the Abt rail section across the Usui Pass, Shin-Etsu line, which was quite fully described in the ELECTRIC RAILWAY Journal, Vol. 43, page 1393, June 20, 1914. The system used in this line was 600 volts, direct-current, while that on some of the earlier electrification work gn the Tokyo-Yokahama electrifi- cation employed 1200-volt direct current. The results of the electric locomotive operation over the Usui Pass are given in the accompanying table. A FRONT YARD FIT FOR A RESIDENCE SECTION CAMP BURIED IN FOLIAGE Examples of Successful Planting by Pacific Electric Railway September 13, 1919 Electric Railway Journal 517 Pacific Electric Has Complete Parking Program Railway Finds Expenditure for Improving Grounds Around Buildings to Be a Profitable Investment By CLIFFORD A. ELLIOTT Cost Engineer, Engineering Department Pacific Electric Railway, I_.os Angeles, Cal. THE maintenance of way department of the Pacific Electric Railway attempts systematically to utilize the natural climatic conditions which prevail in its territory for the beautifying of grounds around substa- tions, passenger and freight stations, carhouses, shops, and section-camp grounds. In this semi-tropical climate lawns and terraces are green the year round, and tropical palms, flowers, trees and evergreen shrubbery contribute to the beauty of the landscape. For eight years the department has had an organization for handling the parking beau- tification program. This covers both the original work in parking the grounds and the upkeep of the grounds as well. The procedure is for the chief gardener and his force to improve the grounds around the buildings, plant- ing them with flowers, trees and shrubbery. Then the company furnishes garden hose and endeavors to in- terest the operators and agents, inducing them to give some of their spare time to watering the grounds and giving to them such other minor attention as may be needed. Where section-camp grounds are improved, very little effort is necessary to persuade the Mexican track laborers housed there to aid in this work, as they are lovers of nature and appreciate the privilege of taking part in beautifying their surroundings. The greater part of the maintenance work around the grounds, such as trimming of shrubbery and trees, caring for palms, mowing lavvms, reparking, fertilizing and replanting grass and flowers, devolves upon the chief gardener and his staff. The chief gardener is a man who has devoted his entire life to work of this nature. He makes it a point to select such flowers, trees, grass and shrubbery as are well adapted to the southern California climate and that blend properly with other plants in a given locality. He also considers the care required by different plants and the consequent maintenance expense with a view to minimizing this. In spite of the favorable climate, his task is not always an easy one, because at some points considerable sand is encountered. He does his best, however, with the aid of fertilizers and transplanted fertile soil. In the valley towns his task is easy because the soil is usually rich and favorable for carrying out parking plans. When a park has been installed around a building or camp, the defines of the parking and the walkways A SUBSTATION SET IN A GARDEN are outlined with rubble or washed stone obtained from near-by "dry washes." The stones are whitewashed, a practice that is found not to be burdensome as the climate is favorable to a long life of even the first coat of whitewash. The beautifying of grounds plays an important part in the relations between the company and the public. Sometimes a small passenger waiting station is found in a locality where the sur- rounding boulevards and residences are extensively parked. When possible the company tries to adapt its own grounds to the sur- roundings. Some years ago a small frame substation building was erected in a thickly-settled district. The community protested, but after the company had com- pleted its parking plan the sentiment entirely changed. In one locality the parking of the station grounds proved to be a great boon to the people as it was used by them for town gatherings in the absence of a park of their own. Tourists over the company's lines are favorably im- pressed by what they see of California from the car windows, and the company's regular patrons, living along its lines, appreciate its efforts in the line of horti- culture. In addition to the duties mentioned, the chief gardener and his force take care of maintenance work in trimming back trees along the right-of-way to provide clearance, especially grade crossings, where a dense growth of trees would totally or partially obscure the view of the track and highway. In assigning tasks of this nature, which come within the province of the maintenance-of-way department, to an experienced landscape gardener rather than to a "tree butcher" of the type which is in some places "turned loose" on the trees, the company management feels that the best results are obtained. Skilled supervision of this work gives dignity to it and permits the removal of obstruc- tions without seriously marring the beauty of the foliage which has been disturbed. In conclusion, it may be said that in general parking work around the grounds of structures the company's policy is to plant trees of such types that their long life and uniform and symmetrical growth may be in- sured. Of course, the native palm is a very important tree, and there are several types of cedar well adapted to the climate that retain their form from the start up to full growth. 518 Electric Railway Journal Vol 54, No. 11 Inventorying* Materials and Supplies 8613 Different Kinds of Materials Valued at $916,317 Were In- ventoried in Two Days at Cost of $239.85— No Special Help and No Overtime By B. J. YUNGBLUTH General Storekeeper for Receivers Pittsburgh (Pa.) Railways ^"■^0 MAKE inventories successful six fundamental I points must be considered: (1) A definite plan; -J- (2) sufficient preparation; (3) personnel; (4) schedule of work; (5) speed, and (6) recapitulation. Planning the Work Best results are obtained by working in close and sympathetic touch with the auditor. Our practice is to take a complete inventory at each store as of one date each year, whi'^'h enables us to make the necessary ar- rangements sufficiently in advance and to plan it as any big job is usually planned. An inventory taken in the stock books (see the illus- tration) is more accurate than a "blind" count. Note that one has the advantage of seeing before him at the time of counting the amounts on hand in the previous months together with the normal movement of the item. Therefore if the amount found at the time of inventory is more than was previously on hand plus what was received, or if it is abnormally below the amount on hand previously minus the normal movement, an in- vestigation at the time the count is made is naturally prompted, easily made and productive of the greatest possible accuracy. Since the person making entries in the book is relieved of the work of writing a description of the material, he has plenty of time to scrutinize the amount said to be on hand with relation to the previous record. Errors in transcription also are elimi- nated. In the inventorying of iron, cold-rolled steel, etc., the material is not actually weighed. Measurements of length are made with an 18-ft. stick properly graduated, and the average weight per foot, according to an authority like Kent's hand-book, is used to determine the weight. This very greatly reduces the cost, and investigation has proved that it is more accurate, owing to the errors that creep in when the stock is actually weighed. Instructions relating to the physical work only are read and explained to all persons engaged in inventory work. The following abstract of these for the inventory as of May 1, 1919, together with a study of our stock book sheet, will enable the reader to understand our plan. The annual inventory is nothing more or less than our regular monthly stock-taking excepting that items stored in bulk such as nails, rivets, etc., which we are permitted to estimate each month, must be ac- curately counted or weighed as the case may be. Preface: The stock books contain a list of every article we have in stock. Books may be taken from the office only after noting on chart, date. Hour, and initials of team. Material must be counted in the sequence as listed in stock books. Date each page of book and initial it just as you go along. A schedule is made indicating the books and their sequence, to be used by each team. Neatness: All entries in the stock book should be made with indelible pencil. No erasui'es are permitted. If cor- rections Hie necessary, cross out the first entry with two light lines without obliterating it and write correct figures above it, showing your initials. No attempt is made to embarrass you because of errors made. We do ask you to show your initials for counts, corrections and changes. If questions arise, it helps to know whom to ask. Counters: The person counting the stock shall say what he finds in the bin, giving the class number and the number of pieces. The person handling the stock book shall check the class number and the description given. In case of any differences the class number in the stock book shall be considered as correct after verifying same with the 1918 stock book. Each item must be actual count; no estimates accepted. The person handling the stock book will watch quantity said to be on hand, and if there is any great difference com- pared with previous month, the count shall be verified and the stock book marked "O.K." in the "On Hand" column with the initials of the person handling the stock book. When the location of material in stock book is incorrectly noted or missing, the correct location is to be shown in the stock book. If any overflow stock of the same material is stored in the annex, platform or yard this should be shown. Units: Frequently the accounting unit is not the same as the stock book unit, such as reels of wire, etc. The num- ber of reels or coils of wire must be shown as usual, and in addition the weight or length is required for accounting purposes. Express both units in stock book in "On Hand" column at the same time the count is made. Entries in Stock Book: If there should be on hand any items not written in the stock book, please locate the stock book in which such material should logically be and make the entry with indelible pencil. Use care to get full de- scriptions, dimensions, etc., and show location. Paint Dots: As each item is counted dot the piece or con- tainers (like barrels, kegs, boxes, etc.) with pink paint (a different color is used each year). In the case of nails, nuts, rivets, etc., in bins at least one dozen should be dotted. The dot should not be larger than a penny and preferably smaller. Care should be taken not to obliterate any paint dots made at previous inventories. Do not place the paint on the contact surfaces of electrical parts or on the exposed surfaces of car trimmings or other material that would be damaged thereby. The dotting in no instance is burden- some, it does not delay the work. It verifies that all items were inventoried. Paint does this better than anything else. The mark is not without further value, it shows how long the stock is on hand. To insure correctness of the inventory it is necessary to record whether the receipts and the issues during the period were "before" or "after" the stock of each item was counted as evidenced by the presence or absence of the painted dot. Receipts: No materials will be received during the in- ventory period excepting shipments applying on discount invoices or for special rush jobs. Such receiving cards as are necessary will be marked by the man inventorying the section in which such goods are stored "before" or "after" with his initials. This must be done each day. Where the count has been made and entered in the stock book the goods received may be put into stock and no addi- tional amount entered in the stock book, provided the re- ceiving card is marked "after." Where the receiving card is marked "before," care must be taken to see that such quan- tity is, included in the amount on hand. Issues : The counter man will be particular to mark each requisition either "before" or "after." Where only a part September 13, 1919 Electric Railway Journal 519 PITTSBURGH RAILWAYS COMPANY. C. A. Fagon. W. D, George, S. L. Tone, Receivers. HECAPJTUUTION OK INVENTORY. TAKEN AT A3 OF MAY 1ST, 191 AUDITORC OFFICE DESCRIPTION MNTENANCF. OF \ HD STRUCTURES RaiK ai.l FaMtjn.no Pavino Maloti: Sand Sail (Bulk) am Lo Polos Wito ami C^bl INVENTORY VALUE RECORD OVER VALUE VALUE SHORT 'Cjnvas, Rublwt iind LDiiliicr Cwtils Broom! ,ini( Brushus (nil kimli.) SUblo Suppllos Cenoral Supplies wa>» and Tiowuru Scrap Copper, Brass, Babliill, Tin. c Scrap liwi anil Sluel, uiciuilino Scia: TOTAL recapitulation of inventory used by pittsburgh railways of the material issued on any one requisition has been counted, the words "before" or "after" shall be noted op- posite each item on the sheet. This must be done when material is removed from the bin. Completion of Inventory: After the inventory has been apparently completed, certain persons will be detailed to make an actual inspection of the stock and by the presence or absence of paint dots to determine whether any materials may have been missed. It will be the practice to exchange sections in doing this, i.e., the person who counted stock in a given section will inspect the work done in some other section. Getting Prepared Inventories are effected more by what is done in the 360 days than in the few actually required in listing the stock. The stock must be kept in good physical con- dition regardless of the plan of operation. Sufficient space or room is more necessary than fine fixtures or expensive buildings. Where the necessity exists, material should be marked for identification. Material should remain in the origi- nal packages instead of the entire stock being thrown into bins. That which it is necessary to place in bins should be neatly piled or placed. Given the same bin, material can be placed, even piled, in a way to make counting difficult, or it m^ay be placed to afford proper visibility to count it without handling. Intelligent thought shows the way. Having in mind the quantities of certain goods required by the man on the job, we specify in purchas- ing that the manufacturer ship them in uniform pack- ages, for instance: Line insulators .'jO pei- box Line bars 50 per box Babbitt lUO lb. box Pish paper 25 lb. package Channel gum 5 lb. package Armature coils 1 set per box Grid resistors 1 frame per box Commutators 1 per box The manufacturer makes no charge for this. He is glad to accommodate. When it is inconsistent to ask the manufacturer to put certain other goods in pack- ages, much is gained by packing them in our receiving room. Our practice includes such items as: Brake shoe keys 10 package Pipe fittings (sinall) 25 package Open links 25 package Segments 10 package Fingers 25 package Small electrical parts 100 envelope All packages are tagged to show quantity and descrip- tion of contents. Besides keeping the material in good condition while on the shelves, the packages in many cases go to the ultimate consumer without additional counting, thus eliminating liability to error, damage or loss. The time is well spent. Chain, rope, wire and similar heavy material, the weight of which is required, is kept on platforms used with transveyor trucks so that they may be run on the flush floor scale and weighed without handling. A complete list of items to be inventoried under the different classes is as follovv's: Maintenance of Wat and 3 2 Spi'ings, all elliptical and Structures helical body, truck, etc. 1 Ballast 33 Pipe and conduit, iron and 2 Ties steel, including steel tubing 3 Rails 34 Pipe and conduit fittings 4 Rail fastenings and joints 35 Car-body trimmings 5 Special work 36 Fare boxes, fare registers 6 Paving materials and repair parts 7 Sand 37 Arc and common headlights 8 Salt (bulk) and rattan and i-epair parts 9 Signal and interlocking and 38 Signs and their repair parts telephone and telegraph ma- 39 Electric car heaters and re- terial pair parts 10 Line poles 40 Car stoves and heaters 11 Wire and cable for produc- other than electric), etc. tion, transmission, etc. 41 Mechanical and electrical 12 Pole fixtures and electric line devices for car equipment, accessories N. O. S. 13 Bonds 42 Fenders, life guards and re- 14 Lumber and timber for main- pair parts tenance of way and struc- 43 Paints and varnishes tures 44 Glass 15 Castings for maintenance of 45 Air-brake material (all way and structures makes ) POWER PLANT AND SUBSTATION f^yfs"^''' ^""^ '"^P^"' 16 Boilers and boiler apparatus 47 Brakeshoes repair parts 48 Car wheels 17 Engine repair parts 49 Car axles 18 Turbine repair parts 50 Material for service cars, 19 Armatures and repair parts N. O. S. 20 Switchboards and switch- 51 Trolleys and repair parts board equipment 52 Controllers, contactors and 21 Mechanical devices for power repair pai'ts stations 53 Car type motor repair parts 22 Ash and coal handling ma- ,54 Gears, pinions, gear cases, chinery, hoists, etc. lids and parts 23 Storage battery parts 55 Bearings Car Equipment 56 Circuit breakers, power 24 Lumber for car equipment, switches, resistances, etc. wagons, etc. 57 Wire and cable for car 25 Bolts, nuts, washers, rivets, . equipment uses pins, studs, etc. 58 Insul.iting materials 26 Metals, N. O. S. 59 Kli'i trical liardware 2 7 Bar iron and steel 60 MacliintTy, machine tools 28 Drawheads, automatic coup- and repair parts lers, journal boxes and lids ^ 29 Castings, iron and steel. Conducting Transportation rough and finished. N.O.S. 61 Fuel 30 Castings, brass and bronze, 6 2 Lubricants rough, buffed and finished 63 Illuminating and other oils. 31 Forgings gasoline, etc. JAM ARV FEBRUARY MAR MAY vm. juir 1ST jsEPTE MBER OCTOBER NOVEMBER \. DELEMBER i2 r- ■JlCK box to J.sjW wmu, BESCRlPriOK i CIJ.-S 661U1 IQQ r.TD. FKC. t 1 ... /? 1 jr.mr BflOH S.3/00 13 WATT. 120 VOLT, iJ necessary because where two or more inspectors are in structing the men they are likely to have different opinions that must be brought into line by means of such specific directions. It is, of course, not intended that a motorman should have these rules memorized. The difficulty found, says G. Marshall Harriss, general man- ager, was that a man who was low down on the list and wasting energy would say : "Will you show me how I am to save it?" The easiest way appeared to be to put a booklet into his hands and demonstrate here and there according lo the printed regulations. In discussing this subject, Mr. Harriss writes that he has a very high opinion' of the value of checking in- struments on cars. He has gone very carefully into this question and has found that most of the tramways which are not very keen on the subject have never given them a fair trial. He, on the contrary, has found that the motormen who have the best efficiency records are usually the best drivers all around. He assumes that if they are alert and keen in trying to save current, they will be keeping a careful lookout to avoid acci- dents. Formerly it was the practice at Dublin to give the high- est two men of a depot a bonus of 10s. ($2.40) and the third man a bonus of 7s. 6d. ($1.80) every six months. Dublin UniUd Cramwai^s Companp (1696), Ctd. RPPORT SHEET. /7y 4/^0. - - 2f^ ' /fi Signed, _iayof_ CARHOUSE INSPECTOR'S REPORT ON CARS USING EXCESSIVE CURRENT (Starting number is put on by night foreman. Inspector initials report at end of each trip). This proved unsatisfactory. It discouraged the mass of the men who earned no prize money and tempted un- scrupulous men to run by intending passengers for the sake of showing low energy use. Furthermore, the men prefer receiving like treatment. It has not been difficult for the traffic department to keep them interested in careful operation, especially as the trip-by-trip check at the carhouse encourages them to report immediately car defects that would otherwise go uncared for and possibly make harder work for them. The men also appreciate that careful attention to power saving goes September 13, 1919 Electric Railway Journal 528 hand in hand with greater safety to themselves and their passengers. Ten Years Satisfactory Meter Experience at Aberdeen The Aberdeen Corporation Tramways have enjoyed a long and satisfactory experience with the use of the C-H ampere-hour meters. As early as 1908, these meters were installed during the administration of R. Stuart Pilcher as general manager. He enthusiastically advocated the use flf such devices in a paper before the Municipal Tramways Association. Mr. Pil- cher's enthusiasm is shared fully by his associate and successor, William Forbes, who has set himself the task of making the most of the savings possible with such devices. Like other British tramways, Aberdeen has a super- visory official called motor inspector — really motorman's continuing instructor — whose duty it is to ride the cars for the purpose of helping the motormen in their work. This feature of organization is, of course, most helpful in getting the fullest benefits out of car-checking in- struments that depend for high eflficiency on the proper handling of controller and brakes. However, when emergencies arise, as in the case of the coal shortage due to the war, the general manager himself must take a hand to secure top-notch results. As an example of this, the following circular issued by Mr. Forbes under date of Oct. 17, 1918, is worth quoting: Aberdeen Corporation Tramways — Coal Shortage Strenuous efforts are being made all over the country to cope with the present emergency caused by the shortage of coal. Coal must be saved and we have to adopt means whereby the contribution of the Tramways Department amounting to 15 per cent of our last year's total consump- tion of power must be saved. Various schemes have been adopted by different tramway authorities in order to effect the desired economy, and many towns are greatly curtailing their services. We could, I thinK, save a considerable amount of power if all employees would endeavor to carry out the following suggestions, viz. : 1. Don't use power longer than is absolutely necessary. Throw off power when full speed is attained and coast the rest of the distance. 2. Get off the resistance notches as quickly as possible, without rushing the notches, onto full series or full parallel. Never run on parallel unless you can take full advantage of the last notch. It is simply wasting power to throw off on the first or second parallel notches. The resistances have used up the most of it; the motors have only got a fraction of the power consumed. The same work could have been done with series at half the cost. 3. When starting from a station on a decline, release the brakes and allow the car to start on its own stored energy. 4. Run on series between Castle Street and Market Street and vice versa unless pressed for time. 5. Always endeavor to let the car in front have a 15-yd. start before notching up, particularly after the power has been cut off for a time. 6. Report at once any cars with hand brakes too tightly adjusted or any other defects. 7. Try to save at least one unit a day. It is a step in the right direction and is helping to win the war. Conductors can assist the motormen materially in saving power by observing the following rules: 1. Call the name of the station when at least 50 yd. dis- tant in order to give passengers time to get onto the plat- form before car stops and promptly bell the motorman if there is to be a stop or not. 2. Keep a sharp lookout for intending passengers. 3. Endeavor as far as possible not to have a second stop once the car is started. This can be best done by observing rules Nos. 1 and 2. 4. Keep the platform clear as far as possible. Don't have passengers standing on platform if there is room inside or upstairs. It obstructs the view of the motorman and is liable to cause accidents and delays when passengers are getting on and off. By observing these rules you will help your motorman to "save a unit a day." A return showing the number of units consumed daily will be posted every forenoon in the muster room. Following the issue of this circular, the following savings were obtained week by week compared with the same weeks of the preceding year: First week, 3000 kw.-hr. ; second week, 5000 kw.-hr. ; third week, 4900 kw.-hr. ; fourth week, 2900 kw.-hr. As the average energy consumption for the fiscal year ended May 31, 1918, was 54,000 kw.-hr. a week, it is obvious that this appeal was effective. On a money basis, the average sav- ing of 3950 kw.-hr. per week at 0.9 17d. per kw.-hr. was $72. The record of saving is the more noteworthy be» cause travel had increased more than 150,000 a week equal to 20 per cent as compared with the preceding year. In discussing follow-up practices, Mr. Forbes ex- pressed the opinion that it was unwise to spur on the men unless the management was certain that savings could be augmented. It was also good policy to make the appeal at the time when coal saving was uppermost in the minds of all. He estimated that the checking de- vices were good for at least 15 per cent saving in energy £•lbcv^ccll (lorpovation ^vain\va\:s. • CURRENT CONSUMPTION SHiEET. Meter Readings for ^yi^J^ / rfoy ^i^Tf^^vi^-t— rfafc', Dlf RuL'TF.. Cah UM-tS. RorrB, No. Bridges . 42 43 44 45 1^1 fJC Circular Queen's Cross 31 33 35 30 /or Woodside 72 73 74 ' Hi Tony 12 13 ^55 56 M-J "1 lif I'l 24 61 ^'2 26 ^7 vc vr Remarks ; Signature , CURRENT CONSUMPTION SHEET USED IN ABERDEEN as compared with no devices and instruction. They had a further value in promoting better driving of the car, thus saving the equipment and efl'ecting a reduc- tion in accidents. The total number of ampere-hour meters in use at Aberdeen is eighty-four, and they are installed on both passenger and service cars. A meter card of the type reproduced is carried in every car. This record identi- fies the date, car number, route, successive totalized readings of the meter and separate readings of the kilowatt-hours used on the first and second shifts by the respective motormen. Thus it will be seen that there is one card per car instead of one card per motor- man. These records t,re transferred to a daily "Current Consumption" sheet by the carhouse foreman, following which the records go to headquarters for transcription to a sheet covering the day-by-day records for the whole system by full weeks. The men are asked to give, and do give their best services without the offer of individual bonuses. The fact that they are organized does not deter them from 524 Electric Railway Journal Vol. 54, No. li trying to run the cars as economically and safely as they can. It is simply a matter of good management to see that they do not lapse into unconscious negligence, From the mechanical and electrical standpoints the meters have given little trouble. A deviation of 5 per cent from perfection, fast or slow, is held permissible. The instruments in fact have required very few repairs UNITS PER CAR MILE. R.C.T. Date, /l/^ fii/^ /nf _ . CAR No o. w. o. L. B. L EC. W. c. w E,W S.J. B E CAR No. 0 w 0 L. B. L. EC. W. C w E.W, SJ. B E, 1 19 2 20 3 / M 21 4 22 / /3 DATE^//y'/# WIETER READINGS. CAR No. ^ REPORT FORM FOR UNITS PER CAR-MILE, READING CORPORATION TRAMWAYS aside from the replacement of a few brass wheels. Cleaning and tests are carried out only when the records indicate that not the men but the meter is at fault. • Nine Years' Service to Date at Reading The Reading Corporation Tramways was only one year after Aberdeen in taking up the C-H ampere-hour meter, the installation being made in 1910. All of the thirty-six cars in service are equipped. The meters were sold originally on the basis of having the makers take care of all repairs and calibration for a period of seven j'ears. Owing to war conditions, it was not practicable for the makers to renew this agreement. With the end- ing of the war, however, the meters were sent to them for a general overhauling. Five per cent variation up or down is held to be reasonable inasmuch as these , meters do not have to be so exact as a house meter, for example, whose readings are the basis of a monthly in- voice. The sav- ings due to the use of this checking device are estimated at 15 per cent. The men are unionized, but consider the use of a meter a matter of course. No awards are giv- en specifically for good meter records, but every motorman who has a satisfactory general service record receives 10s. ($2.40) every three months, or 20s. extra at end of the fourth quarter of the year, if he has a continuously good record. The average energy consumption during the fiscal year ending March 31, 1918, was 1.52 kw.-hr. per car-mile. Two accompanying forms show the character of meter reading record kept on the car by successive motormen during the day and the assembly for all cars on all lines made up day by day from the car records. Motornian's Nam© On From Car To M eter Reading OFF _0_ 0 JL z u a Checked U Meter Reading IN Checked ,, OUT 0 0 / s 0 T llg MILES RUN 7 \\ Car is Changed slalc CD back "f Ibis Shpol — Time and Place Cnr Changed. No. cf New Car. eTIME and PLACE Car Any Remarks regarding this Meter may be entered on back of sljcct and .luvist be- iiencd by METER RECORD, READING CORPORA- TION TRAMWAYS As suggested earlier, the Croydon Corporation Tram- ways were early users of electric energy meters, all the cars at Croydon being equipped since 1910 with a total of seventy-five C-H ampere-hour meters. The matter of maintenance has hardly been a factor, since not more than one or two meters are in the repair shops at any one time. Excellent results have been obtained without the use of a bonus system. To use Mr. Goodyer's own expres- sion: "Pots of money have been saved by these de- vices." In money, the total saving from March, 1910, to March, 1916, was about £27,000 ($129,600). Of course this saving means that the installation, upkeep and record-keeping cost of the ampere-hour meters has been recouped many times over. The previous average energy consumption of 1.281 kw.hr. per car-mile was lowered by 20 per cent. That Mr. Goodyer has kept in constant touch with the energy-saving problem appears from such detailed records as Tables I and II which show, in detail, the TABLE 1— CONSUMPTION OF ELECTRICAL ENERGYjIN KILOWATT- HOURS PER CAR-MILE AND SAVINGS TO DATE RESULTING FROM THE INSTALLATION OF AMPERE-HOUR METERS, CROYDON CORPORATION TRAMWAYS Kilowatt- Hours Date February, 1910 March, 1910... March, 1911... March, 1912. . . March, 1913.. . March, 1914.. . March, 1915.. . March 3, 1916. per Car-Mile Savings 1.29 1.281 £85- 8-0 0.976 4,984-18-3 0.929 806-15-2 0.938 0.027 1.071 1.089 Gross Savings If Taken on Basis of 1 . 28 Savings Kw.-Hr. per to Date Car-Mile £85-8- 0 £85- 8-0 5,870-6- 3 4,984-18-3 6,677-1- 5 5,594-0-10 6,677-1- 5 5,695- 3-0 6,677-1- 5 4,628-13-4 6,677-1- 5 3,720- 0-0 6,677-1- 5 2,613- 7-6 £6,677-1- -5 £27,321-10-1 TABLE II— CONSUMPTION OF ELECTRICAL ENERGY PER CAR MILE, CROYDON CORPORATION TRAMWAYS Kilowatt-Hours per Car-Mile April 1, 1909, to Feb. 21, 1910 1 . 29 .\verage results on one car metered for one week, equivalent to £21-2-10 0.87 Weekly saving when twenty-four cars were metered: March 18, 1910 £12-13-0 March 25, 1910 30- 1-0 March 31,1910 42- 4-0 Total saving for three weeks £85- 8-0 Seventy-five cars equipped with meters by September, 1910: Kilowatt-Hours .Average per mile, year ended March 31, 1911 0.976 Average per mile, year ended March 31, 1912 .' . . . 0.929 Average per mile, year ended March 3 1 , 1913 0.038 (I) Average per mile, year ended March 31, 1914 1.027 (2) Average per mile, year ended March 31, 1915 1.071 (3) Average per mile, year ended March 8, 1916 1.089 (4) Notes: 1 and 2 are due to motor-bus competition, stopping between stopping places to take up passengers and increasing vehicular congestion. _ 1 , 2, 3 and4 — same causes, plus many new motormen, darkened streets, time of journey length- ened and less cars with more stops to take up and set down passengers; also unusual snowstorms. energy and money savings from 1910 to 1916. It will be noted that the energy consumption has not remained at the original low level. This is due partly to war con- ditions, such as presence of a large proportion of new men, to the darkening of the streets for air-raid protec- tion and to omnibus competition which adds to street congestion. With the return of normal conditions, the savings should reach their former high level. The saving in brakeshoe wear is 26 per cent. As a guide to the motormen and their instructors, Mr. Goodyer prepared a booklet which tells exactly how to manipulate the controller over each part of the dif- ferent routes according to traffic conditions. In filling out the meter card in the car, succeeding motormen are expected to check one another's readings at once to avoid disputes. The last reading of the day is not September 13, 1919 Electric Railway Journal 525 entered by the motorman but by the depot inspector who does so under the eye of the motorman. The meter readings are afterward segregated according to routes and types of cars as shown. The averages for each day of every week are also recorded. In addition to the testimony from individual city systems the British Electric Traction Company, which controls some thirty tramway systems, considers the use of energy-saving devices as a matter of course. Accord- ing to an official of that company the most generally used instrument on that property is the ampere-hour meter, then follows the watt-hour meter and, to a very small extent, the current-time clock brought from Ger- many about ten years ago. This same official added that it had been extremely difficult to get full value out of any checking device during the war because of the tre- mendous shifting of personnel and the loss of many experienced motormen. Of course, with the return of peace the situation will be greatly improved. Car Meter Tests at Glasgow Although the Glasgow Corporation Tramways gen- erate their own power at a comfortably low rate, the management has determined to look into the matter of meters on the cars. To this end a series of tests Facsimile of Weekly Consumption Sheet. CKOYDON CORPORATION TRAMWAYS. Weekly Average Current Consumption. Route ll'ccA- ending TYPES OF CARS. 13t 35 A Boglo B Westlnghouse C ..IQ.. Exiracted by -I— I T. B. GOODYER, Tramways Manager. CONSUMPTION SHEET USED BY CROYDON CORPORATION TRAMWAYS was begun on Oct. 14, 1918. Three cars, all of double- deck type and similar in other respects were fitted with C-H ampere-hour meters and run in like service over the Maryhill line, which is a purely city route. These cars were put in charge of motormen and motoresses selected for knovra ability ; and then in charge of operators taken at random. In all cases, no special instruction was given but the operators were advised of the purpose of the meters. Hence the results may be ascribed to the moral influence of a checking device and to the desire of the car operators to do all they could, as individuals, to save coal. The results of these tests may be coiisidered ex- tremely gratifying, for many of the operators showed results below that of the average kilowatt-hours per car-mile of the entire system after making due allow- ance for lighting, which is not considered in the tests. The best motorman achieved the figure of 0.89 kw-hr. per car-mile, which is amazing in view of the fact that these cars weigh 24,260 lb. empty and may carry sixty- two seated and six standing passengers exclusive of the crew. The Shawlands-Maryhill line on which the runs were conducted is 6.06 miles long, with headways of two and three minutes and a schedule speed of 7.45 m.p.h. The accompanying Tables III and IV show the average and total energy consumption for given weeks and sample records on the test cars. These particular results are selected to show the uniformity of results secured by specially-skilled operators on a given car, the uniformity of results secured by unselected operators, and the range in the energy consumption on the test cars. TABLE III— ENERGY CONSUMPTION, INCLUDING LIGHTING GLASGOW CORPORATION TRAMWAYS Traction Kilowatt-Hours Week Ending Car-Miles Kilowatt-Hours Per Car-Mile Oct. 12 483,034 690,593 1.430 Oct. 19 478,498 584,676 1.430 Oct. 26 508.559 706,400 1.389 Nov. 2 475,184 671,090 1.412 Nov. 9 465,521 649,853 1.396 Nov. 16 452,202 638,574 1.412 Nov. 23 456,585 687,851 1.506 Nov. 30 452,741 662,362 1.463 TABLE IV— ENERGY CONSUMPTION SHOWN WITH THE SAME TYPES OF CARS BY DIFFERENT OPERATORS ON THE SHAWLANDS-MARYHILL LINE, GLASGOW CORPORATION TRAMWAYS Car No. 265 — Driven by Selected Operators Kilwatt- Kilowatt-Hours Date Hours Miles per Car-Mile Operators Oct. 14 108,8 121 0.89 1 Oct. 15 113.6 121 0.93 Oct. 16 113.8 121 0.94 Livingston and McLean Oct. 17 108.6 121 0.89 Oct. 18 108.2 121 0.89 Oct. 19 109.7 121 0.906 Car No. 266 — Operators Not Selected Oct. 14 151. 1 121 1.24 Mulhearn, George Oct. 15 145.4 121 1.201 S. O'Hara, W. J. Stewart Oct. 16 148.4 121 1.22 R. Ross, D. McLeod Oct. 17 146. 1 121 1 .207 J. Friel, R. Christie Oct. 18 145.9 121 1 .205 M. Stewart, D. McCann Oct. 19 153.5 122 1.20 J. Muir, H. Borland At the request of the editors of this paper the firm of Ferranti, Ltd., has supplied a list of the thirty-one municipal and eleven corporation tramways in Great Britain which use meters of its make." Chamberlain & Hookham, Ltd., have also furnished a list of ninety-one cities, including several outside the British Isles, in which the C-H meters are used.' Coasting Still Possible on Tube Lines Despite Astounding Increases in Traffic One of the best testimonials to the value of a check- ing device on cars is afforded by the experience of the London Underground Electric Railways with the Rico coasting recorder. These recorders are installed on the three "tube" lines, to wit, the Bakerloo, Piccadilly and Hampstead lines, and also on the Central London under- ^The Ferranti list is sub-divided thus : Municipal Corporations — ^Manchester, Maidstone, Luton, Llan- dudno, Leicester, Yarmouth, Swansea, Stockport, Southport, Soutli- end, St. Helens, Plymouth, Peterborough, Paisley, Nottingham, Norwich, Newcastle, Nelson, Blackpool, Leith, Oldham, Devonport. Bari'ow, Barnsley, Ashton-u-Lyne, Ayr, Dumferline, Dumbarton, Dartford, Burton-on-Trent, Exeter. Private Corporations. — Merthyr Tydfil Electric Traction & Lighting Company, Ltd. ; Llanelly & District Lighting & Traction Company, Ltd. ; Greenock & Port Glasgow Tramways : South Ijancashire Electric Tramways ; Yorkshire (Woolen District) Electric Tramways, Ltd. ; Oldham, Ashton & Hyde Electric Tramways ; South Metropolitan Electric Light & Tramways Com- pany ; Blackpool, St. Annes & Lytham Tramways ; Potteries Electric Traction Company, Ltd. ; Mexborough & Swinton Electric Tramways ; Colne & Trawden Light Railway. '^The Chamberlain and Hookham list is as follows : Huddersfleld. Bournemouth, Dover, Hastings, Lowestoft, Wallasey, Waltham- stow, Wemyss, Wolverhampton, Rochdale, Brighton, Birmingham Corporation, ISirmingham Midland Tramways, Gloucester, Co- ventry, Derby, Swindon, Warrington, Wigan, Colchester, Leyton, South Shields, Aberdeen, Croydon, Burton, Bradford, Dublin, Belfast, Jarrow, Yorkshire E. T. Co., Sunderland, Reading, Dun- dee, Dundee and Broughty, Kirkcaldy, Cork, Greenock, New- castle, Hull, York, Warrington, Preston, Lancaster, Black- pool,-Ayr, Leith, Rotherham, Sheffield, Darwen, Salford, Luton, Rawtenstall, Carn Brea, Ilkeston, Cheltenham, Victoria (Aus- tralia), West Ham, Newport, Bombay, Dunfermline, Edinburgh, Torquay, Ferry, La Plata, Halifax, Musselburgh, Keighley, Cardiff, Pontypridd, Paisley, Lanarkshire, Liverpool, Buenos Ayres, Doncaster, Gateshead, Tynemouth, Gravesend, Glas- gow, London County Council, Ilford, Nottingham, Kilmarnock, Perth, Athens, City of Santos, Manchester, Accrington. 526 Electric Railway Journal Vol. 54, No. 11 TABLE V— COASTING RECORDS FOR FOUR WEEKS ENDING JAN. 29 PICCADILLY LINE, LONDON ELECTRIC RAILWAY Average — Positions for Months Ending Key Coasting, Jan. 29 Jan. 1 Dec. 4 Nov. 6 Oct. 9 Sept. 14 Number Percent. 32.3% 31.4% 33.8% 35.0% 36.2% 35.8% P 28 46 8 1 54 54 32 4 7 P58 40 '2 2 5 13 20 19 13 p;3o 39.4 3 34 19 24 12 19 P.39 39.0 4 4 23 42 40 32 P.64 39.0 5 7 3 2 1 1 P.40 38.6 6 9 10 6 3 9 P.70 32 . 3Average for 35 24 39 34 18 31 P.32 32.3 Piccadilly 36 39 45 35 32 41 P.5I 26.0 64 47 56 53 37 50 P. 42 25.9 65 53 53 46 26 25 P.23 24.0 66 65 67 55 54 25 P.76 23.7 67 68 71 68 69 69 P. 20 57 66 64 68 60 P.50 ground line. All of these lines have had to take care during the war period of enormous increases in traffic without any increase in the number of cars available and v.'ith no decrease in schedule speeds. Furthermore, a large proportion of the motonnen have been green hands and many of the conductors or guards have been women in railway service for the first time. Even with such handicaps, the use of the coasting recorders has gone on uninterruptedly and appreciable savings are still being made although the opportunities to do so were less. The interest of the men is largely maintained by the posting of the records and the granting of a bonus. In- stead of posting the records by names, however, key letters and numbers are used. For example, B-1 for a Bakerloo man, P-3 for Piccadilly and so on. This is believed to take the sting of unnecessary humiliation out of the postings so far as the management is con- cerned, while it does not injure the spirit of rivalry since each man on a given line knows very well who has a certain number. On the three "tube" lines the minimum coasting per- centage set as an eflliciency indicator is 24.5 per cent. The average early in 1919 was 30.5 per cent, the men on these lines ranging as follows: Bakerloo from 43.3 to 28.8, Piccadilly from 39 to 24 and Hampstead from 45 to 24.9. The profile of the Central London Railway is so unfavorable, including up-grades at stations, that the coasting ranges only between 21.7 and 15.7 per cent. The practice of giving bonuses to motormen upon the basis of their skill as individuals was in vogue only a very short time because it was unsatisfactory to the men. The men are rewarded equally according to the general average percentage of the coasting on all the lines. For every 1 per cert coasting over the base of 24.5 per cent, each man on the line receives Id. (2 cents) a week calculated to the nearest id. Hence the present bonus for all of the men is 6 to Qid. (12 to 13 cents) weekly.^ The average energy consumption on the three tube lines is 2.3 kw.-hr. per car-mile based upon the use of fifty-seat cars averaging 22 English tons (2240 lb.) each and operated at the following schedule speeds: Baker- loo, 16.5 m.p.h., Piccadilly, 17.78 m.p.h. (local) and 19 in.p.h. (express). The Central London Railway aver- ages 1.6 kw.-hr. per car-mile at a schedule speed of 15.45 m.p.h. with 17-ton (average weight) cars run in trains of two motors and three or four trailers, and one motor and two trailers. Sample data for the Piccadilly line are given in Table V. These show the ratings of a number of men for four weeks ended Jan. 29, with their positions in the lists for several preceding four-week periods. ^In translating from English to American money the pound sterling has been assumed to be worth $4.80. What Is the Proper Length for Trolley Feeder Taps? By C. F. Lloyd Manager Substation Section Power Department Westinghouse Electric & Manufacturing Company A ROTARY converter or direct-current generator tends to "buck" or flash over if short-circuited. Short-circuits on the line produce much less tendency to cause the machines in the substation or power station to flash over if the taps are made some distance from the source of power. Possibly 75 per cent and per- haps even 90 per cent of the flashing nuisance is trace- able to the placing of the feeder taps too close to the station. The question which naturally arises is as to the fixing of the tap distance from the machine. Unfortunately no general rule has been advanced on this point. So many variables enter into the solution of the problem that it will prove best to solve each case by removing the "close-in" taps until the resistance of the circuit becomes great enough to cushion a short-circuit and protect the machines. The principal variables which enter into the deter- mination of tap distance are as follows: 1. Power capacity behind the rotary converter. Ob- viously, for a given size of converter, the greater the capacity at the source of generation the greater will be the damage to the converter in case of trouble. 2. Capacity of converting apparatus. The larger the converting apparatus the less sensitive it is to di- rect-current line troubles. 3. Voltage of the system. The lower the voltage the nearer the taps can be placed to the machine^ In general on a given system the tap distances for 1200- volt service Should be at least twice those for 600-volt service. 4. Size of feeders. The larger the feeders the far- ther the taps should be from the machine. 5. Disposition of feeders. When possible feeders should be so arranged that each will carry a reasonable proportion of the station output. If one feeder car- ries a disproportionately great amount of power any trouble on it will react on the entire substation. 6. Size of rails. The heavier the rails the greater should be the tap distances. 7. Bonding. Broken bonds and poor ground con- nections have been known to produce flash-overs, al- though not frequently. Obviously, the bonding has a direct bearing on proper tap distances. 8. Size of cars. With a given substation unit, the heavier the car equipment and the larger the motor rating, the greater will be the drag on the substation equipment and the more destructive the effect of motor troubles. The rating of the car equipment has, there- fore, a bearing on the tap distance, especially when the substation units are relatively small. From the foregoing it is evident that to evolve a formula to cover such a diversity of conditions would prove to be a problem, and the result, until proved, could not be accepted as much more reliable than a guess. In general, experience has shovra that on 600- volt systems, the first tap should be not nearer the machine than 3500 ft. and on 1200-volt systems, 5000 ft. The line losses due to the tap distances are of little consequence when compared to the loss caused by flash-overs, including the time and expense involved in cleaning up the damaged apparatus. September 13, 1919 Electric Railway Journal 527 Amalgamated Meets at Chicago In His Presidential Address, Delivered Sept. 9, Mr, Mahon Discussed Wages, Hours of Labor, Agreements, One-Man Car.« and Other Live Topics of the Day — Other Business Dispatched During First Three Sessions THE Amalgamated Association of Street & Elec- tric Railway Employees of America opened its sixteenth convention at 10 a.m., Sept. 8. The meetings were held at the Ashland Boulevard auditori-. um of local division No. 241 of the Chicago Surface Lines. At the open meeting on Monday forenoon the convention was addressed among others by the presi- dent of the Illinois Federation of Labor, by a repre- sentative for the president of the Chicago Federation of Labor, and by the prosecuting attorney of the city of Chicago, representing Mayor Thompson. Each of these men welcomed the Amalgamated Association to Chicago. The prosecuting attorney in his welcome classed the electric railway industry as a necessity of life. He said: "How far could Chicago, or any other city, progress without the street railway?" Further he said that the great enemy of the United States today is not any foreign country, but the present unrest and tendency toward bolshevism within our own confines. The only solution, he said, is for the employer and employees to get together in brotherly love and fairness. International President W. D. Mahon, of the Amal- gamated Association, in his opening address said that the Amalgamated . Association is now welcomed by governors and their representatives and mayors and their representatives. This was not always so, he said. Years ago the association just came and planted itself down either for a convention or organization. This, he said, demonstrates the fact that if the laborer wishes recognition and welcome, he must demand it and not wait for it to be extended to him. Mr. Mahon said that the conditions of this reconstruction period will not approximate those of the days following the civil war. Labor unions were at that time abandoned and neglected by those who went into service, and the worker returning from the war had to fight his own battles as an individual. Today, the soldier returns to his work, and his association will fight his battles for him. The Amalgamated Association sent more than 12,000 members into the service, and more than 6000 of them have returned and have received higher wages. The worker will not face the dark period following the civil war, and if he faces any dark period, he will not face it alone. The Amalgamated Association, President Mahon said, comes to its sixteenth convention in the best condi- tion in the history of the association. Mr. Mahon announced that Samuel Gompers, presi- dent of the American Federation of Labor, would ad- dress the convention of the Amalgamated Association on Saturday morning, Sept. 13. Practically all of the afternoon of Monday, Sept. 8, was devoted to the examination of the credentials of the delegates assembled and the presentation to them of badges. These badges will not only give them admittance to the floor in all meetings but will also permit them to ride free of charge at any time during the convention week on. any surface or elevated car in Chicago. Visitors accompanying delegates were also given a badge which will admit them to the gallery of the auditorium and which will also serve as free trans- portation for them. On Monday evening before adjournment programs for the remainder of the week were handed out. Accom- panying the programs were a free ticket to the Majestic Theatre for Monday evening, a free ticket to a 50-mile automobile sight-seeing ride through the connecting boulevards and parks of Chicago, including a free luncheon at Riverview Park, and a free ticket to the banquet to be held on Thursday evening at the Morrison Hotel. The committees to report later during the sessions were appointed on Monday afternoon. Address of President Mahon Practically all of Tuesday forenoon, Sept. 9, was devoted to the presidential address of International President W. D. Mahon. The main subjects covered in this address were wages, hours, agreements, arbitra- tion, mediation, strikes and lockouts, appeals and one- man cars. Wages — With reference to wages. President Mahon outlined the conditions which have developed since the last convention and described what has been accom- plished. As a result of the high cost of living, due to war conditions, the International Association appealed to the War Labor Board to consider the wages of electric railway employees. The decision of the board to hear these cases created an enormous amount of work for the International Association, but delays in the cases Mr. Mahon said were due to the railway company's asking for more time or to the municipali- ties or the War Labor Board itself. After study, the Board granted very substantial increases, said Mr. Mahon. Canada, however, did not secure such sub- stantial and satisfactory decisions as were secured in the United States. Unfortunately, the cost of living since the spring of 1918, when the Board made its deci- sion continued to increase steadily, and it was soon found that the wages established at that time were not sufficient. Accordingly, many local divisions had to go before the Board a second time and insist on further increases to correspond with the increased cost of living. The majority of the railway companies agreed that the wages paid to the employees were not sufficient but took the position that due to the low fares they could not raise wages. This placed the men in a serious position but they were compelled to insist on higher wages, pointing out the reasons for this necessity. In most cases the association was able to convince the War Labor Board of the justice of its demands. At this point Mr. Mahon stated that "no man can ever show where the Amalgamated Association ever entered into an illegal or unjust act." 528 Electric Railway Journal Vol. 54, No. 11 Hours — During the war no attempt was made to shorten the hours of electric railway employees. When the war was over, however, it became necessary to take up the question of shorter hours. The spirit of some of the members is to oppose the eight-hour day because it prevents them from making as much money as for- merly. These members, however, said President Mahon, must come to the conclusion that they as a small minority must give up the custom of working them- selves to death to the detriment not only of themselves but of the large majority. Other industries have had the eight-hour day for years and the time has now come for the street railway men to demand the same. The principle that should be adopted is the greatest good for the largest number. Agreements — In the matter of agreements, President Mahon said that the policy of the association to secure written contracts has been followed with satisfaction as in the past. At the present time the total number of written contracts is approximately 400. The writ- ten contract he said is the best contribution to the success of the organization. Arbitration — Since the last convention there has been more arbitration than ever before in the history of the Amalgamated Association. Every case before the War Labor Board has been an arbitration case. There were a total of 134 cases submitted to the War Labor Board affecting employees of 148 electric railway com- panies. In forty-two cases the War Labor Board decided that it had no jurisdiction. This was chiefly due to the fact that the War Labor Board was originally created for the purpose of dealing with industries affecting the manufacture of munitions and other war supplies. There have been sixty cases of local arbitra- tion in addition to those handled by the War Labor Board. Strikes and Lockouts — Mr. Mahon came out very forcefully on the subject of strikes and lockouts. The spirit on the part of some of the membership he said has been to disregard entirely the laws of the Amal- gamated Association. "I wish to remind you," said President Mahon, "that the integrity of the organiza- tion is sacred and if contracts are disregarded and the laws of the association are cast aside, we cannot ask anyone to have confidence in the organization." It was recommended that the local divisions carefully study the laws and if a division acts in violation of the laws of the national association, that division shall be de- prived of its membership. "This may seem to be a drastic step," said President Mahon, "but will cause many divisions to think twice before they finally determine to go on strike." Appeals — Thirty-five appeals from local divisions have been sustained by the International Association and four- teen refused. President Mahon recommends that more care be taken in trying to settle these cases without bringing them to the attention of the International Association. Members in War — During the war the Amalgamated Association made such provision that the membership fees of those who entered the service were considered paid while the members remained in service. When these men returned they were placed back in good standing. The number reporting as answering mili- tary service was 11,157 and over 6000 of these have so far returned. In practically all cases these men have been given their seniority standing by the railway company. Laws — The continued growth of the Amalgamated Association makes it necessary that there should be more international officers. The present staff of vice- presidents consists of ten. President Mahon recom- mended that this number be increased to fourteen. Salary of Officers — According to President Mahon the international officers of the Amalgamated Asso- ciation have been underpaid as the result of the high cost of living. It was recommended that the laws De changed to cover these increased expenses. There has been some criticism of salaries of international officers, but upon careful investigation it is apparent that the officers of the Amalgamated Association are about the lowest paid of any officers of international labor or- ganizations. Initiation — The initiation fee to the Amalgamated Association has in the past been $1, 25 cents of which goes to the International Association and the remainder to the local division. President Mahon recommends that the initiation fee be increased to $2, $1 of which shall go to the International Association. Laws Relating to Officers of Local Division — It has been called to the attention of the International officers that some division officers whose duty is to collect dues, etc., for the Amalgamated Association, have been taking advantage of this position to act as collectors also for other societies, associations and company benefit organizations. President Mahon recommends that this practice shall not be continued and that any man who represents the Amalgamated Association cannot also represent any other benefit association. One-Man Cars — The instructions of the previous con- vention were that definite action should be taken against the one-man car. The international officers tried to carry out these instructions but found that the ques- tion was a greater one than at first had been supposed. Careful investigation was made and as a result of this the best policy appeared to be to insist on an increase in wages for the operator of the one-man car and not to etand out against the use of this equipment. It is now reported that there are 2004 one-man cars in operation on eighty-nine different properties. President Mahon stated that in his opinion the one-man car had come to stay and that the association could not hope to over- come it. The best policy he said is to recognize the one-man car as a necessity to the electric railway in- dustry and to demand higher wages for operators of this equipment. The president's address was referred to the commit- tee on president's address for a later report. On Tuesday afternoon delegates and guests enjoyed an automobile tour of the boulevard and park system of Chicago. A 50-mile ride through the connecting boulevards and parks and to the Municipal Pier ended at Riverview Park, where luncheon was served. Con- cession privileges were furnished delegates and guests to participate in the Mardi Gras carnival at River- view Park and special cars conveyed the party to the loop late in the evening. On Wednesday the entire day was devoted to a report of the executive committee and reports on actions taken on appeals to the International Association from local divisions. September 13, 1919 Electric Railway Journal 529 Economic Future of Transportation Utilities "Are We Entering a New Epoch of Economic Relationship as Between Public, Labor, Investor and Ultimate Consumer?" — Symposium Presented at Western Society of Engineers' Meeting AT ITS OPENING meeting on Monday, Sept. 8, fol- ZA lowing the summer recess, the Western Society J- \~ of Engineers, Chicago, took the above as its sub- ject, the program for the evening taking the form of a symposium of four papers on the following sub-topics : "Introduction and Historical," by James R. Bibbins, engineer, the Arnold Company, Chicago; "Valuation and Accruing Depreciation," by P. J. Kealy; "The Actuarial Problem," by W. J. Hagenah, of Hagenah & Erickson, Chicago; and "Electric Railway Policy," by George Weston. Mr. Kealy was unable to be present but forwarded his paper and it was read by E. S. Nethercut, secretary of the society. W. J. Hagenah was also unable to be present and the paper on the sub- ject assigned to him was prepared and presented by John Jirgal, accountant of the same firm. Abstracts of the papers by Messrs. Kealy and Weston appear be- low. The papers prepared by Messrs. Bibbins and Jirgal will appear in abstract in a later issue. At the close of his paper Mr. Weston read at length from the report of the valuation committee of the American Electric Railway Association. This report appeared in quite full abstract in the August 2, 1919, issue of the Electric Railway Journal. Electric Railway Policy By George Weston Consulting Engineer. Philadelphia (Pa.) Rapid Transit Company WITH respect to the present general financial situ- ation of electric railway properties in the United States and the attitude that they can take as to various means for relief, the first and most important matter is the question of cordial and satisfactory working rela- tions between employer and employee — usually referred to as industrial democracy or co-operation. This brings up the question of whether industrial democracy can supplant collective bargaining. First, collective bargaining does not conflict in any- way with the successful operation of a proper co-opera- tive plan. And there can be no question but that the day has arrived when labor, through some co-operative plan wherein the rights of the general public will be fully guarded and protected, must be raised to a posi- tion of more direct participation in the management of operating conditions that affect their personal welfare and enabling them to participate more fully in the equitable distribution of the earnings which they help to produce. When labor is made a working, participating partner in the business, it must assume its portion of the bur- dens, responsibilities and obligations, and positive pro- visions should be made in any plan for serious considera- tion that will prevent strikes on public utilities and insure to the general public continuity of service at all times. The abolition of the strike is one of the most important problem in the public utility situation today. Strikes like wars should be abolished. Why send the flower of our young manhood to Europe to offer up their lives and spend billions of money to help democratize the world and establish peaceful arbitration between nations as a substitute for wars, and tolerate the ex- istence of a system of warfare between different ele- ments of our own social organization in the way of strikes. Wars were necessary to civilize the world and similarly, probably, strikes were necessary to bring Capital to realize that Labor is its chief ally. The "plan for collective bargaining and co-operative welfare" of the Philadelphia Rapid Transit Company offers an excellent example of real co-operation between the management and the employees. [The latest plan was described in two articles in the Electric Railway Journal, one in the issue of Sept. 14, 1918 and the other in the issue of Dec. 28, 1918. As typical evidence of the feeling existing be- tween management and employees in Philadelphia, the author quoted part of a clipping from a Philadelphia paper telling about a "Welfare" picnic and a dinner given by Mr. Mitten to the co-operative plan committee- men which was attended by the chairmen of the Federal Electric Railways Commission and the Pennsylvania Public Utilities Commission. An account of these same events appears on page 537. — Eds.] The Stotesbury-Mitten management adopted the co- operative plan in August, 1911, and it was accepted by a vote of the men in November of the same year. In a statement based on eight years' experience with the plan, Mr. Mitten in February, 1919, told of the organi- zation of the fifty-two sub-companies into a single unit to form the Philadelphia Rapid Transit Company in 1902 and how in 1910 the company found itself with credit exhausted and with earnings insufficient longer to pay its fixed charges and operating costs. The car riders and business interests were suffering from the strikes of that year and preceding years and labor was threatening further disturbances. The service was bad and the cars antiquated. Then at the urgent request of the city government and the stockholders, the company undertook as a public duty, the rehabilitation of the system, promising to meet the needs of the car riders, increase the wages of the men and then pay to the stockholders such return as could be made possible by good management and co-operative efficiency. The results obtained are evidence of what can be accomplished by co-operation between the men and the management. Every promise of the management is here shown to have been faithfully fulfilled. The num- ber of passengers carried increased during the eight years 70 per cent. The average fare was lowered from 4.13 cents per passenger in 1910 to 3.91 cents in 1917 by granting additional free transfers. Wages increased from 23 cents an hour in 1910 to 48 cents in 1918. Dividends paid include one of 2 per cent in 1916 and 5 per cent in 1917 and 1918. It will be observed that the co-operative plan has been in process of development in Philadelphia for a. 530 Electric Railway Journal Vol. 54, No. 11 period of nine years, and it must be apparent that such radical reforms cannot be instituted overnight. The lesson to be learned by the Philadelphia example is that every employee should give a full day's work for a fair day's pay; that maximum wages mean maximum output; that economy of time, effort and energy is the price of commercial success ; that we must not expect to get something for nothing. Capital and labor should work together. United they will stand, divided they must fall. The employee who through a reasonable probation period has proven him- self worthy to become a permanent employee, should be taken into the fold and made to feel that he is a real part of the working organization; that he must assume his portion of the burdens and obligations, and if he is to participate in the successes and profits, he must also stand his portion of the failures and losses likewise whenever they occur. Valuation and Accruing Depreciation By Philip J. Kealy President Kansas (Mo.) City Railways THE street railway industry of the United has passed through a most depressing period, but present indications are that the worst is over. One of the most hopeful signs to-day is the fact that the prob- lem has ceased to be one only of local significance and has become national. Commissions have speeded up their action. The public has become aware of the seri- ousness of local transportation needs, which in some instances threaten the very continuation of service. The appointment of the Federal Electric Railways Commission to investigate the needs of urban transpor- tation and to make recommendations has served to crystalize the entire matter into national form. Through the activities of the American Electric Rail- way Association and the Committee of One Hundred in Washington, the entire question" has been presented to this commission from a nation-wide standpoint. The national Chamber of Commerce has also taken up the question. The public mind has been educated to the needs of our urban transportation companies until in every community the necessity for some solution is now recognized. All of these things working together open the way for placing the entire industry in every community upon a stable basis that justifies the belief that its future will be worked out in a manner acceptable to the in- vestors and to the public. In my mind the ultimate solution will be private operation and ownership with municipal supervision of service based upon the cost-of-service principle, which necessarily will include a fair return to capital actually and honestly invested in the public service. The cost- of-service plan primarily turns upon two fundamentals : First, that the car rider shall pay only for transpor- tation; second, that inasmuch as one element of the cost to produce is a fixed return upon capital value, that such capital value be determined and agreed upon between the company and the municipality. To some extent, from the standpoint of valuation, the doors of the past have been closed, and the entire trans- portation problem is in a fair way to be put upon a present and a future basis. The valuation cycle has progressed far enough so we can be at least hopeful that the standards in many cases being adopted, and which include the points developed in the recent report of the Valuation Committee of the American Electric Railway Association, will govern the majority of future valuation proceedings. Although the whole question of valuation is complex, its basis of common honesty and fair dealing is becoming universally recognized. We have traveled a long way from the principles established in the beginning by the Wisconsin Commission, where valuations for rate miaking purposes were made on the depreciated physical value plus some additional allow- ance for a going concern. The trend of rate making today is away from the idea of basing rates on de- preciated va'ue. It is now recognized that it is a physi- cal impossibility to keep any property maintained to a condition where no depreciation exists; that no prop- erty can possibly be maintained at more than 80 to 90 per cent of its cost new value, and that when main- tained to that condition it will, as far as the public is concerned, be giving 100 per cent service. In basing rates on the depreciated value of a property the investor is not only penalized, in that at least 20 per cent of the investment which he never had an opportunity to recoup is being confiscated, but the public also suffers. From the latter viewpoint, if, in determining fair value, accrued depreciation is deducted, in the future the rate of return must be sufficient to include an allowance for future depreciation accruals, yet such accruals can never be used for public benefit, since it is impossible to keep the property maintained at more than 80 to 90 per cent physically good. Therefore it follows that it is more expensive, and increases the cost of service, for the public to pay the principal by paying for accrued de- preciation, than to pay interest on the cost new value without deducting depreciation. Furthermore, it is now recognized that depreciation charges have nothing to do with capital account but are chargeable directly to operation. The Wisconsin Commission, which first originated the principle of basing rates on depreciated value, has within the past year abandoned this theory. The Buf- falo Arbitration fixed values entirely on the cost to reproduction new. The Missouri Commission has simi- larly expressed itself and in a recent case stated that henceforth all valuations in Missouri for the purpose of rate making would be on the basis of cost to repro- duce new. This position is economically and morally sound, and I believe is one which will be made the basis for all future valuations of traction companies for rate making purposes. From every present indication the future of traction companies lies along the way of private operation based on the cost of service with sufficient public supervision to insure proper costs and adequate service. The car rider should not be made to pay for anything but trans- portation. This means traction companies shall be re- lieved of all indirect taxes, such as paving charges, sprinkling, snow removal, and other taxes of like nature. It implies a fair agreed valuation upon which the car rider will pay a reasonable return. It further implies public supervision and a reward to management for efficiency. • There can be no proper argument advanced why transportation should be furnished at less than it cost to produce, and the deficit made up by taxation. If this is reasonable, then it 'is reasonable to go a step farther and say that transportation should be assumed by the municipality and furnished free and all expenses borne by taxation. , , r . ; , ■ Whether or not a satisfactory solution can ey%,be September 13, 1919 Electric Railway Journal 531 made for labor is a question that will always be doubt- ful. If the future is to be judged by the experiences of the past 24 months there seems to be no way of sat- isfying labor. The demands of the unions have already upset settlement after settlement that seemed to prom- ise results. There is one element, however, in the situ- ation that may curb further unreasonable demands, and that is public opinion. In the past, the public, in pay- ing a fixed fare, was very little concerned with the troubles between the traction companies and their em- ployees as long as service standards were maintained. In general the public sided with labor for the simple reason that, paying a fixed fare and receiving good • service, it was not directly affected. However, under the cost-of-service plan all this will be changed, and when the public once realizes that further wage increases and work-day changes are immediately reflected in the cost of service, public opinion will be interposed to offset unreasonable demands. It has frequently been said that many of the troubles of public service corporations can be traced to "the-public-be-damned" attitude of a decade ago, whether this is true or not, and it will be very interesting to see what will be the result of "the-public- be-damned" attitude of labor. It may be that the zone system is the solution in some localities, although as yet it has not been given sufficient trial in the United States to draw definite conclusions. The great majority of our cities have grovm upon the basis of one fare and it will be an extremely difficult matter to change the very funda- mental upon which their growth was predicated, that is, the one fare system. There is this much that can be said upon the future of our transportation systems: They are absolutely essential to the growth and development of our cities; there is nothing today or in the near future that can take their place ; what is necessary to our present civili- zation will be continued and maintained. The entire industry is today going through a settling process that will put it upon a more secure and stable foundation than ever before. Being removed from a local status to a national one, valuation and other standards will be more easily adopted. The public, to the extent that it will be given a more direct control of service and have the assurance that it is paying a fair price, will to that extent assume the responsibility for this service. ' The investor will find a future that will assure him of a fair if small return upon the money he has actually invested to 'give transportation service to OUr cities. The public will be satisfied because it will have the as- surance that it is paying for the service which it demands, a fair price based upon its actual cost, and that it controls more or less directly the character ana extent of its service. Labor will be made to realize that it is engaged in a public service and that public welfare must be considered. It will be paid a fair wage for a fair day's work and unreasonable demands will be met by the withdrawal of public support. The door of the past, I believe, will be closed not only upon obsolete valuation methods, but upon all of the old prejudices which have been the outgrowth of past mistakes and past policies. The urban transportation industry will be established on a business basis in which it will receive a fair price for a service absolutely essential to the well being and growth of our cities. Drag-Line Car for Handling Track Materials St. Louis Company Uses Old Drum, K-11 Controller and 30-Hp. Railway Motor to Replace Ten Men THE United Railways of St. Louis recently equipped a single-end flat car in such a manner that rails, switches, crossings, frogs and other materials can now be handled with a minimum of manual labor. The car is the standard 40-ft. single-end equipment used by the company for such purposes and has four GE 57 motors with K-6 control and Westinghouse automatic air brakes. As shown in the accompanying photographs, all such cars used in handling rails and special v/ork have embedded in the floor as skids, 60-lb. 4-in. T-rail. The equipment added to car No. 140 consists of a drag line operated from an 8-in. x 11-in. drum driven by an old Westinghouse 30-hp. railway motor. The motor is suspended from the car floor on the left side just ahead of the forward truck. It is connected by sprock- et and chain to a drum mounted in the cab. The left side of the cab is permanently closed and the chain drive is housed as shown in an accompanying illustra- tion. The control equipment for the drag-line motor is Westinghouse K-11 and is located directly above the motor in the forward left hand corner of the cab. The drum is equipped with a band foot brake for holding purposes. A 1-in. stranded wire cable is used for the drag line. The back of the cab is open but in stormy AT L.EPT, HOUSING FOR CHAIN DRIVE AND METHOD OF BRACING UPRIGHTS ON DRAG-LINE CAR; AT RIGHT, LOCATION OF DRUM AND CONTROLLER IN CAB OF CAR 532 Electric Railway Journal Vol. 22, No. 3 or cold weather this may be c'oser by a roll canvas flap. A pulley for guiding and turning the cable is mounted in the back of the cab. A rack has been built along the left-hand side of the car. There are four 6-in. I-beam uprights extend- ing 6 ft. above the floor and braced at the bottom. DRAG-LINE CAR USED AT ST. LOL JS F( ill HANDLING TRACK MATERIAL.S There is one lighter I-beam upright just back of the cab v\'hich is braced against the cab. The top longi- tudinal member is a 6-in. channel with a wood filler. The drag line passes from the pulley in the cab through a block which may be fastened at any one of the up- rights. The tongs used with the drag line were designed es- pecially for the purpose, for they are always pulling at such an angle that the ordinary tongs would catch on the edge of the car floor. Sections of 4-in. T-rail are used as skids and these hook into angle braces on the side of the car. Two skids are used for rails, but for other pieces of special work three or four may be used. Formerly ten to fourteen men were used in a crew to handle rails and special work. With the equipment describ- ed above it is a very simple matter to handle practically anything of this nature with three men and a motorman. Thus a great saving in labor expense is realized and a negligible amount of heavy work is required of the men. This equipment for handling track material was originally designed because of the impossibility of obtaining suflicient labor, illustrating again with added emphasis the old adage that "necessity is the mother of invention." SPECIAL TYPE OF TONGS USED WITH DRAG- LINE CAR An unique exhibit of gear making was held in Cleve- land, Ohio, some weeks ago under the auspices of an im- portant local bank. Van Dorn & Button Company had in operation on the sidewalk at the corner of East 9th Street and Euclid Avenue an exhibit of electrical railway and other gears, with a gear-cutting machine in commercial operation. The gear-cutting operation dem- onstrated was particularly interesting because the gears produced were of the skew-bevel variety. Washington Hearings to Be Resumed on September 29 THE next hearing before the Federal Electric Rail- ways Commission will be held on Sept. 29, accord- ing to a communication from Charlton Ogburn, execu- tive secretary. The first two or three days will be taken up by a few witnesses including mayors, railway managers and public utility experts who were pre- vented from attending the August hearings. Following their testimony, the labor program will be put on and this will require three or four days for presentation. It is expected that the Amalgamated Association of Street and Electric Railway Employees' testimony will be conducted by W. Jett Lauck of Washington and James H. Vahey of Boston as counsel. The questionnaire which the commission expected to send out to a great many persons closely allied to and interested in the street railway industry was completed about two weeks ago but has not as yet been approved by the chairman of the commission. It is expected that it may be made public some time next week. Convenient Method for Removing Arma- tures from Box-Frame Motors THE accompanying illustration shows a method used by the Pennsylvania-New Jersey Railway for re- moving the armatures of box frame motors in the shop at Trenton, N. J. A piece of 4-in. pipe, approximately REMOVING AN ARMATURE FROM A BOX-FRAME MOTOR WITH SIMPLE APPARATUS 6 ft. long, is placed over the end of the armature shaft after the end housing has been removed. A sheet steel hook, made of material 2 x 7 in., and with a surface for surrounding the axle about 9 in. long, is placed around the pipe close to the armature head and the hook from a crane or hoist is hooked into this. The hook of the crane is adjusted so as to keep the armature shaft the desired height and a man at the end of the 4-in. pipe steadies the armature and directs its removal or rein- stallation. A man at the opposite end of the motor guides the shaft from the commutator end, so that there is no danger of interference. The Pennsylvania-New Jersey road has but few equipments of box-frame motors and the installation of an armature-removing press would not be warranted as it would be used too in- frequently to pay the interest on the investment. This method has worked out very satisfactorily, in view of the comparative infrequency with which it is called into play. September 13, 1919 Electric Railway Journal 533 Letters to the Editors How to Secure Long Track Life Dallas, Tex., Sept. 8, 1919. To THE Editors: In your issue of Aug. 16 you ask the editorial ques- tion: "Is there any standard track sub-construction?" and proceed to answer it in the editorial following. The real answer may be summed up in three words: "There is not!" What is really to the point would be the question: "Can there be, under the tyranny of 'Old Man Local Conditions' — such a thing as standard track sub-construction?" and the answer to this is the same but not so final and emphatic, because there is a corollary to it: "It is possible largely to standardize local conditions and make them a better fit to an ap- proximate 'standard' of sub-structure." As I have pointed out in articles on this subject for many years, street railway track construction has been a most inexact science. Engineering practice which has been "standard" for years in the construction of other structures has been totally ignored in track con- struction. This arises from several causes. The first of these is that few track engineers seem to realize that track is— or should be — a "structure," that is to say: "An assemblage of different and separate parts or materials so combined as to form, as nearly as is possible, an integral whole adapted to its specific pur- pose." It is well to keep this definition in mind for there is in it the whole theory and practice of proper and standard construction of track. The "specific purpose" of railway track is, first of all, to form for its own wheel-traffic as perfect a rolling- way as is possible. This means that, for the wearing or "attrition" life of their heads, the two rails of every track must not only be, and remain, horizontally parallel and laterally level, except at curves of certain radii, but that the longitudinal wheel-contact surfaces of both rails must be, and remain, smooth, even and unbroken during that "wearing-life." The second condition is that if the track or rails have to bear other wheel-traffic than its own, as it is compelled to do in most paved streets, it must be so constructed as to be able to do this with a minimum ■of wear, jar, injury or danger to that outside traffic and also in such manner that there will be a minimum of wear or injury to itself. In paved streets the third condition is that the pave- ment and the track must be so component a portion of the whole street and must be so constructed with reference to each other where they touch or abut, that the track structure proper will not tend to loosen, sep- arate or disintegrate that touching or abutting pave- ment or any other portion of it, so that the whole street may not have dangerous or objectionable defects caused by the installation and use of the track. The fourth condition is entirely a local one, that of climate and subsoil, but even under such varying con- ditions as obtain in these respects in this country there can be a greater standardization if the basic principles of a "structure" are firmly held in mind and proper and correct engineering principles applied. The fifth condition presupposes a certain amount of "prophetical instinct" on the part of the constructing engineers. Not only must the track be constructed for its purposes for the immediate present, but the effect of increased traffic on and across it must be a factor fully considered, as must be the probable effect on it which may be caused by enforced limitations in its ini- tial construction. As a concrete example, if financial or other considerations compel the use of a very light rail, that rail must have more support (as with an in- creased number of ties) than would a much heavier rail and, also, much more attention must be paid to having the joints as nearly as possible an integral portion of the rail. The sixth condition is one which affects not only the track and roadway department but also every other department of the company including the security hold- ers. This is, that the effects of structural defects in the track are not limited to the track alone but are felt from the power-station to the claim department. The operation of the cars over "bad" track not only results in further injury to the track but, for every blow given by the car, the track returns a blow felt by the car maintenance department, the passengers, the pavement, the power-station and the dividends! One of the main reasons why more attention is not given to properly standardized construction of street railway track is that we have all been used for so long to 2eople into the outlaying dis- tricts. A .stable system of transit is an absolute need. Many of the present finan- cial difficulties of the roads are due to failure in the past to account properly for maintenance and depreciation. Many op- erators believed that the normal hicrease of patronage would in time offset their failure to put aside proper amounts for deprecia- tion, but patronage was reduced by the development of the automobile. Increased fares should have gone into effect years ago, but the roads hesitated to adopt them because they doubted their wisdom. The roads should also have aided years ago through taxation. Judge Anderson stated" that he was not in favor of public ownership. He advocated the banishment of jitneys so far as possible from streets in the sec- tions already served by electric rail- ways, pointing out that in many cases the jitney drivers operate only during the rush hours, when they are assured of large patronage. As a stockholder iri the Boston Elevated Railway, Judge Anderson stated that the public must recognize that investors have put up their money for a public purpose, and that within reasonable limits, their rights should be protected by the State. Mr. Beeler Advocates Safety Cars John A. Beeler was a witness on Sept. 9 before the electric railway in- vestigating commission at Boston, Mass. He advocated the use of safety cars as a means of doubling service with- out increasing labor costs materially. The witness declared that many of the present ills of the industry could be cured by this means. He stated that if the public could buy the Boston Ele- vated Railway at its present market value the road would be a bargain to the people. Mr. Beeler favored continuing public control of the Boston Elevated and Eastern Massachusetts systems. He pointed out that the lines of the Bos- ton company could not be reproduced at their original cost and declared that some system should be started by which the 5-cent fare could be utilized to pro- mote short-haul traffic. He urged re- lieving electric railways of taxes and removing subway rentals from the Bos- ton Elevated Railway. The witness said that in his opinion no transportation agency in sight could drive the electric railway out of the field, gasoline being ten times as costly as power plant energy. The inability of jitneys to handle traffic in large vol- ume was also recognized by the witness. Pitt F. Drew, president of the Mid- dlesex & Boston Street Railway, New- tonville, Mass., was also a witness. He stated that his road could not be run successfully for a fare less than 10 cents and that when a choice between this unit and no service was presented, little opposition to the 10-cent rate is encountered. Power Contract Inquiry The directors of the Indianapolis (Ind.) street Railway have ordered an investigation to determine in the in- terest of the stockholders and the pub- lic that the present arrangement of purchasing power from the main gen- erating station of the Terre Haute, Indianapolis & Eastern Traction Com- pany, using the street railway power station as a subordinate or "standby" station, is the most economical that can be had under existing conditions and to be assured that the power furnished under the present contract with the Terre Haute, Indianapolis & Eastern Traction Company is being measured in a fair manner for both of the properties. Prof. G. A. Young, head of the school of mechanical engineering of Purdue University, has been employed as an expert by the executive committee of the railway, and he will be assisted by the head of the electrical department and head of the experimental depart- ment in electrical and mechanical en- gineering. In the merger agreement effected on July 1, consolidating the Indianapolis Traction & Terminal Company and Indianapolis Street Railway, at the in- stance of the city of Indianapolis, which desired that the city system should be assured of an adequate power supply, it was provided that when the present contract expired in 1922 a new price basis should be established, as called for in the existing power con- tract, and that the Terre Haute, In- dianapolis & Eastern Traction Com- pany should provide power until 1933, the expiration of the street railway company's franchise. Bay State Strike Threatened Employees of the Eastern Massa- chusetts Street Railway, Boston. Mass.. have refused to accept the award of the Federal War Labor Board recently handed down, and a strike involving the entire system was expected Wednes- day to follow an ultimatum to the trustees of the company demanding that the above finding be repudiated and a new arbitration be entered upon. The War Labor Board granted the men a wage increase of 13.4 per cent, bring- ing the maximum pay to 50.4 cents an hour. The Bay state men demand a wage scale equivalent to that on the Boston Elevated Railway, with a maxi- mum of 60 cents an hour. Later the state Board of Conciliation found that both parties were bound to abide by the terms of the award. On Monday night the trustees gave out the following statement: Since Aug. 12, when the National War Labor Board awarded a wage increase of 13.4 per cent, several unfounded reports have been issued by the joint conference iJotird that on certain dates the men would strike in repudiation of this award. Last week the conference board sought to have th.n State board of arbitration review the wage case and the State board replied that It was the duty of the employees to abide by the War Labor Board award. To-day, a statement issued from Mr. Vahey's (coun- s.'l for the union) office that the joint con- ference board would call a strike Wednes- day morning unless the public trustees joined with them in repudiating the War Board's award. The public trustees feel obliged to reply that they will not be guilty of such an unjust blow at the public, upon whom a •f 1.000. 000 additional burden has already been placed by the War Board's award. The public trustees report that it would bo far better for the public to submit to the outrageous inconvenience of a strike than to surrender the fundamental prin- ciple of arbitration. The trustees are still confident that the men will not violate their agreement and strike and thus lose the .$1.35,000 back pay under the retroactive award of the War Labor Board. Contrary to expectations, the em- ployees of the company did not strike on Wednesday. It was announced by the joint conference board of the unions that unless its trustees agreed to the demand that the War Labor Board's award be repudiated by Wednesday, the machinery would be set in motion to start a strike on Friday. $200,000 Fire in Los Angeles Shortly after 1 a.m. on Sept. 10, fire thought to be of incendiary bomb origin damaged the Pacific Electric Railway's stores and shops at Los Angeles, Cal. The loss was $200,000. The principal structure destroyed was a two-story brick building 59 ft. x 200 ft., used for storing valuable car lepair parts, etc., and as a pattern loom and cabinet working shop. The damage to the contents of the store house is estimated $150,000. Diffi- culty was experienced in preventing the fire from spreading to adjoining storehouses containing oils and other valuable materials. Many cars and locomotives in the adjoining car shop and on the tracks were saved by moving them in time. The fire was discovered in the portion of the build- ing occupied by the lavatory. September 13, 1919 Electric Railway Journal 539 Court Passes on Wages United States Judge Frank H. Rudkin has allowed the claim of the employees of the Spokane & Inland Empire Railroad, Spokane, Wash., for increase of wages to the amount of the difference between general order 21 and supplement 4 thereto, and allows such claims priority over the mortgage to the amount of such increase for one month. The opinion was handed down in Federal Court in the case of the First Trust & Savings Bank, trustees, against the Spokane & Inland. Judge Rudkin holds: The negotiations between the Spokane & Inland and its employees amounted to an agreement to pay the wages being paid on federal controlled roads. The contract was disavowed by the com- pany on the first pay day after supplement 4 went into effect, by its refusal to pay ac- cording to that order. The employees' claims are entitled to priority over the mortgage to the extent of one month's wages. The other claims of the platform men are rejected. The platform men had always dealt with the company, the court states, through the instrumentality of their local union and had a written contract covering wages. The contract pro- vided that either party might give thirty days notice of a desire to reopen the question of wages. Such notice was given by the employees and no new agreement was ever reached. The employees contended that the giving of the notice terminated the con- tract and left them working on a quan- tum meruit. Judge Rudkin holds that the notice did not terminate the con- tract and that they continued to be em- ployed under it and are not entitled to additional compensation. The court also directs the receiver to file a statement setting forth the amount of the several several claims under the foregoing rule. The date of the sale of the Spokane & Inland Empire under foreclosure is fixed by the court for Nov. 1 instead of Oct. 1, as suggested by counsel for the bondholders. The circumstances which led up to the wage matter going to the court for a final ruling were reviewed in the Electric Railway Journal for Sept. 6, page 492. Progress on Cleveland Rapid Transit Line The Cleveland & Youngstown Rail- way will inaugurate an express service over its line between the business sec- tion of Cleveland, Ohio, and what is known as the Heights, the g-reat resi- dence district of the city on the east side, about Oct. 22. Temporarily the rapid transit service will be over the Cleveland Railway's Broadway line be- tween East Thirty-fourth Street and Pittsburgh Avenue and the Public Square. The time on this section will be about eight minutes, while the time on the rapid transit tracks will be ten minutes. It is announced that progress is be- ing made in the details looking toward the beginning of construction work on the new passenger terminal. The Penn- sylvania Railway, it is said, has not yet agreed to enter the new terminal. Only four months remain, however, for sign- ing contracts for the use of the depot, and it is probable that everything will be done to get matters in shape as soon as possible. Engineers are considering plans for the electrification of the Nickel Plate Rf ilroad through the ' city east and v/est, but nothing is definitely known as to what will be done in that direction. Power Employees Tie Up Toronto Railway The Toronto (Ont.) Railway was tied up for five hours on Sept. 3, owing to the substation employees walking out. The strike took place because the The strike took place because the railway did not accept the maiority report of the Board of Conciliation in the recent wage case in time to suit the electrical workers. This board brought in a report recommending an eight-hour day with four hours on Sat- urday for employees other than those on shifts, time and a half for the first five hours overtime and double time for all in excess of that, etc. The schedule of wages to be as follows: equipment repairs, 45 to 68 cents an hour; service inspectors, $22 to $25 a week; linemen 51 to 70 cents an hour; wiremen, 54 to 65 cents; jointers, 58 to 68 cents; meter inspectors, etc., $21 to $33 a week; station operators and attendants 49 to 65 cents; foremen, $29 to $34 a week. The new scale of wages was to take effect from July 21, and to terminate on thii-ty-days notice. New Wage Contract Signed in Birmingham A new three-year contract has been signed by the Birmingham Railway, Light & Power Company, Birmingham, Ala., and the representatives of the Amalgamated Association at a wage scale of 40, 45, and 50 cents an hour. The new contract has been in operation since Sept. 1. Under the new contract the first-year men receive 40 cents an hour, second-year men 45 cents and three-year men and men of longer serv- ice 50 cents an hour. The scale under the old contract was from a minimum of 31 cents to a maximum of 38 cents Increasing 1 cent a year. Under the new contract the shop em- ployees of less than one year service i-eceive an 8-cent increase. Men of more than one but less than two years receive a 10-cent increase and those of longer service a 13-cent increase. The scale for gas plant employees gives an increase of approximately 10 cents an hour. Compensation for men instructing students varies from 5 to 10 cents an hour over the regular rates. The com- pensation for men operating one-man cars provides an addition of from 21 to 5 cents an hour in addition to the regular scale. New Electrified Mileage on St. Paul On Aug. 24 the Chicago, Milwaukee & St. Paul Railroad placed in service an additional 100 miles of electrified track between Othello and Cleelum, Wash. This includes 19 miles of 2 per cent grade up Saddle Mountain. It was mainly for pusher service on this grade that service has been started on this part of the division in advance of the remainder of the distance to Tacoma. It is announced that by Jan. 1 the entire 211 miles from Othello to Ta- coma will be completely electrified and placed in operation. This will give electrification from Harlowtown, Mont , to Avery, Idaho, and from Othello, Wash., to Tacoma, Wash., leaving still to be electrified the gap between Avery and Othello. For operation of the electrified sec- tion opened on Aug. 24, some passenger locomotives are being converted to freight locomotives by changing the gears. The first new locomotives will be placed in service about Oct. 26. Five new passenger locomotives will be placed on the new line and ten new passenger locomotives on the old line. The forty-two freight locomotives now in service will be divided according to traffic demands. Davenport Still Without Service The Clinton, Davenport & Muscatine Railway, which operates the city lines of Muscatine, la., has not been able to come to an agreement with the city authorities of Muscatine and there has been no railway service there since Aug. 1. On Aug. 29 Muscatine filed an equity suit to compel the company to resume service and on the same date secured a temporary mandatory injunction from Judge M. F. Donegan in district court ordering the company to run cars forthwith in accordance with provisions of the franchise. Notice of the court action was served on the superintendent of the city lines at Muscatine. He was backed by company officials in re- fusing to let cars go out. The sheriff of Muscatine county ordered individual car men to report at the carhouses, and take out cars. They reported but ran no cars. B. J. Denman, president of the com- pany, states that no immediate action to resume operation in accordance with the court order will be taken. The equity action is returnable on Sept. 9 and the company will then take the stand that operation at the present fare in Muscatine is confiscatory. The company agrees to operate if a 7-cent fare is granted and if an oi'di- nance which prohibits the operation of one-man cars is repealed. The Council of Muscatine has so far refused to in- crease the fare or rescind the objection- able service order. Laboring men at Muscatine ride at 3 cents between the hours of 5 a.m. and 7 a.m. and 5 p.m. and 7 p.m. 540 Electric Railway Journal Vol. 54, No. 11 Strike in Mattoon Settled. — Service on the lines of the Central Illinois Trac- tion Company, Mattoon, 111., has been restored following a strike of several days. No statement was made public as to the nature of the settlement agreement. The men have been re- ceiving 35 cents an hour. They struck for 15 cents an hour additional. Men at Ashtabula Strike. — The mo- tormen of the Ashtabula (Ohio) Rapid Transit Company went on a strike on Aug. 28, when a new wage scale was not ratified as quickly as they thought it should be. The strike was of short duration, however, as the approval of the president, who was in New York, arrived a few hours after the men left the cars. Scranton Agreement Accepted.^On Sept. 3 motormen and conductors in the employ of the Scranton (Pa.) Rail- way decided to accept the company's offer of an increase in wages of 4 cents an hour. From now until Jan. 1, the workers will receive 50 cents an hour and on the first of the year they will get 51 cents. A nine-hour day will still prevail. Dynamiters Sentenced. — Nine former transportation employees of the Kan- sas City (Mo.) Railways accused by the government of having dynamite in their possession and suspected of com- plicity in the dynamiting of cars and carhouses in Kansas City during the strike last December, were convicted and sentenced by Judge Arba S. Van Valkenburgh recently. Wages on Ohio Road Increased. — The Toledo, Bowling Green & Southem Traction Company has increased the wages of platform men to 48 cents an hour. The company says that this rate will be paid as long as there are suf- ficient funds. The Councils of Bowling Green, Portage and Maumee have re- fused the company permission to in- crease the rate of fare. Not to Press AVage Demands. — The employees of the Washington Railway & Electric Company, Washington, D. C, on Sept. 4 announced that they would not press their demands for higher wages until Oct. 1. The present agreement under which the men are working is based on terms fixed by the War Labor Board. It will e.xpire on Sept. 30. The demands of the men were referred to briefly in the ELECTRIC Rail- WAY Journal for Aug. 30, page 449. Louisville Service Being Restored. — The third week of the strike of the trainmen of the Louisville (Ky.) Rail- way found the company operating twelve city lines and two of its inter- urban lines. Many of the former em- ployees are coming back, and it ap- peared on Sept. 6 that the strike was nearing an end. Disorder on the part of strikers has calmed dovra, but sym- pathizers have been causing a great deal of trouble in the suburbs. No cars were operated on Labor Day. Service Resumed in Muskogee. — The strike of conductors and motormen on the lines of the Muskogee (Okla.) Trac- tion Company, which has been in effect since May 30, with the exception of a few days in July when the trainmen agreed to return to work but later broke their agi'eement, is still in effect. Cars were taken from the carhouse a few days ago under guard of the citi- zens committee and have since been operated despite the threats of the striking trainmen and other organized labor in sympathy with them. St. Louis Plans Municipal Railway — The Citizens' Referendum League of St. Louis, Mo., is preparing in the next few days to circulate initiative petitions providing for a municipally-owned and operated system of railways and sub- ways for St. Louis. The plan provides free transportation for St. Louisians, the cost of operating and maintaining the system to be paid by an increase of taxation. The league has prepared as a criterion to the success of municipal ownership a chart showing the operat- ing expenses, net profit and other items in connection with the operation of the municipal railway of San Francisco for the year ending June 30, 1918. War Dead of B. R. T. Honored.— A monument and bronze tablet to the memory of the fifty-three employees of the Brooklyn (N. Y.) Rapid Transit Company who lost their lives in the war was unveiled on the afternoon of Aug. 30 at the Railroad Men's Build- ing, Jamaica Avenue, Brooklyn. The tablet, attached to a large granite column, cost $2,000, and was paid for by contributions from the 14,000 em- ployees of the road. The list of names on it is headed with that of Capt. Harry A. Bullock, who was secretary of the New York Municipal Railroad, a sub- sidiary of the Brooklyn Rapid Transit Company. He was killed at Montdidier, France, on May 30, 1918. Paving Charge Rescinded. — The re- ceivers of the Pittsburgh (Pa.) Rail- ways have been relieved by the United States Court, under which they serve, of bearing the expense of repaving a certain section of West Carson Street, over which a controversy has been waged by the city administration and the receivers for many months. The court takes the stand that to permit the receivers to bear this expense would establish a dangerous precedent in view of the fact that many other municipal- ities through which their lines run have similar claims to present and it might be impossible for the company to meet them all. East St. Louis Men Still at It.— Al- though the chairman of the Public Utilities Commission of Illinois an- nounced some time ago that the com- mission would not act as an arbitration board, the union employees of the East St. Louis & Suburban Railway, t^ast St. Loujs, 111., have foi'warded a request that the commission fix a wage scale for the men. The men struck recently because they were dissatisfied with the award of the War Labor Board, but returned to work under conditions re- viewed in this paper for Aug. 30, page 447, among which was a promise of a future conference with representatives of the public included if the need arose for any further readjustments. City Favors Taking Over Roads. — City Solicitor Estes, Howard G. Smith, Harvey E. Clap, William H. Saart and Arthur Sturdy, who represented the city of Attleboro, Mass., in the con- ference between representatives of the dilferent municipalities through which the Norton, Taunton & Attleboro Street Railway is operated, relative to the sale of the road for $120,000, reported to the Chamber of Commerce on Sept. 20 that the delegates were unanimous in recommending the purchase of the road at the price named on a basis of equal assessments for the different municipalities. This means $35,000 for each of the municipalities. A recent act of the Legislature will permit such purchase of the road. Budget for Seattle Municipal Rail- way.— Thomas F. Murphine, superin- tendent, has asked for an appropriation of $7,000,000 for the maintenance and operation of the Seattle (Wash.) Mu- nicipal Railway in 1920. The estimate is based on the financial showing of the lines during the first two months of the city operation. Of the amount asked, $3,066,666 will be required to pay salaries under the new salary adjust- ment recently adopted. Expenditures and expenses will aggregate $3,834,354, v/hile improvements amounting to $161,000 are planned. The estimate does not include the salary of the su- perintendent of public utilities or other expenses of the utilities department. These are covered in a separate esti- mate of $52,055. Manchester Wage Award Announced. — The board of arbitration which has been inquiring into the matter of wages for the trainmen of the Manchester Traction, Light & Power Company, Manchester, N. H., has awarded motor- men and conductors 45 cents an hour for the first three months, 50 cents an hour for the next nine months, aud 55 cents an hour thereafter. Miscellaneous employees were granted a 25 per cent increase. This gives the conductors and motormen in the employ of the company for three months an increase of 7 cents an hour and those in the employ of the company for more than a year an increase of 12 cents. The in- crease is retroactive to April 1. It is said that the company will seek an increase in fare from 6 to 8 cents. Do Wages or Fixed Charges Come First? — An order granting the appli- cation of attorneys for the city of Des Moines, la., to appeal his recent de- cision in the Des Moines City Railway case to the United States Circuit Court of Appeals has been granted by Judge September 15, 1919 Electric Railway Journal 541 Martin J. Wade, of the Federal court. The city's appeal is from that section of the order holding that fixed charges must come out of the revenues of the railway before wages are paid. The city attorneys maintain that the costs of operation including wages must be the first claim upon the • operating revenue. According to Corporation Counsel Byers the appeal is taken simply as a precautionary measure to prevent the case being settled before the 6-cent fare is voted upon. The order prevents any further action in the case until after the United States Circuit Court of Appeals holds a hearing. Arbitration Accepted on Extension Question. — C. M. Leslie, receiver for the Interurban Railway & Terminal Company, has advised Street Railway Commissioner W. C. Culkins, of Cin- cinnati, Ohio, that he is ready to sub- mit all questions involved in the ex- tension of the Cincinnati Traction Com- pany's line to Kennedy Heights to ar- bitration, but that he cannot agree tu the violation of any court order. The question is whether or not certificates of indebtedness held by the Cincinnati Traction Company shall receive prefer- ence over notes of bondholders in the distribution of money to be paid to the interurban company by the Cincinnati Traction Company. Mr. Leslie stated that the court had ruled that bondhold- ers be given preference. The Cincin- nati Traction Company has agreed to arbitration without qualification. Will Exhaust Surplus to Pay Wages. • — The Manhattan & Queens Traction Corporation, Long Island City, N. Y., announced on Aug. 28 that it had de- cided to grant the motormen and con- ductors an increase in pay which would make a 25 per cent increase over what they had been receiving on Aug. 1. The employees formerly received 41 and 49 cents an hour. Now they will receive 52 and 62 cents. On Aug. 10 the com- pany voluntarily granted a 10 per cent increase, but a few days later a commit- tee from the men threatened a strike if they did not get another raise equal to a 25 per cent increase in all. The superintendent of transportation of the company is quoted to the effect that the company had agreed to this increase and to give it to the men until the com- pany exhausted the small surplus now in the hands of the receivers, and then suspend operations. The appeal of the company for an increase in fares was referred to the Electric Railway Journal for Sept 6. Connecticut Interurban Inicreases Wages. — The Hartford & Springfield Street Railway, Warehouse Point, Conn., has granted an increase in wages to its motormen and conductors, amounting to an average of 12 per cen*; over the present schedule. Harrison B. Freeman, the receiver of the com- pany, concludes a statement about the adjustment as follows : "It was felt that a strike resulting in both a loss of wages to the men and a loss of earn- ings to the railway and engendering bad feeling on both sides and resent- ment by the public on account of inter- ruption of service, would do the Hart- ford & Springfield Street Railway no good and the new schedule of wages was adopted without any threat or ulti- matum by either side after a full and fair presentation of the facts by both the officials of the railway and the ex- ecutive committee of the employees' association. It is only fair that the public should understand this situation and that credit should be given to the employees' association for its fair and, in these days, unusual attitude in an industrial dispute." Programs of Meetings National Association of Railway and Public Utility Commissioners Official call for the thirty-first annual convention of the National Association of Railway & Utilities Commissioners to be held in Indianapolis, Ind., begin- ning Oct. 14, has just been issued. Tlie opening address will be delivered by Clyde B. Aitchison, chairman of the Interstate Commerce Commission. Walker D. Hines, Director-General of the United States Railroad Administra- tion, has been invited. Among the im- portant subjects to be reported upon are public ovmership and operation, utility companies, railroad rates and service of railroads and service of utility companies, railroad rates and utility rates, demurrage, express com- panies, grade crossings, statistics and accounts, capitalization and State and Federal legislation. It is expected that the various plans for the return of the railroads to private ownership, as well as the Plumb plan for nationalization thereof, will be discussed. Eighth Annual Safety Congress The preliminary program of the Safety Congress, to be held under the auspices of the National Safety Council at Hotel Statler, Cleveland, Ohio, Oct. 1 to 4, has just been issued. It con- tains the following list of authors and topics of papers to be presented before the electric railway section: "The Human Factor in Safe Opera- tion and Maintenance of Rolling Stock," by F. R. Phillips, superintendent of equipment of the Pittsburgh (Pa.) Railways. "Co-ordination of Safety Between Transportation and Equipment Depart- ments," by G. K. Jefferies, general superintendent of the Terre Haute, Indianapolis & Eastern Traction Com- pany, Indianapolis, Ind. "Why Does Not Every Electric Rail- way Have a Safety Organization?" by C. B. Proctor, claim agent of the Memphis (Tenn.) Street Railway. "Nationalizing and Standai'dizing Accident Prevention," by Harry Reid, president of the Interstate Public Serv- ice Company, Louisville, Ky. "Electric Railway Hazards — Causes, Effects and Remedies," by R. E. Mc- Dougall, claim agent of the New York State Railways, Rochester, N. Y. "Safety Before and After the War," by E. F. Schneider, general manager of the Cleveland, Southwestern & Columbus Railway, Cleveland, Ohio, In addition to the above, thei'e will be papers of interest to electric railway men delivered before the public utility, public safety and other sections; as well as general or special sessions de- voted to Americanization, employees' benefit associations, employees' publi- cs tions, etc. There will also be a safety exhibit in Grays' Armory, and the week Sept. 28 to Oct. 4 will be "Safety Week" in Cleveland, the goal being to pass the week without a single preventable accident. Iowa Electric Railway Association Further announcement has been made concerning the program of the mid-year meeting of the Iowa Electric Railway Association. The meeting will be held at the Blackhawk Hotel, Dav- enport, la., on Sept. 17 and 18, and the session to be held during the forenoon of Sept. 17 will be divided into four sections, namely: way and structure, shops and equipment, transportation, power and distribution. The paper for the way and structure section will be presented by R. H. Findley, superin- tendent track and roadway of the Omaha & Council Bluffs Street Rail- way. This paper will be discussed by W. L. Wilson, engineer maintenance of way of the Des Moines City Railway; C. F. Reaney, acting chief engineer of the Waterloo, Cedar Falls & Northern Railway, and R. J. Smith, engineer maintenance of way of the Tri-City Railway, Davenport. The paper before the shops and equipment section will be delivered by John Sutherland, master mechanic of the Tri-City Railway, and will be dis- cussed by C. M. Feist, master mechanic of the Sioux City Service Company; T. E. Wood, master mechanic of the Omaha & Council Bluffs Street Rail- way, and John Duncan, master mechanic of the Fort Dodge, Des Moines & Southern Railway. The paper before the transportation section will be de- livered by J. H. Seisseger, general superintendent of the Mason City & Clear Lake Railroad. The discussion will be led by L. L. Sloss, superintend- ent of the Des Moines City Railway; J. P. Boyle, traffic manager of the Iowa Southern Utilities Company, Center- ville, and A. C. Anderson, superintend- ent of the Keokuk Electric Company. The paper before the power and dis- tribution section will be delivered by John M. Drabelle, electrical engineer of the Iowa Railway & Light Company, Cedar Rapids. The discussion will be led by D. W. Gilbert, superintendent of power stations of the Omaha & Coun- cil Bluffs Street Railway, and D. K. Lewis, electrical engineer of the Fort Dodge, Des Moines & Southern Rail- road. The remainder of the two-day pro- gram was announced in the Electric Railway Journal for Aug. 16, page 328. t)4Z Electric Railway Journal Vol. 54, No. 11 Financial and Corporate Chicago Valuation Filed Reports Showing Surface Railway Fig- ures Presented to Public Utilities Commission At a hearing before the Public Utili- ties Commission of Illinois on Sept. 8, reports were filed showing- the valua- tion of the properties operated by the Chicago Surface Lines. The reports were not recorded as exhibits, but are to be used later in the proceedings through which the permanent rates of fare are to be fixed. The fare has been 7 cents since Aug. 8. The city, through its special counsel, Chester Cleveland, insisted that before hearings are held on the question of valuation there are a number of disputed points to be settled. One contention is that having submitted to one change in their contract ordinance, namely, the charge for fares, the companies must offer to surrender the entire contract. The commissioners intimated that the situation might be different because the city had no authority to enter into such an ordinance with the companies. ■ It was announced that both the com- mission and the city would be handi- capped in making a valuation through lack of funds for this purpose. The companies figures were prepared after six months of investigation by Stone & Webster and A. L. Drum & Company. One incident of the hearing was the criticism by Commissioner Wilkerson of those who have been responsible for giving to certain newspapers informa- tion which appeared to reflect on the motives of the commission. It was expected that further argu- ments would be presented on Sept. 12, and that the case of the elevated rail- ways might be combined with that of the Surface Lines. Abandonment Threatened R. B. Claggett, secretary and treas- urer of the Columbus Railway, Light & Power Company, Columbus, Miss., has indicated to the Council of that city that the company will be compelled to abandon service on its railway lines un- less permission is granted to it to dis- continue certain lines which now par- allel each other and also make certain other changes in the interest of econ- omy. With the advent of war condi- tions the company was confronted with a crisis. The situation was met by the Council allowing an increase of elec- trical and gas rates, which served to safeguard the light service. The in- creased fares on the railway, however, proved unsatisfactory and the com- pany voluntarily restored the 5-cent fare on Aug. 1 in the hope of increas- ing its revenue from this source. Mr. Claggett stated that the railway was losing $1,000 a month, and its contin- ued operation upon its present basis was out of the question. Instruction of Bond Salesmen Educational Venture Has 1.50 Enroll- ments— Attendants at Doherty School Visit Railway Property Recently Henry L. Doherty & Com- pany announced that they would con- duct a class for bond salesmen in New York. A paragraph to this effect was published in two or three of the daily papers in New York. In consequence, some 6000 applications were received for membership in the school. It is obvious that no such number could be accommodated; about 150 applications were accepted, most of them from heads of some department or holding some responsible position in Wall Street. No pledge is required that the ap- plicant on completing the course shall join the Doherty forces, as the com- pany's desire is quite as much to ac- quaint men who deal in bonds with the fundamentals of the industries in whose securities H. L. Doherty & Company deal as it is to enlarge its own forces. The students are divided into sec- tions, and a section meets daily at 7:30 a.m. The conditions underlying the issue and value of all forms of securi- ties are studied. The course will con- clude with special attention to Doherty securities. The course is in charge of L. F. Fuld, of the Doherty organization. No charge is made by the firm, either for tuition or for text books. It is a part of the plan to combine text-book instruction with work in the field. The first field trip of the pupils was made on Sept. 6. It consisted of a tour of inspection of the Second Avenue Ele- vated Railway and the Manhattan & Queens Traction Corporation. On the latter property the party was person- ally conducted over the system by Mr. Duncan, superintendent, who answered many questions relating to electric rail- way operation. The party traveled over the line in a special car. Has $105,797,989 Still Due Advances of $200,285,523 have been repaid to the War Finance Corporation, according to announcement on Aug. 22, leaving outstanding a balance of $105,- 797,989. The loans have been made to railroads, public utilities, industries and cattle growers. Although the cor- poration has authority to issue $1,000,- 000,000 in bonds for the financing of export trade, it is not expected that any advances for this purpose will be made before the conclusion of peace. Slight Gains for Lake Shore Results in 1918 and 1917 Compared in Income Statement and Operating Statistics A comparative statement of the re- sults of operation of the Lake Shore Electric Railway System (comprising the Lake Shore Electric Railway, the Lorain Street Railroad, the Sandusky, Fremont & Southern Railway, the People's Light & Power Company and the Bellevue Illuminating & Power Company) for the years ended Dec. 31, 1918 and 1917, follows: 1918 1917 Gross income $2,189,234 $1,786,011 Operating and taxes. 1,593,083 1,210,690 Net $ 596,241 $ 575,321 Interest paid 432,860 421,333 Surplus $ 163,381 $ 153,988 E. W. Moore, president of the com- pany, reviews the work carried out during the year. Considering the con- ditions which obtain in the labor field and in the market for materials the work of keeping the physical property of the company up to standard was well carried out. Attention is called to the fact that the franchises of the Lake Shore Elec- tric Railway and the Lorain Street Railway in Lorain were both renewed during the year for a period of twenty- five years. $118,548 Charged to Capital Account The total expenditures for additions and improvements to be charged to capital account were as follows: Lake Shore Electric Railway $100,648 Lorain Street Railroad 9,202 Sandusky, Fremont & Southern Railway 50 Bellevue Illuminating & Power Company 4,344 People's Light & Power Company. 4,304 Total $118,548 Operating statistics of the Lake Shore Electric Railway follow: 1918 1917 Car miles 3,522,668 3,593,009 Income per car-mile, cents 49.24 39.51 Operating and taxes per car-mile, cents . . 35.82 26.57 Net earnings per car- mile, cents .... 13.42 12.94 Passengers carried ....5,947,163 6,241,350 Earnings per passenger, cents 22.49 18,36 Operating statistics of the Lorain Street Railroad follow: 1918 191.7 Car-miles 694,542 685,293 Income per car-mile, cents 41.61 31..92 Operation and taxes per car-mile, cents 28.74 21^81 Net earnings per car-mile, cents 12 87 10.11 Passengers carried 4,273,220 3.711,368 Earnings per passenger, cents 6.76 5.90 Operating statistics of the Sandusky, Fremont & Southern Railway follow: 1918 1917 Car-miles 232,643 233,340 Income per car-mile, cents 47.74 41.90 Operation and taxes per car-mile, cents 40.35 30.98 Net earnings per car-mile, cents 7.39 10 92 Passengers carried 287,165 345,080 Earnings per pasenger, cents 35.36 26.82 September 13, 1919 Electric Railway Journal 543 Washington Values Fixed After Five Years District of Columbia Public Utilities Learn Their Value for Rate-Making Purposes The Public Utilities Commission of Washington, D. C, has completed a task begun in May, 1914, fixing values for rate-making purposes on the prop- erties of the Capital Traction Company and the Washington Railway & Electric Company. The findings of the conunission de- clared a fair total value of the Capital Traction Company as of June 30, 1919, to be $14,270,495, or approximately an increase of $1,000,000 over the value set by the commission for the company as of July 1, 1914. The company's claim for reproduction value, including ex- penditures as of June 30, 1919, was $25,951,679; while its historical value estimate, including expenditures, as of the same date, is $19,418,298. A fair total, value for the Washing- ton Railway & Electric Company was fixed by the commission at $16,106,368 as of June 30, 1919, which allowed an increase of valuation of $1,500,000 since July 1, 1919. This company, estimating up to July 1, 1916, submitted claims of $30,778,083 for historical value, and $29,656,382 for reproductive value. One of the commissioners rendered a dissenting vote. In view of this fact it is expected that an appeal will be taken by the companies. An appeal might delay the establishment of the valua- tion for several years, as an appeal taken by a subsidiary of the Washing- ton Railway & Electric Company against a valuation set by the commis- sion in May, 1917, is still pending in the courts. Commissioner Gardiner, in submitting a minority report in the valuation case of the Capital Traction Company, takes issue with his associates as to the method used in determining fair value. Mr. Gardiner held that the only fair procedure of valuation to be one which determined fair value as of the present time, taking as a basis what is found to be a fair permanent basic cost of reproducing the property. If Mr. Gard- iner's contentions are sustained by the courts they will lead to a much higher valuation for both companies than the majority of the members of the com- iviipsion have allowed. It was announced that pending the final review of the valuations by the courts, the commission would use the figures as a basis for fixing rates in Washington. Commissioner Brownlow said the application of the Washington Railway & Electric Company for au- thority to charge increased rates would be considered at a public hearing by the commission on Sept. 18. This rate matter was delayed pending the com- pletion of the valuations. Mr. Gardiner points out that the com- mission omitted an item of $5,143,907 in the case of the Capital Traction Com- pany, the amount paid by the Rock Creek Railway for the Washington & Georgetown Railroad in 1916. In com- menting on this point, Mr. Gardiner said: I believe it to be the duty of this com- mission to protect those who have inno- cently and honestly invested their money and not talv.-- vise these properties. Interurban Committeemen Want City to Act Elliott C. McDougal, chairman of the protective committee representing holders of the collateral trust 4 per cent bonds of the International Trac- tion Company, Buffalo, N. Y., has is- sued a statement calling attention to the seriousness of the railway situation in Buffalo and severely criticising the city officials for prolonging litigation over the rate case after the decision of the State Court of Appeals. Mr. McDougal says that notwith- standing statements to the contrary, there is grave danger of receivership and bankruptcy for the International Railway. The bondholders' committee, he states, learned after an investigation that during the year ended May 1, 1919, the International Railway lost in opera- tion more than $750,000. He says that if the committee had not loaned the railway $800,000 to pay interest in Januai-y and July on more than $17,000,- 000 of its bonds, there would have been a receivership. According to Mr. Mc- Dougal the committee has twice saved the company from bankruptcy. On Nov. 1, 1919, another installment of interest on the company's bonds will be due and Mr. McDougal declares that "unnecessary delay in the rate case will be criminal." Ancillary Receivers for Wheeling Company Joseph D. Whittemore and Francis R. Harbison, both of West Virginia, have been appointed ancillary receivers for the West Virginia Traction & Electric Company by Judge Charles P. Orr, in United States District Court. The company is a West Virginia con- cern, and recently suit was filed against it by Albert M. Cooke, which resulted in Messrs. Whittemore and Harbison being appointed receivers by the Fed- eral Court for the Northern District of West Virginia. Lewiston, Augusta & Waterville Sold at Auction The property and franchises of the Lewiston, Augusta & Waterville Street Railway were sold at auction on Sept 5 at Auburn, Me., for $80,000 to a syn- dicate representing the first mortgage bondholders and the holders of the re- funding bonds. The sale is subject to the approval of Associate Justice Mer- rill of the Maine Supreme Court, by v/hom it was ordered on the petition of the trustees under the mortgages secur- ing the first and refunding bonds of the road, amounting to $2,937,000, on which interest in excess of $151,133 had not been paid. It was announced after the sale that the company will be reorganized. It is new being operated by receivers. The Turner branch of the system, covering about 12 miles of track out of the 167 forming the road as a whole, was sold for $30,000 (included in the $80,000) exclusive of franchise. The branch line will be discontinued, ac- cording to present plans. Seattle Again Reports a Profit A report filed with Mayor Hanson by Superintendent Thomas F. Murph- ine shows that the revenue of the Seattle (Wash.) Municipal Railway for the month of July, 1919, was $461,- 228. This amount is a gain of $23,372 over the month of June, 1919, and $36,557 over the month of July, 1918. In a statement accompanying the re- port, Mr. Murphine said in part: The total known operating- expenses are shown to be $378,462, as compared with a total of $367,026 for the month of June, 1919. From a gain or profit of $82,- 7 65 for the montli we have deducted an item of $65,635, being interest on out- standing bonds, and an item of $7,664, being a proper amount for industrial in- surance to be apportioned to the month of July ; also an estimated item of $1,817, which is in addition to the $5,182, for damage claims already paid in July. When tliese deductions have been made there is shown a net gain of $7,648 for the month. Extraordinary expenditures of a rehabil- itating character totaling $85,448 during this month more than offset depreciation, an average charge for which would in our judgment be $25,000. This maintenance expenditure for the month of July is at the rate of $1,025,382 for the year and repre- sents approximately 19 per cent of the total revenue for the railway for the month. We' operated during this month a total of 158,451 car hours, which is 28.879 car hours in excess of the car hours during the cor- responding month of the previous year by the combined lines of the Puget Sound Traction, Light & Power Company and the Mur'icipal Railway Divisions A and C. It is also shown that we operated 1,416,- 248 car miles, which is 19 per cent in ex- cess of the car miles operated in the same month of the previous year. In view of the fact that the use of other transportation mediums has greatly increased this year over last vear, the increase of 19 per cent in the car mileage of our railway indicates that the people of the city of Seattle are getting increased transportation service which is in excess of the increased growth of the population of the city. 544 Electric Railway Journal Vol. 54, No. 11 Does Seattle Have to Pay? The courts will be asked to decide whether the city of Seattle, Wash., can be required to pay a tax of $275,000 on the $15,000,000 railway purchased last March from the Puget Sound Traction, Light & Power Company. When the city and railway were about to close the deal for transfer of the property in March, the State Tax Commissioners fixed the valuation of the property at $12,000,000 for the purpose of taxa- tion and put it on the tax rolls on that basis. The city's share of the tax this year on the $12,000,000 valuation was figured at $275,000. At that time, protests were made by both the city and company on the ground that before the tax could be legally spread on the rolls, the property would be in the possession of the city and not subject to taxation. The Tax Commissioner, however, took the position that some- body had to pay the tax. Decision to Continue Operation Stockholders of the Swansea & See- konk Street Railway met in Swansea, Mass., recently and authorized the di- rectors to resume operation of the road at once. While the prevailing senti- ment was that service should be re- sumed, there were several dissenters and no one was optimistic enough to express the opinion that the operation would ever be a success financially. The attitude of the employees and the causes which resulted in the discon- tinuance of service were referred to only once during the meeting. That was when a stockholder inquired if it was because of the strike that the oper- ation of the road ceased. He was in- formed that there was no strike, but that every employee of the company had resigned. A letter directed to the officers of the road was read to cor- roborate the statement. Financial News Notes Sale of Collateral Adjourned. — The sales of $2,500,000, West Virginia Trac- tion & Electric Company general and refunding twenty-five year 5 per cent gold bond pledged as collateral to se- cure an issue of $1,800,000 of 6 per cent gold notes of the West Virginia Trac- tion & Electric Company, Wheeling, W. Va., which was set for Sept. 4 has been adjourned for two weeks. Asks Company About Security Issue. — Oflicers of the Cincinnati & Columbus Traction Company, Cincinnati, Ohio, have been cited to appear before the Ohio Public Utilities Commission on Oct. 22 to show cause why they should not abandon the authority granted them in 1915 to issue $1,800,000 of securities, from the proceeds of which they ex- pected to extend the line to Chillicothe. Some of the securities were sold, but no work was done on the proposed ex- tension. Recently the commission granted authority for the abandonment of a portion of the line. Date Set for Sale of Collateral.— At a a meeting of the protective committee of noteholders of the Washington Utili- ties Company, Washington, D. C, on Sept. 4, it was decided to sell the com- mon stock of the railway at public auction on Sept. 24. The metro- politan Ti-ust Company has been de- signated as trastee. As noted in the Electric Railway Journal for Aug. 2 sale of the 27,500 shares of the com- mon stock of the Washington Railway and Electric Company held as collateral for the defaulted notes, of the Wash- ington Utilities Company was ordered on July 25 by the protective committee. Receiver Appointed for Ohio Road, — On Aug. 29, George Whysall, president of the Columbus, Marion & Bucyrus Traction Company, was appointed re- ceiver for the Springfield Terminal Rail- way & Power Company by Judge John E. Sater, of the United States District Court. The company operates an inter- urban line between Springfield and Troy, Ohio. It is said that the earn- ings for some time have not been suf- ficient to pay expenses, to say nothing of fixed charges. The company is in default on interest due in December, 1918, and in June, 1919, on bonds amounting to $250,000. The applica- tion for a receiver was filed by Harley E. Bums, representative of the Central Trust Company, Chicago. St. Louis Certificates Offered. — The issue of receivers' certificates by the United Railways, St. Louis, Mo., to which reference has been made previ- ously in the Electric Railway Jour- nal, is being offered for subscription by William R. Compton Company, New York and St. Louis, the First Na- tional Bank, the Mercantile Trust Com- pany, Francis Brothers & Company, the Mississippi Valley Trust Company and the Stifel-Nicolaus Investment Com- pany, St. Louis. The certificates are being put out at 99.05 and interest to yield about 7 per cent. The total issue is $2,300,000 running for one year at 6 per cent, dated Sept. 2, 1919, and are due on Sept. 2, 1920. They are in the demonination of $1,000. As explained previously in the Electric Railway Journal, the entire proceeds of this issue will be used for the purpose of paying the loan from the War Finance Corporation, to secure which $3,500,000 of Union Depot Railroad first mortgage 6 per cent bonds were pledged by the United Railways as collateral. These securities will now be released. Electric Railway Monthly Earnings Period BATON ROUGE (LA.) ELECTRIC COMPANY' Opemting Operating Operating Fixed Revenue E.\-penses Income Charges Im., June, ' 1 9 Im., June, ' 1 8 I 2m., Juno, ' 1 9 1 2m., Jvmo, ' 1 8 $29,498 $*18,793 23,272 *10,961 314,115 *I87,404 245,509 *I26,229 .$10,705 12,31 1 126.71 1 1 19,280 $3,380 3,477 42,107 39,272 CAPE BRETON ELECTRIC, LTD., SYDNEY, N. S. Ini., June, 1 m,, June, 1 2m.. June, 1 2m., .T\ine, '19 •18 •19 '18 $46,529 40,097 556,491 486,048 $*36,883 *29,940 *426,428 *339,416 $9,646 10,157 130,063 146,632 $5,330 5,255 64,188 63,057 Net Income $7,325 8,834 84,604 80,008 $4,316 4,902 65,875 83,575 CLEVELAND, PAINESVILLE & EASTERN RAILROAD, WILLOUGHBY', OHIO Im., June, ' 1 9 $63,130 $*36,679 $23,451 $15,331 $8,120 1 ni., June, ' 1 8 50,169 *34,996 15,171 1 1,795 3.376 6m., June, ' 1 9 30,652 *210,805 95,847 90,01 1 5,836 6m., June, ' 1 8 256,192 *175,870 80,322 68,939 1 1,382 HOUGHTON COUNTY" TRACTION COMPANY", HOUGHTON, MICH. Im., June, • 1 9 $22,705 $*18,875 $3,830 $3,993 $tl63 Im., .Tune, • 1 8 25,679 *18,890 6,688 4,106 2582 1 2m., June, ' 1 9 304,373 *213,246 91,127 48,917 42,210 12m., June, '18 337,476 *219,327 118,149 49,678 68,471 JACKSONVILLE (FLA.) TRACTION COMPANY Im., June, )m., June, 1 2m., June, 1 2m., June, 19 $81,207 60,984 1,025,600 781,551 $71,737 47,264 873,336 540,523 $9,470 13,720 152,264 241,028 $14,388 14,652 177,138 170,427 $t4,918 1932 124,874 70,601 LAKE SHORE ELECTRIC RAILWAY', CLEVELAND, OHIO Operating Operating Operating Fixed Net Period Im , June, ' 1 9 Im., .Tune, ' 1 8 6m., June, ' 1 9 6m., June, ' 1 8 Revenue Expenses Income Charges Income $226,427 $*154,785 186,672 *126,267 1,190,196 *898,933 958,841 *71 1,565 $71,642 60,405 291,263 247,276 $35,-625 36,405 215,193 217,029 PENSACOLA (FLA.) ELECTRIC COMPANY Im., June, ' Im., June, ' 1 2m., June, ' 1 2m., June, • $44,151 42,732 558,923 417,518 $*33,759 *26,199 *434,441 *259,589 $10,392 16,532 124,481 157,929 $8,379 7,061 93,290 82,758 $35,817 24,380 76,070 30,247 $2,013 9,471 31,191 75,178 PUGET SOUND TRACTION (WASH.) LIGHT & POWER COMPANY Im., June, • 19 3m., June, ^19 6m., June, '19 $666,787 2,081,752 5,196,784 $*463,947 *1, 390,058 *3,688,407 $202,840 691,694 1,508,377 $265,340 879,194 1,695,888 TAMPA (FL.A.) ELECTRIC COMPANY Im., June, '19 Im., June, '18 12m., June, '19 12m., June, '18 Im., June, '19 Im., June, ' 1 8 12m., June, '19 1 2m., June, ' 1 8 $97,926 83,134 1,159,080 1,003,642 $*62,515 *51,094 *688,692 *583,089 $35,411 32,039 470,387 420,553 $4,770 4,263 53,289 51,017 SAVANNAH (GA.) ELECTRIC COMPANY $118,664 96,677 1,300,886 1,071,436 $*99,343 *65,253 *1, 037,554 *719,354 $19,321 31,424 263,332 352,082 $24,517 23,117 291,247 275,909 $55,409 260,388 461,668 $30,741 27,776 417,098 369,536 $15,196 8,307 t27,915 76,173 * Includes taxes, f Deficit. September IS, 1919 Electric Railway Journal 545 All Eyes on Jersey Public Service Railway Ready for In- stallation of Zone-Mile System of Fares on Sunday On Sunday, Sept. 14, 1919, coinci- dent with the first car out on regular runs, the mile-zone system of fares will go into effect on the lines of the Public Service Railway in New Jersey. Fares will be based on 3 cents for the first rriile and 2 cents for each additional mile on every car without transfer. Approximately 600 cars operated on lines of heavy travel and having a con- siderable number of zones will be equipped with National cash registers, class 700. All other cars will carry Johnson registering fare boxes and overhead registers, on which the num- ber of passengers carried will be regis- tered. The number of cash registers will be gradually increased during the follow- ing month until all cars operating on routes having three or more zones are equipped. This will call for practically 1300 registers. The campaign of publicity outlined in last week's issue is going forward. Moving pictures of the scheme were first displayed at the Newark Theater on Sunday last. Much favorable com- ment has been received on this phase of the educational campaign. Meetings of superintendents and supervisory forces were held during the week ended Sept. 13 for final instruc- tion and for the purpose of clearing up all questions of doubt so as to insure universal treatment throughout the sys- ^ torn, especially as regaids the matter of fare collection and the handling of disputes on the first few days of operation. No serious complaints have as yet come to the attention of the railway officials, although in some communities objection has been made that all the zones are not exactly a mile in length — tliis being due to the fact that the more important points which were made zone limits were not always exactly one mile apart, and a tolerance of 500 ft. was in general allowed in either direc- tion. Every Conductor a Salesman The Eighth Avenue Railroad, New York, N. Y., of which W. B. Yereance is general manager, sent to each of its conductors on Aug. 29 the following memorandum: This company is trying to give the pub- lic the best transportation service in this city, and it is directly up to the conductors to see that such service is given. The conductor is this company's sales- man, and we want you to realize that it is your actions that form the traveling pub- lic^ opinion of the entire organization. YOT^ are selling our patrons what we have — and no one else is doing it. If you cannot sell our goods, (our transportation), the company cannot exist, and the better pleased our customers are with your serv- ice, the greater prosperity the company (which includes you), will enjoy. Keep yourself neat, be alert, and remem- ber that a smile goes a long way. I hope that you will all realize this, and co-operate toward making The Eighth Avenue Railroad a line that will be popular with the people of New York. If you have any suggestions to make toward this end, come up and tell them to me. If practicable, we will put them into effect. The memorandum is signed by H. S. McGinness, supervisor of transporta- tion. The Eighth Avenue Railroad was segregated recently from the other properties included in the system of the New York Railways and is now being operated separately. This change, which went into effect on Aug. 1, was suit- ably announced to the public by the company and was followed on Aug. 15 by a special bulletin to the public about the plans of the company reproduced in the Electric Railway Journal for Aug. 23, page 414. New York State Mayors Confer on Fares A plan advanced by Mayor John F. Hylan of New York, aimed to defeat legislation permitting electric railways to increase fares, was turned down at Syracuse, N. Y., on Sept. 8 by the advisory council of the State Confer- ence of Mayors, representing every municipality of any size in the State. The council adopted the following reso- lution : Whereas the Mayor of New York City has directed a letter to the president of the State Conference of Mayors and city offi- cials seeking- co-operation in a campaign to pledge candidates for the Assembly to op- pose any legislation which will in effect nullify franchise restrictions limiting the rate of fare charged by street railways ; and Wliereas the letter from the Mayor of New York has been referred to the advisory council of the conference, now, therefore, be it Resolved, That we are opposed to any legislation which will give to the Public Sei'vice Commission the power to increase fares in those cities where franchises limit the rate of fares : That we believe such legislation is con- trary to the spirit of municipal home rule ; that each municipality should be permitted to determine for itself what modifications, if any, should be made in franchise re- strictions, and that each municipality can be trusted to decide such questions from the standpoint of public interest, with due regard to the property of street railways being permitted to earn sufficient revenue to maintain good service and to pay in- terest and operating expenses ; That, inasmuch as it is not a function of the conference to participate in political campaigns or to influence in any way the selection of public officials, we cannot co-operate in pledging candidates for the Assembly, but must restrict ourselves to presenting our views at the proper time to the Legislature and the Governor. Disapproval of the Hylan plan is said to have been directly due to as- surance from Governor Alfred E. Smith that he will veto any increased fare legislation not approved by the con- ference. Asks Rate Truce Governor of West Virginia Requests Utilities to Hold Applications in Abeyance Pending Conference Governor Cornwall has addressed the electric railway and other public utili- ties in West Virginia which have ap- I/lications for increases in rates pend- ing before the Public Service Commis- sion of West Virginia. He suggests that such companies temporarily sus- pend their efforts to secure increases pending the conference of the represen- tatives of industry, of labor organiza- tions and of the farmers, to be held in Washington early in October. In other v;ords, the Governor desires a truce in sc far as the settlement of rate in- creases is concerned. The letter of the Governor follows in full : The President of the United States has called a conference of representatives of industry, of labor organizations and of the farmers, to be held in early October, in an effort to work out a wage-basis, or at least to secure a better understanding and a more harmonious policy as affecting them and the public generally. In the meantime vigorous efforts are being made to stop the rise in and, if possible, to reduce, the cost of living. Pending the proposed conference and an ascertainment of the results of the Federal and State governments in their war on high prices, a tentative "truce" has been established whereby it is understood de- mands for further wage increases will be held in abeyance. I need not point out the wisdom of such "truce." As long as one element or factor, in the economic circle, continues to climb upward all the others will, in fact, must, do likewise. To stop the ascent with jus- tic^^ to one or all, all must stop together. It is unquestionably true that fares and rates of public utility corporations have lagged behind in the ascent of prices, and to the extent that many of them through- out the country are embarrassed, some facing bankruptcy. Many are applying, in this State, to the Public Service Commis- sion for the privilege of increasing rates. Your company is one of that number. As to the merits of your claim, I know nothing. It will be the commission's task to ascer- tain the facts and make the proper order. However, I do believe that during the "truce" referred to, and pending the effort to stabilize the industrial situation through- out the country, all public service corpora- tions should agree likewise to declare a "truce" and hold in abeyance their applica- tions for permission to increase rates or fares, as the case may be. If the wage-earner is willing to wait the outcome of efforts to bring down the cost of living, public service corporations should be willing to wait also, no matter how urg- ent their requireriients or how pressing their needs. In this crisis there must be full co-oper- ation between all interests. A little pa- tience and forbearance will go a long way toward helping to solve the situation. All good citizens, whether wage-earners or corporation heads, will be willing to make any reasonable sacrifices to aid in the res- toration of normal conditions. An. an- nouncement that all public utility com- panies in this State had temporarily sus- pended their efforts to secure increases would, in my judgment, have a very help- ful effect, psychologicaly, at least. May I inquire whether your company is willing to join in such an announcement? Register Finding at Boston The arbitration board appointed to adjust the dispute on the Eastern Massachusetts Street Railway, Boston, Mass., over the use of the Rooke regis- ter has handed down a finding to the effect that the register shall not be used on open cars of the running board type after Jan. 1, 1920, but that it may continue to be used on all other types of cars at the discretion of the company. 546 Electric Railway Journal Vol. 54, No. 11 Tang-ible Results Expected Fare Matters in New York City Appear Now to Be on the Way to; Definite Action Events seem to be moving fast to- ward a point where tangible results may be expected in connection with the fare matter in New York City. On Sept. 7 Mayor Hylan wrote to Public Service Commissioner Nixon asking him specifically as to the intended pro- cedure of the commission with respect to the application of the Manhattan & Queens Traction Corporation for an increase in fares. On Sept. 8 Judge Mayer, under whose jurisdiction are the receivers of the Brooklyn Rapid Transit Company, the New York Railways and the Interborough Con- solidated Corporation, made public a memorandum disclosing the serious financial situation confronting the com- panies. On Sept. 9 Public Service Commissioner Nixon asked the Mayor if he would not "with an open mind call a conference that will be of so earnest a character that all phases of the situation may be recognized and a satisfactory solution arrived at." Meanwhile Governor Smith and Mr. Nixon were in conference. The only statement that followed this talk was that the Governor had said the fare matter was altogether up to Mr. Nixon. Nixon Restrained by Court As for the Manhattan & Queens Traction case, referred to first, Mayor Hylan made good his threat to institute court proceedings to prevent the com- mission from granting further fare in- creases, as Corporation Counsel Wil- liam P. Burr on Sept. 8 obtained from Supreme Court Justice Wagner an order to show cause why Commissioner Nixon and the receivers of the Man- hattan & Queens Corporation should not be prohibited from taking any fur- ther action in the application of the line for an increase in fare. Justice Wagner, in the order, which was return- able on Sept. 12 stayed all proceedings by Commissioner Nixon and the re- ceivers, thus effectively blocking any decision being made at the hearing- called by the commissioner for Sept. 9. Judge Mayer included as part of his statement to the press the full con- clusions of Stone & Webster. The en- gineers hold that "upon the present basis of prices for materials and sup- plies, rates of wages, and fares there is no hope that the elevated and subway lines of either borough will earn in- terest upon the companies' investment in the subways for many years to come, if ever." The court says it seems an obvious duty "that plans should be worked out for determining the per- manent status of the transportation companies and their legal and financial relations to the state and the munic- ipal government." In his letter asking the Mayor for a conference Mr. Nixon outlined the readjustment plan which he has in mind for the companies as follows: 1. Kach of the present transit systems to be simplified by tlie consolidation or merger of the constituent companies into one rail- road comijany. 2. All holdling companies, not railroad companies, to be abolished. 3. Leases of roads to be terminated. 4. Perpetual franchises to be changed to franchises limited to fixed periods, within city charter limitations, or to what are known as indeterminate franchises. 5. Values of property to be arrived at in such a way that the determination shall be unquestioned. 6. The city to have the option of acquir- ing the properties within a fixed period at an agreed valuation plus the cost of addi- tions, extensions, and improvements. It may be advisable to provide for the amor- tization of purchase price out of earnings. 7. A flexible fare to be established where- by fares shall be automatically adjusted to meet the cost of service, together with a reasonable return to capital upon the agreed fixed valuations and upon the cost of additions, extensions, and improvements. The variation in fare to be secured by maximum and minimum limits in a surplus fund. Only by such means can ultimate lower fares be secured. Auburn, N. Y., has a fare situation. There is nothing particularly new in that, but there is something new in the method of approaching the matter adopted by the public authorities of that city. Once before did the local electric railway, the Auburn & Syra- cuse Electric Railroad, apply to the city tor permission to increase fares. In that instance the company desired to charge a 6-cent fare in Auburn. Be- cause of franchise restrictions the com- pany's application came within the Court of Appeals decision in the Quin- by case. The Auburn authorities, how- ever, waived the franchise restrictions and submitted the matter to the Public Service Commission for determination. On Dec. 31 last that commission au- thorized the company to charge 6 cents. Relief Must Be Granted The 6-cent fare has proved inade- quate. Nov/ comes the company with a request to the Council for permission to charge 8 cents. In consequence City Attorney Richard C. S. Drummond was directed to report on the subject. Mr. Drummond has presented the results of his study to the Council in two install- ments, one on Aug. 26 and the other or Sept. 1. Mr. Drummond in his preliminary report said that the figures already sub- mitted by the company to the Council in support of its application apparently made a case for the relief sought. It is to the details of his study of the subject, however, that the greatest in- terest attaches. Briefly stated, he finds the company confronted with an insist- ent demand on the part of the employ- ees for a substantial increase in wages, and with no funds or the prospect of revenue sufficient to pay the increased wages at the present rate of fare. Mr. Drummond says that the question that 8. The city to have a representative upon the directorate of all companies. 9. The readjustment of preferentials and possible refunding of certain loans and advances to be secured in the order in which returns are paid on city bonds, so that at least substantial blocks of such bonds may become self-supporting and so automatically freed from the debt limit. Meanwhile the Mayor's Non-Partisan Vigilance Committee has replied to Judge Mayer. Through its secretary the comrnittee said in conclusion: If Judge Mayer means by the some- what ambiguous tenor of his memorandum to imply that he is willing to sanction abrogation of existing contracts between the city of New York and the traction com- pany, guaranteeing a 5-cent fare to the traveling public, his individual and peculiar construction of the law ought to be set forth in plain words and not by innuendo. When it is remembered that the traction properties referred to by Judge Mayer have been the football of crooked promotion for over two decades, the alarmist qualities of the Stone & Webster figures are dissipated. Payment of interest on "guaranteed leases" at from 7 to 22 per cent make up a large portion of the deficit predicted by Judge Mayer's accountants. If the Judge and his experts have for- gotten the stock watering exploits of the Wideners, the Whitneys, the Bradys, and others, the public has not. confronts the people of Auburn is whether they feel that the present de- mand made by the employees of the company for an increase in wages is justifiable. He states the issue clearly thus : The time has approached when the pub- lic itself must face issues of this sort, come to its own decision, and announce without evasion or timidity the course it desires its oflicials and representatives to take. The time has gone for camouflage, and self deception and demagoguery. The situation must be honestly faced and hon- estly handled. It is generally conceded that the opera- lion of electric railroads is now and for some years past has been unprofitable. The credit of the roads is gone. Investors will 110 longer purchase electric railway secur- ities, the companies can no longer borrow money. Our own company is in this exact situation. The present management of the -Auburn Company is skillful and efficient. Its expenses have been pared down to the bone, even below the point of prudence. Conditions are bound to get worse rather than better, unless additional revenue can be supplied. By law, in common sense and in good morals the company is entitled to a return fo'- the service it renders the public. The Council cannot avoid responsibility in the matter, but neither can the public. The public must consider, discuss and decide, and it should advise the Council. If addi- tional money is not provided the conse- quences are clear and certain. In the continuation of his report pre- sented to the Council on Sept. 1 Mr. Drummond calls attention to the figures of receivership and the other data on electric railways published in the Liter- ary Digest for Aug. 23. He says that the imagination may profitably be al- lowed to work on the spectacle of the city of Auburn trying to exist without its present electric railway system. That motor buses and jitneys could ever effectively take the place of the electric railway, he holds, is inconceivable. A 10-cent fare would not at all cover the cost of such service. He says that if the public approves of the demand of the company and of the granting of the demand, it should then honorably prepare itself to pay Face the Facts Auburn Official Points Out in Unmistakable Terms the Consequences of Delay September 13, 1919 Electric Railway Journal 547 the price. Unless the public announces itself to the contrary in no uncertain terms the representatives of the public in public office may assume, upon the basis of recent experiences, that the public is either in favor of the granting of the wage demands, or at least feels that the granting of these demands is inevitable and hence that it is prepared to accept the consequences of such ac- tion. In this connection he says: For a while it is to be borne in mind that the present application is being made not for tlie benefit of the company, but simply for the benefit of its employees. We may as well face the fact that we shall have to acknowledge the necessity of pay- ing" higher fares as a matter of mere self- preservation. In whatever aspects the case is considered the people of Auburn must admit the truth and address themselves to the talking of these measures which alone will avail to relieve the very difficult situa- tion that now confronts them all. A community makes nothing by com- pelling a starving railway to eke out a miserable existence. The community bene- fits only as the company is itself prosper- ous and flourisliing. Mr. Drummond says that purchase of Boston's Five-Cent Service to Be Extended The trustees of the Boston (Mass.) Elevated Railway have decided to ex- tend the non-transfer local 5-cent fare service to South Boston, beginning on Oct. 1. One line will be operated from L Street and Broadway to the South Station via Summer Street extension and the other from Dorchester Street to the South Station via Dorchester Avenue. Edward Dana, acting general man- ager of the company, announced the new service in a letter to W. H. Mc- Donnell of the street railway investi- gating commission, also stating that the company has expended about $900,- 000 to build additional track at car houses and to provide new center en- trance cars, some of which will benefit South Boston. The new .5-cent rates will deliver passengers at points within easy walk- BOSTON'S FIVE-CENT CARS ARE PLAINLY .MARKED the railway by the city would spell only cne thing — deficit. Unless a business can pay its way Mr. Drummond de- clares it milst be given up. It cannot be supported by compulsory contribu- tions by persons other than those who use its product. In conclusion he says the decision must rest with the public. The employees will not decide the ques- tion, and the company cannot decide it. Postponement and side stepping will not solve these pressing questions. Talk will not do so. The people having been informed must decide and act on their own initiative. In conclusion the City Attorney says: The final responsibility as to all these matters, of course, rests with the Public Service Commission. The Council may de- cide to leave the whole matter to the com- mission. It can refuse to do so, or it can consent to confer jurisdiction upon the com- mission to make the investigation, and to authorize the increase, if the facts of the case seem to warrant or require it. My office at the present time, as I under- stand the matter, is neither to advise nor to suggest any specific action. It is merely to advise the Council and the public gen- erally as to the general condition of affairs, and to amplify the comment that I made at the invitation of the Council on the oc- casion of its recent meeting. This I have endeavored to do. ing distance in many cases of their destinations, and are expected to some degree to lessen the volume of traffic handled on the tunnel line under Dor- chester Avenue. So far the patronage of the initial North Station-Franklin Street line has been unsatisfactorily light. Interurbans Urged for Transport- ing: Produce Widespread use of interurban trol- leys for transporting farm products to city consumers is urged in the re- port of the special grand jury which has been investigating the food situa- tion in Cuyahoga County, Ohio. The investigators find that much food goes to waste in the territory surrounding Cleveland because farmers have insuf- ficient means of shipping their prod- ucts. The report points out that devel- opment of food traffic would benefit the electric railway as well as the farmers. It says in part: The present trolley system Is only being used about fifteen hours in a day at the present time, and largely for passenger service. The remaining nine hours could be used for freight traflic in getting more food into the city. The basis of this system now exists ; for the roads have the rails, wires and powerhouses ; all that would be required is the rolling .stock and train crews.' This would add greatly to the revenues and profits of these roads at relatively small additional investment or expense. Linking the trolley freight system with the public markets would practically estab- lish: an overnight freight service from farm to market within an area of 100 miles of Cleveland. Switches into the public markets would obviate the necessity for expensive terminal facilities. This trolley freight system would be in the nature of an express service and should be justly paid for at rates higher than those for steam railroad freight service. Seven-Cent Fare Planned for Springfield Clark V. Wood, president of the Springfield (Mass.) Street Railway, an- nounced on Sept. 8 at a meeting of the City Council that a 7-cent cash fare with a 6i-cent ticket rate and a special rate of 10 cents would be established be- tween the center of Springfield and Chicopee in the near future if the ap- proval of the Massachusetts Public Service Commission was secured. The present 6-cent fare will be eliminated, but the zone system will be retained. Mr. Wood informed the Council that more than 50 cents of every dollar taken in by the company now goes to labor and that the recent 32 per cent increase in wages granted by the arbi- tration board of which H. B. Endicott of Boston was chairman will add about $600,000 to the yearly operating ex- penses of the company. Upward of $200,000 a year in revenue is also taken away from the company by jitney com- petition, which is untaxed and which operates only in the rush hours or when travel is fairly heavy. By cur- tailing or eliminating service on vari- ous unprofitable lines it is hoped to reduce increased revenues required to $450,000 a year. Mr. Wood pointed out that jitneys cannot handle the street railway traffic without unendura- ble congestion. Chicago Rehearing Begun Arguments on the motion for a re- hearing in the Chicago (111.) Surface Lines rate case were begun before Judge E. S. Smith in the Circuit Court of Sangamon County at Springfield, 111., on Sept. 9. The first day's session was taken up by the discussion of Chester E. Cleveland, special corpora- tion counsel for Chicago. He contended that the ordinance contract between the city and the company is binding and cannot be changed by the State Utilities Commission; that the company cannot depart from some of the obligations of the contract without surrendering all its ordinance rights; that the State Commission has no authority to modify a contract; and that the commission had no legal right to increase rates of fare without making full inquiry into the reasonableness of the rates. The city also proposes to insist that the surplus earnings of the company under the 7-cent fare be impounded pending the outcome of the present hearing. 548 Electric Railway Journal — ■ Transportation News Notes Lowell Fares to Be Reduced. — The trustees of the Eastern Massachusetts Street Railway have voted to establish a ticket rate of 6\ cents at Lowell, Mass. Sixteen rides will be sold for $L The flat fare will remain at 10 cents for the present. Millord & Uxbridge Wants Higher Fare.— The Milford & Uxbrido-e Street Railway has petitioned the Public Serv- ice Commission of Massachusetts for authority to increase its fares by 1 cent. The present tariff is a combina- tion of 6-cent and 7-cent units. Middlesex & Boston Fare Increases Suspended. — The Massachusetts Public Service Commission has suspended the new fare schedule proposed by the Mid- dlesex & Boston Street Railway pend- ing a public hearing on Sept. 16 to consider the necessity of the increase. A 10-cent fare unit is desired by the company. Centralia Doing Better. — The North Coast Power Company, operating the electric railway between Centralia and Chehalis, Wash., has incieased its serv- ice materially, adding several new cars to the run and improving the schedule. The city ordinance designed to put an end to jitney traffic has been put in effect, and the company reports a big- increase in traffic since the suspension of the jitneys. Eight Cents at Youngstown. — An- nouncement was made on Sept. 5 that the rate of fare on the local line of the Mahoning & Shenango Railway & Light Company in Youngstown, Ohio, would be advanced to 8 cents on Sept. 15. Although there was a deficit in the stabilizing fund on Sept. 1, the increase was not made at that time, as might liave been done under the company's franchise, which pro\ides for a service-at-cost system. Six Cents Asked for Richmond. — The Virginia Railway & Power Com- pany on Sept. 2 petitioned the Common Council of Richmond, Va., for permis- sion to charge 6-cent fares with 2 cents extra for each transfer. The petition was referred to the streets committee for action. The company seeks to establish a flat 6-cent fare, with school and work tickets abolished. The Coun- cil early this year authorized a straight .5-cent fare to the general public, work tickets at the rate of six for 25 cents, and special tickets for school children. Arsenal Workers Must Pay More. — The Tri-City Railway, Davenport, la., has announced that it will raise the fare paid by workers in the United States Arsenal at Rock Island, 111., from $2 to $2.80 for a book of forty tickets. This will mean a rate of 5.6 cents per ticket as against the present 4-cent rate. The company rejected an offer made by the arsenal officials for a 5-cent fare. The arsenal fares were not raised at the time of the increase recently allowed by the Public Utilities Commission of Illinois. Asks Eight Cents in Aurora and Elgin. — The Aurora, Elgin & Chicago Railroad, Aurora, 111., has applied to the State Public Utilities Commission for an increase in fares from 6 cents to 8 cents on the city lines of Elgin and Aurora. The petition does not affect interurban lines, which are now op- erating on a 3-cent basis. In support of the petition, it is declared that for the year ended June 30, 1919, the gross operating revenue of the company was $250,161 and the gross operating ex- penses, exclusive of taxes, $240,462. No date has been set for the hearing. Wilmington Wants Eight Cents. — The Wilmington & Philadelphia Trac- tion Company, Wilmington, Del., has announced that it will apply to the City Board of Public Utility Commis- sioners for permission to raise fares from 6 cents to 8 cents. The com- pany's decision to ask for higher rates comes as the result of a wage advance of 10 cents an hour to its employees. The carmen, who had threatened to strike unless they were granted higher pay, recently accepted the company's jHoposition for a 10-cent advance with time and a half after ten hours. Six-Cent Fare Extended in Spokane. — The Public Service Commission of the State of Washington has extended until Dec. 2, 1919, its order of April 9 last, granting the Washington Water Power Company and the Spokane & In- land Empire Railroad, which operate in Spokane, permission to charge a 6-cent fare. The commission's original order has been extended twice before owing to delay encountered in the merger of the two companies. The property of the Inland company is to be sold on Nov. 1. Mayor C. M. Fassett recently protested to the commission against allowing an extension for more than one month beyond that date. Would Refuse Seven-Cent Fare. — Retention of the present 6-cent fare is recommended in the report of Frank H. Booth, special master in chancei'y, who has been taking testimony on the i'pplication recently made by the San Antonio (Tex.) Public Service Company for a fare of 7 cents. The company was granted a 6-cent fare by the courts last year in the face of objections by the city. It now seeks an injunction restraining the city from enforcing an ordinance passed in 1918, limiting the rate of fare to 5 cents. Mr. Booth holds that the court has no jurisdiction in re\'ising rates prescribed by act of the Legislature or City Council. Judge Duval West of the Federal Court, to whom the report was submitted, is ex- pected to announce his decision within a few weeks. Three Cents a Mile on California Road. — The Railroad Commission of California has issued an order granting the Oakland, Antioch & Eastern Rail- way, Oakland, Cal., increased fares. The new rates will put the fares of the electric railway on a parity with those of the Federal roads operating in the same district, insofar as they apply to the one-way rate, which is 3 cents a mile. The company will continue to issue week-end round-trip tickets at rates considerably lower than those in effect on the Southern Pacific Railroad. It is expected that the new rates will yield about $22,100 additional revenue. It was shown at the hearing that the company's payroll had been increased 72.97 per cent since 1916, and that ma- terial costs had increased 57.7 per cent in the same period. Fare Hearing Put Off. — Petition for increased fare on the East St. Louis- Belleville line of the East St. Louis & Suburban Railway, which was scheduled for a hearing before the Pub- lic Utilities Commission of Illinois on Sept. 4, has been postponed indefinitely, pending a decision by Federal Judge English on the application by the com- pany to restrain the Attorney General of Illinois and the State's Attorney of St. Clair County from enforcing the 2-cent a mile maximum rate for inter- urban railways. A decision on the petition for an injunction is expected to be handed down from the United States District Court at Danville, 111., within thirty days. Should the injunc- tion be granted, fares in East St. Louis will not be affected, but rates on all interurban lines will be increased. No Charge for Retransfer. — All transfers between surface lines of the Brooklyn (N. Y.) Rapid Transit Com- pany will be made on the basis of a 2-cent charge for the first transfer issued and without an additional charge of 2 cents for a reissue transfer. This policy is in accordance with an agree- ment just reached between the company and the Public Service Commission. The commission explained that the company had made a wrong interpretation of the order of July 17 permitting a charge of 2 cents for transfers, and that the in- tention of the commission at that time was that the company should make no charge for retransfers. Investigation by the commission has shown that the company had been charging for re- transfers. As a result, it is said, pas- sengers were charged not only 7 cents but in some cases 9 and 11 cents. The company will at once proceed to put into effect the necessary orders to pre- vent conductors from charging for a transfer on a transfer. Six-cent Fares in Effect in Birming- ham.^— A 6-cent car fare went into force in Birmingham, Ala., on Sept. 4 under the agreement with the City Commission referred to in the issue of this paper for Aug. 30, page 454. The increased rate of fare was approved by the State Public Service Commis- sion and by Judge William I. Grubb September 13, 1919 Electric Railway Journal 549 ^of the United States District Court. The 6-cent fare applies on all of the lines of the Birmingham Railway, Light & Power Company within the old 5-cent limits. The same transfer privileges are retained with the 6-cent fare. Injunction proceedings which were filed to restrain the collection of the 6-cent fares, were called before Judge Hugh A. Locke, of the Chancery Di\asion of the Circuit Court on Sept. 4, but the hearing was pUt over to Sept. 15. The increased fare met with little or no protest on the part of the public during the first day of its col- lection. Personal Mention Making and Maintaining a Lawn Department Circular No. 49 of the United States Department of Agriculture, Wash- ington, D. C. Free. This circular will be useful to elec- tric railway men in providing material to place in the hands of shop men, sub- station attendants and others who are responsible for maintaining a credita- ble appearance of company grounds. Effective Business Letters By Edward Hall Gardner. Ronald Press Company, New York, N. Y. 411 pages. Price $2. The wide ramifications of industrial and social life owe their binding force in no small degree to the use of the mails and the universal variety of transactions executed thereby. Not only the comparatively small number of unusually important letters written by the few men at the head of a busi- ness, or the form letters that are care- fully composed for certain situations, but also the routine letters written by subordinates, are all alike representa- tives of the concern from which they issue and are capable all of becoming efficient units in the business. This is especially so with the man with nothing to offer but service. In the effective letter he will find an inexhaustible and faithful institiment. The chief purpose of "Effective Business Letters" is to demonstrate by well defined principles how effective letters are to be written. It covers the complete range of business correspond- ence— orders, acknowledgments, sales, credits and collections. The volume is not a compendium of forms, but is a logically aiTanged guide designed to show conveniently the essentials of good form and proper appearance, as determined by the rules in use in a large number of leading business houses, the letters of which have been critically analyzed in an effort to pre- sent a compact body of principles that can be directly applied in any circum- stances whether the daily output of letters represents only a few or a very large number. H. P. Harrsen Made Assistant General Manager H. P. Harrsen has been appointed assistant general manager of the Michi- gan Railway and the Michigan Railroad by J. F. Collins, vice-president and general manager, and will make his headquarters in Grand Rapids, Mich. Mr. Harrsen will take over the duties of general superintendent, that title having been abolished following the resignation of C. E. Morgan. He will have charge of all operating and main- tenance work. The chief engineer, the traffic manager, and the superintendent of equipment, as well as all traffic superintendents in the company's em- ploy v/ill report to him. The establishment of the office of assistant general manager was made advisable because of the growing im- portance of Grand Rapids and the ad- jacent territory. This district will now have the benefit of direct representation by the management. Mr. Harrsen will also relieve Mr. Collins of much detail in connection with the operation of the system, which includes more than 350 miles of interurban lines as well as the city lines of Lansing, Jackson, Battle Creek, Kalamazoo, Owosso and Bay City. Mr. Harrsen's connection with the electric railway industry dates back many years. For twelve years he was associated with Dr. F. S. Pearson as general manager and managing director of the latter's utility interests in Mexico and Spain. He returned to the United States in the fall of 1918. A portrait and a biography of Mr. Harr- sen were published in the ELECTRIC Railway Journal for Oct. 12, 1918. George L. Burr, at one time con- nected with the Stone & Webster prop- erities, has been appointed a manager of the bond department of the Guaranty Trust Company, New York City. Mr. Burr was born on Aug. 29, 1889, in Phoenixville, Pa. He was graduated from Harvard College in 1910 and from the Civil Engineering School of Colum- bia University in 1912. He then en- tered the employ of the Interborough Rapid Transit Company as a drafts- man, which position he held until he went to Keokuk, la., with Stone & Webster. In May, 1913, he was ap- pointed manager's clerk of the Hous- ton Electric Company and Galveston- Houston Electric Railway. In January, 1914, he was appointed secretary to the assistant district manager of Stone & Webster in Texas, with offices in Dal- las, Tex. In October, 1916, he joined the bond department of the Guaranty Trust Company. He became assistant manager of the bond department in July, 1918. James D. Mortimer, president of the Milwaukee Electric Railway & Light Company and the North American Company, is the subject of an article, illustrated with a portrait, in the Sep- tember issue of System. The article speaks highly of Mr. Mortimer's fair- ness in dealing with his employees, a majoirty of whom are on a profit-shar- ing basis. The writer attributes Mr. Mortimer's success in handling a num- ber of large businesses to his ability to concentrate his entire attention upon each new piece of work and to dispose of it without hesitation. Otis R. Hill, chief inspector of equip- ment and rolling stock for the Fort Wayne & Northern Indiana Traction Company, Fort Wayne, Ind., has re- signed to accept a position with the Mahoning & Shenango Railway & Light Company, Youngstown, Ohio. Mr. Hill was first employed by the com- pany in Fort Wayne in the capacity of general foreman of the Chestnut Street shops in 1913, having gained preparation for this position through long service with the Illinois Traction Company at Decatur, 111., and the Chicago City Railway, at Chicago. He continued in charge of the shops of the Fort Wayne company until August, 1917, when he entered the coast artillery service, being commis- sioned as captain. Captain Hill was sent to France in December, 1917, and participated in many of the major bat- tles from that date until the signing of the armistice. He was mustered out of the service in December, 1918, after a year's very active service over- seas, and returning to Fort Wayne was re-employed by the company as chief inspector of rolling stock and equip- ment. The Fort Wayne & Northern Indiana Traction Company has not as yet appointed a successor to Mr. Hill at Fort Wayne. Josiah Quincy. chairman of the Bos- ton Transit Department and the third of his name to have served as Mayor of Boston, died at Boston on Sept. 8. Mr. Quincy was long active in Demo- cratic politics in Massachusetts and was assistant Secretary of State dur- ing Cleveland's Administration. He was bom at Quincy, Mass., in 1859, was educated at Harvard College and the Harvard Law School, and for many years was a member of the Boston Transit Commission and otherwise active in public life. anufadures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER, SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS Aluminum Conductor Market Firm with Large Sales Wire Quoted at 371 to 38] Cents per Pound F.O.B. Manufacturer's Works, Depending on Size and Quantity The price of aluminum ingot is firm at 33 cents per pound f.o.b. manufac- turer's works. Aluminum in the form of wire for electrical conductors varies with the size of steel wire, quantity, etc. It also varies with the size of steel re- inforcement, it being understood that most of the track feeder circuits and high-tension transmission lines now using aluminum employ a composite cable, the center strand or core being a high-grade galvanized plow steel and the outer strands aluminum. The price of aluminum wire may be quoted at approximately 37J cents to 381 cents pound f.o.b. manufacturer's w^orks, depending on size and quantity. The composite price, including the price of steel, depends entirely on the relative cross-section of both metals. The prin- cipal manufacturer of aluminum elec- trical conductors reports a firm market with several large sales, both domestic and foreign. Railways in Market for Elec- tric Heating Equipment Advance Orders So Far Better Than for a Number of Seasons — Porcelain Advances 15 Per Cent According to reports received, the article which appeared in the July 5 issue, advising the purchase of heater parts for repair purposes, had its effect upon master mechanics and shop su- perintendents to the extent that a great number of orders have been filled. Those who were fortunate in placing their orders early will have escaped an advance in heater prices which manu- facturers expect will be made in the riear future. This is based on the re- port from the factories advising that the price of porcelain has been ad- vanced 15 per cent and that additional increases may be made from time to time depending upon labor conditions. It is learned from at least one manu- facturer that advance orders this year have been better than at any time for a number of seasons. Reports indicate that business picked up considerably after the first of the present year, and that sales for the first six months of 1919 are greater than those of the cor- responding period in 1918. Although r.o prediction is made on future busi- ness, a great many orders are looked for from the sale of one-man cars. Costs, of course, are higher than in 1918 and the tendency is for higher prices, as the production per man is not nearly so great as formerly. The prices of many products are only 50 per cent (ngher than pre-war prices, but a re- vision upward is expected at any time on account of the increase in price of porcelain, previously announced. De- liveries are fair and the heater manu- factm-ers are in a position to give prompt attention to all orders secured at this time. Some sales for trial purposes are re- ported, but these do not amount to a large volume except where a new heater is placed on the market, and in this case most of the sales are of this kind. At other times, however, there are few cases of experimentation excepting with the thermostatic control. Deliveries on this product continue to be good. One company advises that within the past 90 days it has placed 350 electric heater equipments with large railways m Eastern territory, and that orders for 75 thermostatic control equipments have been received from the same rail- ways. Repair part stocks are in good phape and a considerable volume of business may be placed before cold weather sets in, although- many com- panies have been forehanded in placing their requirements for maintenance re- pairs before this time. Waterwheel Market Strong and Steadily Improving Reports from Manufacturers Show Satisfactory Business This Year and a Promising Future Information has been received from several waterwheel manufacturers re- garding the condition of the market as they find it. With but one exception they all are of the opinion that the market for the year to date has been, and the present market is, in a satis- factory condition. In some cases the average of sales for the first six months of the present year has been about the same as for each of the last five years. These sales have been and are now being well maintained and in one case were increased to 10 per cent over previous similar periods. Contrary to this rather general statement of pros- perity, one manufacturer has found few inquiries and very little actual waterwheel business. During the first half year this concern manufactured for stock with a curtailed force. At present the number of inquiries received is increasing steadily and shows a decided awakening interest among both large and small users of hydraulic prime movers. Sales result- ing from these inquiries show a slight increase at the present time. In the one case where sales have not increased the cause was laid to the uncertainty of the general industrial situation. The amount of waterwheel manufac- turing capacity now being utilized varies from 30 per cent to nearly 100 per cent. This has even been exceeded in one instance wherein more equipment could be utilized if it were available. In another instance, where only one- half the shop is working, manufactur- ing is carried on for stock in the ab- sence of new orders. Excellent facilities and large capac- ity available for building waterwheels in some instances are responsible for rather short deliveries. Depending upon the size and type of the unit, the time of shipment varies from one to nine months on standard equipment. The length of time required to make shipments seems to indicate rather clearly in several instances the exact condition of the market. The outlook in general is considered satisfactory and a bright future is pre- dicted. In particular, the Pacific Coast has been referred to. More hydro- electric development is in sight there at this time than in the four-year period just ended. Much Work Under Way The passage of a national water- power bill should still further stir the market to an unprecedented extent, ac- cording to the opinion of more than one manufacturer. The fact that the only contracts that are coming through are those that are absolutely essential has been given as one cause for an outlook which is not too encouraging. Accord- ing to the preponderating opinion, how- ever, it is apparent that there is con- siderable essential work coming through. The essential nature of the project has now come to be asserted, in the case of the ordinary, every-day water-power development, in considera- tion of increasing coal prices, the scarcity and unreliability of labor, and with a view to the preservation for future generations of the coal supply, which it is already predicted will dwindle. The prevailing opinion holds out great hopes for the future once economic conditions in the country have become more normal and labor has be- come more stable and shows some de- gree of loyalty. September 13, 1919 Electric Railway Journal 551 Heavy Buying Exhausts Electrical Sheet Steel Entire Production of 1919 Sold Out and Orders Are Taken for Early 1920 Shipments at Prices to Be Set The sale of electrical sheet steel for transformers, magnetic cores, motors, generators, etc., has progressed to such an extent that production for the re- mainder of the year has already been booked to entire capacity. Conse- quently word has gone out from the mills to book no more for 1919 delivery. This is going to leave some regular cus- tomers with short supplies, but with sufficient warning issued manufacturers of the sheets did not feel that they could keep their books open to accommodate timid customers. There are certain grades of steel, not so commonly used, on which deliveries have increased up to about nine weeks, and the tendency here too is to lengthen shipments. One mill is booking orders for the first quarter of 1920 only at the prices which shall prevail at that time. There has been no price change for this com- modity since March 21, but it is ex- pected that in a few weeks this mill will be able to anticipate and quote a price on which it will book orders for early 1920 delivery. There is no assertion that there will be an advance, but the tendency is in that direction. The steel workers have declared a strike for Sept. 22 on the United States Steel Corpora- tion, and they state it can be prevented only by a backdown by that corpora- tion. So the chance for a rise in price is not an impossibility. Word comes from one mill, however, that it is not selling electrical sheets for shipment next year, and it is not pre- pared to make any statement with re- spect to prices for 1920. Rolling Stock Penna-New Jersey Railway, Trenton, N. J., is reported to be in the market for a number of cars. Terre Haute Traction & Light Com- pany, Terre Haute, Ind., has ordered twenty-five safety cars from the Amer- ican Car Company. Orange County Traction Company, Newburgh, N. Y., has placed an order with the Wason Manufacturing Com- pany for two Birney safety cars. Interstate Public Service Company, Lndianapolis, Ind., plans the expendi- ture of approximately $350,000 tor equipping its line between Indianapolis, Ind., and Louisville, Ky. Up-to-date steel coaches will be placed in service and all old cars will be made over into chair cars and trailers. Springfield (Mass.) Street Railway, has specified the following details for ten safety cars recently ordered from the Wason Manufacturing Company. Number , 10 Date of order.. .July 17, 1919 Date of delivery Oct. 1. 1919 Builder of car body Wason Mfg. Co. Type of car 18 ft. safety cars Capacity 35 Weight : Car body 8,9 30 lb. Trucks 4,670 lb. Equipment 1,900 lb. Total 15,500 lb. Length over all 28 ft. J in. Truck wheelbase S ft. 0 in. Width over all 8 ft. 2 in. Rail to trolley base 9 ft. 9i in. Body All steel Interior trim Cherry Roof Arch Air Brakes G-E.' CP. 25 Armature bearings Friction Axles Hammered Steel Bumpers 3M No. 4 channel iron Car signal Faraday Car trimmings Bronze Conduits Alphaduct Control K-63 Couplers Draw bar — Flat iron Fixtures Curtain Supply; Rex rollers Curtain Pantasote Signs Hunter illi^minated Door mechanism Safety Car Devices Wheelguards H. B. wheelguards Gears and pinions Nuttall Hand brakes Amer. Car (Drop handle) Heaters Consolidated truss plank Headlights Crouse-Hinds Journal boxes 3 in. x 6 in. Lightning arresters Westinghouse Motors, type and number 2 West, No. 506-A-2 Motors Inside hung Enamel Sherwin Williams Registers International No. 7 Sai.ders Gal. iron; Ohio Brass valve Sash fixtures Edwards Seating material Wood slats Springs Semi-elliptic and coil Step treads Peralun Trolley catchers 2 P. Catchers Trolley base U. S. No. 13 Trolley wheels Wheels Trucks Brill 79-E Ventilators Brill Exhaust AMI eels Steel 26 in. Special deVices : Arthur power-saving recorder. Railway I'tility thermostats Franchises Recent Incorporations Perry & Gulf Coast Traction Com- pany, Perry, Fla. — Incorporated to con- struct a line to connect the towns along the gulf coast, about 40 miles. The route will include Hampton Springs, south to the Gulf of Mexico and the Steinhatchet River. Capital stock, $500,000. Officers: Ellis Bartholomew, president and general manager; S. A. Greiner, treasurer; R. C. Flack, W. S. Forrester and E. E. Sadler, vice-presi- dents. Davenport, Springfield & Southern Railroad, Belleville, 111. — ^Articles of in- corporation of the Davenport, Spring- field & Southern Railroad were filed for record at Belleville, 111., on Sept. 3. The company proposes to build electric roads from Rock Island, 111., to Pinckneyville, from Pinckneyville to Belleville, from Decatur to Edwards- ville, and from Benton to Murphysboro. The capitalization is $100,000 fully paid. The incorporators all reside in Chicago. Moore Haven, CFla.) Railroad. — Recently chartered with a capital stock of $50,000 to construct a line from Moore Haven to Ritta, Fla., along the western and southwestern shore of Lake Okeechobee, about 30 miles. It is reported that work will be begun immediately and will be completed by next spring. After this road is finished an extension will be built to Kissimmee. Among those interested are Capt. J. O. O'Brien, Moore Haven; B. F. Welles, Arcadia, Fla., and A. C. Clewis, Tampa, Fla. Jopiin, Mo. — Plans are being consid- ered by the city and county officials of Jopiin for granting a franchise to 0. B. Witmer and his associates to construct and operate an electric rail- way system to Witmer Park, south of Jopiin. Union Traction Company, Anderson, Ind.^ — The Detamore power plant at Portland, Ind., belonging to the Union Traction Company of Indiana, (Ander- son, Ind.) has been offered to the city of Portland for $18,000. This purchase has been approved by the citizens of Portland and the factory owners, who have been demanding more light and power current. Fort Worth, Tex.— E. P. Turner and associates of Dallas, Texas, has been granted franchises for the construction of two interurban lines out of Fort Worth, one to Denton, a distance of about 33 miles, and the other to Grape- vine and Irving, to connect with the line now being built out of Dallas at Irving. According to Mr. Turner, the interurban lines will form a triangle, with the angles at Fort Worth, Denton and Irving. Track and Roadway Oakland, Antioch & Eastern Rail- way, Oakland, Calif. — The Oakland, Antioch & Eastern Railway has ap- plied for authority to build a spur track on Shafter Avenue, crossing Forty- first Street, to make a connection with the company's paint ,=hop. The com- pany also wants to cross the highway with a spur at a point 100 ft. east of the station of Bancroft. Indianapolis (Ind.) Street Railway. — The Indianapolis Street Railway's board of directors has voted to accept an off'er of the Union Traction Com- pany of Indiana to sell for $95,000 its tracks and rights from Fairfield ave- nue to Forty-Sixth Street in College Avenue, Indianapolis. The distance is a little more than a mile, and there are double tracks. A "Y" will be con- structed at Forty-sixth Street for turn- ing the local cars. The board directed that bids be i^eceived for the special work, which it was estimated would cost about $15,000. Cincinnati (Ohio) Traction Company. — Street Railway Director W. C. Culkins has approved the expenditure of $44,762 by the Cincinnati Traction Company to complete the extension of the Sixth Street line over Meeker Street to the Hopple Street viaduct and over the viaduct to Beekman Street. Oakville, Ont. — The survey has been completed for the route of the proposed hydro-railway line from Toronto to Hamilton. The line will closely par- ifllel the Grand Trunk Railway from Toronto to Clarksons and then in a southerly direction to the eastern 552 Electric Railway Journal Vol. 54, No. 11 boundary of Oakville. From the latter place the line will extend to Hamilton by a route north of Burlington, saving several miles over the present radial line. It is expected constinaction will be begun before the end of this year. F. A. Gaby, Toronto, is chief engineer of the Hydro-Electric Commission, 190 University Avenue, Toronto. St. George, Ont. — A deputation from St. George will request the Hydro- Electric Power Commission to con- struct the proposed Hamilton-Gait radial through the village. Toronto (Ont.) Civic Railway.— The ratepayers of Ward No. 7 have re- quested the city council to extend the civic car lines through the Runnymede- Annette district, taking precedent over extension along Bloor St. through the Runnymede-Jane district. Hershey, Pa. — Announcement has been made by the Hershey Chocolate Company that plans are being ar- ranged for the complete electrification of the company's private railroad, in connection with other extensive im- provements and additions, which were financed recently through securities of- fered for public subscription. Dallas (Tex.) Railway.— The City Commission of Dallas has ordered the Dallas Railway to reconstruct its tracks on Forest Avenue form Meadow Street to Second Avenue, using 103 lb. rails on wooden ties and concrete base. Bithulitic pavement will be laid be- tween the rails. Power Houses, Shops and Buildings Iowa Southern Utilities Company, Center\ille, la. — The Iowa Southern Utilities Company has closed 100 con- tracts for electric power in Blakesburg, la., and will make a 12-mile extension of transmission line to give service there. The line will be completed De- cember 1. It will run from a point north of Moravia, la. Public Service Railway, Newark, N. J. — The Public Service Railway, Newark, N. J., has constructed a pay- as-you-leave terminal at the two Gloucester, N. J., shipyards for use under the new zoning system. Trenton & Mercer County Traction Corporation, Trenton, N. J. — Flames on Sept. 3 caused a slight loss at the power house of the Trenton & Mercer County Ti-action Corporation, Trenton, N. J. The flames reached the roof. The blaze did not interfere with the service. Sistersville & Martinsville Traction Company, Sistersville, W. Va. — The Sistersville & Martinsville Traction Company, formerly the Union Trac- tion Company, has leased a building or Wells Street, Sistersville, which it will use as an office, waiting-room and repair department. The company's present quarters are inadequate for its needs. Trade Notes Western Electric Changes George Hull Porter, who has just been appointed railway sales manager of the Western Electric Company, was born in Danbury, Conn., in 1883, and received his education at the Mount Pleasant Military Academy in Ossin- ing, N. Y. Since 1902 he has spent practically all of his time in the elec- trical industries, becoming a member of the Western Electric Company's organization in April, 1908, as a steam railway salesman connected with the Chicago ofiice. Some time after he be- came Western manager of the railway sales department. Mr. Porter, in ad- dition to being president of various railroad and electrical associations and chairman of civic societies and com- mittees, has served on the staflf of the Quartermaster General with a com- mission of captain. A. G. Nabors, who has been with the company since 1905, is now central district manager of pole line material. He was formerly at New York, Philadelphia and Pittsburgh. E. H. Waddington has recently been made Western district manager of the line material department. He is presi- dent of the St. Louis Electrical Board of Trade and joined the company in 1910. F. W. Swayze, who was first employed in the auditing department and has been in the company since 1904, is Eastern district manager of the line material department. Chicago Pneumatic Tool Company announces the appointment of Fred Gehbauer, as special Navy Yard repre- sentative, with headquarters at the com- pany's Philadelphia Office, 1740 Market Street. Dickey Steel Company, Inc., Wool- worth Building, New York, N. Y.. has been appointed sales representative for New York and Philadelphia districts of the Worcester Pressed Steel Company, manufacturer of electrical sheet steel. Duff Manufacturing Company, Pitts- burgh, Pa., manufacturers of lifting jacks, announces the appointment of John Kopf as manager of its engi- neering department. Before joining this company, Mr. Kopf was with the Bureau of Aircraft Production, Day- ton, Ohio. Chicago (111.) Pneumatic Tool Com- pany announces the removal of its Cin- cinnati office from the Mercantile Build- ing to the Walsh Building, Pearl and Vine Streets, where a service station with a complete stock of pneumatic tools, electric tools, air compressors, oil engines, rock drills, and repair parts will be maintained. Ohmer Fare Register Company, Day- ton, Ohio, has recently leased and is now installing thirteen complete equipments on the cars of the Mahoning & She- nango Railway & Light Company, run- ning between Youngstown & Warren, Ohio. The system of zone fare collec- tion on this route is described on pages 327 and 328 of the Aug. 16, 1919, issue of this paper. National Conduit & Cable Com- pany has issued an estimated six months' income account for the period ended June 30, 1919, showing net sales of $4,760,150 and costs and expenses of $5,156,964, making the loss from oper- ation .$396,814. The account also shows that this was reduced by $62,066, which was itemized as other income, while the total loss for the period after the addi- tion of taxes, interest, depreciation and other charges totaled $643,296. This compares with a loss of $394,468 for the corresponding six months of 1918. F. C. Hibberd is visiting the United States in behalf of G. D. Peters & Com- pany, Dean's Yard, Westminister, Lon- don, England. Messrs. Peters are among the leading electric railway manufacturing and equipment com- panies of Great Britain and have long- held the European i-epresentation of Hale & Kilburn seating. Mr. Hibberd is looking into the availability of other American products for the foreign market and is also prepared to arrange for the manufacture and sale of British devices in this country. His head- quarters are the New York office of Hale & Kilburn, 30 Church Street. Bcnney Vise and Tool Works, Inc., Allentown, Pa., announces that Edward R. Mason, who has been relieved of active duty as Lieutenant-Commander of the .United States Naval Reserve Force,' has been made sales manager and will handle the sales of drop forg- ings manufactured by this company. Previous to Mr. Mason's entry into the Navy he was successively, vice- president. Porter & Berg; manager of the New York office. Electric Service Supplies Company; president of the E. R. Mason Company, Inc., and as- sistant general sales agent of the Ohio Brass Company, Mansfield, Ohio. New Advertising Literature Underfeed Stoker Company of Amer- ica, Chicago, 111.: Circular on new type of Jones automatic underfeed stoker. R. Thomas & Son Company, East Liverpool, Ohio: Circular on wire-, stringing fixture using nail-assembled knobs. Westinghouse Electric & Manufac- turing Company, East Pittsburgh, Pa.: Catalog No. 38, a sixty-four page illus- trated publication which describes its small motors and generators. S. F. Bowser Company, Fort Wayne, Ind., has issued a folder on its leak- proof storage tanks. The leaflet can be folded to show one, two, three or four tanks for different kinds of oil. Locke Insulator Manufacturing Co., Victory, N. Y. : Illustrated booklet on insulator design, testing and descrip- tions of the parts and use of all types of low-tension and high-tension insu- lators. Electric Railway Journal Consolidation of Street Railway Journal and Electric Railway Review Volume 54 Ncw Yofk, Saturday, September 20, 1919 Number 12 ( 5rp ^4 19 \ The Policemen's Strike in Boston THE action of the Governor of Massachusetts in the policemen's strike in Boston was the only one possible. The people of this country are not willing to intrust the security of their lives and property to the custody of any body of men who conspire to build up an imperium in imperio to which they propose to transfer their allegience. The love in America for in- dividual liberty is so great that the people in the past have many times been lenient with the transgressions of organized labor against order. But to give up all con- trol of its law enforcing organization to an outside body, as was proposed in Boston, would be practically to give up the fundamental principle on which our govern- ment is based, or government by the people, in favor of irresponsible autocracy. We hope to see the time when a strike on a public utility will be as rare in this country as that of policemen now promises to be. Look Into the Bus! TO THE MAN brought up on the rail, a dispassion- ate view of the merits and demerits of the motor bus is rather difficult. Possibly a prime reason for this is that his first acquaintance with the bus was as an unfair competitor. Thus he came to despise the bus quite as much as he did the pirate who ran it. It is high time, however, that railway operators should look at the bus in a purely business way, especially as regards the development of new traffic in suburban dis- tricts, where there is now no trolley line. In the old days, when an extension was under consideration, whether for an additional fare or for the same fare, there was no way to give the service except to put down rails. Conditions are different today because both better suburban pavements and self-propelled vehicles are available. A company need not now undertake a large initial investment which may or may not prove success- ful to test out the traffic. It is necessary only to buy as few buses as the business there warrants. Should the dreams of the realty operators fail to come true, the railway will not be out even the price of the buses, since the latter can be sold or transferred to other service. On the other hand, if the business does grow, then a 100 per cent railway extension is in order unless the people served are willing to continue paying the higher rate that bus operation calls for. In considering the possibility of the bus as an aux- iliary to electric railway service, the operator would do well to study the inter-operation of street railway and bus services in Great Britain. On more than one prop- erty in that country, the bus and the car cover precisely the same route up to a given point, and beyond that point only bus service is available. As the bus is ob- viously intended for the extreme suburbanite, the short rider who ought to take the car is kept off of the bus by the application of an extra high short-distance fare! The electric railway man will be glad to hear that the most experienced operators of these joint services are well aware of the greater economy of the street railway, but they are equally aware of the greater flexibility of the bus which permits it to serve the fluctuating needs of the public in a way impossible to rail traction. In- stead of considering these two popular-priced means of transportation as opponents, the British operators large- ly believe that they are complementary. Hence we see that in the electrification of the Edinburgh Municipal Tramways, for example, provision is also made for cer- tain bus routes. In America, a number of electric railways are oper- ating buses through separate companies. The San Fran- cisco Municipal Railway prefers small bus losses to large railway losses, and the Seattle system is planning to follow the same policy of developing new territory at minimum cost. As for entirely independent bus com- panies, the large properties of New York and Chicago and the proposed service in Detroit give ample warning that electric railways must seriously consider the logic of putting all popular-price transportation under one co-ordinating management to avoid wasteful competi- tion which, in the end, must be paid for by the investor and the rider. Keep the Supply Men in Mind in Dating Conventions DISCUSSING the matter of convention dates with an experienced supply man, at the last convention of the American Railroad Association, mechanical section, the writer had impressed upon him the fact that the-con- venience of manufacturer representatives has not been considered as fully as it might be in selecting dates for conventions. This applies particularly to the sectional associations, although the same principle applies to the gathering of national bodies. The point is this: At present-day conventions the supply men are not only in considerable evidence but sometimes they form the majority of attendants. These men frequently are obliged to attend a great many conventions, traveling from section to section. Hence, when convention dates coincide, overlap or come in too close juxtaposition, the supply men are hard put to it to get around. The rail- way men have the advantage in that each does not at- tend the meetings of more than one or two associations, as a rule, whereas the supply man attends a very great number in the course of a year. The manufacturers are receiving increasing recogni- tion in all of the electric railway associations. It is in line with this tendency that they should be remember- ed when the convention dates are selected. 554 Ei-ECTRic Railway Journal Vol. 54, No. 12 Get Better Acquainted With the Engineering Manual THE past two or three years seem almost like a blank when considered from a standpoint of engineering progress. These years are now past, however, and the men who are responsible for the maintenance and development of the physical part of the electric railway plant must prepare themselves for strenuous days to come. One of the best ways of doing this is to study the past work of the American Electric Railway En- gineering Association, particularly as epitomized in the Engineering Manual. Realizing how difficult it is for a man who has not been in close touch with the Engineering Association work as it has progressed step by step fully to ap- preciate what has been done and what is the present status of the work, the Electric Railway Journal has arranged to have prepared a number of digests of the situation with respect to several salient aspects, basing these upon the Manual, the Proceedings of the Association and personal knowledge of the subject. Sev- eral of these digests are contained in the present issue and others will follow. There is time to study these abstracts carefully before the convention, and such study will furnish an excellent preparation for taking part in the discussions at Atlantic City; but even if the reader does not hope to get to the convention he should familiarize himself with the abstracts just the same so that he can follow the reports of the meeting intelligently. As has been mentioned before, the standards com- mittee is setting out on a campaign to popularize the association's standards, recommended practices and mis- cellaneous methods and practices. The publication of these abstracts by the Journal should contribute to this end. Maintaining Equipment On Small Roads MOST of the information which we receive for publication regarding the maintenance of car equipment and shop practices comes from the larger railway properties. Much of it, however, has to do with methods and practices which can readily be adapted to any system, and it is published with the idea that it may suggest some beneficial procedure for rail- way properties that do not have the facilities for carry- ing out the suggestions in their entirety. The problem confronting many small roads is not how to carry on the maintenance work on their equip- ment in the best manner, but rather how to keep the equipment in proper repair with the facilities which are available. It is comparatively easy to carry on work efficiently where the latest tools and equipment are provided, but the master mechanics of small rail- ways are governed more by what they are able to do than by what they would like to do. The cost of any operation depends to a large extent on the frequency with which the operation is performed. In many cases where special equipment would enable the men to per- form the operation more quickly or efficiently, if the use of these machines would be confined to but a few hours a month, the cost would not be warranted. The removal of armatures from box-frame motors will serve as an example. A special machine will re- move the armatures from these motors so that the frames can be shifted clear of the armatures in a very few minutes and can readily be lifted out of place by a crane. But, consider a road having but twelve box- frame motors which would require such a special ma- chine for removing the armatures. If these were over- hauled once every year, this would mean that the armature-removing machine would be in use on an average of but once every month, and for such in- frequent use the extra investment would not be war- ranted. On the other hand, it is false economy for small roads not to use machine tools and other labor-saving devices, when these can really be employed to advantage, simply because it is difficult to find the money with which to buy them. What is wanted is "long-run" economy, and many a device will "buy itself" in the course of a few months or years if only given a chance. In deciding on the most economical methods for main- taining the equipment of small properties, master me- chanics find the "load factor" in the use of shop equip- ment an important consideration. A knowledge of the latest and most approved methods of carrying on the work on other systems will aid in the choice of the method best adapted to the local conditions, although direct imitation of the practice of others may not be desirable or practicable. Two Important Meetings at Atlantic City AMONG the many important papers and sessions ^scheduled for the coming Atlantic City convention, two that look toward an extension of the association should not be overlooked. These are the special meet- ings called for the assemblage of the publicity agents on the one hand and purchasing agents and store- keepers on the other. We are very glad to see this step taken. As far back as before the war an effort was considered by each of these two groups to form an organization, and some informal meetings have been held by the publicity agents, but the cessation of con- vention activities generally during the war made any more definite action in either case impracticable. Now the special reasons which make such meetings especially desirable at this time are set forth in letters published elsewhere in this issue by Leake Carraway of Norfolk, Va., and E. E. Stigall of Kansas City, the chairmen appointed by President Pardee respectively for the publicity agents and for the purchasing agents and storekeepers to draft programs for the meetings at Atlantic City. To these statements but little can be added. It might be said, however, that in the case of each group the conditions at the present time are such that greater good can be accomplished for the industry than ever before. So far as the publicity agents are concerned, it is recognized that the fare question is largely a question of public education, and with the wealth of material on electric railway conditions produced at the federal hear- ings at Washington, the publicity agent is of more im- portance to a company than ever before. In the same way, at no recent period, if at all, in the history of this country have manufacturing conditions and prices undergone so many changes. All this means that both the purchasing agent and the storekeeper must be more than ever in touch with both the market situation and railway operation, so as to obtain, on the one hand, the September 20, 1919 Electric Railway Journal 555 lowest prices possible, consistent with quality, and on the other hand, to avoid carrjdng in stock apparatus which will become obsolete. The form of permanent organization to be adopted at Atlantic City by both of these groups is yet to be determined, but after all is secondary to a definite plan by which the officials can get together each year. We hope for a large attendance of both classes of officials at the convention. Should We Lessen First Cost and Increase Maintenance Cost of Track? THERE has been a disposition in some quarters to reach what we consider an incorrect conception of J. B. Tinnon's suggestion, made at the recent meeting of the Illinois Electric Railways Association, to the effect that a cheaper form of track construction might be adopted at a saving of say $5,000 per mile provided that the $5,000 were set aside for expenditure in maintenance of the track in addition to the annual sums now allotted for maintenance. In the first place Mr. Tinnon voices a very well known fact when he implies that an insufficient amount of money is now expended for maintenance. Electric rail- ways have always accumulated more "deferred main- tenance" than a proper maintenance standard would warrant. This in turn has been due primarily to the fact that their incomes were never adequate to permit a main- tenance standard of say 75 or 80 per cent new. In tho second place, paved track maintenance is more costly than open track maintenance and about 60 per cent of our mileage is in paved streets. In the third place extraordinary maintenance or renewals charges have often been forced upon the companies by city paving projects which have tended to require an abandonment of track good for 2 or 3 or even 5 years before its time, because it would be unwise newly to pave a track with a 10 or 15 year pavement when the track would wear out long before the pavement. Extraor- dinary maintenance charges of this kind are very apt to force deferment of other badly needed expenditures. We heartily agree with Mr. Tinnon's statement that the war has taught track engineers to conserve and that the maintenance engineers have done wonders in rehabilitating track which has often seemed fit only for the junk pile. But the fact that we have learned how to economize should not be an argument in favor of building something comparatively cheap with a view to spending the first saving in later efforts at patching it up. One may purchase a cheap suit of clothes and patch the holes from time to time, but the patches do not look neat and eventually more money will have been spent in patch costs than a first-class, durable suit would have cost. We do not believe Mr. Tinnon meant that we should do this, because he is right when he says that expen- sive types of construction have often been chosen by the blind method of following the leader without any consideration as to whether the expenditure could be afforded or whether the type of construction would meet the conditions under which it would be used. In other words, the smaller companies have often chosen the heaviest metropolitan type of track construction for use in a small city without much consideration of eco- nomic possibilities. This is merely a repetition of what has been going on since the first electric railways were built. It is high time that more real engineering study be applied to the design of electric street railway tracks, and the work calls for engineering talent of no mean order. Mr. Tinnon has called attention to a problem which demands the closest attention and there is no question but that a type of track construction can be designed to meet present-day needs, as well as all of the numer- ous .unforeseen contingencies of twenty to thirty years of life, which will show a lesser annual maintenance cost than we have been accustomed to even under de- ferred maintenance conditions. It does not follow that the cost per foot new will be any less than heretofore even though this cost be based on pre-war price av- erages. Meanwhile, a pertinent question may be asked: Does anyone know the actual maintenance cost per foot per year for any particular type of track over a period of even five years? The so-called permanent way is a misnomer. There is no such thing, because permanency is a relative term. One of the objects of track design, therefore, should be to determine upon and try to meet a predetermined period of life or per- manency. To do this properly may not lessen first cost. In the very nature of the thing a track is subject to wear, and because it is made up of so many variable elements subject to action of forces not under much control, it is inevitable that a certain amount of main- tenance will be necessary. The question of design resolves itself into one as to what type or types of track (for there must be some variations) will develop the least average annual main- tenance cost per foot for a given set of conditions. At present we have nothing to set as a mark to reach as a reasonable minimum annual cost except the very high costs for track maintenance now obtaining. There is a crying need for such information, which neither the ac- countants nor the maintenance engineers seem able to supply. To return to design for a moment, it may be said that the items of soils, their bearing power and drainage, are more and more coming into view as factors to be reckoned with not only in steam-road track design but also in the design of electric railway tracks, no matter where located. When track engineers begin to give more attention to the soil and its drainage we may ex- pect to find better and more economical track construc- tion on electric railway properties. Look Out for Next ff'^eek's Issue! It will be our annual "Convention Number" and will be devoted to the subject " Selling' Tj^ansportation " 656 Electric Railway Journal Vol. 54, No. 12 Selection of Rails for Electric Railway Service The Author Discusses Some Theoretical and Practical Matters Which Should Be Considered When Selecting Rails for Use Either in Private Right of Way or in Paved Streets By R. C. cram Engineer Surface Roadway. Brooklyn Rapid Transit System WHEN new track or reconstruction of old track is under consideration, the selection of the rails to be used presents a problem which requires very careful study. At first thought it may seem that it is only necessary to turn to a rail catalog and pick at random one of several rails of a given weight or type. However simple it may seem, the matter is very complex and there are a large number of factors which must be considered before a decision is made. In the first place there is the general question of location with respect to whether the rails are to be installed upon a private right of way or in a public thoroughfare. The answer to this question will deter- mine whether a standard section (low T-rail) or some form of girder rail is to be used. The roads located acter of the roadbed with respect to the bearing power of the soil and the kind of ballast and depth used to distribute the loads from the ties have a larger in- fluence in determining rail selection than is usually supposed. When the question of rail strength is under consid- eration, not only the stresses in the rail and the ability of the steel to resist them must be taken into account but the proportions of the rail must also be such that it will distribute the wheel load to the ties in a way which will not overstrain any part of the substructure. The mere fact that a rail will not break under a given load will not permit its use if, through not being stiff enough, it allows too great a portion of the load to come on a tie. Axle spacing in truck design enters into THE .SELECTION OF RAIES FOR OPEN TRACK IS SIMPLER THAN FOR PAVED TRACK upon private right of way and subways and elevated roads, being in many ways similar, call for the standard T-rail. On the other hand, the location in a public thor- oughfare (with the possible exception of comparatively small towns and cities and in occasional locations at the side of highways) will require some form of girder rail, principally to meet paving requirements. Some- times franchises call for a defiriite form of girder rail. Selection of Rails for Use in Private Right of Way In selecting rails for use in private right of way, the principal factors are weight of loaded car, axle spacing, character of roadbed, kind of ballast, tie spac- ing and frequency and character of service. A fre- quent-service, high-speed, interurban line with 55 or 60 ton cars will require a heavier rail than a suburban line operating at moderate speed with 25 or 30 ton cars. An interurban line which handles regular steam road freight cars with 60 ton electric locomotives, will re- quire rails sufliciently strong to support the heaviest freight car. These are reaching capacities of 80 tons, giving a total weight loaded, of 105 tons. The char- the question also. Both computations and experiments have shown that for a given class of track structure the allowable wheel load increases with the axle spacing up to a certain point, beyond which as the spacing is still increased the allowable wheel load decreases. It is the failure to appreciate such fundamental principles of design that has created conditions leading to exces- sive maintenance charges for keeping track and bridges in proper condition. It is not enough to assume that, because equipment on the A. B.C. railway is nearly the same as that on the X.Y."^. road, the rails used by the former will be suit- able for the latter. An inspection of the conditions ob- taining on the A. B.C. line with respect to track main- tenance may show that the rails are really too light for the service. It may also be found that the costs of main- taining the roadway on the A.B.C. road exceed those which experience has shown to be reasonable for the type of equipment and general roadway construction. Again, the axle spacing, tie spacing and depth of ballast on the A.B.C. line may be such that the loads are well distributed to the subgrade with the particular rail in September 20, 1919 Electric Railway Journal 557 use. If the X.Y.Z. line has equipment with a different axle spacing or the tie spacing and ballast are different, the influence of these differences must be taken into account. Any one of these factors may call for a different rail or better support for the same rail. The mathematical problems which are involved in the selection of suitable rails for railway use are extensive. The forces exerted by a motor car or an engine act in many ways and the rails are consequently sujected to all known forms of stresses. Tension, compression, torsion, shear and impact, all play their parts and it has been well said that rail steel is probably subjected to more forms of abuse than any other structural ma- terial. There are two main considerations in determining the proper form for a rail. First, and most important, the duty required. Second, and of nearly equal im- portance, the influence of mar.ufactu. mg details up- on the character of the finished product. Of course all the stresses to which it will be subjected should be considered, but its ability to resist them will depend largely upon the character of the metal, rather than upon the particular form or sectiort. In considering the du'y, first attention must be given to the external forces act- ing upon the rail, consisting of the pressure exerted by the wheels and the supporting forces represented by the ties. Knowing these, the stresses set up in the rail can be calculated approximately for different sec- tions. The calculations involve many details and space will not permit their detailed discussion. Practically all of the data upon t'.^is subject have been obtained from steam road experiments, with typi- cal conditions produced- by the various arrangements and loads of locomotive driving wheels. IMr.ny of the extreme conditions so produced are not found either with electric locomotives or with electric motor cars. The average axle loads on steam equipment are also heavier than those on electric motor equipment or upon DISTRIBUTION OF TIE PRESSURE UNDER RAIL TENDER 66,000 lb. 661b. Boil Lf.../o'.g''.....>l Oak Ties H^'f'H G O 0) LP i-lb. Rail ' iO,ZOOIb. 3Z,600lb. 28J0Olb. I8,500lb. . g' ...>U-. -a'-->f<-7'-3''->t< d-/"->j i ^ Trackman's ( I ) f Surface .010" Tie — Lxj-iiruj — tp — 4r-p3 — OJ — LU~uj ajLU lp up — 03 — to — — a— :>pacmg^ 25 \<>^n'^ >i'. 25 ^ >^ 24 ^21^^ >*I2^- ■^2l \<>i2l\< ^22 k >i/5^>^ Z-s'^:- 1 2 3 4 5 6 T 8 9 10 1112 i5 14 15 16 n 16 19 20 21 22 ■•Tie Numbers TRAIUNSTRUCK 12,0001b. 220001k iO.OOOIb. B 19,0001b L<-+< <5'-i''- >+<- 6' SomeBail a Track as '*A" Different- Enqine &■ WheeT Spacing ~ 6 Tie Depression 0.10 020" DEPRESSION OF RAILS UNDER ENGINE LOADS WITH EFFECTS OF AXLE SPACING electric locomotives found upon most electric railways. However, electric locomotive equipment and some motor car equipment have a much lower center of gravity which tends to produce greater lateral thrust upon the rails and the stresses so produced must be considered, especially in curves. The maximum pressure upon the rail can not be de- termined solely from the static load (a load acting by mere weight at rest) of the wheel on the rail, even though the weight of the car can be accurately deter- mined. The dynamic augment (added force or load due to movement) must be considered because the car does not always stand still. The forces created by ir- regularity in rolling stock or roadway, such as flat wheels, lack of rotundity of wheels, low joints, and poor surface which create impact and the rocking of the car upon springs and bolsters together with the effect of velocity of the loads must be provided for. These forces have been calculated for some electric railway conditions, covering city passenger cars and interurban passenger and freight cars. The typical dynam.ic loads for these electric railway cars are shown in the dia- grams on page 558, and the dynamic augment for this class of equipment is substantially the same percentage of static load as that used for freight and passenger cars on steam roads. Usually the dynamic augment is considered to be 0.70 of the static load for wheel loads less than 15,000 lb. For wheel loads of 15,000 lb. or more, 10,000 lb. is taken as the dynamic augment to be added to the static load. The Baldwin Locomotive Works Rule For Determining Weight of Rail, The general rule developed by the Baldwin Locomo- tive Works for determining the weight of rail is as follows: "Each 10 lb. per yard in weight of ordinary Tie ^-Rail EFFECT OF OVERLOADING ON SUBGRADE rail steel, properly supported by not less than fourteen ties per 30-ft. rail is capable of sustaining a safe load per wheel of 2240 lb. (1 gross ton)." On this basis, an axle load of 30,000 lb., or a wheel load of 15,000 lb. would require a 66-lb. rail. It is of interest to note that for this axle load the New York Municipal Rail- way Corporation has selected the 100-lb. A.R.A.-B. rail, or one of substantially one-third greater weight. There must be some reasons for this apparent overweight and these are governed by the desire for a greater stiff- ness, combined with a sufficient amount of head metal to allow a large proportion of wear before renewal be- comes necessary. The greater stiffness should lessen the amount of maintenance labor, and requires a lesser amount of ballast to distribute the loads to the sub grade. Incidentally a far better joint section is secured. The high costs for labor in renewals, due to very fre- quent train service and locations in subways and on elevated structures where working conditions are much restricted, are very important considerations. Further- more, one of the principles of design, calls for the ad- dition of the dynamic augment to the static load. This was taken at 1.5 times the static load for wheel loads of 15,000 lb. or more and the dynamic augment add- ed to the static load in this case gives a dynamic load of 22,500 lb. which, under the Baldwin Locomotive Works rule above mentioned, would call for a rail weighing 102 lb. per yard. Thus what (in the light of the Baldwin Locomotive rule) at first may appear 558 Electric R a i l w a y J o u r n a l Vol. 54, No. 12 to be an uneconomic use of rail material, becomes a wise selection in respect to principles of design, ultimate economics in maintenance and lessened amount of ballast material required in construction. Aside from the theoretical point of view, it is prac- tice which furnishes the evidence necessary for check against theory. Here it may be said that as of 1914, five out of eight of our largest interurban and high- speed roads use the 80 lb. A.S.C.E. as standard for open tracks, one uses the 75 lb. and two use the 70 lb. A.S.C.E. sections. The very recent Buffalo-Niagara Falls high-speed line uses 85 lb. A.S.C.E. for cars with load giving an axle load of about 17,500 lb. with track laid on about 10 in. of granulated slag ballast. 9" ^ >{ ^ yitof Car ffind Eofuipwenf ' ' Tofo,l 58,000 POUNDS 43,000 15,000 "^'t^ CITY CAR 1400 lb each. Both on Rear Truck -34'-2f' (T) Wheels 36" Pi am. Wt ofCarbody m. " Trucks INTERURBAN PASSENGER -~-<3) CAR POUNDS 35.000 24.000 Wf lloiorEqulpt 19.000 Wt Passenger loaol 1 1 250 (lS(a>l50lb) Total S9.Z50 c> >k'^ Ecjuippeol nifh 4 nofors "^"^ / on each Axle, qivlnc^ even Loaol Distribution U. 7'.>] V'l' POUNDS 1 1 J 7a' -a" -1..^ ! m Car Body 62.120 ; r r' ^ .-k Wt Load at (T) ■ (V) -Wheels 36" DIam. H) ' (I) rated Capacity 50.000 \ J \ ^ ^ I Plus-I0%0verload 5,000 CO c>o Total 111.320 INTERURBAN FREIGHT CAR n n n > Equipped with 4Hotors. « » " " triCi EFT, JIG IN WHICH BEARINGS ARE BLACEO FOR FACING OFF AFTER WELDING; AT RIGHT. BEARING BOLTED IN POSITION READY FOR FACING 566 Electric Railway Journal Vol. 54, No. 12 Spring- Switches and Crossovers Made From Standard Trolley Frogs Twin City Rapid Transit Company Makes This Equipment for Special Locations and the Service Obtained Is Most Satisfactory IT IS OFTEN the case that at crossings where the angle at which two lines cross is very small difficulty is experienced because the trolley wheel follows the wrong wire. This trouble also occurs in backing up at a wye. To overcome such difficulties at these two loca- tions the Twin City Rapid Transit Company, Minne- TOr AND UNDER SIDE VIEWS OP SPRING SWITCH AND SPRING CROSSOVER MADE FROM STANDARD TROLLEY FROGS apolis, has developed a trolley frog spring switch and spring crossover, both of which have proved most suc- cessful during the past two years. The spring switch is made from the company's standard switch by first cutting off about 3 in. of the lead to the curve. A hole is then drilled through each boss on the top of the casting, and in the hole nearest the single end a split post is set. The switch tongue is inserted through the other hole. The switch tongue consists of a piece of malleable iron bent at right an- gles, the tongue side slightly flattened and brought to a biased point, the post side remaining round and being split. A piece of spring steel is then fastened to the two posts in such a manner as to hold the tongue against the single line lead. This is clearly shown in the accompanying illustrations and drawing. Suppose this switch in operation. A car desiring to wye and turn back will spring the switch when it enters on the tangent line from the double end. It then backs into the curve over the spring tongue which offers a continuous line. The crossover is similarly made from two standard switches cut off at the single end just back of the pull- off rings and fastened together by a plate riveted over the joint. In this case the springs are so arranged as to keep the tongue points against the side of the switch. This cross-over would be used on a double track line or in any location where cars on a given track always operate in the same direction. As before, assuming this crossover to be in service, a wheel would enter over the spring tongue and be compelled by the second spring tongue, acting as a guard, to leave over the proper line. The company now has in service about fifty spring switches and two spring crossovers. These have always worked satisfactorily and no additional wear to the trolley wheel has been noticed. Malleable iron is now being used in the manufacture of all switches and is giving about double the life of bronze. Handy Adjuster for Gear-Case Cover Springs THE accompanying illustrations show a small device which has been constructed in the shops of the Des Moines City Railway to simplify the work of in- stalling springs on the gear-case covers of G.E. 57 and G. E. 67 motors. The usual method of using a screw- driver to twist this spring and the hand to hold it in position is often very trying to the workman, and sometimes results in bruises to the hand, as it is frequently necessary to install the springs under the car where the space is limited and where the position that must be assumed by the workman is very awkward. The device shown herewith for installing these springs consists of a piece of iron 6 in. long by li in. wide and 2 in. thick with two pieces of sheet iron attached. The iron bar grooved out on one end to accommodate the spring and the pieces of sheet iron are fastened to this bar about i in. from the end as indicated in the accompanying illustration. After assembling, these sheet-iron pieces are bent back at right angles and the finger at the end is doubled over to provide lips for holding the end of the spring. To install a new spring on a gear-case cover the spring is laid in the grooved end of the tool. One end of the .spring is then hooked under one of the side fingers and the spring is wound up two turns to provide tension. The other end of the spring is then hooked W/cff/? and Depth Fqua' DEVICE FOR QUICKLY AND EASILY INSERTING HINGE SPRING OF GEAR-CASE COVERS under the opposite finger. The tool holds the spring so that it can be readily placed in the hinge and the hinge pin inserted without any trouble and without danger to the workman. After installation the ends of the spring are released and the job is completed. The United States Bureau of Mines "will dedicate fts new experiment station in Pittsburgh, Pa., on Sept. 29 and 30, and Oct. 1. The buildings are located at 4800 Forbes Street. Mine and coal-dust exolosions will form part of the program. September 20, 1919 Electric Railway Journal 567 Present Status of Engineering Association Standards A Partial Summary of the Proffress Which Has Been Made in the Development of Standards, Recommended Practices and Miscellaneous Methods and Practices A GREAT many electric raiurdy men overlook a most important adjunct to their work when they . neglect to consult the Engineering Manual of the American Electric Railway Association. As the convention approaches, it may not be out of place to present a brief outline of some of the more important subjects treated therein. A knowledge of what has been done along the line of standardization should be helpful. A creditable amount of work has been done, but it is unfortunate that this has not been more fully appreciated. An ac- tive interest in it cannot be otherwise than helpful to engineers in their daily tasks. The Manual presents the finished product, as it were. A broader view of any particular subject is to be found in the Proceedings of the association. Many data of value will there be found, which from their na- ture, cannot find a proper place in the Manual. A few of the topics which are covered in the Manual are discussed this week. Others will be taken up later. Buildings and Structures By R. C. Cram In the field covered by the Engineering Association committee on buildings and structures, the activity and resulting standards or recommendations are at a minimum. This is undoubtedly due mainly to the gen- erality of the subjects, which will not admit of the very close restrictions implied by standards or recommended practices. There is only one recommendation which has reached the "approved" stage. This relates to "Rules for Instructions to Employees for Fire Pro- tection." There are seven other subjects in the Man- ual under "Buildings and Structures" as a general head- ing, classed as "Miscellaneous Methods and Practices." These cover matters relating to building design, con- struction and maintenance, which are so variable in different parts of the country, or because of incidental location, that it would be almost impossible to bring them to close enough agreement to warrant even a standing in the Manual as "Recommended Practice." Nevertheless, the "Miscellaneous Methods and Prac- tices" which are included in the Manual under "Build- ings and Structures," are found to represent very im- portant subjects in connection with design and main- tenance of electric railway buildings. For instance, the subject of oil houses and their equipment is one of considerable moment. It is well discussed and il- lustrated with several typical drawings. The matter of proper facilities for employees in car houses, shops and power houses is reaching greater weight yearly. The Manual treats of this with particular reference to space assignments for the administrative various offices, men's rooms, locker rooms, toilets and assembly rooms. Not the least in value is the codification of "Under- v/riter's Rules Relating to Car and Car House Wiring," which is an index of the subjects in the National Elec- trical Code which relate particularly to car wiring, equipment of cars and electrical work in car houses. These matters must be constantly referred to by elec- tric railway mechanical, electrical and structural en- gineers. This index to the code is of great value. The "Recommended Rules for Fire Protection" rep- resent modern practice and cover organization of fire brigades, general fire rules, and form of inspector's report. These rules complete have been approved by the National Fire Protection Association, The subject of economical maintenance of buildings and structures is treated in the Manual by outline ref- erence to features of design which are of vital impor- tance in reducing maintenance charges. Repairs, in- spections, heating systems, roofing, floor construction, doors and painting are all considered in a way which should be of much interest and value to designers. Under the head of "General Specifications and Form of Contract for Railway Structures" are found a pro- posal sheet, contract form, general conditions of con- tract and specifications for materials. This section embodies form and wording for contracts which are useful to engineers, and in general they will need but few changes to meet the opinions of legal talent and local conditions prevailing on most electric railways. The subject of design of urban and interurban ter- minals is treated in all general controlling aspects, such as matters of location, real estate, track layout, and ter- minal building construction. When terminals are up for consideration in engineering and managerial offices, the Manual may be consulted for many valuable hints. Facilities for fire protection in car houses and ter- minals, including open yai'ds are discussed in a very illuminating manner in the section of the Manual under that heading. The several types of equipment and ar- rangement thereof, are set forth in considerable detail. While the foregoing subjects are comparatively few in number, it will be seen that they represent items of much importance in connection with building and struc- ture maintenance and construction. The Proceedings of the association, in reports of the commitee on build- ings and structures, contain a large amount of general information on the subjects in the Manual which, from its nature cannot well find a place in the Manual because of the necessity for brevity. For instance the Engineer- ing Association Proceedings for 1915 contain a most informative report on the subject of expansion joints and waterproofing of concrete structures, which is of such general value that it could well be brought down to date and included in the Engineering Manual under "Miscellaneous Methods and Practices." The subjects of power-house and substation construction have also received attention at the hands of this committee in the Proceedings for 1915 and 191G. 568 Electric Railway Journal Vol. 54, No. 12 Way Matters By R. C. Cram In the field covered by the committee on way matters, an examination of the Engineering Manual indicates that twenty-five subjects or item.s have reached the stage of "Standard" or "Recommended Practice." This is the greatest number reaching such grades in any of the seven general heads or classifications of work in the volume. As an indication of the care in prepa- ration and the extended discussion some of the sub- jects have received, it may be noted that the standard 7-in. and 9-in. girder and girder guard rails were about seven years in the process of reaching the Manual as the goal. A brief outline of the several subjects fol- lows : The location of, and clearances for, third-rail work- ing conductors, structures and rolling equipment are shown in the standard diagram which is thus avail- able as a guide to electrified steam roads as well as strictly electric railways. Third-rail terminology and recommendations on method of protection for third-rails are also covered. These matters were the results of reports prepared by the committee on heavy electric traction, all of the members of which are representa- tive steam road engineers. The design of proper foundation for tracks in paved streets is indicated by a recommended design for a bal- lasted construction. The reports of the committee on way matters for 1914 and 1915 on this subject, in the association Proceedings have proved valuable contri- butions to the study of this subject. The Proceedings should be consulted in connection with any considera- tion of design of tracks for use in streets. Among "Miscellaneous Methods and Practices" will be found an extended report on ballast for suburban and interurban lines, and one on classification and bear- ing power of soils, both of which are useful in con- nection with track design and maintenance. Here also are rules and regulations for the government of em- ployees of the way department which will serve as a practical guide if occasion calls for the compilation of such rules. A uniform method of designating com- promise joints is shown which, if followed, will tend to eliminate the confusion which often arises in con- nection with special track-work purchases. Under the head of "Specifications," of interest to those concerned with way matters, the Manual contains seven which may be used in connection with purchase of rails, joints and special track-work. They cover gir- der rails, splice bars for girder rails, four distinct types of special track work and the materials entering into the manufacture of special track work. An important spe- cial track-work matter is also covered under the rules for determining the gage of track on curves, while the recommended layouts or dimensions of tongue switches and mates are recognized as the prevailing standards by both manufacturers and electric railway companies generally. Perhaps the most important contribution to stand- ardization work in the electric railway industry lies in the standard sections for 7-in. and 9-in. groove girder and girder guard rails. These designs and particularly the 7-in. depth, are gaining constantly in popularity and use throughout the country. Of no less importance are the recom- mended designs for 7-in., 80 and 91-lb. plain girder rails which, by the way, have long been rolled and have a wide use. The standard section (low-T) rails shown in the Manual should have more attention than they apparently have received. This is particularly true of the 100-lb. section which due to its weight and height (6 in.) is very serviceable for use in shallow pave- ments in small cities and towns. Recommended designs of joint plates are shown for all of the girder rails above referred to and use of those for the 7-in. girder rail has shown that they are a big improvement over any previous designs. It may not be generally known that the association has approved, as a recommended design, a uniform drilling for standard section (low-T) rails which agrees with the recommendation of the American Railway En- gineering Association. A much needed improvement in practice calls for the use of this design to the fullest possible extent. The recommendations on the use of plain girder rails in paved streets represent several years of study and they can well be used as a guide when this question is up for consideration. The Wheel Situation By H. L. Brown With the sky cleared of the war cloud, at least, in a measure, there should be time now to take up the study of engineering standardization problems where they were dropped before the war. Of these problems, that pertaining to wheels is perhaps one of the more im- portant. The situation in this connection as it stands today is about as follows: The American Electric Railway Engineering Associa- tion in 1907 adopted a "standard design" for the tread and flange contour of cast wheels. This action in- volved two standard contours — type A, having a flange i-in. high and type B, a flange 2-in. high, both being 1^^- in. thick at the throat. For city service the type A tread is 3 in. wide and this is widened to 3^ in. for in- terurban service. Type B wheel has a 24-in. tread and it was evidently intended as a sort of alternative stand- ard to be used where the type A contour could not be used on account of local conditions. S'ince this action of the association the advent of the rolled-steel wheel and the fact that comparatively few companies found it desirable to use the standard con- tour, have given rise to much discussion but little defin- ite action. For example, it was found that the flange 8 in. high was distinctly more in favor than the higher flanges and the discussion at the several conventions has brought out that the use of the higher flanges, while perhaps more nearly ideal, is impracticable because of the existence of large amounts of old tram rail which is likely to remain in the streets and in use for some time to come. The thickness of the flange at the throat has also, more recently, been attacked as being too great, causing undue wear on the back of the flange. The 1^^- in. thickness was determined upon in order to make it possible to get more of the gray metal up into the flange, and thus reduce the chipping. There has also been much discussion in regard to the taper of the tread. These considerations led to the submission in 1916 by the committee on equipment of a new set of three con- tours which it first recommended for adoption as stand- ard in revision of the 1907 standards. It then with- drew its recommendation after extended discussion at the convention. The committee's recommendations in- September 20, 1919 Electric Railway Journal 569 eluded three designs as follows: Wheel A was to have a 3-in. tread and a flartge I in. high and 1^^ in. thick; wheel B, a 21-in. tread and a flange f in. high and 1 in. thick, and wheel C, a 2i in. tread and a flange g in. high and 1 in. thick; this matter will undoubtedly be brought up again for further consideration at the convention this year and some change made from the 1907 stand- ards, which still stand. As to standard dimensions, other than contour, for the cast wheel, it appears that no standards or recom- mendations covering dimensions have been passed by the Engineering Association. Steel Wheels Likewise Unstandardized Strange to say, there has been no standard adopted for the contour of steel wheels and there have been no i-ecommendations made in this connection. While the standard contours of 1907 have been applied to a cer- tain extent, these were developed before the advent of steel wheels and to meet the characteristics of the cast wheels, and obviously cannot be considered as best suited to the newer, more ductile wheel. In 1909 the committee on equipment recommended for adoption as standard, certain dimensions for rolled steel wheels. This subject passed through successive stages AT LEFT, MOWER COUPLED TO STREET CAR ON ROC: CUTTING ON INTE ber could be reduced about 90 per cent, if the equip- ment engineers would establish satisfactory standards. This would seem to indicate a course of action to which early study might well be given. Mowing Weeds on Interurban Right-of-Way By Edwin Main Chief Engineer Rockford & Interurban Railway WEEDS spring up profusely along a right-of-way, especially if through lack of both labor and finances it has been impossible to keep the roadbed properly worked over. It is a long, slow job to mow miles of right-of-way by hand, and to more expedi- tiously handle such a situation the Rockford & Inter- urban Railway has drafted into service a standard farm m-owing machine and substituted a single-truck motor car for the customary pair of horses. An Emerson Brantingham standard 7-ft. mower is used with the wheels replaced by city electric car wheels of the sam.e diameter. In order to obtain standard gage it was also necessary to install a new axle. The sickle bar was a little too long to clear the poles of the two- INTERURBAN; AT RIGHT, \VEED.s IX NEEiJ OF 60 80 ;I00 AVERAGE ANNUAL RATE EARNED Weiqhfeol--' \ Weiqhfeol-'' Average Rate DEFERRED EARNINGS (Cumulative) Surplus Deficif Curve A - 9% 1660 -l875\unD-iF 8% 1616-1890] 7% 1891-1917 ELECTRIC B-8% 1891- I9ll\ C-T>/o 1891 - 191 7] ^only'^ D-6% 1891 -1917) HORSE CAR PERIOD 1860 \ 1870 1880 ELECTRIC PERIOD 1890 1900 1910 1917 INVESTMENT HISTORY OF A LARGE RAILWAY PROPERTY OPERATING ON A 5-CENT FARE THROUGHOUT THE TWO PERIODS CONSIDERED prices, approximately those actually paid for construct- ing and renewing the property. The problem of the future or the third generation requires another discussion too involved to be attempted here. Suffice it to say that it seems hardly reasonable or equitable to present to the future generations a property quite free from the burdens of past develop- ment while this same future generation is reaping enor- mous benefits in appreciation of values which have been brought about as a result of this rapid development largely through the agency of the utilities. In other words, each generation ought to stand on its own feet. If errors have been made, they should be reasonably allocated or distributed, which can be done as an actuarial problem without unduly burdening any period or party to the common misfortune. This policy seems to hold the maximum of fairness and equity in dealings v/ith the co-partners of the business — public, investor and labor. 572 Electric Railway Journal Vol. 54, No. 12 Program For the October Convention THE convention for 1919 to be held at Atlantic City is expected to be the largest and the best ever held by the industry. To date approxi- mately 57,000 sq.ft. of space has been allotted to ex- hibitors and the association expects that several more thousand feet will be taken before the opening. The subjects to be considered at the American Association meetings, which open in the Greek Temple at 9:30 a.m. on Tuesday morning have al- ready been announced by Secretary Burritt and should prove of much interest to all those who are at this time concerned in the welfare of the indus- try. Among the committee reports which will be of the greatest interest, will be that of the Com- mittee of One Hundred giving a complete review of its work at Washington in connection with the hearings before the Federal Electric Railways Com- mission. The question of direct affiliation of the manufacturing companies in an affiliated associa- tion will be decided and already a proposed form of constitution and by-laws has been drawn along lines somewhat similar to the other affiliated as- sociations except that it provides for two members in addition to the president on the executive com- mittees of the parent association to be elected on the floor of the convention. Changes are also proposed in the constitution and by-laws of the American Association so as to provide for the legal representation of manufac- turer companies on its executive committee as pro- posed in the new constitution and by-laws of the Manufacturers' Association. A preliminary program of the subjects selected for the American Association convention follows: Some Features of Service-at-cost Plans — Cincin- nati; Youngstown; Cleveland; Montreal. The Public Service Railway Company's Zone System. What Must be Done with the Electric Railways Before They Can Again Find a Market for Their Securities? Labor and the Electric Railway Industry. The Relationship of Items of Cost under Pre-war Conditions and To-day. — , Can These be Collected from the Traveling Public? — , Are They Likely to Develop Permanent Competition? Report of the Committee on Valuation. Report of the Committee on Zone Systems. Report of the Committee of One Hundred. The Association itself has an exhibit this year showing the benefits to be derived from member- ship. It will display some of the work actually performed by the information bureau for member companies. In the Transportation & Traffic Association meet- ings only four committee reports will be presented, and it is planned to complete the discussion of these reports in the allotted time. Different phases of each subject have already been assigned to various members for discussion and, it is hoped that the points brought out by the committee will be further amplified by the discussions. In addition to the regular reports there will be presented a complete review of the safety car situation supplemented by a movie film covering all the fundamentals of safety car operation, both from the public and operators' standpoint. This film has been prepared at the expense of certain manufacturers interested in this subject and is to be presented to the Association. In this way, com- panies which are considering the installation of such cars can secure it for showing in their terri- tory and thus be better able to secure a more fa- vorable reception from their patrons when the safety cars are introduced. The Accountants' Association, in addition to its regular committee, reports a plan to have several addresses pertinent to its work. On the program the Engineering Association, in addition to its regular committee reports, there will be several addresses. N. W. Storer of the Westing- house Electric & Manufacturing Company will speak on "Electirc Motors vs. Gasoline Motors in Street Railway Service" and Maj-Gen. Wm. J. Snow, chief of Field Artillery, U. S. A., will give an address on "Field Artillery." Col. Henry Hodges of New York is also expected to address Tuesday's meeting on "Construction Work in France." The Claims Association plans four papers by its members with written discussions covering "Ex- perience with One-Man Cars," "Advisability of Fixed Schedules for Injuries to Persons Other Than Employees," "Organization for Public Accident Pre- vention Campaigns" and "Speed in Its Relation to Accidents." Supplementing these papers and dis- cussions will be shown the safety educational pic- ture of the Public Service Railway Company — "Com- rades of Success." Secretary Burritt has also announced that the executive committees of the various associations will all hold meetings in Atlantic City prior to the opening of the convention. The entertainment features of the convention will be of an attractive nature. The grand reception is to be held on Monday night at the Million-Dollar Pier. Rolling chairs which have heretofore been provided for delegates in traveling to and from their hotels will not be provided by the Association. September 20, 1919 Electric Railway Journal 573 Federal Commission Questionnaire The Federal Electric Railways Commission Has Issued a List of 168 Questions on Electric Railway Topics THE Federal Electric Railways Commission in its study of electric railway financial conditions has issued a questionnaire to be mailed to every city in this country where there is an electric railway. A copy of the letter of transmission, signed by Mr. Og- burn, executive secretary, and questionnaire, follow: Dear Sirs: The Federal Electric Railways Commission, appointed by the President of the United States to investigate the condi- tion of the electric railway industry of America, asks you to aid it in obtaining the data necessary for compiling a report to the President. The Commission is conducting this investigation with an appropriation of only $10,000 and the commissioners are serving without compensation, and in order to perform its work it must seek the aid of those who are interested. Al- ready a fine public spirit has actuated many leading citizens of America to come to Washington and testify before the Commission, giving it the benefit of their views. We believe that this same public spirit can be appealed to in order to obtain more detailed information relative to the transporta- tion questions in each community. The Commission is not making a study of any local traction problem per se, and of course makes no recommendation relative to any locality; but it does wish to make a study of each electric railway, urban and interurban, in the United States and its relation to the communities served because of the bearing each local situation has on the problem and because a report to the President would not be complete without a study of each local situation. This is a matter in which every citizen must co-operate if the public is to continue to receive the urban and sub- urban transportation service to which it is entitled. May we not ask, therefore, that you supply us with as much information as possible concerning the street railways in your city and vicinity? We have asked a number of questions in order to direct your attention to the lines of inquiry we are making, and we should appreciate very greatly your answering categorically each question, and adding to your answers any information dealing with any phase of the subject which you think ought to be brought to the attention of the Commission. It will be observed that a few of the questions can be answered only by the electric railway company itself. Will you try to have your answer mailed to us within a week after the receipt of this questionnaire? (Note: The following questions are based upon the as- sumption that there is one unified transportation system in your city. If there are two or more such systems sepa- rate and distinct, will you treat each system separately in your answers?) I. Organization and Capitalization 1. What is the name of the electric railway serving your community? If more than one, give names of all, including surface lines, elevated lines and subway lines. 2. I5 the system made up of several companies consoli- dated into one? 3. Will you state briefly (a) The development of the street railway system in your community, giving the names of the companies going to make it up, when organized and when electrified (if originally steam or horse cars). (b) How any consolidations were effected and by whom and the dates of such consolidations. (c) The securities outstanding on the underlying companies. (d) The securities outstanding on the holding com- panies. (e) Whether underlying companies were sold to present companies and at what purchase price or whether leased and at what annual rental. (f) The original cost of the separate and combined systems. 4. Was the construction work of any of this system done by separate contracting companies? If so, were the owners of the street railway financially interested in such contract- ing company? 5. In whom does the stock control of the system rest? 6. Has the public utility commission of your state or the municipality ever made an appraisal of the value of the transportation system of your city? Has there been an agreed valuation, as in Cleveland, Seattle, etc.? What was the appraised value of each integral part of the system? What was the total valuation? What relation does that total valuation bear to the total securities outstanding? 7. What is the amount, if any, of watered stock in your system? How can this be shown? 8. At what discount, if any, were the bonds sold? At what discount was the stock sold? What stock, if any, was given as a bonus with the bonds? 9. If a holding company, as lessee, leased the lines which are owned by other companies, what is the basis of the rentals paid? What income on the appraised value of the lines is represented by these rentals? II. Operation 10. Will you give the last annual statement of the total operating expenses, gross revenue, and the net income, show- ing allowances for depreciation, taxes, interest, dividends and surplus? Will you give same figures for past ten years? 11. What is the total mileage of the system? What is the number of revenue passengers per car-mile? What is the total population served? What is the total area of the city? 12. Does the company sell electric power? If so, what proportion of its income is derived therefrom, and what pro- portion of its total expenditures is incurred therein? 13. Does the company sell gas? If so, what proportion of its income is derived therefrom, and what proportion of its total expenditures is incurred therein? 14. If the company has a power department, at what rate per kilowatt-hour is power furnished its transportation de- partment? 15. What sums annually have been set aside and expended for past ten years for maintenance, depreciation and obso- lescence? 16. Is the service regulated by a state commission or by the municipality? Are there complaints about overcrowd- ing of cars, infrequency of headway, etc., or is the service generally satisfactory? 17. What economies of operation have been installed within the past several years? III. Fares 18. What is the present rate of fare? 19. Is the fare fixed by franchise? 20. Has the State Commission authority to establish maximum fares? 21. What changes, if any, have occurred in the rate of fare, and when? 22. Has the company sought to increase its fare since the beginning of the European War in 1914? 23. What reasons were given for making the request for an increased fare? 24. Were these reasons accepted by the community as sufficient, or did the community treat them as insufficient? 25. If the fare has been increased, what has been the effect on the traffic? 26. If there has been a fare inci'ease, by what authority was it allowed? (If by the decision of a state commission or of a court, please give exact reference, and if possible an abstract of the decision.) 27. Was the increase in fare based upon a valuation of the property? 28. What effect has an increased fare had upon the oper- ating revenues of the company? 29. What methods must be pursued in your state to effect a change of fare? 30. Has there been a case where either the court or the state public utility commission has upheld it or has set aside a franchise or a legislative enactment under which 574 Electric Railway Journal Vol. 54, No. 12 the rate of fare was fixed? If so, please give reference or copy of decision. 31. Is a zone fare charged either within the city or on suburban or interurban lines? If so, what is the zone fare and the length of the zones? 32. If there has been a change in the rate of zone fare, please give the present rate and the former rate, the pres- ent length of zone and the former length of zone. 33. What is the method of collecting and auditing zone fares? 34. If a zone fare plan has been recently inaugurated, has such a system had any noticeable effect on suburban development? 35. In your opinion, should the car rider pay the same fare regardless of the distance he rides, or should there be a different fare for the man who rides one mile and one who rides ten miles? Please give reasons for your answer. 36. In your opinion, should fares be fixed by franchise for the duration of the franchise or should fares be subject to adjustment to meet changing needs and conditions? 37. Do you favor control and regulation of fares by a state commission or by the municipality itself? 38. Does the company issue universal transfers free? If not, what charge is made for transfers? 39. Does it issue a transfer on a transfer? 40. If there is more than one company, are free transfers issued from the lines of one company to those of another? IV. Wages 41. What is the rate of v/age per hour now paid to the motormen and conductors? 42. What is the average daily wage? 43. What was the hourly rate of wage paid to motormen and conductors in 1914? 44. What is the total annual payroll of the company? 45. What percentage of the fare paid goes to labor? What was it in 1914? 46. Was the present wage scale fixed by the National War Labor Board? 47. What wage is paid for overtime? What is the per- centage of overtime worked? 48. Has the increase in wages kept pace with or exceeded the increase in the cost of living? (Note: Increase in cost of living is estimated by the Bureau of Labor Statistics, Department of Labor, at about 80 per cent since Jan. 1, 1915.) 49. What is the hourly wage rate paid all machinists, blacksmiths, painters, carpenters, etc., in the company's shops? What is the union scale for this same classification? 50. Are the employees organized into a Local of the Amal- gamated Association of Street & Electric Railway Em- ployees of America? 51. Does the company recognize and deal with its organ- ized employees? 52. If the company has a contract with its employees, do both sides live up to the contract? 53. Is there a proper spirit of co-operation between the company and its employees? V. Taxes 54. Give annual state tax paid by the system for the past ten years. On what basis was the tax estimated? 55. Give the annual taxes paid to the city for the past ten years. Separate into various kinds. 56. What Federal taxes are paid? 57. Please list the other state, county or municipal re- quirements for (a) Paving and extent of this requirement — whether between tracks only, or outside of tracks also, and if the latter, state number of feet of paving- required, (b) Bridge assessments or tolls, (c) Cleaning streets, (d) Snow and ice removal from surface other than tracks, (e) Free transportation of public employees. 58. How do the total taxes paid by the company compare with the total taxes paid by other business and by owners of real estate? 59. Is the street railway taxed on the basis on which other interests are taxed? 60. Is the taxation of the street railway based upon in- come or money invested, or both? 61. What should be the basis, in your opinion, on which the street railway is taxed by the municipality? 62. To what extent should the state tax the street rail- way? 63. To what extent should a company, not earning any- thing at all upon the investment, be taxed? 64. To what extent should a company, not earning any- thing on the investment above interest on bonds, be taxed? 65. Would you favor remitting company's taxes to make up an operating deficit? VI. Franchises 66. Can you furnish us with a copy of the franchise under which the street railway operates? If not, will you give the substance of such franchise? 67. Where is the power to grant franchises lodged? 68. What are the requirements as to approval of franchise by the people? (a) When the present grants were made? (b) At the present time? 69. What is the duration of the present franchise or franchises, and when granted? 70. What are the provisions regarding forfeiture? 71. What are the provisions for renewal? 72. Is the right to purchase reserved by the municipality? At what intervals? At what valuation? 73. What basis of value should be used where the fran- chise has expired? 74. Is the exclusive right of operation within prescribed territory conferred? 75. Is the company under this franchise protected from competition? . 76. Are there any restrictions upon the acquisitions of competing companies? 77. How may routes and lines be changed? 78. If adjacent territory is annexed by the city, is the franchise automatically extended to cover this territory? 79. Can extensions of lines be compelled by the city or State Commission? Is a new franchise required? 80. If the fare is fixed by the franchise, does such fare nrovision extend to new lines built in territory annexed by the city after franchise was granted? 81. Are there any restrictions in the franchise upon the rate of return on the company's investment? 82. What control, if any, is exercised over issuance of securities? 83. Whfit provisions, if any, are there relative to the sharing of nrofits with the municipality? 84. Is a franchise tax required? 85. If the rate of fare is not fixed by franchise, how is it fixed? 86. If the franchise provides for what is known as the service-at-cost plan, please give details, what charges are allowed in making up items of cost, the order thereof and a statement as full as possible of the plan of such service- at-cost franchise. 87. How may fares be changed under such service-at-cost plan? 88. Should the contract establish a maximum charere? Should it establish a certain return on investment or value which is not subject to change during life of contract, or should the question be opened at stated periods? 89. Do you favor a service-at-cost plan? Give reasons for your answer. 90. Do you favor a franchise for a term of years, or an indeterminate franchise? If you favor an indeterminatf> franchise, what general conditions should be incornorated as to rates, regulations, purchase, amendments, etc.? VII. Economies of Operation 91. Is the "skip-stop" plan is force on any part of the system ? 92. What was the average distance on a typical route between stops before the change to the skip-stop plan? What is it now? 93. What per centage of stops has been eliminated? 94. Why was the skip-stop plan inaugurated and when? 95. Is the public content with the skip-stop plan? 96. Has the company abandoned the skip-stop plan after once putting it into effect? 97. What benefits were obtained from the skip-stop plan? 98. What economies in shop operations have been put into effect? 99. Has the company one-man cars in operation? If so, how many? 100. What is the total number of cars operated? 101. What is the average weight of the cars on the sys- tem? 102. What is the average weight of the one-man cars? 103. Were the one-man cars converted from the former type or are they of the Birney or other safety type? 104. What benefits have been derived from the operation of one-man cars and has the public been satisfied with their use? Have the trainmen been satisfied with their use? 105. Does the operator of a one-man car receive a higher September- 20, 1919 Electric Railway Journal 575 wage than the regular motorman and conductor, and if so, how much? 106. What is the consumption of power per car-mile with the Birney car as compared with other types? 107. Have schedules been increased on lines using one- man cars? If so, to what extent? 108. How have earnings been affected by the use of one- man cars? 109. What is the life of the light-one-man car? 110. 'How have accidents been affected by the use of one- man cars? 111. How are fares collected and audited on one-man cars? 112. Do you favor an extension of the use of one-man cars? 113. What other economies of operation have been put into effect or are being considered? Have damages for ac- cidents been reduced in recent years? VIII. Interurban Lines 114. If any interurban lines enter your city, will you give the name of such lines, give the schedules they maintain, compare the service rendered by such lines with service rendered by steam lines? 115. Compare the service of such an interurban line with the service rendered by automobiles and auto trucks. 116. Does such an interurban line have to meet automo- bile competition? If so, to what extent, both in passenger and freight? 117. What is the fare charged on the interurban line? 118. What is the total mileage of the interurban line and the total population served? 119. What size and type of car is used? 120. Are trains with more than one car operated? 121. Are sleeping cars carried? 122. What wages are paid the trainmen? 123. How do these wages compare with the wages paid on steam lines? 124. Are these interurban lines owned or affiliated with any steam lines? 125. Are they used as a feeder for any steam lines? 126. Do they carry baggage, express and freight on city streets? 127. Are any of these interurban lines interstate lines? IX. General 128. What is the financial condition of the street railway system in your city? 129. How has this been shown? 130. Is the financial condition of this system such that an impairment of service is threatened? How would such im- pairment of service affect the social and business life of the community? 131. Is the financial condition such that the owners are receiving no return upon the money actually invested? 132. If, by reason of the financial condition of the street railway system, in your city, the public is threatened with an impairment of service and the owners with a loss of earnings upon the investment, what solution of the problem do you advise? 133. What shrinkage, if any, has there been in the mar- ket value of the stocks of the company since the maximum market value was reached? Of the bonds of the company? 134. Is the company in the hands of a receiver? 135. If so, what occasioned the appointment of a receiver? 136. What is the total mileage being operated by the receiver? 137. Has the operation of any lines been abandoned? If so, what mileage? 138. What are the annual capital requirements of the company? 139. Where does the company obtain the funds for these requirements? 140. What interest does the company have to pay for borrowed money (a) On bonds? (b) On short-term notes? 141. Develop kind and extent of competition, where it exists, and whether it is growing or decreasing. What ef- fect did increase of fare have upon it? 142. Can jitney or other form of conveyance be a real substitute for street car? 143. Is the loss of earnings by the company attributable to automobile or "jitney" competition? If so, are jitneys subject to the same regulation that is imposed upon the , street railway companies? If not, to what extent are jit- neys regulated and by what authority? 144. Has the system unprofitable lines and extensions? 145. Should such lines be discontinued or the service thereon reduced? 146. Should car riders pay an increased fare on profit- able lines to help support unprofitable lines? 147. Do the company and its employees co-operate suf- ficiently, in your opinion, in the prevention of strikes and disruption of service to the public? 148. Is the attitude of the public toward the company antagonistic? If so, for what reason? 149. Is it due to a belief that the public has been accorded unfair treatment through poor service, overcrowding of cars, etc., or is it due to a belief that the company is earn- ing large amounts of money to which it is not entitled? 150. Has it been due to any participation which the com- pany has taken in the politics of the community? 151. Is it due to a belief that the company has paid divi- dends on large amounts of watered stock? 152. Is thei'e a trend of sentiment in your community toward municipal ownership? 154. How strong is this sentiment? 155. Do you favor municipal ownership and operation of the transportation system in your city? 156. Give reasons for your answer. 157. If you favor municipal ownership and operation, do you thmk it should be extended to suburban lines outside the corporate limits? 158. What should be the relationship of the community to the street railway and of the street railway to the com- munity? 159. To what extent should the state regulate the service, operation, extensions, abandonments, rates, accounting and expenditure of municipally or privately owned lines? Give reasons for your answer. 160 To what extent should the Federal Government regu- late the service, operation, extension, abandonment, rates accounting and expenditures of street railway companies' Give reasons for your answer. 161. What do you consider to be an ideal system for the regulation of the companies? Should it be: (a) Exclusively by the municipality? (b) Exclusively by the State? (c) Co-operation between the municipality and th«= State? Example: City to control service, operation, extensions, abandonment, rates, accounting and expenditure, subject to an appeal taken by interested parties to the State Commis- sion, either party reserving the right to appeal from the Commission to a court. _ Example: City and State to have precisely the same jurisdiction to investigate and determine question upon complaint or upon their own motion, but with the knowledge that an appeal can be taken from such an ordinance of. the municipality to the State Commission. +u"^^o' ^^^^ extent and under what conditions should the State Commission fix the value of the property? 163. Where a street railway company operates between two or more municipalities, should the State Commission have any diflTerent power than over a company which oper- ates exclusively within a municipality? 164. To what extent should the municipality control the lines which extend beyond its domain? 165. To what extent should the State control the lines which extend beyond its domain? 166. Is it good policy to have several municipalities and the State Commission exercising jurisdiction over one com- pany? Example: In New Jersey a single company operates in and between 146 municipalities. 167. Do you believe that the cost of securing expert serv- ice over question of operation, rates and accounting is so large that small municipalities should be able to secure better and more intelligent regulation by the State Commis- sion? 168. If the street railway company is operating under difficulties in your municipality, please give the cause and suggest the remedy. Go into detail. In preparing the questionnaire, it was attempted to make it comprehensive of all relevant matter in order whatever angle of the problem seemed to them most important. The Commission hopes to receive the aid of Chambers of Commerce and similar organizations, cen- tral labor unions, the mayors and the railways them- selves in obtaining answers. 576 Electric Railway Journal Vol. 54, No. 12 Some Mysterious Car Ailments Little but Important Troubles That Tend to Keep Equipment Men Interested in Their Work Far-reaching Investigation Results From a Controller That Could Not Be Shut Off THE motorman of a car was following close behind a loaded truck by throwing his controller handle to the first position and then off again, so as to regulate the speed of the car to that of the moving vehicle. After throwing his controller handle on he suddenly found that it could not be shut off again, and before he had time to knock out the circuit breaker overhead the car collided with the truck and this resulted in serious damage and a general shaking up of the pas- sengers. Investigation as to the cause of the sticking of the controller cylinder showed that one of the contact finger springs was broken. This finger had fallen down and become wedged in such a position as to prevent the cylinder from revolving to its off position. This occurrence led to an investigation by the rail- way company's engineers as to the cause of the breaking of controller finger springs. The scrap pile of fingers and springs removed from controllers at each shop was carefully inspected, and a record was made as to the various defects that had caused their removal, and the number of each defect that was found. From this record it was seen that the breaking of finger springs was taking place almost entirely on fingers of one par- ticular make which were not provided with shunts. The springs broke just at the edge of the fingers, and the breaking was evidently due to the use of material of unsuitable quality. A careful examination of the broken springs indicated that they were punched out of sheet phosphor bi'onze, and the grain of the metal in most cases ran crosswise of the spring; that is, in the same direction as that in which the crack occurred. The shunts on the fingers apparently not only increased the electrical conductivity, but also acted as cushions be- tween the springs and the edges of the finger. Thus the bending of the spring was distributed over a greater surface and cracking was prevented. Another type of finger which had been removed in large quantities on account of insufficiency of tension of finger springs was a type provided with shunts soldered to the springs. The soldering operation had apparently taken some of the temper out of the springs, due to the necessary heating, so that their resiliency was destroyed, as a certain amount of the phosphorus was lost due to the heating. Investigation was also made as to the methods used by the shop men in installing fingers. At some shops it was found that in installing new fingers the men sometimes straightened the fingers slightly. This was done by turning the controller drum around so that the finger would bear on its contact, and then striking the finger a sharp blow with a hammer. Inquiry as to reasons why the men considered this necessary elicited the information that they could not line up the fingers properly, as some were longer than others. By straight- ening the fingers which appeared short, adjustment was provided so that the fingers installed would break con- tact at the same time as others. Some of the controller men also seemed to think that by straightening the fingers there was less liability of their "stubbing." This, however, was not so, as the stubbing of the fingers depended upon the location of the point of support and not upon the shape of the finger. It was also found that the shopmen sometimes bent the end of the contacts down slightly, so that the fingers would ride up on them FINGERS AND SPRINGS TAKEN FROM A SCRAP PILE more easily. All of these practices had their effect upon the ultimate life of the fingers and springs, as the bending of the fingers sometimes injured the springs and caused a fracture later. Also, where contacts were bent down, the tension of the finger at the point of contact was less, so that arcing was produced and the heat from the arc reduced the tension in the finger springs. In order to decrease the number of troubles caused by broken springs, it was decided that in purchasing fingers it should be specified that the springs be made of phosphor bronze drawn to the right width and thick- ness, and not punched from sheet metal, also, that all fingers should have copper shunts but that these shunts should not be soldered to the spring. It was also recom- mended as desirable that the manufacturer change his dies so that the edge of the finger bearing against the September 20, 1919 Electric Railway Journal 577 shunt should be slightly rounded. This change would cause the bending action of the spring to be distributed over a larger surface and so would give a longer life to the spring. Printed instructions were given to the shopmen re- garding the proper method of installing fingers. The men were cautioned that the practice of bending con- tacts and straightening fingers must be discontinued, as there was not only the liability that the springs might bend or break but also, as the clearance pro- vided for breaking the arc on the heel of the finger was decreased, the arc would follow down to the lower part of the finger and spring, producing burning at that point and frequently taking the temper out of the finger spring. A Car With a Fondness for Stripped Gearing ON AN EASTERN railway operating cars in city service, one of the cars was turned into the shop on account of a stripped pinion. All parts were given a general overhauling and several new pinions, gears and axle bearings were . installed. The car was again re- turned to service, but imagine the surprise of all the shop employees to have this car again turned in for having stripped gearing. All hand hole covers were opened and the pinion tried. The bottom gear case covers were also removed and bars were used to try and force the pinions and gears to start, but there was no indication of anything out of the ordinary. The car was then operated up and down the shop track and ap- peared to be in satisfactory condition. The bottom gear case covers were replaced and the car again returned to service. This time the car scarcely got a block away from the shop before the trouble occurred again. The motorman was asked to describe what had happened and he said there was a terrible noise and grinding and the motors flashed over. The car was again operated up and down on the shop track and everything operated satisfactorily. It appeared strange that the trouble could happen on the line and did not happen at the shop so one of the shopmen took the car out on the line, and on his return reported that the trouble happened twice and from the noise it appeared like a stripped gear. The brushes were found all shattered to pieces. These were replaced and another trip made over the road with men stationed to watch the performance closely. The motors were of the interpole type and it appeared strange that the brushes should break, or that the motor should flash over. In watching the operation it was noted that the truck nosed somewhat, and immediately after that there was a sound like a stripped gear. The motor "bucked" so that the car was suddenly stopped. The brushes in the brushholder were again broken. It was apparent that the nosing of the truck had caused the trouble. The motor was tried for excessive end play on the axle. This end play was found to be 1-J in., which was exces- sive. A closer examination showed that this end play had caused the gear to strike the lip on the gear case. The car was again returned to the shop and the parts dismantled. It was found that the thrust collar on the axle had been left in its original position when new axle bearings were installed. This had resulted in the excessive end play, and had caused the trouble. The thrust collar was set in its proper position, repairs were made, the car returned to service, and it contin- ued to operate satisfactorily. Unusual Cause for Motor Flashing ONE of the lines of a Western railway company had both city and interurban cars operating over it. Considerable trouble was experienced on the city cars from the flashing over of their motors. As this same type of equipment operated satisfactorily on other lines of the system, it was assumed that there must be some condition peculiar to that line which was caus- ing the trouble. While an investigation was being made as to the cause instructions were given to the motormen to operate these cars with the controllers in series position only. This operation proved unsatis- factory, as the men found they could not make the de- sired schedule speed. Investigation and tests showed that whenever an in- terurban car came into the section its large demands for current caused heavy voltage surges on the line, and that the flashing over of the motors on the city cars resulted from these voltage surges. As increased capacity for this section could not be provided at once, it was decided to resort to the temporary expedient of connecting resistance in the trolley circuit of the city cars ahead of the controller. This resistance was made of sufficient capacity so that it would carry the car current continuously without overheating. This rem- edied the trouble of flashing over of the motors, but of course the operation was somewhat inefficient. Wheel Tread Worn Wheel Causes Bond Trouble THE operation of a car with a defective wheel re- cently resulted in an illuminating but sad ex- perience for a prominent railway company which oper- ates a number of city, suburban and interurban lines. The rails of one of the interurban lines were rebonded not long ago with laminated bonds soldered to the rail heads. The line is a double-track one and is laid with , 60-lb. T-rails 60 ft. in length. It extends some 25 miles into the country, passing through several small towns. About one- half of the track is of open - type construc- tion, the balance be- ing on paved streets. Shortly after the re- bonding was c o m - pleted, track men no- ticed that practically all of the bonds on the open track were either lying along the track or had been partially loosened. After some little investigation the cause was discovered as a wheel which was worn grooved, as in- dicated in the accompanying sketch. A combination of soft wheel tread and defective brakeshoe had caused the tread to wear so rapidly that the damage to the bonding was done before the mechanical department noticed the defective wheel. As the cars were turned at one end of the run but not at the other, the defective tread came into contact with one rail on one trip and the other rail on the next trip, with the result that the bonds on both rails of the 25 miles of open track were knocked off. From the standpoint of way maintenance expense, this wheel broke all existing com- pany records and emphasizes the fact that economical operation is secured only at the price of eternal vigilance. ^ - ' Rail tfeod ' INTERFERENCE OP WORN WHEEL, WITH BOND 578 Electric Railway Journal Vol. 54, No. 12 AT LEFT. SLOTTING A COMMUTATOR IN A DOUBLE-SPINDLE LATHE : AT RIGHT, REAR VIEW OF THE APPARATUS USED FOR COMMUTATOR SLOTTING Commutator Slotting Device for Use with Double-Spindle Lathe THE practice of slotting or grooving- commutators of railway motors is now universal. The accompany- ing illustration shows a device which has been developed by William Mohr, master mechanic, Pennsylvania-New Jersey Railway, Trenton, N. J., for slotting the com- mutators of motors used by this system. As shown, it is arranged for application to a McCabe double spindle lathe. The slotting saw is mounted on the end of a spindle which has a long bearing in a fixture mounted on an upright steel post. The base of this post is mounted on the carriage of the lathe so that the slotting saw will be moved backward and forward as the carriage is operated. A vertical adjustment is provided, so that commutators of different diameters can be slotted. This adjustment is effected by moving the upper cast- ing up or down on the post and clamping with a set screw at the desired location. On the opposite end of the saw spindle is a pulley for driving it. This pulley is connected by a belt, which passes around an intermediate, idler pulley, with the main driving pulley located at the back of the lathe. The intermediate pulley is also mounted on an upright post fastened to the carriage of the lathe and is pro vided with a vertical adjustment similar to that used for the slotting spindle. The driving pulley is made of sufficient length so that as the carriage is moved backward and forward to slot the commutator of the motor, the belt can slide along it without danger of coming off. This driving pulley is mounted on a spindle with two bracket sup- ports at the back of the lathe. The end of the spindle is provided with a pulley for attaching a bell, the other end of which passes around the cone pulley on the lathe, so that the entire mechanism is driven through the lathe pulley. The entire apparatus can be as- sembled and taken apart in very few minutes, so that the lathe may be cleared for other purposes when it is not in use for commutator slotting. Such an arrangement is of great convenience in a small shop when commutator slotting is carried out only at infrequent intervals and where lathes are used for many operations. A New Type of Steam Condenser Construction THE "compartment condenser" is a new type of condenser developed by the Wheeler Condenser & Engineering Company for the purpose of permitting one section to be cleaned without putting the entire ap- paratus out of commission. As shown in the accompany- ing illustration, the water space in the shell is divided into four compartments, each of which is equipped with a set of valves which control the circulating water. The condenser may be cleaned while the turbine, to which it is connected, is delivering full power, the operation consisting in shutting off the water from one SURFACE CONDENSER ARRANGED IN COMPARTMENTS TO PERMIT CLEANING WHILE IN OPERATION compartment, removing the cover, cleaning the tubes and restoring the compartment to its original condition. During this operation the steam space, of course, re- mains full of steam, the only difference being that the bank of tubes which is being cleaned is not water cooled. While none of the new condensers is as yet in actual operation, a number are on order and will be installed soon. The improvement should encourage fre- quent cleaning without interruption to service. September 20, 1919 Electric Railway Joukjnal 579 Blue Lights and Their Significance in the New York Subways Emergency Precautions That Have Been Taken to Provide for the Cut- ting Off of Power, the Turning in of Alarms and the Automatic Chang- ing Over to an Emergency Source of Power for Lighting Are Described BY EDWARD A. PORR. Assistant Electrical EiiRinror New Yoi'k Public Scivice Commission First District ASA RESULT of the subway accident which oc- AA curred Jan. 6, 1915, when a cable blow-out pro- duced smoke and fire which resulted in the tying- up of the subway system in New York City and the in- juring of a number of passengers, a great number of safety precautions have been put into effect in the newly arranged systems. These are designed to afford the maximum amount of safety for passengers, combined with the greatest assurance of continuity of operation. During maximum load hours the headway is from one minute to one and one-half minutes between ten-car trains, which are usually jammed to the doors with passengers. In case of an accident or a protracted delay between stations it has been found almost im- possible to prevent pas- sengers from leaving the trains and making their way along the tracks to the nearest station. In order to safeguard passengers when they are walking on the tracks in such a case, pro- 5 e c + i o n DIAC.RAM OF THE SECTIOXALIZIXG OP THE THIRn-RAIL SYSTEM vision has been made for turning off the power at numerous points along the line. Blue lights, which in- dicate the location of these emergency stations, have been installed on the same circuit as the tunnel lighting, which is independent of the third-rail power circuit. A special alternating-current feeder has been installed for tunnel and station lighting with provision, by means of an automatic changeover switch, to connect this circuit to the third rail in case the alternating-current feeder breaks down. The blue lights are so arranged and is always visible from any heads of all train crews are instructed that in case of an accident or fiire they are immediately to get off their trains and look for one of these blue lights. They are then to proceed to this lo- cation, where they will find a small red box which is called the "Emergency Alarm Pull Box." By the opening of this box and the releasing of a lever, cur- located that at least one point in the tunnel. The Section N9 2 fmeryency Alarm Circuif in Telephoiie Cables Bus +Bus ENCY AEARiVl PANELS LOC.VTED IN SUBSTATIONS 580 Electric Railway Journal Vol. 54, No. 12 EMERGENCY ALARM PULL BOX rent is automatically shut off from the third rail and other emergency precautions are provided for auto- matically. The shutting-off of power in the section where the alarm is turned in immediately stops all train movements in this section and eliminates any danger from moving trains and live rails, thus making it per- fectly safe for the passengers to enter upon the tracks and proceed to the nearest exit or end of a passenger station. Turning In An Emergency Alarm By releasing the handle in the emergency alarm pull box a mechanism rotates a slotted disk. At the first break or slot in this disk the controlling current is in- terrupted, which opens the circuit breakers feeding this section and all equalizer circuit breakers. All of the emergency boxes in a particular section are connected on a closed circuit so that any one box can be operated to break the circuit for that section. An accompanying illustration shows the type of emergency alarm panel which is installed in the various substations. When the circuit is bi'oken by the rotating disk in the emer- gency alarm pull box the coil "A" on the emergency alarm panel is de-energized. This releases the four-point switch shown immediately underneath the coil, which is held closed under spring tension. The closing of this four- point switch auto- matically closes the tripping circuit for every circuit breaker feeding this section. The disk in the alarm box continues to rotate until a com- plete revolution has been made. In addi- tion to the de-energiz- ing of the coils upon the emergency alarm panel, the first break- ing of the alarm cir- cuit sets a mechanism in operation which produces strokes on a equalizing circuit breakers '^^^^ '^ Jiis OP feeder circuit song is indicated at breakers "B" on the emer- gency alarm panel. The gong rings as many times as there are notches in the emergency alarm disk. This enables the substation operator to determine the ex- act location of the box in the subway, substation operator as each box is provided with a different ar- rangement of notches on the disk. In addition to the emergency-alarm pan- els installed in the various substations, there is a special re- cording type of emer- gency alarm panel in- stalled in the chief dispatcher's office, so that the chief dis- patcher as well as the substation operators know at once that trouble has occurred and the location of the trouble. An emergency telephone set is also located alongside the emergency-alarm pull box and the head of the train crew is instructed immediately to report the trouble to the proper authority as soon as an alarm has been turned in. Passengers can then proceed along the tracks with safety and can obtain exit to the street at various emergency exits. These are indicated by banks of five lights. The lights of each group are arranged on different circuits so that some of them are sure to be burning, even though another circuit due to some defect, should be open. The emergency exit doors are counter-balanced so that they operate easily from the inside of the subway but they cannot be operated by unauthorized persons from the outside. The pulling of an emergency-alarm pull box kills the third rails on all tracks in that section, so that service is interrupted in both directions. Current is turned on again only when the maintainer of the particular section personally reports on the emergency telephone located at the alarm box which has been pulled, that either all or some of the tracks are cleared and that operation can be resumed. Upon the receipt of such a report, instructions are given to the substation opera- tors to put power on the particular tracks designated. This is accomplished by the substation operator manip- automatic change-over switch emergency telephone set September 20, 1919 Electric Railway Journal 581 ulating a small switch on the . emergency alarm panel which energizes the closing coil of each circuit breaker individually. These circuit breakers are located in a special compartment in the subway. Each Section is Fed From Two Substations An accompanying diagram shows the method of sec- tionalizing the various third-rail divisions and the loca- tion of the substation and circuit breakers. From this it will be seen that the third-rail distribution sections are arranged so as to be fed from two substations, and each substation feeds two sections so that if one substa- tion should fail another source of power is provided. These sections vary in length from one to two miles. The third rails are also arranged with a gap of 50 ft. at each section break. This is done to prevent a single car from bridging a live section to a dead section, as might happen if the two shoes on the opposite ends of a car were to be in contact at the same time. It is the usual practice to install equalizing circuit breakers along the route of a section so as to equalize the load. The breakers connect the third rail to a common bus, and they are operated in conjunction with the emer- gency alarm like the feeder breakers. There are no parallel positive feeders used, as the electrical conduc- tivity of the third rail is made great enough and the section short enough so that the drop in voltage is negligible. Welding Wrought Iron and Steel Some Practical Instructions as to Procedure Which Experience Has Shown to Be Necessary for the Best Results By H. L. Unland Power and Mining Engineering Department, General Electric Company IN ADDITION to the generating and welding equip- ment necessary for electric welding it is often desir- able to have on hand some miscellaneous pieces of equip- ment. For example, odd pieces of carbon, or copper blocks, make excellent dams for holding the molten metal in place, and in making a weld which must be smooth on one side, a piece of copper or carbon held against it will give the desired result. Iron or steel can be used for this purpose if care is taken not to weld to it. In filling in a hole the bottom may be closed with a plate of carbon or copper until sufficient metal has been added to hold. In using such pieces, care must be taken not to allow the arc to play directly on them, otherwise the weld will probably be contaminated with, the ma- terial, or else the guide piece may be welded in solidly so that it cannot be removed. For cleaning the parts to be welded a steel wire scratch brush is valuable. In making contact with the piece to be welded, if the lead is bolted to an iron plate which forms the top of a work bench the work may be welded by simply laying it on this top, the contact being sufficient to carry the current. Where the work is too large for the table it may be set beside it, and. a bar laid across will provide sufficient current-carrying capacity. In some cases a vise mounted on the table will be found desirable for holding the work. A convenient terminal for the positive lead consists of a copper hock with the cable bolted to it. This may be laid on the work or hooked on a projecting part. Where welding is to be done in a room where there are other employees screens should be provided around the welding operator. These should be high enough to pre- vent light from striking the ceiling, as the flickering light from welding might prove objectionable. A recep- tacle containing water is desirable for cooling the elec- trode holders. Also gas burners for preheating and fire brick, sand or sheet asbestos for covering are useful, especially for cast-iron work, which in many cases should be preheated uniformly to a red heat, and welded while at this temperature. Some operators feel that gloves are necessary, others find gloves to be in the way. The arms, neck and face, however, should be covered, since exposure of these parts will probably result in burns similar to sunburn. Flux Considered Unnecessary Many experienced welders consider that flux is un- necessary. If the work is kept clean by brushing at fre- quent intervals, and ordinary care is taken in the oper- ation, an experienced welder can make a good weld without flux. Clean metal is the most likely to make a good, strong weld. Any foreign matter will contaminate and weaken it, or else make it hard. Impurities may also make the metal porous and spongy, due to libera- tion of gas. Pieces of foreign material may prevent the molten metal from filling all parts of the weld and cause cavities. Methods of cleaning consist of pickling, washing with gasoline or lye, boiling with lye, sand blasting, chiseling, scratch brushing, etc. In welding heavy sections where it is necessary to deposit several layers of metal the surface of the preceding layer should always be clean before the next one is started. Each section should have its edges beveled to give a total angle of approxi- mately 60 deg. and should be separated by 1 in. space. Sections less than J in. thick need not be beveled, but should be separated slightly. In some special cases angles as low as 30 deg., and as high as 90 deg. may be used, but the average safe angle is 60 deg. In weld- ing extremely heavy sections it may be necessary to have these beveled on both sides. In making such welds the layers should be applied first to one side and then the other to prevent warping. In welding long seams the edges should be ;1 in. apart at the end where the weld is started, and the distance should be increased IJ per cent of the length at the extreme end. This takes care of the expansion and contraction of the metal. In welding cracks in plates, forgings or castings the cracks should be chiseled out to get a good bevel, with i in. to in. clear opening on the back or to the bottom of the crack. Welding with Metallic Electrodes To make a satisfactory weld using the metallic elec- trode, the arc should be kept short, not over i in. in length. The current should not be great, as excessive current causes burnt or porous metal. The arc should also be kept constant in length to insure uniformity in the metal deposited. In welding a seam the electrode should be moved in a zigzag or circular path, advancing along the seam. The metal will adhere only to the sur- face of the work actually played on by the arc, so care must be taken to bring the arc in contact with the whole surface to be welded. The electrode should be connected to the negative terminal. If the polarity is reversed, the arc will be more difficult to maintain and the de- posited metal will not be as good as otherwise. 582 Electric Railway Journal Vol. 54, No. 12 The operation of welding overhead is the same as m normal welding, but difficulty may be experienced in holding the electrode steady, especially if the position is cramped. The appearance of an overhead weld is some- times marred by drops of metal projecting or by uneven thicknesses of deposited metal. This can be overcome by proper manipulation of the electrodes. A rest for the arm will sometimes assits the operator in holding the electrode steady. Using Carbon Electrodes With the carbon electrode, the holder should grip the electrode from 4 in. to 5 in. from the end. Ordinarily the electrode should be tapered to a blunt point at the working end to keep the arc from wandering. As tha electrode burns away with use the holder should be moved back to keep the length of the working carbon constant. The arc should not be too short when welding or depositing metal, as there is danger of depositing carbon in the weld which results in a hard weld. In cutting or melting off metal the arc should be kept short, about i in. being an average length. For cut- ting, the arc is operated like a gas torch, being held in one position long enough to fuse the metal and allow it to run off. In cutting thin plates the arc is held in one spot until a hole is melted through the metal, then the electrode is slowly advanced along the desired line. For thick pieces such as shafts, castings, etc., it is' de- sirable to start at the top on one edge and work down, allowing the molten metal to run down through the cut. It is often necessary to follow the molten metal down with the arc, to keep it melted until it runs off. The width of the cut will depend on the size of the electrode used and the skill of the operator in keeping a straight line. To deposit metal with the carbon electrode the arc is not held in one place long enough to melt through. A pool of molten metal is established and a rod of metal is fed into the arc and melted down on to the work. All should be heated thoroughly to insure a complete union before more metal is added. Since heavier current can be used with the carbon electrode than with the metallic, faster work can be done in depositing metal. Due to the high temperature and large amounts of heat liber- ated when using the carbon electrode, the electrode holder is apt to become very hot, and under some condi- tions to melt away at the end. Cast-Iron Welding Cast iron, due to its properties is unsatisfactory for welding by any method. Its low strength and consider- able brittleness cause it to break from expansion and contraction strains unless precautions are taken, and even then a successful weld cannot be assured. Pieces of simple cross section and heavy pieces present much less difficulty than complicated shapes, but due to the undependable nature of cast iron, care should be use with these. The experience and skill of the operator are large factors in producing a successful weld. By experimenting a number of operators have learned to weld copper to copper, copper to brass, and steel and bronze to bronze, as well as Monel metal, high-speed steel and Stellite. The special uses are rather limited in their application and the methods vary, so it is recom- mended that each operator experiment along the lines suggested by his experience and with which he is most familiar. Saving Oil in the Shop Oil Purchased on a Car Mileage Basis Necessitates More Care in Handling — Covered Cans Pre- vent Collection of Dust and Dirt THE former method of handling oil for journal boxes and motor armature bearings at the An- derson shops of the Union Traction Company of In- diana was to take the oil from the storage house in open buckets and dip it out with small mesures. Oil is purchased on a car mileage guarantee contract and it was believed that this method of handling the oil was permitting a needless waste and allowing the oil to collect dust and dirt which, of course, was a decided obstacle in the way of efficient lubrication. Two-gallon oil cans such as shown in the accompany- ing illustration are now being made from galvanized CANS DESIGNED TO SAVE OIL AND KEEP IT CLEAN BEFORE USE iron in the company's tin shop. An additional strip of metal near the base of the handle on the can forms a receptacle for the mea.suring cup, which has to be lifted up before it can be removed. The can is filled through the nozzle by means of a funnel and the oil is poured out again for use into the small measuring cup. These cans are being made up for all the shops of the com- pany, and it is believed that a noticeable quantity of oil will be saved through their use and that the oil will be kept much cleaner. Massachusetts Tech Endowment The Massachusetts Institute of Technology is launch- ing a $10,000,000 campaign for an endowment fund, to cope with the high cost of living. "Mr. Smith," a friend of the Institute who prefers to remain un- known, has already given $7,000,000 to the school and now comes forward with a promise of $4,000,000 pro- vided another $4,000,000 is raised for this endowment. "Mr. Smith" is not a Tech man, but is a firm believer in the Tech type of education and its vital importance for American industry. The sum of $8,000,000 is re- quired to meet the pressing needs of the Institute. The endowment fund committee is headed by Coleman du Pont, and the other members are Theodore N. Vail, Charles A. Stone, Otto H. Kahn, and Charles Hayden of New York, Everett Morss of Boston, Ed- mund Hayes of Buffalo, and Richard C. Maclaurin, president of the Institute. It is hoped that subscriptions wilPbe received not only from Tech men but from those who have profited from the services of the Institute's graduates. September 20, 1919 Electric Railway Journal 588 Pneumatic Tools for Breaking Up Pavement By Using Special Points a Tie-Tamping Machine May Be Used for Cutting Asphalt, Toothing Out Paving Blocks and Breaking Up Pavement By WALTER P. BURN, M. E. IngersoU-Rand Company BREAKING OUT ASPHALT WITH TIE BREAKING up the pavement overlay in order to uncover the track in city streets for the purpose of making repairs or renewals has always been a very tedious job. The common method of removing pavement by hand is by using a "bull-point" on con- crete or paving blocks and a chisel on as- phalt or other bitu- lithic pavement. Numerous devices have been invented for the purpose of removing pavement, and the one described herewith is the pneumatic tool, the principal of which is the tie-tamping machine. This machine is in effect a small hammer drill and when fitted with the proper point is very efficient in removing pavement. For removing asphalt or simi- lar pavement the machine is fitted with a special chisel held at an angle of about 60 deg. to the hori- zontal by the operator. It cuts the pavement into squares which can then be removed with a shovel. The operator will soon find out the correct angle at which to hold the machine and this is practically the whole secret of successful cutting. He should be cautioned not to bear hard upon the two handles, merely using them to guide the tamper along the line which it is desired to cut. Bearing down will drive the chisel into the underlay and cause wedging. Paving blocks are very quickly removed by the use of the tamper fitted with a "bull-point." In this operation the workman places the "bull-point" in the joint between the blocks, opens the throttle and as the AND CONCRETE PAVING -TAMPER machine drills into the bond, bears back easily, wedging the block out. The rapid vibration of the hammer is sufficient to loosen up all the mortar between the blocks so that they come out easily. The foregoing does not apply to the re- moval of brick pave- ment. In this case when ordinary mor- tar has been used for the bonding, the tie tamper may be suc- cessfully applied and should be fitted with a small flat chisel instead of a "bull-point" and used in exactly the same manner as when removing pavement blocks. Too much must not be expected of the machine, how- ever, and it will not remove in the most satisfactory manner bricks which have been bonded in cement mixture, as this is practically solid pavement and must be broken up in much the same manner as con- crete. Some of the bricks may be saved, however, by breaking them out in groups. The bricks around the edge of the group will be partly destroyed, but those in the center may be broken out with a hammer. Concrete has proved to be an ideal means of protect- ing the tie rods, fuse boxes, etc., and for keeping the track from spreading or warping so that its use would undoubtedly be more general if it were not for the fact that it has been very difficult to remove when it was desired to make repairs or renewals. The tie tamper provides a means for removing concrete from tracks in a most efficient and rapid manner. In this process CUTTING ASi'IlALT PAVEMENT AND REMOVING PAVING* BLOCKS ALONG THE LINES OP THE THIRD AVENUE RAILWAY, NEW YORK 584 Electric Railway Journal Vol. 54, No. 12 the machine is fitted with a "bull-point." Two men are usually employed, one to operate the tamper and one to shovel out the broken concrete. They can al- ternate their work in order to prevent undue fatigue. The tie tamper operator when starting a break, holds the tool in a vertical position but without bearing on it and opens the throttle, gradually easing off the tool to an angle. This results in the formation of a hole whose diameter is roughly three times that of the tamper, the concrete being broken up into small pieces, which are then raked out by the assistant with any sort of a small bent bar or scoop. This process is repeated until the concrete overlay is completely broken through. From this time on the process becomes eas- ier and more rapid as the method usually employed in breaking dovra a face is used. The operator holds the tool 3-in. to 4-in. back of the face, and in a vertical position, easing off as the tool begins to drive into the concrete. This results in breaking up the concrete not only by means of the vibratory hammer action, but by a wedging action which breaks the concrete out in fairly large chunks. This operation can be successfully performed by any class of labor which would be able to take out the ma- terial by hand, and yet some difficulty has been ex- perienced. Probably the main source of trouble in this respect has been a tendency to try to do too much. BULL, POINT AND CHISEL FOR USE WITH TIE TAMPER The Third Avenue Railway in New York City and the Chicago Surface Lines have used the tie tamper very successfully in breaking out concrete both outside the rails and inside around the tie rods and fuse boxes, using the "bull-point" as described in the foregoing. The New York Company's foreman in charge of this work claims that one man can easily take out about 20 cu.ft. of concrete per day by this method. The same process has also been used on a number of street rail- ways in the past two years, and in the few cases where success has not been obtained it is the belief of the tool manufacturer that the failure was due first to the use of the wrong kind of point and second to the attempt to try to do too much and work too fast. The tie tamper used as a tool in breaking concrete has its limits. No attempt should be made to use it on concrete more than 8 in. thick, as it is not power- ful enough for this work. For concrete 8 in. or more thick better results by far will be obtained from the use of the tool known as the drift-bolt driver. On the Western coast, the drift-bolt driver is being used to take out "asphalt concrete" consisting of asphalt, sand and broken stone. The material is broken out easily, sometimes as much as 2 ft. at one cutting. When the asphalt concrete is soft as in warm weather, or in the heat of the day, cutting is more difficult, so that best results are obtainable in the early morning and late afternoon. In ordinary concrete, the drift-bolt driver will cut out material faster than the tie tamper. How- ever, the principal advantage in using the latter, is its adaptability to other work. The tie tamper will tamp ballast, cut asphalt paving, and tooth out paving blocks, work for which the drift-bolt driver is too heavy. Cap for Mounting Apparatus on Line Insulators THE problem of mounting hardware and other ap- paratus on line insulators has occupied the attention of transmission engineers and designers of outdoor high- tension switchgear for a number of years. Many solu- tions have been tried, and one of the latest is a cap for mounting on a high-voltage insulator just placed on the market by Hickey & Schneider, Inc., Elizabeth, N. J. The cap consists of a top disk from which ex- tend three pairs of ears, between which three clamp legs are pivotally mounted. The lower part of each leg is shaped into two fingers, which grip around the insulator head in the tie-wire groove. To pre- vent fracture of the porcelain, fiber or copper cushions are used between the metal of the cap and the por- celain. Each clamp leg may be ad- justed separately so as to provide an accurate grip on slightly oval or irregular shaped insulators. The upper part of the clamp fingers is threaded and a set screw is used to bring the fingers into contact with the insulator head. The insulator caps are made to fit all standard types of insulators. INSULATOR CAP MOUNTED ON A 3.5,000-VOLT LINE INSULATOR New York Executives Meet at Syracuse As this issue goes to press, Sept. 18, officials of the electric railways of New York State were in session at Hotel Onondaga, Syracuse, to consider the present condition of the industry in the State. The meeting was held under the auspices of the New York Electric Railway Association, and was called by President E. A. Maher, Jr., at the request of the committee on ways and means to produce additional revenue, J. K. Choate, chairman. It will be remembered that the committee reported to the association at the Lake George meeting held on June 7 to the effect that the governor had been petitioned to appoint a committee to make a study of the traction situation, but that the governor had stated that such a committee is constituted by the Pub- lic Service Commission. The committee then appealed for the relief for the railways to the Commission. September 20, 1919 Electric Railway Journal 585 Automatic Cleaning^ Feature for Underfeed Stoker ANEW form of stoker, known as the automatic cleaning type, has been placed on the market by the Underfeed Stoker Company of America and already stokers are under construction for the equipment of 50,000 hp. of boilers. The feature of the new stokers which gives it its name is the dump plate at the rear, as shown in one of the accompanying illustrations. Fundamentally the stoker is the same as the Jones stoker which has been marketed by this company for twenty-five years, but in the new form several im- provements have been incorporated. In the older stoker the coal piled up on dead plates on either side of the retorts and was there permitted to form a clinker. At periodic intervals it was removed through front door openings. With some coals this proved to be Sizes of Beams vary with t/o. of Ret or f 5. 9"ar>d I7'as shown up to and including\~j 4fteforts UNDERFEED STOKER WITH AUTOMATIC CLEANING FEATURE, SHOWING DUMP PLATE s/Vfe of Retorts to suit Hp. of Boiler Furnace^ ~ Widtii i^ariable nifh Number of Retorts Section A-A DIAGRAMMATIC CROSS SECTION OF FURNACE a difficult proposition as very heavy clinkers were formed and, of course, during the cleaning period the efficiency was reduced if much time was consumed. In the new stoker the tuyeres slope at about 11 deg. and there is a progressive backward movement of the entire fuel bed toward the dump plate at the rear. By the time the dump plate is reached the combustible in the coal has been quite well consumed, and only dead ash is deposited on the dump plate. The dump plate is balanced and is easily operated by hand, the weight of the clinker itself tending to assist in the operation. The novel features in the design of this stoker are said to be these: (1) The very small inclination of the tuyeres which prevents "avalanching," and clinker formation on the bridge wall. (2) Special design of side tuyeres, which are air cooled, to prevent clinker formation on the side wall. (3) Protection of the front wall by front wind boxes. (4) Accessibility of the stoker throughout the entire front through openings provided in the front wall over each row of tuyeres. (5) Regulation of the coal supply by the Cole automatic valve, which the company has used for years. By means of this valve the amount of coal supplied to the furnace is always in direct proportion to the air supplied by the fan. (6) Large coal capacity of retorts, which are very deep, permitting heavy reserve capacity and slow dis- tillation of the gases. New Arc Welding Set Developed ANEW plastic-arc welding unit has just been brought out by the Wilson Welder & Metals Company, New York City. It is composed of a dynamotor and cur- rent control panel. The generator is flat-compound wound, and maintains the normal voltage of 35 on either no load or full load. The control panel has been designed to provide a constant-current controlling panel, small in size, light in weight, simple in operation and high in efficiency. The panel is of slate 20 in. x 27 in. and on it are mounted a small carbon pile, a compression spring, and a solenoid working in opposition to the spring. The solenoid is in series with the arc so that any variation in cur- rent will cause the solenoid to vary the pressure on the carbon pile, thereby keeping the current constant, at the value it is ad- justed for. Three switches on the panel provide a means of current ad- justment, between 25 and 175 amp. The arrangement of the welding circuit is such that 25 amp. always flow through the solenoid, when the main switch is closed, whether the welding current is at the minimum of 25 amp. or the maximum of 175 amp. The balance of the welding current is taken care of in bypass resistances shunted around the solenoid. This outfit can be furnished as a dynamotor unit, with standard motor characteristics as follows, 110 volts, 220 volts, direct-current, or 220-440 volts, 60 cycle, two or three-phase alternating current, also as a gasoline-driven unit, or it can be furnished without a motor, to be belt-driven. The normal generator speed is 1800 r.p.m. The net weight of this new outfit in standard characteristics is 800 lb. with d.c. motor, 807 lb. with a.c. motor, 1200 lb. with gasoline engine, and 550 lb. as a belted outfit without motor. These new dynamotor sets can be mounted on a truck for portabil- ity, if desired. DYNAMOTOR AND CONTROL PANEL Amalgamated Association Continues in Session THE meetings of the Amalgamated Association o^ Street & Electric Railway Employees in Chicago, began Sept. 8, continued all of that week, and carried over into the present week. The sessions on the final three days of last week were devoted principally to the discussion of resolutions presented before the body. On Thursday afternoon the association listened to an address by Mrs. Tom Mooney of San Francisco and on Saturday morning to one by Secretary Morrison of the American Federation of Labor. Mr. Morrison spoke in place of President Gompers who was unable to attend. 586 Electric Railway Journal Vol. 54, No. 12 EMERGENCY USE OF A JACK ON A TRUCK New Jacks for Handling Railway Equipment THE accompanying illustrations show three new t.vpes of jacks which have been developed by the Joyce Cridland Company, Dayton, Ohio, with special reference to their use by electric railways. The No. 89 jack is single-acting and operates on the downward stroke of the lever. This is a combination of a jack with a detachable ground lift which may be used in emergency cases where a chain cannot be used. The jack pivots on its base from a vertical position to within 20 deg. of the horizontal and lifts, lowers or pulls at any angle. The base is ribbed to prevent slipping when the jack is operated at an angle and to provide additional strength. The construction allows the ground lift foot of the rack 1o drop down into the base, thus permitting the placing of the foot under low loads. The cap is provided with a corrugated surface arranged to grip the links of a chain and hold them firmly in position. These corrugations also provide for the use of a detachable ground lift so the load may be taken at any angle. The change from a raising to a lowering action is accom- plished by shifting a small lever on the outside of the flange. This jack has a capacity of 15 tons, a height of 24 in., a rise of 121 in. and weighs 75 lb. The No. 96 jack, espe- cially designed for pulling and straightening tele- phone, trolley or lighting poles, also pivots on its base with a similar con- struction to that just de- scribed. The head is es- pecially forged so that the links of the chain are held securely as the load is lifted. To use the jack for lifting a pole an I-beam base is placed beside the pole and the jack set upoii it. The chains can then be hooked around the pole and placed over the forged recess in the head, and the jack is ready for operation. This jack has a capacity of 15 tons, a height of 37 in., a rise of 27 in., and weighs 91 lb. The No. 153 ball-bearing jack is especially designed for one-man operation, and for use under low loads. SMALL ONE-iL\N JACK LIFTING A POLE BY MEANS OF A JACK Three heights are provided, of 9, 10 and 11 in., respec- tively, and the rise varies from 31 to 51 in. Useful Chart Showing Cost of Evaporating Water in the Steam Boiler THE engineering department of the Westinghouse Electric & Manufacturing Company has prepared the accompanying straight-line chart to simplify calcu- lation of evaporating costs. The inclined lines represent the relation of costs of coal per ton and corresponding costs of evaporating 1000 lb. of water from and at a temperature of 212 ■| £ 3 4 5,6 7 6 9 10 Cost of Coal perTon of 2000 Ib.in Dollars CHART SHOWING THE RELATION OF WATER EVAPORA- TION AND COAL COSTS IN STEAM BOILERS deg. Fahr. for rates of evaporation between 5 and 11 lb. of water per pound of coal. Enough lines have been drawn to cover the range of ordinary practice. The chart can be used not only to determine the cost of evaporating any quantity of water at any price of coal but it can be used to determine the evaporation required to generate steam at a certain cost. September 20, 1919 Electric Railway Journal 587 Iowa Operating Men in Session Midyear Inspection Meeting, Separate From Light- ing Association, Proved Great Stimulus THE midyear meeting of the operating men of tiie Iowa Electric Railway Association, in session at Davenport, Iowa, as this issue goes to press, promises to be a most successful experiment. There were more than sixty delegates present on Wednesday, and in spite of a stormy day the interest and congeniahty were not dampened. Four papers were presented at the morning session which convened at the Blackhawk Hotel at 10:30 R. H. Findley, superintendent of track and roadway Omaha & Council Bluffs Street Railway, speaking for the interest of the way and structure delegates, out- lined the most up-to-date and efficient methods of track construction and maintenance. For the benefit of the shop and equipment delegates, John Sutherland, master mechanic Tri-City Railway, Davenport, discussed the developments in rolling stock and equipment parts which permit great economy in maintenance and operation and placed particular emphasis on proper inspection. J. H. Seisseger, general superintendent Mason City & Clear Lake Railroad, speaking for the benefit of the transportation delegates, discussed the service and methods of this city and interurban property. For the interest of the power and distribution delegates, John M. Drabelle, electrical engineer Iowa Railway & Light Company, Cedar Rapids, discussed the most ap- proved methods and equipment of power distribution for electric railways. In the afternoon, the party split up into three divi- sions and conducted on special cars under the direction of the respective head of that department of the Tri- City Railway, inspected the shops, track and power house of the Tri-City system. In the late afternoon all delegates assembled at .the car shops at Rock Island and proceeded on special cars to Watch Tower Inn for dinner. The evening was spent at a theatre in Daven- port. Plans at Next Federal Hearings As announced last week, the Federal Electric Rail- ways Commission will resume its hearings on Sept. 29 at Washington. During these sessions it is expected that the labor men will present their case, and also that a number of managers, experts and consulting engineers who could not arrange to attend the earlier meetings will testify. Among the witnesses in this latter group who have been invited to be in attendance are: Milo R. Maltbie, New York; Walter Jackson, New York; Morris L. Cooke, Philadelphia; Homer Loring, Boston; Henry Ford, Detroit; R. S. Bauer, Lynn, Mass.; John A. Van Allen, Buffalo; John A. Beeler, New York; Joseph B. Eastman, Interstate Commerce Commission ; T. E. Mitten, Philadelphia, Pa. With evening sittings it is expected to conclude the hearings in one week. Figures compiled by the actuarial department of the Bureau of War Risk Insurance in Washington, show that more than $107,758,200 of government insurance was carried by railroad men engaged in the transporta- tion service of the Engineer Corps, American Expedi- tionary Force, and upon railroads in the United States. The engineer corps suffered in battle, deaths numbering fifty-nine officers and 1207 enlisted men. Letters to the Editors Railways Must Sell Their Transportation Nottingham Corporation Tramways, England Nottingham, Sept. 1, 1919. To the Editors: I have read with interest the editorials and articles which have appeared in recent issues of the Electric Railway Journal advocating the merchandising phase of the street railway industry ; I have also noticed that this idea will receive much attention in the Con- vention Number with its theme "Selling Transporta- tion." It seems to me that, whilst as a general rule the street railway industry is similar to other concerns in this respect, there are, however, essential differences. In the first place, the wholesale merchant will allow a lower average price on a large order than on a small one, and similarly street railway companies grant con- cessions by selling tickets at a reduced rate for a whole- sale quantity. On the other hand, whereas one class of industries supplies us with the necessities of life (food, clothing, etc.), another class supplies the luxu- ries ; but the street railways have perforce to provide for both the business and pleasure riding. With the universal rate of fare, a business man will not ride past his destination although his companion of the jour- ney may be travelling a considerable distance further for the same original cost. If other industries were to offer their products on the same basis, it is reasonable to suppose the greatest advantage would be taken by the customers. If, for example, a tobacconist were to offer packets of ten, twenty, twenty-five, fifty and one hundred cigarettes at one standard price, say the value of a packet of fifty, I doubt very much whether his balance sheet would show a profit. The zone system of fares, which has so long held sway in England, un- doubtedly places the street railways in a better position with regard to the "selling" aspect. Again, electric railway concerns are making further concessions which do not enter into the merchandising of other commodities: I refer to the reduced rates for workmen before a certain time and the cheaper rates at which children are carried, in most towns, throughout the day, I cannot think of any parallel to the former, but it is true that amusement houses offer children the privilege of seeing their performances at reduced rates. I have just perused the editorial in your issue of Aug. 2, relating to the greater interest which the pub- lic is taking in the wage disputes of the Chicago train- men. To my mind, the street railway industry is practically unique in its main function of providing comfortable and adequate transportation for the pub- lic because, unfortunately, to nearly every person, trans- portation has no real tangible value. It would seem apparent from a psychological point of view that the public does not look so unfavorably upon the price of luxuries as compared with the price of necessities. In exchange for cash, the grocer, butcher, etc., sells comestibles necessary for life; the tailor, hatter, draper, etc., provide the wearing apparel; the ironmonger. 588 Electric Railway Journal Vol. 54, No. 12 furniture dealer, etc., supplies the goods and chattels for the household; and in each case the buyer receives something which he or she can see, grasp or touch. As already mentioned, there are many shops, merchants, ets., from which we obtain luxuries in the form of candy, music, tobacco, etc., something tangible being obtained in most instances. There are, of course, others who provide luxuries such as picture shows, sports (base- ball), etc. which although possessing no tangible value, nevertheless provide enjoyment for the public, as indeed a luxury should. But when we review the street car ride, there appears to be no such consolation for the patron. The average busimess man will board a car, pay his fare, take a seat if possible, and then either smoke, read his paper or enter into conversation. What interest does he find in the streets, houses, shops, factories, stations, or the city's celebrated examples of architecture which he passes every day? Until he changes his business desti- nation or his place of abode, he has still the same monot- onous daily ride or rides, and when he has returned home for the night, he has great difficulty in ascertain- ing what he has received in exchange for his car fare. In a very much less degree, pleasure riding also presents the same difficulty. At the present time it seems that the public does not realize the vital necessity for city transportation, both for their own advantage, and for the good and de- velopment of the community in general, until street car service is suspended or abandoned. In conclusion I would say that I believe the public should, first and foremost, be convinced that street car transportation is a vital necessity for their welfare, and when this object has been achieved, steps should be taken to show the various costs which enter into the price of providing service, finally proving that this can- not be provided at less than cost. The intangible element of the street car ride offers much scope for the psy- chologist. A. A. Jackson. Repairs to Wood-Block Paving The Toledo Railways & Light Company, Toledo, Ohio, Sept. 10, 1919. To the Editors: The article in your Aug. 16 issue, by J. S. Crandell, regarding repairs to wood-block paving has been noted with interest. From the photographs it would seem that the wood blocks had originally been laid on a very deep cushion of sand if the concrete which is shown as being placed is taking the place of a sand cushion. It is natural to expect such results as those described if a cushion deeper than about i in. of sand is used. In my opinion, also, there was too much crown on the pav- ing originally and there is too much crown in the pav- ing as repaired, for best results. I believe in a level paving. I also note that the web of the rail is filled either with a wood strip or with sand, and that the paving block is laid without being nosed under the rail head. I think also that this is the cause of some of the bulg- ing. I do not like to "throw cold water" upon the process described, but am very skeptical as to the results of laying wood block directly on solid concrete except for the tar coating. I am not able to tell just exactly why, as yet, this method is not a success, but will say that last year and this year we have been laying blocks directly upon a pitch-covered concrete base and I must say that the results are anything but satisfac- tory. My opinion of a wood-block paving is that it re- quires about a half-inch cushion of sand, with the blocks laid level across the track and with the blocks laid next to the rail so as to nose under the rail head, the joints to be properly filled with a mastic (and not a pure pitch filler). I notice that the author takes great pride in having in- vented a separating strip or spacer. This separating spacer, in my opinion, is inferior to the lug wood block which automatically provides proper joint spacing. We are using lug blocks entirely in this city and believe they are worth while, although feel that the lugs should be about three-eights inch deep instead of one-fourth inch as we are at present having them made. I am writing this more as a letter of warning than as a letter of criticism, for if others lay the blocks direct on a solid foundation I am inclined to believe they will experience the same trouble as we have had. It would give me pleasure to hear from other en- gineers who have tried this method of paving, to show whether they have had the same trouble as we have had, for originally this method of paving was suggested by our city engineering department and was agreed upon by this company against my judgment. A. SWARTZ, Assistant Manager of Railways. All Electric Railway Publicity Agents Should Be at Atlantic City Norfolk, Va., Sept. 16, 1919, To the Editors: Publicity men associated with the street railway in- dustry in the United States will doubtless be deeply gratified that President Pardee of the American Electric Railway Association has directed that Tuesday afternoon, Oct. 7, be devoted to a consideration of their problems and for a general discussion of ways and means for co-ordinating the work of the various in- dividual companies with the general publicity plan of the association. There is much work of a most excellent nature that would be of great value to the industry at large that now is used in a restricted territory, simply through lack of a plan whereby the entire industry could profit. Several attempts have been made to put into operation some plan whereby this great mass of endeavor could be directed to the general good, but without the indorse- ment of the association little or nothing could be done. Now that President Pardee has directed that a special program be provided for this all-important subject it is certain that the desired end will be accomplished. A program will be prepared and issued within a very few daj^s, and it is the desire of the officers of the asso- ciation that every man engaged in street railway public- ity in the United States and every executive also arrange now to be present and take an active part in the discussions which affect his particular work. Several meetings of a few publicity men have been held since the 1916 convention and from each' has re- sulted many benefits to those attending, and with the support of the association all that we have been striving for all these years is possible of achievement. The value of publicity to the industry has been so clearly demonstrated during the trying times of the September 20, 1919 Electric Railway Journal 589 great conflict and its increasing worth in the more perilous times which have followed, that there are few companies that do not fully recognize it, and the At- lantic City convention will be an inspiration to these few. The work of the association can best be forwarded through this agency, and every publicity man should be present. There will now be no trouble in securing leave of absence for the day of the convention. Every executive will gladly arrange for the trip and in the judgment of the officers of the association should imme- diately direct their publicity representative to be on hand, not only for what he may learn from his fellows, but for the benefit his experience will be to those who are engaged in the same line of endeavor. Therefore, let us of the craft adopt the slogan "On to Atlantic City!" and meet there on Monday, Oct. 6, prepared to enter the publicity meeting Tuesday after- noon ready to teach and to be taught. It is needless to urge executives to be present. They have learned within the past few years the absolute necessity of properly directed publicity, and they know that if this great force can be made nation-wide, under the efficient direction of the American Electric Railway Association, a great stride forward will have been taken. Those charged with the proper conduct of the industry will be there to plan with and for us a yet wider field of usefulness. Leake Carraway, Chairman Program Committee. Purchasing Agents and Storekeepers Urged to Attend the Atlantic City Convention Kansas City, Mo., Sept. 16, 1919. To the Editors: Every purchasing agent and storekeeper for an electric railway system who can possibly attend the Atlantic City convention should do so. There has never been a time when the question of the materials to be used by street railway companies is so important as at the present. This of course, results from the neces- sity of obtaining equipment and materials at the lowest price possible, in order to meet the present increased operating costs of railway properties. The manufac- turers realize this situation and are offering many new ideas and materials to assist in cost reduction. The question of service and source of supply has changed during the past three years, and it is important that the purchasing agents and storekeepers should be familiar with present conditions in order to obtain the proper materials at lowest price and avoid either carry- ing too heavy a stock or permitting some stocks to become exhausted on account of the difficulty in receiv- ing prompt shipments. There are new manufacturers of street railway supplies, and some who were pre- viously in the supply business have discontinued their lines or consolidated with other companies. It is a recognized fact the question of holding the cost of equipment and materials purchased to a minimum is next in importance to the amount of gross revenue received. This not only involves the original cost and of course the quality of the materials purchased, but care must be taken to avoid tying up too much money in stock accounts and also to avoid carrying obsolete materials or permitting the deterioration of some mate- rials. There are so many advantages to be obtained by attendance at the convention this year that it would seem practically every company should send either its purchasing agent or its storekeeper, in view of the benefits which will result from a careful examination of the exhibits and the information received from the manufacturers' representatives, as well as the daily sessions of different convention sections during the week. E. E. Stigall, Purchasing Agent and Chairman of Program Committee. Association News ATLANTIC CITY CONVENTION, OCT. 6 TO 10 Publicity Men to Meet SUPPLEMENTING the brief note in the Sept. 13 issue of this paper, it is now possible to give more details regarding the meeting of publicity men which is to be held in connection with the Atlantic City con- vention. This gathering will be in charge of a com- mittee consisting of Leake Carraway, Virginia Rail- way & Power Company, Norfolk, Va., chairman; J. W. Colton, the Connecticut Company, New Haven, Conn., and Luke Grant, Chicago (111.), Elevated Railways. The date of the meeting will be Tuesday, Oct. 7, and it is scheduled for the afternoon. It is proposed at this session to have two or three papers or short addresses and devote the remainder of the session, and other sessions, if such are required, to a discussion of ways and means for co-ordinating the work of vari- ous companies in accordance with the general plan of publicity which the association has undertaken in con- nection with the hearings before the Federal Electric Railways Commission. Exhibit Committee Holds Important Meeting A MEETING of the convention exhibit committee of the American Association, C. R. Efiicott, chairman was held at association headquarters on Sept. 17. The report of Director of Exhibit Wells indicated that practically 57,000 sq.ft. of exhibit space has been as- signed to 137 prospective exhibitors. Plans were made for pushing the campaign still further for the rental of space because, while at the present the totals of space and number of exhibitors are as great as in 1916, there is still some very desirable space to be disposed of. Arrangements are being made for the showing of "movie" films for such exhibitors as desire to show pic- tures, for the distribution of pay telephones in different parts of the pier, etc. Mr. Wells will move his head- quarters to Atlantic City on Sept. 24 and members of the committee will be on hand there during the week preceding the convention. The fifteenth Annual Convention of the International Railway General Foreman's Association was held in Chicago, Sept. 2-5. The three principal topics consider- ed were safety first, the welding of locomotive cylinders and other autogenous welding, and the functions and proper design of draft gears. News of the Eledric Railways FINANCIAL AND CORPORATE • TRAFFIC AND TRANSPORTATION PERSONAL MENTION New Interurban Inspected Engineers Go Over the New Cleveland- Youngstown High-Speed Line Now Nearing Completion One of the special features of the "get-together" meeting of the Cleve- land Engineering Society with local sections of the National Societies on Sept. 9 was an inspection trip over the new rapid transit line of the Cleveland & Youngstown Railroad. This line connects the retail business center of the city of Cleveland, Ohio, with the Heights residence section. The party was taken over the route on a special train of flat cars. It was the first train to pass over the new road. Engineer Describes System During the forenoon session at the Hotel Cleveland, W. E. Pease, engineer of the Cleveland & Youngstown Rail- road, delivered a brief illustrated talk on the engineering problems involved in the construction of the road. The rapid transit idea originated in a big- real estate development in the Heights section in 1911. The Van Sweringen interests, which control an immense section of land there, promoted the new road and have brought it to its present state of completion. Many changes have been made since the original plans were drawn, Mr. Pease said, all of them being due to problems that arose in connection with obstacles of one kind and another that were met in the course of developing the route. Mr. Pease also showed illustrations of the proposed new union station, now in course of development, with the long line of warehouses that form a part of the big undertaking. An immense freight terminal is also under way. During the trip over the road, many favorable comments were heard in re- gard to the heavy construction of bridges and culverts. The road was really built on a steam road basis. The grades are not excessive at any point, although the railway reaches rather a high level at the east end. Four Track Bridges The bridges for carrying the streets over a long cut are built to accommo- date four tracks. In fact, this plan has been carried through the entire con- struction work. One track is com- pleted and ballasted the entire dis- tance and the second one is progressing well to that end. Plans have been made to have the double track in opera- tion some time in October. The new tracks will be used as far as East Thirty-fourth street, where a con- nection will be made with the tracks of the Cleveland Railway to carry the cars to the postofRce loop. This will give the road access to the heart of the city. Side-door cars, similar to the 1100 series of the Cleveland Railway, will be used in the beginning. They will have special motor equipment for a speed of 50 m.p.h. The interior will be much the same as the local cars and they will be furnished with cross seats. Later on a type of cars for permanent use will be adopted. The rate of fare between the Heights and the city will be 10 cents. It is not expected that much local city business will be done, as the road is built upon its own right-of-way, and in places beside other railroad tracks. In the Heights section the stops will be one- third of a mile apart. The streets are so laid out that they reach common points at the railway stops. Under the plans used in laying out the sti-eets, the walk to these points is only a short distance for any of the residents. Jackson Franchise Satisfactory The American Public Utilities Com- pr.ny, operating the Jackson Light & Traction Company, Jackson, Miss., is reported to have wired Green & Green, its local attorneys in Jackson, that the franchise agreed upon with the city administration under which the local company in Jackson will be operated had been accepted by his principals. It is expected the City Council will now pass an ordinance submitting the pro- posed franchise to a vote and that it will be submitted to the electorate at an early date. Once in the history of the company, which is in the hands of a receiver, service was suspended. Scranton Wage Increase Accepted A voluntary increase of 4 cents an hour, dating from Sept. 1, and the offer of an additional cent an hour after Jan. 1, have been accepted by conductors and motormen of the Scranton (Pa.) Railway. Pitmen and helpers also share in this increase. In a recent award handed down by an arbitration board increases were granted car- housemen, trackmen, etc., but none was granted the conductors, motormen, pit- men and helpers. The new scale for the conductors and motormen is as follows: First three months, 45 cents; next nine months, 47 cents, and thereafter 49 cents. After Jan. 1 the scale will be 46 cents, 48 cents and 50 cents. Pitmen are ad- vanced from 50 to 54 cents an hour and their helpers are advanced from 47 to 51 cents an hour. Company Accepts Franchise Minneapolis Service-at-Ccst Grant Will Go Before Voters at the Elec- tion on Dec. 9 The Minneapolis (Minn.) Street Rail- way, included in the system of the Twin City Rapid Transit Company, has accepted the cost-at-service franchise adopted by the City Council at a previ- ous meeting. It is planned to submit the franchise to the voters on Dec. 9. The company recognized heavy obliga- tions in the proposed ordinance, but does not wish to make further delay in the negotiations, notwithstanding the agreed valuation of $24,000,000 for the property is lower than as appraised by engineers. The Mayor regards the valuation as too high and the maximum return of 7 per cent as too large. Horace Lowry, president of the rail- way, wrote to the Council as follows: The Ijoard of directors has instructed me to advise your honorable body that in adopting the resolution authorizing the acceptance of this ordinance, the company recognizes the heavy obligations it is un- dertaking but believes that with the closest co-operation between the City Coun- cil, the street railway supervisor and the officers of the company, the undertakings imposed by the ordinance can be success- fully carried out. But for the fact that a refusal to accept the ordinance might completely destroy the credit of the company and inflict irre- parable injury upon the growth and de- \eloi:iment of the city, the directors feel that their duty to the company's stock- holders and the public would make it necessary to ask for certain modifications in the ordinance. The directors believe, liowever. that such action on their part might and probably would result in iiro- longed delay, with serious depreciation in the physical value of the property, demo- ralization of service, and great loss to the 15ul3lic. In accepting, therefore, the company does so with full realization of the fact that the ordinance provides all the benefits of municipal ownership without the city as- suming any of the obligations incident to financing and oiierating the pjroperty. or ljurdening itself with the heavy investment incident thereto, and tlie city still pre- serves the opportunity to undertake abso- lute municipal ownership whenever it sees fit. The only advantage which the company gains is the o]jportunity to re-establish its credit and preserve the present investment, and the right to operate the property at a stipulated minimum rate of return, pro- •yided the operation of the property can lie made to earn that return. The agreed value of the present invest- ment as fixed by the ordinance is lower than that found by any of the engineering experts who have aiipraised it. much be- low the value the company itself places on the property and fully one-third less than it would cost to reproduce the property at the present time. However, we believe this ordinance pro- vides the l>asis which makes possible the service and development of the property necessary to meet the city's requirements ; and the best efforts of this company will be devoted to financing the large develop- ment program ijrovided for and to carry- ing out the terms of the ordinance in let- ter and spirit and in every way promoting the welfare of the city. The principal terms of the new grant were reviewed in the Electric Railway Journal for Sept. 13, page 536. September 20, 1919 Electric Railway Journal 591 Former Commissioner Testifies Mr. Eastman Paints a Dark Picture and Points Out Evils Which Have Followed Neglect of Depreciation J. B. Eastman, of the Interstate Com- merce Commission, recently addressed tlie electric railway investigating com- mission at Boston, Mass., upon the eco- nomic problems of the electric railway, and has furnished Chairman Washburn with a written statement of his views. Mr. Eastman holds that high fares are tending to cause congestion of popula- tion in urban centers, limiting the use- fulness of electric railway systems, but does not see public ownership as a panacea. Notwithstanding high fares, credit is unsatisfactory and the uncer- tainty of future automobile competition and of labor conditions tends to impair borrowing power. Much Uncertainty The special street railway commission which reported in Massachusetts in 1918 apparently believed that the an- swer to the problem was a means of raising fares more rapidly and with less agitation, and the general service- at-cost bill was the result. No com- pany, however, has availed itself of this measure, which appears of doubtful value at present. The only courses in sight appear to be the alternatives of either permitting present conditions to continue, with reasonable certainty in most cases of high fares and poor serv- ice, or to resort to some form of public ownership. Mr. Eastman believes that no matter how low a price should be paid for the properties in the event of public own- ership, it is a question whether any of them can be operated under the old 5-cent fare at the present level of wages and prices without a substantial deficit. A 10-cent fare is not inconsistent with the prices now being paid for most com- modities in common use. Any such de- ficit under public operation could only be made good through taxation. Mr. Eastman hesitated to advise pub- lic ownership, stating that it would bring the State into what is at present probably the most difficult of all fields of public utility operation, trying the public ownership experiment under most unfavorable conditions. Public acquisition should not be undertaken, Mr. Eastman said, unless approved by a referendum vote. He does not fear that public operation cannot be made efficient. The more serious question is how far the cost of service should be covered by taxation. Auto a Factor While it is impossible to be sure of the future effect of the automobile upon railway lines, it will probably be a long time before any other means of trans- portation is able to take the place of surface railways in the thickly-settled districts, and this is even more certain of rapid transit elevated and subway lines. Should public ownership come, Mr. Eastman favors a state director- general of street railways, aided by advisory committees representing busi- ness and labor, with decentralized ad- ministration giving local managers a large degree of discretion in operation. Supervision by the Public Service Com- mission over capitalization, accounts, safety of operation and service, should be retained. Possibly the commission itself might be placed in charge of the administration of the properties. Ac- counts should be so kept that the re- sults of operation in various districts would be separately determined. With respect to fares, it would probably be desirable to set a definite limit to the amount to be contributed through tax- ation and adjust the fares accordingly, making it clear to the public that a rea- sonably low level could only be assured by increasing the use of the facilities Two regulatory laws recently passed have added Tennessee and Michigan to the States which have made compre- hensive provisions for supervising their public utilities. Regulation is not a new thing in either Tennessee or Michigan, for each State has had a steam railroad commission. Under the new law, however, the functions of this commission in each case have been so increased as to permit the regulation of utilities in general. Rate-Making Clauses Reviewed The new Tennessee Railroad and Public Utilities Commission and the new Michigan Public Utilities Com- mission have the usual powers of mak- ing appraisals, regulating rates, fixing service standards, authorizing security issues and the like, and details will not be given here. In regard to ex- tensions, depreciation and rate-making, however, it seems worth while to show exactly how Tennessee and Michigan plan to handle such matters, which now are of more than usual importance. The clauses relative to such items in the Tennessee law follow: The commission sliall have power to re- quire a utility to establish, construct, main- tain and operate any reasonable extension of its existing- facilities where in the judgment of said commission such exten- sion is reasonable and practicable and will furnish sufficient business to justify the construction, operation and maintenance of the same, and when the financial condi- tion of the public utility affected reason- aljly warrants the original expenditure re- quired in making such extension, or to abandon any service when in the judg- ment of the commission the public welfare no longer requires the same. The commission shall have power to re- quire a utility to carry for the protection of stockholders, bondholders or securities a projier and adequate depreciation ac- count in accordance with such rules, regu- lations and forms of account as the com- mission may prescribe. The commission shall have power to determine, and by with consequent growth of traffic, and by co-operation in reducing expenses. Depreciation Neglected In discussing the Boston Elevated Railway, Mr. Eastman says: Public operation already exists here and the situation is complicated by the con- tract with the private owners of the prop- erty which was made last year. Direct public ownership would improve credit and make possible a greater flexibility in the adjustment of fares, and might decrease the capital charge if the owners were will- ing to sell at something like the present market value of their securities. If the present arrangement is contijiued. new capital can be obtained from public acquisition of the Cambridge subway, but I am not prepared to suggest any other way in which it can be secured so "long as the stock of the company is selling below liar. Your commission should, I think, investi- gate carefully the appropriations for de- preciation and maintenance, and I have no doubt that the trustees will be glad to aid you in such an investigation. It should not be assumed too hastily that the pres- ent charges are excessive, for one of the causes of our troubles with electric rail- ways has been the failure in the past to appreciate the necessity of caring for de- preciation. There is no way in which a company can keep its property in first- class modern condition except by building up an adequate depreciation fund. order in writing after hearing, fix proper and adequate rates of depreciation of the prorierty of each public utility, and each public utility shall conform its deprecia- tion accounts to the rates so fixed, and shall set aside ihe moneys so provide Francisco, and Herbert Fleishhacker, president of the Anglo & London-Paris National Bank, San Francisco. John S. Drum, president of the Sav- ings Bank & Trust Company, on behalf of the committee, is quoted in part as follows: The svstem has been virtually managed by the trustees of F. M. Smith since May 5, 1913. For a year or two prior to that time the company could borrow money and it has run along- since 1913 without new capi- tal. Such earnings as were made, over and above interest reauirements, were devoted, and solely devoted, to absolutely necessary- repairs. In 191.5 an effort was made to work out a plan of reorganization and a committee was then appointed, which, after numerous sessions found it impossible to for-mulate such a plan as would be accepta- ble to the bondholders. It would then have amounted only to an exchange of old se- curities for new, which it would be impossi- ble to market. Clean House Financially^ Says Commission In November of 1916 an enabling act was passed by the Legislature for proposed re- settlement of the franchise question and the various bay cities, through their Mayors and Councils, appointed representative com- mittees to work out details for new fran- chises. Finally a plan was agreed upon and the Railroad Commission was asked to value the propei'ties. That valuation pro- ceeding is now pending. Meanwhile the Railroad Commission ren- dered two decisions. The first of Sept. 19, 1918, increased fares on the east side of the bay to 6 cents and the second of Aug. 11, 1919, increased ferry fares to 15 cents. In rendering the latter decision the commission said : "It has been repeatedly pointed out by this commission that the only permanent rernedy for the financial difficulties of this company i.s a thorough-going i-eorganization of its finances. As long as the Key system rests on the present unsound financial structure, it is bound to continue in financial difficul- ties in the future, as it has in the past. The rate increases will not affect a com- plete or permanent remedy of this situation. "It is our opinion, as repeatedly ex- pressed, that a financial reorganization of the company is necessary and that no per- manent, satisfactory operating and financial result can be obtained until such a reor- ganization has been made." These two increases gave an additional amount of between $700,000 and $800,000 to the system, but the cost of operating, in- cluding that of labor and supplies, fully absorbed this amount. Since December, 1917, or less than two years ago, the cost of labor alone on this system has increased over $500,000. There are now about 2000 employees, about 1200 of whom are plat- form men. Now acting under the imperative direc- tions of the Railroad Commission, it has been felt that, as a community problem, the effort should be made to propose a plan of reorganization. This is to be done even befoi-e resettlement of the franchises will be considered by the people. Even to-day it is a serious question whether moneys can be obtained through the sale of new securities to enable the company to keep pace with the growth and development of these communities and fur- nish adequate service. Tills is something more than a reorgani- zation committee. It is of so thoroughly representative a character that it will be able from time to time to give authoritative statements as to the true condition of the company. Before the problem is finally solved the question of municipal ownership will come to the front. This matter has been seriously argued before a commission sitting at Washington. The present status means bankruptcy of all traction companies, the strong as well as the weak. There has seemed but one of two things open. First, private ownei'- ship with wilUngness of the community from time to time to pay increased fares, adoption of the zone system or a limit on transfers, or all three methods ; second, municipal ownership with a fixed 5-cent fare and deficits on operation made up in tax rates. This implies that all would pay foi' the upkeep of the transportation sys- tems as a common benefit of such magni- tude as to make it worth while to do it. Higher Operating Expenses in Milan, Italy The last annual report of the munic- ipal tramways of Milan, Italy, shows greatly increased expenses due to the higher expense for labor. The lines within the city were taken over by the municipality some years ago from the local Edison Illuminating Company, which still operates the suburban and intarurban system. Early 'in 1919 the wages paid for platform labor were raised from 4 liri to 6.40 liri a day and of shopmen 5.85 to 9.35 liri. In the middle of May, another advance had to be made, that granted being platform labor, 7.20 to 10.90 liri a day, and shop men from 8.75 to 13.10 liri a day, the higher figures in each case being paid after seventeen years of service. The Corrierre della Sera estimates that the salaries and wages for the 5100 employees entail a yearly expense of about 34,000,000 liri, while the total income is about 40,000,000 liri. The pertinent question is then asked whether all other expenses, such as maintenance, repairs, construction, ma- terials, and electric power can be paid out of the balance of 6,000,000 liri. Glasgow No Exception Expenses of Model Municipal System More Than Outstrip Increase In Gross Revenue The Glasgow (Scotland) Corporation Tramways did not do so well for the year ended May 31, 1919, as for the previous year. The surplus to the com- mon good was only £14,772 as com- pared with £160,984 for 1918. While the total revenue from traffic and other sources increased more than £120,000 traffic and other general expenses in- creased more than £200,000. There waa also an increase of about £80,000 in de- ductions. Wage increases are reflected in the figures. There were also ex- traordinary allowances for upkeep. INCOME ACCOUNT OF GLASGOW CORPORA- TION TRAMWAY FOR YEARS ENDED MAY 31, 1919 and 1918 1919 1918 Traffic receipts £1,527,487 £1,404,110 Sundry receipts 3,832 8,525 Totalrevenue £1,531,319 £1,412,635 Trafficexpenses £674,167 £527,152 Genera! expenses 175,004 156,949 Maintenance and repairs 219,509 179,812 Power expenses 106,685 86,029 Clydebank bridges 1,752 1,131 £1,177,117 £951,063 European war 72,869 93,120 Total expenditure £1,249,986 £1,044,183 Balance carried to net revenue account £281,331 £368,452 Interest on investments 10,564 8,579 Total £291,895 £377,031 Deductions 277,123 199,479 Surplus to common good £14,772 £160,984 During the year the sum of £91,913 was expended on the upkeep of the track in ordinary repairs. In addition to this sum £137,394 was set aside out of the year's revenue to meet the cost of the renewal of track. This sum is calculated at the rate of £700 per mile of single track. There was also deducted from the permanent way re- newals fund the sum of £31,829, being the amount expended on renewal of track during the year. The average traffic revenue per car- mile increased from 12.832d. to 14.33d. This is very high indeed, considering that more than 62 per cent of the pas- sengers pay only a Id. fare. The al- lowance paid to dependents of em- ployees serving with the military and naval forces amounted to £72,704 for the year. The tramway employs 5027 male employees and 1628 females. During the year all sections of the staff re- ceived increases in wages. On May 16, 1918, unskilled and semi-skilled male employees received an advance of 5s. per week. On Nov. 3, 1918, a further advance of 3s. 6d. per week was awarded to able-bodied employees of these classes. On June 25, 1918, an advance of 6s. per week was granted to the women car cleaners. A further advance of 5s. per week was granted on July 9, 1918, to motoresses, conduct- resses, women car cleaners, and on Jan. 29, 1919, a further advance of 5s. 6d. per week was granted, thus giving 596 Electric Railway Journal Vol. 54, No. 12 the motoresses and conductresses 25s. 6d. per week over pre-war rates and the women car cleaners 19s. 6d. per week over pre-war rates. There were other advances, but these are men- tioned as indicative on the general trend of the wages on the system. Attention has been called previously to the contribution of £14,772 to the common good. In addition to this the tramway paid £88,306 in taxes, etc. A statement of the number of pas- sengers carried during the year at each fare, and the revenue from each fare, with the percentage in each case follows: Passengf rs Carried Traffic Receipt A , ^ Fare Number Per cent. Amount Per cent. id. 2'*0, 080.376 62,48 £604,334 39 . 56 Id 121,285,355 26 12 505,355 33.08 IJd 31,750,977 6 84 198,443 12 99 2d. 10,348,905 2 23 86,240 5.65 2;d 4,846,252 1 05 50,481 3.31 3d and more 5,934,812 1 , 28 82,261 5.39 Sundrif s 370 0.02 Total 464,246,677 100 00 £1,527,487 100 00 Brazilian Company Reports For the year ended Dec. 31, 1918, the Brazilian Traction, Light & Power Company, Ltd., Rio de Janeiro, Brazil reports surplus after charges and pre- ferred dividends, of $4,569,672 equal to $4.29 a share earned on the $106,515,- 500 of common stock, as compared with surplus of $4,666,518 or $4.38 a share in the preceding year. The income account for the year ended Dec. 31, 1918, (in Canadian cun-ency) compares as follows: Interest received . Administration expense, terest, etc Amortization reserves Preferred divicnds . . . Common dividends. . , , Surplus $4,569,672 1918 1917 $6,122,412 $6,005,138 130,051 198,560 $6,252,463 $6,203,698 832,791 937,180 $5,419,672 $5,266,518 250,000 600,000 600,000 $4,569,672 $4,666,518 1,314,136 $4,569,672 $3,352,382 During the year, twenty-nine first- class vestibuled ten-bench trail cars, and ten single-truck motor fx'eight cars were completed and put into service. Due to delays in deliveries of equip- ment ordered for the new passenger motor and additional trail cars com- menced in 1917, construction has been necessarily slow, but the work is now well advanced on ten thirteen-bench and fifteen ten-bench passenger motor cars, and twenty-five ten-bench trailers, all of which will be ready for service during 1919. Further additions have been made to the buildings and equipment of the shops and foundry, and various articles heretofore imported can now be manu- factured there with substantial saving. The statement at the bottom of the first column gives comparative statis- tics of tramway system for the last two years. Further Abandonments Authorized Court Directs New York Railways to Discontinue Three Storage Battery Lines on East Side Federal Judge Mayer at New York on Sept. 11 authorized Job E. Hedges, receiver for the New York (N. Y.) Railways, to cease for the present the operation of four short storage battery lines running through heavily congested sections of the lower east side of New York City. All of these lines except one are owned by the New York Railways. The latter is owned by the Sixth Avenue Railroad, which is leased by the New York Railways. Besides authorizing the suspension of the lines. Judge Mayer also resolved to return the Ninth Avenue line to its owner for the reason that the New York Rail- ways, which leases it, has not been able to pay the rental and because it was lusing money. The four storage battery lines will probably cease operating within a fort- night. They had been carrying on an average of 1,000,000 passengers a month. Their total deficit, according to figures submitted by the receiver, has aggregated about $414,000 a year. It is estimated that the net saving by abandoning operation will be $300,000 a year. Judge Mayer pointed out that the struggle now was to find some way of saving the more important lines in New Y'ork City from destruction. To accom- plisli this he said it was necessary to cut off" the smaller and less important links of the system. The receiver stated that he had done all he could to keep the New York Railway system intact and that he hoped the responsibility for the cutting off of the crosstown service would rest with the municipal authorities. In announcing his decision to author- ize the suspension of the four storage battery lines, Judge Mayer referred to the order of Public Service Commis- sioner Nixon permitting a charge for transfers and continued: 1915 Miles of track Equipment : Passenger cars . . . . Passenger trailers. Freight cars Freight trailers . 140 317 57 55 27 Miles run — all cars 9,425,231 Passengers carried 51,574,145 The application to Commissioner Nixon was opposed by the municipal authorities, and what little relief has been obtained by this receivership was, I regret to say, obtained over the opposition of those the court hoped would co-operate in some way or another, reaching a solution of a very difficult problem which, as I stated the other day, is filled with intricate questions of law, of government relations, and of financial requirements. When the Mayor learned that the 1916 four storage battery lines were to be '■♦i I discontinued, he is.sued this statement: 312 The head of the Bureau of Franchises 47 and Commissioner of Public Works, Jo- 59 seph A. Guider of Brooklyn will immedi- 33 atelv work out a plan for the installation 10,153,657 of a motor bus service along the routes 55,154,564 of the lines discontinued. 6,000,000,000 Discouraged Dollars Economists have written about the stabilized dollar and the diminishing dollar. Now comes W. P. Strandborg of the Portland Railway, Light & Power Company, Portland, Ore.,, who writes about "The Discouraged Dollar" in^ Watts Watt, the publication of his company, distributed on the cars. It is easy to understand the diminishing company, distributed on the cars. It is easy to understand the diminish- ing dollar, for this shrinking personality is brought home every day in practi- cally all purchases that are made. It might also be possible to learn some- thing about the stabilized dollar if pres- ent-day economists were like the late- William James and wrote like novelists, but they do not. As for the discouraged dollar, Mr. Strandborg has made it quite plain, what he is driving at. In fact, he sees 6,000,000,000 discouraged dollars in the electric railway field. In Watts Watt for Sept. 5 Mr. Strandborg says in part: I.ook. for instance, at Henry Ford's dol- lars. The one dollar that Ford put into' his business a few years ago is now worth $125 and making enormous wages (prof- its) every day. Look at the Rockefeller dollars in Stand- ard Oil — the Schwab dollars in Bethlehem- Steel, the Carnegie dollars in U. S. Steel. Take the busy little dollars in the au- tomobile industry, the textile industry, the packing industry, the leather, the coffee, the copper — and a thousand other indus- tries— all fat, smiling and prosperous, withi not a care in the world ! Then take the other side of the picture. Behold, the street railway dollar ! Of all the sad, dejected, mangy, discon- solate, unhappy, discouraged, melancholy and anaemic pieces of loose change — this little vagabond coin is the prize boob of the mint. Victim of a motley scourge of ills, sticking to its precarious job. under- fed and overworked, banged and buffeted' by rolling tides of misfortune, harassed from truck to keel, discredited, maltreated, scorned by its neighbors, its threadbare ex- istence excites only pity among its fellows. The poor devil is in such straits that it is in the hands of government specialists- down in Washington, and from the reports it is difficult to determine whether the con- sultation of physicians is going to develop into a diagnosis, a clinic, an autopsy or a post mortem. And the street railway in- dustry, itself, doesn't quite know whether it is to hope for a resurrection or prepare for a funeral. It's a standoff, a fifty-flfty bet, and it takes a swad of optimism to put it that strong. There must be a reason for all this, for, once upon a time, the street railway dollar was happy, like the rest and made a com- fortable living, but that was long ago and since then evil days have come upon it. Why is it? Why are there no more dol- lars going to work in the street railway industry? Why is capital so vital for the m.aintenance and development of railway service absolutely shunning this formerly inviting field and turning to other and more attractive channels for investment? The answer is merely that the dollar already in the business has become dis- couraged and the dollar that might have cast its fortunes with it is afraid to take a, chance. The street railway dollar is not allowed either a living wage or decent working con- ditions. It has an army of bosses, crack- ing the whip and issuing orders. The general public, if not openly hostile, is con- spicuously indifferent ; the federal govern- ment, until a few weeks ago, had been ham-stringing it with war imposts and ig- noring it as an economic factor ; state au- thorities have as a rule been mterested mainly in circumscribing its natural func- tions and loading it with legal restrictions : county and municipal regulative and leg- islative bodies have been more concerned in curbing and leashing it than in giving it freedom of action. These, friends, are some of the reasons the street railway dollar Is "discouraged. And. there are very close to 6,000,000- 000 of these dollars in the United States to-day in that same plight. September 20, 1919 Electric Railway Journal 597 Financial News Notes New P. R. T. Director. — Jeremiah J. Sullivan, Jr., has been elected a di- rector of the Philadelphia (Pa.) Rapid Transit Company, vice John S. Phipps, New York, resigned. City Invests in Traction Bonds. — The city of Charlottesville, Va., has pur- chased for its sinking fund $5,000 of bonds of the local company, the Char- lottesville & Albermarle Railway. Interest Payment Deferred. — The Aurora, Elgin & Chicago Railroad, Wheaton, 111., has notified the Citizens' Trust & Savings Bank, Aurora, 111., trustees for holders of the collateral trust notes, the company is unable to make the interest payment which was ■due on Sept. 1. Guarantee of Equipment Notes Au- thorized.— The Georgia Railway & Power Company, Atlanta, Ga., has been authorized by the Georgia Railroad Commission to guarantee the payment of equipment notes to the amount of $132,231, this sum covering the pur- chase of fifteen new cars, of the center side-door type, with a seating capacity of fifty-one passengers. Abilene Road Sold. — The property of the Abilene (Tex.) Street Railway lias been sold at public auction by W. G. Swenson, receiver, to Henry James and George L. Paxton, both of Abilene, for $5,500. The property includes approximately 5 miles of single track, several one-man cars, carhouses, etc. It is understood to be the plan of the new owners to put the line in repair and resume operation. Since the cars ceased operation several months ago, transportation has been by jitney and omnibus service. Dismantlement Under Way. — The work of removing the remaining ties, rails, poles, and other property of the Alton & Jacksonville Railway, between Alton and Jacksonville, 111., was start- ed at Alton, on Sept. 11. The road be- longs to the estate of the late John J. Cummings, Chicago, who secured pos- session after receivership proceedings. During the war he received permission of the Public Utilities Commission of Illinois to dismantle the line and large quantities of the rails and other mate- rial were shipped to France for use in the construction of military railway lines by the American Expeditionary Forces. Offering of Notes.— Halsey, Stuart & Company, New York, N. Y., are offer- ing at 98.70 and interest to yield 7i per cent, $96,000 three-year 7 per cent collateral gold notes of the Ashland Light, Power & Street Railway Com- pany, Ashland, Wis. The notes are dated Aug. 1, 1919, and are due on Aug. 1, 1922. The purpose of the issue is tc reimburse the company for expendi- tures made for permanent additions and betterment. In addition to the note the company has outstanding $200,000 of capital stock and $720,000 of first mortgage 5 per cent bonds due on Jan. 1, 1939. Dallas Doing Better. — Earnings of the Dallas (Tex.) Railway for August showed an increase over former months, operating fewer cars at great- er speed and covering less mileage than in July of this year, according to the monthly report of Lynn B. Milam, su- pervisor of public utilities. Mr. Milam explained that while mileage has been reduced and speed increased, more people are evidently being reached than before through the consolidation and extension of the railway lines. Still further economic gains along these lines are expected when the new re- routing schedules go into effect. Interest Payment Postponed. — Semi- annual interest on the $2,500,000 of bonds of the Washington, Alexandria & Mount Vernon Railway, due on Sept. 1, has not been paid. These bonds are the obligations of the Washington-Vir- ginia Railway, Washington, D. 0., which absorbed the Washington, Alex- andria & Mount Vernon, and the Wash- ington, Arlington & Falls Church lines. The previouf; installment of interest, which was due on March 1, was not paid until early in July, the company taking advantage of a clause in the mortgage, which provides that there shall be no legal default until four months after the due date. Berkshire Receiver Discharged. — Judge Hammond of the Superior Court on Sept. 9 in the case of the Berkshire Street Railway, Pittsfield, Mass., against the New York, New Haven & Hartford Railroad decided that the services of C. 0. Richmond as a re- ceiver were no longer required. The judge decreed: "That C. 0. Richmond be not authorized to continue further to act as receiver of the property of the plaintiff corporation and that upon the filing and allowance of his account he be discharged as such temporary receiver without prejudice to the right tc apply hereafter for the appointment of receiver of the property of the plain- tiff corporation." Plan to Forego Interest Approved. — The plan has been approved which was proposed in May, 1919, by the Augusta- Aiken Railway & Electric Company, Augusta, Ga., to the holders of the first mortgage 5 per cent sinking fund bonds due 1939 of deferring the interest on the issue for three years by turning the coupons into a five-year interest bearing note at 5 per cent and agree- ing until such notes mature on June 1, 1924, to waive the operation of the sinking fund. This proposal was made in order to secure necessary funds for construction, replacements and floating debts. Provision is made in the deposit agreement that until the 5 per cent coupon gold notes have been paid off no dividends shall be declared by the company on either class of stock. Swansea - Seekonk Line Gives up Ghost. — The Swansea & Seekonk Street Railway, forming part of a route be- tween Providence, R. I., and Fall River, Mass., is to be sold to the highest bid- der, according to a decision reached at a stockholders' meeting on Sept. 16, in Swansea, Mass. The assets will be dis- tributed and the corporation dissolved at once. A strike of employees obliged the management to cease operation sev- eral weeks ago, and the directors found it impossible to resume service. The line was unusually torturous in its lo- cation and found great difficulty in com- peting with the electrified Providence- Fall River service of the New York, New Haven & Hartford Railroad. It was rescued from the junk dealers some months ago, local capital becoming in- terested in the effort to save the prop- erty. Electric Railway Monthly Earningrs CITIES SERVICE COMPANY Period Im., July, '18 Im., July, '19 12m., July, '18 12m.. July, '19 Operating Revenue $1,789,252 1,583,722 21,331,886 21,361.104 Operating Operating Expenses Income $34,959 $1,754,293 56.957 1,526,765 399,579 20,932,306 690,169 20,670,935 Fixed Net Charges Income $7,062 $l,74'',''30 176,828 1,349,937 20,648 20,911,658 1,369,205 19,301,730 COLUMBUS, (GA.) ELECTRIC COMPANY, COLUMBUS, GA, Im., June, ' 1 9 Im., June, ' 18 1 2m., June, ' 1 9 1 2m., June, ' 1 8 $104,852 95.152 1,199,899 1,178,395 $i'59,465 *38,130 *649,655 *465,666 $45,387 57,022 550,244 712,729 $30,312 $15,075 28,084 28,938 356,075 194,169 325,230 387,499 EASTERN TEXAS ELECTRIC COMPANY, BEAUMONT, TEX. lm.,June,'19 $110,619 $*70.662 $39,957 lm.,June,'18 102,080 *51,988 50,092 I2m.,,Iune, '19 1,244,434 *766,947 477,487 Urn., June, '18 1,018,128 *562,237 455,890 '''Inclu'^''s taxes, Jlncludes non-operating income. $13,325 $32,846 11,651 38,440 156,170 329,590 135,602 341, 39j EL PASO (TEX.) ELECTRIC AND SUBSIDIARY COMPANIES Operating Operatmg Operating Fixed Net Period Revenue Expenses Income Charges Income Im., .lune, '19 $123,869 $94,120 $29,749 $7,843 $21,951 Im., June, '18 96,236 69,198 27,038 6,667 20,446 12m., June, '19 1,37,8258 987,207 391,051 85,057 305,072 12m., June, '18 1,272,064 832,669 439,395 74,765 364,273 GALVESTON-HOUSTON ELECTRIC COMPANY Im., June, ;i9 $255,777 $*I86,057 $69,720 $35,649 Im., .lune, '18 230;r52 *I47.895 82,857 12m., June, '19 2,924,018 *2,I2I,528 802,490 12m., June, '18 2,385,354 *l, 555,941 829,413 $34,071 29,258 53,599 378,815 423,675 342,883 486,530 NORTHERN TEXAS ELECTRIC COMPANY, FORT WORTH, TEX. Im., June, ' 1 9 Im., June, '18 12m., June, '19 12m., June, '18 $282,414 $*I83,470 259,162 *I65,336 2,927,397 *l, 943,771 3,078,818 *l, 747,266 $98,944 93,826 983,626 1,331,552 $25,041 $t83,486 25,212 t78,197 300,506 1798,120 307,987 tl, 109,815 598 Electric Railway Journal Vol. 54, No. 12 Register Decision in Boston Hand Register Not to Be Used on Open Cars With Running Board After Jan. 1 The board of arbitration in the con- troversy between the Eastern Massa- chusetts Street Railway, Boston, Mass., and its employees concerning- the use of the Rooke register in fare collection handed down its decision on Sept. 8, 1919. As explained in the Electric Railway Journal for Sept. 13, page 545, the board decided that the register shall not be used on open cars of the running board type after Jan. 1, 1920, but that it may continue to be used on all other types of cars at the discretion of the company. Not an Unreasonable Regulation The members of this board were Samuel H. Pillsbury, Boston, represent- ing the railway; James H. Vahey, Bos- ton, representing the employees, and James L. Doherty, Springfield, as the third arbitrator. Hearings were held at the State House, Boston, in August, as a result of the agreement to arbi- trate on whether the register was reas- onable, accurate, safe and proper. A previous reference to this case ap- peared in the Electric Railway Jour- nal of Aug. 23, 1919, page 413. The board assumed that the terms "reasonable" and "proper" are practi- cally synonymous and were to be inter- preted in the light of the circumstances in the case. In dealing with its ac- curacy, the arbitrators held that as a mechanical device the register was not always accurate but subject to fluctua- tions in registration generally due to effects of wear and usage. As far as the personal safety of the conductor was concerned, the board agreed that on inclosed cars little, if any, more hazard was involved either to the conductor or the passengers than from the use of the overhead registers, but on cross-bench open cars with side running boards, an element of more seriousness was introduced, even though rules were in operation to pre- vent passengers riding on running boards of such cars. Barred on Open Cars Comment from passengers of the railway company directed to the conduc- tors intimating their dishonesty, while irritating and unfortunate, was held not to be a controlling factor in the right of the management to establish reason- able policies and that the use of the Rooke register, under all the circum- stances, was not an unreasonable or ifnproper exercise of the judgment and discretion lodged in the manage- ment, and no change was recommend- ed, except in one particular, namely: the use of the register on cross-bench open cars shall be discontinued on and after Jan. 1, 1920. S. H. Pillsbury, the company's rep- resentative on the board, concurred in the finding against the use of the Rooke register on the open cars now operated upon the Eastern Massachu- setts Street Railway, feeling it would not seriously affect its business. On the general principle, however, he did not concur as he was unwilling to prejudice the position of parties not directly af- fected by this proceeding, stating "that such finding does not appear to me to be supported by satisfactory evidence that the use of this register on open cars has resulted in accidents to em- ployees or others." A Bid for Popular Favor Increased business through improved service has been adopted by the Chica- go, North Shore & Milwaukee Railroad as a means of meeting a large wage advance recently granted to the em- ployees. This wage increase amounts to $300,000 a year, and the company hopes to meet it without increasing rates to the public. Strict economy and improved efficiency are the watchwords. Courtesy toward patrons and real serv- ice to the public are demanded of all trainmen and station agents. Orders have been placed by the com- pany for thirty new passenger coaches. Delivery on the new equipment is ex- pected to begin late in the fall. New tracks have been built between Mil- waukee and Carrollville, Wis., and the roadbed improved in a number of places. Everything possible is being done in the way of making a bid for popular favor. Direct through opera- tion of North Shore trains into the Loop district in Chicago, which began a month ago, is expected to increase passenger traffic. "We Want You to Feel at Home" W. p. Strandborg, of the Portland Railway, Light & Power Company, Portland, Ore., writing in a recent issue of the company's paper, Watts Watt, includes the following among some desultory thoughts: When you go into a store, an office or any other place of business you don't scatter refuse all around the place — you don't sit down in a chair and scatter pea- nut shells all over the room, and you certainly don't spit tobacco juice on the rug or carpet. Why then do it in a street car? One street car company in the East got out some cards a while ago which read like this : "If Y'ou Spit on the Floor at Home, Do It Here. We AVant Y'ou to Feel at Home." That, of course, was sarcasm, but it went right to the point. Buffalo Wants Ten Cents Says There Is No Use Temporizing if Company Is to Be Saved from Financial Disaster The International Railway, Buffalo, N. Y., in a supplemental brief filed with the Public Service Commission for the Second District, on Sept. 9, by its attorneys, Kenney, Killeen & Nye, says it should have a 10-cent fare in Buffalo until its deficit is wiped out. It con- tinues : On a 6-cent fare this comjjaiiy will con- tinue to starve, unable to pay its bond interest, unable to repave streets and re- construct tracks, unable to wipe out its deljts for taxes, back wages and accu- mulated bond interest, unable to render ef- ficient public service. On a 7-cent fare the company will be able to pay operating expenses, including current maintenance, to provide for or- dinary renewals and replacements, and proliably will be able to pay some part of its liond interest, but it will not be able to wipe out its accumulated deficit and will not be able to pay real wages, to the dollars which are Invested in its public sei*\-ice. An 8-cent fare will provide for the ne- cessities of the company, except that it will not enable the wiping out of the def- icit within a reasonable time. The railway says a rate should be fixed which will restore the company to a condition of financial health so that it may function as an efficient agency of transportation. This can only be done, it asserts, after the credit of the company has been restored by the allowance of a rate of fare which will enable it to take care of its obli- gations, and to pay some return or wages to the money invested in the public service. Would Avoid Experiments The company argues against ex- perimenting with a lower rate of fare than the facts justify, claiming that an experiment, founded on the possi- bility that increased traffic may pull the company through is neither wise in itself nor judicious, considering the public interest. Such a course, it says, leaves the company without credit, un- able to keep up maintenance, replace- ments and renewals, with its tracks, cars and buildings steadily deteriorat- ing in operating efficiency and its ca- pacity to render its public service daily diminishing. Increase 1910 1919 Per Cent Employees 2,641 3,160 19.65 Yearly payroll. . . $2,012,371 $4,365,990 1 1.96 .Average pav per emplovee." $761.97 $1,381.64 81.32 Gross earnings. . . $5,984,187 $9,025,000 50 .81 The railway says from 1910 to 1919 its payroll increased by about 117 per cent whereas gross earnings have in- creased only 50.8 per cent. Proof shows that the average price of material has increased since 1914 by approximately 120 per cent. The only way largely to increase the gross earnings at this time, according to the company, is largely to increase the rate of fare which the companies are permitted to charge. The company presented the accompanying figures in support of its plea for still higher rates. September 20, 1919 Electric Railway Journal 599 Zone System in Effect in Jersey Delay in Unloading Due to Passengers and Conductors Not Knowing Fare — Violence on Southern Division The new zone system of fares on the Public Service Railway of New Jersey calling for 3 cents for the first zone and 2 cents for each additional zone or fraction, became effective last Sunday morning, Sept. 14, coincident with the pulling out of the first car at each of the twenty-eight operating car houses. The system of fare collection, briefly outlined, provides that all passengers board the cars by the front door and receive from the motorman a zone check illustrated in the Electric Railway Journal of Sept. 6, page 485. On leav- ing the car, passengers pay their fare to the conductor, who on some 650 cars ring the fare up on a National cash register, yi^hile on other cars the cash is deposited in the fare box and the number of fares so paid is rung up on an overhead register. The company took every precaution possible to make sure that the plan would operate smoothly. After the first day's operation, John L. O'Toole, assist- ant to the president, stated: The rpcord for the first day was beyond our fondest expectations. We had ex- pected peo]ile would take to the zone sys- tem, but even our best hopes were sur- passed. The co-o'jeration of the car crews, too, was everything that could be looked for. The system will work better and better as it becomes familiar. First Real Test The first real test of the system came on Sunday night at the Velodrome bi- cycle races. The zone in which the Velodrome is located commences only some few hundred yards from the en- trance and many people wanted to get ofl' in order to save the extra 2 cents. Even though the jitneys operating to the race track were crowded, and many persons walked to the race track, the cars were delayed. Some of the cars took from ten to fifteen minutes to make the few hundred yards from the commencement of the zone to the race track. The delay was caused by the pay-leave system, the inability of the conductor to make change fast enough and lack of co-operation on the part of the traveling public. The Public Serv- ice had anticipated this delay to some extent and had provided ticket-sellers to board and go through the cars on ap- proaching the race track, selling passen- gers full-fare tickets in the hope of eliminating delay. There were several instances on the longer routes where passengers unac- quainted with the system protested against the fares, but after arguing with the conductor, accepted his ver- dict. The policemen detailed to im- portant traffic centers had their hands full on account of the added street con- gestions caused by automobile traffic be- ing held up by the cars that were un- loading passengers. On Monday, in anticipation of the real test, especially during the morning rush, the company had ticket-sellers board all cars going to the Hudson & Manhattan tube station and the Ho- boken-Fourteenth Street Ferry. This relieved to a large extent the delay at these points, but at centers where there were no ticket-sellers the delays in un- loading somewhat disrupted car sched- ules— the cars became bunched, and as a result the company lost many riders who got tired of waiting for the cars and took the jitneys, which reported bigger business than ever. Shipworkers Cause Trouble The first real trouble in operation was at the shipyards in Camden and Gloucester when the workers, on Mon- day and Tuesday, in protest at the fares and means of collection tore down car doors and side wire screens, broke the windows and bolted the cars prior to reaching the post-payment areas at the shipyards, while in other cases pas- sengers pulled the trolley off the wire thereby stalling the car and then when the conductor was busy restoring the trolley would bolt the car by the door or climb through the windows. In other parts of the southern divi- sion the car crews reported that citi- zens had piled obstructions upon the tracks with the view of wrecking the The right to collect an 8-cent cash fare, with a minimum ticket charge of 7 cents, has been granted the United Railways, St. Louis, Mo., by the Pub- lic Service Commission of Missouri. The new rates will become effective on Sept. 20. The company had asked the commission for a 10-cent cash fare for adults, a 5-cent cash fare for children, a 7. 5-cent token fare for adults, and a 3-cent token fare for children, the es- tablishment of the same rates on coun- ty lines, with the Meramec Highlands line divided into two 10-cent fare zones, a cash fare of 40 cents and a ticket fare 35 cents on the St. Charles line, and the abolition of the double trans- fer system. The Public Service Commission granted the company an 8-cent cash fare for adults, a 4-cent cash fare for children, a 7 5-cent token fare for adults when tokens are bought in lots of less than fifty, and 7 cents when tokens are bought in lots of fifty or more, four children's tickets for 15 cents and 100 for $3.50, the establish- ment of the same rates in the county as in the city, and an increase in the fare to St. Charles to 34 cents. The present transfer system will be continued. The commission finds that the in- creased wages recently granted to the employees of the United Railways cars and that their own lives as well as those of their passengers were in continual danger. Tuesday afternoon matters became so serious that the men began to refuse to operate the cars, so that in the early evening very few cars were in operation and it was necessary for the shipyard workers to walk or ride in jitneys to reach their homes. Condition Improving From Day to Day Outside of the trouble in the south- ern division each day's operation brought out two points for successful operation, namely, that nothing but or- dinary intelligence was needed by both the car riders and the trainmen and that passengers who purposely hinder the workings of the system serve only to increase delays to other passengers. It is felt that with the use of more ticket sellers on the cars, the establish- ment of ticket agencies in the principal stores for the sale of full fare tickets and the gradual adjustment of car rid- ers and trainmen to the zone-checks, the delays incident to the new system will disappear within a few days. As one editorial put it "In ten days the novelty of the plan will be gone and in thirty it will be an old story, if the car patrons give it a fair trial." A fair trial is needed to learn the de- fects, if any, in the system so that im- provements can be made where needed. In the next week's issue will appear a story in detail covering the manner of fare collection. amounts to $2,860,336 per annum, the back pay to $666,306 and the increased power costs to $128,820 per annum, and that the increased fares granted will about pay these increased costs and a return of 6 per cent on a valuation of $50,000,000 for the entire property, in- cluding the city, county and St. Charles lines. An Emergency Measure The appraisal of the property and audit of the books of the company now in progress by engineers and ac- countants of the commission will be finished within six months and the in- creased fares are put in effect as emer- gency rates for a temporary period of six months from Sept. 20, 1919, to en- able the company to meet its increased costs until the coinmission can definite- ly fix a valuation of the property and a schedule of rates accordingly. It is ruled by the commission that the properties of the United Railways must be treated as a whole for the pur- pose of rate-making. The commission says it is to the best interests of the city of St. Louis, including the car riders, that the county lines be oper- ated, since they serve the city as ef- fectively as though they were within the corporate limits. On the tentative valuation of $50,000,000 placed by tli» Eight Cents Cash in St. Louis This With Tickets at Seven Cents Is Estimated to Return 6 Per Cent on $50,000,000 Valuation 600 ELECTRIC Railway Journal Vol. 54, No. 12 commission on the entire property, the division is in these items: United Rail- ways city lines, $44,000,000; county lines, $5,245,735; St. Charles line, $745,265. The conclusions reached by the com- mission ai-e' that the present rates of the United Railways on its lines within and without the city limits of St. Louis are insufficient to yield reason- able compensation for the services ren- dered and are unjust and unreasonable ior the company. Assuming- that the fare passengers for the ensuing six months will, approximate the traffic handled from Jan. 1 to June 20, 1919, the commission estimates the passen- ger revenue under the new rates will be $9,199,258. There is no change in the transfer system. In testimony before the com- mission, Colonel Perkins for the com- pany asserted that the double transfer privilege was being abused and that people were enabled to make round trips by the payment of a single fare and the use of the double transfer. The commission stated that it found no substantiation for this. Ticket Rate The finding provides that the com- pany shall provide and place on sale in its cars and other locations conven- ient to the public tickets or metal disks at the rates auhorized. In the conclud- ing paragraph of the opinion, Receiver Wells is warned that strict economy must be practiced. It suggests that the receiver can increase his income from operation by practicing .certain economies in operation, such as adjust- ing schedules more closely for the de- mands of transportation; short-looping the cars, and operation of the one-man safety car. The company's decision on whether or not the award would be ac- cepted and the terms obeyed, accoi'ding to the opinion, had to be handed the commission before Sept. 15. Neither the company nor the city is satisfied with the ruling of the com- mission, according to announcements by Receiver Wells and city officials. Mr. Wells found fault particularly with that part of the finding, which fixed a 6 per cent return on a valuation of $50,- 000,000. J. L. Harrop, chief engineer of the Public Service Commission, had stated, however, that the commission in no way committed itself to that fig- ure by its statement and also that the commission never had recognized the tentative $60,000,000 valuation agreed on between the company and the city. Receiver Wells for the company gave out a statement for the company. He said in part: I hope that the people feel that we went into the fare matter with the commission in the utmost good faith and for the in- terest of the people first and then the in- vestors. The character of the award is very disappointing: to me. for it will make it exceedingly difficult to serve the public to the highest point of efficiency. The award does not materially benefit anybody. It creates a complicated system that will increase congestion in boarding the cars and the liability of accidents and will result In great delays. 1 felt perfectly sure the opportunity the people would have to buy tolcens at reduced prices at convenient places would have made the 10-cent cash fare immaterial. As it is now a great many cash fares will be paid and the dif- ficulty of making change will slow the loading of the cars down 25 per cent. If our request had been granted the fare could have been paid with either one coin or one token. This statement is made from the prac- tical point of view and the numerous crit- icisms of a 10-cent cash fare were not war- rented, being entirely theoretical, not prac- tical. We will do the best we can under the circumstances. May Ask Rehearing Before the text of the commission's award was received by officials of the company, Colonel Perkins said that it was not unlikely that a rehearing would be asked by the company, but on Sept. 12 the company notified the com- mission that the decision would be ac- cepted with the possible exception of the part fixing children's fares at 4 cents. Receiver Wells announced to the public that he contemplates pe- titioning the commission to allow the company to reduce this to 3 cents, the amount the company originally asked for. Adults' tokens will be sold in pack- ages of two for 15 cents, seven for 50 :ents, and fifty for $3.50. Monthly Tickets on Bay State Experiment to Enable People to Ride at Reduced Rates Where Pat- ronage Is Regular On Sept. 15 reduced fares obtained through the sale of a fifty-ride, non- transferable, limited-life monthly ticket selling for $3 were established experi- mentally by the Eastern Massachusetts Street Railway at Fall River, Mass. At Taunton a fourteen-ride ticket, selling for $1, unlimited in every particular, was scheduled to go on sale on Sept. 20, and at Lowell, Mass., on Sept. 25, a ticket on which sixteen rides are sold for $1, good for one person only and for an unlimited period, was scheduled to go into effect. All of these special tickets are purely experimental. The company reserves the right to withdraw them at any time. They represent an effort on the part of the trustees, co-operating with the local civic authorities and business in- terests, to afford the public means of riding at reduced rates where the pat- ronage is sufficiency regular to justify the purchase of tickets. The flat fare unit remains at 10 cents. Holders of the above reduced- rate tickets are accorded the same transfer privileges as travelers paying the regular 10-cent fare unit. These reduced-rate tickets were put into effect in response to petitions by the local authorities urging that lower rates than the maximum fare unit be provided. At Fall River about 7000 tickets were sold on the opening day. Before these went into effect the local authorities and the large mill interests conferred with the trustees, and the problem of establishing a lower rate was frankly discussed, all interests represented be- ing in harmony. In particular, the mill agents repre- sented expressed their willingness to sell tickets for the railway on their own premises, to advertise the new facilities and to post bulletins in wash rooms and other places to make it easier for their employees to use the reduced-rate serv- ice. It was pointed out that adequate transportation facilities at these re- • duced rates are an important factor in maintaining contentment among mill employees. Drug stores, department stores and practically every establishment in Fall River where circus tickets could be ob- tained in show-time, are also carrying these tickets for the company. The attitude of the local press and of the Chamber of Commerce shows much ap- preciation of the company's efforts to meet the situation. Ruling on Fare Evidence British Columbia Commissioner Decides That Gas and Electric Light Invest- ments Should be Excluded Major J. L. Retallack, Public Serv- ice Commissioner for the Province of British Columbia, rendered a decision on Aug. 6 as to the scope of evidence admissible in the 6-cent fare case of the British Columbia Electric Railway. This was the case wherein it is set out that an inquiry is to be made into the fare charged in Vancouver. The question was whether the inquiry should be restricted to the city of Van- couver alone or the rest of the com- pany's system. The city took the former stand. The company pointed out that the whole company was involved because the credit of the company was one. The outlying municipalities also took a hand, opposing the contention of the city and averring that the outside dis- tricts had a right to consideration as they paid a great deal toward the reve- nue earned on the city lines. After taking up commission pre- cedents. Commissioner Retallack ruled that the Victoria system, the Vancou- ver Gas Company and the company's investments in land not directly for the purpose of its power, light and railway system, should be excluded from the inquiry. The commissioner said: I therefore rule that, in the inquiry under the act, evidence should be accepted as to the British Columbia Electric Railway's in- vestment of capital, present property values, operating and administrative costs, ftxed charges, and receipts either directly or through its subsidiary companies in its electric railway system, as constructed and operated in the District of Vancouver (being the area contiguous to and in- clusive of the delta of the Fraser River, the cities of Vancouver and New West- minster, the municipalities of Point Grey, South Vanc£iuYer and Burnaby), the city and district of North Vancouver and the districts served by the New Westminster and Chilliwack lines, and including its in- vestments, present property values, admin- istrative costs, fixed charges and receipts directly or through its subsidiary com- panies in its power and electric lighting system in said district. The commissioner added, however, that such ruling did not decide what proportion of the return should justly be derived from the company's collec- September 20, 1919 Electric Railway Journal 601 tions within the city, and a decision would De necessary if the city's appli- cation were acted upon, as to whether it was "just to secure such return for the company by, for the sake of ex- ample: (a) Continuing the present system of rates, being a more or less different rate for each governmental division of the dis- trict of Vancouver. (b) Establishing a basic rate, modified in relation to mileage for the wliole of said district. (c) Establishing the zone system throughout the whole of said district — viz., a fare figured in proportion to the density of population and mileage. This being only a preliminary de- cision in the 6-cent fare case the matter is going on, one of the phases now up for discussion being the proposed ap- praisal of the company's property. Increases Announced on Massa- chusetts Roads Several Massachusetts electric rail- ways recently announced their inten- tion to increase fares. The Worcester Consolidated Street Railway has filed with the State Public Service Commission a revised schedule of fares under which the city of Wor- cester will be divided into two zones with a 5-cent fare in each zone. The inner zone, having its center at the City Hall, will be four miles in diam- eter. Beyond the limits of this zone, an extra fare will be collected. The company will charge 2 cents for trans- fers. Interurban rates are also raised to approximately 2.5 cents a mile. The present fare in Worcester is 7 cents, no charge being made for transfers. The Interstate Consolidated Street Railway, Attleboro, will replace the present 5-cent fare unit with one of 6-cents, without the transfer privilege. Zone limits will remain as at present. The Milford, Attleboro and Woon- socket Street Railway, Milford, will in- stall a 7-cent unit. The present unit is 5 cents. The Fitchburg & Leominster Street Railway, Fitchburg, has notified the Commission that on Oct. 1 it will begin charging 10 cents. The present 7-cent fare was authorized last November. Strip tickets will be sold at the rate of six for 50 cents. They now cost 50 cents for eight. A somewhat similar issue is raised in a suit brought at White Plains, N. Y., on Sept. 2, to recover 5 cents for breach of contract. The action has been filed in the Court of County Judge Frank G. Young against the Yonkers Railroad by Henry Koster, retired merchant, of Yonkers. Mr. Koster boarded a car for Yonkers when the company doubled the fare between Yonkers and New York. When he refused to pay a sec- ond fare, which he maintained was an illegal charge, he was ejected. He de- mands his nickel back, alleging the company failed to keep its contract to carry him to his destination for the fare he paid. He sues for $1,999 for the humiliation, discomfiture and incon- venience which he alleges he suffered by being publicly ousted from the car after having paid his fare. Must Honor Ticket If the higher courts sustain a ruling made recently by Judge Caverly, the Chicago (111.) Elevated Railways will have to accept for full fare payment the tickets which were previously sold for 6 cents each. This decision was made in a suit brought by Robert E. O'Connor whose attorneys argued that the wording of the tickets "good for one fare" made a binding contract for transportation of the holder even when the legal rate of fare had been raised to 8 cents. Judgment to the amount of 2 cents was rendered in favor of the plaintiff. It was announced that the elevated companies would appeal the case. Commission Not Empowered to Prescribe Jitney Rules * The Public Service Commission of Massachusetts has no power to pre- scribe regulations governing the opera- tion of jitneys, but may either approve or disapprove such regulations when adopted by municipalities, according to an opinion filed recently by Attorney General Henry C. Attwill. The Attor- ney General had been called upon to pass on the commission's power to act on the protest of the Holyoke Street Railway against jitney regulations of the Board of Aldermen of that city. An appeal was taken from the rules prescribed by the commission in several cases where objection was taken to the regulations of Holyoke authorities. The opinion of the Attorney General holds that in prescribing jitney regulations in Lawrence, Haverhill, Maiden, New Bedford, Lynn, Salem, and elsewhere in the eastern part of the State, the com- mission exceeded its authority. Seven Cents for Cincinnati On Sept. 13 it was announced that the rate of fare on the Cincinnati (Ohio) Traction Company's lines would be increased to 7 cents on Oct. 1. A deficit of $113,000 in the cost of opera- tion occurred during July and August. The franchise provides that the fare may be automatically increased half a cent, when a deficit in the cost of oper- ation occurs, but the company is re- quired to make an announcement of the fact on the fifteenth day of the month preceding the date the increase goes into effect. Increase on Fitchburg & Leominster A new wage scale, embodying a maxi- mum of 56 cents an hour, has been established on the Fitchburg & Leo- minster Street Railway, Fitchburg, Mass. The basic eight-hour day is pro- vided, with time-and-one-half for over- time. The company plans to petition the Public Service Commission for au- thority to raise its fares. Transportation News Notes Atlanta Using Tokens. — The Georgia Railway & Power Company, Atlanta, Ga., has been using metal tokens since Sept. 1. Each token costs the pas- senger 6 cents. This is the same as the cash fare. The use of the tokens does not affect the sale of books con- taining seventeen tickets for $1. Higher Zone Fares on Pennsylvania Interurban. — The Southern Cambria Railway, Johnstown, Pa., which op- erates interurban lines in Cambria county, has announced an increase of zone fares from 6 cents to 7 cents ef- fective on Oct. 3. At the same time the wages of employees will be in- creased. City Has Jitney Regulatory Power. — In a recent decision handed down by Superior Judge R. M. Webster, the ac- tion of the City Council of Spokane, Wash., in denying a jitney license to an applicant was sustained, the Judge holding that the City Council has power to regulate all traffic on the city streets. Counsel for the applicant has announced that the local jitney owners' association will appeal the ruling to the State Su- preme Court. Zone System Desired by New Bed- ford Line. — H. H. Crapo, president of the Union Street Railway, New Bed- ford, Mass., appeared before the Mas- sachusetts Public Service Commission recently in support of a new fare sche- dule. It is proposed to divide the city into two 5-cent zones, the center of the city being the division point. Mayor Ashley urged that the 5-cent fare be retained during the rush-hour periods. A finding will be made later. Would Abandon Small-Lot Freight Service. — A petition to abandon its less- than-carload freight service in the eastern division of the city of Birming- ham has been filed by the Birmingham Railway, Light & Power Company with the Public Service Commission of Ala- bama. In the petition it is pointed out that the increased use of motor trucks and the extension of street paving were reasons which wore reducing the volume and making the traffic unprofit- able in less than carload lots. Fare Case Reopened Following Com- plaints.— Orders have been issued by the Oklahoma Corporation Commission reopening the fare case from Mc- Alester, involving the Pittsburgh Coun- ty Railway, which operates in Mc- Alester. The commission last August granted a 7-cent fare applicable to all parts of the city. Complaints were made that the company had restrict- ed its service, and the order reopening the fare case followed. 602 Electric Railway Journal Vol. 54, No. 12 Seven-Cent Fare Upheld.— The Public Service Commission of Pennsylvania has sustained the 7-cent fare of the Valley Railway, operating from Harris- burg to Carlisle, Mechaniscsburg, New Cumberland and other places in Cum- berland county, and Marysville, in Perry County. It dismisses complaints filed by the boroughs of Carlisle and West Fairview, and by various resi- dents and associations of West Shore towns. The complaints were heard last winter and spring, and a valuation of the system was made. Five-Cent Fares a Political Issue. — Retention of the present 5-cent fare will be an issue in the coming political campaign in New York City. Robert L. Moran, Democratic candidate for re- election as president of the Board of Aldermen, has announced that he will make the fare question the chief plank in his platform. He favors a 5-cent fare "if the public can be guaranteed adequate service for that rate." If he is re-elected he promises to investigate the managment of the railway com- panies "with a view to getting for the public the best possible service at the lowest possible fare." No More Free Ferry Transfers. — The contract between the New York Railways and the city of New York, which operates the Staten Island Ferry, by which passengers could travel be- tween St. George, Staten Island, and any point reached by the cars of the company running to the ferry tei-minal at Whitehall Street, terminated on Sept. 15, by order of Federal Judge Mayer. Hereafter the passengers will receive the needed transfers when they buy their tickets at St. George, but the pur- chase will be accompanied by a warn- ing that the railroad company will not honor them and that they will have to pay another 5-cent fare if they want to ride in the cars of the railways. City Asks for One-Man Cars.— City Attorney Pierce Tyrell of Elgin, 111., has petitioned the Public Utilities Com- mission of Illinois to order the use of one-man cars on the city lines in Elgin by the Aurora, Elgin & Chicago Rail- road. Mr. Tyrell has made this plea to combat the plea of the company for an 8-cent fare for city passengers. He hopes to have the fare placed at 6 cents or even at 5 cents, if the operation of one-man cars is allowed by the com- mission. Elgin will also ask the com- mission for a consideration of its case separate from the case of the company in connection with its local Aurora lines, on which an 8-cent fare is also being sought. Fares Still Unsettled in Jacksonville. —The City Council of Jacksonville, Fla., has passed a second ordinance submitting to a special municipal elec- tion the question of granting the Jack- sonville Traction Company a 7-cent fare. The first ordinance, referred to in the Electric Railway Journal some time ago, was vetoed by Mayor Martin because it did not provide for popular control of fares once the higher rate had been granted. The new ordi- nance stipulates that the Council may call for a special election to decide the question of lowering fares. The com- pany must defray the expenses of the special election at which the question of higher fares is to be decided. Will Not Reopen North Shore Case.— The application of Corporation Counsel William P. Burr of New York to have the Public Service Commission of the First District reopen the case of the New York & North Shore Traction Com- pany and to restore the 5-cent fare on that company's lines within the city limits, was denied by the Public Service Commission after a hearing in the Flushing Town Hall on Sept. 5. Be- tween 500 and 600 residents of Flush- ing, Bayside, Whitestone, Douglas- ton and Little Neck applauded when Deputy Public Service Commisioner Al- fred M. Barrett, of Flushing, announced that the Corporation Counsel's applica- tion for a rehearing in the matter had been denied. Seeks Injunction in Illinois Fare Case.— The East St. Louis & Suburban Railway, East St. Louis, 111., has asked the United States District Court, at Danville, 111., for an injunction to re- strain the Public Utilities Commission of Illinois, the Attorney-General of Il- linois and the State's Attorney of St. Clair County from interfering with the company's charging more than 2 cents a mile. When a nine-day strike on the East St. Louis & Suburban Railway was ended recently, an agreement of the men to return to woi'k pending- some action of the Public Utilities Commission, it was understood that an advance in wages would be made if rates were increased. The appeal to the Federal Court followed. No Extra Charge to Token-Holders. —Holders of the 20,000 5-cent tokens of the Tri-City Railway, Davenport, Iowa, will be allowed to use them for street-car fare on the company's Illi- nois lines without the payment of addi- tional 2 cents, following the installing of the 7-cent fare, as allowed by the Illinois Public Utilities Commis- sion. At first, conductors asked for payment of 2 cents with each 5-cent token, but did not insist on the extra collection in case the passenger dis- sented. The remaining 5-cent tokens will be accepted as full fare and as fast as they collect will be taken out of circulation, as the company has pro- vided a full supply of 7-cent tokens of smaller size. The company has re- moved cash-collection boxes from its cars. Campaign to Reduce Accidents. — The Georgia Railway & Power Com- pany, Atlanta, Ga., is conducting a campaign to reduce the number of col- lisions between automobiles and trol- ley cars. The latest phase of this cam- paign is a booklet entitled "For Hu- manity's Sake," several thousand copies of which are being distributed among the autom'obile ovsmers in At- lanta. The booklet illustrates by pic- tures and description the most preva- lent type of automobile accidents with street cars, shows how a little caution on the part of the automobile driver as well as that of the railway motor- man could have avoided them, and makes a determined plea for elimina- tion of the great waste in property and human efficiency that such acci- dents cause. Safety Zones Recommended. — Estab- lishment of the safety-zone plan, arranged to protect passengers board- ing or leaving electric railway cars and still permit vehicle traffic to pro- ceed, is recommended by L. E. McGee, police and fire commissionser of the city of Dallas, Tex. Mr. McGee made his recommendations after a thorough investigation with a view to instituting the one-way traflnc rule in the business district of Dallas. The one-way traffic rule is opposed on the ground that the many long blocks would work con- fusion and the one-way rule would re- tard rather than speed-up traffic. The establishment of a safety-zone plan is recommended instead. He would have the zone marked by movable standards, which would be used only during the rush hours. Would Raise Local and Interurban Fares. — The Chicago, Lake Shore & South Bend Railway, Michigan City, Ind., has petitioned the Public Service Commission of Indiana for an 8-cent cash fare between any two street stops in East Chicago and Indiana Harbor; permission to sell five tickets for such tiavel at 35 cents; 3 cents a mile for passenger fare between points on its interurban system with a 10-cent mini- mum and a 10-cent penalty for cash fare, and a twenty-five trip, sixty-day commutation ticket, good to purchaser only, between Gary and East Chicago for $4, and between Gary and East Chicago for $5. The company has also filed notice that it has petitioned the Interstate Commerce Commission for permission to cancel commutation tickets between Gary and Kensington, 111., and other points in Illinois. Wants All Cars Fenderless. — The Capital Traction Company, Washington, D. C, will petition the Public Utilities Commission to allow it to remove fenders from all its cars. On June 29 the company was authorized by the com- mission to operate all its cars on the Georgetown line, as an experiment, without fenders. This involved be- tween sixty-five and seventy cars. After two months and a half of fender- less cars the company is now looking forward to making the fenderless car a permanent innovation in Washington. The experiment has ' proved entirely satisfactory, decreasing accidents, it was said, and reducing operating ex- penses to some extent. The superin- tendent of operations, while not in pos- session of exact data on the amount saved or the accidents prevented, was fully confident that the fenderless car was a benefit both to the company and to the public. September 20, 1919 Electric Railway Journal 603 Personal Mention David Daly at Keokuk General Manager of Houston Company Transferred by Stone & Webster to Their Mid-West Properties David Daly, general manager of the Houston (Tex.) Electric Company since 1905, has been promoted and transferred to Keokuk, la. Mr. Daly will be district manager at Keokuk for the Mid-West properties of the Stone & Webster interests and will also have charge of the Mississippi River Power Company, which operates one of the largest hydro-electric power plants in the country. In addition to being gen- eral manager of the Houston Electric Company for nearly fourteen years, Mr. Daly since 1913 has had charge of the Galveston-Houston Interurban Rail- way. After graduating from Harvard Uni- versity, Mr. Daly entered the organiza- tion of Stone & Webster, in their Bos- ton office, being assigned to the statis- tical department in handling insurance matters. Later he went to Ponce, Porto Rico, where he became manager of the Ponce Electric Company. His health failed in Ponce and he returned to Boston where he remained until Aug. 1, 1905, when he went to Houston as manager of the Houston Electric Company, succeeding H. K. Payne. In 1913 the management of the Galveston interurban was added to his duties. Mr. Daly went to Houston at a time when it was just beginning its era of phenomenal grovi^th from a small to an important city. The local railway was kept fully abreast of the city's development and in 1914, when the jit- neys first began operation there it was in a high state of efficiency. The novel- ty of the jitneys in their early stages took nearly $500,000 in revenue from the i-ailway during the first year of their operation. This and the war forced retrenchments in both mainte- nance and additions. The jitney mat- ter is now in process of adjustment in the federal courts. Mr. Daly always has taken a lively interest in civic affairs and has given liberally of his time to movements de- signed to promote Houston's growth and civic betterment. No successor to Mr. Daly, as man- ager at Houston has yet been an- nounced. Pending the permanent fill- ing of the place, Luke C. Bradley, dis- trict manager for Texas of Stone & Webster, will have active charge of the operation of the properties. T. J. Ramsey, assistant auditor for the Texas Electric Express Company at Dallas, Tex., has been transferred to Sherman, Tex., as special route agent. H. Stuart Johnson, manager of the Honolulu Rapid Transit & Land Com- pany, Honolulu, H. I., expects to arrive in the United States about Oct. 1 for a two-months stay. Harold B. Kuder has succeeded Mal- colm Mclntyre as special car agent and assistant to the general manager of the Detroit (Mich.) United Railway. Mr. Kuder was company stockkeeper prior to his new appointment. F. Windle, who was appointed as- sistant superintendent of transporta- tion of the Pittsburgh, Harmony, But- ler & New Castle Railway on Jan. 1, 1919, has been made superintendent of the company. Mr. Windle was former- ly superintendent of the Indianapolis & Louisville Traction Railway. His railway experience covers a period of more than twenty-five years. Sir Albert H. Stanley, chairman of the London, England, underground under- takings, has been elected a member of the National Industrial Council, which is to consider questions of labor and wages. Sir Albert, who recently visited the United States, was made president of the Board of Trade in the Lloyd George cabinet in 1917. He resigned a short time ago on account of ill health. Malcolm Mclntyre has been ap- pointed night superintendent of the city lines of the Detroit (Mich.) United Railway. He has been with the com- pany for a number of years and has held the following positions: Agent at Algonac; carhouse foreman, assistant superintendent of the Jefferson line, superintendent of the Pontiac and Or- chard Lake division, and special car agent and assistant to the general pas- senger agent. W. S. Murray, consulting engineer, New York City, has been appointed chairman of the traction and transpor- tation committee of the American Insti- tute of Electrical Engineers. The pur- pose of this committee is to keep the membership of the institute informed as to electric traction progress, par- ticularly in providing suitable papers for meetings. For most of his pro- fessional life Mr. Murray has been engaged in electric traction and allied transmission work, being for eleven years associated with the New Haven Railroad in its pioneer alternating-cur- rent electrification. He opened his consulting office in New Yoi-k early in the present year. Edgar W. Bright, for the past twenty years in the engineering, purchasing and maintenance departments of the Boston (Mass.) Elevated Railway, has organized the Massachusetts Lumber & Creosoting Company, and will shortly begin the construction of a modern wood preserving plant. Mr. Bright has specialized in tie and timber purchasing and treatment for the past fourteen years, and as designer and supervisor of the Boston Elevated wood-preserv- ing plant at South Boston, has had wide experience in the operation of equipment of this class. Mr. Bright is president of the new company, the vice- president being Ernest Lent, who has been his assistant for some time in the Boston Elevated Railway. Maj. John Lansdale, formerly as- sistant engineer in charge of valuation work of the Pacific Electric Railway, Los Angeles, Cal., has returned to the United States after nineteen months service in France. Major Lansdale re- ceived his commission as Captain of Engineers in June, 1917. After several months of intensive training at Leaven- worth, Kan., he went to France, where he was made Engineer Officer in charge of constructing the railroad line to Base Hospital No. 27. He subsequently held a number of other posts, and was promoted to Major of Engineers in August, 1918. At that time he was cited by General Pershing for "especial- ly conspicuous and meritorius service." He will rejoin the Pacific Electric Rail- way in the near future. He was in charge of building the Nevers cutoff at Nevers, France. George H. Dick, secretary to J. J. Dempsey, vice-president of the Brook- lyn (N. Y.) Rapid Transit Company in charge of traffic, has severed his con- nection with the company to enter the employ of the R. E. Seamans Company, Inc., of which Mr. Dempsey has re- cently been elected a vice-president. Mr. Dick will remain with his old chief in practically the same capacity as in the past, acting as his secretary and as office manager of the New York office of the Seamans Company. Mr. Dick entered the service of the B. R. T. as a stenographer on Feb. 1, 1906, and in August of that year was placed in charge of the record room of the ele- vated lines. In September, 1908, he be- came secretary to Mr. Dempsey, who was then superintendent of elevated lines, and continued with him when Mr. Dempsey became vice-president on Jan. 1. 1918. George M. Lewis, lawyer and street railway promoter, died on Aug. 28 at his home in Wilkes-Barre, Pa., at the age of seventy-one years. Mr. Lewis took an active part in organizing the electric railway system of the Wyom- ing Valley, in Pennsylvania, which formed the nucleus of the present Wilkes-Barre Railway. He was gradu- ated from Lafayette College, Easton, Pa., in 1873, and for the last fifty-five years had made his home in Wilkes- Barre. Manufadures and the Markets DISCUSSIONS OF MARKET AND TRADE CONDITIONS FOR THE MANUFACTURER, SALESMAN AND PURCHASING AGENT ROLLING STOCK PURCHASES BUSINESS ANNOUNCEMENTS Crossarm and Pin Orders Increasing Prices of Pine Arms Up 15 Per Cent — Fir Arms Up 10 Per Cent— Wood Pins Firm In anticipation of fall construction and winter maintenance needs there has been a good volume of wooden crossarm and pin ordering to date. There is, however, considerable room for improvement if stocks of certain grades of fir arms are to be accumu- lated and regular stocks of woodenware maintained. Prices on pine crossarms advanced 15 per cent on Sept. 15. At New York warehouse 6-ft., four-pin - and six-pin yellow-pine arms cost $78.10 in less than 1000-linear-foot lots, and 75 per cent long-leaf arms $89.64. In lots of more than 3000 linear feet these re- spective prices will be $65.08 and $74.70. Deliveries are good. Fir arms went up 10 per cent on Sept. 1, with one grade ranging from $92.04 to $110.45 for the same size and quantities as above with mill deliveries, and an- other grade $51.19 in carload lots and two to three months' deliveries. On pins prices have remained rather steady, and no change is looked for in the near future. Locust pins, 1= in. by 9 in., are quoted at $45, $40, $24 per 1000 in lots from less than 250 pins to 5000 and over. Rail Requirements Large Volume of Business Not Large But Im- proving— Good Deliveries Now Made from Mills Although steel rail and accessories equipment buying so far this year has been smaller than in any similar period for a number of seasons, the time is coming shortly when rail renewals will have to be made. The recent order given out by the Railroad Administra- tion for 200,000 tons of rails placed in the steam railway field is merely an indication of what is to be expected. It has been estimated that the demand for the steam railroads up to the first of the year would be 1,000,000 tons, and it is believed that one-third or one-fourth of this amount may be or- dered by that time. There is no danger of the steam roads monopolizing the mill space, as all that has been ordered to date can be run off in a short time. The mills are in good shape to receive orders for the high T-rail, girder rails or the stand- ard A.S.C.E. and other sections. Some of the mills are running a little bit slack, but nevertheless deliveries are good. The mills are in good shape to handle anything in the way of rail orders, accessories or special track work. One large mill which will accept orders as small as 250 tons can make deliveries within two weeks of order. As a rule when there is plenty of mill space, orders come in slowly and the demands for rails are small. Later on when the railways commence buying the companies will be crowded with or- ders and mill conditions will approxi- mate those at the early part of the war. Generally speaking, the price quotations which hold good at the present time, are those made at the time of inquiry. Girder rails are now bringing $65 per gross ton, in 250 ton lots, while the high T-rails are bringing around $60 per gross ton. The standard A.S.C.E. and A.R.A. types are quoted at $45 to $51 per gross ton. Encouraging Outlook in Used Equipment Market Increase in Buying for Fall Delivery Expected — Prices Probably Will Be Advanced During the past two months the con- dition of the used apparatus market has improved to a marked degree and a large volume of business has been transacted. This state of the market is not localized, but is characteristic of the whole country. Inquiries for ex- port are in a healthy state and point to a satisfactory market in that direction. The power generation apparatus market is in good shape in respect to demand for the steam driven sets, al- though for other generating equipment stocks as a whole are low and there is less available material for sale now than before the war. Prices have been holding steady all summer and are given on an average as 50 to 70 per cent of new apparatus prices. A rising market is looked forward to as the lengthening shipments of the larger sized motors from manufacturers causes increased sales for the second hand dealer. Spanish Railway to Buy Equipment Compania de Travias de la Corunna, Spain, has issued securities in order to carry out the construction of the Corunna-Soda electric line, which will be 11.4 miles long. The purchase of the material for the construction of this new line will be made in foreign coun- tries, and the opportunity for Ameri- can concerns to supply the material and to oversee the construction is favorable. "Price at Delivery" Policy Is Questioned Manufacturers Differ as to Practices, Although Conditions Justify Withdrawal of Schedule The practice started during the war of billing goods at the price in effect at the time of their delivery is grow- ing among electrical manufacturers, who must buy raw material on this basis. However, the basis for the trend toward this new "price at de- livery policy" is labor, because the increased cost of raw materials, such as iron, copper and coal, which are re- quired by different manufacturers, is mainly an increase in the cost of labor. The manufacturer is also confronted with increased fabricating costs and a decreased output of labor at the same time. A number of central station and in- dustrial buyers do not object seriously to this policy provided it is kept in effect for a complete cycle of rising and falling prices. Broad-gaged busi- ness men do not ask manufacturers to protect them against an increase in price and also to give them the bene- fit of any reduction which may become operative between the time of ordering and of delivery. But this has been and still is the policy of a number of representative manufacturers. Labor Cost May Govern Many buyers feel that a manufac- turer should take whatever steps he may deem necessary to protect himself when he receives an order. This can and is being done by some manufac- turers, but it is not always practicable. The ratio of the cost of labor to that of material in an article may be so high that labor is the governing factor in making the price, and in this case the manufacturer in unable to pro- tect himself against the growing in- efficiency and rising wages. It is easy for a manufacturer to change his price policy if he does so without considering the results. A manufacturer may have the best pos- sible intentions but will probably have some difficulty in explaining to an irate customer why his goods were shipped just late enough to come under an increased price schedule or just early enough to miss a reduction in price. There is some question there- fore whether a change to a "price at delivery" policy would not cause the manufacturers to lose more in ^ cus- tomers' good will than would be justi- fied by the more scientifically correct price arrangement. September 20, 1919 Electric Railway Journal 605 Rolling Stock Brockton & Plymouth Street Rail- way, Plymouth, Mass., has ordered two safety cars from the Wason Manufac- turing- Company. Georgia Railway & Power Company, Atlanta, Ga., has been authorized by the Georgia Railway Commission to guai-antee the payment of equipment notes amounting to $132,231 for the payment of the 15 center-entrance cars recently ordered from the American Car Company as noted in the July 12 issue of the Electric Railway Jour- nal. Recent Incorporations Waco, Tex. — O. A. Ryfle, president and general manager of the Central Texas Electric Railway, formerly the Waco-Temple Interurban Association, has announced the organization of the Central Texas Engineering & Construc- tion Company, the purpose of which is to construct the proposed interurban line from Waco to Temple. The capital stock is $50,000. Headquarters will be maintained in Waco. Track and Roadway Indianapolis (Ind.) Street Railway. ■ — The following extensions to the street car lines of the Indianapolis (Ind.) Street Railway have been auth- orized and will be pushed through this fall: Brookside Avenue ear line ex- tension to the plant of the Premier Motor Company; College Avenue ex- tension of city service to Forty-sixth Street; the Shelby Street extension to the city limits on the tracks on the Interstate Public Service Company. It was also agreed that within a year the question of extending city service to Fifty-second Street would again be brought up. A "Y" switch for Forty- sixth Street will be needed. Toronto (Ont.) Civic Railway. — Works Commissioner Harris of Tor- onto, Ont., informed the Board of Con- trol early this month that the plans and specifications for the proposed Mount Pleasant road car line, on which his department has been working, will be ready for submission to the Rail- way Commissioners very soon. Dallas (Tex.) Railway.— The Dallas Railway has been ordered by the City Commission to construct a line on Sev- enth Street, from Seventh and Tyler, thence on Edgefield to King's High- way or as far as the funds available will permit. This order followed a hearing before the City Plan Commis- sion on the proposed routings of this extension and the recommendation of the commission for the Seventh Street route. Portland Railway, Light & Power Company, Portland, Ore. — In a petition filed with the State Public Service Com- mission by the city of Portland, Ore , the Portland Railway, Light & Power Company is asked to extend its lines from the present terminus at Fessenden and Jersey Streets to the St. Johns terminal. The line would be about li miles long, and would cost between $30,000 and $35,000 to build. The peti- tion declares that the city has no ob- jection to the extension being classified as an interurban line, and the city offers to give reasonable franchise rights over the city streets, and to help gain reasonable franchise rights over county roads. Philadelphia, Pa. — Two proposals were submitted to Director Twining of the Department of City Transit on Sept. 9 for the completion of the steel superstructure of the Frankford elevated road on Front Street for a distance of 173 feet. The bids were those of the McClintick-Marshall Com- pany, who offered to complete the op- eration for $31,277, and the Phoenix Bridge Company, $40,846. Less than sixty feet of superstructure work re- main to make the physical connection between the Frankford L and the Market street subway lines at Arch street. No award will be made until after a de- cision has been handed down by the Supreme Court regarding the validity of the municipal loan of $12,970,000. Dallas (Tex.) Railway. — Street car service for the Mount Auburn and Lakeview additions to the city of Dallas are assured. Mayor Wozencraft an- nounces that he has secured $40,000 of a fund of $50,000, for which J. F. Strickland, president of the Dallas Railway, agrees to build and operate a line through these additions to a con- NEW YORK METAL MARKET PRICES Sept. 2 Sept. 16 Copper, ingots, cents per lb 22.375 22.I2J Copper wire base, cents per lb 26.00 26.00 Lead, cents per lb 6.00 6.25 Nickel, cents per lb 4 1 00 41 00 ■Spelter, cents per lb 7 85 7.55 Tin, cents per lb 55 .75 to 56.00 56.00 Aluminum, 98 to 99 per cent, cents per lb 32. 00 to 33.00 32.00 to 33.00 OLD METAL PRICES— NEW YORK Sept. 2 Sept. 16 HcMvy lupptr, cents per lb 18.50 to 19.00 lO.OOto 19.50 Light copper, cents per lb 15.00 to 15.50 15.50 to 16.00 Heavy brass, cents per lb 10.50 to II 00 10.00 to 10.50 Zinc, cents per lb 4.75 to 5.00 4. 75 to 5.00 Yellow brass, cents per lb 9.00 to 9 25 8.50 to 9.00 Lead, heavy, cents per lb 5 00 to 5.10 5.00 to 5.10 Steel car axles, Cliicago, per not ton. . . 526.00 to '27.00 $26 . 00 to }27 . 00 Old carwheels, Cliirago, per gross ton. . 525 00 to$27.00 ; 25 . 50 to $27 . 00 Steel rails (scrap), Chicago, per gross ton ; 22.75 to 23.75 " 22. 75 to $23 . 75 Steel rails (relaying), Chicago, gross ton 326.50 toS27.50 $26 . 50 to $27 . 50 Machineshopturnings, Chicago, net tor S9.25 to $9 75 i9.25to $9.75 ELECTRIC RAILWAY MATERIAL PRICES Rubber-covered wire base, New York, cents per Ih Weatherproof wire (100 lb. lots), cents per lb.. New York Weatherproof wire (100 lb. lots), cents per lb., Chicago T rails (A. S. C. E. standard), per gross ton . T rails (A. S. C. E. standard), 20 to 500 ton lots, per ^ross ton T rails (A. S. C. E. standard), 500 ton ^ lots, per gross ton T rail, high (Shanghai), cents per lb. . . Kails, girder (grooved), cents per lb Wire nails, Pittsburgh, cents per lb. . . . Railroad spikes, drive, Pittsburgh base, cents per lb Railroad spikes, screw, Pittsburgh base, cents per lb Tie plates (flat type) , cents per lb Tie plates (brace type), cents per lb . . Tie rods, Pittsburgh base, cents per lb. Fish plates, cents per lb Angle plates, cents per lb Angle bars, cents per lb. . Rail bolts and nuts, Pittsburgh base, cents per lb . Steel bars, Pittsburgh, cents p' r lb Sheet iron, black (24 gage), Pittsburgh, cents per lb Sheet iron, galvanized (24 gage), Pitts- burg)!, c. o a) .a two zone tickets were deposited. For local riding in zones a minimum of fare of 5 cents was charged. Iftheride (§) Center of /Gr^vlTy of Tri^ffio M •' 7 " " Population • tare Points - OVERLAP ZONES O 5?lV O 2G45' ZONE MAP OF MILWAUKEE AND VICINITY was through three zones or fractions thereof, three zone tickets or 6 cents were collected. Except on the South Milwaukee line there was, and for that matter is now, verj' little local riding, and the only precaution em- ployed to prevent over- riding was that of hav- ing conductors "spot" riders paying local fares while the car was run- ning through suburban zones. When the city fare zone limit was reached, the conductor glanced through the car to see if any local pas- sengers were overrid- ing, collecting the city fare in case they were. Transfers to other city lines were issued on re- quest at the time the fare was paid. Outbound passengers paid on entrance to the car a 5-cent city fare and at each zone limit the conductor carried the fare box through the car, collecting zone tick- ets or cash fares, as the case might be. As indicative of the care with which the zone system was planned and carried into effect, it may be stated that com- paratively few changes in operating methods 616 Electric Railway Journal Vol. 54, No. 13 |mE:i mm TMEJ.^LI Fare Paid !o Statioa Puncltat GOOD THIS DAY till! THAI!! OKLV Milwaukee X SI Fnncls Avi, X X tails tvg,, Ciils^ X X Hiwfiim 6vB„ Sd. MI»siiIc« X KvoEiltg Ave., So. Miiwaoioa X So. Units, So. MilwaakBt M Pnotz' Rosd X (Mills Rnil X bmH CM, Drit'i Rul. X FKsiiDiiDns' Roiil X Siml (Had X Tils Receliil Is nt Trantfei- able and-MUST tie ^eiil sdto CoidiAitiii wlien LeailDE Car. The Milwaukee Electric Railway and Light CompaQy. REFUND ACCOUNT DROPPING EXCESS IN FARE BOX Address— Date -Badge. Amt. dropped tn^ - Amt. to be refunded— First, typical transfer zone receipt used on Milwaukee suburban lines. SeconcJ, fare receipts used on Soutli Milwaul^ee line. Third, refund slip issued to passen- gers dropping- too much money into the fare box. Fourth, card used in recording daily i-eceipts from a given line. The Mllw3„kre Cl,-rtrlc Riiilw.., aiiJ LrjiL Company CASH RECEIPTS IDENTIriGATION CARD LINE Denomination Counter Head Number _ _ Counted by _ Ending Reading Beginning Reading JUL Recubr 5c (Metal) have been found necessaiy during the pa.st five years. Most of the changes which have occurred have been either the result of progress in the art or for financial reasons rather than because of defects in the zone sys- tem. Petitions to the Railroad Commission from some of the communities involved have resulted in some slight changes in the zone limits. These changes are noted in Table I. Possibly the most important of these has been the change from seven to six zones on the South Milwaukee line. The rolling stock has been gradually undergoing the change from open-door to the closed-door construction, and some modifications have been made in the rates of fare since the inauguration of the mile-zone system. As the result of an agitation in the community for lower fares, the commission or- dered the sale of zone tickets at the rate of thirtv tickets for 50 cents in October, 1914. On account of the increasing cost of operation the company in January, 1915, finally secured from the commission an order re- scinding the ruling requiring the sale of thirteen tick- ets for 50 cents and twenty-six tickets for $1, and in June, 1918, the reduced rate on city and suburban tickets was also rescinded. The city fare was thus made 5 cents straight and the zone fare 2 cents. The com- ])any discontinued the sale of paper tickets as it was found that their use permitted some fraud. Methods of Fare Collection Possibly the most important change made since the inauguration of the mile-zone system has been the change in the method of fare collection. This change was made not so much to reduce the number of acci- SUBURBAN LINES ONLY— REPORT OF PASSENGERS CARRIED IN ZONES JNE OUTBOUND TrlJ liwliir CITY fARE LIMITS TOTAL PASS. tN CAR ENTERING SUBURBAN ZONE 1st ZONE 2nd ZONE 3rd ZONE 4th ZONE 5th ZONE 6th ZONE FREE TICKET PASS. CARRIED ZONE RECEIPTS COLLECTED Numtier ol Pasj. Bearding Car Numlier 01 Pass. Lewng Car Nimilier 01 Pass. BoardlRg Car Number ol Pass. Leaning ' Car Number ol Pass. Boarding Car Number ol Pass. Leaning Car Number ol Pass. Boarding Car Number ol Pass. Leaving Car Number ol Pass. Boarding Car Number ol Pass. Leaving Car Number of Pass. Boarding Car Number ol Pass. Leaving Car 1 2 3 4. INBOUND Trip Number 1st ZONE 2nd ZONE 3rd ZONE 4th ZONE 5th ZONE 6th ZONE FREE TICKET PASS. CARRIEO ZONf RECEIItS COLLECTED Number ol Pass. Boarding Car Number ol Pass. Leaving Car Number ol Pass. Boarding Car Number of Pass, leaving Car Number ol Pass. Boarding Car Number ol Pass. Leaving Car Number of Pass. Boarding Car Kumtier of Pass. Leaving Car Number of Pass. Boaming Car Number of Pass. Leaving Gar, Number of Pass. Boardiill (ar Number of Pass. Leaving Car 1 2 3 4 TOTAL IN BOUND START , HERE Conductors must report total number of passengers boarding car and leaving car in each zone Transfer zone receipts must be used on all line^ having more that) one zone. Transfer zone receipts should not be turned in yylth the tHlvsfe-^ '^^illected on city lines, but should be mailed separately.;, conductor's trip sheet for recording zone PAS3ENGER FLOW September 27, 1919 Electric Railway Journal 617 dents, missed fares and cases of fraud, as to locate the conductor at the rear of the car where he could be of most assistance in speeding up car operation. Under the present plan of operation outbound passengers on all of the suburban lines, except the South Milwaukee line, pay a city fare of 5 cents as they enter the car. If they are transferring from another car line the con- ductor is handed a transfer. All cash fares are depos- ited in a fare box, which is of the lock type and was designed and built by the company in its own large. FORM 983 The Milwaukee Electric Railway and Light Company RAILWAY CASH RECEIPTS DATE 191 Fnn 191 Currency Gold Silver Dollars " 50 Cents " 25 " " 10 " — Nickels (In Bags) Pennies (In Bags) CHANGE tl.OO .50 .25 10 .05 .01 CHECKS TOTAL Wells Strcot-Farwell Avenue Fond du Lac-Kational Avenues Walnut Street Eighth Avenue-Third Street Stub Burnham-Third Streets Oakland-Delaware Avenues Holton-Irfitchell Streets Eighth Street Viaduct Clybourn-Michigan Streets Twelfth- Wisconsin Streets Twelfth Street Viaduct State-Wisconsin Streets First Avcnue-Vliet Street Howell Avenue- Vliet Street North Avenue Public Service Building-South Milwaukee Center Street 35th Street 27th Street North AvcDue-8th Street Private Cars Interurban , TOTAL P.- ployees. These tickets are all numbered and carefully accounted for. All zone limit points are marked with a pole sign and the passing of a zone point is called to the at- tention of the passengers by the conductor. Passengers entering the car beyond the city fare limit pay either the minimum 5-cent fare or if riding through more than two zones, as on the Fox Point line, pay their fare to destination, receiving a punched receipt. This re- ceipt, as shown in an accompanying illustration, is COIN COUNTER READINGS ■^COUMTER HEAD KO. NICKEL READINGS NUMBER COUNTED 2259 EndlDff N limber BeifioniDK Number Difference 2260 Entilnc N umber Beclnnine Number Difference 2261 Ending N umber BeRinninK Number Difference 2264 Endinf? N Begionins Number Difference 2265 EndinK N umber Becinninp Number Difference 2459 Ending N umber BeKinninfi Number Difference 2807 Ending Number BeKinninG Number Difference 2835 Ending N umber Bccrinninc Number Difference 2867 Endini? N umber BeErinninfi Number Difference TOTAL COUNTED TOTAL AMOUNT fp .05 DIME READINGS 3677 Ending N umber ! Beginnins Number Difference 3685 Ending N umber Beginnine Number Difference TOTAL COUNTED TOTAL AMOUNT fi> .10 PENNY READINGS 1163 Ending Number Beginnin I Number Difference 1664 Ending ^ Beginning Number Differenc 1688 Ending ^ umber Beginnin ^ Number Difference 1 TOTAL COUNTED TOTAL AMOUNT .01 i GRAND TOTAL FRONT AND BACK VIEWS OF RECEIPT SUMMARY FORM well-equipped shops. Metal tokens have been provided for the convenience of telegraph and telephone com- panies, department stores, and other organizations who prefer supplying transportation to their messenger boys and other traveling employees in some form other than money. The company is planning to increase its supply of tokens as it is felt that a number of employees in industrial plants would prefer to purchase a week's supply of transportation very much as they purchase a week's supply of flour or other provisions. At present the only paper tickets used on the city and suburban lines are those issued to company em- printed on the bottom end of the ordinary transfer and shows both destination and time. After passing the city fare limit, the conductor passes through the car supplying those passengers who entered the car within this limit with penny change to facilitate the payment of their zone fares. The conductor then moves his fare box to the front end of the car closing the rear entrance and exit doors. As the passengers leave the car those having entered while within the central city limits deposit 2 cents in the fare box, if the car is in the first zone, or 4 cents if in the second zone. These passengers who entered the car after it passed the city 618 Electric Railway Journal Vol. 54, No. IS fare limit return the zone fare receipt to the conductor. This prevents over-riding. Conductors are not permit- ted to handle fares, the passengers being expected to place the proper fare in the box. Each conductor when he enters the employ of the company is given $15 for change money. This he keeps as long as he is in the employ of the company. The men are expected to sup- ply themselves with penny change, and facilities are provided at the carhouses and ticket offices to assist them in doing this. For inbound passengers the fare collection is handled in a slightly different manner. The passenger upon entering the car pays his full fare to destination. For example, if he enters the car in the second zone and wishes to ride into the city proper, he deposits 9 cents in the fare box. Should he desire to ride only into the first zone, his deposit is 5 cents. Over-riding is prevented by the conduc- tor spotting the passen- gers who pay only 5 cents. This is not a difficult mat- ter, as very few passen- gers ride within outer zones only. Should a pas- senger wish a transfer, it is obtained when he boards the car and pays his fare. The only overlaps in the suburban system are those noted on the accompany- ing map. These overlaps permit rides through the towns of Wauwatosa and West Allis on 5-cent fares. To facilitate car loading at congested corners dur- ing the rush hours, the company employs ground conductors, or fare collec- tors. These men carry a fare box slung over their shoulder by means of a strap. They station themselves at the front doors of the cars and thus permit loading at both ends. As noted elsewhere, a different method is followed on the South Milwaukee suburban line. The reason for this is that this line serves a heavy traffic industrial district and passes through a densely populated for- eign district. Foreigners representing nearly all of the nationalities on the globe reside here. The line also includes a number of zones and passes through the town of St. Francis and the cities of Cudahy and South Milwaukee. In Cudahy are located the plants of the Federal Rubber Company, the Cudahy Packing Company, the Worthington Pump & Machinery Com- pany, the Ladish Drop Forge Company, the Helmholz Knitting Company, and the Froedtert Lumber Com- pany. In South Milwaukee the principal industrial plants are those of the Bucyrus Steam Shovel Company, the Stowell Manufacturing Company, the Badger Mal- leable Manufacturing Company, and Pfister & Vogel Leather Company. These companies employ about 15,- 000 people, of which more than 3000 use the South LOOKING EAST ON GRAND AVENUE FROM THIRD STREET MILWAUKEE, WIS. Milwaukee suburban line going to and from their work. Fare collection on this line is handled as follows: Upon entering the car an outbound passenger names his destination, the conductor gives him the necessary change, if change be necessary, and a fare receipt, the passenger depositing the fare in a locked fare box. On this line the Cleveland fare boxes are used. One of the fare receipts is here reproduced. It will be noted that the punch mark shows the point to which the fare was paid. The passenger retains this receipt until he leaves the car, at which time it is collected by the con- ductor. Over-riding is prevented by the conductor checking the receipt to see whether the punch mark agrees with the point at which the passenger leaves the car. Should a passenger not have a receipt he is required to pay full fare from the beginning of the run to the point in question. In case of dispute the con- ductor is instructed to col- lect the fare and refer the passenger to the office of the transportation de- partment at the Public Service Building in Mil- waukee. Fares are collected from inbound passengers in the same manner, except that upon reaching the city limit the conductor passes through the car and col- lects the fare receipts. This simplifies the collec- tion of fares from passen- gers entering the car within the city fare limits. Transfers are given upon request at the time the fare receipts are collected. Some idea of the density of the traffic on this line during rush hours can be gained from the fact that three-car trains are operated on five-minute headways from 5.55 a.m. to 6.20 p.m. between Cudahy and Milwaukee. The loading of indus- trial workers near one of the Cudahy plants is shown in an accompanying illustration on page 614. Types of Cars Used Since June, 1916, the zone system of suburban fares has been effective on three interurban lines which run through suburban zones. Single-truck cars are oper- ated on the Fox Point, Wanderers' Rest and Tippecanoe lines. Except during rush hours, and on Saturday aft- ernoons, Sundays and holidays, these cars are operated by one man, the traffic being very light. These single- truck cars weigh 10 tons, seat twenty-six passengers, have manually operated doors, and are arranged for double-end operation with front-door entrance. The motor cars ordinarily used on the South Mil- waukee line are of the company's standard interurban type. They weigh 65,000 lb. and seat sixty-four passen- gers. They are of the open-door type and are arranged for double-end operation, the passengers entering and ^ September 27, 1919 Electric Railway Journal 619 leaving through the rear car. At times a type of cen- ter-entrance car is used on this line. These cars are arranged for multiple-unit operation, weigh 43,000 lb., and seat fifty-six passengers. They were built in the company's Cold Spring shops in 1917. The cars used on the other suburban lines range in size from small louble truck cars to the center-entrance cars just men- tioned. Zone fares in Milwaukee, therefore, are being collected on cars varying greatly in size and type. Accounting Methods Fare receipts, transfer zone receipts and transfers are all handled in exactly the same manner. They are bundled separately by the conductor and wrapped with The Milwaukee Company Operates Its Cars in Trains conductor fills out a form which shows on the one side the number of passengers in the various zones. On the reverse side blanks are provided for reporting extra car mileage, trip number, leaving time, and data rela- tive to the number of transfers issued and collected. In case a passenger by mistake has dropped more than the required fare into the fare box, he is supplied by the conductor with a refund slip. This is refunded by the company upon presentation at the transportation department office in the Public Service Building in Mil- waukee. The reverse side of this slip is a receipt which the passenger signs upon receiving his refund. At the end of his tour of duty each conductor turns in his trip sheets and transfer zone receipts. The At top, a two-car train in fi'ont of tlie Public fciervice Building. Below, multiple unit train used on some of the suburban lines. what is called a transfer band, which is nothing but a manila sticker with a printed form, on one end to be filled in by the conductor for the purpose of identifi- cation. These are not placed in the fare box, but are turned in separately. On the South Milwaukee line employees' tickets are placed in the cash opening of the Cleveland fare box. On the other lines which em- ploy a fare box of the company's own design the tickets are placed in a small opening designed for this pur- pose. Cash and metal tokens are dropped into the main cash opening. When the zone system was first inaug- urated an overhead register was used in connection with the fare box. The overhead register was dispensed with several years ago, and the method now used for accounting is comparatively simple. For each trip the fare boxes are turned in at the end of a day's run by men assigned to that work at the carhouses. In the cash opening of each fare box is placed a slip to indicate the line on which the car was operated. No attempt is made to segregate the fare collections by cars or by conductors. From the carhouses the cash fare boxes are taken to the auditing department, where they are assembled by lines. The contents of all of the boxes for a given line are then dumped upon the hopper board of a coin counting machine. After the contents of the fare boxes have been run through the coin machine the dial records are recorded on a 3-in. x 5-in. card, which is also reproduced in an accompanying illus- tration. There is one of these cards for each line for each day's operation. 620 Electric Railway Journal Vol. 54, No. 13 The transfers, transfer zone receipts and South Mil- waukee line fare receipts are checked in order that some check on the conductors can be maintained. Results of the Zone System The effect of the application of any new fare system on the riding habit of the public and the revenues of the company is always a matter of great interest. The traffic on the Milwaukee suburban lines, however, has been so affected by the fluctuation in industrial condi- tions incident to the war that it is practically out of TABLE II-TRAFFIC STATISTICS OF MILWAUKEE SUBURBAN LINES Year 1913 1914 1915 1916 1917 1918 Number of revenue pas- s'l-ngers per year 3,513,691 4,256,232 4,400,700 4,889,378 5,149,217 5,244,313 Per cent.. . . 100 121 125 139 146 149 Number of revenue car- miles per year 759,190 833,366 772,181 810,672 850,892 845,153 Per cent .... 100 1 10 102 107 112 1 1 1 Number of revenue car- hours per year 73,053 75,516 73,188 76,982 79,678 78,645 Per cent. . . . 100 103 100 105 109 108 Revenue passengers per car-mile. 4 62 5 06 5 70 6.03 6.05 6.20 Revenue passengers per car-mile per cent ... 100 110 123 130 131 134 the question to draw any really trustworthy general conclusions from traffic and revenue statistics. Some of the traffic statistics are given in the Table II. It will be noted that the revenue passengers per car- mile have increased from 4.62 in 1914 to 6.20 in 1918. This represents a total increase of 34 per cent. The corresponding increase in total revenue passengers is 49 per cent. It seems impossible, however, to detei-mine the influence of the fare system upon these increases. Some idea of the magnitude of the zone traffic at present can be gained from Table III, which shows the passenger flow through the two zones of the North Milwaukee line. With the exception of the South Mii- TABLE III— TOTAL ZONE TRAFFIC NORTH MILWAUKEE LINE, APRIL, 1919 . First Zone Second Zone Outbound Inbound Outbound Inbound Number of passengers entering zone. 26,738 16,553 18,626 Number of passengers boarding car.. 4,341 12,947 195 16,675 Passenger flow 31,079 29,500 18,821 16,675 Number of passengers leaving car . . 12,453 3,966 18,821 122 waukee line, for which similar data are given in Table IV, this line carries heavier traffic than any of the other suburban lines. These tables show vei'y clearly the lightness of the local traffic in the zones as com- pared with the long haul traffic to the city proper. In any attempt to draw conclusions from the opera- tion of the Milwaukee zone system it must be borne in mind that in the inauguration of this system no great changes were made, or have been made since, in the limits covered by a single city fare. The zone system as applied affects the suburban and not the shorter-haul city rider. On all of the lines except the South Milwaukee and Fox Point lines the net result of the zone system has been a fare reduction, the amount of the reduction depending on whether one or two 2-cent zones replaced the old 5-cent zone. The 2-cent zone charge was a compromise between the figured cost of transportation, which was nearer 3 cents per mile, and the charge which in the opinion of the commission would increase the traffic within the zones. As has already been noted, there has been an increase in traffic since 1914 but the territory served is for the most part so sparsely populated that the increase in number of fares as yet has not been sufficient to make the suburban lines paying property from the investor's standpoint. In other respects the experience in Milwaukee with zone fares has been highly satisfactory. The old argu- ment that congestion is produced by the zone system has not been borne out in Milwaukee, as the lower rents and property values in the suburbs to which the total fare was increased, more than offset the higher fares. The matter of fare collection has not proved to be a difficult one. The method may sound somewhat com- plex to one familiar only with the straight 5-cent fare system, but the actual operation works out nicely as the bulk of the riders are those who live in the city and are familiar with the local transportation methods. That zone fares can be collected with speed and certainty under difficult operating conditions the satisfactory operation of the South Milwaukee line is convincing evidence. The inauguration of any new scheme, as for instance the .collection of fares by a different method, always causes more or less trouble at first. In time, however, the public becomes familiar with the opera- tion of the new plan and the trouble disappears. This has been the case in Milwaukee. When the zone fare system was first inaugurated, maps showing the fare limits were printed on posters, and considerable pub- licity was given to the method of collecting fares. As far as the company has been able to determine, the use of the zone system has in no way influenced the number of accidents. The method of accounting used involves no serious difficulties. As a matter of fact, the present method requires only about 50 per cent of the work required by the system formerly in use, which involved the overhead fare register, since trouble- some overages and shortages no longer occupy a great deal of time in checking up. One of the most important advantages of the zone system has been its flexibility as compared with the rigid flat-rate system. This flexibility is indicated in part by the fare history reviewed in earlier paragraphs of this article. So firmly convinced of the inherent merits of the zone system is the company that it hopes in time to be able to apply the system to the central zone which at present is too large to secure proper flexibility in the matter of fares. TABLE IV— TOTAL ZONE TRAFFIC, SOUTH MILWAUKEE LINE, APRIL, 1919 — FirstZon?^ — Second Zone ^ Third Zone Out In- Out- In- Out- In- bound bound bound bound bound bound 73,185 25,776 25,845 18,401 20,244 17,697 3,714 45,695 5,176 12,247 866 2,097 76,899 71,471 31,021 30,640 21,110 19,794 Number of passengers leaving car 51,054 4,679 10,777 4,872 1,240 1,393 Number of pass?ngers entering zone. . . Number of passengers boarding car Passenger flow. Fourth Zone — . . — Fifth Zone Out- •bound 19,870 370 20,240 3,889 In- bound 13,451 5,255 18,706 1,009 Out- bound 16,351 195 16,546 15,735 In- bound 759 13,077 13,836 385 Sixth Zone ^ Out- bound 811 14 825 825 In- bound 825 825 66 September 27, 1919 Electric Railway Journal 621 Zone System in Portland Maine Public Utilities Commission helps to solve fare problem — Special tickets used for collection purposes — System works satisfactorily on all types of cars THE Portland Railroad Com- pany, which is leased and op- erated by the Cumberland County Power & Light Company, connects Port- land (Me.) with the out- lying cities and towns of Saco, Old Orchard, Cape Elizabeth, Windham, Fal- mouth, Cumberland and Yarmouth. The system comprises slightly more than 100 miles of track. It is estimated that the population served, with the exception of the four summer months approxi- mates 100,000, but that during the months of June, July, August and September, due to the in- flux of vacationists from all parts of the country, the tributary population is increased to 175,000. Previous to August, 1918, when the Public Utilities Commission of Maine first authorized a change in fares, the rate of fare was based on the nickel as a unit with free transfers, with the exception of the lines extending to Old Orchard, Saco, Yarmouth, Westbrook, Riverton and Cape Elizabeth where the fares were in 5-cent in- crements, as a rule one for each of the towns traversed. On July 25, 1918, the commission authorized the estab- lishment of a zone system with a central area, compris- ing practically all of the built-up section of the city of Portland, and with mileage zones beyond. The rate of fare was 5 cents on three lines wholly within this central area, with a 1-cent charge for a transfer, while on all other routes nearly all of which extend beyond this area, the rate was 2 cents per zone, with a min- imum fare of 6 cents. Free transfers, however, were given upon request to other city cars. These rates were put into effect on Aug. 2, 1918. The increase in revenue derived from this change of fare was almost nothing, and after two months of operation the com- pany filed a new petition asking that the minimum fare on all 'lines, irrespective of whether they were within or without the central area, be made 6 cents. Something should be said relative to the publicity campaign planned and carried out for the purpose of acquainting the car-riders with the system of fares which the company desired to have established. The methods employed are probably unique in the annals of the electric railway industry in that other companies have never actually carried out the plan in all its details OVERLOOKING PORTLAND HARBOR as was done in Portland. In order that the car riders might become bet- ter acquainted with the officials of the company, its financial affairs, and the reason for increasing fares, an extensive edu- cational campaign was planned, and put into ef- fect. This plan called for the hiring of halls in va- rious communities, ex- tending invitations to the residents to come and talk over the affairs of ithe railway and for public spirited citizens of the communities involved to be the leaders of the meet- ings. Officials of the com- pany were in attendance and had full authority to talk on all subjects pertaining to the railway and also to grant any reasonable concessions in the way of im- provements in service that might be asked for by anyone in the audience. It was realized that in order for these public meetings to accomplish the desired results the same spirit of co-operation desired of the public should be shown by the railway employees, especially those on the cars. In order to secure this co-operation the com- pany held two meetings at the headquarters of the local union of the Amalgamated Association of Street & Elec- tric Railway Employees of America. These meetings were addressed by A. H. Ford, vice- president and general manager, who outlined his plan for community meetings, the need for more revenue and how the company was planning to obtain it. The need of co-operation from the men in putting the new fares into effect was pointed out, and every effort was made to have them feel that the campaign was as much for their benefit as for the benefit of the community and of the company; that without the co-operation of the men on the cars, the traveling public, and the city govern- ment, any increased rate of fare when put into effect would not produce the desired results. The second step in insuring the success of the plan was to secure proper publicity in the daily press. Space for paid advertisements was contracted for in each of the several papers, but in addition reading notices and reports of the meetings were desired. To secure these and to obtain further suggestions as to publicity, the newspaper men, not only the reporters, but in some cases the city editors, were gathered together and the matter fully discussed. As they were fully convinced of 622 ElectricRailwayJournal Vol. 54, No. 13 the needs of the company for increased revenue, the newspaper men readily agreed to co-operate in the undertaking to report each of the community meetings and, further, to give the subject the widest publicity possible. About ten community meetings were held. The company's representative, after being duly intro- duced at these meetings, discussed the need for in- creased revenue, the general plan of a zone system, the proposed zone limits as they affected the community in question, the method of fare collection, and brought out the fact that if this plan or schedule of fares did not bring forth the necessary revenue within a two- months trial period the company would be forced to ask Where possible, suggested changes were promptly adopted. It was this show of the company's attitude toward its patrons that made the people feel the com- pany wanted to do what was just and fair to the com- munity. After the usual hearing, the commission, in order to aid both the company and the community interested, held a meeting and dinner in connection with the Port- land Chamber of Commerce, at which the members of the city government and other prominent men of the city were invited. The purpose of this meeting was to discuss public utility affairs, and the importance of a street railway to the welfare of any community. The MAP SHOWING ROUTES AND LAYOUT OF ZONES IN PORTLAND AND VICINITY for another increase. To show that the company de- sired the full co-operation of all the communities served, the company held another series of meetings in the course of which the reasons for the deficit were outlined in detail so that everyone could satisfy himself as to the real need for higher fares. An opportunity to ask Questions and make suggestions for bettering the serv- ice was always given the audience. Throughout all of these meetings the interest taken by the public was manifest, and the spirit of criticism which it showed led the company to feel that its patrons were entirely in sympathy with its endeavors, and if the service wants were provided the public would pay its share of the transportation expenses. Much good, it was felt, was obtained from several of the criticisms of the ser\ice that were brought up at these meetings. commission at this meeting gave out the information that it was about to issue an order allowing an increase of fare to 6 cents on the lines of the Portland company, and asked that each and every one connected, not only with the city government but with the city's industries, do all that they could to further the welfare of the railway, for that without such co-operation the rail- way could not exist. Commission Orders Zone Fares While the company had petitioned for an increase in the minimum fare to 6 cents, the commission in its de- cisions of Jan. 7 and Feb. 3, 1919, felt that the best results would be obtained by an entirely new system of fares based solely on distance traveled. On March 2, 1919, the zone system of fares, which had been designed September 27, 1919 Electric Railway Journal 623 oy the raihoad company to accord with the above-men- cioned orders of the commission, was put into effect for a trial period in order to determine whether it would produce the necessary revenue. This plan was outlined in detail in the Electric Railway Journal, April 12, 1919, page 728, and inasmuch as it failed to produce sufficient revenue to pay the increased cost of op- eration it was changed to the present schedule on June 15, 1919. The present schedule of fares was presented to the commission for approval in a petition filed on May 26, 1919. This schedule, suggested by A. S. Richey of Wor- cester, Mass., was that the previous zone limits or transfer privileges, STANDARD CLOSED CAR AND CENTER ENTRANCE TRAILER ON WESTBROOK DIVISION three consecutive zones or less. The cash fare per zone, however, for each zone beyond those covered by the payment of the minimum fare is 3 cents for each zone or fraction thereof traveled. Coupon tickets can be pur- chased either from the company at its Monument Square waiting room and other regularly established agencies or from conduc- tors on the cars. For convenience in handling, the tickets come in pads of fifty with an agent's stub as the first leaf so that when a pad is given to a conductor, record can be kept by the issu- ing agent. The illustrations show the form of ticket good for five three-zone or minimum fare rides, sold for 35 cents giving a STANDARD TYPE OF PREPAYMENT CAR OPERATED ON UNION STATION KOUTES effective March 2, 1919, remain un- changed, but that the minimum cash fare be made 9 cents, or 3 cents a mile, with a reduced ticket rate of 7 cents or 2 J cents per mile, tickets to be sold in lots of five, or fifteen for 35 cents. The general layout of zones, the central area for transfers around Monu- ment Square, and the number of zones per route are all shovra in the accom- panying map. Zone limits are marked with distinctive black and white bands on the poles with the zone numbers stencilled at the top, as shown in the illustration. The central zone, in the downtown district where transfers are issued, has Monument Square as the center. The limits of this zone on the various lines are shown by the dotted lines on the map, and are the same as the outer limits of the first-fare zone from Monument Square, viz.. Union Station, junction of Congress and SAFETY CARS OPERATED ON SPRING STREET ROUTE IN PORTLAND fare of 7 cents ; the form of ticket good for fifteen single-zone rides, sold for 35 cents giving an average fare of 24 cents per zone; also the form of ticket good for six five-zone rides, sold for 70 cents. This ticket is sold only for the conven- ience of passengers who frequently ride through five zones. The minimum ticket fare for each continuous ride is one coupon from the 7-cent three-zone ticket or three coupons from the single- zone ticket. It is possible, however, for a passenger to use a 7-cent ticket as an initial fare and to pay cash at the rate of 3 cents per zone for all zones beyond those covered by the 7-cent ticket, or to use a fifteen-zone ticket, one coupon for each zone. School tickets in coupon strips as il- lustrated are sold only to the cities of Portland and Saco and the towns of Old Orchard, Scarborough and Falmouth, which in turn furnish them to pupils for St. John Streets; Falmouth Street, southerly end of transportation to and from school. In general the Tuykey's Bridge, and the Portland end of the new rate is 7 cents, less 334 per cent discount, each ticket bridge to South Portland. being good for a three-zone ride. Between Falmouth A cash fare of 9 cents entitles the passenger to ride and Yarmouth and between Falmouth and Portland STANDARD METHOD OF MARKING ZONE LIMITS 624 Electric Railway Journal Vol. 54, No. 13 a twenty-ride strip ticket is sold for $1.40. These tickets, however, are good for a five-zone ride. All tickets are of the same style except in color and the name of city or town. Transfer Practice in Portland The passenger who has paid a single minimum fare is entitled to ride through three full zones, and having ridden only a part of these on one car is entitled with- out payment of additional fare, to a transfer, which will enable him to complete the balance of his ride on a con- necting car. All inbound passengers paying fares to Monument Square are entitled under this rule to a transfer to any connecting car within the central zone described and bounded by the dotted line on the map. 44 45 42 41 40 39 J6 37 ',36 35 34 53 32 31 30 29 26 27 26 25 24 23 22 21 20 19 18 17 16 I 5 1 i ] j \Average Revenue per far-mjle AVv r'O 7 r\ es l \ Avp raae R rr/jf V ve te , per Car-fiour, \ — N / Revenue per h 1 JU/l / 1 — Car-hour, — Auq. to liar \ '/ t A- / A / K~ V / s: < ~ 1917 < in o z Q -) li E < E -) -) 1916 < o CURVES SHOWING RELATIONSHIP OF CAR-MILE AND CAR-HOUR EARNINGS AND EXPENSES UNDER VARIOUS RATES OF FARE The foi'm of transfer used, in addition to being punched for month, date, time, and destination, must be punched for the number of zones that the passenger is still en- titled to ride on the connecting car for the fare paid to the initial conductor. For example, a passenger boards a car at the Union Station (Zone 1) and pays his fare with a 7-cent ticket or 9 cents cash. The conductor, on request at the time of payment of fare, issues a three- zone transfer by punching the large figure three shown in the lower right-hand corner. If a passenger boards a car at or between Ligonia turnout and Union Station (Zone 2) the conductor punches out Zone 2, similarly, if a passenger boards a car within Zone 3, the conductor punches out Zone 1. If a passenger has ridden three full zones and desires to change at a junction point, which is also a zone limit, the conductor issues a transfer punched for month, date, time and "Zone 0." A transfer so punched shows the accepting conductor that the passenger has paid at least the minimum fare on a previous car, and is therefore entitled to ride with him for the. sum of the zone fares traveled, that is, if only one zone is desired this can be obtained on payment of 3 cents or one coupon from the 2i-cent green ticket. Transfers, however, are not is- sued to allow a passenger to return to a point on an- other route near where he originally boarded the car, nor are they issued to another line which passes over the same route or by the point where the passenger boarded the car. Transfers to be valid must be pre- sented on the first car passing the transfer point designated after the time canceled and then only by the per- son to whom issued. It is a rule of the company to allow free transporta- tion to its employees, and effective on Aug. 1, 1919, a card form of pass good for 40 rides superseded the 100-ride coupon book which heretofore had been used. Two colors of passes are used to prevent manipulation, viz., gray for the men, white for the women em- ployed. Conductors are required to punch out a block number for each fare collection made, using the regular ticket punch. In order to renew the pass it is necessary to return what is left of the pass previously issued. Passes are renewed only by one person at the central office of the company. Conductors on going to work are furnished with a supply of the different kinds of commutation tickets estimated to last for the day on the line on which he works. A ledger account is kept with each man, and to facilitates mat- ters in handling these accounts an audi- tor's stub is attached to each pad of fifty tickets, which is signed by the conductor and sent by the disbursing agent to the auditing department for billing. If the conductor has to obtain additional tickets during the day they are charged to him in the same manner. At the end of the day's work the conductor makes up his day card record and settles with the receiver at the car house for the number of tickets sold. His ledger account is likewise credited in accordance with the day card record. In this way the daily balance shoviTi by the conductor's ledger account must agree with the conductor's day card record. For canceling these coupon commutation tickets conductors carry a special punch which will clip off a quarter inch square with one operation. These punches are left-handed in that the right-hand side of the punch is blocked in order to force the conductor to clip off the numbers of the tickets in their numerical order. This punch is generally carried on a string so - --P 1- u >v g X n < E ^ T 1919 September 27, 1919 Electric Railway Journal 625 as to be readily available, for the conductor has to use it practically every time a fare is collected. The company operates cars of five distinct types: safety cars on the Spring Street route ; prepayment type cars w^ith folding steps and doors on the Union Station- Munjoy Hill and the Union Station-Grand Trunk sta- tion routes; ordinary closed cars; center-entrance trail cars to Westbrook; cross-bench open cars on practically all routes vs^ith the exception of the Westbrook line. All cars carry either a double-face register at one end or two single registers, one at each end. On routes entirely within the central zone such as Spring Street, Union Station-Munjoy Hill, or Union Station-Grand Trunk Station the cash registers have a value of 9 cents, while on all other lines the value is 3 cents. Ticket registers are the same on all cars and are used to register stubs of commutation tickets col- lected by the conductors when last used for a ride; school tickets; and coupons from Boston & Maine and Grand Trunk railroad tickets that are good for fare across the city of Portland. Trans- fers and complimentary tickets are not regis- tered, but are accounted for on the day card each half trip and inserted in a trip envelope properly marked on its face. At the end of each round trip the envelope is deposited in a box in the car provided for the purpose. All revenue tickets and commutation stubs rung up on the ticket register are likewise included in this envelope. The conductor also keeps a record on his day card of the tickets, transfers, free tickets, etc., inserted in the envelope, so that when he makes up his report at the end of the day his totr on the day card must agree with the number of tickets deposited in the envelope. In. general with the exception of four routes which are operated entirely on the prepayment plan, fares are collected pay- leave on outbound trips from Monument Square and prepayment on inbound trips. At Monument Square, and also at Union Station, the company maintains ticket sellers on the streets, whose duty it is to announce cars and sell commutation tickets to pas- sengers before they board the cars. This is done with the idea of relieving the conductor from extra duty in connection with fare collection, and it has been found that by so doing considerable time is saved in getting the cars started, especially at Union Station where they are operated on the prepayment plan. Collection Method Depends on Route and Type of Car Cross-bench open cars which are operated to some ex- tent on several lines have received special study in rela- tion to fare collection. In general the routes are divided for fare collection purposes so that conductors make col- lections every three or six-fare zones. On the Old Orchard and Saco cross-bench open cars, a ticket seller is put on with the conductor as the car leaves the heavy traffic terminal to sell tickets to all passengers. Inas- much as it takes a 35-cent ticket to go to either of these places, each person must of necessity purchase a ticket. Experience with the use of these ticket sellers has shown that schedules can be maintained better as the motorman is not required to slow down in order to allow the conductor time to collect fares before points are reached where a large number of passengers de- sire to leave the car. Observations indicate that the speed with which fares are collected varies largely with the conductor, as some are able to work a fifteen cross- bench open car in three to four minutes, while others take as much as eight or ten minutes. The plan of collection followed on the various routes extending beyond the central dotted area on the map is as follows : Portland-Yarmouth, (eleven zones) — On closed cars, outbound passengers pay as they leave to Martin's Point Bridge, three zones. Beyond this point an inside collection to destination is made. Inbound passengers pay to destination on boarding the car. On open cars rrmto 2 ^ ■,i;mj-pc°j|!ga P"eil^°d tc joe I 6e I eg I 1 9Z | sa \ tz\ tz\ zz\ u\qz\ 6i | 81 r.r.>>r,li;Sg"o,,Jn| sij^.J ;. in U. I u l o. I 6 i s 1 1 1 9 I ; f V I i gF1oC|gt'|OE[9t'[0C|Sp[0t:|St'|0g|gt'|Og|St'|0tj9t'[0E|5t'|0E[9t-|0Elct'|OE|9t' ZONES nnorsun cmnn raws i lisii en, < PORTLAND RAILROAD CO.) 5-RlDE IJCKET 35 CENTS EACH COUPON ATTAOhIE^ . GOOD FOR ONE CONTINUOUS AIDE OF THREE FARE ZONES OR I.e8.8 Void wh«n coupon* Br» dstachod. Subject to oondltloni on oTTier ildo. 2402 IctimuiacmrowiiituiBin, (PORTLAND RAILROAD CO.) ; PORTLAND Railroad 15 MNE RIDE TICKET 35 CENTS llO'.n oJ Fjifmurh S(wclil School Ticket iGoifl Hf Oft fj., igi UUtn Vli whIU t"n U Void when coupons are detached. B 90351 l'6-3a «^ ' ZZ tz f3 93 1 9Z 1 iZ 8Z 1 63 1 0£ 1 IE ZZ EE tE SE lo o M (D ; M a l»M CUMBERLAND CDUNIY POWER t LIGHT CO. EMPLOYE'S COUPON PASS 00 Oc 9> O an4 9CO CHICOPEE SPRINOFICLD CITT LlNll jB ^ not luatrXMaLC ^ f*l ^^V-r^J SPaiNGFIUD STREET^RY. JIO..,^ CHlCOPEE SPRINCFiELD CITV IiNE| SPHIN6MELD STREET JJ jItt-sCr) CHICOPEE 6PH1NCftE(.0 CITT LlNE| WRlNeFIELO^STREET M.CO.. rctm 201-S ■lELO^STREET^Ry. j;0.,_ iWCmE™*-!* (CMOop«»l ondfr E SPRINGFIELD CITT LIMI X lEEl irLC Al ' -s ItlO STI C «,i pif(CF Ai I -e ■lELD sn '.nVOHf A. E.Si KiM F SPRINGFItlO STREET RV. CO., SViiIHGFIELD STREET RY, CO-, CHfCOPEE.Si KiM FiELO CITV U'-^E^ i"i''SiiSt*l''.°>""K"'i"am„ ' • ••IC ""OJ^ Au 'iSfcs Q13Ij9NTHdS* t»«0» I B-W 3N0Z U' luiOd t "'aV l33ais '013i'd9NTirdS * ro«u 310-6 ET Ry. CO. A|amn Bridge ^ Ant Po^ li 0£ A3uel«ai3 IMfM ei 1 az n ♦ CIS *")|-0'M) •ms uauiAl »"™ K £2 zz E DZ iT SI ll 91 il H £1 UIU|A-| A4J»qn V iniilfaiio 1 ll« i M.*i»0 t iniiiwtto 33(I03IH 3 luojj It lucjj 7 eduo •Hfl •MM 190 Zl tl 01 6 8 z 9 S t z 1 ♦ 1 ♦ 1 * < 1 T<»S taw w»w » 'ins «1«K ii«is »i™r«« Mur •jd» •«H •Q»J ♦ _ IS 9N IX UMJJ ll N0iiyNus3a C 33.oo.Ho>aoOMN319 0 9 9NIM ON 3inoa HOaj Vd v31Hd ANVdW.tJ liXDIl ;Cul?) CM nk|ioi IMlQiis XS3M Hj.nos HJ.UON 9NI09 UVO 01 auvHouo NVIQNI Nl jH»3inw»uif3 QMS °M Nl 33d03IH3 Nl o 1ST CO » tnuisatjo li it Idas 'Iny <|nr »uaf JCM ■uer ^l-9l-*l-Cl-6-a8-V8 ^ -9 -s-af ^vfr-e-z-i OM saxnoa >J ■eeB* Coupons Tom in uparatstimlvpe for lach day canl FACE OF ENVELOPE FOR TURN-IN OF TICKETS COLLECTED M 2266 I2.IiS-10M.O'Mi Fare Box Identification Slip Time Taken A.M. P.M. Dale names and addresses of witnesses, makes out a written report of the incident and forwards it, together with the transfer in dispute, to the superintendent. Transfers which are collected under such conditions are not registered. All cars are equipped with two overhead registers one for cash and the other for tickets and transfers. When cars carry fare boxes, overhead cash registers are not used. On cars not equipped with fare boxes, and on open cars, conductors collect the fares by hand in each zone. The second collection in either direction is started immediately after passing the first fare limit. On pre- payment cars the first collection in both directions is made when the passenger boards the car. The second collection, if there is one, is made as the passenger leaves the car. On cars of this type it is custom- ary for passengers to enter by the front door, and leave by the rear door when the car is in a zone where fares are paid on leaving. In this way the con- ductor is enabled to determine the amount of the fare to be collected at the point where the passenger leaves the car. It was found, after several weeks use of the 7i- and 9-7-cent reduced rate tickets, that car riders had begun ■"-o abuse the tick- et privilege in that they were obtaining a ride giving up only one coupon of a ticket, in other words were rid- ing at half the reduced rate ticket fare. Two steps were taken to over- come this : First a change in the method of handling the ticket collection ; second, a change on Nov. 25, 1918, in the design of the ticket to that illustrated on page 630. Ticket Collection Practice When a passenger boards a car on a line not requir- ing a transfer, the conductor takes the two coupons, folds them on the perforation and cancels both coupons with one operation of his hand punch. If a passenger is riding from Zone A the conductor punches in the space marked "From Zone A," but if riding from the outer zones he punches somewhere in the body of the coupon, being careful to keep the punch away from the space marked "From Zone A." The proper coupon is retained and rung up on the ticket and transfer register for the zone in which the passenger boards the car, the other coupon is returned to the passenger for the second collection. In the second collection only coupons having the conductor's own punch mark are accepted unless he has been relieved en route by another conductor. On a line requiring transfers, the conductor takes both ticket coupons, punches them in regular manner, retains the coupon for the zone in which the passenger boards and issues a transfer punched in accordance with the Was Tell-Tale In Good Order when Fare Box was Received? Cond. Name No.. THIS SLIP MUST BE FILLED IN BY CONDUCTOR AND DEPOSITED IN CASH BOX WHEN HE TAKES CAR. LOCKED FARE BOX IDENTIFICATION SLIP September 27, 1919 Electric Railway Journal 633 instructions. In addition two punch marks are put in the space at the top of the transfer where the route number is printed. This indicates to the conductor col- lecting the transfer that the passenger is riding on a reduced rate ticket. When the passenger presents this transfer for fare the conductor requests the second zone coupon of the reduced rate ticket, and registers it on the ticket and transfer register, allowing the passenger to retain the transfer as an identification check. The transfer is collected and registered on the second collec- tion in the place of the usually accepted second coupon ticket. Conductors refuse to accept punched ticket-coupons for fare unless accompanied by a transfer punched in boxes. In case the car becomes disabled on the road, and it is necessary to change off, fare boxes are shifted to the new car. On setback trips when crews change to regular time and regular car the fare boxes are also changed. So far as the passenger is concerned closed cars are operated pay-as-you-enter outbound from Springfield, and pay-as-you-leave when inbound from Holyoke, and all passengers riding on these cars are required to pay for two zones ; that is, 12 cents. Conductors when taking charge of cars either at the car house or on the road fill out and deposit in their fare box an identification slip, showing the date, con- ductor's number, and name, line, etc. Notation is also Springfield Street Railway Co. FOR TRANSFERS COLLECTED ONLY TO BE TURNED IN DAILY. Date „ Run No No. Transfers Collected Conductor's Name Badge No. M 1621 7-19.50M-O'M Springfielti Street Railway Co. CASH AND TRANSFERS Run No. Oate * Name Xo Cash Received $ Receiver. TRANSFERS Transfers Received Re Conductors will make out slip for each Day Card This slip to be signed by each receiver and deposited in box provided for that purpose. u. ie0O.3-is-eoM.M. c Springfield Street Railway Co. CMly for transfers NOT ISSUED. Date- Conductor's Name Badge No. Ending No. Commencing No. Total Not Is! TRANSFEF I REGISTEF IS Car Taken M. Car Left - TA. " " M. " " M. Total Time Worked Specify Terminal Points and exact time of Arrival and Departure CAR NO. Motor, man's Na FARES ON REGISTERS AT TURNING POINTS 1 - 5 * S £ 1 FREE PASSES TRANSFERS. MILEAGE Cash Fares Total Cash Faros Reglstored Ticket & Trartsfer Total Tickets A Tninders Registered 1 u Isbnl Reading STARTING POINT 1 Timo TERMINUS TlTO Col. 1 Col. 3rd Col. Isl CoL 2ad CoL 3rd Col. 1 1 ^ 1 1 1 ^ 1 1 1 - 11 1 1 1 1 ! 1 1 i 12 i 1 t ; 1 'i ■ TOTAL OF ALL COLUMS I i 1 .Cash Fares ,@ .06,. $ FACE OF DAY CARD USED ON NON-PREPAYMENT CARS its estimates by 25 per cent and in order to comply with the award the company again petitioned for an in- crease in fare. On Sept. 16, 1918, the 5-cent zone fares in the Springfield division were increased to 6 cents and the reduced-rate tickets to points in the outer zone, from 6S to 74 cents and from 8 J to 9: cents. This increase, it was estimated, would increase the pas- senger revenue $208,839, or a little less than 10 per cent. Actual results from operation, however, show that the passenger revenue increased 31 per cent in April, 1919, over April, 1918, the last month of the universal 5-cent fare in the Springfield division, while the number of revenue zone fares increased only 9.5 per cent and trans- fer passengers decreased 26 per cent. Comparing the first two months operation of the 5- cent zones with the corresponding months of the follow- ing year with 6-cent zones, shows that a 20 per cent increase in zone fares produced an increase of only 12.8 per cent in passenger revenue, a falling off in zone Due to a further increase of 32.5 per cent in wages granted in August, 1919, by Henry B. Endicott to all employees the company has been forced to file a new petition with the Public Service Commission for addi- tional increases in rates to make up the increased cost of service. The company contemplates keeping the zone system and establishing a 7-cent cash fare with a 6J-cent ticket and a special 10-cent rate between Spring- field and Chicopee. These rates, however, are subject to the approval of the Public Service Commission. On the whole it can be said that the two schedules of zone fares tried have increased the revenue over the previous schedule. It is felt, however, that the reduced rate tickets and transfers offer large opportunity for improper use. The company by agreement with its em- ployees is forced to register each fare collected and inasmuch as all ticket and transfer fares, whether valued or not, are rung up on the same register, it is difficult properly to check the work performed by the conductors September 27, 1919 Electric Railway Journal 637 Zone-Mile System of the Public Service Railway Full details are given of how the zones are laid out, how the fares are collected, and how the trainmen and public were educated to the new plan COURT HOUSE IN NEWARK, N. J. N SUNDAY, Sept. 14. 1919. the new zone fare Lplan of the Public Service Railway, authorized 'by the Public Utility Commissioners of New Jersey, went into effect. The plan provides a fare of 3 cents for the initial zone on any car and 2 cents thereafter for each zone or fraction thereof traversed, and with 5 cent zones on three routes, operat- ing over heavy grades where pleasure resorts are located at short distances from terminals. School tickets are sold at the same rate and in the same places as heretofore. The first day's operation proved successful, except that on lines where the travel was heavy some loss in schedule was caused by both the public and the train- men not being entirely familiar with or accustomed to the working of the system. However, in the opinion of the management, no fundamental difficulties devel- oped and the existing causes of friction will disappear after the public and men become more fully versed in the operation. The real test of the system came on the first Monday morning rush, which was aggravated to some extent by inclement weather. In anticipation of delay in the operation of the pay-leave plan, ticket sellers handling full fare tickets, which were sold singly or in strips of ten, were assigned to board cars terminating at heavy loading points not having post-payment areas. Material advantages were gained from this innovation, for at points not covered by ticket sellers there was some delay in unloading and the schedules became considerably dis- arranged, due to passengers not knowing the fare and the slowness of conductors in making calculations. Ex- cept for violence in the southern division, which started on Monday morning, by shipyard employees wrecking cars so as to evade payment of fare, things went as planned. On Tuesday the violence in Southern New Jersey continued and although confined to Camden and vicinity became so general that the trainmen of that division refused to operate the cars and on Wednesday it was necessary to enlist the aid of the authorities to patrol the streets over which the cars operated. From the results obtained in Northern Jersey, how- ever, the company is enthusiastic over its ultimate out- come and predicts that within a very short time the new- ness will wear off and the plan will then be much liked by all its patrons. At the time of going to press the car riders have become sufficiently acquainted with the plan so that crews are able to maintain their schedules with- out much difficulty, and the company looks forward to successful operation of the plan. The Public Service Railway is one of the largest electric railway properties in the United States and operates in over 140 different municipalities having a combined population of slightly over 2,000,000 people. The company for convenience of operation has divided the property into six divisions. To care for the traffic originating on the system about 1400 cars are operated daily from twenty-eight different car houses, requiring a force of 4100 trainmen. Zero or starting points were taken at Edgewater terminal; Hudson Place terminal; Exchange Place ter- minal ; Federal Street Ferry terminal ; Main and Market Sts., Paterson; Railroad Arch, Elizabeth; Albany and George Sts., New Brunswick, or at West Front and Somerset Sts., Plainfield, points where a very large pro- 638 Electric Railway Journal Vol. 54, No. 13 portion of the traffic either originates or terminates. In starting from these zero points, zones of approxi- mately 1 mile in length were laid out as nearly as pos- sible, departure from this distance being made only in cases whereby a reasonable exception would bring the location of the zone point at a natural traffic dividing line, such as an intersection with another route, or a point of heavy loading due to the existence of traffic controlling industries, a railroad station or the like. In general, a tolerance of 500 ft. was adopted in either direction. Wherever possible, former transfer junction points and other heavy loading points were fixed as zone limits. In cases where cars operate between common points but via different routes, the number of zones on each route has been made the same, holding, how- ever, to the standard length on the shorter of the two routes. All routes jointly using the same track have been zoned so that the limits are common to all routes passing that point, this becomes necessary not alone as a protection to the company's patrons, but as an point or in fact at similar points in other parts of the system, gets out at the near side and that those who remain are going to points considerably beyond. Education of Car Riders and Trainmen Immediately after the promulgation of the order of the commissioners on Aug. 1, 1919, giving both a defi- nite rate and effective date, steps were taken to utilize all possible means of publicity and to that end plans were formulated for newspaper advertisements, sup- plemented by posters and leaflets in the cars, dashers on the fronts of the car vestibules, as well as moving pictures in the various theatres on the system. Newspaper advertisements had been carried in all daily and weekly publications throughout the entire sys- tem since the company had submitted its report to the Commissioners to place before the people the merits and necessity of the zone system and to show that it was by far the most equitable basis for fares, due to the fact that it required a passenger to pay only for the RMS WILL BOARD CARS AT FRONT END m LEAVE AT REAR END mm THE m m EiMve Sept 14 mmm m. 14 PAYAS-YOU-LEAVE UNM THE ZiE FLAN INSTEAD OF Fay-As-YoU'Enter GET ZONE CHECK FROM MOTORMAN GIVE TO CONDUCTOR WHI^ FATING FARE PAY-AS-YOU-LEAVE POSTERS CARRIED IN CAR VESTIBULES PRIOR TO INAUGURATION OF ZONE-FARE PLAN ENTER FRONT EXIT REAR PAY v'i^ LEAVE aid to the company in the proper col- lection and registration of fares. In all 510 zones were laid out. All zone limit poles are marked by a yellow band on the pole at the right hand side of roadway. On the side of the pole is stencilled the approaching zone number in 6-in. black letters. Where vision of the poles is obscured by trees, etc., a sign is suspended from the trolley span wire. On joint routes the number of the zone for each routs car dasher appears on a bracket hung from the face of the pole. It is a rule that passengers riding beyond the zone point must pay for that zone, but at junc- tion points such as Broad and Market Sts., Newark, where the zone limit has been extended in all cases for alighting passengers to the far side of the crossing, and the reverse is true for boarding passengers who are allowed to get on at the near side of the crossing. The company points out that this is not an arbitrary ruling but is determined by statistics which show that practically every passenger wishing to alight at this ride taken. A full account of the pub- licity carried on by the company was given in Ele:tric Railway Journal for Sept. 6, 1919, page 484. After the Utility Board had rendered its decision, the newspaper advertise- ments were utilized to explain the pro- posed methods of boarding and leav- ing cars, and how passengers should pay their fare and to pointing out that the new plan of boarding and leaving cars was but a change in habit and a reversal of former pro- cedure. The company plans to continue this class of advertising as long as the necessity for public infor- mation through the press continues. More than 3,000,000 leaflets, separated as to routes and bearing the zone points were printed and were put in the "Take one" boxes in all the cars, commenc- ing Sept. 1, 1919. Signs were also displayed to sup- plement the signs on the boxes, reading, "Zone limit leaflets in boxes: Take one.". Plans are for three weeks' distribution of these leaflets, and it hoped that September 27, 1919 Electric Railway Journal 639 in that time all passengers riding regularly on the various routes will become familar with the zone loca- tions and the fares between their regular points of travel. Commencing Aug. 31, a series of posters was carried in all the car vestibules, explaining the procedure to be followed in boarding and alighting from cars after the zone fare plan becomes effective. These posters were changed weekly and on the effective day the third poster of the series was displayed. The poster will be carried for some time to come on all the cars. In addition to these posters all cars have, since the day the zone , fares be- came effective, carried a large dasher sign on each end, printed in type suf- ficiently large to be easily read by people on the sidewalk. During the week prior to the inauguration of the plan, moving pictures of "Taking a Trolley Ride" were displayed in some ninety moving picture houses throughout the system. These pictures give in complete detail SHOWING SIGNS ON FRONT DASHER OF CAR In the early part of August a general meeting of division superintendents, supervisors, carhouse foremen, inspectors and those who had been selected as instructors was held at the assembly hall in the Public Service Building, Newark, where the plans for instructing the rank and file of the men on the cars as to the fare collection methods on the various routes was explained in detail. This plan was to equip eight or nine cars with the actual fare collection devices and send them around to the various carhouses in charge of some member of the general instructing force. At each of these car- houses all the trainmen were called to the car, and the fare collection scheme was thoroughly explained in detail and demonstrated, so that each man whether motor- man or conductor had in- dividual instruction as to his duties. After this demonstration all train- men were given a special questionnaire on the zone system which they were required to fill out and turn in to the depot it VIEW OF FRONT VESTIBULE — TRAY FOR HOLDING CASH REGISTER IS NORMALLY ON REAR PLATFORM FRONT ENTRANCE SHOWING ZONE INDICATOR FROM STREET ARRANGEMENT OF REAR VESTIBULE SHOWING CASH REGISTER AND ZONE INDICATOR all the enjoyments of taking a trolley-ride, showing in sequence of happening how a passenger should conduct himself from the time of boarding by the front end of the car and receiving zone check from the motorman, entering and taking his seat as near the rear of the car as possible, signaling for his stop at his destination, immediately paying the conductor the fare as shown on the reverse side by the zone check and then, when the car is at his destination, being ready to leave without further delay as soon as the conductor opens the rear door. instructor, and in case the answers were not given cor- rectly it was his duty to take the man in hand and see that he was thoroughly acquainted with the neces- sary details. The company took every means possible to insure that a man did not go to work after the zone system became effective unless he had been properly instructed and could answer the questionnaire. All new men were put through the regular instruction schools maintained at various points. Two printed booklets were issued to all concerned — the first of which was in the early part of August 640 Electric Railway Journal Vol. 54, No. 18 ZONE FARE PLAN PUBLIC SERVICE RAILWAY EFFECTIVE SEPTEMBER 14, 1919. Board Car at Fronl End— Leave at Rear End ivided ,nlo Zone Mil 1 End only, cm moloraian -i Zone wind, car is boaided. Each l.ne ,s d.vided rnio Z< Pa»engcrs %.dl boaid car al Each pa«engcr will receive 1 Tickel will, number of ione ,n Number o( zone in which _ will be plainly ihown on front platform. To leave car passengers will go to rear platform. Signal for stop in usual way. Passengers will surrender numbered Zone TicLel to conductor when leaving car. The fare is 3 cents for any part of first zone and 2 cents for each additional zone, or pai! tliereof. in which a continuous ride is lalieh. Tlie numher of Zone in which p.issenger leaves car will be plainly shown on rear platform. Fares will be collccled as passenger leaves car. according to length of ride as shown by Zone Tickel presented by passenger. Rates of fare will be conspicuously posted. The Co-operation of the riding public is earnestly solicited in Ihe carrying oul of the Zone Plan ip order to provide quick and safe scivicc BOARD CAR AT FRONT END HOLD VOUR ZONi: TICKET HAND TO CONDUCTOR ON LEAVING PAY AS YOU LEAVE REAR E.ND (SEE OT IDE) Fare Zone Limits — ON — WEST SIDE LINE ip Ave. Terminal Montgomery St. and ] (Summit Station) Bergen Ave. ' Monteomery St. and Communipaw ar Bergen Ave. We.t Side Av ommunipaw and End of Line. We.l Side Ave.. Culver Ave. (Trippers) Sip Ave. Terminal Montgomery St. and 1 (Summit Station) Bergen Ave. ' Montgomery St. and Communipaw and o Bergen Ave. West Side Aves. Comrr unipaw and Hac kensaok Rive- & ■> West Side Ave.. Lincoln H ghwa, Hack, nsack River & End of Line. Lincoln Highway ( Fed, Ship. Co. ) ^ PUBLIC SERVICE RAILWAY READ CAREFULLY The zone-mile system of fare collection will be installed on all lines on Sunday, September 14, 1919.' The full co-opcration of all trainmen is necessary in order that the new system may be operated smoolhly and efficiently Under the zone-mile system, each passenger will pay a fare proportionate to the distance he hns traveled. All lines have been divided into zones. These zones are about one mile m length. The points .nt which zones begin are marked by yellow bands painted on poles. On the yellow band the number of the zone is shown. At points where more than one line of cars is operated, this number will appear on a bracket hung from the pole, the number of the ione for each line being shown. You should immediately learn the zone points on your line. Remember that the num- ber you see on the yellow pole, as you approach the zone point, is the number of the zone you arc about to enter, and not the one through which the car is traveling Zone indicator cards which show the zone m which the car is traveling and also the rates of fare from all other zones, will be placed m all cars. One will be on the front platform ^for the information of the motormcn and boarding passengers. Another will be on the rear platform, for the use of the conductor and of passengers paying fares. All the niotorman is required to do is to turn the zone indicator at each zone point and hand a ticket to each passenger as he boards the car As the car arrive* al a new 'oiie point, the motornian will change his ?one indicator so that It slwws the zone uumbtT of the zone he is entering, as shown on the pole at the zone point Motorman will change his zone indicator before any passengers board the car at tlic new zone point Under the new system, all passengers will board cars by the front platform As the passengers board the car. the molor- man will hand them each a ticket which will show the number of the zone lu which they board. The form of ticket that is to be used IS such that it will be easy for the ntotormaii to issue the proper tickets to passengers, and as all passengers board while' the ^ar is stop- ped, this issuing of tickets will not interfere in ZONE LEAFLETS PUT IN "TAKE ONE" BOXES IN CARS PAGES FROM PRELIMINARY FOLDER ISSUED TO TRAINMEN entitled "Facts About the Zone System for Motormen and Conductors" and covered in a general way what was explained more in detail in an appendix to the company's rule book which was given out a few days prior to the inauguration of the plan. Fac-simile pages of both these booklets are reproduced herewith to show the manner in which they were prepared. The fir.«t booklet mentioned had an added feature of two blank pages that proved of material value for making notes. These pages were headed "Memorandum — Note any questions that may occur to you and. ask your super- visor." The Car Equipment Adopted At the start two general plans of fare collection were effective. On 650 cars equipped with class 700 cash registers, two of the overhead registers formerly used were locked, and the cash register located in approximately the space occupied by the fare box. No change was made in the other cars as they carried ZONE INDICATOR. Upon boarding car for his run, con- ductor must sec that zone indicator is on rear platform and that it is p.-opcrly set to indicate the number of the zone the car is about to enter. As the car leaves each new zone point, .and AFTER all passengers have alighted who wish to leave the car in the zone in which the car has just traveled, conductor must change zone indicator to show the num- ber of the zone the car has just ent>:red as indicated on the polo at the zone point Conductor must be sure to see that indicator at all times shows zone Ml which car is trav-eling. COLLECTION OF FARES. .\ passenger on leaving car at his destination, passes to the rear door and presents to the conductor the zone check handed him by the motorman. The num- ber at the torn end of the zone check indicates the zone in which passenger boarded car Conductor lifts this check and collects from th« passenger proper fare for the-iiuniber of zones in which he has traveled as indicated clearly on the schedule of fares shown on the zone indicator and on the zone check as well. If car is equipped with fare box. pas- senger deposits fare in fare bo\ as at present. .^s conductor collects fares, he pl.-ces zone check received, (and also pass or ticket if such is presented) upon the file provided for that purpose which is close to his register or fare box. .^s car leaves zone point, conductor removes from the file the lone checks and tickets 14 collected in the zone just concluded and places them in an envelope furnished which bears a number corresponding to the number of the zone just passed through. He seals the envelope as soon as he leaves the zone point and marks' on the outside of envelope the number of zone checks and tickets enclosed therein. If no zone checks or tickets are collected in a zone, conductor seals en\clopc for that zone as he leaves zone point, and marks envelope with a zero to indicate no checks. or tickets collected. IT IS IMPORl .\NT THAT CONDUC- TORS FOLLOW THIS PROCEDURE KXACTLY REGISTRATION OF FARES. Conductors register each fare sepa- rately on the cash register, if car is equipped with cash register. If not, pas- senger deposits fare in fare box and fares arc registered in accordance with pro- cedure heretofore generallv effective. EACH FARE MUST BE REGIS- TERED SEPARATELY. For instance, if one passenger pays for two or more persons. Siy fifteen. cents for three five- cent fares, these must be registered on cash register, not altogether as fifteen cents but three times on the five cent key On cars equipped with cash register, all tickets and passes must be registered on cash register by pressing the key marlccd "Ticket," Where fare box is used, tickets and passes will be registered as hereto- fore. LOST ZONE CHECKS. If passenger f.,ils to present zone check, claiming thai he has lost same SAMPLE PAGES FROM APPENDIX TO RULE BOOK COVERING DETAILS OF ZONE SYSTEM Johnson registering fare boxes and two or three over- head registers depending on whether or not they operated into either postpayment or prepayment ter- minals. The company however plans in the next thirty or forty days to change over and equip all cars operating on routes having more than three zones with cash registers. This will make about 1300 cars so equipped. The company's plans contemplate the continued use of fare boxes on all cars operating on short lines of three zones or less. One man cars and cars operated only in a single zone are operated as prepayment cars. General Method of Fare Collection All cars with the exception of two or three short- routes, entirely within a single zone, are operated under the pay-leave plan. Under this plan all passengers must board by the front and leave by the rear door. On boarding, the motorman issues a zone check torn from a pad in a holder at a point to correspond with the zone number in which the passenger boarded. A zone indicator, illustrated, is displayed at the left of the motorman to show the boarding passenger the number of the zone in which he boarded the car. This number must agree with that shown at the left end of the check he receives from the motorman. Zone checks are issued to all passengers on boarding except employees, policemen and firemen riding free in uniform or children under seven years of age when accompanied by an adult, irrespective of whether such passenger is paying cash fare or riding on a pass. Tin boxes are supplied by the company to carry the supply of zone checks. These are marked by route and run number and are kept ready for service in special racks in each carhouse. The motorman is held responsible for all zone checks issued to him, and in case one is mutilated by mistake when it is being torn off it must be retained and turned in along with the stubs and unused portion of pad. Motormen are not allowed to tear off more checks for a zone than they need for issuance in that zone. Two checks of different color and a holder for each September- 27, 1919 Electric Railway Journal 641 are issued to each motorman for use on his route. One color denotes outbound trips and the other is used only on inbound trips. On an average a motorman during the day's work of nine hours will issue approximately 750 checks. The number at the left hand end of the check indicates the zone in which the passenger boards the car. As a convenience to passengers in learning the fares, and to enable them to have the exact fare ready when leaving the car, thereby avoiding delay not only to themselves but to following fellow passengers, there is set up in tabular form on the reverse side of the zone check the fare to all other zones on the same route to which it is possible for passengers to ride. For example, suppose a passenger boarded a car in zone 4 on an out- bound trip and wanted to ride to zone 9. The fare would be found in the column headed "From zone 4 to" where, opposite "Zone 9" the fare would be found to be 13 cents. Passengers must retain the zone checks issued to Pi them. If the checks are thrown away or lost en route the conductor is obliged to charge the passenger on leaving the car for the entire number of zones from the beginning of the line to the zone where the pas- senger alights. Should a car terminate in a postpay- ment area a passenger failing to present a zone check is required to pay the full fare for the longest line enter- ing that terminal. Special zone checks are issued for each route regu- larly operated and also for trippers and night cars that travel over parts of more than one route. In all, some 300 different forms of zone checks were printed. On the platforms of each car are located zone indi- cators placed so they can be readily seen by passengers and also conveniently turned by the motormen when entering a zone. On double-end cars two indicators are located in each vestibule, only one of which however is I- in use at any one time. Single end cars have only one in each end. One indicator is hung at the left of the motorman from the top of the window sash and the other is just back of the conductor's position, being on the inside of the folding door next to the bulk head. Trainmen are required to turn one indicator in each end of the car in proceeding from one zone into another. The motorman turns his indicator at a zone limit prior to the time he opens the door to allow passengers to board, while the conductor at a zone limit allows all passengers to leave prior to turning the one in the rear vestibule. The zone indicator is so constructed that on the bot- tom portion is given a zone number and a table showing the fares from that zone to any other zone en route. Company employees are allowed free transportation over the entire system. In order that the number of persons riding on passes may be accurately determined, books of coupon passes are issued to each employee. An employee on presenting these coupons for a ride must fill them out, so as to show the ride taken and hand them to the conductor along with the zone check when he leaves the car. Similar coupon books except for the color are issued to police inspectors, and for oth- ers entitled to free transportation. Checks and Tickets Used Under the "three and two" plan, the use of trans- fers is eliminated entirely. There are however instances when continuous trip checks of some character must be issued to allow a passenger to take the ride for which he pays. This is required by the ruling of the Commission that continuous trip checks must still be is- sued at some twenty-four places under the zone system just as they were formerly issued under the old fare schedule. AT LEFT, METHOD OF MARKING ZONE POLES WHERE ONLY ONE ROUTE IS CONCERNED. AT RIGHT, METHOD OF MARKING POLES AT JUNCTION OF BROAD AND MARKET STREETS. NEWARK, WHERE MORE THAN ONE ROUTE IS CONCERNED 642 Electric Railway Journal Vol 54, No. 13 This form of ticket is shown as No. 1 on page 645 and, as will be noticed, must be punched by conductor, on issuance, for the day of the month and time. An emergency ticket for use only in case of break- downs or interruption in service is also used. Under no other conditions will this ticket be issued, and in order to have it accepted, the conductor on the second car must know that an emergency existed and that this form of ticket had been issued. This ticket is of a different color than the "continuous trip" ticket and also about one inch longer so that it is readily distinguishable for collection purposes. When this ticket is issued, the passenger pays the first conductor the proper fare to the zone limit and the conductor issues a check punched for the month, day, time, direction and zone for which fare has been paid. This form of ticket is issued to passengers when a car is turned back before completing its trip and passengers are compelled to change to an- other car. In such cases the conductor collects all fares of passengers to the end of the zone in which the car 4c SCHOOL TICKET Line Date... 4. . SchooL., Zone Good !■ Zone Off K^l w»l>in the School Zont 04586 ^^>rr<^ boldcj boArds »n.] 5 CAtd Uluit corrcil'ond Sboi Pr&sldpfit PUBLIC SERVICE RAILWAY CO. SCHOOL TICKET LINE DAT! SCHOOL ZONE ON ZONE orr THE HOLDER OF THIS TICKET H»VIN TO THE DESTINATION NAMED ON HOLDCR'SIDENTIFICATION CARU, VINO PAID rARt.» OrriTLtO TO RIDE 092826 ^^^^ HOUR AM 1234 6 6 789 10 1112 HOUR P.M.I 2 3 4- S 6 7 8 9 10 11 12 10 _2e_ so IN OUT 2 101826 3ni 4 1321 14221 1523 162431 ftB KAR «PR ■A) iuiiE lULV AUC SEPI 30 0" 8 fc{29 AT TOP, FORM OF SCHOOL TICKET USED ON TWO CARS; AT BOTTOM, FORM OF SCHOOL TICKET ISSUED BY CONDUCTOR, FOR- MERLY COVERED BY TRANSFER is turning back (lifting zone checks from passengers as usual) and issuing to all passengers on payment of fare an emergency ticket, punched to show the zone in which the turnback occurs. When he boards the change- off car, the passenger secures a new zone check from the motorman on that car and on leaving he presents both the new zone ticket and proper fare for all zones beyond that punched on emergency ticket. If a passenger in leaving the first car presents a pay ticket which entitles him to ride beyond the limit of the zone in which the car is turned back, the pay ticket is accepted and an emergency ticket issued punched for the zone number to which the passenger is entitled to ride on his ticket. The conductor on the second car in such cases, lifts the zone check and emergency ticket but collects no additional fare, providing the passenger leaves the car in the zone punched on the emergency ticket. Where crews change cars and passengers also change along with the crew, the conductor is held re- sponsible for collecting the fares of all passengers who do not board the second car. If this change takes place at a carhouse the station master makes note on a special form of the number of passengers transferred. Pay-tickets, so-called, are sold in strips of ten as a convenience to patrons by the company at all Public Service commercial offices, carhouses, and terminals and CAR RECORD Date Route.. EfuUnc Startini.. Dili. . Endlns OIIIci tU* Endinc SlartinK DIR ZONE 8 ZONES - LINE Or No Half Trip No - Run No Lefl. OUT BOUND Arrived M CAB RECORD CARD CARRIED BY ALL CARS in some cases at department stores at 3 cents, 5 cents, 7 cents, 9 cents, etc., up to 15 cents per ticket. Each ticket is good only for a ride of the value represented by the ticket. Passengers at first were not allowed to use these tickets in part payment of fare nor to use one ticket to pay two fares, but after three days' opera- tion this rule was changed to allow conductors to accept such tickets in part payment of fare, the company be- lieving that it had no legal right to refuse to accept tickets and money if presented. It is hoped that these tickets will enable the regular riders to save time in paying fare as the conduc- tors will be relieved of making change. The commission's decision that school tickets should be still sold at the same rate and good be- tween the former points made neces- sary still another form of ticket. Exist- ing tickets are re- deemable at their face value. The new form of ticket re- quires that the pupil carry and show, when he presents coupons, a n identification card duly filled out, as illustrated. They must also fill out the coupons giving the name of line, date, name of school attended, zones "on" and "off" and sign their name. In some cases pupils had formerly received transfers to reach their destinations and had paid one cent for each transfer. Under the present school ticket rate COLLEaED IN THIS ZONE' iPty Ticktli ZONE School " CHECKS free " c. r.. * Collected 1 Will'ot \ Ceih Emergency C.T'-. CollecleJ oiih Caih Pass No — Motoroiui —Badge Nc ZONE ENVELOPES USED BY CONDUCTORS September 27, ldl9 Electri® Railway Journal 643 this same charge is retained and on tickets permitting a change in cars an extra cent is charged for each coupon. On request pupils presenting this form of ticket can receive a school second-car ticket which will be good on the transfer car to the destination named on the holder's identification card. This ticket must also be filled out by the pupil. Work of the Conductor A conductor on going to work obtains from the sta- tion office his day card, continuous trip tickets, three pads of fifty emergency tickets, school continuation tickets and a sufficient supply to last the day of trip as each fare must be registered separately. If the car is equipped with a fare box, the passenger is expected to deposit his exact fare in the fare box and the con- ductor to register each fare deposited on the overhead register. Tickets are also registered on this same register. . As the conductor collects fares, he places the zone checks, passes and tickets collected in each zone on a filing spindle attached to the side of the cash register or the fare box. When the car completes that zone the conductor removes from the spindle all checks and tickets thereon and inserts them in the envelope marked for that zone. He seals the envelope and marks on its face, in the space provided, the contents. If no llnoMl by PUBLIC SERVICE RAILWAY C0.| 'Al'm 3c SCHOOL TICKET Line C^cwm-wvlA Date Sampler School. Zone Oa _ - Zone Off Good fw on* (I) nde to or from >cho<>l on s ilngle car wiiltinthe School Zone ii which the ho\da t>o«i J« thotar. Go-xJ only during kH.k,! Irrm between 8 a, tn an< ' S p. m. Pupil't •itinature un [iclcel and idcnt.&caUori card mu* t conctpond, bl.o. c*/d whan pa/mu (are. NOT GOOD ON SATURDAYS, SUNDAYS OR HOLIDAYS No. 04593 t^^^f^-^ PUBLIC SERVICE RAILWAY CO. JAN. FEB. MAR. APR. MAY JUNE JULY AUG 1 2 3 <) 5 6 7 8 9 10 Jl 17 18 19 20 21 22 23 24 25 Emjfjencyjjcl; \cVjiOV. DE( 15 1 ' 29 30 31 This rmrr^incy lirkcl ctrl.f.ts ihal !...arrt Ka^fc^^ zone l.iro Co end of zone nunclied in the nnrtr^in licrcof and is crililicd lo c^i^inur Irip on coimcc'ing car upon p.iyins? f.irc for Hd<)ilional znncs. 1 fiis ticket is issued due to emtfEency only, and is R.,i..l under no other circumJlances, when . y the prop, r zone, direction, day and hour j:^ ^^1-^ HOUR A.M. I 2 3 4 5 6 7 8 9 10 1 1 12 Ihour RM.1 Z 3 4 5 6 7 8 9 10 11 12 IN OUT 10 13 16 1 1 14 17 12 15 §4t oil' ft NO. 1. CONTINUOUS TRIP TICKET NO. 2. GENERAL FORM OF SINGLE-ZONE SCHOOL TICKET NO. 3. GENERAL FORM OF FREE TRANSPORTATION NO. 4. EMERGENCY TICKET NO. 5. FORM OF FULL FARE OR PAY-TICKET envelopes in which to place the zone checks and tickets collected in each zone. A tin box is provided for hold- ing the envelopes, etc., and is marked for his line and run number. The zone envelopes are sewed at the bottom into sets, each set including one envelope bearing the zone num- ber in each half trip. Thus on an eight-zone route a set consists of eight envelopes numbered 1 to 8. Passengers on leaving the car do so by the rear door and pay their fare to the conductor, depending on the ^one check surrendered and the zone in which the car happens to be when the passenger alights, who regis- ters the fare of each passenger on the cash register only. The bunching of amounts collected consecutively from .several passengers on the cash register is not allowed, zone checks or tickets are collected in a particular zone the conductor simply seals up the envelope and marks on its face "zero" to show that nothing was collected. Variation in Methods of Collecting On the routes terminating at heavy unloading points such as Broad and Market Streets, Newark, or the H. & M. tube station at Park Place, especially where there ar^^ no terminal facilities, special ticket sellers board all cars at the commencement of the last zone and sell to pas- sengers a ticket covering their fare to the terminal in accordance with the zone check held. In other words, in order to speed up the unloading of passengers at heavy junction points, it was found necessary to help out the conductor, due to the fact that many of the pas- 644 Electric Railway' Journal Vol. 54, No. 13 sengers did not have the exact fare, and consequently held up other passengers when leaving the car. Pay-Enter Terminals Made Pay-Leave The company has for some time maintained at heavy loading points prepayment areas to increase the terminal capacity. Under the zone plan with pay-leave operation these areas have been converted into post-payment areas and a sufficient number of turnstiles and pay booths in- stalled to care for handling the traffic. Postpayment areas are located at the Public Service terminal in New- ark, Hudson Place terminal in Jersey City, Edgewater Ferry terminal. Summit Terminal, Submarine Boat Cor- the day are certified by the station master. In the first column the conductor posts the "taken" and "left" read- ing of the "total-adding counter" under the lid of the register, which shows the total amount of money regis- tered. In the second column is posted a similar reading of the "passenger (customer) counter" which shows the number of registrations of passengers carried during the trip, run or day, as the case may be. In the third column of the car record is posted the "taken" and "left" reading of the so-called special transaction counters which are now known as "ticket counters." In the fourth column is posted the "totalizer" reading of the overhead register when used to show the num.- CONOUCTOR'S DAILY REPORT Train No Jlun No lnC«.olTfoubUwiihPowcT.V„tTr.(k«Bto^HE street railway industry in the United I States has been unique in its merchandising I methods in that it has offered its wares at a p fixed price without regard for the scope of individual sales. The only extended adoption of similar m-ethods is found in our postal service, but in recent years the universal flat postal rate has been limited to very light-weight matter. Furthermore, the business methods of the Post Office Department have never been seriously considered as a model for any sound commer- cial enterprise. A flat street car fare was not wholy illogical in the early days of the industry. The distances between homes and business or industrial centers were short, and it seemed to make little difference whether passengers rode all the way between these terminals or not. With the growth of our cities, with more and more widely separated industrial developments, there came of neces- sity a corresponding extension of car lines, a lengthen- ing of the average passenger ride, and a still greater expansion of transfer privileges. This evolution, to- gether with refinements in service and equipment, paving and other municipal burdens, was so gradual that the industry failed fully to realize the resulting inadequacy and illogical character of the conventional nickel fare until the present period of war disturbances and prices made such realization universally inevitable. The belated efforts of the railways to secure added revenue to take care of increasing costs are recorded on the current pages of history. A feeling exists in the minds of a number of people, within as well as outside of the industry, that the railways have not yet applied the most effective remedies in their efforts to secure necessary increased revenues. To the extent that this critical attitude is the result of an intelligent study of the effects of fare increases upon revenues and traffic, it should have the careful attention of railway executives. A brief his- torical summary of experiences with various fare in- creases, typical of the kinds so far m.ade, may throw some light upon the shortcomings of the past and suggest the direction in which improvements should be sought in the future. It is not surprising that the first move in the program for increased revenue was a straight increase in the flat fare. The cost of all commodities and labor had gone up. If, with the reduced purchasing power of money, it required 8 cents to buy what formerly cost 5 cents, and if incomes had so increased as to make the 8 cents equally available, the increased flat fare seemed quite as logical as the old 5-cent fare, and it .should not have involved permanent loss in traffic. Furthermore, the flat fare has been one of our cherished national institutions and we have boasted of its effect in distributing population through large suburban areas. While this claim is by no means without founda- tion, it must be remembered that our own cities contain the highest population density of the world, and that fundamental economic laws tend to equalize living costs, so that where transportation costs are high, rents and other factors will be low. The revenues resulting from higher flat fares have 648 Electric Railway Journal September 27, 1919 so far been disappointing to a material extent. With only a 1-cent increase, theoretically yielding a 20 per cent increase in revenue, the actual increases have aver- aged little more than half that amount except in quite large cities. With greater increases in fare the traffic losses have been proportionately larger and, the losses being in short riders, the unit cost of carrying the remaining passengers has increased. With increasing actual as well as unit costs, successive fare increases, even to double the original rate, have been necessary in some cases to cover the full cost of service. This means a very large though not proportional loss in traffic and inconvenience to many former patrons. The reasons for the large traffic losses are not clear. They appear to be more psychological than economic. Many cases still exist where wages or salaries have not been advanced in proportion to the cost of living, but in others the advances have been greater and general equalization is ultimately to be expected. The practice of many politicians of vehemently opposing needed fare increases and consistently stirring up public resentment against utility corporations has had an im- portant effect, harmful to communities as well as utilities. There is no reason why these and other less- important causes of traffic losses should not in time lose a large part of their effect. In the meantime the losses and inconvenience, for which the public are to a large extent responsible, remain an unceitain and dis- turbing factor. In a number of large cities and mixed urban and interurban territories the zone system of fares has been adopted. The economic soundness of a tariff based on distance is not seriously questioned except as to the disturbance in real estate values and other living con- ditions which follow the substitution of a zone system for a flat fare. Our experience so far with zone fares in urban and suburban service has not been wholly suc- cessful. In several cases they have been abandoned after a not very extended trial. There are reasons for thinking that in most such cases the original zone schedules were not properly designed or were based on inconclusive data or were rendered inadequate by increasing costs. The zone system itself has apparently not been primarily responsible for its failures but rather the conditions of its application. In other cases where the application has been more carefully worked out the whole system has been a demonstrated success. A suitable zone fare collection and accounting system of general applicability has apparently not yet been perfected and its lack has had much to do with past failures. The results of the novel system devised by the Public Service Railway of New Jersey will be watched with much hopeful interest. To the extent that the zone fare difficulties lie in the machinery of application rather than in the system itself, there is every reason to suppose that inventive genius will not fail in a reasonably prompt and satisfactory solution. Higher Fares for Casual Riders Other recent fare systems have sought to avoid the annoyance of odd change for increased urban fares by the combination of a comparatively high cash fare, usually 10 cents, with a lower ticket rate, the cash fares making up whatever deficiency may exist in the ticket rate. This system is not entirely new, although in the past it was generally used to give a ticket fare some- v/hat less than the prevailing 5-cent cash fare. As it has been common practice with odd cash fare rates to minimize the annoyance of odd change by the sale of tickets or metal tokens at full price or an approximation thereto, it is evident that another prin- ciple is involved in the system just described in which the cash fare is materially higher than the ticket fare. The principle is that of a higher fare for an infrequent patron than for a regular one. That it may be de- serving of more than passing attention is indicated by suggestions from several sources that this principle might be more specifically and widely applied to street railway service. It is at once apparent that if two tickets are sold for 15 cents where the cash fare is 10 cents, as has been done or proposed in several cities, only an occa- sional stranger or other very infrequent rider will pay the cash farQ. A resident who is only a casual rider would usually buy tickets. In order to force the casual rider to pay the higher fare intended for him it would be necessary to sell tickets only in considerably larger numbers, say twelve for 90 cents, this number to be carefully adjusted in each city so that the poor but regular rider would not find them beyond his means to an unnecessary extent. This practice would not differ essentially from that of the steam railroads which sell twelve-ride suburban tickets at about one-half the normal cash fare. All such practice is, however, a makeshift or compromise rather than a definite applica- tion of a principle. If a more definite application is theoretically possible and might have practical advan- tages it should be given careful attention, particularly at this time when the whole question of fares is so unsettled. Railway and Central Station Rate Problems Compared Successful precedents involving conditions in some degree comparable should always be helpful in the solu- tion of new problems. In this case we may gain useful suggestions, without going far afield, from the central station industry. This industry is somewhat older than the electric railway and has maintained, particularly in recent years, a higher degree of prosperity. Gen- erally speaking, the central stations started with fixed rates per unit of service and continued them for a term of years covering a very considerable portion of their whole history. The leaders of the industry were not satisfied with its development under these condi- tions. Much desirable business could not be secured because the rate schedules were not suitable. A careful study of rate theories and structures was made by ex- perts; in fact, such studies are still actively continued by a national organization. It became early apparent in these rate investigations that discrimination was being practiced between customers, that some were pay- ing less than cost, others were paying more, and a large volume of profitable possible business was lost because of inequitable rates. New schedules of the so-called "demand" form were September 27, 1919 Electric Railway Journal 649 developed under which extended users paid less per unit than the limited users. The initial rate, for what may be called casual use, was the same for all customers, but for excess use a much lower rate was offered. This form of charge is not essentially different in its effect from the fare schedule already discussed having a com- bination of high-cash fare for casual riders and low- ticket fare for frequent riders. The demand electric rate served a very useful purpose in developing busi- ness and it still retains a prominent place in the sched- ules of progressive companies. It has complications which have restricted its use, particularly for small business of fairly uniform characteristics to which class rates may be applied. Furthermore, it is to a consider- able extent a compromise in that it does not accurately represent the cost of service. For this reason it has failed to reach a volume of large business which the central stations coveted. Resort was finally had to a still more complicated rate, devised years before by Hopkinson, which could be made to conform closely to costs of the service and to vary with operating conditions encountered in competitive isolated plants. This so-called "readiness-to-serve" rate has brought a large amount of otherwise unobtained business to the central stations and has con- tributed in very large measure to their success. The "Readiness-to-Serve" Charge in Fares If the readiness-to-serve form of rate is of such usefulness to central stations, may it not also find some place in electric railway fare schedules? Its fundamental dem- onstrated advantage to the utility is that an enrolled customer is en- couraged to make liberal specific uses of service because of low direct cost. Surely if by some such means the use of street cars can be made an inexpensive habit for those whose need of transportation is reasonably frequent, it should re- ceive most serious consideration. There are wide differences between central station service and transportation by street cars, and many obvious objections will of course be raised to a readi- ness-to-serve fare schedule. They include its general complications, the periodical payment of a compara- tively large fixed charge at a railway office or agency, the difficulty of distinguishing passengers who are subscribers to the readiness-to-serve plan from the casual riders (which in reality involves a plan to prevent loaning or transferring subscribers' identification cards), the difficulty of checking conductor's fare registrations, and others which would doubtless disclose themselves through an intimate study or trial of the plan. mittedly serious, can be successfully overcome, the practical workings of the plan may be further consid- ered. Some discussion of the subject and specific sug- gestions have already appeared in recent issues of Electric Railway Journal. They do not, however, conform fully to the principles applied in central sta- tion rates of the same form. These rates involve the determination of the investment involved in each unit of customer's demand, the fixed charges thereon and other costs varying with the customers demand, also the costs varying with the units of energy furnished. The rate is therefore a combination of two factors, one a function of the facilities used by or reserved for each customer (kilowatts), the other based upon the cost of the service actually used (kilowatt-hours). Readiness-to-Serve Change Analyzed A determination of analagous charges entering into a readiness-to-serve fare schedule would involve the investment in railway facilities per unit of passenger carrying capacity, the fixed charges thereon and other costs independ- ent of the extent of actual use. Supplementing this would be a charge, based on cost, for the pas- senger mile or passenger haul. The latter charge would probably be so comparatively small that a mileage charge would be an unnecessary refinement for city service. Actual calculations in any specific case would involve numerous com- plications and approximations. The investment in or value of the prop- erty would be determinable without serious difficulty. With the return to investors, taxes and provision for depreciation there should be in- cluded a material portion of main- tenance costs and other routine ex- penses of operation, possibly amounting to 10 per cent of the total operating expense, to arrive at the costs which would continue regardless of the amount of service oft'ered. Under average ordinary conditions considerably less than one-half the facilities offered by street railways are utilized, measured by the ratio of seat-miles to passenger-miles. If this condition is in- herent in the nature of the business, it would be logical to include not less than one-half the variable expenses of operation among the stand-by costs and this has been done in recent careful analyses of service costs. If the normal investment in a street railway is five times its annual revenue, not less than 50 per cent of this revenue will be required for charges independent of the service rendered and, as stated above, at least one-half the balance may also be considered as applicable to stand-by costs. It therefore appears that less than one-fourth of the revenues derived from passenger serv- ice are directly assignable to the passenger haul, the L. R. NAsn Assuming for the moment that these objections, ad- balance being largely independent of the actual traffic. 650 Electric Railway Journal Vol. 54, No. 13 Under conditions permitting- a profitable 5-cent fare, only about 1 cent would be paid for service actually used, the balance being wholly for readiness to serve. It follows that a passenger whose riding was an exact average of all passengers could logically enjoy a certain number of additional rides at one cent each without loss to the railway. With the old uniform 5-cent fare, if this average passenger takes an additional ride he contributes 4 cents toward the cost of carrying the casual riders. The foregoing analysis is very general and throws no light on the necessary passenger stand-by charge per year or per month to supplement the low haulage fare indicated. To determine this charge it is neces- sary to divide the total annual stand-by costs by a figure representing the passenger capacity of the sys- tem. This might be the maximum number of seats normally available or this number increased by a stand- ing factor, or still further allowance might be made for the diversity which doubtless exists to an unknown extent and which is an important factor in similar central station rate calculations. Figuring a "Readiness-to-Serve" Schedule Some typical figures may here be of assistance to illustrate the essential calculations and the limitations on their accuracy. These figures do not apply to any specific railway but are representative of moderate-sized systems not overburdened with paving or other special construction requirements. The investment in such a system will be not less than $1,000 per seat of total passenger car equipment. Allowing for equipment necessarily out of service for repairs or inspection, and for a conventional number of standing passengers, it will be found that the annual fixed charges for return, depreciation and taxes amount to about $100 per annum per unit of passenger carrying capacity of available equipment. This equipment is usually suflScient to ac- commodate at any one time only about one-fifteenth of the total population in the area served. If every pei'son in the served area used the cars at some time arid all subscribed to the readiness-to-serve fare system, the subscription per person, to make up $100 per year per unit of capacity, wouid be a little over 50 cents per month. But there are many people to whom street cars are accessible who never use them. There are no statis- tics to indicate the proportion of tributary population which never rides but it is quite large. It is probable that when it has been excluded from the present calcu- lations the monthly subscription to the readiness-to- serve fare system for charges on the investment by the entire balance would be not less than one dollar. With large and expensively constructed systems with a pro- portionately large non-riding population, the readiness- to-serve subscription might be m.uch higher although greater density of service would tend to offset an in- crease. The monthly charge so far considered does not cover the entire readiness-to-serve cost, as it does not include that part of operating expenses which are in- dependent of actual traffic. If allowance is made for this additional element of cost, the total charge vv'ill be increased by about 50 per cent, miaking it some- where near $1.50 per month for systems of moderate size and possibly twice as much for our largest surface railways. The $1.50 charge would be equivalent to about 3 cents per ride for a person who rode twice on each working day. Experimental Data on Fares Are Needed If, as has been assumed, the direct cost of the passenger haul is 1 cent per mile, the cost for a normal, average haul would be in the neighborhood of 3 cents. If the readiness-to-serve charge for the aver- age rider is added to this, we have 6 cents or more as the total average charge for a ride. This is not far from the present actual cost in many of the smaller cities. In the large cities, which have longer hauls and larger unit investments, both factors in the charge 5 10 1 1 1 I ^■-$/.O0P 'PLUS5t 'M_ Y" ^'"^ i^P^ PfRR 0 1. 2 J Average 4 Rides ) 6 7 per Day a ? COST OF A RIDE UNDER TYPICAL READINESS-TO-SERVE FARE SCHEDULES would be higher and their sum might easily reach the 7 cents, 8 cents or more which is found by experience to be the actual cost. The uncertainty existing in the readiness-to-serve charge calculations, as above illustrated, is so great as to make the problem for the present largely one of experimental determination, complicated by the effect of the casual and indifferent riders who would pay the arbitrary alternative higher cash fare which might not fully cover the cost of their service The uncertainties mentioned, the rather high stand- by charge involved, the small change required for the actual cost of the passenger haul, the convenience of a 5-cent fare, the general need of a charge of more than 5 cents to cover the full cost of service, all suggest the compromise ready-to-serve schedule which has been proposed, of a 5-cent cash payment for the haul plus a monthly readiness charge adjusted from time to time to make up the deficit in total service cost. The initial risk in establishing such a system would be compara- tively small and a payment of the order of a dollar-per- month readiness charge would not be unduly burden- some to the average rider. If such a system was successfully established and resulted in a definite traffic stimulus, it might be clearly desirable to take at least one more step toward a true readiness-to-serve schedule, namely, a ticket fare op- tional with the 5 cents cash, at a rate of six for 25 September 27, 1919 Electric Railway i o (j r n a l 651 cents or four for 15 cents, plus a readiness charge more nearly approaching the readiness cost, to make up the balance of the full service cost. If changes in the direction of a lower charge for the haul continued to stimulate traffic, they might be extended indefinitely or until the increase in rush-hour traffic required an unprofitable added investment in equipment not other- wise used. In any case the alternative full cash fare should be not less than 10 cents. This amount would probably not cover the cost of very infrequent rides but the deficits would not be appreciable when spread over the remaining business, and the inexpediency of a pos- sible prohibitive charge to cover actual cost would be avoided A diagram is shown herewith more clearly to illus- trate the workings of readiness-to-serve schedules. The two curves included in the diagram show the cost of a ride for a wide range of daily use under monthly and haul charges which represent the extremes beyond which it probably would not be expedient to go in actual use. The curves show equal cost at fifty rides per month, and the lines are broken for costs in excess of 10 cents on the assumption that an alternative cash fare would then be effective. If either of these curves represents actual costs with any approach to accuracy, it is quite clear that the very casual rider is an un- profitable one at any obtainable rate of fare. Fare Collection a Serious Problem An obvious problem in any such fare system is that of identifying subscribing passengers. The writer does not share in the opinion that it would not be a serious difficulty. Identification has been attempted in connec- tion with transfers but without sufficient success to warrant extended use. Close, extended scrutiny of identification cards is not practicable in connection with expeditious fare collections. A miniature photograph attached to the card, such as required on some railroad commutation tickets, would be effective but unduly ex- pensive and otherwise objectionable. However, it may not be at all impossible to devise some system or combination of sizes, colors, notches, perforations, etc., to accomplish the necessary result. It is not entirely clear without experimental data that full prevention of transfer of cards would be necessary. If a subscriber to the readiness-to-serve system who had paid to have certain facilities available for his use saw fit to loan them to a friend, the railway might thereby gain a passenger who would otherwise walk, and the subscriber himself could not use the loaned facilities until his card had bee^ returned. But, even if a noticeable increase in traffic resulted from failure fully to restrict the use of cards to their original purchasers, it does not follow that it would be equitable or that revenues would be similarly increased if the charge for the card was fixed, as assumed, on the basis of individual use. If, on the other hand, the cards were issued on a good-for-bearer basis, there might be a further stimulus to traffic in certain directions, but the charge for such a card would necessarily be considerably higher than for an individual card to offset the reduction in number issued, and this higher charge might be prohibitive for a large class of riders who would not find the transferable feature of any advantage to themselves. A possible compromise in the form of a family ticket suggests itself with a monthly rate between that of individual and unrestricted tickets. The rate would necessarily approach that for unre- stricted tickets because identification would be impos- sible. The problem of registration and accounting for fares under this system should not involve insurmount- able difficulties if that of identification were successfully solved. The Casual Versus the Regular Rider Even if the railways should be able effectively to solve the difiSculties in connection with a readiness-to- serve form of fare schedule and the system was accept- able to the riding public as a whole, it should not have indorsement unless it squares with sound economic principles, conforming to "cost of service" rather than "what the traffic will bear." The basic question is as to whether it costs more to haul the casual rider than the regular rider. Casual riders may be divided into two classes as to whether their movements from place to place, regardless of the means, are casual or regular. The latter groups may ordinarily walk or use auto- mobiles, resorting to the cars only in unpleasant weather or under other unfavorable conditions. They are more apt to ride during rush hours than otherwise. The former group, including shoppers, strangeis. amuse- ment seekers, etc., may ride at any time but probably much more in off-peak than rush hours. The point may be raised that any casual riding in off-peak hours re- quires no additional investment in facilities and therefore costs less than the regular rush-hour riding. The facts are that, while certain investment is used only during rush hours the balance is used both in these hours when the traffic density is at its maximum and in the off-peak hours when the load factor is com- paratively quite low. The charges on this continu- ously used investment should properly be spread over the entire traffic which it handles, and the cost per passenger would in equity be highest during the hours of lightest travel. Except on small systems the facilities furnished are adjusted through headway changes to meet expected travel. Normal rush-hour travel is fairly uniform, while at other hours, when the casual ridot: is more in evidence, there is more fluctuation and a lower load factor. In other words, the casuals make less use of the service furnished for them than do the regulars, this being true of the casuals as a group regardless of the diversity in individual riding. It necessarily follows that to the extent that casual riding leads to low load factors it also necessitates higher cost both for invest- ment charges and operation. If diversity is ignored and the casual rider is considered as an individual rather than part of a group, his responsibility for costs would appear much greater. Complicated Fares May Have an Educational Value With respect to the second group of irregular car riders, those who ordinarily use other means of travel, it may be stated that they are not only largely rush- hour riders but also there is comparatively little divers- Electric Railway Journal Vol. 54, No. 13 ity in their riding because of the similarity in their motives or needs for car service. They therefore impose a doubly added demand for facilities which are not otherwise needed, or they impose added burdens upon regular facilities and inconvenience and discom- fort upon the riders who regularly use and pay for these facilities. In either case the justice of a higher charge for such use of street railway service cannot be questioned. A charge on the basis of "all the traffic will bear" would naturally be favored by both railway officials and their regular patrons for those casual riders who ordinarily and preferably use automobiles. It appears from the above reasoning that a higher fare for all casual riders is justifiable. The electric railway fare problem of the past was primarily one of expediency and simplicity. In the very early years the promise of liberal profits made refine- ments seem unnecessary. In the later years, when rail- way executives realized such profits were dreams rather than reality, the public had come to regard the fixed flat fare as an inalienable right. The eradication of this idea is essential to the life of the industry. It may be brought about through systematic publicity regard- ing railway finances by which the public will become familiar with their complicated character and through service-at-cost franchises or other modern methods of regulation under which fares are systematically ad- justed to cost. The closer the adjustment, the greater will be the departure from the rigid simplicity of the past. Other classes of public service have successfully handled constantly increasing complications in their rate structures. It is not improbable that the complica- tions themselves and occasional minor adjustments therein have aided in establishing confidence in the justice of the rates as a whole. The suggestion is made that in some of the various service-at-cost franchises which will doubtless be negotiated in the near future, a trial might be made of the readiness-to-serve fare schedule by establishing a fixed full cash fare of, say, 10 cents and a fixed fare for a ride by readiness-to-serve su.bscribers of 5 cents, leaving the automatic feature, characteristic of such franchises, to apply only to the monthly readiness sub- scription. There would be a definite psychological advantage in such an arrangement. A large part of the difficulties and loss in traffic occasioned by fare increases lies in the frequency with which the passenger is confronted with the fact of the increase. Daily, whenever he boards a car, he is irritated by the odd change or special tickets which have taken place of the time-honored nickel. The monthly payment of a higher electric light bill does not worry him much more than the higher grocery bill, although the professional politician will maintain that he is being robbed in the former case. A similarly complacent frame of mind would logically attend the monthly payment of a possibly variable subscription to the excess cost of his street car service over the old established standard and his daily contact with the problem of the increased cost of living would disappear, as far as street cars are concerned. It is believed that too much emphasis cannot be placed upon the psychological aspects of the fare situation, and any fare system which recognizes them should receive consideration. The Need of the Hour TN THE PRESENT PERIOD it is necessary that we A as operators be allowed the greatest latitude in devising ways and means for bringing service into proper relation with the cost and cost into relation with the service — that we be allowed to experiment with modifications of service, with various systems of charges and fare collection and with the many ingenious devices which have been suggested for re- ducing the cost of operation and consequently lessening the burden of fares imposed upon the car riders. — JOSEPH K. CHOATE in an address before executives of electric railways of the New York Electric Railway Association, Syracuse, N. Y., Sept. 18, 1919. September 27, 1919 ElectricRailwayJournal 653 The Collection of Odd Street Railway Fares The speed of their collection is greatly increased by the proper design of car — The sale of tickets at reduced rates is also helpful — Ten-cent fares often justified By R. T. SULLIVAN General Manager Mahoning & Shenango Railway & Light Company, Youngstown, Ohio T HE collection of any street car fare, whether 5, 6 or 7 cents or more, interests railway operators from two angles. One of these is the convenience of collecting the fare, or, in other words, the separation of the fare from the passenger with the greatest ease to the passenger. The other is the efficiency of the collec- tion or the turning over to the treasury of the maximum number of exact fares from passengers carried. It is not the purpose of this article to discuss the question of the reasonableness of any par- ticular fare, although it is difficult to treat the subject of odd fares without some consideration of what is a reasonable fare, especially since the choice of an increased fare should be made with full con- sideration of the two aspects men- tioned above, as well as of the in- crease desired in receipts. The problems of collecting odd fares unfortunately are presented at a time when the methods of col- lecting even a straight 5-cent fare are far from perfect. In conse- quence, it is not possible to con- sider any standard method for the collection of 5-cent fares as one to be followed in collecting odd fares. Odd fares have been effec- tive on a large number of proper- ties for periods of such length that certain phe- nomena are self-evident and need only be mentioned. Thus, it has been found that any fare higher than and replacing the 5-cent fare has caused a reduction in traffic. The extent of the reduction has been dependent upon the class of traffic, average length of ride, amount of service, feeling in the community for or against the utility, the type of publicity campaign preparatory to making the fare effective and the financial ability or disposition of the railway company to make some notice- able expenditure in the community where the fare has been raised. There are several communities that have experienced a year or more of higher fares, but this includes the pe- riod of the influenza epidemic of 1918, thus impairing the value of any statistics that can be cited as indicative of the true effect of higher fares. The 6- and 7-cent fares, as previously mentioned, have caused decreases in traffic which have not been the same even in cities of the same size, inhabitants, most pi "1^ t life ' _j R. T. SULLIVAN One city of approximately 50,000 of whom are engaged in the steel industries, when changing from a 5- cent cash fare, with tickets eleven for 50 cents, to a 6-cent cash fare, with tickets eleven for 60 cents, ex- perienced a 17 per cent increase in revenue as compared to the pre- vious month. The increase declined monthly and gradually for a period of six months, at the end of which time no increase was shown. Then the conditions changed, and inside of two months there was a 15 per cent increase. This was in Sep- tember, 1918, when the influenza epidemic occurred and heavy de- creases were shown for three or four months. However, after a period of one year, there were in- creases of from 18 to 20 per cent. Some of this increase might have been experienced regardless of the fare, but it would indicate that from a psychological standpoint the an- tipathy against higher fares wears off with time. Therefore, it would seem that the riding habit under a 6- cent fare tends to reach the same value as under a 5-cent fare with the progress of time and provided a proper provision has been made to make the collection of fare as convenient as possible for the passenger. In another community of 40,000 population the fare was increased from 5 cents cash to 7 cents cash, with tickets sold six for 40 cents. It was estimated that tickets would constitute 15 per cent of the total paid passengers and that riding would decrease 15 per cent, producing an increase in revenue of 18 per cent. The figures for the first month of the increase show an actual increase of 184 per cent. This increase has varied somewhat during the first year and has ranged between 14 and 184 per cent. In this particular in- stance the variation of increase in revenue was not 654 Electric Railway Journal Vol. 54, No. 13 as great as in the case of the 6-cent fare, but in the latter case the average haul per passenger was not as great as in the community operating under the 7-cent fare. In the 6-cent fare community, the average haul was approximately H miles, a distance so short that, under good weather conditions, traffic would naturally decrease when the higher fare became effective. The City of Youngstown operated under a 5-cent cash fare with a 1 cent charge for transfers from Jan. 15, UNLOADING MOVEMENT FROM PETER WITT TYPE OF CAR AT CENTRAL SQUARE, YOUNGSTOWN 1919, to July 1, 1919, at which date the fare became 6 cents cash with tickets sold nine for 50 cents. On Aug. 1, a 7-cent fare became effective, with tickets sold eight for 50 cents. The transfer charge was retained with both increases. Although the 6-cent fare was in effect for only one month, some interesting comparisons can be made. The increase in receipts amounted to 8.4 per cent, with a decrease in paid pa.^sengers of 6.45 per cent. It had been estimated that 50 per cent of the passengers would use tickets and therefore the theoretical average fare would be 5.775 cents, or an increase of 15* per cent. At the time that this article is being written August figures only are available for comparing the results with the 7-cent fare. During the first week of the 7-cent fare, increases were shown of 5.63 per cent over the 6-cent fare and 15.8 per cent over the 5-cent fare. The second week produced an increase of 14.2 per cent over the 6-cent fare and 22 per cent over the 5 cent fare. The paid passengers for the first comparative week of the 7-cent fare decreased 7.9 per cent as compared with passengers under the 6-cent fare, and 12.2 per cent as compared with the passengers under the 5-cent fare. In the second week of the 7-cent fare, the paid passengers showed an increase of almost 1 per cent as compared with the 6-cent fare and a decrease of 7.3 per cent as compared with the 5-cent fare. From this it is apparent that after the 7-cent fare had been in effect two weeks the paid passengers were equal in number to those carried under the 6-cent fare, and when it is considered that the 6-cent fare had been in effect only one month and therefore afforded little opportunity for traffic to regain its former value, it is evident that gradually the riding habit will increase and the paid passengers will be equivalent to those carried under the 5-cent fare. On the assumption that 50 per cent of the passengers would use tickets, the theoretical increase of the 7-cent fare over the five is 321 per cent. The actual results for the two weeks of this 7-cent fare has been 22 per cent. Since the 7-cent fare followed the 6-cent fare after a period of one month, the effect upon decreased riding was no greater than under the 6-cent fare, and while it is true that if the 7-cent fare had followed a 5-cent fare the de- crease in riding would be greater, the same effect did not occur under the circumstances of this case. More- over, I believe that the fact that the change occurred automatically according to the provisions of the service- at-cost franchise was another reason why the decrease under the 7-cent fare was no greater than actually resulted. There was an entire absence of agitation and comments when the fare increased from 5 to 6 cents and from 6 to 7 cents. Previous mention has been made of the fact that a penny charge for a transfer was made under all fares. The use of transfers did not vary to any great degree for any one of the various changes in rates. This is another proof that it is the short haul passenger who is affected by an increase in rates. The percentage of transfers of total passengers under the various rates was as follows : Fare Per Cent 5 cents 17.1 6 cents 18.0 7 cents 19.0 Tickets Increase Rides With the 5-cent fai'e there was little call for tickets, but with the arrival of odd fares, tickets seemed to be a matter of both convenience and necessity. Moreover, if the inauguration of higher fares can be accompanied with the sale of tickets at reduced rates, much of the popular feeling against street car companies and against the higher fare largely disappears. On our own property we have had experience both where tickets have been sold upon the cars and where they have been sold only at ticket offices and certain PASSENGER BOARDING PETER WITT CARS AT CENTRAL SQUARE, YOUNGSTOWN stores. In the former case the percentage of tickets to total paid passengers has been over 30 per cent and in the latter case the percentage has been only 10 per cent. This condition applies to two cities of approxi- mately the same size, namely, 50,000 population. In the City of Youngstovra which passed from a 5-cent cash fare to a 6-cent fare, with tickets sold at the rate September 27, 1919 Electric Railway Journal 655 of nine for 50 cents, the percentage of tickets to the total number of paid passengers for the one month was 45. In this case tickets were sold upon the cars, as has been a custom in Youngstown for several years. With 7-cent fares, the percentage of tickets to the total paid passengers was 52.5 per cent, an increase of 12 per cent in the actual number of tickets used as com- pared with those used under the 6-cent fare. The average fare per passenger for the 6-cent fare, including transfer, was 4.95 cents, and for the 7-cent fare was 5.55 cents. The sale of tickets upon the cars is an application of a principle of selling transportation. The posses- sion of a ticket by a street car patron is apt to increase his inclination to ride more than if he did not have a potential ride in his pocket. With the collection of odd fares, some passengers with the intent of getting by the conductor without paying full fare, have dropped in pennies of a less number than the proper fare. The number of such passengers probably do not constitute a very high percentage of the total carried, but in view of such possibility the greater the encouragement for the use of tickets the fewer the opportunities there wiW be of dropping short fare in the fare box. The sale of tickets in multiples of 25 cents will tend to increase their use. This is because there is a decrease in the riding habit with the adoption of an odd fare. It is interesting to know whether tickets are used more in rush-hour traffic than in the off-peak periods. Tn an effort to find the exact condition, a check was taken on one line where tickets were sold eleven for 60 cents. Results are given in the tabulation below, where total ticket passengers, total paid passengers and the per cent of tickets to the total are shown for hourly periods: TABLE I— SHOWING PERCENTAGE OF TICKET PASSENGERS AT Time 5 to 6 to 7 to 8 to 9 to 10 to 1 1 to 12 to 1 to 2 to 3 to 4 to 5 to 6 to 7 to 8 to 9 to 10 to 1 1 to 6 a.m. 7 a.m. 8 a.m. 9 a.m. 1 0 a.m. 1 1 a.m. 1 2 a.m. 1 p.m. 2 p.m. 3 p.m. 4 p.m. 5 p.m. 6 p.m. 7 p.m. 8 p.m. 9 p.m. 10 p.m. 1 1 p.m. 12 p.m. DIFFERENT HOURS Ticket Paid Per Cent Ti Passengers Passengers of Total 6 22 29 22 177 12 33 212 16 23 203 . ,, 11 21 148 14 12 169 7 20 166 12 33 193 7 28 202 14 13 152 9 16 219 7 19 235 8 59 378 16 25 259 10 18 256 7 13 235 6 4 254 2 30 247 12 11 305 36 406 4,129 10 The falling off in ticket riding during the off-peak hours, indicated by the above table, lends great interest to experiments being carried on to stimulate off-peak riding by issuing weekly passes at a fixed sum good for off-peak hours. For the collection of odd fares the Peter Witt type of car has a decided advantage over the double-end pay-as-you-enter type. The reason for this is obvious. The collection of an odd fare undoubtedly involves more time than the collection of the 5-cent or ticket fare, and with the pay-as-you-enter type, with the conductor stationed near the entrance, some congestion is unavoid- able. With the Peter Witt car, the front portion of the car serves as a huge platform, enabling the ready entrancie of a large number of passengers before the congestion of fare collection starts. As the car pro- ceeds with a rush-hour load, half of the fares have been collected, and it has been observed that as the rest of the passengers in the front portion of the car unload, no greater delay has been experienced than with the 5-cent fare. At heavy points of unloading also it has been noted that the passengers pass from the car as rapidly as with the 5-cent fare. Statistics of passen- ger interchange time for Peter Witt and double-end car are given in Table II and III. Fare Boxes and Transfers There has been a serious question as to whether a fare box was efficient in collecting odd fares. It has been claimed that with the collection of odd fares it has been impossible with heavy loads for a con- ductor to observe whether all passengers drop in the exact fare. To determine the correctness of such a contention observations were made on a car operating in rush-hour traffic where a total of 340 passengers was carried in three trips. Two checkers were assigned to the car so as to guarantee correct data. It was PASSENGER BOARDING PETER WITT CAR AT CENTRAL SQUARE, YOUNGSTOWN found that 229 tickets and transfers were collected dur- ing this period, leaving a total of 111 passengers on board of the car for whom there should be 6 cents each. Therefore, the cash in the fare box should have been $6.66. Actually, the amount of cash was $6.59. This difference of 7 cents might have been a case of one passenger getting by and another depositing one cent short, or the entire amount might have been distributed among several passengers. On the basis of this test, the efficiency of collection was 99 per cent. The fare box is surely a very convenient method of collecting the fare so far as the passenger is concerned., If he has the exact fare, either in cash or in tickets, he has only to deposit it in the box, and there is no delay such as occurs when there is a physical transfer of the fare to the conducter. Transfers should be issued with the smallest delay, therefore the design of the transfer should be such as to make this possible. The form of transfer which seems preferable for this purpose is the one upon which it is necessary to punch only the time at which the 656 Electric Railway Journal Vol. 54, No. 13 transfer will be good. The transfer points at which the transfer is valid are printed upon the back of the trans- fer. With such a transfer a conductor at the beginning of this trip can generally estimate the number of transfers to be issued and upon them can punch the proper time. Thereafter, the only operation required in issuing the transfer is its presentation to the passenger. The title of this article indicates that its scope is limited to odd fares, but the discussion will inevitably bring about the thought, why should there be odd fares ? of higher fares. One of the reasons is simply hatred and distrust of public utilities. A second reason has been that the passenger feels that the spending of an odd fare has been equivalent to using 10 cents, inasmuch as the breaking of the dime has practically destroyed its purchasing power. If there is any merit to the view that the last reason has had any effect, the effect in decreasing riding following fare increases after the first raise up to 10 cents should be less marked. When a company that has been compelled to adopt TABLE II— TIME OF PASSENGER INTERCHANGE ON PETER WITT CAR, WITH COLLECTION OF 7-CENT CASH FARE AND TICKETS SOLD EIGHT FOR 50 CENTS Time of Trip 2:12 p.m. 2:38 p.m. 3:04 p.m. 3:30 p.m. 4:38 p.m. 5:04 p.m. 5:30 p.m. 5:56 p.m. 6:22 p.m. 6:48 p.m. NOTE — Tickets constitute 52.5 per cent of total paid passengers, and transfers 19 per cent of total passengers. Total Time Passenger Interchange per in Seconds Movement Passenger in Seconds 283 202 1 .40 95 46 2.06 223 162 1 .38 207 162 1 .28 151 114 1 .32 224 176 1.27 253 204 1 .44 321 278 1.14 84 60 1 .40 153 104 1 .47 1,994 1,508 1.32 TABLE III— TIME OF PASSENGER INTERCHANGE ON DOUBLE- END CAR Time of Total Time Passenger Interchange per Trip in Seconds Movement Passenger in Seconds 3:24 p.m. 93 46 2.04 3:48 p.m. 95 52 1.83 4:12 p.m. 192 68 2 82 4:36 p.m. 108 78 1.38 5:00 p.m. 306 156 1.74 5:24 p.m. 125 58 2.16 919 458 2.00 Fares on inbound trips are paid as passengers enter and on outbound trips at passengers leave the car. Time of passenger interchange on double-end car 2. 00 seconds Time of passenger interchange on Peter Witt car 1.32 seconds Increase per pa.ssenger with double-end car 0.68 or 51.5 per cent The end of high operating cost is not in sight as long as there is a prospect of increased trainmen's wages, and as operating costs are now double those existing in 1914 it follows that 6- and 7-cent fares are not going to provide the necessary revenue except under the most favorable circumstances. The only traction companies that can survive under a 5-cent fare, 6-cent fare, or even a 7-cent fare, are those which under pre- war conditions could have maintained successful oper- ation under a 3- or 4-cent fare. Inasmuch as no substi- tute has been found for street railway facilities, civic authorities must recognize the justice of a fare that will- not only pay for the service rendered but will enable the utility properly to maintain its lines, pro- vide for extensions and protect the capital investment. In a great many cases such a fare will be 10 cents and not an odd fare. Psychological reasons have been the chief cause of decreased riding with the adoption a 6- or 7-cent fare must reduce service, skimp main- tenance and refuse extensions on account of inadequate revenues, the result from every standpoint, both of the public and the company, must be less satisfactory than if it had squarely faced the issue and demanded a 10-cent fare, at the same time providing the service that formerly went with the 5-cent fare. Ten cents will be a fare of such convenience for both patron and railway company that if operating expenses should sub- sequently decrease, I believe there would be a preference for more service rather than a decrease to an odd fare with the inconvenience of handling pennies, the delay in change making and other difficulties of an odd fare. This 10-cet fare condition might be termed visionary, but if the public is convinced that the service rendered must be in direct proportion to the fare paid, I believe it will prefer maximum service for a convenient fare rather than odd fares and skimped service. TESTS ON THIS DOUBLE-END CAR HAVE SHOWN THAT THE TIME OF PASSENGER INTERCHANGE WITH IT WAS OVER 50 FEB CENT GREATER THAN ON A PETER WITT CAR September 27, 1919 Electric Journal 657 =13 Advantages of Higher Schedule Speeds They are of benefit to both the company and to the public — What the railway company should do and how the city officials can help to secure the desired results By JOHN A. BEELER Consulting Engineer, New York City Fi lEW electric railway operators realize how com- pletely their prosperity is dependent on their schedules. It is a fact that schedules may either make or break a company. Earnings come in by the car-mile and expenditures go out by the car-hour. A failure to keep these fundamentals in mind may defeat what otherwise would be a successful management. Volumes might be written con- cerning the advantages of higher schedule speeds. The subject has been approached from various angles, but always with the same conclusion: "that the schedule speed should be as high as possible con- sistent with the safe operation of the cars. But the tremendous ad- vantage to be gained through the higher speed is rarely brought out. The best way of illustrating the subject is through a concrete ex- ample. The following tables relate to two systems of similar size, doing the same business, but with diflfer- ent schedules. They may be known as A and B. Their principal statis- tics are given in the first table in this column. These systems so far are iden- tical. Their trackage, earnings, and wages are the same. The two would stand on the same plane as to ultimate results were it not for the difference in their schedule speeds, which from now on is the controlling factor in the operations of the two systems. (See second table). A 40 B 40 2,857,000 2,857,000 $1,000,000 $1,000,000 35c 35c Earnings per mile of track $25,000 $25,000 Average trainmen's rate per hour 50c. 50c. est single item in operating expense today is trainmen's wages. After this item ($1 per hour for two men) is deducted, system A has left $1.45 to pay all other operating expenses and fixed charges, while B has $2.68, or more than the entire receipts per car-hour in the former case. The resulting operating ratios are respec- tively 90 per cent and 60 per cent. System A has but 10 cents of each dollar of gross receipts left, while in the case of B 40 cents or four times as much remains after opera- tions that is available for inter- est and other charges. Higher Speed Reduces Investment Also Neither in the amount of fixed charges to be paid are the two roads on a par, although the inter- est rate is the same. While both systems operate the same amount of trackage and the same number of car-miles, the slower speed of A necessitates the use of more cars to provide an equal amount of serv- ice. This in turn requires a greater investment not only for cars but also for car house, shop, and plant facilities, greatly increasing the in- terest, depreciation, replacement and overhead charges generally. This is shown in the investment table in this column. From the above it is seen that system B is doing as much business with sixty-six cars as A is doing with 100. In one case each car has an- nual gross earnings of $15,000 and in the other but $10,000; consequently, the more extensive plant re- quired by the slower schedules of A make an invest- JOHN A. BEELER While the car-mile earnings are the same as shown before, note the effect of the difference in speed on that most vital factor, the earnings per car-hour. The larg- A B Speed, miles per hour 7.0 10.5 Expenses per car-hour $2.20 $2.20 Earnings per car-hour ,$2.45 $3.68 Operating ratio 90% 60% Number of passenger cars required. Total system investment Investment per dollar of business. . A 100 $4,500,000 $4.50 B $3,500,000 $3.50 ment of $4.50 for each dollar's worth of annual busi- ness, while B with its better schedules has but $3.50 invested. B is thus given a further advantage in in- terest charges of 6 cents on each dollar of income, which alone will equal $60,000 annually for the system. 658 Electric Railway Jourxal Vol. 54, No. 13 The financial difference between the two roads is summed up in the condensed operating statements below : ' A B Gross earnings $1,000,000 $1,000,000 Operating expenses 900,000 600,000 Net earnings from operation $100,000 $400,000 Interest on investment : Six per cent on $4,500,000 270,000 Six per cent on $3. .'500, 000 210,000 Surplus $190,000 Deficit $170,000 Thus after providing for all outgo one system shows a huge deficit and the other a splendid surplus. One is prosperous while the other is in the hands of a receiver. It must be remembered that these roads and the volume of business done by them are identical, the difference being entirely in their schedules and the effects result- ing therefrom. In some cases an even greater difference between two roads similarly situated will be found. A large portion of the public desire more rapid transportation. Even comfort seems to be a secondary consideration to many. This is seen in the survival of the jitney evil in many places even at the same rate of fare. People will put up with all kinds of inconvenience and poor service because they are taken to their destinations quickly. This will naturally result in greater receipts for a fast line than for a slow one. Higher schedule speeds have the effect of increasing the per capita earnings, and so of making the property more pros- perous. It may appear difl^cult to understand how there can be such a wide difference in the speeds of two different roads. A and B represent the two extremes of operation found in city service. One maintains exceptionally slow schedules, the other exceptionally fast. Extremes have been selected purposely to illustrate the vital im- portance of this subject. Many Operating Expenses, Besides Wages, Are Lower Per Car-Hour With High Speed The expenses per car-hour, on the other hand, are practically the same on the two systems. The wages, which comprise by far the largest single item, are identical. Since the higher speed in road B is largely due to the fewer stops and less running on resistance the power is slightly less in spite of the higher speed. Every stop eliminated saves almost one-half pound of coal. A car operating on the full running points takes nothing like so much as one running on resistance. The track maintenance is virtually the same in the two cases, as the maximum speed has but a limited effect un- less the track is in very bad shape. The car mainte- nance, however, is very largely increased with the added stops and resistance running, due to the increased wear and tear on the brake shoes, trucks, armatures, control- lers, doors and car bodies. While it appears almost paradoxical, the accident cost for the high-speed road is less per car-mile than for the slow one. This same condition has been borne out on other roads that have reduced the number of stops and increased the schedule speed. Figures from Philadelphia show that the introduction of the skip stop there caused a decrease in accidents. My experi- ence as an operator showed that there was a 50 per cent decrease in accidents when the speed was increased from 8 m.p.h. to 10 m.p.h. The slow, halting progress of cars in some cities tends to make for carelessness on the part of public and employees, while fast move- ment requires the motorman to be on his toes, with his hands on the controller and brake and his eyes watch- ing the track. He is the first one to get hurt in the event of a collision, and naturally the higher the speed the more he will be on the lookout to avoid accident. Because of the smaller investment, and smaller number of cars and of employees on road B the items of general expense are lower. Taxes and insurance are also less. On the other hand the items of general expense will be divided by a smaller number of car hours, so that the various items of operating expense offset each other, resulting in the same cost per car hour in the two cases. How TO Get Into Class B For the average street railway system the question today is how to get out of the class of roads in the condition of A and get into the B class. The problem is much more difficult than might appear at first glance, in fact, so much so that the manager usually makes a few attempts, excites the opposition of the public and the employees, and gives up in despair. True, there are physical limitations on some properties, that make it impossible to operate at as high a schedule speed as on others. Very frequently, however, many of these physical handicaps are the result of custom and can be overcome or greatly minimized by various means. The manager of a property will find that the limita- tions to speed fall into a few general classes. First of all he should see that the mechanical condition of the various elements is such that higher schedule speeds are possible. The track must, of course, be in such condition that it is not necessary to reduce speed on account of its poor condition. This does not necessarily mean that large additional amounts must be spent on track maintenance for the purpose, but that the track should be kept in the proper condition to insure safe operation and give normal maintenance costs. It is in the equipment that the most can be done to make higher schedules practicable. Usually a system of any size will have a number of different types of equipment, with different motors and with varying speed characteristics. On some properties these differ- ent types are used indescriminately. The simplest move that can be made is to segregate these different cars by routes so that the slow cars can be placed on lines incapable of high speed and keeping them separate so far as possible to prevent them holding back the faster cars. If new cars are to be purchased, the fetich of "local conditions" should for the moment be forgotten, and a standard type of car designed along modern lines, and capable of faster schedules, should be selected. Frequently changes can be made in the steps and doors that will make for faster loading. Automatic devices for opening and closing the doors, and for signaling the motorman, will aid in reducing the dead time. A study of the gear ratio should be made to see if all that is in the motors is being ob- tained. Doubtless when the manufacturer furnished September- 27, 1919 Electric Railway Journal 659 the motors they were properly selected for their work, but perhaps a few years have changed conditions. The cars may even be on different routes or on different service from that which they were originally chosen. Frequently attention to this item of gear ratio will make it possible not only to speed up the schedules but to save power at the same time. Having done everything possible with the mechanical features of the property, the next is to utilize them to the fullest advantage in the construction of the actual time-tables. At this point is the greatest chance to save or lose money. The bane of most companies today is excessive layovers. Often two or three cars will be found at the end of each line, ostensibly to "protect the headway," but more frequently they are an ill-advised concession to labor. This practice saps the prosperity of the company and ultimately will affect the employees adversely. Superintendents and others in authority should see to it that this important phase of the subject is understood and appreciated by the em- ployees. Then, too, it is frequently possible to reduce the actual running time. Faster acceleration and brak- ing, less running on resistance and wasted time all along the line, will permit of tightening up the schedules a minute here and a minute there, always with the same beneficial result. Much Benefit From Proper Team Work In this work the Instruction Department will necessa- rily play a leading part. In the past far too little at- tention has been paid to the instruction of the train- men for best results. The conductor is shown how to take in the money and get it safely to the treasurer, and the motorman how to apply power and brakes to get the car over the road without accident. But the fine points of the game are seldom brought to the attention of the men. The value of the second should be brought out forcibly, and methods discussed and ex- plained for reducing the waste of time. The two men on the car must work together. The motorman must be alert and on the job. He must take advantage of every opportunity to keep his car moving. The con- ductor has a much larger influence on the schedule than is generally recognized. He can assist by always being ready when the car stops, opening the doors promptly, announcing the route, making change quickly, getting the passengers past him into and out of the car. Then he should not waste any time in giving bells to the motorman, and should always give a sharp, clear signal that will not have to be repeated. While the car is moving he should call the streets, prepare transfers, make up his trip record, and so at the end of the line be ready to turn the car around for the return trip. The passengers, too, can do their share by moving quickly, having change ready, asking for transfers promptly, and getting near the exit door when ready to leave instead of waiting until the car stops. Moving away from the doors to prevent congestion will also be found a great aid in reducing running time. When the employees and public are brought to realize that these things have an effect on car fares and on wages a long step will have been taken toward better schedules. The greatest assistance of all in the establishment of faster schedules can come from the authorities. Their co-operation may assist in many ways. During the war the railways were given the assistance of the Fuel Administration to reduce excessive stops through the medium of the skip-stop. In some cases the intro- duction of skip-stops was unfortunately arranged, so that the antagonism of the public was aroused. Where the skip-stop has been properly installed there has been little or no complaint; but in some cases a careful study was not made, with the natural result that on the cessation of hostilities the public demanded the abolition of the system. Even where it has been aban- doned attention to the present crisis may call for a reconsideration and introduction of the skip-stop, per- haps in a modified form. Even where the skip-stop can- not be re-installed in toto, attention should be called to the matter of unnecessary stops. In almost every city will be found locations, especially in the congested bus- iness section) where stops are poorly placed and where a little attention to the matter may result in ihe elimi- nation of from one-fourth to one-half of the stops. In such a locality the elimination of a few stops may be worth much more than the elimination of many stops in the suburbs, for in the first case all the cars on a main artery will be affected, while in the other a compar- atively few cars will be concerned. Then, too, in the business district nearly every car will make all stops, while in the suburbs the cars frequently pass by a num- ber of stop locations. Stops in the dovratown district are often poorly lo- cated. Cars may stop in locations where they will block other cars, vehicles, or pedestrians. This is espec- ially true at junctions. By making the stops outside the junction the delay will be materially reduced. Platforms Aid to Speed up Loading Loading platforms and safety zones can be used to great advantage in speeding up the movement. Plat- forms should be very generally used at heavy loading points where the street is wide enough to permit. In fact, the possibilities of loading platforms have not as yet been fully appreciated. They have a marked effect in speeding up the time of loading and unloading. They reduce street congestion and prevent accidents. Where platforms are not possible, safety zones may possibly be employed at certain periods of the day to assist in loading. It may be said, however, that if there is room in the street to permit of safety zones during the hours of maximum traffic, when vehicle congestion is usually most acute, there seems little reason why they should not be made permanent and become raised loading platforms. The greatest assistance from the authorities can be obtained in the regulation of street traffic in general. As the street car is the vehicle of the many, while the automobile is the conveyance of the few, the street car should be given precedence generally at street intersec- tions. This principle should be brought out forcibly before the police departments in all principal cities, as it has a tremendous influence in speeding up the cars. When the congestion at the street corner is acute a great deal can be done to speed up the cars and traffic 660 Electric Railway Journal Vol. 54, No. 13 generally by the elimination of left-hand turns for vehicles. The left-hand turn in some cases is almost a menace to the safe handling of the traffic, and getting rid of it makes the life of the traffic officer much more endurable. On downtown streets the cars are frequently slowed down by the unlimited parking of automobiles and other vehicles, particularly where the street is narrow. It is not possible to eliminate all parking in the business districts, as the occupant of a building is entitled to free ingress and egress, but there are limitations to the use of the streets for garage and storage purposes that should not be forgotten. During the rush hours especially the streets should be reserved for the free movement of traffic. On the busiest thoroughfares the parking should be limited strictly to that necessary for the conduct of business. One-way streets may be resorted to in order to reduce congestion, but their use is limited. With single- track lines they may become necessary, but otherwise it is usually well to confine their use to the narrower streets at right angles to the car tracks. All-in-all, the entire subject may be summed up in one word: co-operation. Only in this way can the result so sorely needed by the street railways be obtained, and it matters not the exact form in which it is desired. Business Follows Service Service means giving the people what they want when they want it — The safety car meets the requirements when it provides fast, frequent and safe transportation By E. M. WALKER General Manager^ Terre Haute, Indianapolis & Eastern Traction Company, Terre Haute, Ind. THE past few years have given to us all an experience of conditions we never knew be- fore. The war suddenly compelled us to revise our ideas as to some industries which we had come to think were indispensable, teaching us that they were non-essential. We have passed through a period when the pruning-hook has been beaten into a sword. Industries have been bent to the uses of warfare. As a consequence of the waste and devas- tation of war, a great change has intruded itself into the relation be- tween buyer and seller. Catering to the buyer has seemed at times to become a forgotten art in a state of the existence of more buyers than sellers. It has become a question of not what is the price, but have you got the goods and can you de- liver them? It is no wonder that under such conditions, service has often given place to dis-service. But the order will again change to its normal routine, just as read ily as it was upturned. People will have to be served, and they will de- pend upon each other for servic just as much as in the past. The buyer will again learn to "beware" that he is getting not only goods but service. As it used to be in the good old steady comfortable days, the seller who sells service along with his merchandise will be rewarded with business. Perhaps no single industry has felt so keenly the E. M. WALKER effect of the hard conditions of war as that of city street railway transportation. The fixed rate of fare, declared by many experts to be a psychological necessity, the lengthened ride, the higher cost of power and of equip- ment, and lastly, the rise of platform wages to figures never heretofore deemed compat- ible with the fixed rate of fare — all have combined to increase the diffi- culty of making both ends meet. In many cases, even with increased rates of fare, it has become impos- sible to maintain operation, and the struggle has been given up. Now, can we determine whether this is due to economic causes that are operating to push the street cars off our streets and let their places be taken by something else, or it is that the business, subject to always-changing conditions, has changed more rapidly of recent years? If so, what are we to do to get enough business to make the industry not only self-sustaining but profitable? Because the people are fair and will patronize the man who gives the best service and will pay a fair price for the service. One man stops at a certain hotel in a city which has a number of first- class hotels, because every employee in the hotel invariably says "Good morning!" to him when he is starting the day. What a simple, and yet what a carefully thought-out way to get his business regularly. Many now in the street railway business have seen ^ September 27, 1919 Electric Railway Journal 661 the development of the means of city transportation from the small capacity horse car to the larger car, elec- trification, still larger cars, then double-truck cars. Strangely enough, when the large cars were put on, in many cases schedules were lengthened, on the theory that the movement of traffic could be controlled. Indeed in many instances the development of the larger ca- pacity street car had been due to a need of reducing the cost of carrying a passenger. For the platform wage, at first merely nominal, had steadily risen higher and higher, until its relation to the carrying capacity of the car was out of all reasonable proportion. There- fore, we saw cars of twice the carrying capacity op- erated less frequently in an effort to correct this rela- tion. This necessarily brought on another burden, for the increasing size brought with it increased weight and increased power requirements to move the cars. Also, the rush-hour periods, taxing the capacity of even the large cars, required service and schedules which, for the periods of light travel during the remaining hours of the day, were unwieldy. The mind of man has ever been at work studying how he could make his living by catering to the needs or habits of his fellows. For we must all live off each other, and these needs and habits are so many and so varied that they continually engage the mental activities of the thoughtful. Thus came the automobile and by easy stages of de- velopment, the cheap automobile, to try its hand at the problem of moving the streams of city passenger traffic. There are few communities that have not had, or are not having, their jitney experiences. And in all cases these transportation agents have made serious inroads into the revenues of city street car companies, endanger- ing the welfare of properties in which large permanent investments have been made. Why the Jitney? Now why the jitney? Why should this generally reckless vehicle have been accepted by the erstwhile car rider as a means of carrying him dovra town and back, when he had previously and for years depended solely on the street car? There is no denying that the jitneys were doing the business. Were they giving the service? They were able to, and did, carry the worker, the clerk, the business man and the shopper, up town or down town and in a hurry, much more quickly than a street car, and as it happened in many eases, much oftener, and for that reason they seized and held a part of what we will call the legitimate business of the street railway. Why do people ride in jitney buses? Simply because they have come to think that they are in a hurry at all times, and because they are impatient of waiting long on a street car. Many a street railway manager h-dH had the experience of feeling that he has a certain close personal friend who is so much, and so strongly, his friend that he would never ride in a jitney, only to be completely disillusioned by seeing that selfsame friend seated in the next jitney bus that passed. Either the jitneys have given the kind of service the people wanted, or else many of our street railways have not done so, otherwise the jitneys would have packed up and moved away long ago. They could have gone as easily as they came, with no impairment of capital in- vestment beyond ordinary wear and tear. And surely the employment conditions of the past few years have been such that any jitney driver could have easily trans- ferred his activities at good wages if he were not doing well enough to suit him in his newly developed profession of "uncommon carrier." It has been of no avail to write theses on the prohibitive cost of operating jitney buses or their relative rights on the streets ; they are still here, and they quickly drop in on the stream of human travel whenever it may be found to be flowing in paying quantities. On the other hand, what have we done to meet this competition which has tortured us so grievously during the past five years? And there is no gainsaying that the gross earnings of all the jitney busses in the United States during the past few years, added to the earnings of city street car lines, would have put a different sort of curve on the charts of the statisticians. Perhaps we have kept right on building too many large and heavy cars which entailed heavy maintenance charges, heavy power cost and heavy track repair cost, and yet which could not move with the attractive speed and flexibility of the jitney bus? If we have not built new ones in great quantities, we may have at least kept right on operating those that we had. Perhaps we have been unable to do otherwise. Perhaps we have thought that there was nothing else to be done except keep right on dying, slowly but surely. We may be sure that this habit of the people wanting and needing quick trans- portation will never cease while there are people. And the people will be served, and therefore he who fur- nishes adequate service in the transportation field, will reap the reward in business. Statistics recently published in connection with the hearings at Washington before the President's special commission on street railways showed that in some of our larger cities more people are riding daily in auto- mobiles than in street cars. This proves two things: one, that the individual rider finds that he can get to the place where he wants to go more quickly by auto- mobile than by street car, and two, that the individual rider is not particularly interested in the seating ca- pacity or the size of the vehicle in which he is trans- ported, his principal thought being that there must be provided a seat for him, or else speed to compensate for the lack of a seat. The crowd on a street corner waiting for a transpor- tation medium will yield more readily to the quick- moving, frequent, jitney bus, each one taking away four, five or six passengers, than it will to the heavy and comparatively slow-moving street car which comes along past the corner every ten or fifteen minutes. This is a proposition that has been so frequently demonstrated as to have become axiomatic. The jitney buses themselves have shown to us in these few short years that Business follows Service. Let us cross the water, and see what our compatriots are doing on the other side. The very interesting series of articles by Walter Jackson, which have recently 662 Electric Railway Journal Vol. 54, No. 13 appeared in this Journal, have shown us some condi- tions of city street railway transportation from which we can make deductions which will at least serve for a basis of comparison, if they are not indeed most helpful. Generally speaking, over there, in representative cities where conditions have been described by word and picture, as well as by statistical compilations, we find cars which to us look small. It is true that many of them aie double decked, but the weight per seated pas- senger is comparatively light. This makes possible the provision of a larger number of car units, which can readily provide for increased service at rush hours. Published pictures, notably those of Glasgow, show this. The general practice of the zone system of fare collec- tion with a low initial rate is another significant fea- ture. The earnings per car mile, even with smaller cars, and the carrying of more passengers per mile on these smaller cars than are carried in many of our American cities, is also an impressive fact. Lastly, at least for our present purpose, the jitney as we know it here, is unknown, o-r at least its presence is unremarked in the articles mentioned. The conclusion we may draw from our brief foreign trip is that the "tram" cars are giving the service needed or wanted, as they are doing the business. Furthermore, the tramways of Great Britain are quite generally supplementing their rail service with bus service which is of a complementary nature extending into urban or suburban districts not deemed as quite justifying a permanent investment. The psychology of the whole matter is quite plain. The public will have what it wants, and when it wants it, and where it wants it. And service means catering to this condition. We can not make the people take or keep something they don't want or like. This was never better illustrated than years ago by the building of a large and expensive railroad station at Council Bluffs, Iowa. The railroad builders had decided that was the logical place to make the investment, and yet the people built their big city across the river. What Shall We Do to Keep the Business? What then is to be done to get or regain, and keep, the business that will and must follow the furnishing of adequate means of city railway transportation? We have tried to keep in mind that the people will have the kind of transportation service they want. It rarely happens in life or in nature that conditions get so hard that there is not a way out. "It can be done" is a pretty safe motto, and is applicable as readily to the street railway business as to any other. What to do about the jitney bus quickly engaged the imagina- tion and thought of forward looking men in the in- dustry, with the result that the safety car made its advent, and in the short space of three years over one thousand of these cars have been placed in operation. This is not the place to describe the new type of stand- ard car. The literature of the industry has been replete with descriptive matter pertaining to installations of safety cars here and there all over the country. The meeting of street railway men within the past three years at which the safety car has not come up for dis- cussion has been the exception. The car is extremely light in weight, speedy, com- fortable, of ample seating capacity, and so fitted with so-called safety devices as to make its operation by one man not only possible but preferable. For the central- ized control of the vehicle in the mind of one man pro- motes safety. Here then is a means of carrying the people that can be operated a mile as cheaply as a jitney bus. It has the speed of a jitney bus, over six times its seating capacity, many times its safety and comfort, and it affords protection against inclement weather which the jitney bus does not pretend to do. Its very lightness in weight and ease of operation make pos- sible much more frequent schedules; in short, the serv- ice can be readily adapted to the business that is to be done. All these things being true, the safety car must be a worthy competitor of any other means of city trans- portation, and so it has proven. The results have been the same here and there following the installation of this type of car. Business has followed Service. Serv- ice of a high class has been possible, the people have been satisfied, have grown m.ore and more so, and have bestowed their patronage where the service was best. Proof that Business Follows Service An almost endless array of figures could be given to show that this type of car has abundantly proved that "business follows service." If we were to take the re- sults of its operation in every place where it has been introduced, we should find a difference in figures that would be only as to the degree, not in the kind of results obtained. For the sake of a few supporting illustra- tions, however, to the truth of the statement with which we started out, I will quote an example: One street railway company, operating a number of safety cars, having commenced less than a year ago, is now carrying on its cars more passengers than in any year of its history, though its "passengers carried" had shown a steady decline for four years previous to the change. It has increased its car miles 28 per cent on a reduced power consumption, and its earnings have shown an even greater increase than its car miles. As an evidence that business follows service, consider the case of one of its city lines, on which, without increas- ing the number of cars, the schedule was speeded up 10 per cent and an increase in earnings of 14 per cent followed and continued to be maintained. Most notice- able of all has been the satisfaction of the people whose appreciation and support was won by this effort to give the wanted kind of service, and the corollary which has been shown in the greatly decreased number of jitney busses operating. These are not days for pessimism about any business, least of all the street railway business. The people will be served, they can be, and they must be served. The optimist will find the way to do it under the changed conditions which we now see on every hand. To these changes he will readily adapt himself, and he will find a ready proof here, as elsewhere, of the statement that business follows service. September 27, 1919 Electric Railway Journal 665 Advertising for Traffic Advertisements should drive home facts — Newspapers, car dash signs, and em- ployees are effective mediums — Both interurban and city line advertising discussed By F. G. BUFFE General Manager the Kansas City Railways Company, Kansas City, Mo. WE HAVE transportation to sell. Most of us have more stock on hand than the trade today is using. Some have marked up the goods and many patrons are showing a disposition to go without rather than pay the in- crease. In many places our transient friends, the jitney drivers in Mr. Ford's con- traptions, are running off with much of our old-'established trade. The question arises: Is it good business policy to hire an advertis- ing manager, buy newspaper space and olfer our wares to the public through the medium of printer's ink? There have been many and divers opinions on this subject more or less freely expressed in the past seven or eight years. It may be that the rapid change in conditions brought about recently will to some extent affect the whole subject. The question naturally falls under the two main sub-divisions, interurbans, and city lines. Also it generally presents more or less of a local problem in every instance. For the interurban road, an ex- perience with one of the largest interurbans in the United States has been convincing that advertis- ing does sell transportation. A large majority of interurbans are competitors of the steam roads and perhaps all of them today charge practically the same rates. It follows, then, that where a customer has hi;^ choice between two methods of transportation it is up to the one who wants his business to go after it. The average interurban certainly has enough talking points to justify their being expressed: Rapid, frequent serv- ice, comfortable, clean cars, the absence of smoke, dust and cinders are all good things to impress upon the pub- lic. In addition the interurban is more of a home product than the steam road. Advantage can be taken of this feeling and proper advertising can make not only customers of its traffic prospects but friends of its customers. When You Do Something Tell the Public About It Traffic naturally falls into two classes: First, the regular day-to-day travel; second, travel stimulated by special events, excursions, etc. Both should be adver- tised. Any road having its terminal in a large city should by all means make itself, its route, its service known to the people of that city. To cite a concrete illustration, I have in mind when the Illinois Traction System com- pleted its bridge and terminals into St. Louis, Mo. Al- though for three years it had been engaged in building the heaviest bridge across the Miss- issippi River, the largest inter- urban bridge in the world, with all the publicity which such an enter- prise would naturally secure, yet a thorough advertising campaign was necessary to acquaint the peo- ple of St. Louis with the excep- tional service that had been made possible for them. This company since its St. Louis entrance in 1910 has been consistently advertising and even yet there are many people in that city who know the McKin- ley line service only in a vague sort of a way. Tourists visit large cities with excellent interurban facilities offering exceptional side trips of real merit, and in many cases these are never called to their attention. A Well Organized Traffic De- partment Is Necessary In addition to a thorough adver- tising campaign, those roads large F. G. BUFFE enough to support it should have a well-organized traffic department whose agents will solicit and build up busi- ness. In such cases their efforts should be supported and assisted by proper advertising. As a general proposition, there is no advertising medium which equals the newspaper; however, this does not mean that posters, car cards and other methods are not useful and do not have their place in any well-planned campaign. Posters, if used extensively enough to cover the field, offer an excellent medium. Street-car cards are good. Up-to-date maps should always be used in all advertising matter. Every piece of copy should bring home in some manner the system's route. The effort should be to educate the public to an extent that a mention of the system would instantly bring up a mental picture of the system's map. Frequent service is a lesson to drive home. The steam road may take one to his destination, but the parallel interurban will not only do that same thing but will do it many times a day to the steam road's once. An interurban's adver- 664 Electric Railway Journal Vol. 54, No. 13 tising should be consistent. Its monogram or design should appear in every piece of copy and on everything used by the road. The foregoing covers briefly some reasons for the necessity of day-to-day interurban advertising. Special service and special events from their very nature de- pend for success on advertising. A live traffic depart- ment w^ill take advantage of everything of this nature which will bring travel to the road. It is the general consensus of opinion of the operating officials of 90 per cent of the interurban roads that advertising is essential; that a lengthy discussion of this division of the subject is superfluous. Why Should the City Line Advertise? We now come to the question of advertising by city lines. On this subject there is more diversity of opinion without so many concrete examples on which to base decisions. During the last few years everyone has been so busy trying to make a 1913 fare cover 1919 expenses, Street loT.""-'»""^„. ,,e»=e °:„„.liab S.-«"< •Iroo.t below, kansas city railways' adver- tisement INTRO- DUCING SPECIAL LINES TO ITS PATRONS have discovered that much of this business once se- cured was the most unprofitable of all. While adver- tising may not directly sell our transportation, there are several phases of the situation. Like equipment, advertising methods should change, and the old stuff of 1912 will not do in 1920. The accompanying illustra- tions show specimens of recent advertisements of the Kansas City Railways Company. They were prepared by E. B. Atchley, director of publicity. „p. pl»ee* °° rbe pre""" j To Tractor Show and Hotel Patrons. SAVE TIME By nslng Special Union Station Line on Main Street in iroing from Tractor exhibit to Conventon Hall and downtown hotels. A 6.MINUTE SERVICE ON THIS LINE I OR NORTHEAST LINE on Man Street to Nineteenth and thence .north on Grand Avenue where an S-mlnute service has been established. ABOVE, TELLING THE PUBLIC ABOUT ROUTING CHANGES IN KANSAS CITY Other Lines Crowded— By nsing the lines suggested you will obtain' better service. The other lines passing Union Station and Tractor Show carry passengers to and from residence districts. THEY ARE HEAVILY BURDENED, while the special lines placed in opera- tion for your especial benefit will permit a^aving in time and afford yon better faclities. THE KANSAS CITY RAILWAYS COMPANY. ABOVE, EFFECTIVE METHOD FOR ADVERTISING SERVICE IN KANSAS CITY or in an endeavor to secure from the unwilling public the right to sell our service at somewhat near its cost, that we may have had time for little else. Street railway riding is done as a matter of necessity and not for pleasure. People use street cars in the same frame of mind that they do sidewalks. Our city transportation systems are the arteries through which the business and civic life of the cities flows. There are certain local conditions that obtain in some communities where parks or other special-event advertising may increase the vol- ume of traffic. However, in the past many railways Those who have secured fare increases are suffering from a mental state on the part of the public when it comes to paying a higher fare than 5 cents for street- car transportation. The same people who willingly pay double the old price for the movies, three times and the war tax what they used to pay for an ice cream soda, twice what they used to pay for a cigar, act as if their pockets are being picked when they are asked to pay 6, 7 or 8 cents for a street-car ride. The short- haul rider, in order to express his mental objection to a fare increase, wears out his $13.50 shoes for which September 27, 1919 Electric Railway Journal 665 he used to pay $5. Many more of our ex-patrons in order to express their indignation against the street railway company getting enough for a ride to pay the wages of the train crew willingly pay 10 cents for the privilege of hanging on to an already crowded jitney. In addition, many of our old friends who were reg- ular morning and evening customers have become af- fluent and now use their automobiles for the daily trip to the city and back. Inasmuch as man is a gregarious animal and likes company, most of them are in the habit of picking up their friends and neighbors. Not only could we secure this revenue which we so badly need but we would be doing a real service to these people if we could pursuade them to leave their auto- mobiles at home. Congestion is a serious problem in every city, and anti-parking laws are making it more and more necessary to put the car in a garage or parking station during the day. Based on the actual cost of operating an automobile and including the park- ing charge, people are spending all the way from 50 cents to $1 per day to go from their homes to their business and back. The jitney is a fair weather pest which in many places is eating large holes in the revenue. Operating a jitney is merely a method of junking an automobile. There is not one jitney driver in 500 who looks far enough ahead to do other than pi'ovide for actual run- ning expenses. Some of them may provide for tire trouble, but practically none look to the fateful day when the installment plan "Tin Henry" is no longer servicable. Everything above operating expenses is lived up. As a general rule jitney drivers are a happy-go-lucky irresponsible set of humans who prefer driving a jitney to swinging a pick. Gasoline and rubber at present-day prices are never going to sup- plant steel rails and electricity for transportation pur- poses. That being the case, is not any city that toler- ates jitneys merely cutting off the municipal nose to spite its face? In other words, those who patronize these pirates are supporting a competition for the bene- fit of a limited number and penalizing the great ma- jority who now and in the future must depend upon street railways for their transportation. Hammer Home the Cost of Auto Operation Do not these conditions afford an opportunity for some life-size advertising campaigns which, while not directly selling transportation, should accomplish the result indirectly? An advertisement asking the people to ride street cars will not get them to do so any more than an advertisement begging them to walk on the sidewalks. There is a chance, however, that if the cost of private automobile transportation is ham- mered home to the man paying gasoline and tire bills, sooner or later he will awaken to the fact that his regular morning and evening trips are costing him money which could be better spent for joy riding. The average automobile owner pays his automobile bills without reducing the cost to a mileage or a daily basis and is thunderstruck when these costs are shown. If the average citizen with any respect at all for the shrunken American dollar of to-day can be made to realize this expense and at the same time introduced to a street railway service which is 50 per cent better than it was in the days when he used it a lot of private machines might be kept in the home garage, where they belong, during the day. The average automobile owner is generally a loyal citizen of his town ; he is the fellow you will find giving his time boosting civic enterprises and supporting a multitude of outside interests for the good of his city. If a man of this caliber comes to understand that street railway transportation must be supported if his town is to grow, there is a chance of awakening him to the importance of riding the cars and letting his four or five friends who are depending on him for daily trans- portation pay fare again. The right kind of a publicity campaign may have the effect of waking up a city to the dangers of unrestricted jitney competition. Some of our real estate friends who have turned cow pastures into residential districts at the expense of the street railway in the good old days may come to life and help stop an unfair competition that threatens the trans- portation upon which their success depends. The Industry Needs Some Psychology As stated before, the street railway industry is up against a mental strain, which is all any advertiser faces when he starts to peddle his wares. The adver- tising man's job is to change this mental state, and there are many reasons why it can be done. What can be done to bring the revenue passenger's figure back to the point where it was when the ride was 5 cents? Most large city rates now admit of tickets, then why not go after ticket sales on a merchandising basis? Put a sales manager in charge whose job is to see that every- one buys street car tickets. Our poker playing friends state that a man will raise a pot a whole lot quicker when using chips than with hard money. The short- haul rider with tickets in his pocket will take many a ride when he otherwise may hesitate to pay cash. Show the public that increases are not only justified but are absolutely necessary if street cars run at all. Create the mental atmosphere that an 8-cent fare is an honest fare and that any man who talks otherv/ise is seeking to get something for nothing by asking that somebody else pay his expenses. It is pretty hard to get anyone who has seen some mighty big issues staked on the turn of the publicity dice time after time and who has seen these forlorn hopes turned into successes say anything but good of the advertising proposition. A large city railway need not go into the circus business or run the system as an adjunct to an amusement park. This business is all right if it comes naturally and if the other fellow is spending the money to furnish the amusement. The very best advertising medium in any city are street car dash cards. ■ They can push a limited num- ber of words in black ink in the face of more readers per day than any other medium. Donate this space liberally to attractions that are supplying traffic to the line. However, advertising for all this traflSc is sec- ondary to getting the 365-day a year back-and-forth business that by right belongs to the street cars and 666 Electric Railway Journal ■ Vol. 54, No. 13 that has been earned by years of bitter experience and finanical loss. We are public servants in every sense of the word and are conducting the biggest single public enterprise in any community. On us falls the obligation to keep the civic, social and business life of our communities going, and we have not even had the reward that the Bible says should be given to the ox that used to trample out the corn. There is no reason why today's trouble should cast a cloud over to-morrow's sun. The street railway is an absolutely essential institution. Anything in our present civilization that is absolutely essential is going to survive. We have done more than our share of civic building and it is time to get off the defensive. Of course all this is based on the assumption that the service is worthy of support. Increased service means increased gross. The use of the safety car has demonstrated in every section of the United States that decreased headways and better service mean more If safety cars are operated and headways thereby reduced 20 per cent, tell it. Use dash cars stating that such cars run on a 3 i -minute schedule or whatever it may be. When impressing the public with the necessity for riding the cars, tell it how they run, where and when. Every street railway has a wonderful potential ad- vertising force in its employees, if it is only possible to secure their co-operation. On some unionized prop- erties this is almost an impossibility at times, but hard, consistent, patient work will do wonders. Make the public understand that further increases in wages and shortening of hours must come from, public purses. The Amalgamated Association has to some extent lost its sense of proportion and the point has been reached where an awakened public sentiment will not tolerate further unreasonable demands. If trainmen can be made to realize that their success depends in direct ratio on the success of the road; if their co-operation can be secured each one of them can be made a walking pub- SIDP^TCACnON —costs]£SSfhanbyauto = Your fthopping center can be quickly, comfortably reached by Truci.on. WherKei youl.veon the linea ol the I. T. S. or within driving distnnce to any one of its hundredeof ike Ihc Btrain of travel out of shopping. Write for Time Table or aok agent tor copy, show- ing paiucnger and freight steam road connections. ILLINOIS TRACTION •SirSTEJ/A.- TRAFFIC DEP'T. . Jl^ PEORIA, ILL. YOU'ALL sho do . SLEEP Courteous attend- ants supply your every need. Absence of dust, dirt, smoke, cinders in« • ure cleanliness. Windows in up* pers and electric fans provide ample pure^ fresh air. Extra long berths. Safety deposit boxes. Jllinois Traction Sleepers breakfast, b and shopping Illinois Traction A*^*^^ System = lU;« post cards KORIA, iTfillit Dipl.) ILL ^ »/ mmois TRAcnotrsrmM. POM>afQ000 SERVICE N< Tf ch the princip tnc lines make d nections with stei RIDE via TRACTION f^jrJ^lJrbSi electric way with f ) you th( daily SHIP via TRACTION of our electric lines on package. 1. c. I. and car •hipmenCs. Ask any agent for passenger freight rates or write to Traffic Department. ILli- rLlVNOrs'^lRrclm''N°''SYSTEM PCOniA — ^SP RING Ft ELD— ST. LOUIS— DANVILLE C. O. &.P. Ry., (ILLINI TRAIL) J«ll«t — Ottawa — Starved Rock — Prlnceten ILLIN( BLOCK Illinois Traction Sys' tern and lUini Trail were the drat u.C.a the; ct'rWbi'S'ign'.U e the pioneers in : for safety, com- of tlieir patrons. Use l.T.S. and JlUni Trail (or pleasure and bu-iness. Ride by traction on your pic. ties and to your shopping center . Snip by Traction your package and car I oad freight. Ask t'.e Agent or write to I . "r S. TRAFFIC DEPARTMENT. Peoria. III., (or al I data on frequency of pas- senger and (reightserviceand rates. Illinois Traction Traffic Dept. Peoria - III, System C. O. p. Ry, (ILLINI TRAIL) FREE RECENT EFFECTIVE ADVERTISING FOR TRAFFIC BY THE ILLINOIS TRACTION SYSTEM ( (^ouctfSN" of E. E. Soules, manager (Jepai tment of publicity I. T. S. ) riding. Now is the time to impress upon the minds of our trafTic prospects the fact that the street railway systems of the United States helped build their cities and now have the right to demand support. This is an idea of the basis upon which to key our publicity campaigns. We have service to sell, therefore it follows that we should tell of the service. The best standing advertise- ment a company can have is the appearance of its cars on the street. The public does not care about the con- dition of the shops, the power plant or the interior of the car barns; it sees cars, it meets the trainmen and its impression is formed entirely by appearances. An advertising campaign might be started by freshening up as much as possible. Have the cars cleaned inside and out, teach trainmen to be courteous, uniformed and neat appearing, see that the little things are right, such as signs, fenders, curtains, signal bells, etc. Keep head- ways regular. These things go with good service, and appearances count for everything. Let the public know just what is being done. licity bureau. The men must be trained and given ammunition to shoot. Stories that are printed for the public should be printed for the men in neat pamplet form; frequent meetings should be held and the men impressed with the necessity of acting as a unit with the management along these lines. Advertise service, make it worth selling and sell it. Increased service means increased receipts. Put every ounce of argument you have in your talk with the public. Get off the defensive, do not let an unmerited attack or an unwarranted statement go unchallenged. If a hearing cannot be gotten in any other way print a paper and distribute it on the cars. Instead of merely follow- ing our old publicity methods of telling the public our financial condition and "laying the cards on the table," to use a hackneyed and time-worn expression, it is pos- sible to make advertising the medium for carrying the new message of service and the necessity for its use. The street railway is necessary to the life of our cities and what is necessary will be supported. September 27, 1919 Electric railway Journal 667 The Safety Car in the Movies How a romance has been woven abou t the operation of the safety car — Film well adapted to demonstrate advantages of this car from popular viewpoint THROUGH the courtesy of the The J. G. Brill Company, the General Electric Company, the Westinghouse Electric & Manufacturing Company and the Safety Car Devices Com- pany, the Industrial Department of the Universal Film Company, New York, is distributing an entertaining and instructive film of the Birney safety car entitled: "Fares, Please." The original plan of the four companies was simply to get a picture that could be used for instruction pur- poses and as an accompaniment to the report of the American Electric Railway Association's one-man car committee at the 1919 convention. However, after be- coming aquainted vdth the character of the car, the Universal Company suggested that the subject be ex- panded to make the picture attractive to the general public. Accordingly, the picture combines a description of the safety car in action with a story that drives home several strong points in the cause of better public relations and better car service. The following outline of the scenario and the accompanying "stills" will give some idea of the moving picture man's way of conveying an idea direct to the ultimate consumer — in this case, the man who rides on the street car. The picture as shown by the committee is an abbreviated one-reel version of the following scenario. The Plot is Outlined The opening picture is a marching scene upon which appears the statement that of all the men who volun- teered to go to France for Uncle Sam, none gave a larger proportion of physically and mentally alert indi- viduals than the car platform men, because electric rail- ways select for platform service only those who are capable of passing a severe examination. Continuing, this statement points out that the reckless jitney driver is self-selective. Of all the platform men who entered the service there was no finer specimen than Fighting Jack O'Malley, a handsome Irishman noted for good humor that did not fail him. even in the rush hours. Jack is shown as he stepr^ off of a car to revisit the carhouse that he has not seen since the day he enlisted. Upon arrival at the carhouse he receives an uproarious (it looks uproarious!) welcome from his old comrades. They begin questioning him on how he won the croix de guerre and other decorations that bespangle his bosom, but he waves them aside with a laugh and says that the first thing he wants to know is whether the old job is waiting for him. As a proof that it is, his friends show him a poster on the carhouse reading: "Soldiers, Sailors, Marines ! Your job awaits you." In the meantime, the noisy greetings below have disturbed the division superintendent just as he is dictating a letter about the wonderful increases in traffic due to the inauguration of safety-car service. Upon looking out of the window, he espies Jack and im- mediately invites him up. After the first jovial greetings have been passed, the superintendent, still full of the safety-car letter, asks him if he wouldn't like to try his hand on the new safety cars. Jack is rather nonplussed as he had never heard of that kind of car before. Look- ing at his wound stripe, he confesses that he does not even know whether he would have the strength to operate the new car. The superintendent laughingly assures him that brain, not brawn, is what is needed to operate the safety car, and there was no doubt that his record showed he had plenty of the former article. Thereupon the superintendent describes to Jack the characteristics of the first line upon which the cars were installed, portions of the line being cut in to illustrate his conversation in the approved movie manner. At one end of this line is the finest residential section in the city. Here many of the residents have ceased to use their automobiles for the short trips downtown because they are getting more service with a faster car. Next is shown the business district with its variety of big cars, open-bench cars and safety cars, private automobiles, jitney automobiles and jitney buses. From the business district. Jack is conducted in imagination to the opposite end of the line. Here the neighborhood is much poorer, but the riding has increased — not because the people are putting their machines in garages but because they have less temp- tation to walk. Continuing his enthusiastic story, the superintendent explains to Jack that the low wheels of the safety car permitted the abolition of one step, thus making the car popular with old people, children and women. This feature, the methods of boarding, alighting and paying fare are all illustrated by cut-ins made under actual traffic conditions without the knowledge of the passengers filmed. The superintendent lays great stress upon the emergency applications which give the car its name. Having worked Jack up to almost his own degree of enthusiasm, the superintendent tells him that this car really saved both their jobs. He then calls up the division foreman and asks him to send Jack out with an instructor. In the following scenes. Jack is shown all the manipulations of the control apparatus and its inter-operation with the doors, steps and sander, until he is considered fit to take the instructor's stool. All the emergency applications are repeated in a number of close-up scenes. The Safety Stop is Brought Into Action Shortly after Jack has begun to run the car, a pretty girl steps aboard. Jack is looking at the fare-box out of one corner of his eye but does not see the features of his fair passenger. No sooner, however, are the doors closed and the car under way than the young lady 668 ElectricRailwayJournal Vol. 54, No. 13 1 No. 1 — Jack returning to take up his old job. No. 2 — Jack telling how he won the Croix de Guerre No. 3 — The division super- intendent sees Jack return. No. 4 — The division super- intendent suggests that Jack operate a safety car. No. 5 — Jack while operat- ing his car recognizes his sweetheart. No. 6 — The small boy tells Jack to run the car or he will do it himself. Scenes in the Moving Picture Scenario Featuring the Safety Cars September 27, 1919 Electric Railway Journal 669 ==3 looks up at the operator in khaki and utters one delight- ed shriek: "Jack!" Jack is so startled upon recognizing his sweetheart (for who else could it be?) that he lets go of the control instantaneously. On other cars, the audience is told, this pardonable neglect might have led to an accident; but not so on the safety car, for no sooner had Jack forgotten himself than the emer- gency equipment goes into action with its customary vim and certainty. Again the breaker brakes, the sander sands and the scenery comes to rest. So immersed is our hero in finding his sweetheart thus unexpectedly that he has failed to observe either the stopping of the car or the injunctions of his good- natured instructor. However, one passenger has taken particular notice of the goings-on. Finding that his yells are unproductive of results, this ragged young gamin steps forward and tells the infatuated Jack that if he doesn't get busy said gamin will prove he can run the car himself! Thereupon the young lady retires to the background and Jack returns to the job of running the car. In the final scene. Jack is shown on his return to the carhouse. After he has told the boys the story of the wonderful little car and of his adventure on it, he con- sents to tell them of his days in France when the Hin- denburg line was subjected to such severe corrugations. Developments in Fare-Reg-istering and Ticket-Issuing Devices Changes in Fare Systems and Rates Charged Have Produced New Conditions Which Require New Methods and Apparatus in Col- lecting and Accounting MACHINES have been developed for use with zone-fare collections together with modifications of standard machines which will facilitate use on roads applying the zone system of fare collection. The general consideration being given by electric railways to the zone fare system as a means of meeting increased costs has led to the design of several new fare collecting and registering devices for use with this class of service. For example, the Ohmer Fare Register Company has brought out two new machines to meet the requirements of zone collection methods. The first of these is a zone-ticket printing and issuing machine. This prints from a roll of plain white paper a ticket bearing the zone number, the date, the con- ductor's number, the direction of operation, the machine number, the number of the motorman or conductor oper- ating the machine and special instructions and adver- tisements as required. When the passenger enters the car he receives a ticket from this machine. An indicator in the machine shows the number of the zone in which the car is operating, which number corresponds to the zone number printed on the ticket. The machine is operated by means of setting levers or knobs at the back and by a pedal. The machine does all the printing so that tickets are issued quickly and conveniently and the operation of the machine is positive. The second machine which this company has developed is a universal zone-fare register. This is intended to OV& UJ « o o V Z I 1 pq 0 3 0 8 4- OCT 14- 19 issued brMOTORnflW No. 2 Fanfare mlim leaving car. Fare Ikgister sitouis zone car is in. Passengermusf hand this checK to conductor when paying fare. Tarijf posted in car SAMPLE ZONE-FARE TICKET stand on a pedestal on the rear platform and is operated by the conductor. As the passenger pays his fare the amount is registered by using a pedal. The amount registered is clearly indicated to the passenger, the number of the zone to which the passenger pays his fare is indicated, and a printed record of the transaction is made. The register will record any cash amount up to 99 cents, together with the necessary non-cash denominations such as tickets, pass, transfer, etc. The construction is so arranged that the register can be quickly removed from the supporting column if desired and placed at the other end of the car where a similar support is located. Where the Ohmer zone ticket- issuing machine is used the zone register and ticket machine may be used interchangeably on the supports and operated by the foot pedals. Four New Portable Models Developed The Rooke Automatic Register Company has brought out four new models to satisfy the present demands. These are similar in appearance, size and method of use to the familiar Rooke models, but have different coin Operating Side Passenger Side UNIVERSAL ZONE-FARE REGISTER 670 Electric Railway Journal Vol. 54, No. 13 capacities. Substantial improvements have also been made to provide more rugged construction. Heretofore the Rooke register has been regarded as a one-coin proposition, although several companies have used adaptations of the register to receive and classify separately nickels and dimes, also nickels and one size of metal ticket. The manufacturers have al- ways considered, however, that the dime could not be received into the old type registers on the basis of the accuracy which had always attached to the receipt of nickels. If nickels only, however, were accepted in city operation the passenger who tendered a dime, wishing to pay two fares, had to be given two nickels in exchange from the conductor. This involved some delay and ob- jection to the register. This handicap of limitation to one coin has now been eliminated and the new register will receive nickels, dimes and quarters. In regard to pennies the manufacturers state that they can arrange 'to register pennies apart from other cash if it is desired, but there is some difficulty in providing for the registra- tion of pennies and dimes together, as the difference in diameter of these two coins is so small. In cases where six-cent or seven-cent fares are to be collected, the manu- facturer of the Rooke regis- ter recommends the use of a metal ticket to cover the fare. A passenger who does not secure one of these metal tickets would simply insert the nickel in the register and hand the penny to the conductor, who ■ would be charged at the rate of six cents a point. He would naturally, therefore, secure the penny. The four new types of register include first the two- coin type for nickels and dimes. The insertion of a nickel in this register moves up one point on the total- izing counter. The dime charges two counts more. The conductor's turn-in is figured at the rate of five cents per point for each numerical point. The three- coin regis