Originally Posted by
Dahon.Steve
+1
A law was passed in Washington forcing electric and power companies to disinvest from their street car lines. This was the case in New Jersey as PSEG (public service electric and gas) ran the system. Although they did keep the Newark City Subway (trolley) because it would have been too costly to fill in the tunnels, they ended up spending a fortune repaving the tracks because it was took expensive to remove them.
I still believe if the trolley companies were allowed to raise the fare box every 3-5 years, it might be a different story. A five cent fare box in 1913 was $1.21 today! This was incredible low and there was no reason to starve the system for money. The fare box should have been 11 cents in 1913 which is what people are paying in New York City today.
Inflation Calculator: Bureau of Labor Statistics
Bus fares here in Lansing are only $1.25 with two free transfers. Isn't that about comparable to a nickel fare in 1913? The fare box is heavily subsidized by a millage tax, and I don't believe the old streetcar services were subsidized quite to that extent.