Keep in mind that the money that the utilities would have needed to subsidize their interurban and transit subsidiaries had to come from somewhere and most likely from higher electric rates. I would suspect that the parent utilities would have eventually spun off the interurbans and transit companies anyway since they were a drag on earnings.
What so many refuse to consider (while they drive around in their car) was that once people got a taste of the freedom of having your own transportation, the days of the interurban/streetcar were over. You can leave when you want to, stay as long as you want, and return home when you want.
Backshop What so many refuse to consider (while they drive around in their car) was that once people got a taste of the freedom of having your own transportation, the days of the interurban/streetcar were over. You can leave when you want to, stay as long as you want, and return home when you want.
Perhaps another factor was that many such systems were hub and spoke. If you lived in the 'burbs and worked "downtown" that was fine. But if you lived in one suburb and wanted to work in another, you had to go to a hub first and change cars to reach your destination. The automobile changed that, as well.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
OvermodIn my opinion, it never made sense to divorce electric utilities from 'subsidizing' interurbans or traction simply to pander to the perception that rates could be made lower. Electric power was then thoroughly regulated, and it would have been easy, and just as popular at the ballot box, to require utilities to subsidize the interurban costs out of their own reserves and profits, rather than to do as 'was done' and leave the electric railroads and transit systems to sink on their own without subsidy into the hands of NCL and others of that ilk.
Yes, utilities were well regulated, and that's why the regulators caused the utilities to divest their subsidized traction operations, as the ratepayers are their statutory concern. Any reserves those utilities had would have been quickly depleted, as most trolley systems were nearing their lifespan, and would need massive rebuilding. And it's unimaginable that there would have been a popular vote to subsidize the trolleys at the expense of those voters electric bills.
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