Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-01
RAILROADS A HUGE
PROBLEM, HE SAYS
Members of Congress Inter-
ested in Views of PreSl-
dent Elliott.
URGES INCREASED RATES
TO MEET NEW DEMANDS
Doesn't Oppose Regulation. But
Thinks Managements Should
Have WIDE Authority.


Haven and Hartford railroad before the
Boston Chamber Of Commerce last night
were much interested in his treatment
OF the national features of the railroad
situation
Broad handling of nationwide railroad
problems and discussion of the relation
OF the government and the public to
transportation problems marked his ad-
dress. as we'll as full discussion OF the
TaiIroad situation in New England.
Mr. Elliotts views upon the larger
Problems of railroad traffic were regard
ed as entitled to consideration by rea-
son of his long and notable service on
western railroads and associated with
such other railroad geniuses as James
Elliott Perkins.
Now in Public Eye.
Moreover. the attention of Congress,
tn. interstate commerce commission and
the Department of Justice is attracted
to New England railroad affairs just at
present which lent added interest to Mr..
Elliott's remarks.
Men may think they have provided
sufficient transportation facilities for
years I'D scOUlS pul tic SIOW III VI shS
country is so great that things that
looked far too big a few years ago are
far too small now." said Mr.. Elliott
For every dollar of gross earnings
produced by the railroad there Is a
value in the plant used of nearly 30
upon which owners are entitled to q
fair return. For every increase OF ~
in gross earnings which renects tno
increase In general business In the
country there must De PROVIDED py
some one more than $6 OF new capltai
| for increased and improved facilities
! "As indicating the large sums needed
by the railroads in the United States
1dt Is estimated that nearly sIOo,Ooo.ooo
will be required to replace wooden
Ssith suitable signals will cost nearly
$500, 90, 900, or nearly $1.000,000.0o Tor
these two moves in the direction OF
safety; and In addition q great amount
Of money should ne spent 3et s9 9sss9x
tion, etc. !.
Transportation as Business.
,.some of the difficulties and mad
euuacies of the transportation machine
OF the United States today are the re-
suit of drifting away too far from the
idea that transportation Is business.
which. In the long run, must be gov
erned by the same great human and
natural laws that affect all human AZ
fairs.
"In saying this 1 do not wish to be
understood as meaning that there
should not be supervision and regula-
tion of the great public service cor
porations. and that changing condl-
lions do not make necessary changes
in method and in law. But do say that
care should be taken not to have that
supervision and regulation go SO 1ar
that IL practically takes the real power
of management away from those VINO
have invested their money In the busi-
ness.
$50 long as they have their money in
vested so long as they are responsible
: for the financial results. so long as they
!Se at rates that will permit of gross
kearnings sufficient to pay expenses:
Eaxes interest on debts, take care OF
epreciation and obsolescence and pay
reasonable return to the owners, tney
must have the right to decide many i'm
portant questions. particularly those re-
iating to the details of service. the or
ganization of the staff. and the rules and
regulations under which the stan and
employees must work TO produce the
greatest efficiency and safety
Strict Rules for Safety.
a public opinion that will impress Off
GERS and men with the fact that reason
able rules and regulations in the interest
OF safeguarding human life and of effi-
cient operation must be made and obey
ed. and that swift punishment will be
Ineted out TO ALL whether directors. OFF,
GERS, or employees. whether members of
labor unions or not who fail to respond
10 that public opinion, Is of vital I'm
portance 70 the welfare Of all. Sentiment
Of this kind and less insistent demand
, for high speed will do more to insure
safety than steel cars and automatic
ksignals
"If we are to continue to have privately
owned railroads supervised and regulated
by governmental authority, and II We are
10 avoid ownership by the government,
the owners and users of the railroads
must all work together. Personally. l
do not believe in governmental ownership
in a country like the United States where
our political methods are still in need
of improvement
The policy of the government-national
aud state during the last twenty-five
years seems to have been to decide rate
questions in the great majority of cases
In such a way that rates were rarely ad-
vanced and generally were reduced: and
TO Introduce rules, regulations and meth
DDS that increased expenses. | am not
contending at this time that this policy
Vas and Is wrong-or that control and
restraint by governmental authorities
should cease although something could
BE- said about that great question. i do,
however. want TO make plea that
coupled with restraint and control there
should be protection to the owners OF the
securities.
The commissions-both state and ma
tional-naturally feel the great pressure
Of the millions OF users of the railroads
for reduced rates and ilO reased facilities
Sees Bankruptcy Ahead
But IL the rates continue to decline. oil
even remain on the present level. and II
expenses are increased by higher wage.
and cost of materials, and by the intro
duction of different appliances and facili
ties more rapidly than the roads can OBJ
tain money. then there is but one resul
for some OF the railroads OF the United
States-and that is bankruptcy This will
naturally be preceded by a desperate ef
fort on the part of the management 4
postpone that evil day as long as pos
sible by stopping every Improvement ane
hetterment that can be stopped. ! be
Deve the commissioners-who have sucf
great powers-realize their responsible,
TO the owners of the properties as we'll a.
TO the users, and l hope earnestly tina,