The Washington herald., 1916-02-09
OUTLOOK BRIGHT
FOR RAILROADS
Railway Business Association
Gratihed at Solicitude on
Part of Politicians.
SOLUTIONS ARE SOUGHT
Confidence Expressed That Complex
Situation Will Be Adjusted
by Astute Men.

New York Feb. S.-"Gratification and
hope over political sollcitude for the well
fare of the railways at the opening of
1916 are intensified by the solid way in
which the political leaders have based
present procedure upon the teachings of
the past" reads the annual report of the
general executive committee OF the Rail-
way Business Association President
Wilson prescribes 10 explicit remedy, but
recommends a search for remedies.
Chairman Newlanls, OF the Senate COM
mittee. in his resolution calling for a
joint committee of Congress avoids the
promotion of any specific provision. A
leading railway executive expressed the
attitude of his colleagues when he
pledged them to welcome a solution.
however 1t may differ from any precon-
ceived views
1T was in this. spirit that Congress
launched in 1905 the quest for light and
learning which eliminated in the Fed
eral reserve act. The chairman of the
National Monetary Commission frankly
disclaimed at the outset any views as
tc the terms OF bill and congratulated
the country that thoushtful men had re-
Trained from expression of opinion and
had been willing to await an examina-
tion of the Information which we are to
furnish That commission laid the foup-
dation for what followed by going
wheresoever guidance might be sought.
by hearing whomsoever might help and
by employing specialists whose reports
became permanent contributions In
identical fashion the Newlands resolution
would authorize the proposed com mittee
to appoint the necessary experts. clerks
and stenographers and to do whatever
is necessary for a full and comprehen-
sive examination and study Of the sub
ject
Portents Amid Plenty.
"The industrial interests which sustain
the Railway Business Association are
now enjoying, after a long famine. sub
stantial railroad orders. Railway income
available for additions and betterments
and for dividends has nevertheless failed
to grow at the same rate as gross earn
ings. From 1911, a record year at the
time. to 1918. a new record year, gross
earnings increased S340. 3s3 113. while op-
Grating expenses and taxes increased only
So. .06S, $50. Then an off year. 1914, when
gross fell away to sS1. ~. .412 and operating
income dropped Sl25 lis, 1853 under 1873 Dur
ing this period many millions had been
invested in the hope. so completely dis
appointed by the event, that the additions
to plant would earn a return.
The result has been the collapse of ad-
ditions and betterments In the calendar
year just ended. according to the returns
of the Railway Age Gazette. the freight
cars built were the fcwest since 1904 with
the single exception of 1911; the passenger
cars the smallest since 1902 except 1905
the locomotives the smallest since 1895:
the construction of new miles of first
track. about siNty-five per cent of the
smallest previous year since 1895. 1t is
the persistency of this trend that has de-
veloped political solicitude.
Large tonnage and large earnings have
not on this occasion blinded the public
and public officials to the underlying
financial problem. The problem has be-
fore been vivid in periods of business de-
preston, but it is now coming to be
recognized as a continuing menace in
boom and slump alike. Political as well
as industrial leaders have acquired a
more abiding realization OF the rock
bottom facts.
THE railway problem is as complex
and difficult, IL not more SO. than was
the currency, but business men are in
6nitely better acquainted ith one an
other and with men in public life than
they were ten or five years ago, and
there is a good reason to expect that the
American people will adjust this situation
as they have adjusted so many others,
large and small"