New Britain herald., 1917-12-11

as to the immediate requirements Of
| the railroads in their present situation.
! Their operating troubles are a volume
of traffic greater than the capacity of
the plants in certain limited territories,
aggravated by excessive use of prefer
ence orders, and their now serious
| malady of dilution of labor, which is
general throughout the country and
common to oil industry. Nevertheless,
the railroads under present manage
ment are prepared to furnish all the
transportation which the existing
| plant can produce under any form of
| management.
II. They do not ask one billion dol
! lars from the government or anybody
else at the moment. They could not
| invest it in plant and equipment If
| they had it, because Of the difficulties
Of getting materials and labor That
| figure represents in round figures what
| ought to be spent in every year for
| several years to bring tho American
railroad plant to capacity to handle
efficiently the growing traffic.
About 5000 5000 per annum on
the average has been spent for q num-
Der of years for road and equipment,
which, at present prices, would be
equivalent to about $1,000, 100000 for
road and equipment.
"2. They do not ask at this time for
repeal of the antitrust and anti-pool-
ing laws as relating to them. for they
do not consider such relief immediate~
ly necessary to increase unified opera
ton. The cooperative use of .c!ii-
ties will be continued in such way as
to obtain maximum efficiency.
The present system of voluntary
unification is adequate for this. No
interest has declined, or will decline.
for selfish or other reasons to respond
to the requirements Of the present CO.
operation organization.
"3. The immediate appointment Of
a traffic officer to represent all i'm
portant government departments in
transportation matters, with whom
the railroads can deal, to secure &C
tive government cooperation, the
prompt and orderly transportation of
government traffic and avoid the ex-
cessive use of preference orders which
congest traffic instead of facilitating it
-. Most of the railroads need To-
comotives Immediately and enough
new cars to replace those worn out.
There are approximately $500 loco
motives and $4,000 cars still on order
undelivered for American railroads.
The railroads expect to provide the
capital. Priority orders are essential
for prompt delivery of such equip
ment.
"5. Approximately 1000 locomo-
tives and 10000 cars in addition to
those now on order, are necessary for
early construction to meet the re-
quirements of next year, and at pres
ent prices represent cost of approx
imately $500, 100000. While a num-
Der of railroads are able to purchase
their quotas of such equipment with
out aid, 1t is apparent that because
the United States has necessarily oc-
cupied the investment market for war
loans, as evidenced by the recent re-
quest of the secretary of the treasury
that no new private financing shall be
undertaken without conference with
him, the railroads cannot next year
provide through their usual channels
for the requirement of capital, for
the acquisition of equipment and other
possible additions to plant They in
woke, therefore, the cooperation and
aid of the government through the
Treasury department and the Federal
Reserve board to secure for them,
their own individual credit, the new
capital found by the government to be
necessary not only for enlargement Of
plant but for renewing maturing OBJ
legations.
&c. Immediate increases in rates as
defined by the Interstate Commerce
commissions special report to meet
increasing operating expenses and
strengthen credit are necessary in
Eastern territory and may become ne
cessary in other territories.
~. Railroad men drafted to be en-
%0 i1rno1
until actually needed for military
service.
BEAUTIFULLY yours,
(Signed) "FAIRFAX HARRISON,
"Chairman."
Senator Newlands declined to make
public the details of the attitude as
sumed by the president during their
interview. He was in conference at
the White House for about g. half
hour, after which time he went to his
office at the Capitol and issued a state
ment on the situation.
Senator Newlands has been busy
since his arrival In Washington in Sc
curing for presentation to the senate
committee on interstate commerce all
available information regarding the
railroad situation and the recent rec
concentrations made by the Interstate
Commerce commission regarding the
unification Of railroad operation with
a view to meeting war conditions.
Senator Newlands said, in part:
1.-THE Interstate Commerce commits
sion and the Railway War board diff
fer as to the necessity Of legislation to-
meet the urgent requirements OF the
war The commission insists that
unifcation of operation should be con-
Quoted either by the carriers or by
the president. The railroads, on the
other hand, claim that there is no ne