The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-11-28
Government May Advance Cash
to Railroads of q. S.
Large Sum-POssibly a Bill
Iion-for Improvements.
NO RAISE IN FREIGHT RATES
Loan Would Take Place OF
Transportation Needs.
Judge A. E. Helm of Topeka
Sees New Move in Nation.

Railroads will not win their appli-
cation for a Is per cent increase in
freight rates. Instead the government
may arrange to advance large sums OF
money-possibly up to billion dol
larS-for bettermentS, improvements
and extensions in the present crisis.
That is the prediction of Judge A E.
Helm, rate counsel for the Kansas
public utilities commission, who has
been in attendance at the hearing of
the eastern roads in Washington.
Judge Helm believes a government
move much in line with and possibly
leading to government ownership or
supervision of railroads will result
from the present perpleXing trans
portation problems. In no case, he
believes, will the interstate commerce
commission consent to an advance in
rates to shippers. That in spite of
the enormous increases in operating
expenses which have been encountered
by the various roads. White Judge
Helm admits the railroads have suf-
fered heavily from increased expenses,
he declares the increase in gross
revenues has enabled the roads to alb
sorb the operating increases.
Trouble in Credits.
Credits, though, are admitted by the
rate counsel to provide real source
of trouble for the railroads. Judge
Helm admits the railroads cannot
at this time. For that reason he be-
Ieves the government may solve the
present trouble by loaning money to
the railroads for needed improve
ments. =
Il believe the case of the eastern
roads in the freight rate application
will fail" said Judge Helm. THAT
doubtless means failure, too, for
western roads. In the recent hearings
the roads were unable to make case
stronger than the one presented some
months ago. In my judgment the
interstate commerce commission will
never consent to charging the shippers
for making the needed repairs and i'm
! provements of the railroads and then
| give the property to the railroads and
charge the shippers for the use of the
property in the future.
"Of course to make the improve
ments-and there is no question about
the need of these improvements-the
railroads must provide the money
from their earnings. They contend
that the earnings can be provided only
| through an increase in revenues
| through advanced rates. The rail-
roads are making gross earnings
greater than ever before. They are
using every bit of available rolling
stock and shipping in the terminals
mighty hard to solve.
But it doesn't follow that the re-
lief to the railroads will come thru
| advanced rates. 1t may be a step in
the direction and I rather think it is.
| But in my judgment the government
| thru an act of the new congress will
provide some means for loaning
money to the railroads for better
ments. This money will be used in
| double tracking the large lines, in
increasing terminal facilities and pro-
viding more rolling stock Money al
this time is not easy for the railroads
to secure. And looking toward gov
eminent ownership or control or d.
recti.n as the matter may seem,
rather believe the relief to the rail-
roads will come thru government re-
lief rather than thru increased rates
to be paid by the shippers. Possibly
the government may advance the rail-
roads money from the liberty loans
1 don't know just how it will be done
But in my judgment that will be the
| solution of the problem. I do not
think an advance in rates is at all
probable"
Judpe Helm will return to Wash
ington next month for the freight rate
hearing of the western roads.