New Britain herald., 1917-12-07
lLWAY PRESIDENT ||ALkS OF CONGRESS
Let Us Consider How Much the Railroads Can Spend," His Words

resident wilson ana cOh6AooS should, without delay, order that an Quitable basis for railroad revenues e instituted at once" was voiced by Amuel Rea, president of the Pennsyl- ania Railroad company, in mes dxe read today before the annual of the Association of Life insurance Presidents in session here. Let us have an end of restrictive, ram ping. punitive regulation and be- in an era bf constructive, broaden ng work,' wrote MT. Req. Let us Onsider how much the railroads can eiAelX spend, rather than how little hey can get along on.''
 Owing to his duties with the Rail- RAds' War board, President Req was. hRble to deliver his message in per ch. Instead he wrote, in part: Let me say, most emphatically. aat neither American agriculture nor can possibly progress beyond he capacity of the transportation aciHties of the nation to handle their nv materials and their products. When you stop railroad expansion, in scountry of such distance, popula- l4h, industrial and agricultural activ- ks saS ours, you automatically set 8 f1au limit to the expansion of com
 Tree and production. EFAs one of. the chief of the under- ling causes which have been sapping .E resources of transportation, E2nld name the continued failure to pDvide an adequately remunerative sIs of rates. The direct effect of ab error has been to make it diff1- III to raise and sustain sufficient 1ital for the improvements and ex-
 Dionst which are sorely needed. In
 mania for restricting the charges & Transportation, the financial pos Ality of permanently maintaining liity of service seems to have been 1tlooked. Aside from military con- eration, we, in the railroad indus, Ls know from personal observation ,4t what the public and industries ed is service, rather than the saving 3sa fraction of mill per ton mile. Il know that there are many ship 1D in this country today who would |Adly pay more than the established tes to have their commodities moved fomptly and regularly. The operat-
 results and the net returns of the t1lroads for many years show there e4 been 8 constant rise in expenses "a taxes and a decreasing return on [e Investment inAroad and equip |.1 do not want to convey the im- |essfon that the railroad situation is lpeless or that the credit of the ads Is entirely crippled. Such is not |e, case. Their credit can be sus- pned and their. usefulness increased Tough the adoption by the regulat-
 authorities of a responsible and tffied policy of fair treatment in the Atter of freight rates. The govern 'ent is allowing reasonable prices "a profits to industry; why not to e railroads?
 .Such policy, and not the loan of rernment credit, would, under nor- ai conditions, be a permanent solu- n for the problem of railroad credit 10 not wish to be understood as say that government loan might not
 n desirable expedient if, under kr conditions, the entire capital mar Is to be absorbed by the govern ant But it should be regarded as
 expedient only, justifiable, if at all,
 an emergency measure.
 'eThe war is, to,a great extent, re- onSible for the present congestion
 Afaff1c and its movement out of
 rInAl channels, but the carriers buld now be far better able to cope th this condition if they had re- ived more liberal treatment in the
 ~~A ne when they could have marketed turities and financed Improvements nile labor and materials were req nable in cost, and the supply of th adequate. The end of expansion d improvements on railroads is the ginning of decay and the letting
 wn of the standards of service. The ck of sympathetic attitude toward railroads in governmental quar- .s has unquestionably led to ap- ehension as to the future of their cun.ities, and this, I personally be- ve, If not corrected, will ultimately feet the credit of the government elf
 Notwithstanding prevailing higf ices and the difficulty of getting
 pitaI, it is imperative that prompt
 ensures be taken to give the rail
 ads relief from the present over
 owding of facilities, and a poor in
 stment return. Nothing could b'
 pre- helpful to the country in these
 ring times than the adoption of ;
 oader, a more liberal and unified
 licy of regulation. The railroads ar
 D great reliance of the public and tn
 untry. The public owns them. Pub
 ownership is not a possibility, 1
 . fact.
 "The energies of our country an'
 railroads are being devoted pr1
 Arily to an international service an
 nger threatening the life of tn
 Ltion and the world. The day fo
 small policy and slow action ha
 st. The railroads have subordinate
 cir interests and activities; the citi
 ns and our courts are ready for
 rger and more equitable policy. an
 president and congress shoul