Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-12-07
Head of Pennsylvania System
Asks Adequate Support
For Operation

nual Convention of the Association
OF Life Insurance Presidents, in ses-
sion here.
Let us have an end of restrictive,
crampins' punitive regulation and
begin an era of constructive, broad
ening work." wrote Mr.. Rea. LET
us consider how much the railroads
can wisely spend rather than how
little they can get along on"
Owing to his duties with the Rail-
roads War Board, President Rea
was unable to deliver his message in
person. Instead, he wrote in part
Let me say, most emphatically,
that neither American agriculture
nor industry can possibly progress
beyond the capacity of the transpor-
tation facilities of the nation to
handle their raw materials and their
products. When you stop railroad
expansion, in q country of such dis
agricultural activities as ours, you
automatically set dead limit to the
expansion of commerce and produc-
ton.
Rates Too Low
AS one of the chief of the under
| lying causes which have been sap
| ping our resources of TRANSPORTATION
L would name the continued failure
to provide an adequately remunera-
| tive basis of rates. The direct effect
| OF this error has been to make it
difficult to raise and sustain suffi-
| cient capital for the improvements
and extensions which are sorely
needed. In the mania for restric-
| ting the charges for transportation,
| the financial possibility of perma-
nently maintaining quality of service
seems to have been overlooked. Aside
! from military considerations, we, in
| the railroad industry, know from
| personal observation that what the
! public and industries need is service,
rather than the saving of a fraction
OF mile per ton mile. We know
| that there are many shippers in this
| country today who would gladly pay
more than tn established rates to
have their commodities moved
| promptly and regularly. The oper-
| ating results and the net returns of
| the railroads for many years show
there has been a constant rise in
expenses and taxes, and a decreasing
return on the investment in road and
| equipment.
Il do not want to convey the i'm |
| preston that the railroad situation
| is hopeless or that the credit of the |
roads is entirely crippled. Such is
not the case. Their credit can be |
sustained and their usefulness in
creased through the adoption by the
regulating authorities of a RESPONSE !
! BILE and unified policy of fair treat |
ment in the matter of freight rates |
| The Government is allowing reason
able prices and profits to industry;
why not to the railroads.?
Such a policy, and not the loan of
| Government credit, would, under !
normal conditions, be a permanent
| solution for the problem of railroad
credit. L do not wish to be under
| stood as saying that Governme
| loan might not be desirable eXpe-
dent, if, under war conditions, the
entire capital market is to be alb
| sorbed by the Government. But it'll
| should be regarded as an expedient
| only, JuStifable, if at all, as an en-
ergency measure.
War Responsible
THE war is, to q great extent, re-
| sponsible for the present congestion !
of traffic and its movement out of
normal channels. but the carriers
would now be far better able to cope |
| with this condition if they had re-
ceived more liberal treatment in the
matter of rates during the past, at
q time when they could have mar
keted securities and financed inn
| proVements while labor and mate |
rials were reasonable in cost, and the |
supply of both adequate. The end
railroads is the beginning of decay
of expansion and improvements on
and the letting down of the stand
ards of service. The lack of a SYM
pathetic attitude toward the rail- |
roads in Governmental quarters has
| unquestionably led to apprehension
as to the future of their securities,
and this, l personally believe, II not
corrected, will ultimately effect the
credit of the government itself.
Notwithstanding prevailing high
prices aid the difficulty of getting
capital, it is imperative that prompt
measures be taken to give the rail-
roads relief from the present-over-
crowding of facilities, and poor iu-
vestment return. Nothing could be
more helpful to the country in these
| trying times than the adoption of a |
broader, a more liberal and unified |
policy of regulation. The railroads
are the great reliance of the puDnc |
and the country. The public owns
them. Public ownership is not a !
possibility, it is fact.
"The energies of our country and
its railroads are being devoted pri- |
marily to an international service |
and danger threatening the life of
the Nation and the world. The day
for small policy and slow action
has passed. The railroads have sub |
ordinated their interests and activi- |
ties; the citizens and our courts are
ready for larger and moro equit-
able policy, and the President and
Congress should without delay rec
ognize that fact and order that an
equitable basis of railroad revenues
be instituted at once, which will en-
courage investors to retain their rail-
road securities and do their share |
in providing the capital which can
be spared as the Government de-
mands are met from time to time |
We must get away from the present !
line of confiscatory return for an
equitable return on the investment
devoted to public use. The statistics
are at hand to emphasize what the !
return must be; all that is required
is the requisite courage to enact the !
policy in regulation and legislation"