The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-06-26
SHORT LINE ROADS
THREATEN TO OUT.
Many Small Companies on
Verge of Bankruptcy,
Representatives Say
BLAME THE POLICY
OF ADMINISTRATION
REIMBURSEMENT by U. S. Is Opposed
with Control of Trunk Lines Denied
Claim That Request Tor Payment by
the Roads Was Excessive.

WASHINGTON. June 26.-Because
of the railroad administration s atti-
tade toward the short line railroads of
the country 10000 miles of lines be-
longing to smaller companies are now
on the verge of bankruptcy and threat
en- to suspend operations, representa-
tives of the short lines told the senate
interstate commerce committee in oppos-
ing director general McAdoo s request
for an extension of the time during
which control over the carriers by the
government may be relinquished. They
urged an amendment to prevent relin
punishment Of short lines while control
of competing trunk lines is retained.
B. NJ. Robinson, president of the
American Short Line Railroad assoeia-
ton, declared the resolution embodying
the director general S plan in its pres
ent shape nutlifies the present law. Ben
B. King Of Dallas, Tex, member Of
| the executive committee of the associa
| ton. bitterly assaulted the administers
ton S attitude saying he had been in
! formed that the administration does not
intend making any contract with short
| lines, but proposes TO announce a gem
leral policy relative to them. Such pro-
cedufe Mr.. King said, would only result
in ruin for the roads affected, because
il would destroy their credit.
/ Mr.. King said the operating income
of his road, the Gulf, Texas and West
ern railroad, has been reduced about 80
per cent since the government took con-
troll of railroads because much of the
freight shipments which formerly passed
over that line is now being routed over
government controlled roads which com
pete with that one He said relinauish-
| ing by the government of the Denver
and Salt Lake railroad, road about
200 miles in length, had DESTROYED that
roads credit and that the Colorado
and Midland railroad, having mileage
of 34f miles, also will have TO suspend
| operations for the same reason The
Midland road, Mr. King said. parallels
| the Denver and Rio Grande and all
| traffic has been diverted to the latter
road.
/ Witnesses told the committee that
practically 500 short line railroads in
the country, with total of 10000 miles
of track. are affected by the resolution
John Barton Payne, councillor to the
railroad administration, defended the
administration 5 action in relnauish.
ing control over the Colorado Midland
railroad, declaring the $3o0,000,ooo 9
year compensation asked by President
Carleton was exorbitant. The road
Mr. Payne said, represented a S2,n00.00C
investment and had been operating al
/ q loss.
Mr.. Payne said the problem of the
short line railroads is great one and
that the railroad administration is do
ing its best to meet it in wise way.
Senator Cummins of Iowa took excep-
tion to what he said was the admins
tration s attitude toward the roads He
said the law permits settlements OF com
Ipensation claims in the courts and add
ed that he believed it would be far bet
i ter for the administration to take THIS
i course than to drive the roads into
bankruptcy.
i Word reached the railroad admins
tration that the Morgantown and King
wood railroad. running forty eight
miles between Morgantown and ROWS
burg, Va, connecting with a number
OF coal mines, waaild suspend operations
July | because of a deficiency in earn
ings.
! Railroad administration officials said
they would take no action to assure con
I tinuance of operation until the line had
however, that the government would not
tolerate actual shutting down of the
line because it serves coal mines, con
sideFed war necessities