The evening herald. (Klamath Falls, Or.) 1906-1942, 1919-05-08
NATR0N CUTOFF
LOOKS DISTANT
SOUTHERN PACIFIC RAILROAD
OFFICIAL SAYS ALL RAILROAD
EXTENSIONS IMPOSSIBLE UN-
DER FEDERAL CONTROL

OF the Natron cutoff or any other
extension OF the Southern Pacific
lines in Oregon will not be consider
ed by officials Of the corporations un.
I'll congressional action has deter
mined the status OF the railroads
when the lines revert from govern.
mental control to private ownership
Such was the statement given ly
Julius Kruttschnitt, chairman OF the
executive committee and president Of
the Southern Pacific corporation. who
with a group n officials OF that com
pany and representatives OF the Uni.
ted States Railway administration. is
company.
our corporation is spending a
large sum OF money in improvements
Of our properties In Oregon and viii
continue to do so in order that our
lines may continue to be both smooth
and safe. This work consists OF The
laying OF many miles OF heavy rails
and the bsllasting OF the roadbeds
with crushed rock and gravel.
But consideration of any exten.
sions must necessarily be delayed un-
I'll We learn OF our status when the
lines are turned back to Us. The
railroads Of the country. as monthly
statements show. are losing money. in
spite Of the increase Of rates made
effective by the railroad administra-
tion. In 1918 the deficit Of railroads
In this country was large and. judg.
Ing from statements being issued this
year. the 1919 deficit win be still
greater.
"The revenue secured through the
Increase OF rates has been far less
than the expenditures caused by both
the increased cost OF materials and
the Increased wages to the employees
of the COMPANIES. when the rail.
roads OF the country were taken over
by. the government many were on the
verge Of bankruptcy and II is Ger.
tain that II the lines were returned TO
private ownership at the present time
many could not survive"
With the power Of making rates in
the hands Of public bodies and the
question OF wages virtually out Of the
corporation hands. Mr.. Kruttschnitt
stated that future extensions and de-
velopment OF territory will depend
largely on the terms granted the rail-
roads by the government for opera
ton after lines have reverted to priv.
ate ownership.
When asked 10 express his opinion
on when railroads would revert to-
private ownership again, Mr.. Krutt.
schnitt employed that classic express
sion consisting OF three words coa-
densed into one. often utilized by a
famous stage 1T-'Damfino."
There Is no other way to answer
the question" he stated. "for the cor.
porate officers of the railroads have
absolutely no idea when the rail
roads will again return to private
management and control"
Mr.. Kruttschnitt has not visited
Portland for a number of years and
stated last night that his work has
been so heavy during the past two
years that he has not been outside of
New York during that time until he
started on the present tour, which he
ctated was being made into an effort
to cover the greatest amount of mile
age in the shortest space of time pos
sible.
He is accompanied by Paul Shoup,
chief executive officer on the Pacific
coast and vice-president of the South
ern Pacific company and h. II o"m-
her OF railway administration 'ffirers (
W. II. Scott and William
Sproule, federal manager of the Sou
thern Pacific. j. p. O'Brien, federal
Oregon lines joined the par
ty at Ashland.