Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1919-10-30
-.
Railroad Administrator Getting
Anxious

made frank admission Oh the serious
state into which the properties of the
country's transportation system have
fallen. In letter to Senator Cum
Minis and Representative Esog, chair
men respectively of the Senate and
House Interstate Commerce Commit
tees. in which he urges railroad leg
islation at the earliest possible mo-
ment, he says:
Delay in legislation will seriously
impair the public service by virtually
suspending improvements and the ac-
QUESTION of equipment and by serious
w imperiling the morale of the rail
road organization. The difficulties |
point out could not be obviated by
the Government remaining in control
of the railroads from week to week
pending adoption of the legislation"
Director General Hines goes on to
SAY that the vital need is for the ex-
penditure of large sums by the rail
roads in acquiring new equipment and
enlarging and constructing terminals,
shops, engine houses, turn tables,
trackage and the like. He remarks
that just before 1918 this rehabil-
itation work by the railroads had been
arrested by the difficulty of securing
materials, labor and new capital;
that in 1918 these factors and the
war requirements prevented construc
ton, and that during the calendar
year 1919 there has been unaviodably
an almost complete stoppage of all
these matters" In other words,
equipment is still insufficient, tracks
themselves have not been adequately
renewed, and terminal and shop de-
velpoment, needed to keep the trains
moving swiftly, has been delayed, all
this despite the fact that the money
actually spent out of revenue has been
far higher than ever before. A de-
felt has been rolled up and the rail-
roads themselves have been greatly
This declaration by the Director
General confirms what the railroad
executives had previously told Cong
resS in their earnest warning that not
only must there be legislation for
the return of the railroads, but also
this legislation must be such as to
make it sure that investment in rail-
road securities would be attractive
to the public. The old requirements
of $500,000,000 a year for normal bet
torment work are no longer sufficient
as materials and labor have about
doubled in requirements and, as the
Federal Railroad Administration re-
marks, even normal requirements
have not been met during the last
three years. Mr.. Hines makes it clear
that without new equipment and with
out early legis alton upon which new
construction planning can be based
there is grave danger of 1920 con-
dition so serious as to effect not only
the railroads, but also all Industries
which depend upon the railroads for
transportation.
Up to date Director General Hines
has declined to initiate rate changes
which will make possible the elimin-
alton of the present serious deficit
under the standard return, which was
arrived at by striking three year
average of railroad operations under
private management. During July
and August slight surplus was ex-
hibited, but these figures did not in
clude the recent wage increases grant
ed the shopmen and were fraction
al part of the accrued deficit. Cur
rent estimates of the ultimate deficit
to be shown by the Government as
result of its two year experiments in
operation are in the neighborhood of
100000 900
Before and After Fighting
The annual expenditures for all
Government purposes prior to the war
amounted to about 81 800, 900,
and the total bonded Indebtedness was
approximately $1,000, 100000, the in
terest charges on the amount being
practically $22,000,000 a year. When
the books are all put in order the
United States will have interest-bear-
ing obligations amounting to about
$4,000, 100000, and the annual in
terest and sinking-fund charge will
approximate something like $780,
100000. These figures make it per-
fectly plain that the interest charges
alone of this Government in the flu
ture will be equal to, if not greater
than the total cost of maintaining the
Government prior to the war. These
are stern figures, yet the American
people carefully and deliberately in
Cured the big obligations they rep
resent. Congressman Ricketts, of
nhia