New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-06-11
RAIL PROBLEM
IS NOT SOLVED
OPERATION THROUGH FEDERAL
MANDATE rs PROBABLE FOR
SOME TIME TO COME.
ROADS MUST HAVE BIG SUMS
New Equipment Needed x!II Cost ST..
10000, ooo-Increased Freight Rates
Seem certain-Some War Time
Rules to Be Permanent
BY M p.

BY JAMES p. HoRNADAY.
Washington.-The railroad problem
seems far from solution. The roads
nave beer turned back TO their owners,
out 1t now seems certain that to a con,
siderable extent they will be operated
through mandate of the federal gov
for some time to come. The
interstate commission under
the new transportation law has broad
powers and 1t is beginning to exercise
them, not because 1t Is particularly
anxious to do IT, but because both the
railroads and the patrons of the trans
portation systems are asking ii.
The railroad executives who are
spending most of their time here in
consultation with the interstate com
merce commission say the properties
were turned back to their owners I'M
der most unfavorable conditions, They
point out that during the calendar year
l9lo, the roads under government OPP
Grafton accumulated a deficit of $685.
9I2,l36. During two months of that
year only, July and August. did the
roads show a surplus. For those
months receipts went ahead of ex-
penses $6,241 .4SS. The net loss to the
government during the entire period
OF federal operation of the railroads
was 500, 900, 1000, To which must be add
ed $2OO,OOO,0OO, the estimated cost of
the six months guaranty ending Sep
TENDER i this year. and the estimated
payment to the short lines of 5000
oOO. Claims growing out of deprecla-
ton aggregating $375.OOO, 900 have been
HE'D with the claims bureau which sue
ceeded the railroad administration.
New Equipment Needed.
Recently railway executives testified
before the interstate commerce COM
mittee of the senate that the roads, In
order to be fully equipped, must have
226,OOO new freight cars, 5000 new
passenger cars and 3,400 new locomO-
tives. The estimated total cost of this
new equipment is 81 ,~6O0.O00,0OO. Dur
ing the present calendar year the car
and locomotive shops, II Is asserted,
cal produce not over 100000 freight
cars, about 5000 passenger ears and
1900 locomotives. The total cost of
this new equipment would be $780,
100000. according to the testimony of
the railroad executives before the com
mittee.
Ii Is agreed all around that sooner or
later the federal government must pay
In full the enormous bill due to fed
eral operation Of the roads. On and
after September l OF this year the
roads must go 1t alone. In order to
make both ends meet they have plan
ned to charge the public more than It
was ever charged before, more than 1t
was charged during the war period,
for service. At this time no Increase
In passenger rates Is contemplated. but
the roads have united In asking for In
creases In freight rates that will aver
age not less than 20 per cent. These
have already been placed
on file with the interstate commerce
commission and the roads have let 1t
be known that within a short time they
Will file their new rate sheets. Unless
the Interstate commission
shall suspend these new rates they
will become effective at once.
New Freight Rates Seem Certain.
1t is generally understood that the
commission will permit the new rates
become effective, and possibly do so
without the Formally of hearings.
everybody concerned ap-
pears to realize that, unless the trans
,~ortation system of the country is to
20 into the discard, the roads must be
permitted to make enough money to
lift them, so to speak, out of the con-
lition in which they now find them
OF course, in the end, the ulti-
nate consumer has to pay the bill.
Ii seems reasonably certain that the
commission, in
he exercise OF the new powers grant
d 1t by the recent railroad legislation.
Ill make permanent some OF the regu-
atoms that were In effect durinl the
yar. One Of these regulations provld-
d for the common use of rolling stock.
nd the railroad executives say that
his common use Is necessary If the
pads are to serve the public in the
lost efficient way. The railroad act
that whenever any carrier is
DR. any reason unable to transport the 9
'afic offered II so as to serve the pub !
C properly, the interstate commerce '
may order the traffic dis Q
-ibuted to other lines In such a way I
) will promote the best service in the !
lterest Of the public. This Is now be- ?
done by direction Of the commits e
on to a considerable extent. a
There is also a provision In the new c
gislation which authorizes the COM
ission to require the use Of any ter II
inal facilities. including main track 4
tracks for a reasonable distance out $
de a terminal. by competing roads. p
his common use of terminals worked a
ell during the war and is again being In
It into effect. N
Civil Service Pensions Coming. 9
The governments first civil pen N
roll will be established in 80 d