The Washington times., 1920-08-04
RATE LIFT WILL CUT
C.L.,SAYS WILLARD
3. and o. Head Expects Re.
newaI Of Trade Activity, with
Ultimate Price Reductions.

BALTIMORE, Aus, t.-psnisi VIII
lard. president OF the Bsltimors and
Ohio railroad. believes that the rate
Increase granted the railroads eVsntu-
ally will mean a decrease rather thsn
an Increase in the cost OF living.
81 believe that the decision, instead
OF increasing the cost OF living, VIII
have Just the opposite effect SAID
willard In an interview In chicago
yesterday, according TO a dispatch 10
the Baltimore sun. THE rate de-
cision will bring about renewed ac-
tivIty In the development or our ran
roads, which will be reflected In the
movement OF an enlarged volume OF
business, and this should eventually
decrease living costs
In industrial and business circles In
Baltimore yesterday II was suggested
that in passing the Increase on TO
the public" some dealers might be
tempted TO increase their profits. But
II was believed that eventually this
situation would be righted and that
incidental increases In retail prices
would be overwhelmed in the greater
supply OF marketed goods brought
about by smoother freight handling
and quicker transportation.
BENEFITS WILL COME SLOWLY.
so far as hopes for immediate bet
terment of railroad service are con-
cerned, o. II, Nance. president OF the
Maryland and Pennsylvania railroad.
declared that no visible effect could be
expected during the balance OF this
year. He predicted that the public
would not begin to see what they
were getting for their money until
1921. willard said much the same
thing In his statement In Chicago.
THE day of miracles has passed" ="
willard sAid."and too much ought not
to be expected at once from the rail-
roads. IL will not be possible. for in
stance, for the railroads to immedi-
stely enlarge their facilities because
time is an element, but renewed ac-
tivities in that direction will be ap-
parent. 1t 10 generally recognized
that railway facilities at the present
time are inadequate. And the only
immediate result that can be expected
from the decision Saturday Is re-
newed determination on the part of
the railroads as q whole to obtain. by
results from existing facilities. The
railroads already have pledged them
selves to such a course"
an my opinion" willard continued.
Congress. by enacting the transpor-
tation act of 1920. made the continua-
ton OF private ownership and opera
ton OF railroads in this country pos
sible. The intent OF Congress has
been fairly interpreted by the Inter
state Commerce Commission. Whether
private ownership and operation OF
the railroads actually does continue
to be the established policy in this
country will now depend wholly upon
the railway managers themselves.
ROADS MUST SHOW RESULTS.
"If the railroads, under private own
ership and with a basis OF rates suff-
cient to yield an adequate income, are
able to satisfy the public and to def
nitely demonstrate that private own
ership provides the public with better
transportation and, in the long run.
with cheaper transportation than can
be look ed for under any other system.
then the people are going to be salts
fed with the present system. AS I
say. private ownership and operation
Of the railroads now depend on the
actions OF the railroad managers.
Undoubtedly investors will want to
see the actual results obtained from a
few months operation on the new ba-
sis of rates before definitely fixing
their views concerning securities as
investments, but even so, ] believe the
effect OF the rate increase will be seen
in an immediate appreciation OF rail-
road securities.
with the adjustment OF railroad
wages and the adjustment OF rates
and charges definitely settled, I am
very hopeful of the hnturc," willard
concluded.