New-York tribune., 1920-10-14
Rail Efficiency Increases
Production, Says Executive
AMOUNT of Grain, Coal and Manufactured Articles
inat aan BE Put ON Market Depends Upon Kind
OF transportation, Asserts Rock Island Head


that territory. The railroads along
whose lines they were opened already
were handling about all the business
they could. In consequence there have
been times when it has been simply
impossible for the railways to handle
all the oil produced, with the result
that large losses, direct and indirect,
nave been suffered both by the pro
duGers and the consumers of oil.
The future development of the
Southwest will be dependent upon the
construction of substantial amount
OF new railroad mileage and the en-
Iargement of the capacity of the lines
already serving that territory. Like
some other sections of the country. it
has practically reached the point where
1t must have more railroad transporta
ton or see the development of its re-
sources and the growth of it's bust
ness slowly cease The practical ces
satlon OF the development of it's rail-
roads some years ago unquestionably
was due to the fact that, not only had
inc construction of new railroad mile
age been made wholly improbable, but
the operation of the lines already in
existence had reached the point where
1t was being conducted at loss in
stead of profit, with the result as
nave already said, that most Of the
large railways serving the territory
became bankrupt. In the past a large
part OF the new railroad mileage of the
country has been built by small in
dependent companies as specnlative
venture. The day Of that kind of rail-
ROAD construction is almost, if not en-
urely. past. The new railroad mile
age OIL the future must, under our pres
ehe Gnu system of regulation, be built with
1he expectation that no speculative
pront VII be made on the investment
III II. Whlle large. speculative profits
cannot be expected, there seems rea-
son to hope that the policy of regula-
'lon represented by the new Federal
lallroad law and the recent decision Of
the Interstate Commerce Commission
Will result In making it reasonably GER
tam that fair return will be earned
upon capital invested in new lines ex
tended from territories which already
are developed into Immediately sur
rounding territories having natural re-
sources indicating that they will justi
~ the building of extensions. Under
the conditions existing, this means
that romance for the construction of
additional railroad mileage in future
must be placed chiefly upon com
panies owning and operating the exist
ing trunk line railroads.
Inc southwest, like other sections of
the country, must rely chiefly upon the
present railroad companies to furnish
1T the new lines it needs as we'll as in
creased service in the RAILWAYS already
IN existence.
Real Revival Expected
The Southwestern lines were granted
the same advances in passenger train
charges as the other railways and an
advance Of 35 per cent in freight rates.
They contended that they should be seq
regated from other roads and given
relatively larger advances in freight
rates than the other Western lines. An
effort probably will be made to help
them further by giving them more ia
vorable divisions of through rates ap-
plying both over their own rails and
those of other railways.
OF course, it is too early to say just
how good will be the effects produced
upon the financial position of the
Southwestern lines by the advances
in rates. 1t does seem, however, that
they should in time cause a real re-
vival Of railroad development in that
the Southwest are susceptible of large
growth. With larger facilities, higher
rates and an increase in traffic it would
appear that the Southwestern railways
may reasonably hope for greater pros
perity than they have enjoyed for some
years.
However, ] recognize the fact that
their future is in the hands Of the pub
lie, and especially in the hands Of the
people Of the Southwest. Public senti-
ment in that section is more friendly
to the railways now than it has been
in many years before. The manage
ments Of the railways are determined
to spare no effort to give the public a
service which viii justify the friend
ship and confidence it is now showing
for them. In the circumstances the
future of the railroads and Of the in
dustries and people of the Southwest t
looks brighter than it has for a long
time before
The benefits of an Improvement in
transportation conditions and an in
crease Of production in the Southwest t
VIII not be confined to that section.
They will make the Southwest better
market for the products of other sec
tions; and they will enable the South
west to supply other sections with
larger quantities of cotton, grain, vege-
tables, oil, lumber and other products,
thus helping to reduce the general cost
of living.
Copyright, 1920, by The Mcclure News
paper Syndicate.
This is the fourth of a aeries of
tareiue articles on t1uNSDOrfutiOn nrob-