Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1920-06-16
OPERATION THROUGH FEDERAL
MANDATE is PROBABLE FOR
SOME TIME TO COME.
ROADS MUST HAVE BIG SUMS
New Equipment Needed VIII Cost ST.
100000, 0oo-lnereased Freight Rates
Seem certain-some Mar Time
Rules to BE Permanent
BY JAMES p. HoRkApAY.

nave Deen turned back To their owners.
but IL now seems certain that TO a con-
siderable extent they viii be operated
through mandate OF the federal gov
eminent for some time to come. The
interstate commerce commission under
the new transportation law has broad
powers and il Is beginning 10 exercise
them. not because Il Is particularly
anxious 10 do Il. but because both the
railroads and the patrons of the trans
portatior 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 10 their owners I'M
der most unfavOrable conditions. They
point out that during the calendar year
1913, the roads under government OPP
Grafton accumulated a deficit of $685.
972l3o. During two months of that
year only. July and August. did the
roads show a surplus. For those
mouths receipts went ahead of ex-
penses 1921. 4Ss. The net loss 10 the
government during the entire period
OF federal operation OF the railroads
was S905.O00, 600. to which must be add
ed $200.O000OO. the estimated cost OF
the six months guaranty ending Sep
TENDER l this year. and the estimated
payment to the short lines Of $25.OOO,-
900. Claims growing out Of deprecia-
ton aggregating 1915. 900 900 have been
filed with the claims bureau which sue
ceeded the railroad administration.
New Equipment Needed.
Recently railway executives testified
before the interstate commerce com
mlttee of the senate that the roads. In
order to be fully equipped, must have
226,O00 new freight cars, 1900 new
passenger cars and 3.4OO new locomo-
tives. The estimated total cost Of this
new equipment is $1.600.O00,0OO. Dur
Ing the present calendar year the car
and locomotive shops. IL is asserted.
can produce not over 100000 freight
cars. about 5000 passenger cars and
1000 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 ! of this year the
roads must go IL alone In order to
make both ends meet they have plan
ned to charge the public more than IL
was ever charged before, more than il
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
applications have already been placed
on file with the interstate commerce
commission and the roads have let II
be known that within a short time they
will file their new rate sheets. Unless
the interstate commerce commission
shall suspend these new rates hey
will become effective az once.
New Freight Rates Seem Certain.
II Is generally understood that the
commission viii permit the new rates
20 become effective. and possibly do so
without the f1-mality of hearings.
Practically everybody concerned APP
pears 20 realize that u"'ess the trans
nortation system Of th country Is to
20 into the discard. the roads must be
perrnltted 10 make enough money to
uft them. so 10 speak, out OF the con-
dltion in which they now find them
selves. OF course. In the end. the ulti-
mate consumer has TO pay the bill
II seems reasonably certain that the
interstate commerce commission. In
the exercise Of the new powers grant
ed II by the recent railroad legislation,
will make permanent some Of the regu-
lotions that were i'm effect during the
war. one OF these regulations prOvid-
Cd for the common use OF rolling stock.
and the railroad executives shy that
this common use Is necessary IL the
roads are 70 serve the public In the
most efficient way. The railroad act
proyides that whenever any carrier Is
Tor any reason unable to transport the
traffic offered Il so as 10 serve the pub
lie properly. the interstate commerce
commission may order the traffic dis
trlbuied 10 other lines In such a way
as viii promote the best service in the
interest Of the public. This Is now be
ing done By direction Of the commits
sion 10 n considerable. extent
There is also a provision in the new
legislation which authorizes the com
mission 10 require the use of any ter
minal facilities. including main track
or tracks for a reasonable distance out
side a terminal. by competing roads.
This common use OF terminals worked
well during the war and Is again being
,.,f fnfp effect