Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-20
BREAKDOWN SEEN
IN RAILROAD POLICY
Questions Raised by New
England Lines Expected to
Bring New Attitude.
BY DAVID LAWRENCE.

Questions raised by practically all
the New England railroads before the
Interstate Commerce Commission in
dictate that the entire financial policy
Of Congress toward the railroads Of
the whole country. IS declared in the
transportation act. may break down
uaIess relief Of some kind is issmedi-
ately forthcoming.
Congress plainly said that tho rail-
roads Of the country should earn at
least ~ to per cent on the value Of
their property. Tae New England
railroads have cenfssssd before the
Interstate Commerce Cemmission that
they are earning nothing IS a whole.
and are insisting that all the other
railroads east Of the Mississippi
least $2A8oo. zee In revenue on freight
rates to enable the New England
lines to meet their deficit.
otAss. Chain Keasss.
But the other railroads. on the other
ing by many millions to earn the 6
per cent which CoAgrese intended. and
they claim there IL net going to be
any surplus revenue to divide with
the New England group Of roads. In
fact, the eastern railroads. which in
elude some OF the most important
lines of the coHntry. have been so
hard hit by the sharp decline in
freight shipments since October that
they contend they are earning less
than per cent on the value Of their
property, and a serious question has
been raised as to whether the Inter
state Commerce Commission win not
md 1t necessary to award another
general increase in freight rates In
order to carry out the command Of
at least 8 y per cent on their invest
ment.
The eastern railrua1s have further
contended that the New England nnee
ought to increase their local freight
and passenger rates within New Eng
hand in order to meet the emergency,
bvt New England shippers declare
they couldn't stand any such raise, and
particularly would they oppose any in
crease in rates which was sectional and
not gcneral in ita appAcation-
Hinges 81 Claan.
The whole coatrovsssy hinges on
that the Interstate Commerce Chm.
mission In valuing the railroads in the
eastern group included the property
Of tho New kAgtand ltnsa estimated
to be worth about &e4A ee0. zee, on
which tie government guarantee Of
6 Per cent weun eotitie them to over
htty million collars annually. But the
100000 was grouped with all the
other railroad properties in the east.
thereAy increasing the value OF ali
railroads east Of the Mississippi upon
which the Interstate Connmerce Com
mission hasea H. inereAss Of - per
cent in freight rates. Had New Eng
group. IT is estimated that the other
railroads would have obtained about
$20, 81. ~ le1A And New Engisnd's
railroads aeis that this. b transferred
R1ale9t RfsseDts Caso.
Of the New York. New Haven and
HArxfore KaalroAA. and now president
Of the board Of directpre ef the North.
eTn Pacaac railroad. has appeared he
fore the lntorstAte CommsFre COM
nissiea to saDDoxt The New England
CO.,. He staten enpAafjeaily that IL
The rsliTosas Of the cpuatry il the
New E1giaAA lines ere petmitted 10
- into the hAaaS of recGavsr, a.
TIE New 1agaand raitroAd YOpEassna9ls
tive0 here have told IL eommissioh
wtu eQrsay be ths esq II rslisf 10 Do.
! a + f,cv. ~ g 3,.s,r..a AZ. :.
scutlvse SedAsa Hsvafd Hliiott are
deeply eoneexnsd svsP the eutcpme Of
the New EaGaana case. ana while the
other nAilroaAg ease ef the Ataissip-
pa DO net fseh like diexing down into
their pocketa to help out the New
England rDaAs by permitting the di-
visions Of Joint freight ratea to be
Increased. navexthsleS they arc hop
ing that aeAae way may be found by
which The new. transportation act
may b made TO work. For they re-
sAss thss~a hreakdovn In tie sew
ssAment g1arAaty methed In one case
mieht sesfoualy affect the whole
structure Of desperation dnance
and might BE- especially SERIOUS at
this time Whan economic Conditions
generally arc - delicate stages Of re-
Adluetment.