Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1920-06-08
RAIL PROBLEM
!. IS NOT SOLVED
OPERATION THROUGH FEDERAL
MANDATE is PROBABLE FOR
SOME TIME TO COME.
ROADS MUST HAVE BIG SUMS
New Equipment Needed Will Cost ST.
60o, COG, oo0-increased Freight Rates
Seem Certain-Some War Time
Rules to Be Permanent.
BY JAMES 2. hoRNApAY.

Washington.-The railroad problem
seems far from solution. The roads
have been turned back to their owners.
but 1t now seems certain that to a con-
siderable extent they will be operated
through mandate of the federal gov
ernment for some time to come. The
interstate commerce commission under
the new transportation law has broad
powers and it is beginning to exercise
'hem, not because ii is particularly
anxious TO do it. but because both the
railroads and the patrons of the trans
portation systems are asking it.
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
1919, the roads under government OPP
GRAFTON accumulated deficit Of $685..
972, 1856. During two months of that
year only, July and August, did the
roads show surplus. For those
months receipts went ahead of eX-
penses 1924 ,4SS. The net loss to the
government during the entire period
of federal cperat ion of the railroads
was 1905, 900. OOO, to which must be add
ed $200,0O0,000 the estimated cost of
the six months guaranty ending Sep
TENDER l this year and the estimated
payment to the short lines of $25,0OO,-
900. Claims growing out of deprecia-
ton aggregating $375, 100000 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
mittee of the senate that she roads. in
order to be fully equipped, must have
226,O00 new freight cars, 5000 new
passenger cars and 3,4O0 new lOcomo-
tives. The estimated total cost of this
new equipment is 81 0O,OOO,0OO Dur
ing the present calendar year the car
and locomotive shops, it is asserted.
can produce not over 100000 freight
cars. about 5000 passenger ears and
1000 locomotives. The total cost of
this new equipment would he $3.50
000000. according to the testimony of
the railroad executives before the com
mittee.
1t 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 20 it alone. In order 10
make both ends meet they have plan
ned to charge the public more than it
Was ever charged before, more than it
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
crcaSeS in freight rates that will aver
are not less than 20 per cent. These
applications have already been placed
on file with the Interstate commerce
commission and the roads have let it
he known that within short time they
will file their new rate sheets. Unless
the interstate commerce commission
shall suspend these new rates they
viii become effective at once.
New Freight Rates Seem Certain.
1t is generally understood that the
commission will permit the new rates
10 hecCme effective and possibly do so
without the formality of hearings.
Practically everybody concerned APP
pears to realize that unless the trans
pOrtation system Of the country is to
90 into the discard, the roads must be
permitted to make enough money to
lift them, SO TO speak, out of the con
dition in which they now find them
selves. OF course. in the end. the ulti-
mate consumer has to pay the hill.
1t seems reasonably certain that the
interstate commerce commission, in
the exercise of the new powers grant
ed il by the recent railroad legislation
will make permanent some of the regu
lations that were in effect during the
war. One of these regulations prOvid-
ed for the common use of rolling stock,
and the railroad executives say that
this common use is necessary if the
roads are to serve the public in the
most efficient way. The railroad act
provides that whenever any carrier is
for any reason unable to transport the
traffic offered it so as TO serve the pub
lie properly, the interstate commerce
commission may order the traffic dis
trihuted 10 other lines in such a way
as will promote the best service in the
interest of the public. This is now be-
ing done by direction of the commits
sion to a considerable extent.
There is also q provision in the new
LEGISLATION which authorizes the com
mission to 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
put into effect.
Civil Service Pensions Coming.
The governments first civil pen
sion roll will be established in 50