The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-05-10
RAIL EXPENSES
MUST Be CUT
-CUMMINS.
-CUMMINS.
People Face Grave Situation II
Conditions Remain Perma-
nent, Senator Says.
BY H. X. REYNOLDS.
Internstienal News Service.


"The expenses Of the railroads
must be reduced il they are to be
successfully operated" Senator Cum
minis, of Iowa, chairman of the SEN
ate Interstate Commerce Committee,
warned today when his committee
opened an exhaustive investigation
OF the railroad situation.
aPEOPLE FACE GRAVE SITUATION
II present railroad conditions are 10
be permanent. the people OF the ma
ton face a very grave situation.
Senator Cummins said.
1--WE must try to ascertain whether
the $4,000, 00O, 900 received by the rail-
roads as operating revenue last year
were wisely. economically. and effec-
lively expended" Senator Cummins
told the railroad officials who were
present to testify.
1--WE have about reached our limit.
and the expenses OF the railroads must
be reduced II they are to be success
fully operated"
Senator Cumm)i announced the In
tention OF his committee to be OF as
sistance in clearing the situation and
asked for cooperation from the rail
road executives.
RATES NOT RESPONSIBLE.
Freight rates are not responsible
for business depression" declared
Julius Krutschnitt. chairman OF the
board Of the Southern Pacific. first
witness for the RAILROAD executives
before the committee today. 1T was
a general denation and fall In prices
from the heights to which they had
been driven by war conditions that
has caused 4 staEnation of business
throughout the world.
There 10 the strongest reason to
believe that the very great reduction
in traffic has been due to almost en-
tirely to general business conditions.
worldwide In their effects, and that
would have come IL there had been
no advance in freight rates.
"The Government. having strangled
the railroads Into something like
bankruptcy. st last removed it's hands
and permitted a sudden increase In
rates that should have been gradual
and started At least twelve years
ago" said Krutschnitt.
The percentage OF freight charges
to the average value OF commodities
shipped In the early part of 1921 is
only two-tenths of one per cent great
er than 1t was in 1914" the writer
said.
The labor bill OF the carriers in
1915, which was before the Adamson
law took effect, stood at 1,46867s,3s&.
Increase upon increase in labor cost
has occurred in the meantime. The
increase labor cost In 1920 over 1919
was 3s73.si4,e52.
The transportation crisis through
which the United states is passing 10
rot q condition peculiar to the rail-
roads Of the country, but Ia q situa-
ton Of world wide Incidents arising
from perfectly understandable causes-
most Of them having their origin In
the world war" r. Dewitt Cuyler,
chairman Of the Association of Rail-
way Executives, told the committee.
EsCH-CUMMINs ACT INDORsED.
Endorsement OF the transportation
act OF 1s20-the Esch-Cummins Law
will be a feature of the testimony OF
the railroad executives, their assocta-
ton having expressed the belief that
II Is "the most constructive measure
dealing with the transportation stu
alton which has been enacted into law
In the past fifteen years"
They will contend that the trans
portation act has not broken down,
that the present difhculties OF the
railroads are not due to the transpor-
tation act. and that the law itself
provides effective machinery for
remedying. in so far as may be done
by national legislation. the dimcu'-
ties in which the railroads now find
themselves.
The raiiroad executives plan to ex-
plain to the Senate committee the rea-
sons for extraordinary expenditures
during the past year, and IL Is their
intention to show that the
greater part OF the increased ex-
nenses OF 1920 were due to causes
over which they had no control.