Evening star., 1921-05-16
1920 RECORD HELD
BAD FOR RAILROADS
Cannot Last Long, Cummins
Says, Unless Improved
Showing Is Made.

American railroads. eff they can't do
better this year than last, won't last
very long," Chairman Cummins, Of the
Senate interstate commerce commit
toe. told julius Kruttschnitt, chairman
Of the Southern Pacific board. today
during the railroad investigation now
in progress. The witness agreed.
Senator Cummins endeavored to
show that falling prices Of materials
used by railroads was reducing costs,
but Mr. Kruttschnitt said he did not
have compiled statistics on the sub
! ject. Steel rails, the largest item in
maintenance material costs, had not
decreased at all, he said, but had in
creased in price during the last two
years.
Daniel willard Called.
Daniel Willard, president of the
Baltimore and Ohio, was called to the
stand, and Mr.. kruttschnitt excused
temporarily
"My views are generally in accord
with Mr. Kruttschnitt's on the rail-
| road situation" Mr.. Willard began.
''The situation Of the railroads today
differs from that in other business only
in degree, and is due to economic con-
| ditions.
The railroads while under federal
control were operated at a loss, the
| deficit being made up out of the Treas
! ury, and not covered by increases OF
rates and passenger. fares. This has
led to a great deal of confusion OF
thought on the whole subject"
Government ownership as a wal
measure, Mr. Willard said. he did no,
crfticise, but standards of operation, set
up before and after the test, demon
str3ted that operation by private own
ers was more efficient and economical
He cited car movement and leading
| statistics as evidence on the point.
"Unification Of facilities was work
ed out under private ownership Mr.
| Willard continued. There has beer
railroads, and the provision of the
transportation act assuring rates high
enough to pay a return on the capita
mSy have seemed merely academic
but l believe the knowledge that
roads would ultimately secure this
| has sustained confidence among in
| vestors.
Complex Labor Problems.
| THE labor provisions of the act
| have given assurance of proper con-
| sideration to railroad labor organi-
cations, though complex problems re-
main to be worked out.
The properties were returned to
! their owners in 1920, in a somewhat
| depleted cOnOlLlon, que IN part 10 War
| conditions. AS to cars, l understand
that in 1918 orders were Issued to keep
/ them in safe condition for running
but to defer repairs on holes in roofs,
sides and other minor points. That
resulted in reporting only small per
centage of cars in bad order, but
when we got them back, it was found
that a very large proportion were not
in condition to carry grain and other
products.
THAT was tustifiable in 1918, to save
men and material for war. Still, in
| 1919. after the war was over. orders
went out to reduce maintenance. The
/ same policy was kept up and the re-
! suit was we got back the roads with
only per cent of rolling stock Of
| ficially reported as in bad order. while
| in fact we found 40 per cent untitled
! to carry grain and other materials.
| We found also so per cent of the
| freight cars located on other roads
than the one which owned them, away
| from repair base.
They could not be taken bcak until
| the rush of business subsided this
winter. This is one of the reflections
| Of war conditions still with us"
Now Being Kept in shape.
| Cars are now being kept in shape
| Mr.. Willard says. Committee members
queried him on the figures of bad
order cars, and he repeated the state
| ment that q special inspection Or
dered last fall showed go to 40 per
cent of 100000 box cars examined
| were found in bad order"
The condition now is still IL per
cent of cars in bad order" he said,
as against an allowable percentage
| of per cent
On the Baltimore and Ohio, he said,
$500 cars had been sent to private
shops during 1920 for heavy repairs.
and 5000 in their own shops because
We couldn't clean up
His road still had 5000 needing
serious repairs. though we have 20
per cent on our own lines where we
can inspect them and provide re-
pairs
1T seems to me it is a very vital
! thing to this committee to ascertain
how much is due the roads from the
government for allowing this CON
dItion." Senator Stanley, democrat,
| Kentucky, observed
Mr.. Willard said the determination
| was very difficult.