Evening journal., 1921-05-23
Rail CRISIS
IS PASSING
Willard, Guyler, Krutt-
schnitt and Smith File
Views With Senate
B. AND o. PRESIDENT
SEES LOW RATES

WASHINGTON. May 2s.-The be-
lief that the railroad crisis is passed
and that existing problems will ad-
just themselves is expressed in state
ments just filed with the Senate In
terstate Commerce Commission by
T. Dewitt Cuyler, chairman Of the
Association OF Railway Executives:
Julius Kruttschnitt, chairman OF the
Board of the Southern Pacific Com
pany; Daniel Willard, president OF
the Baltimore and Ohio Railroad.
and A. II. Smith. president of the
New York Central Railroad. All OF
the statements contain an optimistic
note as to the future Of the carriers
under private ownership.
Il believe that the situation is
clearing" declared Mr.. kruttschnitt.
"and the readjustment of operating
expenses will produce a m u C n
brighter outlook and permit adjust
ment Of rates with consequent bene-
fits to commerce and industry gener-
ally"
Mr. Kruttschnitt added that in his
opinion the transportation act was
one Of the best pieces Of legislation
ever enacted by Congress and de-
clared that he would be extremely
reluctant to see it modified or
amended"
Mr.. Willard pointed out that be-
fore the war. when income and eX-
pense bore a proper relationship. it
was not necessary to raise rates be-
yond what the traffic would bear and
that it will not be so now when this
relationship is again reached
"The transportation act" he said,
makes future successful operation
OF railroads possible as privately
owned and operated properties. Sub
stantiai reductions will be secured in
the price Of fuel for 1921. and other
material prices are showing "A grad
ual decline and as supplies now in
stock are consumed and replaced
with material purchased at lower
figures there will be reduced charges
to expense. which will be reflected in
lower operating costs"
Mr.. Cuyler's statement asserts that,
feeling as we do that the world had
definitely turned the corner of its
most acute depression. so we feel
that the railroad situation has like
wise passed through its darkest
hours aud has now definitely turned
for the better"
Time and patient effort will cure
the ills Of the railroads, President
smith says in his statement
Railroads must make sharp reduc-
lions in their operating expenses, II
nNa "a D tfsr
are to be re-estahlished, a commit
tee Of the Chamber of Commerce Of
the United States. which has made a
survey Of the transportation question,
declared tonight in a statement
Necessity Of practicing strict econ
omy was urged. the committee point
ing out that "readiustment Of sale
aries and wages is in progress in all
other industries. and il is TO be as
sumed that railroad wages in the
future. is they have in the past will
bear an equitable relationship to
wages in other activities"
The committee was of the opinion
that the grouping or consolidation OF
railroads ultimately must be accom-
plished. II also declared that Fed
highly desirable.
No additional legislation on the
railroad question. however. was need
ed at this time, the statement said.
as Il was advisable TO have further
experience with the transportation
act before attempting TO modify Il.
The committee stated ii had come
to the conclusion that "even with i'm
creased traffic that will come with
the gradual return Of business pros
perity. the business Of railroad trans
portation cannot be restored to
profitable basis until the present higl
operating expenses are cut down"
1T is recognized by the railroads,
the committee report continued
that rates and fares cannot be in
creased"
Stressing the need for more eco
nomic methods OF operation. the com
mittee said the first step toward tn
accomplishment of economies shoul'
be greater cooperation among tn
carriers in the performance Of theii
services. In terminal organization
and management, the report stated
the cooperation of the carriers wal
especially urgent