The Washington times., 1921-01-02
SEES BIG YEAR
FORRA|LROADS
Better Management Will Offset
Any Possible Traffic Drop,
Parmelee Predicts.

Greater prosperity for the rail-
roads during the coming year as
the result of more efficient manage
ment is predicted by Julius II. Par
melee, director of the Bureau OF
Railroad Economics, in a statement
today. This will be the case, he as
serts, even should both freight and
passenger services witness a decrease
from the record-breaking traffic car
ried in 1920.
NEARLY RECOVERED.
"The railroads have about re-
covered from the confused conditions
which naturally followed the re-
linquishment or government control
and are In a position to develop such
efficient management as VIII more
than offset any'loss OF revenue from
a slight falling OF OF tranic which
may be expected" said Parmelee.
I'm addition, the full benefits OF the
Transportation Act have not yet made
themselves felt. for 1t has necessarily
taken the Interstate Commerce Com
mission some time to put the ma
chinery contemplated by that legisla-
ton into effect The Service and
Finance Bureaus were only organized
and the new schedule Of freight rates
has been in effect but four months.
1T has been left to the Interstate
Commerce Commission to decide at
what time and in what manner pro-
gram for consolidation OF the roads
provided by the Transportation Act
shall be laid down. AS hearings on
this matter are scheduled for the
early part OF this year. II can be
anticipated that decision VIII be
reached during 1921.
ALL RECORDS BROKEN.
"The year 1920 broke all records.
the freight traffic being greater than
that OF the previous year by ten bill
lion ton miles. The passenger traffic
was also in excess OF the previous
record.
"The question then is. will this
record breaking traffic continue in
1921? The answer is somewhat a
matter OF opinion. but my conviction
is that neither the passenger nor
freight traffic will be so large this
year. This opinion is based upon the
fact that the last two months In 1920
showed sharp decline which I'M
doubt eddy reflected the increased
schedule of rates and the general
business depression.
What, then, will be the effect on
tho financial provision OF the rail-
roads? Every report which has
reached me shows that the ilroads
are counting largely on such eco
nomy. 1t cannot be brought about
Through any decrease in wage rates,
because these have been fixed under
Government supervision. but will be
accomplished partly by increased
efficiency, partly by reduction in
the number of employees and partly
| by lcssened maintenance.
at is clear to all that only through
a direct cut in expenses can the rail-
profits in 1921. One factor which
will be great assistance In this
respect Is improved provision for
credit. or the three hundred million
dollar loan fund established by the
Transportation Act and placed under
control of the Interstate Commerce
Commission. less than one-third was
used during the past year.
"The availability of the two hun
bred millions of dollars remaining is
OF great Importance, for every dollar
loaned by the commission to assist
railroads to purchase equipment
means at least two more dollars
raised by the roads on their own
credit. This six hundred million dol
lars of credit, which will enable the
replacement OF WORKOUT equipment
and rolling stock, should be the great
est factor OF all in more efficient man.
agement