The New York herald., 1921-04-30
NEW ENGLAND RAIL
RATE JUMP OPPOSED
Governors Committee Does
Not Believe Advance Would
Remedy Situation.

BOSTON, April 29.-The proposal OF
the New England Railroad heads to in
crease freight and passenger rates i'm
mediately by 10 per cent. 10 relieve their
financial plight was disapproved by the
joint committee appointed by the Gov
ernors ofthe New England States. The
report of the Governors, signed by each
OF the thirty members OF the composite
committee, was made public to-day. II
said that the railroad executives had
failed to show that the desired advance
would remedy the situation or that by
such an increase New England interests
would not suffer.
AS constructive recommendations the
committee said In part:
Il. The Federal Government should
be asked to give assistance to the rail-
roads in their extremities, not as an act
Of paternalism but az an act of justice.
The obligation of the Government to
return the railroads In the same condi-
tion In which they took them over has
not been fulfilled. The period Of Fed
eral guarantee should be extended (re-
troactive from September 1, 1920) and
arrangements should be made at once
for the payment Of the amounts claimed
by the railroads to be due them from
the Government, leaving exact deter
minaton to be made afterward. We
recommend that a memorial be ad-
dressed to the President of the United
States, pointing out to him the present
conditions OF the railroads in New Eng
land and asking him to take prompt
measures to fulfill the obligations OF the
Government.
"2. We are convinced that the prevail
ing wage scale and the terms Of the
so-called national agreements have been
large factor leading to the present
financial condition of the railroads. We
believe that Congress should consider
whether the present method of settling
labor disputes is entirely adequate, and
II not in what respect 1t may be reme-
died or altered.
"3. We have not undertaken to make
an analysis Of the efficiency OF the man
agement Of the New England railroads
In the interests of the railroads them
selves, we believe that the Interstate
Commerce Commission might we'll avail
Itself of its authority and make without
delay such investigation az may be de-
sirable toward permanent solution or
the railroad difficulties.
ITO carry out the foregoing recon-
mendations we suggest that this COM
nittee be authorized to present these
CONSIDERATIONS 70 liic IIcoiocht VI ehO
United States, the Railroad Labor
Board and the Interstate Commerce
Commission. and to take such further
action as may be necessary"
The committee reported that it found
that the financial condition OF the sep
arate roads was not the same. although
ell were suffering from decrease OF
revenue The Boston and Albany. a
leased line Of the New York Central.
took no part In the request for advance
in rates. The Rutland Railroad In
January and February showed deficit
of $121.091 and the committee said 1t
apparently could continue to operate for
the present without serious difficulty.
The Bangor and Aroostook asked for an
increase Of rates only on one-half Of
per cent. Of its entire business.
THE operating experience of the other
railroads." the commission reported, sis
indicated by the fact that for the six
months ended February 2s. 1921, def
icits after payment Of fixed charges
rave been as follows: Maine Central,
ssf5.359 Central Vermont. ss1s,652; ;
Boston and Maine. $s.292.s4s; New
York, New Haven and Hartford, s11,-
212.o22.
"It appears improbable that the rate
of deficits which has existed for the
iast six months will continue for the
next six months"
In It's summing up the committee said
There Is grave doubt in our minds
whether the proposed increase would
produce the amount OF revenue which
the railroad executives estimate and
which would be really necessary for any
effective relief. There Is. Of course, a
point where traffic will not move.
"The idea OF New England as q dis
tinct district for rate making purposes
has been resisted heretofore by the New
England public, will be resisted here
after, and ought in our opinion. to be
objected to upon every occasion when II
Is proposed. 1t seems to us that neither
New England railroad executives nor
any other persons in the New England
community ought TO propose or assent to
scheme Of rate making which will so
surely react to the disadvantage Of New
England industry. and likewise of the
railroads themselves. In all essential
respects there Is no New England rail-
road problem as such. It Ia railroad
problem for the whole country"