The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-02-26
ROADS HARD HIT
President of Santa Fe Tells of
Present-Day Problems.
Difficult To Get Money for I'M
prOvements, He Says.
SPEAKS AT CHICAGO MEETING
Railroads Are Facing Entirely
Changed Conditions.
Determined Effort on Part of
Public to Economic.

The railroads of the United States
are "up against it," and the trans
portation act of 1920 has not started
them on the way to the solution of all
their problems, according to w. b.
Storey, president of the Santa Fe, who
spoke on The Railroad Situation To-
day." at recent dinner of the West
tern Society of Engineers, held at
Chicago.
The financing of future capital eX-
penditureS-how to get the money to
make the necessary extensions and re-
pairs of the future, is the biggest ques-
tion which is being asked of railroad
executives today, President Storey in
dictated.
The history of railroading in the
United States, since the beginning of
the European war; he said, passed
thru a remarkable chapter. resulting
in absolutely changed conditions. UP
to that time we had been in what l
might call a period of experimental
governmental control These expert
ments had begun by the assumption
on the part of the government OF
limited dominion over rates. This had
progressed from time to time, each
step tightening the line of control
until finally the process exercised re-
tarGing effect on the growth and de-
velopment of the country. Then came
the war with it's wonderful increase in
the industries of the country, ana
the absolute demonstration of the fact
that the railroads had been starved
TO such a degree that they were not
able to function properly; then the
entering of this country into the war,
the taking over of the railroads by
the government, and finally. the
change in the attitude of the public
toward the whole transportation ques-
tion-all these steps leading up to
the passage of the transportation act
of 1920, designed to control the rail-
roads, but at the same time to remove
the hampering influences that had re-
suited so disastrously.
THAT law was passed nearly year
ago, and it may be of interest to looE
at the situation today and see what
has been accomplished, what remains
TO be done, and the outlook for the
future.
Increases In Rates.
1.-THE new law provided for In
creases in rates adequate to cover the
cost of operation and to provide SUI
ficlent for interest. 1t recognized that
there must be an interim while the
rates were being studied, and hence 1t
provided that the returns of the roads
should be at a fixed figure for six
months. 1t provided a method to set
tie labor disputes. in an endeavor to
remove the constantly impending dan
ger which had formerly existed OF
possible nationwide strikes. In its
effort to solve. the problems presented.
congress changed in a measure the
functions of the interstate commerce
commission. Formerly this had been
q body &c protect the public from the
railroads; it now was charged with the
additional task of protecting the rail-
roads from the public. In general
terms, congress put upon the inter-
state commerce commission the re-
;;prusibilitv of making private control
Of la ilrn dS 10 a
that beca Use of this law the commits
sion has changed it's attitude toward
the railroads to conform to the new
conception as seen by congress, and
has done everything possible to make
the law n success.
n Large Deficit.
1.-THE act of the commission in rails
ing rates has been probably the most
important thing which has happened
TO the railroads Of this country, out
eide of the taking over of the roads by
the government. with all that went
with it. A very large deficit had been
brought about by the constantly in
creasing costs due to higher wages
and greater unit prices for all sup
pies, without any commensurate in
crease in rates.
1.-THE only possible way of meeting
age increase that would apply to each
region into which the country was di-
vided.
such large increases must neces-
sarily be very far reaching in effect
They must necessarily check, to q GER
tain degree, the amount of goods
transported. For instance a certain
manufacturer of goods in Kansas. who
formerly sold d part of his output in
New England. finds that market cut
off because English goods are now
able to crowd out his product in that
territory. While it is not believed that
the increase in rates has caused the
slump in business turnout the coun-
try, yet it may have had some influ-
ence in that direction, and the slump
in business has decreased the volume
of transportation far below that of
1919. with the result that the railroads
are falling far short of the necessary
amounts to enable them to pay their
interest, and in many cases are finding
difficulty in meeting their bills. One