The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-04-28
Condition of Railroads Is En-
couraging, w. B. Storey Says.
Freight Car Leadings Show
First Increase in Many Weeks.
WAGE CUT MEAN RATE DROP
Business Depression Is Result
of Teo Much Production.
Santa Fe President Doesn't
Think Shops Will Close.

If we were sure that traffic would
| come back. immediately, to the
volume upon which was based the in
creased freight rates granted in Au-
gust, 1920, we could keep the railroads
in operation without decreasing
wages" W. B. Storey, president of the
! Santa Fe. said today.
| But we are not at all sure that the
traffic is coming back to that point.
If it does, it will require some time to
| do so.
| 'iIf the traffic does came back. and
we also succeed in getting wages low
cred. we shall be able to lower the
| freight tariffs"
r. r. Conditions Improving.
| Railroad conditions have in very re-
/ cent days become slightly more en-
couraging as to volume of traffic,
President Storey said. THE records
of freight, loadings, which have stood
| still for weeks past, have showed a
! slight increase.
a"What is the matter with the rail-
roads? The same thing that is the
| matter with all other business. A
| business depression exists, and when
! business is bad generally, the rail-
roads, of course, suffer also.
!
Manufacturers went ahead manu-
featuring goods at full speed, after
! the urgent necessity for production
/ had ceased. As a result stocks of
! goods for which there was no demand,
piled up, and there were no takers. +
! s"The depression is not the result of
psychology or the so-called buyers
strike 1t is the result of having more
goods on hand than there is demand
for.
people will not buy on a falling
| market, and when the manufacturers
/ saw that they were overstocked they
! closed their factories, threw people
out'eof employment. and still further
curtaileds the buying power of the
country.
7 have every hope that the situa-l
4 tiq& is going to be ad djusfedl,s sit is a,
II VERY peculiar state of affair. The
! whole world was engaged for four or
4 five years in war, and did not produce
the things which we of the United
States, and the rest of the world as
/! well, are in need of. Now, when the
| demand for these things is great, the
financial situation is such that there
seems to be no. one able to go ahead
and produce them.
/. European Credits Would Help.
1.-The financing of European credits
1 would undoubtedly result in benefit
to American business. There is cotton
for instance, in the south, which is
a loss to the producers because the
! people of Europe are not able to pay
for it.
Whether some system of financing
the European countries so that they
may buy the products of the United
States exists or not, is not for the
railroads to say. If. it can be done,
it will be of great benefit to the coun-
try at large.
;. VIII Get Back to '.NormaIcy."
-
time, to what President Harding calls
normalcy There is no doubt about
that. 1t cannot be expected tho that
we will get back to the condition
which obtained here during the past
four years. when we were working
at an abnormal strain"
Can't Talk Extensions Now.
Railroads are not able to contem-
plate or to consider extensions or new
lines under the present lowering as
pect of the financial skies. President
Storey declared we have one
branch line into which we have al
ready put a million dollars, and we
are not able to finish it at the present
! time We canpot talk of extensions
now.
The payment of a portion of the
government guaranty due as result
of the functioning of the. transporta-
ton act of 1920 has been of some as
sistance to the railroads in paying
bills for material, President storey
says.
I'VE are making enough money to
pay current expenses, as it is. but the
government guaranty is needed 10
meet these material bills
: Close Shops Here?
The rumor that the Santa Fe shops
} at Topeka are to be temporarily
: closed, President Storey said he be-
lieved unfounded. altho he asserted
Ii 1f h
'The matter would be entirely in
the hands of Vice President A. G.
e Wells" President Storey said. But
S he has not consulted me about any
thing of the sort. as | am quite sure
< he would have done if such a move
/, were contemplated
May Lay Off More Men.
'I know that other roads have shut
down their shops completely for Pc
I riods of a week or so, in order to cut
4 down the amount of money they were
required to pay out 1t might be
y and that is what has given rise to the
rumor.
Il am not at all sure. however. that
we are not going to have to lay of
more men,"
Officials who come to Topeka witt
President Storey, or who meet hilr
, when his car arrives here, know thai
they need not have their cars at the
! station. President Storey likes tt
walk and when he lands at the Santa
= Fe station, the ten block constitutions
L to the Santa Fe general offices look
just right to him. He takes an easy
Swinging. natural gait which covers {
: good deal of ground and Is not fatigu
e ing.
What do you want me to say?'
! was his answer TO the request for ar
e interview. and without waiting for al
answer to his counter-question. wen
e straight to the heart of matters which
the public wants TO know about In