Norwich bulletin., 1921-04-30

New England railroad heads to increase | | freight and passenger. rates immediately | | by 10. per cent. to relieve their financial plight was disapproved by the joint com | mittee appointed by the governors of the New England states. The report 10 the governors. signed by each of the thirty members of the composite committee. was made public today. IL said that the rail road executives had failed 10 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:
 i. The -ederal government should be asked to give assistance to the railroads in their extremeties. not as an act of pa- ternallsms but as an act of justice. The obligation of the government 10 return the railroads in the same condition in which they took them over has not been fulfilled. The period of federal guarantee should be extended Retroactive from Sept 1. ls2oJ and arrangements should be made at once for the payment of the amounts claimed by the railroads 10 be due them from the government. leaving exact determination 10 be made after wards. We recommend that a memorial be addressed to the president of the United States pointing out to him the present conditions of the railroads in New England, and asking him to take prompt measure sto 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 a large factor leading to the present finan- Q cial condition of the railroadG We be- : lieve that congress. should consider
 whether the present method of settling labor disputes is entirely adequate. and
 if not, in what respect .l may be reme- died or altered
 .. 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 com
 merce commission might well avail itself of it's authority and make. without delay. : such investigation as may be desirable
 toward permanent solution of the rail-
 road difficulties.
 To carry out the foregoing recommend ations, We suggest that this committee ! be authorized 10 present these considera- tions 10 the president Of the United States. the railroad lzbof boafd. and the
 interstate commerce commission. and 10
 take such further action as may be neces- 2 sary.
 The committee reported that 1t found that the financial condition of the sepa- e rate roads was not the same, although all
 were suffering from decrease of revenue The Boston and Albany. a leased line of = the New York Central. took no part in Il the request for advance in rates The . Rutland railroad in January mad Febru- y ary showed deficit Of sI2I.0sl and the
 committee said it apparently could con.
 tinuc to operate for the present without l. serious difficulty. The Bangor and Aroos. y took asked for an increase of rates only one one-half of l per cent of its entir. d business
 The operating experience of the other
 railroads the commission reported "i. e indicated by the fact that for the si, Q months ending Feb. 2S, 1921. deficits aftel u payment of fixed charges have been al @ follows: Maine Central. s9I5,S59; Centra Vermont 9ls,652; Boston and Maine
 SS.2e2,S4s; New York. New Haven ant n Hartford S11.212.O22. " e The accumulation of such deficits in ! a six months. period indicates clearly tha IT these four railroads are in a position y' which is far from satisfactory. None o
 these railroads is in such condition tha
 1t can long endure a period of continue, 70 dehcii. The situation is espeically seri a ous for the Boston and Maine and th, n New York, New Haven and Hartfort L. railroads. Nevertheless. we do not con > clude that any of these four vii ceas
 to operate under their present corporat
 homogeneous during the period whicl ,t will elapse before they can secure assist l. ance by the payment to them of amount 7. owed by the government by the neces sary readjustment of wages and condi '- tions of employment and by the determi
 nation Of the question of division O
 through rates which is now before tn er interstate commerce commission. It ap IS pears improbable. that. the rate of deficit Id which has existed for the last six month l. will continue for. the next six months" m Among the considerations which hal II weight with the committee were the fol
 lowing:
 There is grave doubt in our mind E.. whether the proposed increase would pro as duce the amount of revenue which in ns railroad executives estimate and wh!c as would be realty necessary for any effect S. i've relief There is of course a poin n- where traffic will not move Whethe
 that point will be reached or not with an
 such increase of rates may not be exactl l. determined, but in general these who ar 20 familiar with railroad conditions over tn ed country believe that rates are at thei k peak, and that instead of an increase i e. rates there. should be, a decrease if ther l2 is to be revival of satisfaction bushes
 conditions for. obth the. railroads them
 
 ,e are not satisfied, therefore that if thi i advance is granted the necessary none es will be forthcoming. and are strongly ir of clined 10 believe that such an sdvanc l. will fall far short of the amount nece, ye sary for temporary relief
 The traffic managers of the railroad |
 think that New England business ca S. stand this temporary advance. and u e. shippers are quite positive that New Enr a land cannot. While we cannot final 1r conclude which may be right. we ar ? strongly of the opinion that the chance til of an unfortunate result are such th;
 we cannot in deference to what we b,
 lieve 10 he the general rood Of this con ,n munity recommend that any such risk [ h. taken.
 ze We are by no means clear as to th h. way in which the proposed increase Is n- he worked out. As t Is not a fat IT
 crease of ten per cent. it will in son
 instances amount to much more. even v, twenty per cent. How these various aC as justments would satisfy the differer e- kinds Of business we have no means , r. determining. The possibilities Of this si s. uation are such that an increase shoul rs he recommended unless lt ts known Q, h. actly how it ia to be applied.
 'TThe idea of New England as q dL