New-York tribune., 1921-06-15
u. S. Won't Pay
or Rail w aste.
Says Curnrnir,s
Declares transportation Act
Guards Agains, Bills for
Any Reckless Expenses
During Guaranty Period
Lines Defend High Costs
Charge Government Lief,
Them So Run Down Big
Sums Had To Be Spent

From The Tyibwnes Washington Burcau
WASHINGTON. June 14.-When the
Senate Interstate Commerce Commit
tee to-day resumed its investigation
into the railroad question l.. r.. Wet
ting, of Chicago, manager of the bu
reau of statistics of the Western lines,
and E. T. Whittier, of Philadelphia,
chairman of the conference committee
of managers. were the witnesses.
Mr. Wettling told the committee
that the necessity to make up for the
lack of adequate maintenance in the
Federal control period in order to re-
store the roads to condition to meet
increased transportation demands was
responsible for much of the increase
in cost of railroad operation in 1920.
Senator Cummins, chairman Of the
committee, pointed out that this in
CT ease in cost of maintenance was
especially marked in the six months
guaranty period. The witness asserted
it WAS necessary to make extraordi-
nary expenditures for maintenance i'm
mediateIy after Federal control ended,
which was in the guaranty period. He
said that, is the carriers well knew
the amount for which the government
was responsible under the guaranty
was limited by the transportation act,
and the roads must themselves bear
amounts in excess OF that allowed by
the transportation act.
Won't Pay Reckless Charges
'It has been alleged said Senator
Cummins, that railroads were reckless
during the guaranty period because the
government in any even. must make
good the amount from the Federal
Treasury. I want it to be especially
emphasized that the transportation act
guarded completely against any such
contingency as that, and if it turns
out that the railroads have expended
more from March ! to September L,
1920, than they ought to have spent,
according to formula which was
adopted under the standard contract,
then the government is not required
and will not be required to pay any
thing because OF that fact"
"In other words" said Alfred P.
Thorn, general counsel for the Asso-
citation of Railway Executives, "the
guaranty does not protect the railroads
for any excessive expenditure for main-
tenance."
"One of the controlling factors" said
Mr.. Wettling, (which tends to distort
such comparisons lies in the fact that
the expenses in the corresponding
period in 1920 were subnormal because
of restrictions placed upon them.
Necessarily such policy produced
q condition of unde dermaintenance, and
the roads were turned back on March
L. 1920, in 4 rundown condition. which
made it imperative in the interest of
safe and adequate se&ice to the pub
lie that SO far as possible the roads be
rehabilitated and restored to the con-
dition and efficiency in which they
were found when taken over by the
! government.
"The fact that the natural tendency
was TO limit these maintenance ex-
| penses to what we're absolute necessi-
! ties should be evident.
Halted by Business Slump
Nevertheless, because of the urgent
| necessities the carriers continued their
| program of restoration of the proper
ties until October, 1920, when it be-
| came apparent that general business
| depression was imminent"
In concluding his testimony, which
was begun some days ago, Mr. Whittier
said little progress was being made in
negotiations between carriers and en-
ployees to frame substitute working
! agreements for the national agree
ments which the Railroad Labor Board
has ordered abrogated July I, provided
other rules are agreed upon by botk
sides.