Imperial Valley press., 1921-04-21
s j c GEST 7 S
SOL j ITO \
R:A Il ROAD
PROBLEM
Great Transportation Ex-
pert Advocates COnsOlida-
ton of Traffic Lines i'm
Competitive Groups of
Comparatively Equal
Strength.
(By Associated Press)

PHILADELPHIA, April 21.-Dis-
cussing railroad problems before the
American philoso phical Society here
today, Emory R. Johnson, dean of the
Wharton School of Finance and Com
merce of the University of Pennsyl-
vania, widely known transportation
expert. said the government should
proceed promptly with the formula
ton and publication of plans for the
grouping of railroads into Limited
number of competitive systems of
comparatively equal strength. Rail-
roads, he added, should be encouraged
in every way practicable to carry out
these plans for consolidation.
Any discussion of the transporta-
tion problems now confronting the
American people," said DR.. johnson,
must be based upon the assumption
that railroad transportation can be
successfully developed only by adher-
ing to private ownership and opera
tion. If tie people of the United
States become discouraged or bewild-
cred and adopt government ownership,
American railroads will gradually
pass into a state of coma and over in
dustry will slowly come a creeping
paralysis.
The outstanding problems of the
hour in connection with railroad in
clude:
Il. The necessity for the federal
control of both intra and Interstate
railroad rates. This ouetsion is row
before the Supreme Court of the
United States. and it is earnestly to
be hoped that the court will find con-
stltutional that provision of the trans
portation act of 1920 which gives the
interstate commerce commission the
power to change state rates that inter-
ferc with or adversely affect the inter-
state rates.
The consolidation of railroads in
accordance with a plan worked out and
promulgated by the interstate COM
merce commission for the purpose of
eliminating from the railroad family
those weak sisters whose insolvent
condition makes them a burden to their
stronger brothers and to the public.
This is a problem of the near future.
of the next ten years.
- The federal incorporation of all
railroads engaged in interstate com.
merce and the consequent subordina.
tlon of the railroads as corporations to
the United States government. Feder-
a! in corporation should run on all
fours with consolidation. 1t, thus, also
becomes problem of the next ten
years.
- The development of executive
machinery for the constructive regula-
tioA of railroads and for the develop
nent of unified system of transpor-
tation by railroads, highways, water
ways ana possibly by airways This is
a problem of the next twenty five
years during which period all the
agencies and facilities of transporta-
tion should be welded together into
unified system serving all parts of the
country with maximum economy and
efficiency
"A brief diagnosis of the present
railroad situation leads to the follow
ing conclusion:
The cost of operating and Of ex-
tending the railroads must be brought
down
The revenues of the carriers must
be maintained and both the govern
ment and the great body of investors
must facilitate the carriers in secur-
ing the added amount of capital nee
essary to rehabilitate the railroads OF
the country"
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Probation Officer Swanson reports