The Washington herald., 1921-05-16
Railroad Competitors.

THERE is no room for question that the rail
i roads in hard straits. 1t is useless to
contend that the managements all wasteful, that
they are Intentionally losing money that their
methods unscientihc The same men are man
aging the roads now prior to 1917 Their meth
DDS practically the same. They have an intense
pride in their properties and their own regulations
and professional fortunes at stake
There are a number of DEVELOPMENTS in trans
portation in recent years, which have directly af-
fected railroad earnings, outside the and its
aftermath government control apd general eco
nomic depression. The motor car is more and more
cutting into passenger carrying. AS good roads
extended, this cut increases and taxation largely
pays for the good roads, while railroads have to
pay for their own ways.
Julius Kruttschnitt, of the Southern Pacific also
points to motor trucks and waterway competition
Save in few States the motor trucks pay nothing
directly for building maintaining the roads which
they and tear to pieces. Where they pay any
thing it is but fraction of the cost. They should
pay much more, ALL unless it is to be granted that
the resultant benefit the public in lower trans
portaton and in the of all forms of motor cars
is sufficient to warrant the cost general public
charge.
Also, the vessel lines pay nothing for making
the harbors they use, the vast in anchorage
basins and the safety Devices which costs hundreds
of millions of dollars. In many instances there are
public docks and warehouses with free use, or but
nominal charges, while American vessels have
coast trade monopoly. In other words railroads
have to pay for what other forms of competitive
transportation have provided for them at public
expense. large part if not the major part of
their investment, is in these very things.
1t is we'll known that the railroads have had to
make commodity rates, in competition with water
ways, so low as to leave them little profit
Yet iS far IN freip he
to the East coast by way of the Panama Canal than
across the country. 1t is cheaper with short
hauls at both ends of the water route Rail cannot
compete with water and this is largely because of
the initial cost of ways and termin
This is not plea for the railroads, but it is
statement of facts which should Be considered in
the railroad situation and problem This country
will not have less, but vastly paved highways
and should have them 1t not only will not have
less, but very much more waterways, in the next
ten years, available for transportation uses, and
must have them. Both will be built wholly, or
largely at public cost They will reduce transpor-
tation costs; the railroads cannot compete with
them.
The railroads then will have to readjust their
operations largely to the short haul and to high
class traffic. On this basis both the waterways
and the motor trucks will, in large measure, be
traffic feeders They will also materially develop
the territory the railroads and increase
high class freghts which can stand high rates. The
freight charge suit of clothes, pair of shoes
box of matches is of small Importance in ulti-
mate price, compared to the charge bushel of
wheat ton of coal
Sometime in the future, the government may
take the rights of way, tracks and terminals
of railroads and lease them to the companies. In
the meanwhile, States might we'll change their tax
alton policies to railroads to favor instead of
Soaking them" They might, too, have other forms
of relief and the Interstate Commerce Commission
acting in cooperation with the railroad managers,
might work out quite national policy in re-
He'll hath no fury like woman who has
written a gushing letter to a movie star and