New-York tribune., 1921-03-30

they hauled the greatest volume OF
traffic and the largest number Of pas
seugers in their history. They spent
all Of it except Slo,oo0o0o or about
one-tifteenth OF | per cent, whicM is ii
Legligible percentage Of return.
The American people cannot be ex.
pected to pay higher transportation
charge. The expense account iS too
big. 1t will De the purpose of our
committees investigation to find out
where the trouble lies. | do not see
that we can do much in giving the In
tcrstato Commerce Commission greater
authority with respect to control over
operating costs.
AT the present time the loss TO the
railroads due to excessive operating
expenses falls upon the stockholders.
Were we To increase the power of the
Interstate Commerce Commission to a
point where complete commission con-
troll would be established, the loss
would have to be borne by the tax
payers and the deficit made up out OF
the Treasury of the United States.
Sixty per cent of the operating
costs are for labor. This would
amount III a year to $4,000, 900, Geo. To
reduce wages 10 per cent would give
the railroads SSeo,oo0.0oo more than
they have now, but the reduction
should not be limited to labor. 1t
should apply to the whole structure.
Can Save on Coal Bills
aside from labor there are three
great elements of cost in railroad
operation. They are coal, lumber, in
to be every reason to believe that the
railroads can reduce their coal bills
in the coming year one hundred mill
ion dollars. The price of lumber has
already come down, and there would
seem to be a possible saving in the
prices paid for steel which would run
the total amount of the savings in the
cost OF material to a very consider
able figure.
81 believe that the solution of the
problem lies in the economies which
the railroads can themselves bring
about"
Senator Cummins said rate reduc-
tions on some articles would increase
revenues: There have been confer
ences. he said, between the railroad
executives and the commission which
resulted in reductions by the roads in
the rates on certain commodities. He
thought such reductions would continue
to be made.
The investigation into the railroads
which the Senate Interstate Commerce
committee VIII make Will not by any
means complete the consideration of
railroad transportation on the part of
Congress. Not including such railroad
legislation as the President may rec
ommend, number of bills will be in
troduced and strongly backed.
Inquiry Believed Certain
So far as the investigation under
the Cummins plan is concerned it is
believed the Senate will 1rder this
with little opposition. Railroad ex-
ecutives for the most part lake it for
granted the Investigation is going to
be made and are, getting ready to make
their showing.
Great pressure will be exerted on
Congress for the amendment of the
Cummins Esch law, known also as the
transportation act, in number Of re-
spects. Farmers organizations are
bent on having it modified. They com
plain the freight rates are excessive
and that if there is to be relief the
law must be changed. Farm organ
izations have substantially agreed all
ready that they Will demand repeal OF
the SIX per cent provision OF the trans
portatlon act, which is commonly re-
TERED to as the guaranty provision.
The issue raised in the Supreme
Court Of the United States in the Wis
consin case, denying the right of the
Interstate Commerce Commission to
regulate state rates, will be up in Con-
gress. In both houses efforts will be
made to pass a bill preventing the In
terstate Commerce Commission from
exercising authority over state rates.