New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1921-04-30
Railroad Executives Fail to
Prove This Would Remedy
Conditions and Not Hurt
This Section.

the. New IdllTOdu n6dOS ID
increase freight and passenger rates
| Immediately by 10 per cent. to re-
| lieve their financial plight was disap-
proved by the joint committee ap-
| pointed by the governors of the New
| England states. The report to the
| governors, signed by each of the 80
members of the composite committee,
| is just made public. 1t said that. the
railroad executives had failed to show
that the desired advance would rem
edy the situation or that by such an
| increase New England interests would
not suffer.
AS constructive recommendations,
the COMMITTEES said:
Govt. Assistance.
1. The federal government should
be asked to give. assistance to the
railroads in their extremities not as
an act of paternalism but as an act
of justice. The obligation of the gov
eminent to 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 September 1, 1920
and arrangements should be made at
once for the payment of the amounts
claimed by the railroads to be due
them from the government leaving
exact determination to be made aft
erwards. We recommend that a me-
mortal be addressed to the president
of the United States. pointing out to
him the present conditions of the rail-
roads in New England, and asking
him to take prompt measures to full
fill the obligations of the government.
Wage Scale Wrong.
hot ha
vailing wage scale and the terms of
the so-called national agreements
have been a large factor leading to.
the present financial condition of the
railroads We believe that Congress
should consider whether the present
method of settling labor disputes is
entirely adequate, and if not, in what
respect it may be remedied or altered
About Efficiency.
5. We have NOT undertaken to
make an analysis of the efficiency of
the management of the New England
railroads In the interests of the rail-
roads themselves, we believe that the
Interstate Commerce commission
might we'll avail itself of its authority
and make without delay, such investl-
CATION as may be desirable toward a
permanent solution of the railroad
difficulties.
To carry out the foregoing recon-
.n,endations we suggest that this
committee be authorized to present
these considerations to the president
of the United States, the railroad Ia
bor board, and the Interstate Com
merce commission, and to take such
further. action as may be, necessary
The committee reported that 1t
found that the financial condltlon oL
the separate roads was not the same
although all were suffering from
decrease of revenue. The Boston q
Albany. a leased line of the New York
Central. took no part in the request
for advance in rates The Rutland
railroad in January and FEBRUARY
showed n deficit of s121,091 and the
committee said it's apparently couio
continue TO operate for the present
without serious difficulty. The Bangor
&. Aroostook asked for an increase Oh
rates only one half Of one per cent
of its entire business.
Deficits Continue
.vrbe operating experience of the
other railroads." the commission re-
ported. in indicated by the fact that |
for the six months ending February
% 1921. deficits after payment OF /
fixed charges have been as follows:
Maine Central s915,359: Central Yer
mont ss1S,652: Boston & Maine 80
2ee.s4s: New York. New Haven d
Hartford $11,212,022.
1.-The accumulation of such deficit In |
a six months period indicates clearly
that these four railroads are in
nosition which is far from satisfac-
tory. None of these railroads is IN |
such condition that it can long en-
dure n period of continued dehcit.
The situation is especially serious for
tho Boston & Maine and the New
work. New Haven & Hartford rail I
roads Nevertheless, We do not con-
clude that any of these four VIII
.caase to operate under their present
.corporate managementa during the
oeriod which will elapse before they
can secure assistance by the payment
TO them of amounts owed by the
government, by the necessary read
iustment of wages and conditions or
and by the determination
.of the question of division Of through
rates which is now before the Inter !
state Commerce Commission. 1t APP
pears improbable that the rate OF
deficits which has existed for the
last six months will continue for the
next six months
Committee Arguments
Among the considerations which |
had weight with the committee were
the following:
'.There is great doubt in our
minds whether the proposed increase
would produce the amount OF revenue
which the railroad executives eSu-
mate and which would be really /
necessary for any effective relief