The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-05-17
OPERATING COSTS
MUST Be REDUCED
Otherwise Private Ownership
Cannot Continue, Willard
Tells Committee
By Associated Press

Washington, May, l6.-Priyate own
ership of railroads in the United States
cannot continue if railroad operating
costs, when fair return. on capital is
considered, continue to exceed reve
nues,, Daniel Willard, president of the
baltimore &>Ohio, testified today be-
fore a Senate investigating commit
tee.
AT the same time Mr. Willard, said
the railroad situation, in so far az
dephession and lack of earnings were
concerned differed, only in degree
from that now being encountered in
ether industries. General economic con-
6itions and the difficulties encounter
ed in federal wartime operation OF
the carriers, he added, were in his
opinion largely responsible for present
difficulties, and he expressed conf
dence that private ownership would
justify itself financially and work out
under. present law and government
policy.
Chairman Cummins of the Senat lie
committee had previously expressed
the opinion that the railroads can
not last" if 1920 returns from opera
tlolS diC 70 CoAtluuc, an oplOlOn agreed
in by Julius Kruttschnitt, chairman
of the Southern Pacific board the first
wintess heard The latter was tenn
porarly excused while Mr.. Willard.
whose testimony was left unfinished
at the days adjournment, took the
stand.
The Baltimore & Ohio chief, al
though remarking upon the unfavor-
able returns from present railroad
operation said the government policy
of insuring a 51a per cent return had
given investors confidence in the
ultimate outcome" of operations. He
freight rates, now in effect, citins.
statistics on comparative costs of NOV
ing wheat from Argentina and from
Kansas to New York.
Federal operation had resulted in
turning back 40 per cent of the freight
rolling stock in bad order he said, due
to under-maintenance orders. which
were necessiated during the war. but
continued thereafter. The allowable per
centage of bad order cars should Sc
about four per cent, he explained.
FILES FINAL REPLY
Chicago, May 16.--B. M Jewell.
resident of the railway employees de-
I.artment of the American Federation
or LABOR, To-Day Tiled mis- mai reply to
the last arguments presented to the
United States railroad board by the
railways in support of their plea for 4
general reduction of the wages of COM
mon labor.
The railroads closed their case May
Z, and the representatives of the EN-
ployes had until today for final rebuff
tai. Today the board began considera-
ton of the case in executive session.
but decision is not expected for several
weeks.
In his statement filed today, Mr..
Jewell held that in regard to the fun
damental issues in the case the car
riers have said nothing beyond declar-
ing that questions of human rights
end human standards are IRRELEVANT
He declared the roads have only en-
rhasized their financial needs.
In answer to the attack of teh roads
upon the exhibits entitled 'inadeouac-
les OF management he quoted tho Rail-
way Age as estimating the TRANSPORT
tation industry needed $4,000, 000, 900 70
rut abreast OF the times. 1t would be
fundamental injustice, he said, il the
board should grant reduction in the
pay because of the present financial en-
|brrassment Of the roads.