The Dawson news. (Dawson, Ga.) 1889-current, 1921-03-22
CONGRESS TO ACT IN
PLIGHT OF RAILROADS
JANUARY INCOME OF MANY
LINES WAS LESS THAN
OPERATING COSTS.
HIGH RATES CAUSE TROUBLE
Legislation to Enforce Rigid Econo-
my and Reform in Buying Planned.
Advocates of Government Owner
ship Not Getting Encouragement.


WASHINGTON, d. C.-Failure
OF many railroads to earn operating
expenses in January, and deficit in
the returns of the roads as whole
as compared with their operating ex-
penses, will be shown when the fig
ures for the first month OF 1921 are
published, according to information
which has come to members OF the
senate interstate commerce commit
tee. Furthermore, the February tinan-
cial showing of the lines will be unsat-
isfactory.
1t is said the reports OF the roads
thus far received by the interstate
commerce commission and the agen-
cies of the railroads which are keep
ing close track of data show that the
expenses are running ahead OF income.
The financial situation in which the
roads find themselves plus the dlttl-
cu1ties they are having in their efforts
to reduce the wages OF employees are
combining to force the transportation
question to the front as one OF the
most important matters ahead OF the
administration and the new congress.
High Rates Reduce Traffic.
From all over the country COM
plants keep pouring in on congress
that freight and passenger rates are
too high. Reliable information here is
to the effect that the high passenger
tariffs are tending to drive away traf-
fc. The same is true of freight rates.
ro,irAaI cn,11 and or
CARNATIONS OF shippers are extremely
active in mapping out plans to have
the transportation act revised. They
want law passed which will make
it clear that the interstate commerce
commission has no authority over
rates within state borders, and, further
more, want 1.-THE so-called guaranty
OF the federal law, which contemplates
that the rates in the aggregate shall
yield a 5H per cent return, repealed.
1t is true, as they admit, that the roads
are not actually getting such return,
but it is contended the rates have been
forced to excessive heights by reason
of this guaranty, and that the roads
| have been hurt rather than helped by
the high charges, while business and
agriculture have suffered.
The proposed investigation into the
| finances and operations of the roads by
the senate interstate commerce COM
mittee, with, perhaps, similar inquiry
by the house interstate commerce
committee, has aroused wide interest
Not only are the railroad executives
preparing to try to absolve themselves
from blame for conditions, but the
labor leaders are getting ready to at
tack the methods of financing and
operation and to charge ineffciency
and wastefulness. Shippers organiza-
tions, too, will insist that ways must
be found to lower freight rates and to
cut expenses of operation by all prac-
ticable means.
Congress to Order Economy.
The opinion prevails in the best in
formed quarters in congress among
senators and house members, who are
keenly alive to the situation, that
wages will be reduced and that con-
gress will insist on cuts in operating
expenses in other directions, largely
by different methods i'll buying sup
plies and material Chairman Cum
minis of the senate interstate com
merce committee, holds that the roads
must buy in common, and thus re-
move the element OF competition, or
else purchases must be made matter
of government regulation. AT the same
time he declares the utmost possible
use of facilities in common among
the roads must be made.
This idea has strong support in con-
gress. 1t is likely to be subject OF
legislation in the extra session and
especially so if the railroads continue
to make a poor financial showing
while shippers, live stock men and
farmers cry out against high freight
Advocates of government owner
ship of railroads are coming to the
fore and saying that the conditions are
such as to head the country straight
for that goal. Sentiment in congress,
however, is that the present law, with
such notifications as may be agreed
on, should be thoroughly tested. 1t
will be tried out and there will be no
great difficulty in the task if the finan-
cial condition of the roads improve and
business picks up.
C0IITuEDM Deli Du0ME