Norwich bulletin., 1921-05-20
How Railroads Could Have Lower Rates
Explained by Edgar J. Rich, Counsel For Associated In- dustries, Before Boston Chamber of Commerce.

Boston, May 19-Edgar J. Rich, coun- seI for the Associated Industries, said at luncheon given by the chamber of com- merce today that if railroad traffic officers gave more of their time to studying how traffic could be increased by reduction in rates, instead of to working out increased rates, the net result would be better for the railroads.
 "A generation ago. he said, under the guidance, of men like Futile. Tucker anu Mellen, every effort was directed towards the development of traffic. and rates were adjusted to this end. Today it is ques- tion of increasing rates. and yet note the result Freight rates have been in creased 110 per cent. since 1913, with the exception of rates for short distance, which have been increased as high as 800 per cent. The result is intense competi- ton by the motor truck, which today is taking from the railroads millions of dot- lars which they ought 10 have. It is not merely the transportation by truck be- tween two inland points that is menacing it is the threatened coordination of trucks with water transportation that is likely to deprive the railroads of a large amount of their proper traffic.
 The greatest menace to New England today is the contemplated action of the trunk lines and the New England lines in revising the class scale of rates and in elimination of all commodity rates These commodity rates which are threat ened have been the means of building uI New England.
 The railroads are suffering today be- cause they cannot produce the one com modity they manufacture, transportation for the price at which they are able tC market il. Confronted by a like situa. ,,,Yf, ,,f- |. or hardware would set about reducing hi. overhead and would probably shut dowI entirely or operate on part time. Th' railroads must go on manufacturin; | transportation at a loss. and while the. 1 can and do effect many reductions in op i erating costs, must continue to furnisi l adequate service"
 The speaker said that the wage re visions indicated by the wage board is d yet an unknown quantity and it is prob able that a greater resumption of bushes activity alnust come before the railroad can hope to get back to a sound basis.
 It should be plain to all of us that | the motor truck is to use our highway as competitor of the steam road it charges, expenses and opera ting condi tons should be regulated as the charges expenses and operating conditions of tn steam roads are regulated, and it shout be taxed as the steam roads are taxed 10 the use of the highways. It should b equally plain that the building up of tw agencies of transportation where one WI serve the purpose involves an economi waste, the cost of which must ultima tel } fall on the users. You can't get alon without the steam railroads and ahiIe th
 motor truck has it's place, and a usef, one. in the handling of short haul trafi
 it's proper sphere is limited. The raj
 roads have been giving and are continl
 ing to give careful study to the best Wa
 to meet this situation, but it is not
 easy to meet it by reducing our rates 2
 some advocates of that policy would ha1
 you believe"