The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-06-01
OUTLOOK

MORN cheerful tome is noted in the statements Of railroad cxecu-
q tves than has been evident since the beginning Of government
- operation. Recently several Of the important executives have
filed statements with TIE senate committee setting forth the belief Of
these executives thar the railroad problem win be worked out sat
siaetoray Under The existing laws and expressing optimism as to the
Nv. KmtirsAnst believes that the straibu is clearing. that re
adjustment s,. % The operating expsnsss Of ihe railroads will produce a
ment Of rates with consequent benefit to commerce and industry gen
orally. lie IS a firm believer in the transportation act, and thinks II
chance 70 prove what Il can IA. lie SAYS aTherc ma, he some points
where te machinery rs still operating with friction on some ho,
dislike extremely now 10 see IL tinkrred with or changed
Mr. Willard does not believe Is will be necessary to raise rates
beyond what the traffic win bear TO make private ownership a sue
cess II was not necessary before the war and should not be neces
pense bear some proper relation To each other. That is not the ease
Mr. Cayles. for the association Of Railway Executives. saws.
Feeling as We do that the world has definitely turned The corner Of
is most acute depression, 80 we feel that the railroad situation has
likewise passed through is darkest hour and has now definitely turn
In a statemen, given out yesterday, MI. Elliott. chairman of the
which provides ihsi until March, 1922, rates shall be such rs 10
bring A nearly as may be, q return Of 51s to 8 per cent on the fair
valuation Of the raiiroah& points out that the act did not and could
nos insure the business necessary to earn such a return.
Of a stated return tas some people think. but a declaration Of prin.
cple that under reasonable business conditions, railroad property in
purpose; and II there Is any excess above that reasonable return. for
any road Ia q group. TIE owner shah have part and the government
III the policy of extreme regulation of the railroads BY the gov
ernnent Is to continue, rs against the policy of greater freedom for
private initiative and management, then this particular provision Of
'.The transportation act and the principles and rules contained
therein are NOT responsible for the present unfortunate disappear
anee Of railroad net Earnings
THE compress, the pubic. the railroads. and the labor organize.
tons should DO al they can 20 help those upon whom the very great
responsibility IL imposed Of administering the act"
After pointing out the complicated problems before the two gov
ernment agencies ofadjutment the railroad labor board and the in
ter-tate commerce commission the head OF the Northern Pacific con
eludes:
"a railroad is a complicated and deleately adjusted manufae
turing plant and its product i transportation. manufactured daily
and in countless forms. and under Sidely varying conditions. Its pro-
duet, however, mnst be used As produced II cannot be stored up for
the future.
Other people are manufacturing other commodities; generally
they can raise their prices in prosperous times and can store their
products IN pnor times for future delivery, or close their plants en-.
trely. The railroad has not been allowed 10 raise its prices to the
extent that te manufacturers aud producers have; il has nothing ac-
eunulhfai from the large business Of the Dast few years 10 care for
the present period, and II cannot close down its plant
1T is selfeyident that the railroad, manufacturing transporta.
fion. eannof, oh a falling business, long continue 20 be a solvent en-.
terprise. 4 Il eannot, as other manufacturers do, have some control Of
rs income and onfRo and pay wages substantially gu fhe same basis
o. may be paid b. other employers in similar territory. This is not
The ease today, and the inability Of the railroad 10 adjust promptly
Us costs ~ must depressed business conditions Is the chief cause 81
The present situation