New-York tribune., 1921-05-12
II. S. Is Rival
In Business.
Roads Protest:
Panama Canal Competition
Cost Them SO Millions i'm
1921. krussschniss Says
in Defending Toll PLAN
Highways Wreck Profits
Lack of Building Is Laid to
Labor Getting 90 Times
More Than Rail Owners
from The Tr.esne.s wasAinaton Rsrea,

WASHINGTON, May 11.--Con-
tinuing his testimony before the Sem
ate Interstate Commerce Committee
to-day, on the operating expenses of
the railroads aand on the difficulties in
general which confront the roads. Julius
Kruttschnitt, chairman of the board of
the Southern Pacific Railroad, de-
clared his objections to the free use
of the highways as common carriers
and the utilization of the Panama
Canal for coastwise shipping without
payment of tolls.
Mr.. Kruttschnitt was questioned
closely by members of the committee
as to his views on Panama Canal
traffic, on use of the highways, and
on inland waterways and ships. He
held that the Panama Canal was ma
tional necessity, that government con-
struction of shipping had been indis-
pensable toward winning the war and
that waterways and highways were
necessary for the development of the
country.
Objects to u. s. Competition
He said that what he criticized was
the unrestricted use for common car
rier purposes of works built with pub
Tic money TO destroy the business of
public service corporations built up
with private money. He protested against
..sthe government, backed by the
Treasury, going into competition with
its citizens"
Suppose the roads had received
ta ~ &c. IL
seompetition with them in 1921, what
would it have amounted to-? asked
Senator Poindexter.
4 Mr. Kruttschnitt estimated the
amount at S50,000,000
Ct Senator Townsend asked whether
fruit growers in California and else
where on the Pacific Coast could af-
ford to pay the charges made by the
railroads.
There is q propaganda to show
they can't" said Mr.. Kruttschnitt. 81
an convinced that they can
Use Of trucks and motor vehicles on
lriers of freight and passengers, with
out any charge for the damage done
The highways, was wrong policy, Mr..
hruttschnitt contended It DESTROYED
the thoroughfares built at public ex
psnse, interfered with the convenience
OF the general public end took revenues
frem the railroads. He calculated that
such use of motor vehicles had cost
the Southern Pacific $4,000,000 last,
yeaf.
sYou don't suggest, of course, that
use of the highways by the public for
g motor or vehicles s. be Stoppedg' asked
"No," replied Mr.. Kruttschnitt. "I'm
obaecting to heavy vehicles using the
sisnads as common carriers, without pay
ing any tolls, and destroying them.
Would Tax Vehicles for Use
7 He held that trucks and heavy motor
vehicles using the highways for, corr
mon carrier purposes should pay "a
fair, reasonable price toward the con-
etruction and maintenance of the high
ways
+ Mr. Kruttschnitt referred to the ex-
.tehsiye use of trucks between New
Tork City and points in Connecticut.
The effect, he said, was to detract from
The business of the New Haven road
and tear up the highways.
"They should not be allowed to wreck
the profits of the steam lines" said Mr..
Kruttschnitt.
Senator Pomerene pointed out that
The tires made at Akron were shipped
bg motor truck to Boston.
sim very familiar with the situa-
lion," said Senator Frelinghuysen, "be-
cause there are regular lines between
New York and Philadelphia across New
Jersey. They're destroying our roads"
Mr.. Kruttschnitt had referred to
.sInore than a billion dollars available
FOR construction of highways" Sena-
tor Townsend pointed out that only
small part of the amount is Federal
money-that it inclnded state, county
and local funds.
lE ~ am very much in favor of those