The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-05-28
HARRISON OUTLINES PLAN
TO SOLVE Rail PROBLEMS

operation. to arhi-'c necessary rcono-
mi. :.
"'rhc purihnscs and plans Of the IN
Nc<t"r> a." well summed up IN stale
:u"nt recently presented hN President
WartI";d 10 Senator tumminS. chair
man OF tn" Committee "u interstate
Commerce.
Nv" have called ;l'rni.on /" -"
fact" SAYS this statement. that the
great problem 1T American tranSp"ria-
tinu has been I" establish an agency
which can Co-orCilnair. subject I" the
commission the natural advantages i"
BE- gained from individual railroad mIn-
aEcmrnt and operation and not destroy
inltiatir" and incentive" which "Stah-
lIShcd II and upon which its continued
rNi. trnrr depends. We rrcOGnz" that
certain consultations "f railroads ar"
desirable and have become necessary.
hut AN emergency EXISTS and the public
is entitled 10 more immediate" and IN
many cases more substantial benefits
than can l." derived from the great
physical conc l.dati"nS Of railroad prop
critics. by Immediate providing for the
generalization AZ far as practicable "f
the facilities and service OF the c\iStlnE
railroads and systems
Financial Needs Of tho Future
The situation is required I" he
viewed as a whole. and from various
angles" says the investors statement.
The railroads of the country owe the
United States Railroad Administration
over ono billion dollars. the Indebtedness
incurred during Federal control. In ad-
d!tion. they owe the Government mil
lions moro undcr the provisions OF the
Transportation &C; in connection viii
tho use Of tho s3nn. n0n. 900 revolving
fund which Congress provided 10 tide
over the railroads when returned TO
, their owners. The Indebtedness OF the
railroads TO tho Government equals an-
proNmately onc-"ighth Of the total out
standing securities Of all tho roads.
Should Government regulation be eN-
tended tn the p0in, Of operation. with
this indcbt edncsS Of the carriers to tn"
Government with their great financial
necessities. the distance fyom private
{" Government ownership is indeed
narrow.
The statement in discussing tho need
OF what arc termed intensive economies
continues: There is an apparent though
unfounded prejudice against reason
able joint use OF railroad facility
where practicable. such Is Il terminal ar
freight yard. What the shippers desire
are the lowest freight rates obtainable.
They are not concerned whose terminal
or yard Is employed in handling their
shipments, providing the policy adopted
does not adversely affect competitive
service which they know - essential
to tho adequacy of service. the reason
able joint use Of certain facilities will
neither impair incentive nor the display
of fair methods incident TO competitive
service.
The railroads are 1oundcring under
an effort TO function under many chiefs
with varied interests servo. says III"
statement. Private operation vii! rot
survive unless congress Cnmpcls t TO
co-ord mate its own facilities through
proper organization and methods to e.
fcct that result. II this is established.
private ownership will endure: II II Is
not. ownership and operation by III"
government must follow.
Glass l railroads. constituting the
big systems. have maturing obligations
this year of approximately $3.50 100000.
Next year the sum will he Sl15."OO.o""
and the year after sl%n.O0O.n0o. To this
must be added the $500. 00n.n00 owing
TO the government. or almost S",o0u.-
, NO0. Don to hc met largely by me sale OF
securities. That is one-tenth Of all the
penses are no, being earned by many Of
the Systems involved. This means that
. the roads will soon need Il sum squal to
one-tenth OF all their past requirements
, still unpaid. without taking into consi-
, dcratiou the money which must be had
: for new rolling stock. extensions. i'm
provements and repairs. This has been
placed at $1,000. 00h.nn0 for tho three
year period. If the government extended
it's credits indefinitely beyond that
psriod, the roads would require from
| So 900, 100000 to $4,000. 100000.
The investors believe that reduc-
ton OF rail wages is essential TO case
the position Of the roads. They take
tho view that further increase Of rates
cannot be considered. They do not think
/ that rates are generally too high. but
that in specific cases reductions may
prove necessary. The raising Of revenue