The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-11-10
Jays Regulation Rssponsibls
For Decline Rail Developmen,

New York City, Nov. 9.-(By the
Associated Press) reg.
ulation is almost wholly responsible
for the decline of railroad develop.
ment and existing shortage of trans
portation, Charles H. Markham, pres
ident of the Illinois Central railroad,
told members of the Railway Busi-
ness association at the annual dinner
here tonight.
For ten years before the war, he
said, unwise regulations kept down
he rates and reduced the net return
of the railroads, although wages,
prices and returns earned in other
lines of business were increasing.
The outstanding fact regard -ng the
present shortage of transportation is
that it has been met at the very be-
ginning of a period of business re
yival,' he said.
In this respect it creates a situa-
tion unprecedented in our history
situation which should cause every
farmer and business man, every rail
way official, every public man, every
wage worker, to pause and refie:t
seriously.
"In past periods of business revival
the increase in freight business has
gone on until it has reached a point
35 to $50 per cent higher than ever
before. We may we'll ask ourselves
whether, with the railways finding It
difficult to surpass the freight record
of 1920, they can be expected within
/ few months or year to handle such
IN increase in tonnage as past expert
ence shows would only be normal IN
a period of general revival"
Mr.. Markham said the situation is
due partly to the coal and shop en-
ployecs' strikes but added that the
large contributing factor was the
more rapid development of the pro-
duction and commerce of the country
than the development of the facilities
the railroads.
"Clearly it is essential to the wei
fare Of the country that the railways
should as rapidly as practicable, put
their existing facilities in good con-
dition, and that they should for some
years rapidly improve and expand
their properties" he continued. "The
only thing which ever will enable AMI
cause railways to carry out a suf-
icient program of expansion will be
to let them earn sufficient net return
to raise the new capital required for
! hat purpose"
, Repea of the rate making prov'-
;ions of the EschCummins Trans
portatoin Act would be the most
deadly blow that could be aimed at
railroad credit and the nations good
faith and prosperity, he said, adding
hat it would tend to cause a chronic
shortage of transportation which
would seriously hinder all increase Of
production and commerce as long as
| it lasted.
"It is plain to every man who
thinks that the wages of labor can
)e paid, the income the farmer can
get, the profits that can be derived
from business, depend in the long run
upon the total amount of production
and commerce that can be carried on.
! If the necessities, comforts and lux
uries each of our people have is to
be increased, we must increase our
total production and commerce more
rapidly than our population. We
have always done this in America.
But nothing could be more obvious
than that the increase in production
and commerce which is vital to the
welfare of lal cannot be secured with
out corresponding increase in trans
portation."