Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-05-02

The price of railroad securities
has almost continually declined for
twenty years. Freight rates are ex-
horbitant, railroad labor is discon-
tented, service lis poor, and it is
only natural that everyone asks
what's the matter with the railroads.
Commenting on the situation, Roger
w. Babson, statistician, outlines five
distinct difficulties that must be
overcome before the railroads can
get back to an efficient basis.
"F'irst, there has been a change
in the relation of the railroad labor
to the railroads.. When I was boy
living in Gloucester, the railroad
connecting Boston and Glouceste.
was very largely owned by the peo-
pie of that line. Many of the con-
ductors, engineers and track men
owned some of it's stock. There was
a community of interest; the com
munity was interested in the rail-
road the railroad was interested in
the community; and the employees
were interested in both.
"When the Boston and Maine was
purchased by New York bankers the
local interest disappeared. Absentee
ownership in securities inevitably
leads to absentee ownership in labor
control. When the stockholders take
orders from some banker in NeN
York, the wage workers naturally
take orders from some labor leader
in Chicago or Cleveland. ! The result
is inefficiency and waste of labor
The last time L came from Gloucester
there were just five passengers on
the train when it left the station.
h11t fhnra T1nInc
1--WE hear much talk about the
high railroad wages" says MIR. Bah
son in making his second point, but
statistics show that railroad labor
is not over paid as a group. The
difficulty is not due to high wages.
but rather due to inefficient labor
and to the many useless rules OF
the interstate commerce commits
sion, the state legislatures and con-
gress. The trouble comes from a
waste of labor rather than from ex
cess1Ve wages. The railroads could
today keep wages as they are if
they could dispense with the great
army of unnecessary employees who
are not anly bleeding the public but
are running the discipline of the or
ganization itself. When one man is
tOclll1l0 Oll IAAS JOp ACESNAASho INV ANcNAJ
to make everyone else loaf. What
the one-man car has done for the
street railways of the country some
similar system should do for the
steam railways. AS there is abso-
lutely no need of the railroads using
all the trainmen that they use to-
day. The number must be reduced
before the railroads can be eff
GENTLY run and made to pay.
1.-THE third great factor Jays Mr..
Babson, us the automobileSand the
auto truck. The auto truck is get
ting practically all the short freight
hauls. AS they have practically no
road TAX to pay they have an un-
usual advantage. The public sup
plies the roadbed, it supplies the
terminals, and supplies and every
thing free but the truck, driver and
gasoline. The idea of letting these
trucks ruin our highways, as they
are doing today, without paying for
the privilege, is mistake which
will some day be rectified. How
ever, even if the truck does pay it's
proper share for the maintenance OF
the highways, it is very debatable
whether or not the railroads will b.
able to compete with them on shor>
haul business.
"The automobile truck has come to
stay and will always be a distinct
competitor to short haul lines. For
| that reason, think it is wise for
people to invest their money in the
| trunk lines that cannot be adversely
| affected by motor competition. \
1.-THE fourth factor" continued Mr.
| BabSon, that is causing the rail
road securities to lag is the many
services they aKe performing for
| nothing, or without adequate re
turn. The terminal charge should
be much more than it now is. There
should be different rules regarding
the loading and unloading of cars