The New York herald., 1922-02-11
FREE RAILROADS,
ATYERBURY'S PLEA
Asks Dry Goods Men to Aid in
Striking Off Manacles
of Politics.
8 STEPS TO NoRMALCY
Tells Merchants How Trans
portation Problems Can
Be Solved.

An urgent plea for less regulatory
and restrictive legislation with regard
TO railroad operation. and for the ap-
plication of "the acid test of common
sense" to things that are being said
about railroads was made yesterday be-
fore the convention of the National Re-
tail Dry Goods Association at the Hotel
Pennsylvania by Gen. w. W. Atterbury.
vice-president in charge of operation of
the Pennsylvania Railroad.
Gen. Atterbury admitted the necessity
for reduction of rates, but declared that
reduction would not in itself restore
normalcy. adding that a general reduc-
tion is impossible in the present condi-
tion OF the revenues OF the roads.
Nevertheless, Gen. Atterbury told the
dry goods men, the solution to the ma
tional problems of transportation is a
simple one and can be effected in three
steps:
l. Enable the railroads to get on their
feet financially. to restore their credit
and bring their properties up to state
of development sufficient to meet the
growing needs of the country.
g. Permit the railroad officers to run
their railroad business without being
manacled by a mass of restrictive and
unnecessary regulation.
3. Back up the railroad officers in their
efforts to cut down the cost of trans
portation and make the service respon-
sive TO the business needs of the coun-
try
THE railroads are to-day suffering
from, exactly the same causes that are
affecting all other lines of industry"
Gen. Atterbury said. I'm order to use
the capacity OF our industrial plants
and to give full employment to our
workers we must make every effort to
hold our own in the markets of the
world. That is possible only If the cost
OF production can be brought into line
with existing conditions. To that end
thesprerequisites are that waste and ex-
travagance be eliminated, the cost of
production brought down. and both cap
ital and labor recognize the need OF
adjusting their respective compensation
to the competitive conditions which the
country will have to meet.
Freight Rates Too High.
"a study Of readjustment processes
Indicates that the price OF every COM
modify has been heavily reduced-trans-
portation, coal and the building trades
are the outstanding exceptions. ~
Freight rates, a large factor in our
business life, have been measurably ad-
justed but still remain at too high a
level Manifestly there can be no re-
turn to normal business conditions until
the price OF transportation bears a
proper relation to commodity values.
Demands for a reduction in rates
are now becoming almost universal, but
as a. matter of act there is little evil
dence that a reduction in freight and
passenger rates will stimulate business
and, give work to the unemployed. Car
riers have been readjusting downward
their freight rates for many months
past, but these reductions have not
stimulated business. nor have they pro-
duced the additional tonnage that such
reductions would have brought about
under ordinary circumstances.
THE railroads are vitality interested
in an early return to proper ratio be-
tween commodity values and costs of
transportation. In fact IL the present
condition of high rates long continues.
many industries will be located nearer
consumption. the railroads losing traf-
fic. and the industries their investment.
Unfortunately for the railroads, in adj
dition to the world wide causes. they
are suffering to-day from a cause which
has not affected industry in general.
'"rhe railroads for years have not
been in a position 20 fix the selling price
Of what they manufacture. land grad
uaIiy through regulation and legisla- !
tion. have now lost control Of large
measure of their cost of production. As
matters stand to-day. 30 per cent. OF the
income Of the railroads and IS per cent.
OF their outlay are governmentally ad
ministered"
Gen. Atterbury then presented a tarieC
schedvie of a dozen or more classified !
tions important in the dry goods and
allied Industries showing an average
increase between unvarying points &C
more tl'an 100 per cent. since 1914.
Cost OF Regulation.
THE average value Of the stnrT r.
the ,Pcrnsylvania Railroad for 19Oo-O1-09
was a. to-day II is 81 said Gen. After
bury 'Tn the old days the slogan was
a dollar for dividends. and dollar for
improvements For the year 1890, after
paying the same rate of dividend (6 per
cent? there was but 6 per cent. put
back into the property. while for 1921
there was no money from surplus put
back into the property. but we barely
earned the per cent. dividend that was
paid.
THUS after twenty years OF regula-
tion. the public finds itself compelled to
pay 100 per cent. increase in freight
rates: railroad efficiency by virtue Of
the same influence has been reduced.
and railroad securities under pressure
J.
to such unprecedented levels that man
agcments are unable to obtain aid
through the usual channels OF popular
finance. You. the public. who have
assumed the management OF the rail-
roads, through your legislative and
regulatory bodies. are responsible. Cas-
satt. Hill. Hartman and the others. all
prophesied what would happen: 1917
was but the culmination oftwerty years
OF starvation and regulation Then you
tried Government ownership and then
for few months you tried. through
Government control TO let the em-
ployees run the railroads through their
labor organizations.
Government control IS failure IL
squeezes out individual initiative and
opportunity. individual rewards and
prnishments. II decides economic uues-
tions politically. Under Il the railroads
can neither attract the private ability
nor the private capital that they ought
10 have.
with control OF their expenditure in
their own hands. subject only 10 eco
nomic laws. the railroad business ought
TO. be permitted to readjust itself as
as other business must do and Is doing
Too much protection and too much
regulation are disastrous"
Yesterday afternoon r. p. Sylvan
vice-president of the New York Telc-
phone Company. addressed the educa-
tional section OF the convention. which
ended last night with n reunion dinner
In ,.f f1a oil