Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-03-16


roads furnish support to something
approaching 1870 OF our total popula-
ton. either by direct payment OF
wages or by purchase OF the products
OF other wage earners. SO thcre can
be no question as to tho key position
or the railroads in the problem OF
winning back our general prosperity.
Their employing power and their buy
ing power must be restored. Further
more. they must be placed In condi-
ton to carry properly the traffic which
general prosperity will create. 1t
seems hardly possible that we can es-
cape at least a temporary period OF
quite severe railroad congestion when
trade does revive. due to insufficient
extension of facilities in recent years.
How to make up for that deficiency
constitutes one OF the most serious
aspects OF what we call the railroad
problem, but time Is not available to
attempt going into It on this occasion.
Just at present. railroad purchases.
as a result OF forced economies, are
probably not over Soc OF normal.
Tk2t means lost buying power to
10 country OF perhaps 1,000,00o.0o0
a. year-a very grave matter when we
consider that the railroads are the
chief buyers OF the products OF our
basic industries. the ferrous metals
and fuel. Approximately, $3.50 OF the
countrys entire output OF iron. steel
and coal is taken by the railroads I'M
der ordinary conditions. Indeed. rs is
generally known, n resumption OF rail-
road buying In the past has generally
been the signal for an upward move
In these fundamental enterprises
which has later developed into a
condition OF general prosperity.
Nothing could help the general
business situation more at the present
time than prompt easing OF the H.
nancial position OF the railroads which
would permit them TO epter the equip
ment and material markets again or
a liberal scale. start making up theil
deferred maintenance and resume tho
construction OF the new lines and Ia
cilities which have so long been held
in allegiance. 1t would be like tn,
breath OF new life 10 our industrie,
and their working forces.
Personally. I am an optiuist on IN.
railroads foe the long pull Just as
am on the country as whole; one 1:
not separable from the other. But tn,
railroads are not yet well. They ar,
only hopefully convalescing and viii
still need skillful and tender nursins
TO rebuild their net earning power an,
fully restore their credit.
1--WE hear good deal about IN,
urgency OF the need for getting rail
! road rates down as quickly as possible
l freely concede the advantage o
transportation at the cheapest Tric
which IS compatible with good servic
/ and railroad prosperity. But lowe
rates, as an immediate step, do no
compare in urgency with the necessit
, for protecting railroad sOlvency ant
demonstrating broad basis OF rail
road credit. \ far greater immediat
need than lower rates IS a stabNiza
ton OF rates. What is holding bac
business at the present time is no
80 much the fact that rates are wha
they are today, as it is the fact tina
no one knows what they Will be
few months hence. Such a condition
makes many forms OF commercial en-
terpriZe more a gamble than a busi
= ness undertaking. With rates stahil
lied. business men would know wher
they stood and could safely go ahea
and make their plans accordingly.
The railroads have thus far no
, been able TO earn much more thAI
hall OF the 6 per cent minimum retur'
specified by the Transportation Ac
and intended 10 be conferred by IN
: Interstate Commerce Commission. Ls
US get them started functioning prop
!. erly. buying freely, and employing fu
forces OF workers. Then. II Il appear
that rates can without hazard h
: brought 10 generally lower levels. W
: Will be IN a position 10 60 ahead Wit
the assurance that We are on sal
4. ground.
a Hopeful OF the Future.
= Meantime. OF course, any specif
rates which actually impede the flo
= OF traffic should be revised: any II
= eQualiues or discriminatory situation
= existing in the rate structure shoul
IS be corrected. Thousands OF sue
% changes have been made IN the la;
! few months and are being made 4
: day and the processes should be cor
e zinued in an orderly manner, with RI
= sulting benefit TO all. have express
! ed myself as hopeful for the railroad
\ future. That feeling IS based upon Il
L improved state OF public opinion 4
5. ward the railroads, the development
: lative policies, and the unmistakab
- sOunder and more constructive reg
8. evidences. OF fundamental improv,
y ment in the relations between railroe
5. arrangements and working forces. II