The Bridgeport times and evening farmer., 1922-05-03
Railroads Must Rest Upon Own
 Foundations

Washington, May 3-The conclusion that in the public interest the rail- road industry must rest upon it's own foundations and it's revenues must be SO conStructive1y regulated that the operations of the carriers will produce enough to pay fair wages, cost of ma terials, taxes, meet the fixed charges pay fair dividend and leave 8. mar gin to attract investors of new capi- taI was announced today by the Joint Congressional Commission of Agricultural Inquiry.
 This conclusion, reached by the commission after a study of railroad management and financing, will be set forth in the forthcoming report of the body along with other conclusions and recommendations as follows: First, that the issue of tax free se- curitieS and large expenditures for non-productive purposes by the feder- be reduced to the smallest possible limits so that the taxes can be de- creased and capital funds be allowed to increase for the use at fair interest rates by agriculture, industry and the railroads and thereby help to promote industry.
 Second, that the railroads establish regional traffice executives and or ganize public relations department to bring about closer contact and a bet ter understanding between themselves and the public.
 Third, that new money for railroad improvement should NOT be raised through constant government aid.
 Fourth, that sound railroad finance requires that larger part of the credit necessary for railway construc- ticn be obtained by stock issues in stead of by bond issues.
 In reaching its conclusion and in | making its recommendations Chair man Anderson said today the Com mission utilized this basis:
 '-The railroads are NOT seIf-sustain- ing and are therefore not on a sound | C-a6it "a Cic | transportation service will be crippled and the country will suffer | accordingly.'
 we believe that the transportation Anderson speaking for the C0mmis-
 sion, must be placed upon a solid | foundation. It will not do to make | up deficits by appropriations of pub- | lie funds The railroad companies l must be operated with the expecta- | tion that the gross revenues will be | sufficient to cover operating expenses | and leave a reasonable return upon l the investment. It is of paramount | importance to the public welfare that
 the transportation companies be made | going concerns; that they be placed
 upon a substantial foundation in
 every respect; and that the operating expenses be reduced by careful and | efficient management
 Chairman Anderson said the oppo> sition to further government aid arose from che present obligationse | upon the Congress and the country l at large. and a matter of economic 1 policy.
 Our position" he added, " that l the government should not be called | upon to guarantee that the principal | of railroad securities is safe and that
 the interest and dividends thereon will be regularity paid To obtain
 new railroad capital. the opportuni- | ties to earn and pay regular div1- dends must exist, and railroad man. l agements must be encouraged to ex- ercise the greatest initiative in i'm proving and extending transportation facilities Furthermore. conditions
 should be created whereby the sale Of capital stock by the principal roads will become possible and the continued increase in funded debt will be minimized-'
 Figures in the report will show that