Evening journal., 1922-03-16

wonderful development in the last
three generations.
Hardly more need be said in sup
port OF the view that without pros
porous railroads the nation itself
cannot prosper. for they are the very
arteries OF its life. But let me call
attention to a few figures which
seem to me very significant
THE railroads Of this country en-
pioy AZ the present time about L.
s5O,O00 workers whose wages are
2" 900, 900, 900 a year. With their
families they account for probably
100000 people. directly supported
by the railroad payrolls.
indirectly, as great purchasers
OF fuel and other supplies. the rail-
roads furnish support and employ
inent to a great many other people.
I have never seen an authoritative
estimate OF their numbers, hut II is
at least possible to make a rough
guess.
Normally our railroads spend
somewhere in the neighborhood OF
$1,000, 900, 900 a year for fuel, mate
rial equipment. etc. Most OF this
money ultimately finds It's way into
wages, and quite possible supports
upward OF 100000 workers fami-
lies. or say another 100000 or s.
900. 900 persons altogether
add these TO the 5000. 900 directly
dependent on the railroad payrolls,
and we have a total OF 1900, 900
or more OF our population living on
the expenditures OF the railroads.
ITO complete the survey we should
have to allow for the many thou
sands OF men who with their fami-
lies, are ordinarily supported through
employment by contractors upon the
great railroad engineering and con-
struction projects which are now un-
fortunately at standstill We
should have TO allow also for the
fact that II the railroads were nor
mally busy they would have on their
own payrols several hundred thou
sand more hands than az present.
Indeed, n we could get at all the
facts It might quite possibly develop
that in healthlly active times the
railroads furnish support to some
thing approaching Is per cent. OF
our total population, either by d.
rect payment OF wages or by pur-
chase OF the products OF other wage
earners.
80 there can be no question as
TO the key position Of tho railroads
in the problem OF winning back our
general prosperity. Their employing
power and their buying power mus
be restored.
Furthermore, they must he placed
in condition to carry properly tn,
traffic which general prosperity vii
| create. II seems hardly possible thai
we can escape at least a temporary
period Of quite severe railroad con-
gestion when trade does revive. due
to insufficient extension Of facilities
in recent years. How to make up for
Ne' deficiency constitutes one OF the
most serious aspects OF what we cal
the railroad problem. but time Is
not available to attempt going into
lt on this occasion.
"Just at present, railroad pur-
chases, as a result OF forced econ.
omles. are probably not over so pei
cent. OF normal That means a lost
buying power to the country OF per-
haps $1,000, 900 900 a year-a very
grave matter when we consider thai
the railroads are the chief buyers
OF the products OF our basic Indus.
tries. the ferrous metals and fuel.
Approximately. 25 per cent. o
the country's entire output OF iron
steel and coal is taken by the rail
roads under ordinary conditions. In
deed, as is generally known, a re
sumption OF railroad buying In th'
past has generally been the sigma
for an upward move in these funda
mental enterprises which has late
developed into a condition OF gen
raj prosperity.
Nothing could help the genera
business situation more at the pres
ent time than prompt easing o
the financial position OF the rail
roads which would permit them I
enter the equipment and materia
, markets again on a liberal scale
start making up their deferred main
b tenance and resume the construc
= ton OF the new lines and facilltie
+ which have so long been held 1
allegiance. II would be like the breat
: of new life to our industries an
, their working forces.
. personally. l am an optimist o
? the railroads for the long pull, jus
as am on the country as a whole
one Is not separable from the othei
But the railroads are not yet wei
They are only hopefully convalescin
land will still need skilful and tende
nursing TO rebuild their net earnin
power and fully restore their credl
I'VE hear a good deal about IN
urgency OF the need for getting raj
road rates down as quickly as pos
r sible I freely concede the advantag
% OF transportation at the cheape,
price which is compatible with goo
! service and railroad prosperity. 81
r lower rates, as an immediate stel
q 10 not compare In urgency with N
i necessity for protecting railroad so
~ency and reconstructing a broa
a basis Of railroad credit
Z "A far greater immediate nee
q than lower rates Is a stabilization
rates. What is holding back busine.
- az the present time Is not so muc
= the fact that rates are what the
are today. as Il is the fact that n
-one knows what they will be fe
months hence Such a conditiC
- makes many forms OF commerci
enterprise more gamble than
IS business undertaking. with rat,