The New York herald., 1922-05-15

'For ten months. ten months deficit.
tIncluding Government compensation and
guaranty, profit from sale OF property and
dividends frcm coal companies.
Z. +. Loomis, president of the COM
pany. said that the bad order freight
car situation continued serious
MANY Of your companys cars. which
had been away from it's rails since Fed
eral control. were returned during the
year i'm a crippled condition, lack OF
proper maintenance during Government
operation being largely responsible" he
said "To be prepared to meet busi-
ness revival prompt repair OF these cars
was necessary. Because of the high
rates Of pay and expensive restrictions
governing working conditions for rail-
road employees. prescribed by the
Uriited States Railroad Labor Board, but
which do not apply in other industries,
favorable contracts were made with sew
ersl outside concerns for part OF this
work a total OF 1915 cars were deliv-
cred TO various car builders for general
repairs during the year. on which your
COMPANY saved $780, as compared
wah the cost Of making these repairs at
it's own shops which. in the past, under
rnrmai conditions, have been able 10
take care Of this work.
.As an illustration OF the deplorable
condition of equipment at the termina-
expeuded and charged TO operating eN-
penses for the maintenance OF engines
cars and floating equipment during ls-
a total of s25.13S.717. an increase OF
practically s1.500.000 over the previous
wear and Approximately sS.03I.4Vo more
than would have been disbursed had eN-
penditures been limited for this purpose
to- the same ratio as appned on otner
railroads during the year. ACCORDING
ffrelI
records" -
rrnder the separate heading Gem
eral Remarks to owners OF Railway
cocnrities" inclusion OF which narfs
somewhat of an innovation IN raiiroau
namphlet reports. Mr. LOOMS declared
in connection with the widespread de-
mand for freight rate reductions thal
the only way to restore the purchasing
mower and credit Of the carriers was 10
permit them to earn tair retur. vi
their investment. He also drew atten-
tion 10 the lurking peril OF Government
ownership.
..Thie should be matter OF concern
10 all and particularly to those whose
business Is dependent upon adequate
ard efficient transportation he said
"Jrxneriences with Government owned
railroads I'm other countries. without cN-
ception. has demonstrated the impossi-
biIity OF tnef IefAoImlnS S'iNiNt W "a
character approaching our standards.
and such railroad systems. instead. are
the mere cars-p9w Of. politics, with the
burden Of making UP deficits In the cost
az. operation falling upon the people In
the form OF taxation. To meet this
threatened condition requires an attitude
on the part OF the Government and the
people which will permit American rail-
roads TO reestabish their credit. that
they may be able to finance needed i'm
provemcnts 20 their properties.
at Is necessary that those who would
be fair In regard TO such matters. and
particularly those who have even more
Interest because OF their investments.
SHOULD not only themselves recognize the
situation which has been forced upon
- railroads. but also that they should
...A~e II point TO bring all others to n
realization of the fact that the condition
is not one Of tho railroads making but
the outgrowth Of policy Of regulation
which mistakenly has been carried too
far Likewise Il Is incumbent upon
them to let their representatives In
state and national legislative and regu-
latory bodies know where owners Of
railroad securities stand regarding this
problem, that there may be an end 10
the hamperng ana well nigh stranguia-
tion Of the carries which has prevailed
for the last two decades"