Free trader-journal and Ottawa fair dealer., 1922-11-20
SAYS REGULATI0N N
IS RESPO N 81 B | T
FOR RAIL DECLINE
oovr. Is BLAMEp FOR EXISTING
SHORTAGE OF TRANsPoRTA.
rioN AND FOR cuRTAlL OF DE.
\ 5.VELoPMENT.

New York City, Nov. 20.-(By the
Associated Press. .)-Government reg.
ulation is almost wholly responsible
for the decline Of railroad develop
ment and existing shortage OF trans
portation, c. II. Markham, president
of the Illinois Central railroad, told
members of the Railway Business as.
sociation at the annual dinner here
tonight.
For ten years before the war, he
said, unwise regulation Kept down
the rates and reduced the net return
or the railroads, although wages, and
prices and returns earned in other
lines OF business were increasing all
the time.
"The outNtandtng fact regarding
the present shortage Of transporta'
ton IL that It has been met ut the
very beginning of a period Of business
revival Markham said
"In this respect it creates a situa
e ltfon unprecedented in our history
situation which should cause every
farmer and business man every
railway regulating official, every pub
lie man, every wage worker, TO pause
and reflect seriously.
"In past periods OF business revi
val the increase in freight business
has gone on until it has reached a
point 35 to $50 per cent higher than
ever before We may well ask our
selves whether, with the railways
finding it difficult to surpass the
freight record of 1920. they can be
expected within a few months Oh
years to hindle such an increase ir
tonnage al past experience shows
would only be normal in period o.
general revival.
Markham said the situation is due
partly to the coal and shops EN-
ployes' strikes but added that The
large contributing factor was the
more rapid development of the pro
duction AID commerce of the coun
try than the development of the fa
cilities of the railroads.
CLEARLY it is essential to the wei.
fare of the country that the railways
should as rapidly as practicable, put
their existing facilities in good con-
dition. and that they should for some
years rapidly improve and expand
their properties he continued "The
only thing which ever will enable
and cause the railways to carry out
a sufficient program of expansion Is
to let them EARN sufficient net re-
turn TO raise the new capital Tequir-
ca for that purpose"
Repeal of the rate making provis.
ions of the Esch-Cummins transports
ton act would be the most deadly
B blow that could be aimed at rail
road credit and the nations goot
faith and prosperity. Markham said
adding that 1t would tend to cause ;
chronic shortage of transportation
which would seriously hinder all in
crease OF production and commerce
rs long as it lasted.
'9t is plain to every man who
thinks that the wages OF labor can
be paid, the income the ia rmer can
get, the profits that can be derived
from business depend in the long
run upon the total amount of pro.
duction and commerce that can be
carried on. If the necessities, com
forts and luxuTies each of our people
have is to be increased, we must
increase our total production and
commerce more rapidly than oul
population We have always done
this in America But nothing could
be more obvious than that the in
crease in production and commerce
which is vital to the welfare OF ali
cannot be secured without a cor,
responding increase in transports
tion' "A. ss