Arizona republican., 1922-04-02

Of the country. Storey based his esti-
mate OF the needs Of ali the railroads
OF the country on the expenditures
which he regards as needed for Santa
Fe EXPANSIONS which he placed at 90
million dollars a year for three years.
While that Is the annual need Of the
Santa Fe for expansions, the actual
expenditures VII not be so much
They viii aggregate 80 millions Tor
1922 for instance.
Storey admitted that there Is
feeling throughout the country thdt
hle railroads are not doing their
share toward bringing about return
TO normal conditions. with resulting
demand for lower rates. He quoted
from Secretary Hoover's statement
before the Interstate Commerce
Commission 10 show that the trans
norfation facilities are below the
needs Of our country and unless we
have a quick resumption OF con-
struction the whole community, ag-
r4cultursl. commercial and industrial
will be gasping from q strangulatIon
caused BY insufficient transportation
the moment that business activities
resume"
The railroads, Storey insisted have
done everything possible 10 heip
bring about a return TO normaicy'
! but are not IN shape 70 do as mucn
| in that direction as other industries
! for the reason that they were not
| allowed TO make any war profits
while the world conflict was in prog
| ress The government. he explained
| paid in rentals for the use OF the
| railroads only the average earnings
| for. three wears preceding. Practlc-
! afIv every other industry IN Inc
| country made money during that pc
| rfod. he said. and the money so mace
I enables them to meet the losses tnaL
/ have come in the liquidation era;
/ The railroads. therefore, he poliiteu
| out. are greatly Handicapped III tH,2
respect. although they nave Hldue
! innumerable rate adjustments uo"h-
,,,a,.d h., order OF commissions or
/ Voluntarily In 1921. he said, the ran
! roads of the country as whole came
4 ont only a little over cost OF pro
! 6uction-about 3 per cent ana they
! actually lack 130 million dollars oI
/ having enough to pay interest on
! their borrowings. Unless chanSe
J copoes there cen be no normalcy
| for the railroads, he argued. -.
| The restoration of railroad creuit'
wronaired before the war by lhe
| stranpuIation regulations" IS neces
| gary TO insure railroad deVelopiilei.i,i'
| storey told the conference. Inc ran
road industry has no reservoir VI
money from which Il can draw ~
| ances whenever directors deciue ~
build more lines" he sald. II mus -,
raise money by getting people 70 ~
| ,-est The money from transpot I'd
tion charges goes TO pay interest oI
dividends but new money must DC
,.aised for extensions, and this money
comes from people who either puy
stock mr. not willing TO take as much
chance as this implies, puy poilus; psI .
xVbo huvs these stocks or bonds !.
,rba reople Of Oklahoma do not; the
T,eonIe of Kansas do not; the people
- HrissioIIri do not We must go 10
nlaces where people are WlhlHs ~
invest their money In sucn secuIl
ties. and. If we raise money, we mus
be able to pay returns on the nlo,Ivs ~. :
| either in interest or diVldehds' my
theory in much OF this western .,a Coull5 :
trv has been to induce the fallrodu
80 80 briid bv promise Of bonus, and
then as soon as built, 70 tax lne
railroad to pay the bonus.
storey said he did not crltlclse tne
,oirinc over Of the railroads py the
government as war measure y.
s,overnrnent accomplished gfea.
STork" he said, but that does nor no,
qaV that the roads themselves couloi
not have accomplished as inuch ~ -
their shackles had been removed. ~
war, the question OF accomplishing ~.
takes precedence over economy. ~
problem presented was TO get Ils
| traffic moved. and X II was NEE
sary 10 send q locomotive y,VvV ..,I1 lliiYT
| for repairs. where ordinafpg ~ w. ~
be repalred at home, Il was sent the
| I 00o miles. II a bad order box caf
| could be used for rough freight sucn
ne brlck. II was 80 used Instead oi
being al once put IN shape for grain
or flour. although from an economi-
caI nnlnt Of Wow q ehOnld haNe Dcen