The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-16
BURR DECLARES THE
REGULATION OF RAILROADS IS
HANDICAPPED BY COMMISSION
Provision Destroys the Incentive for Each Individual
Road to Do It's Best Because if Line Earns in EX-
of Six Percent 1t Must Hand Over
Part to the Government.

P Hudson Burr chairman Of the
Florida railroad commission, whc
spent Thursday in Pensacola. following
the meeting at the city hail for the
purpose of taking steps towards
freight rate reduction Of sand and
gravel to be used in the construction
+, OF Escambia county roads, expr essed
| himself as greatly disappointed that
no representative of the Louisville and
Nashville railroad had been present al
the hearing.
Mr.. Burr will go to Washington tC
attend the hearing of the Interstate
Commerce commission, a general rate
investigation, and stated before leav-
ing the city that he hoped the amend
ment which is sought to the act OF
1920, and the repeal of the so-called
guarantee provision of the act known
as section 15-A would be brought
about, as he believed that the rail
better position 20 cope with their
problems.
Mr.. Burr said that he realized that
the regulation of the railroads in the
various states was handicapped by the
Interpretation of the act of 1920, by
the Interstate Commerce commission
and that the guarantee provision de-
stroys the incentive for each individual
road to do its best because If one line
earns in excess of 6 per cent it must
hand over part of that to the govern
ment as a revolving fund TO take care
of the weaker lines.
In connection with the question of
freight rate reduction, Mr. Burr said:
The counties, the states and the
federal government are each alive to
the great Importance of building per-
manent good roads. The state of Illi-
Nnois is building a great system of
highways, and it is costing that state
$1,000 per mile in freight rates alone
to transport sand, gravel and cement
for construction of these, highways
eighteen feet in width
I'm Florida for the building of high
ways of brick Of equal width 1t. would
cost approximately the same figures
as Illinois is paying.
and should we build any of our
highways of concrete construction OF
equal width, the transportation cost
would be about the same.
And again I might call attention to
the figures of the transportation costs
which will enter into the construction
of the Dixie highway between Lake
City and Jacksonville. This construc-
ton, or so much of it as has so far
been determined upon for Immediate
completion, and which will be con-
structed of rock base and then slug,
will cost in freight rates alone an enor-
nous figure.
There is nothing which will help
the development of Florida more than
permanent highways. and yet there is
a great tax placed upon the construc-
ton of these highways in freight
transportation charges, to say nothing
of the cost of the materials entering
therein, or the work of construction.
Everyone knows that the farmer,
the fruit grower and the stockman are
the actual producers of wealth. and If
their products remain on a pre-war
level, while the prices Of other COM
modities, including transportation, do
not decline proportionately there can
be but one result, and that Is stagna-
ton in all ines Of business.
mo matter where you turn it is
voiced that the present cost of trans
portation is the one, dominant and pri-
mary, the most direct cause in the way
of restoring prosperity to the country.
Or. Ross president of the Florida
Citrus Exchange, says:
Z" In my own county of Polk I find
that we paid last year under this in
CREASED freight rate under which this
fruit industry was developed, more
than million and a half dollars to the
railroads, more clear money than all
the growers made last year
ut is a well established principle of
law, and it has been time and time
again so construed by the highest
courts in the land, that rates must he
Just and reasonable. That is to say.
-'ates must be just and reasonable to
the public, and at abe same time such
as will yield to the carrier a fair re-
turn upon the property devoted to
public use.
In view Of this, and in view Of the
present state of railway operating rev.
eaues, no public authority can arbi-
trarily make reductions in the rail-
road rates because to do so would be
the taking Of property without due
process of law This would mean that
the railways could so into the courts
for protection.
The way see the present situation
is this-that with the heavy burden OF
transportation on commerce, the tax
which it imposes upon production
should in the present emergency be
met by the carriers in a very substan-
tial voluntary reduction in freight
charges. It ought to restore the full
and free movement of our commerce,
and to encourage. production to the
fullest needs of the country, thereby
enabling those who must produce to