Arizona republican., 1922-01-30
SCHWAB DECLARES
RAILROADS To BE
PRIMARY PROBLEM

one Of the visiting railroad men of
the last week called attention to the
address of Charles NJ. Schwab at the
annual dinner of the Ohio Society of
New York. His theme was the con-
dition of the railroads which he re-
garded as the primary problem be-
fore the American people, and that
1t would have to be solved before
there could be return of prosperi-
". The solution could not be at
tained by juggling with rates. for"
said Mr.. Schwab," we have imposed
upon our railroads a network of laws
and restrictions which has made
their rates no longer responsive to
the changing commercial needs of
the country, which has taken from
their managers the power to exercise
initiative and enterprise and which
has made private capital unwilling to
embark in railroad development ex-
cept under the most rigid guarantee.
Il am a firm believer in the fact
that the way to get results in life
and in industry is to put your faith
In men. When / vert into the
Emergency Fleet corporation, did
very little work myself but got great
results because ] spent my time in
making the men in charge OF the joDI
understand that / was behind them.
giving them encouragement and
confidence"
Mr.. Schwab pointed out that in the
last two years the roads had aban-
doned more miles of track than they
had built and in that period they had
retired more passenger and freight
cars from service than they had in. |
stalled. That, thought Mr.. Schwab, |
would not be strange thing in a |
country that was going backward, |
but 1t was very serious one in a |
country with a future.
He said that 1t would take five bill |
lion dollars to put the transportation |
companies abreast OF the country's |
requirement and TO make up for their |
inability to expand and progress dur
ing the past few years. Said he, '1f |
we were to have an outburst of in |
dustrial prosperity 1t is altogether |
that our railroads would be
able to carry the BURDEN
He deprecated the knocking Of the
railroad presidents and |
railroad men in general. The roads
had had sufficient drubbing, more
han any other industry had ever sus-
tanned. There had been evils in the
past but the damage done in the re-
Of enterprise and the pre-
OF progress had been inf
nitely greater than all the material
harm due to financial scandals which
we're committed. Laws should pre-
vent scandal. he said, and evil doing,
out care should be taken not to stifle
progress.
He expressed the fullest faith in
he leading railroad men of today
md he believed that there was never
| finer and more conscientious lot OF
nen than those who were trying in
he most difficult circumstances to
discharge their duty to the public.
han the railroad men of the present
ime. He described the rise from
he bottom OF the ladder Of such
abroad heads as Samuel Rea, DAN
el Willard and Frederick Underwood
vho had risen by sheer merit.
The people, said Mr.. Schwab, are
he bosses of the situation, and they
ould greatly assist in the solution
t the railroad problem by getting
ack OF the railroad leaders.
Said he: "My message, therefore.
o the American people is that as a
MEASURE to contribute to the revival
I prosperity in the country, let us
epeal all the laws we have on the
tatute books which repress initia-