Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-25
RAIL IMPROVEMENT
VITAL, REA ASSERTS
rehabilitation Of Transpcrta-
tion Systems Declared Pres
ent Hour Necessity
IMPRESSION PERIOD ENDING

Dctroit, NIicI,.. May 25.-The United
v..,os 10 emerging from the business
,.nrcssion of the last two years and
,ho vatchword now is progress. Sam
=, p,o nrcsidcnt of the Pennsylvania 10
Mme'.,,road. W.. declared here today in nm nd-
W.. hofore the Board of Commerce
~ this city. ~,
81 ."The last two years said Mr.. Rca.
u,ro bccn period Of anxiety to us
II brcausc the depression was he
w.. w., scvcrc the railroads and the IN
n,str;cs s'"J over experienced. I think the
ou, o,s, is over. and the country has
M.ahed tho condition at last where the
,..moj laws of supply and demand are
.san .sa;n in force, and the country H. get
ssa Mnn n constructive viewpoint. Money
se h"e bccomc moro plentiful for business
nntcrprisc and the output Of our indus
.M ..;o, nlonts has nearly doubled. com
n.rrd with the depth Of the 1921 de-
"a heavy responsibility is resting on
N, railroad world" said Mr.. Rsa.
"ycw equipment is necessary. together
,ub larger yards. improved shops and
sytcnsion of clcctritication OF main
lines, We propose he said. "to re-
ducc the cost Of transportation by in
errasing facilities and improving the
nant and equipment. provided we can
earn iustiiablc return.
Railroad Burden Heavy
"Thc heavy burdens of hostile and
destructive legislation and regulation.
must be oblitpratcd. and the railroads
rslpvcd of the series Of reports. criti-
tisms and Investigations under which
No business could expand. It has been
period of Misunderstanding and n
strngclc for existence. 1nccssant med
dlinc by so many 'dOrtors.' and no
nolicy that produced sufficient net earn.
nrs. has brought about internal and
external friction. and the business Of
tho nntion is hurt. The margin Of
sound credit could not exist because the
earning power was absent. anl increase
In the service had to be abandoned.
Eve have reached n stage whore
thc transportation system of the coun-
trv has to be again vitai2e1. TO meet
the needs Of our advancing commerce.
industry and agriculture. To do this
railroad affairs must. as far as possible.
be removed from the arena where they
must be run to please either politicians,
commissions or labor leaders primarily,
and the passengers, shippers. business
men and owner least of all. Broad
scope should he given to the enterprise
and energy of the railroad owners and
the managcmcnts to carry on their
own business in u reasonable CONNER
cal way. freed from restrictive legisla-
ton and paralyzing regulation.
Rates TO BE Adjusted
an this process of rehabilitation. the
railroad rates and charges will. of
course. be conscrvativcly reduced and
adjusted; the consuming powers OF the
railroads must be resumed by adequate
maintenance of their lines and equip
ment. the labor costs reduced. and like
wise their taxation must be lowered.
You cannot obtain good transportation
service with a depleted plant. or dis
.couragcd managers or dissatisfied en-
ploycs. and owners getting little or no
return on their Investment.
"ln tho last nineteen months under
The Transportation Act the return earned
by all the Class | railroads has been
below ".''I ! 100 per cent. although the
act permitted q per cent per annum. or
MS 900, 600 below the reasonable earn
Ing return fixed in that net. There
fore, ] feel that under such present
and past results, no matter what the
roads may do. they cannot Immediately
remedy the results of the failure of the
transportation system to keep pace with
the growth Of the country in any nor
nal period--all due to an inadequate
return on the Investment -