Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-06-23


mental. Likewise. 1t was extremely
uncertain whether the wisdom of a
dozen Solomons. sitting as railroad
presidents and chairmen of boards.
and as financial hackers of these
great properties, would be equal to
the task of organizing a group Of
systems which would represent fair
treatment of all the interests in
volved. including those of the public.
There now appears to be no diff
Guilty about any constitutional inhi-
bition to the voluntary consolidation
as authorized by Congress. But the
problem Of ~feconciling the interests
of the hundreds of different owner
ships and arrangements of lines to be
merged into systems has proven a
task for which no solution has been.
found.
1t is. therefore. being seriously pro-
posed that. the next step be to fur
ther amplify. the provisions for con-
solfdation SO. as to stimulate the com
sumption. 1t Is my expectation that
legislation to this end will be brought
before Congress at the next session.
Through it's adoption we should take
the longest step which is now FEAST
Bile on the way to solution of our
difhcult problems of railroad trans
portation. -.
Undue Alarm In Some Communities,
There has been undue alarm in
iiis1iy Kansas CITY Inc
ciuded. concerning, the effect of such
consultations upon commercial CEN
tiers like yours. Let me allay the
alarm by reminding you that the
whole question is one of adjustment
and the whole program is to be con-
StfuctlVe, looking to enhanced Serv-
ice, and destruction is as much to
be avoided as failure is to be pre-
vented.
Though, no other nation in the
world offers a parallel in railway
development. those of us who believe
that this program of regional con-
soidation would produce highly
beneficial effects find our belief sus-
talned by recent experience in Great
britain. The railroads of that coun-
Try nave in the last few years passed
through an experience which. con-
sidertng the. vast differences between
the two countries as to. area, geo.
graphic CONFEDERATION, industrial and
socia! organization has more or less
Earalleled that of American railroads.
The United States and Great Britain
were, when the world war famed.
the only two great countries which
had chung unalterably to private
ownership of railroads.
In every other important country
q. considerable portion OF all of the
railroad mileage was owned or OPP
Grated by the government In Brit
ain, as here. the necessities of war
persuaded the government to take
over the roads, place their operation
under more rigorous control than be-
fore and extend financial. guarantees.
In both countries the-results were
expensive from the viewpoint of the
treasury, and highly unsatisfactory
from tHat or the public's convenience
ana the accommodation of business.
In both countries again, the expert
ence went far to dfspel whafeyar
Illusions had been. entertained about
the desfrability of government rail-
road management.
Mandatory I'm Britain.
The parallel does not i. end here
Mhen the war ended opinion in both
countries urged return of the rail-
ROADS to corporate management as
soon as possible. In both this was
erected, and-here comes the most
striking ST. coincidence of all-in both
Legislative provision looking to con-.
scIidation of the many. systems into
q small group of great ones The
diHerence was that in Great Britain
the LEGISLATION was mandatory, re-
roads should be. consolidated into
TOUR great systems; here 1t was per-.
;nissive and. of course. much
larger number of systems Is pro-
posed. The British program has been.
carried into effect; there are now Cour
systems in the country, all organiIe5
around the same general idea of in
creasing efficiency and providing
their. financial stability.
" hfte TINS reorganization has been
In enect only few months. its
carly results are reported to justify
Iuliy.sfhe expectation of better con-
ditfons under it. 1t is regarded as
lonG, step toward permanent settle
ment, on basis fair to the owners
OF the properties, and to the public
Pnnh
possible rates
The necessity for early adoption of
TINS or some other program to place
tne railroads on a sound basis is SO
PRESSING as to make it a matter OF
deep. national concern. Where is no
other issue of greater Importance,
Tor herein lies in large part the So
luton OF the agricultural problem,
ana with 1T the assurance of our in
dustrial position. Nothing el.:c en-
possibly prosper with agriculture de.
pressed, and agriculture is calling
loudiy Tor relief from present trans
portation burdens.
$4,000 Miles Earn Little.
Quite recently Senator Cummins.
the veteran chairman of the Senate
interstate commerce committee, made
the startling statement that probably
10000 miles of our railroads are
earning so little and costing so much
to operate that with scant incomes
they cannot be adequately maintained
ana. expanded, in facility to meet
traffic requirements. If we realize
that this means near one-third of
the countrys railroad mileage, we
Will appreciate the gravity of the sit
nat na1ion m yet there fss 1T IS grimly star
statesmans ship and business capacity. /,
Not long ago the Interstate Com
mere Commission actually granted
up and abandon one piece of over 2S0
miles of railroad. 1t was no frontier
line, in an undeveloped. .uninhabited
section; it was in the rich and popu-
Of railroad literally starved to death
In such a community is. alarming, it I
Is yet less calamity in some ways
than 1t would be in q region possess
the public service. A majority of the |
people tributary to it will, by going
few miles farther, get transporta-
ton from other roads. But there is
many extensive communities now
served by roads, in financial distress.
: There are some roads-many OF
the smaller ones, in fact-whose con-
t many; thousands of people, to con-
siderable towns, to large areas of
country, whose revenues simply can
not provide financial facilities
through earning. pending a consider
able growth in community population,
say nothing of earning any return
whatever on capital invested. No
legerdemain of court processes, re-
ceiyers' certificates, or financial Jug
Cling, can save them. They must
get more revenue or stronger support
or quit operating until the country Is
more largely developed. We shall
nothing to solving their
problem by agreeing that they ought
not to have been built so soon. Nor
shall we help by talking about the
wick edness of men who. years ago,
aYnlnifad n,,hl IL OF q