New Britain herald., 1923-06-23
RAILROAD MERGERS
GOOD, SAYS HARDING
IN Kansas Talk He Approves Of
Sectional Systems

Kansas city. Ne, Jane ss-cear
seiiesnen 81 the railroads Of ths
eonntIh iRta 3 small number ~ sys,
tens 70 q rational, lusiihahls step, fnl
81 promise towards solution Of tbs
transportation problem, Persistent
Harding declared here las, night IN
ne second prepared address Of his
western trip
II the system consultations viii
Tat sffaFa she 'salulieR,n he sail,
then eur failure Rill enforce = cost
lisF experiment. sRd the one great
commitment which I hope the United
states Nlll forever escape"
The executive expressed the belief
'hs' this one great sammitmeRl-ga gov
fFHmsRt operation Nauld be "a CO.
lassal hlnndeF which would destroy
Initiative, infect us With political ears
ruptiaa, create isaiensies ami impose
'Reaienlahle cast On the public
treasury"
Discussing relations between the
carriers and thsiF employees as vital
tseieF IN the transportation situation,
ihf president announced that he "a
sefsa continuance ~ the railroad la
her heard under such notifications
as seem nesi likely - make the plan
successful" He said he was not con
siReei tina, the test ~ this plan had
beer - complete and entirely fair
ore" hn, added thai "ihere is little 10
hope Ter nntil III concerned are ready
- comply promptly with the boards
decisions"
Hits Roth Sides
I am frank 20 say" he continued.
I 10 not hope for compliance on the
rsFt 81 employees So long as decisions
aFe ignored by the managers"
Ths sort ~ consolidation Of the
carriers which Mr. Harding advocated
rnntemrlatss constitution Of the
larger systems 80 that the weaker ana
improbable lines would hs able 20
lean upon The financial strength OF the
stronger and profitable ones until the
growth Of the country makes them all
earn lust return upon the capital
inverted The whole would he under
rigorous government supervision"
such a consolidation" tho presi-
dent asserted, would effect q diminu.
finn In rates without making a net re.
turn impossible" and AZ the same
time would make sound finance pos.
sihle for expansion
There now appears 70 be no din
Guilty about my constitutional inhihi-
ton TO the voluntary consolidation as
authorized by congress" the executive
continued but the problem Of recon
Cling the interests OF the hundreds OF
different ownerships and manage
nlents OF lines 70 he merged into sys-
TENS have proven task for which no |
solution has been found.
TT is, therefore. being seriously |
proposed that the next step be 10 fur J
ther amplity the provisions for con-
solidation so as TO stimulate the con- +
summation. It is my expectation that
legislation TO this end will he brought |
before congress at the next session
small Roads Needed
There are some roads--nany of the
smaller ones in fact-.-whose continued
operation is absolutely vital to many
thousands of people. TO considerab Bile
towns, to large areas of country,
whose revenues simply can not pro
tide financial facilities through earn.
ing. pending a considerable growth In
community population, say nothing of
earning any return whatever on cap
ltal invested. NO legerdemain Of
court processes. receivers certificate,
or financial juggling, can save them.
They must get more revenue or
stronger support or quit operating un-
til the country is more largely de-
veloped.
THE railways have become public
y sponsored institutions, and govern