The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-22
h AL OUTLOOK
GOOD, SAYS
WILLARD
President Of 3. & o. System
Says U. s. Has An Trans
!, portation Facilities Needed.
BY w. s. COUSINS,
Copyright, 1924. by Cosmopolitan
NIax,a esar,,tos \

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Copyright, 1924. by Cosmopolitan
News service.)
NEW YORK, April 22.--An en-.
couraging outlook for the American
railroads is seen by Daniel willard,
president Of the Baltimore and Ohio
railroad. system. VINO outlined for
Cosmopolitan News Service today
some of the factors which in his
opinion will contribute to the
strengthening of the roads and the
enlarging of their facilities for the
service of the public.
"In the last twelve months, .
said President Willard, American
business and the American travel
ing public have had substantially
|all the transportation facilities
needed. Anticipating possible inter.
ruptions to railroad service by
coal strikes this spring, many Inn
portant departments of business
forwarded goods which otherwise
they might have kept at home, and
to that factor may be attributed in
part the falling off in transport alton
business in some sections, notably
In the coal carrying trade.
Increased Facilities.
GAS result of the additions
made to transportation facilities
last year, shippers have come to
realize that they can now secure
prompt and dependable service, and
are not in such hurry to start
shipments on their way as former
ty. There Is a large surplus Of
transportation facilities in the coun-
try today, in fact more than 245,-
600 idle cars, but this surplus is no
larger than it ought to be, for it
Is always necessary to keep a safe
reserve in anticipation Of peak de-
mands. And even when railroads
have idle cars and engines on hand,
they must arrange to buy more.
They must have bigger and more
powerful engines, for the purchase
Of which they are constantly seek
ing the use of investment funds"
Mr.. Willard believes that the rail-
roads can earn the prescribed rate
lof return upon the lawfully ascer-
tanned value" Of the properties, pro-
vided the existing basis Of rates is
not seriously changed, and provided
the volume of business to be moved
continues satisfactory, and provided
also that there are no further sub
stantial increases in material and
labor costs. Last year the railroads
in the United States as whole
fell short Between one and two
hundred million dollars of earning
the rate of return which the Inter-
state Commerce Commission under
the provisions Of the transportation
act fixed as fair, but Mr.. Willard
believes that the increasing effici-
ency which has clearly been demon
strated in the opinions of the last
year, and the larger production
unit which will be secured through
new and improved equipment, will
tend to bring about the desired re-
suit.
Freight Rates Lower.
Every week thousands of
changes are being made in freight
rate schedules" Mr.. Willard de.
clared, land rates are being all the
time reduced. Not only are freight
rates in America lower today than
amy other country of our standard,
but relatively lower than they were
here before the war. While the
general cost Of living has advanced
So per cent since 1914, railroad
rates as whole have advanced
only 81 per cent"
In his recent testimony before
the Senate Committee on Interstate
Commerce Mr.. Willard presented
arguments against the repeal of
section 15-A of the transportation
act, the so-called guaranty clause,
which, however, is not a guaranty
|of minimum earnings on railroad
valuation. my object in appear
ing before the committee" Mr..
Willard declared, was to explain
as clearly as / could, why this sec.
ton was included in the transporta-
ton act, and why I think It s a good
thing to have it remain there, and
also why I think it would be harm
full both to the railroads and to the
country to remove it.
Urges Fair Return.
1.-THE chief value of section 15.A
of the transportation act is the as
surance which it seems to give
that It was the desire and intention
Of Congress that the railroads
should be permitted to earn a fair
but not excessive return upon the
appreciate value of their property
devoted to public use, and also that
Congress recognizes that it is neces-
sary in the public interest that the
railroads should be able to main.
tain satisfactory credit in order
that they might be able to obtain
the large amount Of new capital
needed each year for additions and
betterments.
confidence is the very essence
and foundation Of credit. Section
.15-A was intended to inspire con-
fidence in the fairness and stability
in our scheme Of railroad regula-
ton, and If Congress withdraws the
assurance, I am sure it would be
looked upon as equivalent to saying
that Congress is now unwilling to
approve of policy which simply
assured to the railroads as nearly
as may be, but without guaranty,
a fair return upon the lawfully as
certained value Of their property"
IA ,@f,4 E,4-' I
Ill G! EXPORT OF WHEAT.