New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1926-12-09
Ice. SUBMITSI7S
ANNUAL STATEMENT
Control Of Consultations Of
Railroads Asked

Washington, Dec. Up - Nor,
power to control projected consoli
dations of railroads was asked o
congress today by the Interstate
Commerce commission.
In recommendations that wert
made part of its annual report. the
commission sought authority to COM
pei the promoters of any given con
solidation to include in their scheme
such other railroads or railroad pro.
perty as may be deemed likely tt
benefit the public service, wher
these can be obtained on reasonable
terms.
A wide jurisdiction over consolida-
ton projects generally was likewise
requested, including elimination OF
that section of the present law which
requires the commission to prepare a
general plan by which all of the car
riers In the country may be merged
into 10 or 20 major systems.
Wants Steel Cars
In connection with its general
work, the commission repeated a
recommendation that congress by
law require railroads to use steel or
steel underframe passenger cars In
train service. and to forbid the In
clusion OF wooden-frame cars in
trains consisting in part Of steel cars.
Reviewing its years work in rail-
road regulation, the commission be-
gan by remarking the general in
crease in railroad earnings.
Since 1920, there has been sub
stsntial increase in railway net earn
ings each year" the report said.
1.-The net railway operating income
Of Glass one carriers was practically
nothing in 1920; s1,121, 900 in 1925:
and in 1926 a further increase OF
1872 per cent appears in the returns
5of the first eight months. This show
ing is the net result of changes with
in the period of volume of traffic,
freight rates, In wages and in prices
OF material, an, in other influences
affecting operating expenses.
Growth In Income
THE growth In net railway opey-
in part dependent upon growth in
the investment In the five-year per-
iod 1920-o5 the total railway capital
increased from s20.09S,046,374 to
s21,79s.241,424. The ratio of net
income, after fixed charges, to the
capital stock was $50 per cent in
1925. This Is nearly equal to the
corresponding figure, $40 per cent
for the calendar year 1916, the re-
cord year for this ratio"
Since congress in 1920 authorized
the commission to allow railroads to
proceed with consolidation projects,
the report continued. control over
$1,000 miles Of line has been trans
ferred, and the question of permit
ting consultations is pending as to
a very large additional mileage. The
merging of railroads was shown to
be proceeding steadily. though in the
case Of two of the largest projects
for merger brought before the COM
mission, that of the Nickel Plate
railroad, and OF the Norfolk and
Western to acquire the Virginian. the
commission refused to allow the con-
solicitations to proceed.
Railroad Levies
Railroads are now required by law
to pay to the government half of
the excess amount they may earn
above "a per cent annually on the
value Of their property. and tentative
audits indicate that sl5.054, 90S is
now collectible by the treasury.
However, in view of the difficulty in
settling upon the valuations of
railroads concerned, the report sug-
gests that legislation to make the
system workable is needed. In actu-
atty, the government has only OBJ
tanned 100000 from its excess
earnings claims since 1920, and this
amount is being held by the gov
eminent subject to final adjudica-
tions.
Practically all of the accountings
and payments between the govern
ment and railroads left over from
the wartime federal control of car
riers have now been settled, the re-
port continued, but claims still are
pending on account of the guarantee
OF earnings which was given the
controlled roads for the first six
months after their return to private
ownership. The commission estimat-
ed that $4,000 would clear up all
outstanding debts on this score. and
advised congress 20 compel claim
ant. to seek a final disposition of
the matter
Increased Earnings
In Its studies of railroad traffic, !
the commission noted noted that
increased earnings had been OBJ
tanned in the face Of a marked de-
cline Of passenger travel, and in
spite OF limited expansion of freight
business. In 1925, railroads carried a
total of 02,00O,00o passengers, /
while In 1920 the number was 1870 +
100000. In 1926. the first six months |
of operations have shown that pas
senger travel is less than during the |
same period OF 1925 by 2.S5 per |
cent The average length of journey |
per passenger has, however, increas- |
ed during the same period. The fall |
ing off in numbers is attributed to |
increased use OF motor transporta- |
u.on for short distances.
So far during 1926 the freight /
business OF railroads has been more .
,oluminous than during 1924 and .
1925, though 1928 traffic volume .
still remains, in tonnage. the largest
on record. New high weekly records |
have been set several times during
the year by car-loadings of revenue .
freight.
TEACHER \ SUICIDE
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