Douglas daily dispatch., 1926-12-10
|. c. c. WANTS.
CONSOLIDATE
CONTROL RIGHT

power to control projected consolida-
/ tions of railroads was asked OF
congress today in the interstate COM
merce commission.
/ In recommendations that were made
| a part of its annual report, the COM
| mission sought authority to compel
the promoters OF any given con-
solidation to include in their scheme
}such other railroads or railroads
property as may be deemed likely
TO benefit the public service, when
these can be obtained on reasonable
terms.
A wide jurisdiction over consolida-
/ tion projects generally was likewise
requested, including elimination of
| that section Of the present law which
/ requires the commission to prepare
general plan by which all of the
carriers in the country may be
merged into 10 or 20 major systems.
In connection with it's general work
/ the commission repeated recon-
mendation that congress by law re-
quire railroads to use steel or steel
underframee passenger cars in train
service, and 20 forbid the inclusion
of wooden-frame ears in trains con
sisting,1 in part of steel cars.
/ Reviewing it's years work in rail-
/ road SPECULATION the commission be-
! gan by renlarking the general IN
crease Sin railroad earnings.
Since 1890 there has been n
substantial Increase in railway net
/ earnings each year." the report said.
The net railway operating income
of class one carriers was practically
nothing in 1920, $1.121,0OO in 1925
and III 1926 a further increase of
1872 per cent appears in the returns
FOR the, first eight months. This
showing is the net result of changes
within the period in volume of traf-
fic, freight rates, in wages and in
Frices of material, and in other
influences affecting operating ex-
pensos.
THE growth in net railway operat-
4 ins income is accompanied by and
IN par dependent upon a growth in
the investment. In the five-year
reriodrA 192025 the total railway
capital Increased from $2O,09S, ,O46,374
20 $21799,241,424. The ratio of net
incomes. after fixed charges, to tho
capital stock was 500 per cent in
1929 This is nearly equal to the
corresponding figure, $40 per cent for
the calendar year 1915, the record
year for this ratio.'
Since congress in 1920 authorized
! the commission to allow railroads
: 20 proceed with consolidation pro-
jects, the report continued, control
over $1,000 miles of line has been
1 transferred, and the question of per-
hitting consultations is pending as
] to very large additional mileage
Tie merging of railroads was shown
to be proceeding steadily, though in
4 the case of TWO of the largest projeca s
for merger brought before the com
mission, that of the Nickel Plate
! railroad, and the Norfolk and Western
! to acquire the Virginian, the COM
i mission refused to allow the con
solida+ions to proceed.
Railroads are now required by law
to pay 20 the government half OF
the excess amount they amay earn
above 3-4 per cent annually on
the value of their property, and
tentative audits indicate tha. $I5,-
O549OS is now collectable by the
treasury. However, in view of the
difficulty in settling upon the valua-
tlons of railroads concerned, the re-
port suggested that legislation to
make the system workable is needed
J In actuality, the government has
4 only obtained $1,000, 600 from its
excess earnings claims since 1926
and this amount is being held by
the government subject to final
adjudications
Practically all of the accountings
and payments between the govern.
ment and railroads left over from
the wartime federal control of car,
IRE have now been settled, the re.
Fort continued, but some claims stii
are pending on account of the guar.
antee of earnings which was giver
the controlled roads for the first sis
months after their return to private
ownership. The commission estimated
that $830,000 would clear UP all out.
standing debts on shis score, ant
advised congress to compel claimant,
to seek final disposition of tn.
matter.
In its studies of railroad traffic
the commission noted that Increased
4 hetu pe0H ODCdlnGQ in the
race of marked decline of pas.
senger travel, and in spite of limited
expansion of freight business. II
1925, railroads carried total OF
9O2,OOO,O00 passengers, while in 1926
the number was 1,270,0OO, 900. II
1925, the first six months of opera.
tions have shown that passenpe,
travel is less than during the same
period of 1925 by 2.S5 per cen.. This
average length of journey per pas
senger has, however, increased durine
the same period. The falling off II
numbers is attributed to Increased
use of motor transportation for short
distances.
So far during 1926 the freight
business of railroads has been NOR,
voluminous than during 1924 ant
1925, though 1928 traffic volume SSH
remains, in tonnage, the largest on
record. New high weekly record.
nave been set several times during
the year by car loadings of revenue
freight