Evening star., 1926-08-23

Recognition of efficiency on the
part of the country's railroads is given
in the press comments on the reports
of earnings for the first half of the
present wear. All previous records
were ec1ipsed. Now the hope is ex'
pressed by many editors that this bet
ter financial situation of the roads.
achieved by careful management. Will
not he seriously affected by new wage
or rate derna nds.
"Not all the roads are making
money" it is pointed out by the
PHILADELPHIA Public Ledger. which be-
lieves, however. that most of them
are we'll out OF the financial woods. y
and that their prosperity has helped
maintain the general level of ma
tional being" while their pres
ent sound position is one of the hope
f,l factors for the future. How long
they can hold that position is a ques-
ton" continues the Ledger. The
West is trying to force rates down.
while rail labor is working to drive
wages upward. The roads VIII ne
caught between the upper and the
neither millstones.
"If the wage demands are granted
saws the Baltimore Sun, they VIII
add many millions to operating COSTS
and as there does not seem much
prospect of large reduction in these
costs by Increased efficiency. the
roads would. no doubt. follow prompt
Iv with an appeal for increase in
rates in order to pass the burden over
to the public" The Sun directs at
tention to the efforts of the media
tion board recently created. and hoins
that with the moderating influence
of that board the roads ana thelr
amnloves are expected to come 10
arreament fair to both and to the
pubIic. The country is Vltally inter
ested in this effort. the most ampi,
tious vet made. TO settle lnuustrld'
disputes by peaceful methods con-
cludes the Sun.
The present situation is credited pE
the Chicago Daily News 10 Years vi vi
nersistent effort and marked success
IN annlving new policies of economy
and efficiency" but that paper also
~ recopnizes that prosperity, like ad-
versitv brings problems in its TRAIN
So.cailed agrarian politicians, the
News declares. "are certain 10 de'
mand more insistently than beIore
Substantial reductions in the rates on
anricultural products. At the same
time they will oppose the pendihs pill
nroviding for reductions IN tne Ia.e
of interest paid by railroads on ueptS
due the United States IoVerliiieli.'
It is to be borne in mlnd' noMe'e, ,,,
that figures for the carriers as an
&c NO whole are necessarily mis-
1aadinp since the prosperity now en-
io1ed nv the railroads is FAR from
Io;no universal. In the Northwest
for example, carriers are not apPIoA,
i,,,atinp the fair return fixed by the
transportation act. e,.o o,ree1
.aTbe approach to the figure agreet
on IN the TRANSPORTATION act as assur
;ne fair return" contends the IN
diananolis Star. SHOULD not mean ina
Tho Nations transportation llneS are
to be subjected to further leslsla't so
tinkering. nor that excessive "dee e ue
| mands should offset the 1mproNelneli. i..
reflected in the last six months puei
ness. The practice in the past iia' M
been largely one of attempting 10 ~ ~
| pose new handicaps whenever t'i'
roads seem to be definitely earning
| fair rate. They have achieved ma
tarial proeress along the lines OF EN-
| cheney and economy, and should %
! left unhampered to work out thei
| own problems"
! THE ratio of operating expenses u
| gross revenues in the first six montn
| Of this year." states the New fort
| Herald Tribune. stood at 1894 pc
| cent, against 77.33 per cent yea
ago in the corresponding period. Thi
| improvement in operation may be SAT-
| to be due almost entirely to the con
| structive attitude taken by the rail
| roads themselves in eXpending liter
| ally billions Of dollars in new equip
ment and rolling stock. relying on tn
| assurance that the transportation ac
| would fulfill its promise to see tha
| they received rates sufficient to enabl
| them to earn a decent living and L
| interest capital on favorable terms.
| fair return on our railroads Is not ;
| luxury, 1t is an economy. The prog
ress Of the world has been In direc
| proportion to The development of com
munication n1Ktransportation. and ;
we'll organized, well maintained ant