New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1928-08-29
are unable to do much better In their

best years since the transportation
law has been in effect than to earn
savings bank interest then they are
either uneconomically operated. it il
! impossible to obtain a fair return,
the valuation or investment figures
are too high. or the bookkeeping is
faulty.
The nation cannot afford to pay
more for transportation and 1t ought
to be paying less. Few eggs are
worse scrambled than the railroad
eggs. The big lines make money and
plenty of it: but there are a horde
of lesser lines which keep down the
averages of the country as whole.
Railing about automobile and bus
competition does not help. Neither
competition would be half as serious
if the railroad rates were lower. The
Widespread development of bus lines
has been possible largely because the
buses have been able to do business
at lower rates than the railroads,
If the rails charged less the buses
would have much harder time
maintaining themselves. The same
theory holds good as to automo-
blles. When man discovers he can
buy an automobile and take his
whole family on touring trips at
lower cost than their combined rail-
road fares would total he naturally
is disposed to take the cheaper
method and owns the automobile
after the tours are completed
Our opinion is that the figures
relative to the net earnings are not
correct. We simply cannot believe,
with the high rates in force, that the
railroads cannot make money. There
has been significant opposition by
the railroads to the valuation figures
issued from time to time by the
Interstate Commerce Commission,
on which rates are supposed to be
based. The railroads value them
selves vastly higher than the /. C. C.
figures, and this in almost every in
stance. The lines would have the
figures based on reproduction costs
"a patent absurdity; while the
l. Z. c. insists on actual investment.
And let it be said there Is a wide
divergence in the figures of a net re-
turn on actual investment and repro
duction costs The New Haven, for
ntance, wants to be credited with an
investment" of $5O,O00,O0O for its
perpetual terminal rights in the !
Grand Central Terminal, which it |
would be ridiculous to concede.
That the railroads are made sport |
If in some particulars is not to be
overlooked. either. The Hoch-
smith resolution of Congress, which
directed the l. c. c. to change rates
O aid certain industries when deem-
d necessary is case in point. The
esolution has it that when an in
lustry is in a slump the l. c. c. has
he power to reduce rates to help
hat industry. This forces the rail-
Dads to make a contribution to an
ldustry with which they have no
oncern. The latest decision Of the
ind was reduction of rates on de-
lduous fruits from California in
RIDER to help the fruit industry in
lat state. AS matter OF fact, over
reduction and not the railroad rates
ere at the bottom of the slump In
lie California fruit industry. As
,sult of this overproduction there
ave been steady price declines re-
ardless of the railroad rates.
Efficient as we think We are in
>mmerce. We have not yet solved
le' transportation business. The
ties remain too high and the re-
rms to the roads remain low. :
,me of the roads are damned with
aaic, too, and could scarcely do
UGH more business. In more WAYS
an one there is no other industry
Re railroading, and sometimes one
inclined to think they We're bet
r off in the days OF less regulation
ID more direct competition be-