Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1928-01-06
RAIL CONSOLIDATION
VIEWED AS URGENT
Economic Authority Asserts
Transportation Oh eff Prob
lem of Wes..

The outstanding economic problem
OF the Northwest Is the cost OF trans
portatlon in the opinion of Wayne f.
iButterbaugh, transportation authority
and lecturer in the school OF business
of the University Of Minnesota.
Neither the shippers nor the car
riers of the Northwest have been max
ing money compared with shippers
and carriers In other sections OF the
country" Mr.. Butterbaugh said in a
recent address.
Mr.. Butterbaugh advances two solu.
tons for this situation: First-to in.
crease the volume OF railway traffic:
second-to decrease the cost of rail
road operation.
These would have the effect, Mr..
Butterbaugh said, of increasing the
earnings OF the railways and In turn
enabling them to reduce their rates
Congress and the Interstate Com
MERGE Commission, he said, could
take steps which would increase the
volume of traffic moved by the North
west railways. He proposes: %
That the Commission should grant
tAo ioiAndso pCilIiSSlOu " EQutt
rates on transcontinental traffic sut
f~iciently TO divert some OF the water
traffic back to the railways; CD that
Congress should Increase the expert
mental tolls now in effect on traffic
through the Panama canal, and (3l
should bring highway and waterway
traffic under the jurisdiction OF the
Interstate Commerce Commission.
The railways are being unfairly dis
eliminated against, and this Is react.
ing to the disadvantage and detriment
of the Northwest, Mr.. Butterbaugh
believes.
Transportation costs can be de.
creased by permitting voluntary con.
%solidation. He has no fears about re.
stricting competition.
Under present strong government
regulation competition Is not at all
necessary" he said, ION the other
hand 1t is ~out-and-out waste.
"The interests of shippers, carriers,
and regulatory bodies should be to
eliminate waste in transportation
whenever there is a possibility of do.
ing so, and consultations offer such
oPPof thiitiCc. fOluuldly fIeIEpTS VIII
enable the lines to earn the fair re.
turns set by Congress upon their
property valuation as determined by
the Commission.
transportation presents us with
our one big economic problem In this
section OF the country. The leading
Industry of the nation, and of the
Northwest is, OF course, agriculture.
1t is, therefore, not strange that these
two industrial giants are closely re-
lat2d-that the success of one Is, from
necessity, tied with the success OF
the other. When one Is depressed
the other is depressed; and when one
prospers the other Is bound to pros
per.
For this reason the managers OF
our transportation facilities, on the
IL hand, and shippers engaged In
agriculture, In mining, In manufactnr.
ing and in commerce., on the other,
should work together and not at cross
purposes. Their interests are not
divergent.
mo other region In the United
States Is so remote-so isolated-so
distant from the high-seas. No other
region so resembles the frontier, as
does the one Immediately to the west,
with one-twentieth OF the population
Occupying one-tenth of the national
area. No other region Is so dependent
upon far-distant oceans for the final
marketing of its products. No other
region is so much a ~one-industry
region.
mo other section Of the country
has so small a home market, and must
ship so large a portion OF its products
so far In order to reach the ultimate
consumer. No other region produces
SO large a volume OF products Of a
cheap, bulky nature, and hence de-
handing a low transportation charge.
No other region produces commodities
having a transportation cost at destin.
alton by so large a share of their total
value.
mo other region Is so dependent
upon Its railroads. No other region
OF the United States has so unremu.
nerative railroads, and so impover.
ished shippers.
1.-The cry is for cheap transporta.
ton. It Is In connection with the
charges made for railroad service that
the real problems OF the Northwest
are concerned.
Briefly stated, the shippers claim
that rates are too high and should be
reduced; and the carriers claim that
rates are already too low, and earn
ings are not sufficient. In truth, both
parties are right. Hence, neither can
AFFORD to make any further sacrifices
for the other. Neither IAN look for
relief from the other. Something
must be done for the benefit OF both.
What is needed is increased traf-
fc and lower operating costs. These
are two matters that both the car
rioro and the puhyfc chould cnuofoufIv