Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-11
RAILS BIG ACTORS
IN U. S. Prosperity
Hand-to- Mouth Buying Is
Greatly Aided by Car
riers' Efficiency.

Special Dispatch 10 lie Ctil
NEW YORK, July 1.-THE class /
railroads of the United States finished
the first half of 1928 with an average
profit of little better than Az per cent
on property investment, it was dis
closed today. Yet the major part Of
the present prosperity of the United
States may be laid at the door of the
common carriers,
Under the new and universally
adopted policy of what once was called
hand to-mouth buying" industry has
become more dependent on transpor-
tation and never have the transporta-
ton systems of the country been IN Such
magnificent condition and so efficiently
operated.
The period of greatest earnings now
is approaching and there is every rea-
son to believe that the majority of the
roads will wind up the calendar year
with better showings than In 1927. 1t
is notable that while gross revenues
dropped Al per cent as compared with
the first part of 1927, operating ex-
penses we're reduced So per cent.
Improved Railway Service.
c. B. Scarborough, assistant vice
president OF the Pennsylvania lines, de-
clared today that the expansion OF IN
dustrv. with its attendant employment
at high wages, was made possible by
the Improvement in railroad service.
"A few years ago." he said, only
10 per cent of the Pennsylvania Rall-
road freight trains moved on regular
Schedule. Those were the ones carry
inc live stock and perishables. The re-
r,ainder moved as freight accumulated,
and consequently the time OF aTrlVai
was extremely uncertain. NOW w per
cent of our freight trains are operaCeo
on regular schedules just Ike pasSenrs
ger trains. The present system Va
hand to-mouth buying, Wnlch sen4
orally recognized AS one OF Cne iloS'
in,,,ortant elements of the present era
~ mp GENERAL prosperity, arose largely out
~ fhe regularity of freight movement
and would have been impossible WIN
out 1t. .,. o,,,os husi-
ness concerns to operate with lower
Inventories than were ever Delore
,,ra cticable. and thereby has released
200 amounts of capital for more prof.
;ta6le employment. Another eHect Oh
this new efficiency has been 10 mililin-
loo the speculative seasonal varlatiolls
T., business. because the merchant can
now spread his order more evenly over
'i'T TfSciencv of equipment and person
mol in the railroad world mas pIousil'
a direct benefit to the roads tnenseiv .
In 1927 the American and Canauiail
roads paid out $38,7l3,OoO IN cIdliliS
growing out of loss and damage 10 SIM. ~,
ments. But as compared with ds%u Ill, Itlis
was a reduction OF $82 Ooo,OUo, ne ns
RI I n S0lelQS Oh
Ch;caoo chairman of the claim pre-
ventinn committee of the freight claim
6ivision of the American Railway AS
sociation. have not only striven 10 eillnl-
nate causes that might provoke Damage
claims but have worked to educate the
shinners to the need of better contain
erS and more effective methods OF pack
ing. co,,,a
THE problem of claims, Mr.. ShleluS
said has been reduced to science
There are % principal suces ana IN the
last wear reductions were recorueo III
is If these The greatest increase was
shown in rough handling. Losses que
IN robbery In the last year were the
smallest since 1920 and showed re,
auction of 900 per cent as compared
with that year Every year sees a
lessening in the rail and imaginary
damage to goods that are handled oy
railroads" ....o..o,,4 a.,
In no line has the improvement IN
Transportation been made more eVloent
than in the handling OF perisnaole
foodstuffs. Today there are hunoreos ol
trains bringing garden truck from S,Vuu
miles or more into the larger cities
This has widened the scope OF opera
t{o,~s ~ the grower made him nde-
nendent of the local markets and built
IN A new profession among the men
handling such products where success
ful distribution is a factor.
Distribution. according to Magnus w;
Alexander, president of the National
Industrial Conference Board Is the mann
ID rtnr in industrial prosperity.