The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1928-01-06
RAIL CONSOLIDATION |
viewed AS URCENn
Economic Authority Asserts
Transportation Chief
Problem of West.

The outstanding economic pro-
blem of the Northwest is the cost
OF transportation in the opinion of
Wayne e. B%utterbaugh, transporta-
ton authority and lecturer in the
school Of business of the UNIVERSE
ty of Minnesota.
Neither the shippers nor the
carriers of the Northwest have
been making money compared with
shippers and carriers in other Sec
lions of the country" Mr.. Butter
baugh said in a recent address.
Mr.. Butterbaugh advances two
solutions for this situation: First
to increase the volume of railway
traffic; second-to decrease the
cost of railroad 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
merce Commission, he said, could
take steps which would increase
the volume of traffic moved by the
Northwest railways. He proposes:
"a That the Commission should
grant the railways permission to
reduce rates on transcontinental
traffic sufficiently to divert some
of the water traffic back to the
railways; (2) that Congress should
increase the experimental tolls
now in effect ON traffic through
the Panama canal, and 60 should
bring highway and waterway traf-
fic under the jurisdiction of the
Interstate Commerce Commission.
The railways r being unfairly
Disseminated against, and this is
reacting to the disadvantage and
detriment of the Northwest, Mr..
Butterbaugh believes.
Transportation costs can be de-
creased by permitting voluntary
consolidation. He has no fears
about restricting competition.
"Under present strong govern
ment regulations competition is not
at all necessary" he said. "On the
other hand it is o%ut-and-out waste.
1.-THE interests of shippers, car
r'ers, and regulatory bodies should
be to eliminate waste in transport
lotion whenever there is a posi-
bility of doing so, and consolida-
tons offer such opportunities. Vol
untary mergers will enable the
lines to earn the fair returns set
by Congress upon their property
valuation as determined by the
Commission.
Trans ortation 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, agri-
culture. 1t is, therefore, not
strange that these two industrial
giants are closely related-that the
success of one is, from necessity,
tied with the success OF the other.
When n is depressed the other
is depressed; and when one pros
pers the other is bound to pros
per.
GOl IDlo 1GuoO TIC lidlldSGJO VI
u transportation facilities, on the
one hand, and shippers engaged in
agriculture, in mining, in manu-
featuring and in commerce, on the
other, should work together and
not at cross purposes. Their in
terests 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 from
tier, as does the one Immediately
to the west, with one-twentieth Of
the population occupying one-tenth
of the national area. No other
is so dependent upon far
distant oceans for the final market
ing OF its. products. no other
is so much a o%ne-industry
mo other section of the country
has SO small a home marset, and
must ship SO large a portion Of its
products 50 far in order to reach
Tic ultimate consumer. No other
produces SO large a volume
u products of a cheap, bulky ma
-ure, and hence demanding a low
transportation charge. No other
produces commodities having
transportation cost at destination
so large a share of their total
mo other region is so dependent
.o0n f+1 rafIrO1dr No oAbon ,,oOsa, {
f the United States has so UNI
emunerative railroads, and so i'm
,oyerished shippers.
'The cry is for cheap transport
alton. 1t is in connection with
he charges made for railroad SER
ice that the real problems of the
Northwest are concerned.
Briefly stated. the shippers
lain that rates r too high and
be reduced; and the car
iers claim that rates are already
90 low, and earnings are not suf-
In truth, both parties are
light. Hence, neither can afford
o make any further sacrifices for
he other. Neither can look for re-
ief from the other. Something
aust be done for the benefit of
9th.
"What is needed is increased
raffic and lower operating costs.
'hese are two matters that both
he carriers and the public should
onstantly strive for"