Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-17

on a serious scale for some time now,
due to the better co-ordinated opera
ton of the several lines.
Then, too. the Government assisted
the railroads o good deal after return
ing them to private ownership by max
new equipment - locomotives, freight
and passenger cars-and to improve
their tracks, terminals and handling
facilities.
All this was very fortunate. for had
not the railroads been enabled to get In
better condition the great industrial
expansion which has taken place IN
possible, for no matter how much goods
may be produced it is of little avail II
it cannot be delivered. Thus far this
year the railroads have handled the
greatest volume of freight in their en-
tire history. For this first eight months
of 1929 freight traffic on American rail-
roads amounted to 325, 1888, III 900 ton
miles, which was an increase of IL $780,
634, 900 ton miles, or 3.5 per cent, over
any previous like period in the history
of American railroading. The last high
record was hung up in 1927. The year
1928 showed falling OF and this years
first eight months show a gain Of 49,
821 $40 900 ton miles, or 6.5 per cent,
over such q period last year.
Own Supplemental Lines.
During the period since the war the
railroads have endured the keenest sort
of competition from bus lines and
trucks and the amount of passenger
trafTic diverted through use OF private
automobiles Is almost incalculable. In
order to meet this competition many
railroads have established their own
supplemental lines of buses and they
now have, in addition to their rails,
some 1853, 900 miles Of motor-operated
lines. These are extensions and side
lines used as feeders for the most part.
Meantime taxes have climbed inexo-
rably. In nearly every State in the
Union the railroads are the largest
single taxpayers. Glass I railroads in
1928 paid no less than $S89,000,000
In taxes. This took 6 per cent OF their
operating revenues. Taxes this year are
higher than last, the first eight months
Of 1929 showing payments OF $27O,-
724, 900, compared with $3.50, 90S, 600 for
a similar period in 1928. During the
last seven years the sums paid by the
railroads to the various governments,
State and Federal, have exceeded by
$4,000, 900 the sums paid in dividends
to stockholders.
The Interstate Commerce Commits
sion and the State commissions have
war. while 1t has been necessary to raise
wages in many cases. Rates were at
high level in 1921, but there have
been successive reductions. Had rates
remained at the 1921 level the Amer
lean public would by now have paid In
freight rates S4,S80, 000, 900 more than
actually has been paid under the re-
duced rates which have prevailed.
The earnings of the various roads
vary in accordance with the wisdom OF
their management, the type OF country
through which they operate and their
facilities for making money. but, taken
as whole, the aggregate railroad
system never has paid as much as 5%
per cent, the fair return allowed by the
Interstate Commerce Commission. Now.
however, the railroad managers see
better times ahead and feel that, II per-
mitted to operate without new legisla-
tive interference. they can begin to make
up for past losses.