Evening star., 1930-12-13
RAIL 4CzAR' URGED
/. FOR U. S. CARRIERS
Mark W. Potter Suggests a
"Judge Lands" in Pres
ent Situation.
special pispatch 70 The star.

Special Dispatch TO The Star.
NEW YORK, December 13.-Ths
present serious plight" Of the rail-
roads. "the worst they have ever been
in," Is marked by q strange absence Of
constructive suggestions from the car
riers themselves, according 10 an
article by Mark w. Potter in the cur
rent issue of the Manufacturers Rec
ord. Mr.. Potter was formerly presi-
dent of the Carolina, Clinchfleld q
Ohio, former member of the Interstate
Commerce Commission and was one
OF the receivers of the st. Paul o few
years ago.
Rivalries Among Carriers.
He is of the opinion that the rail-
roads could take q valuable lesson from
motion pictures and base ball and
name "czar" to bring order in the in
dustry. "a Win Hays or q Judge Lam
dis OF railways would do wonfters" he
asserts. The rlvalries of individual
ambitions and conflicts areenot having
happy results. Government ownership
should not be the corrective. but 1t may
be the only way out, unless different
views are taken of carrier responsibility.
II matters go on as they are going now
would not be surprised If within five
years the carriers generally were clam
| oring for Government owneship, at
least or rights Of way and all fixed
properties to be operated by operating
companies. That would put the MAIN
tenance and tax burden on shippers
generally, where it belongs.
THE worst thing about the present
situation is the general tendency toward
lower rates, without regard to what
| they mean, or whether lower rates, in a
true sense, serve the shippers using
them.
There is altogether too much en-
phasis placed everywhere on the i'm
portance of lower rates. There is al
most universal failure among shippers
to realize that, wherever there is dis
treSs higher rates are what shippers
| need. It makes no difference what the
| commodity Is or what the condition Of
| the shipper is, shippers are never bene-
| flied by rates which embarraSS the car
| rier. No one Is ever entitled to be
served by any one on a basis which
does not fairly pay the renderer of the
service for the service rendered. No one
is ever benefited by crippling the serv-
ant through failure to pay fully and
fairly for the service which he renders.
II overnight all rates everywhere could
be boosted TO point which would sus-
/ tain all carriers and pay fair return
on the values used in the transporta-
ton service it would go a great way to
overcome the present so-called depres-
sion by stimulating purchases.
Earnings Reduced.
'T say this notwithstanding the fact
| that believe carriers themselves are
| to blame for a lot of their adversely.
| Nor does the fact that a general rate
increase would be beneficial mean that
| such an increase should be made. Car
rier earnings are continually being re-
! duced by whiting and reducing rates
here and there and everywhere in or
der that a particular carrier may ac-
| compliah something that seems to serve
| its interest and notwithstanding the
| fact that such whiting by the indi-
shocking damage in amounts far great
| er than the benefit which the whiting
| carrier can obtain.
1T is questionable whether q fat,
! unpooled increase should be made.
| Some carriers are in distress, while
others are not. The problem is to re-
move the distress. If, in making a
proper rate adjustment 1t has been
deemed essential in the public interest
| to make low rates on particular COM
modities, such as agricultural prod
J ucts, and the effect has been to en-
/, barraSs particular carriers, the aim
should be to overcome the embarrass-
ment of those carriers Suppose, under
/ such circumstances, receipts of par
tlcular carriers have been reduced $50
100000 a year."