New Britain herald., 1930-12-04
NATION STILL GAN
 SUPPORT RAILWAYS
Interstate Commerce COnInis- sion Holds Out Hope to Carriers

Washington, Dec. LP) - "The country still needs it's railways and can support them." the interstate commerce commission observed to- day as a cheering word in an an- nual report chiefly illustrated by statistics of declining business for carriers last year.
 By July. tho number of railroad workers was 1,531,711, which was 2l3.1S5 or 12.2 per cent less than those so employed the correspond mG month of 1929.
 Operating records of the Gloss One lines those which incorporate more than 90 per cent of the country s total rail mileage, Showed a reduc- ton of freight train miles, freight car miles, and gross and net ton miles," These arc the best known forms of registering freight busi- ness. The entire showing was at tributed to the "heavy decline in gross and net earnings as result of the economic depression which began in 1929"
 If railway finances were suffer- ing only from the fact that a reccs- sion in business is being experienced as in other industries of this coun- try and of the world, it might be sufficient 10 point out that i'll judg- ing of railway income one should Tn fairness consider the good and bad years together" the commission continued.
 Financial Difficulty
 But a different and more threat ening financial difficulty confronts he railways. This is the effect of other forms Of transportation. With q plant developed to carry a great volume of pa ssenger business. the railways find themselves confronted with a steady lessening in the vol umc of passenger travel by rail and consequently in gross revenues from that source.
 The passenger revenue of 1929 was more than $414.000,Q00 less than that of 1920. It is true that the freight revenue was S49S,O00,- 0UO greater in 1929 than in 1920, but the prospect Of q continued eX- pansion in freight business to off, set the further loss in passenger business is darkened by the compe- tition of water lines, pipe lines, and trucks, and by changes that may check the growth in demand for ton mileage. such as economy in the use of coal. changes in the location Of industry, and the relatively slower growth of population.
 'However the country still needs its railways and can support them. With the traffic of 1929, the rail ways were as whole enjoying a comfortable degree of prosperity even though they did not reach the full return upon their property which we think would be reason Rblc. Fortunately for their finan- Cial position. their capitalization in recent years has not kept pace with their investment. and the relation of their net income, after interest charges and all taxes, to their cap- ital stock was never better in their history than it was in 1929.'
 Proposes Repeal
 The commission invited the at tention of congress to the statute provided for the re-Capture by the government Of excess earnings from railroads. and in a qualified way. proposed its repeal.
 We arc inclined 10 the opinion that these practical objections out weigh the theoretical advantages Of reCapture," the report said, and that the wiser course to pursue is 0 repeal the recapture provisions in their entirety, rather than to at tempt to improve them by amend ncnt."
 The commission confined mention Of railroad consolidation to a report of the last December announce ment of it's plan for putting all rail properties into 21 systems. No ac- tion has been taken.
 Among the recommendation to congress repeated from former years was one which would enable delegation of considerable portions Of the commission's work to subor- dinates under it's control. Methods can be arranged, il was suggested. hy which litigants can be assured Of full opportunity 10 reach the commission itself in justified cases.
 The most important new depart urc in legislation suggested was one contemplating inauguration of reg ulation over the freight forwarding business. This is the combination Of