New Britain herald., 1930-12-05

where the service rendered by the competitors is subsidized one. such unfair handicaps should be removed.
 Tt is therefore suggested;
 That the present lack of ade- qUate regulation of motor bus and truck operation should be remedied by the enactment of appropriate legislation, with no discriminatory provision against the railroads op- erating in the same field.
 That the restrictions on the rail- roads from competing with the Panama Canal by refusal to grant them Fourth Section relief, be re- moved.
 That the Government of the United States discontinue competing with the railroads or any other form Of transportation either direct ly or by subsidy.
 That pipe line common carriers be subjected 10 the same rcstric- tions in respect to the transporta- ton Of commodities in which they are interested directly or indirectly, as the railroads now arc. "The foregoing refers to loss of traffic through competitive reasons. The traffic that has remained with the railroads has produced the fol- lowing results
 Average Revenue Declines
 "The average revenue received for handling a ton O. freight one mile has declined I5.6 per cent from 1921 10 1929. As 8 result of ;his decline in average receipts per ion mile, tho total reduction in freight revenue in the nine years amounts 10 something over five hil- lon seven hundred million dollars. While tho average receipts per ton mile represent changes in conmo- di'iee. distances hauled and other items and are thcr, fore not a pre- else guide 10 rate reductions, they arc conclusive as showing the trend.
 "Durng lh.s same period the economy and efficiency of the rail- roads operations are indicated by ihe fact that operating expenses per traffic unit (which IS a combin- atlou Of ion miles and passenger miles) have decreased 21.2 per cent.
 "This has been accomplished largely through th" expenditures for capital improvements in the nine year period of over six billion, o!eht hundred million dollars, GOV crng improved locomotives and equipment. physical structure, im- proved nethods-all done in con- fornitv with the program Of in, railroads entered into in 1923, which, SIS announced at that time, was based on an abiding faith in the fairness Of the American peo- pie and reliance on the continuation O. the policy stated in tho rranSpor- rauon act of 1920. as a measure of reasonable protection 10 investment in railroad propory'
 Tit is significant that during this sarao period the decline in average receipts por ion milo has shown an aD.uuul7uve amount closely ap- proXimatng what has been spent for capital cApcuduurcs,-r!y4 bil-1 lion, seven hundred million dollars.
 Notwithstanding this economy and efficiency rates have never pro- duced the return on property invest mont contemplated in the transpor- tation act viz. 5aa per cent for the railroads as a whole. In 1921 the rate ot return was 2,sT per cent in 1922 5.4S per cent and for the eight months ending Aug. &Ist. 1880, &.59 per cent.
 Reductions ill rates beginning in 1H4l have continued up 10 the pres cnt time; first by action of the iu- tnrstato commerce commission, sec end, voluntary reductions by carriers 10 meet competition including un- ] gulatod or subsidized transporta- ton, and third. through voluntary reductions by carriers for deyelop- mont of industrial enterprise and communities.
 Railroads Recommendations