Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04
PIPE LINES REDUCE |
RAILROAD PROFITS
Reports Show Carriers Havd
Lost Revenue Through New
Transportation Method.
By LEMUEL r. PARTON.

Special Dispatch to The Star.
NEW YORK. December 4.--Back Of
the uneasiness Of railroad management
and its drive for congressional relief
turks new spectsr of chronological
unemployment threatening to add q
big string Of locomotives and freight
cars to the ranks Of the unemployed.
The engineers are fixing to add to
their pipeline repertoire systems which
will transport, not oil and gasoline,
but cement. pulyerized coal and
other commodities. Experimentally,
cement already has been moved
swiftly and satisfactorily by pres
sure in . pipe line. It Is known
that . leading Eastern pipe line Is
making these experiments Maybe this
DOGGY Is just . shadow on the wall, 80
far as long ,hauls are concerned, but
II Is typical OF the mounting and null
tiplying troubles which are prompting
the present 9 O s 10 Washington.
Pipe Lines.
Pipe lines are featured heavily In
the congressional plea OF the railroads.
This Is understandable. as the following
roads have taken large cuts In earn
lngs due to this competition: Rock
Island, st. Louis-San francisco. Mis-
souri-Kansas-Te Texas, Atchison, Missouri
Pacific, International Great Northern,
Kansas City Southern, New Orleans,
iexas q Mexico Chicago, Burlington
g quincy; Texas q Pacific, st. Louis
southwestern, Southern Pacific and
Colorado IL Southern.
The estimated possible loss per share
OF common stock of these roads, due 10
the pipe lines, for the first eight months
OF this year ranges from 40 cents on
the Colorado & Southern to 1895 on the
ROCK Island. Last years earnings per
snare OF the Colorado a. Southern and
tne ROCK Island were S9.24 and &14.O4
respectively. Hence It Is apparent that.
TO say nothing Of the truck competi-
ton, there Is possible Q considerable
shrtnkage Of railroad dividends due TO
pipe lines alone.
Under the commodities clause Of the
interstate commerce act, the railroads
cannot transport any article in the
manufacture or sale Of which they are
concerned. directly or indirectly, with
the exception Of timber. The roads
would nave Congress extend this restric-
ton 70 the pipe lines. This would put
out OF business the elaborate network Of
pipe lines in which the oil industry has
invested about $500, O0O, 900. IL Is safe
assumption that a distinctly audible
cry OF appropriation" will be raised bv
the OIL interests. There Is q prospect Of
heavy frtng along the economic front.
CONSTRUCTIVE Phases.
Railroad presidents and other suokes-
men Tor theatndustTy have eunpiiasiged
the constructive" phases Of railroad
policy, insisting that all adjustments
must be in furtherance Of econornic
needs. Some OF the proposed conRrps.
SlonaI measures are thus based on the
forward looking policy phrased by the
iate =. z: Mccormick, vice president Of
the Southern Pacific. IS follows:
you can't lick 'em, join EN-" The
roads seek amendments Of the Panama
Canal act to allow them to oterate
steamship lines on the Great Lakes
ana on the Pacific and Atlantic Coasts:
buses.
On the other hand, they ask for a
frightened check rein on their COM
petitors-license fees for motor vehicles
imposing on them fair share" OF
gne cost OF building and maintaining
highways; the operation Of Steamanio
lines under certificates OF CONVENIENCE
and necessity, and the Imposition Of
lines.
The present dificulties Of the roads
are the result not only Of economic
changes and Developments but Of the
Juncture OF these eliminating forces
WIN the business depression, which has
prevented the roads from maxine a,ar,-
tationS otherwise possible. For the most
part the roads are heavily loaded with
funded debts. New security issues no
longer solve the problem Of expansion
ana bettermentS. While the ''publie
De damned era has passed and the
roads are now under more enliRhtened
management than ever before, their
capital structure and resources are such
'nSS Ineir aaapta6llity e vastly lessened.