Evening star., 1930-12-01
WILLARD EXPLAINS
NEW RAIL PROGRAM
B. & o.. President Insists
Carriers Usefulness Is Not
MenaCed by Competition.
BY LEMUEL F. PARTON.


NEW YORK, December 1.-Daniel
Willard, president of the Baltimore &
Ohio Railroad, does not echo the sug-
gestion of alarm over the state of the
railroads, aroused in some quarters over
the announcement of the new legis-
lative program of the Association of
Railway Executives. Mr.. Willard did,
however, in an interview granted this
correspondent, touch on the importance
of restrictive legislation" in evening
the burdens between the railroads and
their competitors.
The attitude of Mr.. Willard and other
leaders of the industry indicated that
sweeping legislative adjustments had
absorbed railroad leadership for several
years, in the face of compelling eco
nomic changes, to which adaptations
must be made If the roads are to func-
ton at their highest efficiency.
Association Program.
The program of the association, to be
embodied in six congressional measures.
takes into consideration the increasing
competition of automobiles, water car
riers and pipe lines and means to
clear the way for such consolidation
measures as may be necessary for basic
economic readjuStments. Mr.. Willard
and the others carefully stressed the
constructive designs of the roads, in
sisting that their basic usefulness had
not been in the least impaired by COM
peting transportation, providing the
legal fundamentals were set right.
Mr. willard had no magical formula
to offer for bettering conditions in the
railroad industry, and frankly accepted
new burdens and complexities as
challenge which the railroads must
meet by efficiency and businesSlike
methods. Asked about automobile
competition, Mr.. Willard made it clear
that enlightened railroad management
held to no obstructive policies with re-
gard to the continued development OF
automobile transportation, and that its
growth would be commensurate with
the service rendered-with the railroads
continuing to function effectively in
their field.
Cause of Objection.
"I haven't heard any particular COM
plant from railroad interests about au-
tomobile competition" he said. I'VE
in the country doubtless will increase
with the building of more roads, and
we are not opposing the construction of
these roads. We do not object to more
and better roads.
1--WE do object, however, when an in
dividual or corporation becomes COM
mon carrier in competition with the
railroads without having to assume the
burdens imposed upon other common
carriers. AS much as IL cents of every
dollar earned by the railroads goes for
the maintenance of permanent way and
structures, and, in addition, probably
upward of one-half of the entire in
vestment in steam railroads, roundly
25 or 20 billion dollars, was used for
the purpose of providing the roadway
and structures upon which the trains
operate The railroads do not believe
that they are being treated fairly when
their competitors, among common car
riers, are furnished what is largely
equivalent to the free use of the i'm
proved highways.
In this connection, it should be kept
in mind that the railroads pay over
$400 10000 a year in taxes, and a
large portion of this amount is used
for the development and improvement
of highways over which some Of their
competitors are permitted to operate
practically without cost. But If the eco
nomic demands Of the country require
increasing use of automobile trucks they
will require increasing use of the rail-
roads! We are not in the least de-
spondent."
Capacity of Railroads.
Questioned as to the ability of the
roads to meet increasing demands with
their present equipment and organ1za-
ton, Mr.. Willard said:
without doubt the railroads as a
whole could handle 80 or 40 per cent
more business than they are now get
ting There are economies to be
achieved through consolidation, but
time will be required to bring such
economies about. In other ways there
is always an opportunity for econo-
mics. In the past some of these econ
omies have failed because of restrict
ing legislation. We hope for improve
ments IN this regard in the future. The
railroad industry intends to go forward
by providing better service-through
technical improvements or through in
creased economy and efficiency in or
ganization and management"
In reply to an inquiry about wage
policies, Mr.. Willard said:
Naturally, no one wants to reduce
wages. The railroads conform to en-
lightened public policy in this regard
and. of course, they want to keep their
organizations intact and functioning
on the highest possible level of ef-
ficiency. Our purpose is to keep rates
as low and wages as high as the busi-
NOES will i1StifV' -