Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-29
RAILROADS ASKING
REGULATORY LAWS
Carriers Complain That Com
petitorS Have Advantage
in Matter of Taxes.
BY J. C. ROYLE.

The railroads of the country are not
in desperate case, and the Interstate
Commerce Commission does not intend
that they shall be. That is why the
commission looks with favorable eye
on the demands of the railroads that
they be allowed to compete on even
terms with new and other forms of
transportation
The attitude has been made evident
both by the unofficial utterances of in
dividual commissioners and by their
official announcements. The commits
sion has gone on record as favor1ng
legislation for the regulation of buses,
trucks, airplanes and pipe lines.
Ask Fair Terms.
Bankers and far-sighted brokers lay
decided emphasis on these facts for the
benefit of the holders of railroad securt-
ties. They reiterate that all the rail-
roads ask or need is a fair chance to
compete on equal terms, adding that
while the railroads had been affected
unfavorably by the business depression
which has existed since the latter part
of 1929, they will be equally favorably
affected with other industries upon the
return of prosperity.
The financierS are warning their GUS
toners against sacrificing their railroad
security holdings at depression prices
and point out that during the bad times
of 10 years ago United States Govern
ment bonds, the highest type of security
known, dropped is points under par or
more. There was nothing basically
wrong with the United States then and
| the bankers assert there is nothing ba-
sically wrong with the railroad business
now, provided 1t is effectively con-
Quoted.
The far-reaching extent of a sacrifice
of railroad securities can be obtained
from the statement of Milton w. Har-
rison, president of the Security Hold
ers' Association of New York, who said
today that there were a million indi-
vidual and institutional holders of rail-
road bonds and other obligations and
about 100000 holders of railroad stock,
making a total of 100000 investors,
whose holdings aggregate, approximately
| $26 900 900 900.
The danger of failure to present equal
opportunities to the railroads to these
| investors has been made evident by
Commissioner Claude r. Porter.
The request of the railroads, however,
will not be without severe opposition.
Individuals and industries, rivals of the
railroads in the transportation field,
/ have organized to oppose any plan to
regulate them. The petroleum industry
is opposing the suggestion that Congress
originate legislation to compel the oil
companies to divest themselves of their
| investments in pipe lines. The oil men
| say that this will raise the cost of pc
| troleum products to the consumer and
would not benefit the railroads. The
railroads answer that the pipe line car
rierS in all fairness should be subjected
to all restrictions on transportation of
| commodities in which they are inter-
ested directly or indirectly, as the rail-
roads now are. This refers partially to
the regulations preventing railroads
from owning and operating coal prop
critics. Equally severe opposition will be
| presented by the operators of motor
1 trucks and buses. They assert that their
| situation is not analogous to that of the
railroad, in that the majority of the
lines operated are interstate lines.
Highway Taxes.
] The railroads point out that while
! they are compelled to expend hundreds
| of millions of dollars a year to MAIN
tain their own rights of way, they
are taxed heavily to maintain the high
ways used by their motor competitors.
The railroads are taxed nearly $500 OOO,-
600 year, and no small portion of this
sum will be spent the coming year for
building highways of this country, call
ing for the expenditure of So, ZOO, 600, 900,
which will open routes to buses and
| trucks.
The coastal shipping men are bitterly
| opposed to any legislation to bring coast
line carriers under control of the Inter-
state Commerce Commission or that
would permit the railroad lines to oper-
ate ships through the Panama Canal,
the Great Lakes and other waterways.
| (Copyright. 193l.)