The midland journal. (Rising Sun, Md.) 1885-1947, 1931-06-19
BUS COMPETITION
HITS RAILROADS
Bankers Association President
Asks If Unfair Aid Is Given
Motorized Transport
For Rail Mergers.

For Rail Mergers.
NEW YORK.-Fair treatment for the
~ railroads In respect to highway
motor competition was called for by
Rome @. Stephenson, President Amer.
lean Bankers Association, in recent
address here. He also strongly en-
dorsed Sound economic railway con-
solidation" and praised President Hoo
yer for his initiative in this respect.
II am very strongly of the opinion
that one Of the measures which would
help materially to put back business
where it ought to be is the Eastern
four-system plan of railroad CONSOLE
dalton as announced recently follow
ing negotiations instituted by Presi-
dent Hoover" said Mr.. Stephenson.
"Its adoption by the Interstate Conn
MERGE Commission would tend to stabi.
lie the transportation industry, IA
cilitate operation and exert a favorable
influence on business in general.
ut Is fact well known to business
leaders that our railroads are now fac
ing q crisis. Not only do they need
protective laws to meet competitive
situations arising from increased use
Of our highways and waterways by
other carriers, but they need uniflca-
ton such as the proposed four-system
plan provides. Our President has
acted wisely in assuming leadership
in this respect and his move deserves
the support Of every clear-thinking
citizen"
Mr.. Stephenson declared that the
railroads have served this country $50
superlatively well that we are prone in
our public affairs to overlook our de-
pendence upon them and our obliga-
tions to them. The past, present and
future progress of the United States IL
inseparably bound up with their well
fare. In neglecting just consideration
for them we are even more neglectful
Of the public's best economic interests.
A Question of Public Interest I
I'VE are confronted with the Ques.
ton as to how much more the public
economic interest will stand an inva-
sion of the welfare Of the railroads by
forces and difficulties not Of their own
creating and not within the scope Of
their own unaided powers to combat"
said Mr.. Stephenson. 81 refer especially
to new competitions that are undermine
ing the hard-earned position of the rail.
~ mil ID 49,
economic forces but also through the
aid Of government policies which, posi-
lively or negatively, tend to give these
competitors undue advantages over the
railroads.
1T goes without saying that the rail-
roads have no right, nor claim any, 80
far as I have been able to discern. to
complain at legitimate competition in
the field Of transportation, for the pub.
lie is entitled to the best possible trans
portation at the lowest practical cost.
But equally does it go without saying
that this cannot be fairly brought about
by using, or by failing to use, the tax
ing powers Of government to enable
competitive methods of transportation
to do things they could not otherwise
do as unaided private enterprises, par
ticularly when such action impairs the
invested rights held in good faith by
great masses Of our people In estab.
lished enterprises that are serving the
public we'll"
Mr.. Stephenson said it was not his
purpose to argue against such com.
petitive transportation as the highway
passenger notorious and motor truck
as such, when conducted under proper
conditions and in keeping with public
welfare and benefit. He declared, how.
ever, there is need for serious consid.
Grafton whether such competition is
being developed under conditions that
are unfair to the railroads, because
either the outright or obscure aid OF
government policy is the deciding eco.
nomic factor in that competition.
Would Investigate Bus Traffic
Railroad rights of way. he declared,
represent tremendous capital invest
ments, on which the railroads have
also heavy current costs to meet.
"They pay every day q million dollars
In taxes and most of this Is on their
rights Of way" he said. "Also they
spend daily over two million dollars adj
ditional for the proper maintenance OF
way" He asserted that the motor.
buses have not had to pay for their
rights Of way in any sense that the rail-
roads maid for ri nirc
"They have simply taken possession
OF public highways built by public
funds, both state and national" he con-
tinued, land they have extensively
made those highways vastly less com.
Portable, less safe and less serviceable
for private motorists and others who
are contributing chiefly to their crea-
ton and maintenance"
Mr.. Stephenson declared that all
these matters should be thoroughly in.
quired into by competent public
bodies, both state and national, with