Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-29
BY G. GOULD LINCOLN.

BY q. GOULD LINCOLN.
The American railroads, second great
est industry in the country and the
most regulated" Of all industries, are
seeking relief today from a constantly
lowering return on their capital in
vestment.
Executives Of the Eastern railroads
appealed to the Interstate Commerce
Commission to begin an inquiry into
what ails the railroads financially.
The request has just been denied. The
commissioners believed that the roads
themselves knew better than any one
their needs and what steps should or
could be taken to relieve the situation.
And so the Eastern railroad executives
are considering a request that the COM
mission grant an increase in rates ito
a level which will restore the credit
and the service of the carriers"
At the same time the Association OF
Railway Executives. representing the
roads of all parts of the country, have
tackled the problem of relief from an
other angle. They have filed brief
with the Interstate Commerce Com
mission urging that the railroads be
allowed to engage in motor truck and
motor bus business on-all-fourS with
the motor bus and motor truck COM
panies. They have also recommended
Federal regulation similar to that now
imposed on the railroads be extended
to cover the motor bus and motor
truck companies. Obviously Congress
will have to amend the antitrust laws
in order to permit the railroads fully
to participate in highway transporta-
ton and will be called upon to put
through laws for the regulation Of the
non-railroad owned bus and motor
truck engaged in interstate commerce.
A Federal bus regulation bill failed to
pass the Senate in the last session of
Congress after 1t had been put through
the House.
Face StifY Competition.
The railroads are in earnest in their
effort to find relief Their problem
has two distinct phases, one perhaps
temporary in character and due to the
present business depression and the
other having to do with the compe-
tition which the roads now meet, a
constantly growing competition.
This competition comes to the rail-
roads from the motor bus, the motor
truck, the pipe line carrying oil and
gas, the inland water transportation,
including the Great Lakes transporta-
ton, the Panama Canal and the ever
increasing aircraft. So far as pasSen-
ger traffic is concerned, however. the
greatest whittier away of the railroad
carrying business has been the privately
owned and operated automobile. But
the railroads must rely for their great
est source OF revenue upon freight
4pAzN 30 Az l. I,
motor trucks, water transportation and
the pipe lines are cutting in more and
more.
The railroads maintain that the
fundamental basis of ? national system
Of transportation for this country lies
in an arterial system of railways, CO.
ordinated with highway, water and air
transportation. They say it is impos-
Sible for the country to meet its trans
portation problems without the rail-
ways. and precautions must be taken
to keep the railroads alive.
Scorn Pessimism.
At lot of the talk about the railroad
situation today. in the opinion of rail-
road men themselves, is rank pessimism
They have faith in the future of the
railroads. But they do not deny that the
problems confronting the roads today
are extremely serious. They saw the
railroads go through other periods of
depression, Of receiverships and failure,
as for example, back in the COS, and
they believe they will emerge from the
present depression in good shape even
tually. If they do not, Government
ownership and operation is the only
alternative. No one will operate rail-
roads at loss perpetually unless it be
the Government
In the first three months Of the pres
ent year. railroads of the United States
made loss in net operating income of
500, 444.4l5 as compared with the same
three months in 1880.
Reports from railroads so far at hand
show that for the month of April, the
fourth month. there will be a very con-
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