Evening star., 1931-06-01

For example. they say that the Govern
ment is spending something like $125,-
100000 year TO help build the high
ways which the motor bus and the
motor truck use. They point, too to
the large sums expended every year
on the development of the inland
waterways out of the revenues of the
Government. The roads insist that the
motor trucks and buses and the water
carriers do not pay taxes commensurate
with the facilities provided for them
by the Government, while the railroads
not only are heavily taxed, but also
are compelled to pay the entire amount
necessary for the construction and up
keep of their tracks and rights of way.
Their contention is that if the motor
bus and the motor truck are to use the
highways they must be made to pay
far greater share of the costs of con-
struction and upkeep than they now
pay. If the busses and trucks were
taxed to such an extent, however,
there Is considerable likelihood they
would be unable to continue in busi-
ness. Certainly their rates would have
to be higher, and naturally that Is an
end which the railroads in the main
desire, though not some of those now
operating buSSeS and trucks.
The railroads complain that they are
under real disadvantage, when con-
sidered with their competitors and with
other industries generally because their
earnings are limited by the operation
OF the regulatory body, the Interstate
commerce Commission, which fixes
rates Tor them. The transportation act
they say contemplates a return of SIS.
per cent on the investment of the rail-
roads. Because of regulation they see
no prospect OF their ever being able to
make more than such a return, al
though their competitors may make so
per cent, If they are able. On the other
nano, critics OF the roads complain be-
cause. they say the Government has
undertaken through the Interstate Com
merce Commission, to see that these
common carriers are permitted to earn
o9s per cent. The roads point out that
TAKEN as whole, they we're able to
more nearly approximate 5.75 per cent
earnings in the first eight months of
1929, the high peak. than at any other
time. Then the rate of return was s az
per cent. This rate has dropped this
year to 2.07 per cent.
Oppose Increase in Rates.
The owners and manufacturers NJ
trucks and buses are violently opposed
to the demand Of the railroads that
their taxes be increased in order to
equalize competition. Some of the rail-
road men take the position that in the
end the highways will be so cluttered
up with trucks and buses that the
public will enforce a demand that they
be eliminated. The suggestion has been
made that specially built highways for
the use OF trucks and buses exclusive
~ be constructed. 1t is held, however,
that If the buses and trucks were
called upon to pay for the construction
and upkeep of such highways they
could not possibly meet the costs and
live. The railroad men insist that if
such Is the case, it is obvious that the
bus and truck are not now paying their
fair share of the highway cost.
The railroads in these days of de-
| preston have been forced into greater
and greater economies, some of which
may well be retained and thereby be-
come real aid to the roads when busi-
ness comes back. While the reductions
In business and in net revenue of the
railroads have been very great since
1929, 1t Is not the situation to date
which is worrying the railroad men SO
much as what the future may have in
store. The roads have stood the strain
far better than they have in other
periods of depression, and the number
OF receiverships for the railroads today
Is markedly low. They have hung on
and on under the existing depression,
hoping that business would snap out
Of 1t.
Shippers Make Special Demands.
Government ownership and operation
OF the railroads have their advocates
throughout the country and on Capitol
Hill. But there Is no general dispose
ton to turn to Government ownership
and operation as a solution of the rail-
road problem. 1t may come some day,
but if it does it will be after it has been
demonstrated that the Government
regulated, privately owned and operated
roads cannot continue to earn in COM
petition with other forms of transporta-
tien.
There is one danger to the railroads
which comes from a different source
than their direct competitors. That Is
the demand of shippers of huge
amounts Of commodities for special
service and for lowered rates. These
shippers have their ways of shaking
down the railroads which in effect
amount to the rebating in the old DAYS
Of ratlroading before Government reg
ulation on its present scale. The roads
themselves would like to combat these
moves on the part of shippers, but II
they do 1t may mean loss Of business
which the roads fear.