The Lexington advertiser., 1931-12-10
I,,dce Burch Relates
railroads Problems
TO Local ROtarians

leo Charles N. Burch, general
..1.a.. yu of the Memphis division of the
s.:. so.s Central Railroad was an honor
I'M If the Lexington Rotary Club and
s,s-ossed the gathering on the problems
= = tbe nations railroads and transporta-
tion systems.
r.o occasion of Judge Burch's visit
wade in response to a letter by
ass;dent j. Reggie Williams of the
,a.aI organization addressed to L. A.
nsrrs president of the Illinois Cen
-, system relative to train schedules
= +his territory that vitally effects the
s.a;l express and other shipments in
10 trade areas served from Lexington,
.ss county seat and center of distribu-
.;on for freight and other commodities !
T, referring to the situation that has
offected all transportation lines, Judge
purch stated that the depression had af-
focted everything from governments to
Individuals and that the railroads had
likewise suffered in traffic and pas
sonper business decreasing. He also
stated that the private automobiles,
trucks and buses had taken large share
of the business but the greatest blow
and unfairest competition was that of
the Inland Waterways Corporation, a
twenty-million dollar government barge
line from St. Louis to New Orleans that
parallels the Illinois Central through
Mississippi Valley, the heart of the bust
ness district of their lines. At Memphis
alone stated the speaker, the Illinois
Central has lost over a million and one
half in business through such competi-
tion, together with their business with
unregulated truck lines that centered
shipments for government barge lines at
river points. He stated further that
the railroads only asked that these COM
pettors be regulated with equal basis
as the railroads in order that business
could be competed for on fairer terms
He stated that the barge line could make
their own rates at will owing to the
articles of approval by governmental
making that allowed them to fix
charge at 80 percent of common carriers
which left no alternative for the rail-
roads. The railroads were regulated by
national state and other agencies, and
that wages were determined by labor
boards. These are factors that only
the railroads have to contend with while
in private operations no such restrict
ions were applied. In referring to the
U. S. governments barge lines that their
profits only showed $16O,0O0 which was
not even percent on money involved,
a matter no private or puplic corpora
tion could survive, and that the deficit
was placed on the people in the nature
of taxes.
Judge Burch stated that the past year
the Illinois Central System had paid in
taxes to Mississippi alone the sum of
$2,917,7 7,7479s and that in Holmes county
the sum of Sal $500 was paid for tax
alton. He asked to recall any other tax
paying agency that contributed as much
to the state and county, and if such did
not warrant more protection against un-
regulated competition. In conclusion he
stated that he had the faith of America
in business resumption and that it
as when the slump came and that all
depressions lifted.
He cited the fact that the Illinois Cen
trail had served this territory of the Mis-
sissippi Valley for 70 years. That for
the past few years it had not earned
enough to pay operations, taxes and in
terest on bonds but with a program of
economy and other issues that every
thing would come out alright and that
the public would be served faithfully
and as they demanded
Aside from full attendance of men,
bers the following were present at Fri
days luncheon DR. J. ]. Kazar, Guy P.
Sharpe, George M. Grow, Tchula; G. H.
McMorrough, G. w. Stigler, S. J. Fisher,
Tom Shepherd, Lexington; Ivan ]. Chap
pell, Durant, and J. j. Tucker, Pickens.