The Bismarck tribune., 1931-07-23
ASSERTS RAILROADS
Being HANDICAPPED
BY RULE OF |. G. G.
Federal Reserve Banker Seeks
Freedom of Lines From
'Straight-Jacket'

Sioux Falls, S. D., July 23.-(P)-
Removal of the "straightjacket of
rigid governmental regulation" was
urged here Thursday by Curtis l..
Mosher, assistant ninth district fed
eral reserve agent, as a step toward
solving the railroads problem of re-
duced earnings.
Speaking at the midsummer meet
ing Of the Northwest Shippers Ad-
visory board, the Minneapolis federal
reserve banker commended The
Northwest's rail transportation sys-
tenn for its efficiency and said the
"burdensome regulatory powers" Of
the Interstate Commerce and state
commissions hinder railroads in So
luton of their. troubles.
Shippers and railroad men were
told that decreased carloadings were
caused as much by new and unfore-
seen lines of competition" as by ef-
fects of the depression.
Undoubtedly the time has come"
Mosher said, when we should stop to
consider whether it is any longer
necessary to subject this great trans
portation machine to the straight
jacket Of rigid governmental regula-
ton, which to large extent robs it
of the natural freedom which busi-
ness should have to solve its own
problems with its own brains and
! through its own organization.
Railroads Not Alone
II am no defender Of rebates, dis
examinations and practices of the past
which brought on the wave of state
and national railroad regulation. l
might remind you. however, that dur
ing that era which lies within my
own experience, the business morality
and business practices of many other
lines of bushes which escaped gov
ernment castigation were exactly the
same as those of the railroads and In
some cases worse.
"It is fair to ask today what neces-
sity there is for the maintenance of
a tremendous, extensive and costly
bureaucracy to control an industry
which has confessed and expiated its
past sins and which has come to the
same vision of modern business NOR
ality which has been adopted by all
ether lines of business. Even though
the burdensome regulatory powers
over transportation of the Interstate
Commerce Commission and various
state railway commissions were en-
tirely abolished, there would still be
useful functions for boards to per-
form.
"They might be made enormously
useful if they would turn from pure
regulation and devote themselves to
the study Of the correlation and prop
er adjustment that should be made
between the rail carriers, which are
and always will be the backbone of
transportation in this country, and
the new forms of competitive trans
portation which have sprung up"
Sees Better Times
Hope for improved conditions in
business and agricultural lines was
seen by Mosher in the prospect OF re-
duced production Of low-priced COM
modities. With exception of "artifi-
i cially controlled commodities" q
shortage in basic foodstuffs Is In
prospect by the spring of another
year and should result in better
prices, he predicted.
The federal reserve banker assert
ed that from the standpoint Of finan-
cial resources, business organization.
transportation and command Of raw
material, the nation Is much better
able to meet the present depression
than it was those of earlier periods.
Shippers were told that North and
South Dakota, Minnesota and Mon
tana have been afforded perfect
transportation service" during the en-
tire eight years of the advisory
boards existence. He added that even
during the last two critical years re-
quirements Of shippers have been so
well that the board has not received
a single complaint Of any character.
South Dakota's game and fish COM