Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-02
Nation Expresses Interest
In Prosperity of Railroads

Announced desire Of Eastern rail-
roads for increased rates, as a means
OF improving their credit position, is
considered sympathetically by the coun-
try, which voices belief that the pros
perity Of these lines is indispensable
to the well-being of other forms Of
activity. The chief questions raised
are as to the effect Of higher rates on
business, industry and agriculture, and
as to playing into the hands of other
forms Of transportation.
the opinion of the New Orleans Times
Picayune, will be in their line Of
duty and should pass some part Of
the responsibility that now burdens
them over to the Interstate Commerce
Commission" The Cincinnati Times
Star thinks 'the railroads have a
stronger argument for increasing costs
than any other American industry"
and adds that Since their earnings
are restricted by Government regula-
ton, they cannot lay up reserves in
fat years to tide them over the lean"
The Chattanooga Times recognizes
that "as the situation is shaping up, 1t
would seem that many of the roads,
in order to continue their existence,
must have either more business or bet
ter pay for what they do, and there is
no place fer them to get either except
from the public"
1.-THE fact that the railroads must
turn to regulating body to ask for q
safe margin of profit" says the Cleve-
land News. where the dealer in most
other commodities merely marks up
his goods to meet his costs and over
head is a reminder that laws adopted
in the sunny days of the railroads still
restrict their business as probably no
other form Of industry"
The Flint Daily Journal points out
that truck and bus lines aside from
license and gasoline taxes are practi-
cally free from regulation" and COM
ments on the present situation: Under
present arrangements the railroads have
their rates fixed by the Interstate Com
merce Commission in the interest OF
the public The wage scale is fixed
through union agreements. The rail-
roads, in addition, are subject to the
usual property, corporation and income
taxes paid by other business enterprises.
Furthermore, the Government has just
shown q willingness to eliminate the
'recapture' of excess earnings, which
prevented the railroads from earning
more than a stated amount on their in
vestment"
Railroad transportation Is admit
tedly essential to the public welfare, y
AYERS the San Jose Mercury Herald
with the query, els 1t in the public in
terest to weaken the ability of the rail-
roads to function efficiently and eco
nomically because of failure to permit
the roads to continue to compete on a
fair basis with the other agencies OF
transportation that are now unregu-
lated?" The Texarkana Gazette gives
figures to show that "the automobile
and the bus are proving deadly COM
petitors," and the Louisville Courier
Journal concludes: 1.-THE roads demand
that shippers produce revenue freight
or pay higher rates. Business would be
glad to produce the freight If it could
Seemingly some adjustment Is neces-
sary."
1.-The whole Nation" in the judgment
Of the Charleston Is. c. Evening Post
has a tremendous stake in the ques-
ton, not only because of the impor-
lance of railroad carriage to the gen.
eral business Of the country, but also
because Of the wide distribution of rail-
road securities among banks, trust COM
panies, life insurance companies and
other repositories of the Nations saw
ings. A financially sound transporta-
ton system Is vital to American pros
perity." The Indianapolis Star finds
the plea reasonable, and holds that at
interests the people, who both own the