Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-13

critical than ever in history. Not one
quarter, as in the 90s. but perhaps
nine-tenths of the railroad mileage
of the country will not even earn its
keep, as interest on bonds, unless there
Is speedy relief
For a generation the complaint of
the people against the railroads was
that their rates for service were ex-
cessive. Bit by bit, under the strictest
Federal regulation, these have been re-
vised, until now substantial harmony
prevails on railroad charges
1t will be said, perhaps, that fiat
percentage increase will rudely dis
turb all these commercial relation
ships painfully set up through many
years. This is in a measure true
Probably the entire rate structure will
have to be revamped to meet the new
competitive situation created by bus,
truck and waterways.
1t is no use to charge more than the
traffic will bear. That merely drives
some rates would quite certainly kill the
! business. To readjust such schedules
scientifically would be long, tedious
and immensely complicated.
| For example, the old rate schedules
distinctly favored the long haul as
against the short one. That was nat
ural in great country like the United
! States. But the new highway compe-
| tition, not broadly effective above. saw.
200 miles of carriage, strikes at the
root Of any such rule of rate making.
| Hereafter more revenue must be had
from the long-haul tonnage, which is
not likely to be affected by the high
ways. But is that true of the water
ways-say by way of Panama?
Freight classification also will all
have to be done over. Goods used to
. L. IL = Il
/ to cope with the truck. freight rates
must pay much more attention to sheer
| bulk.
Proposal Is Makeshift.
| 1t is ironical that this revolution
should have taken place almost coin
cidentally with the PRONUNCIATION in De-
cember of entirely new rate schedules
! for the West, the Southeast and trunk
| line territory after years of patient in
vestigation by the Interstate Commerce
| Commission. 1t looks. indeed, as If all
! this labor may have been in vain.
But this is no time to enter upon all
/ these intricacies of commercial rate
making. To recognize the relative
rights of competing goods or territories
would require months Of research. This
is an emergency. 1t permits no delay.
What is now proposed is only a
/
| carry which shall pro-
! tect labor on the job, the savings bank
/ accounts. the life insurance policies on
! the books and the need of day-to-day
/ service for the merchant and the
! farmer on the rails
| Nor is it novelty that the railroads
should turn thus to the Government
! for protection on their credit. Gov
ernmental regulation has laid UPON the
E Interstate Commerce Com
obligation to meet just such situations
Power and responsibility ever go hand
/ in hand. And since the act of 1920
there has been deliberately adopted the
public policy Of responsibility for such
revenues under honest and efficient
management as were requisite to pro-
vide good service. These moneys. thus
to be raised, cannot be wasted under
the existing system. Every penny of
the possible $500 100000, which may be
necessary to put the carriers on their
feet must be definitely accounted for
TO the last cent
So far, indeed. has Federal regulation
progressed that about the only powers
which now remain to arrangements
free OF interference at Washington, are
I the declaration of dividends and the
policy as respects upkeep of the prop
erty. AS to these. every fact must be
spread upon the record. Nothing can
be covered up. These moneys cannot
be dissipated as unearned dividends or
secretly distracted as bankers commits
Sions The situation is substantially
clarified by these facts
! This crisis, like each of its predeces-
sors. however. brings one bluntly back
to the same conclusion. Railroad serv-
ice is absolutely indispensable to every
community and to every citizen.
Necessity for Railroads.
Slipping along at so miles an hour
| on the New York Central, look upon
the Erie Canal frozen almost solid for
! months at a time! Where would the
! United States be if dependent upon
waterways only?
/ A thousand lotion trucks could carry
only a single trainload of coal What
I of our highways If such bulky products
could not be hauled by rail?
| Our population is heaping up in the
| great cities. Each of these cities lives
veritably from hand to mouth, never
more than a day or two ahead of star
vstion. What other agency than the
railroads could be depended upon TO
bring hundreds of miles milk and other
perishables which are required?
/ There can be no question then upon
/ this issue; that at any cost the car
riers must be kept alive. Whether Is
per cent increase will yield enough or
/ too much is for the Interstate Com
merce Commission to decide. But, thus
ascerta.ned, the grant must assuredly
be allowed.
( There is one feature of this situa-
/ ton which cannot be over-emphasized.
Relief. If it is to come at all, must not
be long deferred A delay for three
months might precipitate disaster, even
| upon the strongest trunk lines.
When reads like the New York Gen.
/ trail. Baltimore & Ohio and the I'LL
nois Central-among the best and most
efficiently operated in the country
have fallen so far behind even in earn
| ing interest upon their mortgage in
debtedness AS to invalidate their bonds
as legal investments for savings banks
under the law the seriousness of the
crisis may be appreciated.
! Inroads Upon Revenue.
! In many such cases the inroads upon
revenue thus far this fiscal year must
be supplemented for at least two months
of 1881. that they may conform to the
legal requirements of the States. For
most of these States do not permit saw
ings banks to buy bonds of railroads
which are not earning at least one and
e-half times the amount of their in
terest charges
The formal application of the rail-
roads for the freight rate increase /;
model of simplicity in statement. II
reads like State paper. 1t is best this
should be so. It sllffices that the emer.
gency shall be stated. that the justifica-
ton for the increase shall be made
plain.
The issue is SO clear and convincing
that many chambers of commerce anC
boards OF trade already have acquieSceC
in the plea. 1t appears that the train
mems brotherhoods are not to oppose
Is it not then to be hoped that the
authorities at Washington shall not
only grant the petition, but shall pro-