Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-14
GAIN IN RAILROAD
BUSINESS IS SEEN
Transportation Experts Ex-
pect Carriers Will Soon
Re over Losses.


The bulk Of transportation IA the
United States will continue to be ham
died by the railroads and the latter are
going to regain both their profits and
their prosperity. That, according to
transportation experts, Is as certain as
that the country itself will recover from
its depression. It has been customary in
some circles lately to speak in bated
whispers Of the rail carriers rs though
they had already passed on. Nothing
could be further from the truth, accord
ing to Government commerce regulators.
[ The railroads have seen their profits
curtailed, 1t Is true, but that cut has
been In direct proportion to the drop In
business volume Of the country as O
whole. They have not suffered so sew
erely IS scores cf other businesses, since
they are better and more economically
managed.
Equality Of Competition.
II Is true they are demanding equal
tty OF competition with other forms Of
cure Il. but II they. should not, the fact
remains that they are irreplaceable In
the life Of the Nation and that when
there Is more freight to haul the rail-
roads viii haul It. Also, they will gain
back any ground lost temporarily in
earnings. Bankers and transportation
men agree that investment in the secu-
rifles Of the rails Is Is sound today as
9 decade ago and that price levels re-
meet general conditions and not those
peculiar 70 the industry.
The steam roads are already prepar-
ing to garner full profits from traffc
volume increases. They want consoli-
dations, but they are not going to wait
for them II they are too long delayed.
They are gradually securing the same
results on their own account which
would accrue by reason Of consolida-
tons.
There Is general impression in
some quarters that the Interstate Com
nlerce Commission has made its console
dation plans, involving 10 domestic
systems, a. rigid as the laws Of the
Medes and Persians. Such Is not the
case. Their schedule Is tentative and
was never meant TO be anything else,
The idea that the commission as o
whole Is bitterly opposed to the acqui-
Etion Of interests In one road by an
other, until or unless the purchase
conforms to the plan, Is highly erro-
neCus. 50 Il the Idea that such moves
on the part Of the carriers come as o
surprise to the commission.
In nearly every case where one road
recently has been engaged In purchas-
ing . stock interest in another, the COM
mission has been fully advised Of every
move made and It's majority have either
&acitly or actively given tentative ap-
prevail. This has been true In purchase
Of New Haven and of Boston q Maine
stock by the Pennsylvania. It has been
true In the buying Of Reading by the
Baltimore q Ohio and In the purchase
OF the Chicago q Eastern Illinois by
the Van Sweringens.
Stock Purchasing.
The roads which win be the back
bone of each consolidated system all
over the country are making now their
own consultations by stock purchases
instead Of waiting for the actual
mergers which can come later after
the intervenors have had their hearings.
Two or more roads can be operated as
q consolidated system even II 1t Is not
50 named, provided they have the same
ofacers and the same majority stock