Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-18

more. Railroad orders for steel, for
coal, for ties, for ballast for lumber
for oil and the hundreds Of other things
needed for operation keep the wheels of
many industries turning. A reliable es-
innate Of railroad expenditures for i'm
provemsntS during the last year is
$1,000, 100000, and that meant work
and wages for scores of thousands of
persons who never worked directly for
a railroad in their lives.
Then, too, of course, there is the
direct interest of the whole business
community, including the farmers of
the Nation, who ship their products far
and wide, in transportation service that
satisfactorily links every part of the
Nation with every other part.
In addition to all of which, the great
general public still relies very largely
on the railroads for passenger trans
portation, even though buses and pri-
vately owned automobiles daily carry
scores of thousands from city to city,
while the possibilities for aviation in
this service are not yet known.
Railroads Biggest Factors.
The railroads, then, are one Of the
biggest facts and factors in our national
existence. They are the arteries and
veins OF the Nation through which the
life blood of commerce is borne. The
head of one of the great railroads of
the country has compiled some figures
that show not only the magnitude of
railroading, but its relation to every
one Of us in some way or other. Here
in the United States we have a main
track mileage equivalent to five times
the entire distance around the world
representing an investment variously
estimated at from $4,000, 100000 to
$4,000, 100000. The freight service
each year, says Mr.. Daniel Willard. moves
the equivalent of 300 tons of freight
one mile for each man, woman and
child in our population. And the pas
Senger service maintained by our rail-
roads is the equivalent Of transporting
each one Of our present population $50
miles 4 year. Railroads pay taxes Of
100000 900 a year. Their payroll is
nearly $3,000,000,000 year. They pay
mortgage interest of $600,000,000 year.
This operation demands assured rev.
enues. The competition in pipe lines
connecting gas and oil fields with the
East is seriously cutting into rail reve-
nues derived from the coal industry
Truck competition is also affecting rail
trafhc, as will water transportation in
its assured development
Is there any one of us who can truth
fully, say, IT haven't any concern with
railroad problems?
The answer Is, of course, that moth
ing is of more direct and serious con-
Germ to every one Of us than the main
tenance of a first-claSS system Of trans
portation over steel rails. Nothing has
done more to unite our 48 States, to
weld us into one great, homogeneous,
compact Nation, extending from ocean
to ocean, than the case of transporta-
ton afforded by our great railway syS-
TEN.
i Consolidation Question.
It was these considerations, as we'll as
others, that undoubtedly influenced
President Hoover to suggest to the East
ern railroad further conference for the
purpose Of bringing about consolida-
ton, after negotiations virtually had
been abandoned early last December.
Ten years ago Congress enacted legis-
lation designed to bring about railroad
consolidation-for the public benefit
and in the interests also Of the rail-
roads. The legislation, for various rea-
sons, was not effective. 1t did not
bring about the unihcation of railroad
operation contemplated. Congress in
tended that all the railroads in the
country should be welded into a limited
number of great competitive systems,
able to render the highest type of
transportation service economically, and
with such financial stability as to in
sure adequate improvement and expan-
sion as well as protection for investors.
I had the duty, as member of the
Interstate Commerce Committee of the
Senate, to report to the Senate nearly
two years ago bill designed to speed
up railroad consolidation. Various fac
tors interviewed, and Congress is still
considering additional consolidation
legislation. Meantime, however, there
remains on our statute books the ex-
pressed opinion of Congress that the
| NokfaVo'c pa{ dc 6a CIV
ened and made more effective for pub
lie service by wise policy of con-
Solidation.
It was to this situation that Presi-
dent Hoover applied himself when it
became apparent some time ago that
substantial contribution toward bust
ness recovery could be made by a con-
solidation of Eastern railroads.
Work at Cross Purposes.
| For years the heads of the great ex-
isting railroads of the eastern part of
the country had been working at cross
purposes, seeking to gain advantages
for their own lines in any consolida-
tons that might be effected. They
acquired smaller lines, by stock pur-
chaseS and otherwise, which the Inter
state Commerce Commission held to
be contrary to the public interest. They
/ fought silently, and without attracting
public attention, battles for trackage
control, for terminal facilities, for port
| outlets.
Meantime, when business generally
slumped and freight and passenger
traffic fell off, the earnings of the car
rierS, big and little, were materially
reduced. Smaller roads, which were
dependent for most of their traffic on
a limited area, and perhaps on the
business of single industry, such as
coal or steel, found their revenue re-
duced to point where service had to
be cut down and Improvements and
requirements stinted so that interest
could be paid to security holders, in
| Guiding the insurance companies and
savings BANKS when had properly in
vested billions of the publicS funds.
The effect Of this readily can be
realized. The larger roads, with a
great variety of traffic and ample
banking and credit resources, could
finance improvement programs even in
time of general business stress. And
they did so. in response to President
Hoover'S appeal to industry generally
to maintain and speed up construction.
But even the very largest railroads, with
the uncertainty as to the form of final
consultations, could not undertake
certain big projects involving expendi-
ture of hundreds of millions of dollars
and the employment of thousands of
men.
| One Of the larger Eastern railroads
for instance, long has contemplated the
building of new freight and passenger
terminal, the cost of which would be
approximately $50,00O,oO0 In addition,
another terminal project, involving the
building of a gigantic bridge and APP
proaches, would result in a $3.50, 1000 600
expenditure.
Delay of Identification.
Likewise, there have been delays, be-