Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-20
BIG CROPS TO AID
RAILROAD REVENUE
Movement of Farm Products
to Market viii Be
Heavy.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, August 20. - Large
crops may result in lower cash return
to the farmers, but their movement to
market will be favorable to the rail-
roads. Brookmire Economic Service
points out, adding that present railroad
traffic is close to minimum and Tor
this reason some sort of improvement
should not be long delayed
July was the twentieth consecutive
month, it is said, when railroad tratfic
was under normal and, while this Is
discouraging from the standpoint OF
railway earnings, it may prove help
to the carriers in their night for IN
creased rates.
The request for a freight rate in
crease should be accorded serious cen
sideration in their opinion, when 1t Is
considered that earnings OF Class
roads have never reached the 534 Fer
cent designated as a fair return on the
value of railroad property since the
passage Of the national transportation
act in 1920 Even in the prosperous
year of 1929 the Glass l roads fell
slightly under per cent. while the 1880
slump in traffic lowered this figure to
SO per cent and in the first six months
of 1881 return amounted to only 2.15
per cent. Even with an immediate in
crease of is per cent in rates, as asked
by the railroads, a return of 534 per
cent could not, in their opinion, be
realized for some time.
Truck Regulation.
Certainly says the Brookmire
Analyst, mo one believes that we could
dispense with the service Of the rail-
roads and all agree that the orderly
development of the ccuntry's industries
is largely dependent on efficient trans
portation This, the rails are able to
furnish. For 1t, they should receive
fair return"
Return of normal business conditions
should diminish truck competition, 1t IS
stated, eaS the expansion of long-haul
truck traffic over the past few months
can undoubtedly be attributed largely
to trucks which have previously been
employed in building operations and
which will again be used in local traf-
fic when business warrants 1t, as many
such diverted truck systems are now
being operated at a loss.
Regarding truck regulation, it is said:
1T must be further borne in mind
that truck transportation has been con-
fronted with little or no regulation. 1t
is likely that truck transportation viii
be faced both by increased regulation
as to the size and character of the We
hicles and with increased taxes. At the
present time the truck transportation
systems are the hardest users of our
paved highways, which the railroads,
together with other agencies, are taxed
10 support. The present state of affairs
cannot always continue, As matter
of fact, a change has already started,
and once railroads are placed on an
equitable competitive basis they VIII
easily overcome any Of the present
competitive disadvantages. The recent
Texas law is only the forerunner Of this
movement which is bound to develop.
Tt has also been found that railroads
can enter the business Of carrying
loaded truck bodies between two cities.
This offers a considerable possibility for
future development. With the railroads
in control OF these systems or working
in close harmony with them, they
should be able to turn truck transporta-
ton to a distinct advantage in the
course of time.
I'VE also believe the maximum COM
petition in passenger traffic has been
reached and that the trend in the pas
senger traffic over the next few years
will be upward The greatest COMPETE
ton TO railway passenger trafnc has
been the private automobile. With one
automobile for about five Inhabitants,
the future expansion of the automobile
INDUSTRY Is more tIIdIi lAAeAS W A1AOo
the normal trend Of population growth
and not to increase at the very rapid
rate experienced in the past decade.
The transportation Of crude petro-
leum by pipe lines has long been seri-
Gus competitive factor to the railroads,
but until a few days ago when it was
announced that a line had been opened
from the Midcontinent oil field to Chi
cago for the transportation Of gasoline,
the use Of pipe lines for shipping refined
petroleum products had been largely OF
sn experimental nature.
Inland Water Transport.
1T is understood that there are many
difficulties to overcome in successfully
transporting gasoline for long distances
through pipe lines, and IL is therefore
too early to assume that the rails VIII
lose a great amount OF trafnc TO this
new competitive source. On the other
Rand, the expenditure Of millions of
dollars by leading oil interests for the
construction Of such lines points to the
possibilities Of increased use Of pipe
lines for transportation purposes.
While is Is recognized that inland
water transportation may offer some
competition to railroad traffic in the
future, up 10 date it has been of no
serious consequence The taxpayers
HluoL SOOlACt Vi AdtC4 dNdhC4a ~ tic AdLb
that the Government is paying far
more in the maintenance Of its efforts
in this direction than has been received
from revenues This means that the
deficits in all cases must be made up
from the taxes paid While we realize
the difficulty OF eliminating these en-
terprises. sponsored by and fer the
benefit Of local politicians, some day
even these zealously guarded enterprises
must fall OF their own weight, despite
the Efforts Of their political sponsors"