Nogales international., 1931-04-01
BUS COMPETITION
HITS RAILROADS
Bankers Association Presi-
dent Asks Even Treatment
for Rail and Motor Trans
port-Favors Mergers

~ the railroads in respect to high
way motor competition was called
for by Rome C. Stephenson, Presl-
dent American Bankers Associa-
ton, in a recent address here. He
also strongly endorsed Sound eco
nomic railway consolidation" and
praised President Hoover for his
initiative in this respect.
81 am very strongly of the opin-
ion that one of the measures which
would help materially to put back
business where it ought to be is
. the Eastern four-system plan OF
railroad consolidation as announced
recently following negotiations
instituted by President Hoover" d"
said Mr.. Stephenson. Its adoption
by the Interstate Commerce Com
mission would tend to stabilize
the transportation industry, facili-
tate operation and exert a favor
able influence on business.
ut is a fact we'll known to busi-
ness leaders that our railroads are
now facing a crisis. Not only do
they need protective laws to meet
competitive situations arising from
increased use of our highways and
waterways by other carriers, but
they need unification such as the
proposed four-system plan"
Mr.. Stephenson declared that the
past, present and future progress
of the United States is insepar-
ably bound up in railway welfare.
In neglecting just consideration for
them we are even more neglectful
of the public's best interests.
A Question of Public Interest
1--WE are confronted with the
question as to how much more the
public economic interest will stand
an invasion of the welfare Of the
railroads by forces and difficulties
not of their own creating and not
within the scope of their own unaid-
ed powers to combat" said Mr.
Stephenson. 81 refer especially to
new competitions that are under
mining the hard-earned position of
the railroads, not only with the aid
of natural economic forces but also
through the aid of government poll
cies which give competitors undue
advantages over the railroads.
at goes without saying that the
railroads have no right, nor claim
any, so fer as l have been able to
discern. to complain at legitimate
competition in the field Of transpor-
tation, for the public is entitled to
The best possible transportation at
the lowest practical cost. But
equally does it go without saying
that this cannot be fairly brought
about by using, or by failing to useo
the taxing powers of government
to enable competitive methods OF
transportation to do things they
could not otherwise do as unaided
private enterprise, particularly
when this impairs vested rights held
by great masses of our people In
enterprises now serving the public
we'll"
Mr.. Stephenson said it was not
his purpose to argue against such
competitive transportation as the
highway passenger motorbus and
motor truck as such when con-
Quoted under proper conditions and
in keeping with public welfare and
benefit. He declared, however,
there is need for serious consider
alton whether such competition is
being developed under conditions
that are unfair to the railroads
Would Investigate Bus Traffic
Railroad rights of way. he de-
clared, represent tremendous cap
ital investments, on which the rail
roads have also heavy current
costs to meet. They pay every day
q million dollars in taxes and most
OF this is ON their rights OF way,
he said. ALSO they spend daily
over two million dollars additional
for the proper maintenance OF
way" He asserted that the motor
buses have not had to pay for their
rights of way in any sense that the
railroads paid for theirs.
"They have simply taken posses
sion of public highways built by
public funds, both state and ma
t!onal," he continued, land they
have extensively made those high
ways vastly less comfortable, less
safe and less serviceable for priv
ate motorists and others who are
contributing chiefly to their crea'
ton and maintenance"
Mr.. Stephenson declared that all
these matters should be thoroughly
inquired into by competent pubilc
bodies, both state and national,
with a view Of determining the
equities and basic public economic
interests involved, particularly in
respect to their effects upon the
nations railroads.
II venture to say" he added,
that such Inquiries would show
whether it is to the public interest
to let things remain as they are,
whether the situation calls for a