Evening star., 1932-09-22
COUzENS OPPOSES
RAIL MERGER PLAN
Michigan Senator Says There
Is Nothing New in Pro-
posaI of Roosevelt.
snecial Dispatch to The Star.

Special Dispatch to The Star
DETROIT, September % (N.AN.A)-
"There is absolutely nothing new In
Gov. Roosevelt's plan for relief OF the
railroads as outlined by the Democratic
nominee in his Salt Lake City speech
Senator Couzeus. chairman of the
Interstate Commerce COMMITTEE, SAID
today.
The proposal is not difficult to make
but somewhat difficult OF execution. y
the Senator said. AS his own remedy
for the railroads ills, he said they must
strip themselves of all unnecessary or
obsolete facilities and expect return
only on necessary CT useful capital"
What I mean by obsolete" he ex-
planned. "are facilities not needed as
result OF the rapid development of good
roads and the motor industry.
1T is roughly estimated there are
10000 railroad stations tl.4t ought to
be abandoned. There are many thou
sands of miles of branch and short line
railroads not needed because service is
being given more efficiently by motor
vehicles. Hundreds of millions OF dol
lars are invested in great terminal faclh-
ties for handling less than carload and
other short t-haul business - facilities
that. in my judgment, will never be
needed again.
Look to Government.
Neither Gov Roosevelt nor Congress
should contemplate that the public con-
tinue to pay freight rates sufficiently
high to give return on these facilities.
While the railroads are the backbone of
our transportation service. the public
should not be asked to pay return on
obsolete or unnecessary facilities any
more than they should be asked to pay
a return on obsolete or unnecessary
facilities in any other line of business.
Until a few years ago the railroad
industry generally was considered a
monopoly. Many railroad owners have
net yet awakened to the changed con-
ditions. They still think it the Gov
ernments responsibility to see that they
get an adequate return on all their
ia acllitieS whether or not used or use
full. They have not been required to
compete on rates for many decades.
because the Government has guaran-
teed, them against competitive rates.
Now in q very few years, there has
been the greatest highway development
in the worlds history. coupled with
enormous expansion of the automo
tive industry. creating transporta-
ton facility able to compete effectively
with the railroads in service and rates.
There are undoubtedly inequalities
in taxes required from these two means
OF transportation. That must be
Strengthened out. The major part of this
Job however is within the States.
Travel Within State.
For an example, I point out the
enormous traffic by highway within the
State Of Michigan between such points
as Detroit, Pontiac Flint, Lansing and
Grand Rapids, over which the Federal
Government has no jurisdiction.
The farmers have contributed heavily
to this new transportation system, and
it will hardly become the Government
to take from the farmer Advantages he
has gained by this investment in getting
goods to market.
IF Gov Roosevelt, the Interstate
Commerce Commission and others who
indorse the program referred to believe
that We must have monopoly in trans