The Waterbury Democrat., 1932-09-28
By LOWELL l.. LEAKE

New York, Sept 28-(UP)-The Coolidge railroad com mission, for mally announced last night, will begin work at once on an all.in- elusive survey that may result in the most drastic changes in 45 years in the laws governing rail- road regulation and rate making.
 The members of the commission are Calvin Coolidge, former presi- dent of the United States, retired from public life during the past four years; Alfred p. Smith, dem- ocratic presidential candidate in 1928; Bernard M. Baruch, finan- cier; Clark Howell, newspaper publisher, and Alexander Legge, former federal grain board head. now president of the International Harvester Co.
 The announcement was made by w. H. Bennett, president of the Immigrant Savings bank, repre- senting a group of banks, invest ment houses, insurance companies, industries and economists.
 A letter inviting the service of the five men, andN released by Ben nett, reviewed the "grave financial position" of the railroads, operat- ing this year under staggering deficits" and involving the liveli- hood of 1,50O,000 employees, $3O0,- OO0,O00 paid annually in taxes, and $19,5OO,o0O,O00 in securities held largely by thrifty investors either directly or through insur-" ance policies backed by such se- curities.
 "Any ultimate loss will constitute 8 burden on every tax payer, the letter said.
 The purpose of the survey, in brief, is to trade security for in- vestors and workmen for removal of some government restrictions or control over the railroads.
 Bennett's letter referred to this problem in these words:
 Many of the present ills are due to governmental, financial, labor and management policies, some wrong in conception, some wrong in application, and others rem dered obsolete by radically changed conditions.
 The public interest most cer- tainly must be protected, but reg ulation should not place the ra1i- roads at a hopeless disadvantage with competing agencies and de- stroy flexibility of operation, man. agement and initiative. ,,
 We beg of you to examine all phases of the problem and recom- mend a solution which with due regard for the public interest will insure an opportunity for the rail- roads of this country to operate on ho CiS ''
 Bennett said that "any substan- tial improvement in the status of the railroad carriers should have a stimulating effect on industry as a whole" He cited the fact the railroads were the largest employ CTS of labor, and the largest buy CTS of industrial supplies.
 The railroads to-day are suffer- ing from business that is just half what it was in 1880. Their earn ings have fallen to almost noth- ing, or in most cases where earn ings of from fifteen to twenty mill lions we're reported, there will be deficits this year.
 There are exceptions-the Read ing for instance. For seven con secutive months 1t has reported an increase in net operating rev. enue over the corresponding month last year. Some other roads re- ported slight seasonal traffic gains | for August, due to grain or coal shipments.
 The roads also face labor trou- bles. A wage conference In which a proposed 20 per cent cut was to be discussed probably will be post poned until the first of the year That means that unless the wage cut notices are posted at once wages may revert on February | to the 1881 scale. That would cost the roads $1O,000,0 ,000 monthly, for on February 1, 1882, the wages were reduced 10 per cent for one year.
 Procedure leading to continua' ton of that reduction or to a fur. ther wage cut would require pos'
 The roads also are heavily bur- dened with financing charges, Many Of these. 1t has been charged, are the result of poor management, of "watered stock" or uDprofltabla
 They also are suffering from in. creased competition. The PanatDa canal in 20 years has taken much coast ito .Ooast slow freight traffic. Wheat, ore, oil and other heavy freight are being moved economic ally on the UFaat Lakes ana rivers, iiusses are increasing their ffeIsbi and passsnReF haul, AiFpianes hfa increasing theiF traffic, oii is bp' Ing iFaDFp0riad bp huge pipe linss These problems gradually bass