Evening star., 1932-12-09
kG. c. VIEWS RAIL
OUTLOOK HOPEFUL
Annual Report Repeats Num-
ber of Recommendations
for Betterment.

Despite "forebodlngS Win respect 10
the future of the railroads" which have
been intensified by the steady decrease
in revenues, the Interstate Commerce
Commission believes the outlook Is
definitely hopeful because Of the eff
forts OF all parties concerned to Improve
the situation.
This was brought out yesterday when
the commission forwarded Its annual
report to Congress. repeating q number
of recommendations for strengthening
the transportation structure of the
country.
Within the next few months" the
commission said, "it should be possible
to appraise prospects with greater GER
tainty and to determine whether action
along normal and usual lines will SUI
hciently provide for the maintenance OF
an adequats and eficient national sys-
tenn Of transportation without resort to
extraordinary remedies
The commission cited three lmpor-
tant grounds for encouragement which
merit emphasis:
/. An upturn in trafic this Fall
which was described IS furnishing bat
ter grounds for belief that the bottom
OF the decline had been reached than
existed for the similar hope entertained
last year.
Success In Retrenchments.
2. The railroads have been "surpris-
ingly successful in reducing their op-
Grating expenses in a ratio reasonably
close to the reduction in operating rev.
enues." This is viewed as producing last
ing economies, and has led to the conclu-
sion by some competent authorities"
ha anarfiAng that aUhAY,
no more than half Of the trafic which
has been lost since 1929 IL recovered,
the railroads viii be able 10 earn the
same net income as then"
3. More or less aimleSS concern over
the future of the railroads Is being rap
Idly replaced by intensive study direct
ed toward ways and means OF improv-
ing the situation" In this connection,
attention is called to the formation Of
the National Transportation Committee
(hcaded by Calvin Coolidge), whose
study Is bound to be Of value" Greater
cooperation among the carriers them
selves is cited as another important
consideration.
obviously. the report continues, the
greatest need of the carriers Is trafic,
but there are secondary causes which
appear to be more susceptible Of efYec-
tive treatment"
One of these, 'the competitive trans
pcrtation situation" the commission
emphasizes, should receive immediate
attention"
Here. it is recalled. the commission a
year ago argued that Congress should
study the often-reiterated contention
of the railroads that they were sub
jected to unfair competition from high
way and water carriers and air lines,
which receive subsidies" in one form
or another from the Government
Against Unfair Advantage.
This recommendation Is repeated. the
Commission asserting that mo rival
transportation agency should be given
an unfair advantage over the railroads
public expense"
Another previously -made recommen-
dation to which the commission calls
attention is that dealing with assump-
ton Of jurisdiction over busses and
trucks. A start should be made In this
direction, it Is asserted with the rates
and service of interstate busses coming
under control. It will take experience
to determine what measures may Be-
applicable to truck transportation, but
q good guide eventually. it Is felt. will
be experiments made by the States In
this field. and the results Of bus con-
troll. when and If set up
The need for uniform safety regula-
tien for highway carriers would be
studied in connection with the congres-
sional probe Of "subsidized COMPETE
tion." under the commissions pro-
posal
In a general discussion of competi-
tive transportation agencies, the. COM
mission argues for stabilized rate-mak-
ing. declaring ''the drift seems to be
toward rate chaos at present"
Port-to-port rates Of water carriers,
the report points out, are not under
the Jurisdiction Of the commission. and
here, 1t is explained, there are indica-
tions Of "a tendency toward destructive
competition" that warrants study by
Congress.
Suggestion for Repeal
The commission also repeats It's sus-
gestion for repeal of the recapture
clause of the transportation act, under
which the railroads are required TO re-
turn to the Government half Of their
profits above per cent. Coupled with
this is the proposal for simplified rule
OF rate-making which would allow the
commission Ito be guided by the need
Of producing 50 far as possible reve-
nues which will be sufiicient for the
maintenance Of an adequate national
railway transportation system. and also
TO recognize the principle that the rail-
roads may justify earn q surplus in
times Of prosperity as a safeguard