Evening star., 1933-04-11
Immediate Railroad Action
Put Strongly Before Nation

Public opinion is behind the belief.
| indicated by President Roosevelt, that
prompt action Is needed to preserve
the transportation system of the coun-
| try. Overcapitalization and costly
competition have been recognized for
| long time, and the present demand
for lower rates Is considered legitimate,
while wage conditions offer a further
problem. Some observers hold that
the chief function of the railways is
public service, rather than maintaining
dividends or providing work, and sup
porters of this position call for re-
organization on that basis. Benefits
are seen in the new bankruptcy law.
There is a place for the railroads
! as an indispensable transportation
agency" declares the Topeka Daily
Capital, with the further statement
that the problem sis one of the most
difficult that the country faces" and
has arrived at the point where it must
be dealt with vigorously and without
further delay" Observing that the
public is mot without knowledge of
falling tonnage, lower earnings, motor
competition. and frequent applications
to the Interstate Commerce Commis-
sion for permission to abandon lines
that are not even paying operating
COSTS" the Minneapolis Journal like
wise holds that "the time is ripe for
heroic reorganization of the roads"
Restoration to a sound and paying
basis would be welcomed by the whole
Nation" says the Oakland Tribune,
with a demand for altering legislation
which has put the steam lines at a
disadvantage and which was drawn in
times when circumstances were vastly
different" The Tribune feels that "it
hoar in ncfv yyxr nxFfd 6nt t11a
Government is getting ready to stand
behind the railroads with enough Of
backing and assurance to enable the
lines to emerge from present difficult
ties" On the other hand, the Buffalo
Evening News. pointing out that de
featiSt spirit is strongly in evidence"
suggests that "the rail managers might
first have good try at self-help be-
fore laying their burdens on the Gov
ernment.
I'm the final analysis" thinks the
Providence Journal, ''it Is not only
railroad labor that is interested in the
settlement Of the railroad problem.
There are millions of other workers,
cutnumbering the railroad employees
many times over, whose recovery of
their old jobs depends upon getting the
transportation of goods by rail re-
duced." The Chicago Journal of COM
merce asks: Does the administration
propose to operate the lines, however
they may be consolidated, for the bene-
fit of labor alone, for the continuation
of many jobs which might be pared
down by economies, and of high wages
which appear to be desired?" As the
situation is described by the Spokane
Spokesman-Revi ''On the one hand,
agriculture, the orchard industry, the
iyadlrcfriac tha rnirac Qnd other
basic industries are protesting, with
reason, that they must have relief from
freight rates that are burdensOme to
them. even in good times. and now
are crushing. On the other hand, the
railroad managers are saying that they
must have increased revenues If they
are to avoid bankruptcy. The third
angle, the railway employees, are mill
tant against wage reductions" The
Spokane paper emphasizes the conclu-
sion that "overcapitalization is crush !
ing weight on many railroad systems"
"The muddle is nearing a climax"
declares the Lincoln State Journal. |
"The Missouri Pacific has taken ad- |
vantage Of the new Federal bankruptcy |
law. 1t is intimated some other roads |
will follow quickly. In the readjust- |
ment that must follow there may be |
hope for railroad main lines. Present |
indications are that many branch lines |
are doomed. that the railroads will lose |
their tantacles and must be content in I
the future with bus and truck traffic I
feeders. That, at least, Is the view
many railroad men take Of the situ-
alton. This conclusion is reached after
long considers ton"
Probably the time has come" con-
cludes the indianapolis News, ito con-
slider the roq not as investments o as
employmeut bortluities but - sery.