The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-06-17
Sterilization of Industry and
Transport
(Railuov Aunl
(RailWay Age)

Manufacturers Of chewing gum or
shoes or machinery, or anything at
all, can make agreements to end
wasteful competition and bad working
conditions, and If they do not do so
the government will do it for them.
In transportation, however, as far as
the government Is concerned, the
railways and their employees will con-
tinue to suffer from the competition
OF unregulated water and motor
transport paying wages which in
many cases are the merest fraction of
those of the railways. Moreover $780,
100000 is to be spent on additional
highway construction, with no assur-
ance that large part Of it will not be
used for heavy-duty highways paral-
leling the railways.
The policy with regard to transpor-
tation, however, does not present an
anomaly alone in its failure to include
control of highways and inland water
way transportation. There Is also evil
dence of lack of understanding
which has led to errors of a more
positive nature, namely, the continued
overinvestment in transportation IA
cilities. We have already mentioned
the 400 million dollar appropriation
for roads, with no safeguards to pre-
vent a large portion of this appropri-
alton from being used, not in areas
suffering from lack Of transporta-
ton facilities, but in those suffering
from an oversupply. No person is per-
mitted to lay down a rail line wher-
ever he pleases, simply because he has
the money to do SO. He must first
convince the regulatory authorities
that the territory is not already ade-
quately served and that his project
will cater to the public's convenience
and necessity. Yet highway COM
mission or the Army engineers may
construct an arterial road or a water
way, as the case may be, If they can
secure the nancy, without any showing
whatever as to the transportation
needs of the territory or the ade-
quacy of existing facilities. BY con-
tinued appropriations for such pur-
poses, with no requirement for show
ing public necessity before an impair
tial tribunal, the government is fore
ing upon the transportation industry
the very antithesis of planned eco.
nomy which is the cornerstone of it.
policy for dealing with industry II
general.
II planned economy Is a desirable
policy then what are we to say Of tn,
st. Lawrence Seaway project, involv
ing an investment of hundreds Of mil
lions of new capital designed to taxi
traffic from railroads already bull
and used to less than half their ca
pacity? A more modern and efficien
method of transportation which II
justice should supplant an older
wasteful agency? Not a bit Of it; !
the New York Central Railroad wer
freed Of capital charges, freed Of Al
valorem taxes. freed Of maintaining
its roadway-if it were thus placed o.
accounting parity with the st. Law
renee Seaway-it could haul all tn
freight that the canal will haul a
lower cost. Moreover, it would do tn
Job infinitely more quickly and woul'
be on duty "a hours day Throughout
the year, regardless of fog or ice. Tn
st. Lawrence Seaway threatens no
only the loss Of some OF the invest
ment In the railways, but the furthe
economic waste Of transferring traffi
from a more efficient agency to on
which. fairly compared, is less effici
ent. No recognition has thus far beel
vouchsafed this important fact b.
those responsible for the government
industrial policies. Yet it must b
recognized If we are to have ordere
Economy in transportation, such as
envisioned by the government for In
dustry as whole.
The conclusion Is unacceptable thai
to establish economic planning in tn
transportation industry
l. Commercial highway and water
way transport must be placed upo
the same plane of self-support an
taxation as the railways.
2. There must be similar control {
rates and working conditions for a
forms Of transportation.
3. OverexpanSion and destructiv
. competition must be prevented by til
control not only Of new services upol
but Of investment in highways an
waterways, by the same authorit
which regulates such services and ir
7 vestment by the railways.
The court at Higham Ferrer
> Northamptonshire, England, has NJ
E had q case of drunkenness for eigl