Evening star., 1934-09-12

Applications Of railroads for in
creased rates because Of inadequate
funds from present operations pre-
sent problems which are discussed
at length by the press. 1t is generally
agreed that the roads need relief, but
some observers fear that higher rates
might defeat their purpose.
THE roads come into court with
clean hands," in the opinion of the
Indianapolis Star, which points out
that they have made important
strides in the last decade toward re-
ducing costs and increasing efficiency
of service" The Star believes that
"they are entitled to consideration
from the Government in efforts to
earn a margin of profit sufficient to
make requirements and insure the
maintenance of existing standards"
This widespread commercial ma
tion," says the Oklahoma City Times,
requires abundant transportation
facilities, and at the lowest cost COM
patible with efficient operation. In
the long run, the country'S progress
demands that freight be moved by
methods most advantageous to ship
pers. The trucks, which contribute
but a minor part of the cost of high
way construction and maintenance ]
certainly have the advantage on
short hauls, and even on long haulS
with certain commodities. Doubtless
there is need of revising the present
rate structure, but it should be ad-
justed on a more equitable basis than
has hitherto obtained"
More liberal policies should pre-
vail" thinks the Rock Island Argus,
and that paper advises: Doubtless
an increase in freight rates is not
welcome in these times, but, on the
other hand, what is to become of the
railroads If they must forever oper-
ate under heavy handicaps? Bound
hand and foot by strict regulations,
the wonder is that they function at
all. And If the roads become nom
productive the whole country will
suffer. Hundreds of communities
would sorely miss the tax money paid
by the roads, not to mention other
considerations. We have long con-
tended that the roads should not be
subjected to such repressive restric-
tions."
Shippers will not welcome any
freight-rate increases at this time"
according to the Beaver Falls Pa)
News Tribune, however, "since their
plight is much the same as that Of
the railroads. The I. c. G. will have
a serious problem to wrestle with
when it takes up the request" The
Lowell Courier Citizen comments:
I'VE are inclined to expect that the
advances will be allowed where it
is believed that they will in practice
be productive Of substantially in
creased earnings. The railroads can
not fairly be restricted as they are
in efforts to reduce their personnel
and be practically forced to maintain
wages at a fairly high level. unless
a way can be found for them to get
back at least a new dollar for an old"
The Indianapolis News suggests that
"the increases asked for affect a wide
range of commodities and are not
uniform throughout the country"
and adds: Some Of them run as
high as 10 per cent. 1t Is plain
that the petition Is designed to in
volve q minimum of encouragement
to other forms of transportation and
to make the most of the long-haul
field, in which the roads have found
that their business lies. The basis
will stimulate shippers to vigorous |
opposition on arguments that the |
rates are arbitrary rather than just |
according to fixed scale Of charges |
resting on cost"
"The railroads Of the country" re-