The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-06
Our Railroads
BY THOMAS L. STOKES

VXTASHINGTON, Sept. 6.-Lay of of workers
w by the New York New Haven g. Hart
fora and some western railroads, on top OF APP
plication by the nations roads to the interstate
commerce commission for increased rates, served
today to emphasize anew a major economic
problem that has been accentuated by dlmln-
ishing operating revenues. Lively debate IN
congress on the whole problem is expected.
These developments focused attention sharp
~ on the ICC and Joseph B. Eastman, 1eoeTaI
railroad coordination, who is IN the midst OF
plans designed 10 pat the railroads back on their
feet and make them pay as they go.
Reduction of personnel by some railroads,
following so promptly upon the request for S170,-
600 900 IN rate increases by ali the carriers, was
regarded in some quarters here as premeditat-
ed in other words, as means Of stressing their
claims.
TT is the general opinion here that the ICC will
l. grant some rate increases though not to the
extent asked by the railroads. The recent drop
in business has reacted, usual, to cut down
revenues. Net earnings of $28,5l0,OOO were re-
ported by the first hfty-eight railroads to make
financial statements for July, as compared with
S50569 900 for July 1888.
Railroads recently have been complaining
about increased cost caused by the new railway
pension act, which requires them to lay ASIDE
about S60000,000 a year for retirement pay
ments They challenged the law in district SUI
preme court here, but their request Tor an IN
junction was denied on the ground that thus far
the orders of the pension board have worked no
undue hardship. The court left the way open
for future injunctive requests.
Railroads pay about $35 100000 a year now
under their own pension plans. Some have
been discontinued.
Another added cost is restoration of the 10
per cent wage cut which is being returned
gradually. Two and half per cent was restored
June l, with 2la more due Jan. and the other
per cent April l.
INDICATIONS that the administration is seri-
Il ously concerned again about the railroad
problem which has perpleXed the government
ever since the depression, was seen in a recent
editorial by Raymond Moley, confdant and adj
wiser of the President, which demander action
by the government.
Though this was interpreted in some quarters
as criticism of Mr. Eastman, there is no evil
dence here that the President is dissatisfied with
the effort the railroad co-ordinator is making,
against considerable Odds TO bring some order
out of railroad chaos.
Mr.. Eastman found lack of cooperation by
the railroads with his plans TO overhaul the
countrys railroad structure at the outset and
finally had to set up himself the necessary re-
gional committees to suggest methods for econo-
MIXING by eliminating duplication of services,
sales forces, administrative agencies, accounting,
and by pooling facilities, and The like.
His view of railroad arrangements creeps out,
here and there, in his reports to congress in
which he spoke of the high degree of individ-
ualism" among railway executives which resulted
in failure to get together on recommendations
made by their own association.