The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-10-02
RAIL RECOVERY
WOULD AID ALL,
DENNEY SAYS

Nothing is more essential to
public recovery than the prompt
improvement Of the purchasing
and employing capacity Of the
railroads which only can be
brought about by increasing the
revenues of the railroads, Mr..
Charles E. Denney, president Of
the Erie Railroad, said today in
urging the Interstate Commerce
Commission to grant the petition
of the railways for increases in
freight rates on certain COM
modities.
Mr.. Denney said that it is in
the public interest that the rail-
roads have sufficient revenues to
enable them to maintain adequate
and efficient transportation
service. Owing to his inability
to be present, due to illness, Mr..
Denney, who spoke in behalf Of
the Eastern Railroads, had his
testimony read into the record.
Mr.. Denney said:
"A survey Of the situation
has satisfied me that even il
an increase in traffic may be
expected, it may not be ex-
pected in time or In sufficient
volume to ward off the neceS-
sity for increased revenues
which We are seeking. Rail-
road executives, as does every
other citizen interested in the
welfare of the country, hope
for q substantial increase in
business and revival in trade
and industry commensurate
with the numerous govern
mental activities now being uTl-
dertaken in cooperation with
private capital, to bring about
such q revival.
"The anticipated upturn in
business and traffic has re-
Gently not continued and the
gross revenue for 1894, judging
from present and recent traf-
fic, will not be materially
greater than for 1888 and may
not equal 1t.
Gan adequate and efficient
railway transportation service
is of vital importance, not only
to the public in general, but
to the shippers in particular,
and Congress has written that
factor into the present law to
be considered by the commits
sion in determining the value
of the service to the shipper.
"The extent to which the
financial condition Of the rail.
roads directly affects the public
interest must be borne in mind
and it is generally conceded
that nothing is more essential
to business recovery than the
prompt improvement of the
purchasing a n d plOying
capacity of the railroads. The
money derived from the pro-
posed increase will soon find its
way back to the channels Of
trade.
1--WE can not by increased saw
ings effect additional economies
Immediately or in the reason
ably near future in addition to
those heretofore effected which
will materially offset the pres
ent increase in operating ex.
penses which has already re-
suited and which will continue
because of the increased cost Of
labor, materials and supplies.
There is little question but that
the railroads should spend more
than is now being spent on
maintenance. With no i'm
mediate prospect Of a sub
Stantial increase in the volume
of business or of further ma
terial savings in operating ex-
penSes, the carriers are COM
PEELED to seek an increase in
their present rates"
Mr.. Denney said that the only
further economies on large scale
that can, in his judgment, be eff
fected in the future, and which
could not come in time to be of
any help in the present emer-
gency, will come either through
justif BILE consultations or
through substantial additional
capital expenditures.
He told the commission that the
railroad executives believe that
the increase in various freight
rates sought in the petition will
result in a substantial increase in
net revenues.