The Republican. [volume] (Oakland, Md.) 1877-current, 1936-02-20
By ]. A. FOX

ing for railroads for quite a while,
thinks they're going to come out all
right.
Performance statistics, in which red
long has been a predominant shade,
might logically be conducive to less
optimistic frame of mind, but there
is no fog of pessimism around the top
reaches of the Transportation Build
ing, where Policy is quartered as pres
ident of the Association of American
Railroads-sort of clearing house for
rail problems.
Not that he is tempted to break
into cheers over existing conditions.
With a quarter of the country's mile
age in receivership; with only about
80 of las class 1 roads (they are
those systems whose gross earnings
amount to $1,OOO,OOO or more an
nually) on dividend-paying basis;
with close to the same number failing
even to make expenses and taxes;
with various Federal-State levies, eff
fective and projected, shooting ex-
penses skyward, and with railroads
owing the Government about $780,
100000, congratulations are far from
in order, even if business is pick
ing up.
But There's a Cheerful Side
But there's no law against cheer
full appraisement of the future, and
that's what Policy is doing.
1.-THE railroads are progressive" he
comments; "they're economic. I be-
lieve we're going to get an oppor-
tunity to meet our competitors as
traffic gets heavier, and that's all we
ask. Yes, that's ALI"
The speaker should know, for he
has come long way in the railroad
game, after a start so far down the
scale that he practically had to stand
on tiptoe to reach the usual bottom
rung of the ladder" And he's a
6-footer at that.
Small-town Illinois boy, hailing
from Anna. Clerk for the Illinois
Central there. Afterward a track
worker and on and on until the new
executive vice president of the Hi
nois Central was John Jeremiah Pei
ley. Then came the presidency of the
Central of Georgia.; next the same
post on the New York, New Haven &
Hartford, and finally, a few months
ago, the rail chiefs of the United
States elected him to his present post.
Along with the railroad operations
Policy has directed subsidiary ship
and motor lines, which just about
makes him an expert witness for
transportation.
Opportunity Long Sought
That opportunity to meet our COM
petitors," which he visions as herald
ing a new era for the railroads, is
something they have been advocating
for quite a few years-or since con-
ditions became bad. Truck, bus and
water lines are what they've been
cunning for, and after sidestepping
the issue for the best part of decade,
Congress this year stepped out and
put the motor carriers under the
Interstate Commerce Commission. AS
a matter of fact, the proposed legis-
lation was in the air so long that by
the time it reached the enactment
stage the railroads themselves had
very large finger in the bus pie, and
there wasn't whole lot of argument
from that angle. The real battle was
over the trucks, but now their rates
and services also come under the COM
mission-the act is effective April /
and the railroads, to quote Policy look
upon it as constructive"
It should be pointed out, he adds,
that Equality of competition" is not
something designed to make high
way-or water-carriers charge 81
for something because the railroads
do, but simply to fix their tariffs in
line with what the service they furn-
ish actually costs.
Under the cut-throat principle that
the railroads hope is on it's way out,
service and cost often were not only
not related, but weren't even on speak
ing terms with one another.