Evening star., 1936-01-19

thought of applying to them the re-
strictions which handicap the rail-
roads in meeting competition.
Freight which moves between our
coasts by ship and the Panama Canal.
or which floats on our improved in
land waterways. contributes nothing
to interior of intermediate communi-
ties in the way of pay rolls or taxes.
Railroads. on the other hand. are en-
ployers and taxpayers wherever they
RIM
While the elimination of the long
and-short haul clause will allow rail-
roads more freedom in meeting compe-
tition, it will not change the funda-
mental requirements Of the interstate
commerce act that all rates shall be
reasonable and shall not unduly dis
criminate as between places or per-
sons"
In this connection it was recalled
that the railroads have been getting
some support from the Interstate Com
merce Commission in their efforts to
throw off the long -and-short haul re-
strictions, most notably short time
ago when rate parity was granted with
ships for the movement of citrus fruit
from Florida to the East. Such
changes require lengthy procedure,
whereas, under ordinary circum-
stances, railroads have the right to
initiate. publish and file rates with
the 1. C. c. before getting its consent.
And that brings the subject around
to what the railroads are doing to
help themselves.
Points to improvements.
improvements are all along the
line, Pelley says. More attractive
seryice-the new speedsters appeal
particularly to him-is having its
effect on passenger business. and
freight traffic last year showed %
per cent growth, the movement Of
.31,518,372 cars being the heaviest
since 1881. The I. C. c. believes the
passenger decline has been checked.
Store-door pickup and delivery,
handled by unified truck-rail opera
ton. is spreading and boosting freight
business, he said, recalling that roads
in a score of Southern and Western
States have Just filed joint tariffs to
start service of this sort for less than
carload shipments this month. Truck
ing interests, by the way, are fight
ing it..
And here Pelley interjects that "the
great reduction in the actual cost of
moving business in the past dozen
years is q solid factor of major i'm
portance" that must be considered in
any estimate as to the future of the
railroads.
In 1921 the average cost of hauling
a ton of freight thousand miles was
$10.7S. BY 1888 that figure had been
cut to $6.48, though the volume was
down. Increase in wages and cost OF
materials has probably started the
curve upward again. he comedies, but
today's figure. still is far under that
of 1921. Correspondingly, rates have
dropped, and where the average reve-
nue. for hauling a ton of freight one
mile in 1921 was 1.275 cents now it
is under l cent--"beyond comparison
the cheapest inland transportation for
the average of all commodities, over
all distances, between all points, in all
seasons and including all elements Of
COST"
But Other Costs Mount.
But while the railroads are cutting
costs at one end. they are being piled
up at the other, and this is a dis
turbing situation, President Pelley en-
phasizes.
The pension act, once thrown out
by the Supreme Court, re-enacted and
now challenged anew by the rail-
roads, will add about $54.000.000 an
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