Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1937-12-16

officials would dare lie to the COM
mission, even if they were so in
clined, because the commission has
access to every item of expense
and income, even all actions of the
management, of the carriers.
It might be added in this con-
nection that officials of the inter
state commerce commission under
stand there is to be request bv
the interstate truck operators for an
increase in rates if and when the
rail lines are allowed higher rates.
The trucks are represented as slow
ly starving to death-but they can't
and won't boost rates until their
competitors, the railroads, charge
more for their services.
believe there is no better way to
set forth the plight Of the railroads,
mr., as presented to
FtIght the commission.
of Carriers than to include
here some ex-
cerpts Of the statement made off,
cially in the case by DR.. ]. H. Par
melee. He is director of the bu-
reau of economics of the Associa-
ton of American Railroads and. as
such, knows the details.
To-day" DR.. Parmelee said. s'the
carriers are reducing forces and are
curtailing their purchases Of equip
ment, materials and supplies. They
are forced to do this because of the
financial condition in which they find
themselves. This retrenchment has
serious economic effect on en-
ployment, on the manufacturers of
railway supplies and their employ
ees and on all business activity.
Such policy with its unwholesome
economic consequences only partial
ly offsets the rising tide of costs.
''The railroads in 1927 to 1880 in
stalled more than twelve times as
many locomotives each year, nearly
five times as many freight cars, laid
nearly three times as many tons Of
rails and laid nearly twice as many
cross ties as they averaged In the
depression years from 1881 to 1885.
Capital expenditures for 1929 and
1880 averaged $685., 164, 900 I. year.
During the depression years from
1891 to 1886, the average Of capital
expenditures was only $206, SIS, 900.
Similarly, the trend of railway
purchases (of things they must use
in operation), Of fuel, material and
supplies declined sharply during the
depression years and never has re-
turned to anything like normal.
Railway purchases in 1929 and 1890
amounted to 81, 184, OF, 900 in each of
the two years. In the five years
from 1891 to 1885, the average per
year was about $559, 000, 900. In 1886,
the expenditures in this direction
were up to 5000, 421 900. Figures
for 1887 are incomplete but there
has been another decline because of
necessary curtailment Of buying.)"
DR.. Parmelee turned to the ques-
ton Of railroad receipts for their
services. He told the commission
that the depression years had left
the railroads without any reserves.
For seven years, he said, the rail-
roads have been barely getting by,
and pointed out that at no time be-
tween 1891 and 1887 had they earned
more than 2.57 per cent on their
investment as 1t is appraised by the
commission. In three Of those sew
en- years, the records show, the
railroads receipts did not amount to
as much as their fixed charges, a
term which includes interest on
their debts, taxes and required
amounts for paying of parts Of their
debts. In other words, all they
earned in those years was just
enough to pay the people who work