Evening star., 1938-09-30
RAILROAD RELIEF
HELD VITAL NEED
Wage Adjustments A and
Reorganization Are
Called For.

While the Government has been engaged
IN an effort to save the railroads Of the
country, the press also has been studying
the situation and suggesting the remedies
that may be invoked to preserve the tradi-
tional transportation system.
Advising that 1t is futile to make further
loans from the public purse" the Wall
Street Journal makes the comment: IF
the companies can support their requests
Tor new legislation they should be able to
get 1t without first buying the consent Of
labor's friends in Congress. The reason
ableness Of rail wage scales and the ability
OF the carriers to pay them and still main
tain employment and render adequate
service are questions apart from the merits
of consolidation law, reorganization law
or any other kind Of rehabilitation which
Congress may be able and willing to
extend"
THE most promising avenue of relief"
thinks the New York Journal of Commerce,
"is through consultations and co-ordina-
tion. to which labor is strongly opposed
because Of the loss OF jobs that will result.
The elimination Of the wage increase of
last fall, on the other hand, would be Of
concrete value to adjusting railroad ex-
penses to the current level Of revenues
The arrangements should stand firm there
fore, in their determination to effect the
wage readjustment, regardless OF legislative
threats"
I'VE are interested" says the Phila DEL
phia Record, 'in what has happened since
the Eastern railroads, over the objections
OF the Baltimore & Ohio and against the
better judgment Of several members of the
Interstate v,ie =
passenger rates to two-and- "a half cents a
mile. Railroad executives are now COM
planning OF drop in travel"
The Railway Employees Journal" Al
quoted by the San Jose (Calif) Mercury
Herald, puts the blame for the desperate
financial situation OF the railways in con-
siderable part on the Government, which
has granted subsidies to competing agencies.
The results Of studies OF the highway cost
OF heavy trucks in several States are pointed
out showing that they are getting, in fact,
subsidy Of around $25O.OOO 600 through
license taxes, which do not cover what the
state has to pay for construction and
repairs of highways used by them. The
subsidies granted to the Panama Canal
steamship lines, waterways and sirvays
amount, it Is stated, to another $3.50, 900. =
OOO"
Costly bridges" suggests the Lynchbure
tVa) Advance, ARE also being erected to
handle the huge trucks and vans that Use
them. Surveys should be made in every
commonwealth to determine how much
extra cost is involved in building roads tn
accommodate heavy duty traffic and the
penalty for the extra expenditures placed
on that class OF traffic which is benefited
The average motorist ought not be re-
quired to bear the burden"
There is no good reason" saws the
Rochester Times Union, why heavy long
distance trucking. taking valuable business
away from the railroads, should be fostered
AZ public expense, or be exempt from reeu-
latlon OF the type deemed necessary for
railroads. Give the railroads a fair break
They need 1t. and We still need them
Ntally. to say nothing of the huge invest
ment IN rail securities and the large public
revenue from taxes on the lines"
Help Tor business, to increase rail reye-
nues' advised by the Jersey City Journal
while the New York Herald Tribune con,
knos that 1T is question of the survival
OF the business as q means of emplov-
ment. The New York Times emphasize,
tne problem Of further reducing costs "
On the wage controversy, the Jersey
observer states that, unless the problem
Is settled, both sides may 70 down f,oht-
ing and drag the rest of the country With
them" VIVA