The times-news., 1938-11-23
NEWSPAPERS OPINIONS
SAYS POLITICS COSTS RAILROADS
A BILLION AYEAR

A BILLION AYEAR
Asserting tnat the troubles of the railways are,
~ bottom 100 per cent political in their origin. "
Paiuav Age estimates that removal of political
bapdicaps would mean at least one billion dollars
Of additional revenues, or equivalent operating
economies, to the rail carriers. ''. .-H I'D"
The publication estimates that political favers to
rival agencies of transportation alone account for
loss of $500, 600 600 in traffic to the railroads.
and that this total is boosted by hundreds of mil
Es by the rate concessions which the rail carriers
have been forced to make to hold traffic in the
face of government-aided competition. Other po-
Et;caI sources Of reduced railway earnings emu
merated as follows: "' '''
s.Tbe long-and-short-hau clause, which prevents
the railroads from competing on even terms, par
+;cpIarIv with the coastal and intercoastal water
lines. -.'
..Tbs refusal of the 4ate-making authorities ito
allow the railroads to make train-oad rates Com
netent authorities have informed us that few, If
anv. nine lines except for natural gas would even
have been built in this country if the railroads had
been permitted to establish rates for traln-load
cor+ities of gasoline and crude oil, as of course
tba nine lines are permitted to do. Hence it fol-
lows that this political restriction on the railroads
has lost TO them many millions of tons of petroleum
traffic which but for this restriction, they might
today be handImg)
..Comnulsory contributions exacted OF. the rail
roads for unremunerative improvements, such as
grade-crossing elinliratiors: ' .''Ss~. e. .'' I'd"
sFu1 crew and train limit legislation in many
states recurring the employment of men not eco
nomicaly required to perform transportation ser
vice. 80 '...r5". "
"Lsbor legislation which has given the final set
Element of wage disputes to the political authorities
who are unable in Judging such questions to over
look the fact that party to such disputes has
votes which they need to stay in office. fWage
rates in other industries. show some tendency, at
least to fuctuate with the prosperity OF the indus
tries, but on the railroads, wages recently have
been at an all-tme peak while railway earnings
were at an all-time low.)" .a-.. ...-'''. .-
Continuing, the magazine says: "Take the New
York State Barge Canal. This canal last year han
died 100000 tons of traffic, as compared with
only 1870 900 tons in 1921, an increase of almost
800 per cent. And yet IN the period that the barge
canal has enjoyed such increase in traffic, rail-
road rates have been repeatedly lowered, and rail-
road service has been greatly improved But these
railroad improvements have 7availed nothing against
the 91a million dollars that New York State tax
payers contribute each year to keep the barge ca
nal in operation The barge canal would not move
a ton of traffic in competition with the railroads
if the y million subsidy We're removed. And the
source of that subsidy is politics.
Improved efficiency of operation is of little or
no help in meeting subsidized cOmpetition-be-
cause the subsidy can always be increased to meet
any Improvement in railroad efficiency service,
regardless of how great it may be. Right now there
is a strong agitation going on for deepening the
barge canal to 27 ft so it can accommodate ocean
expense to be borne of course, by the
taxpayers. Such an increase in the subsidy would
cancel years of steady Improvement in railway Op-
Grating efficiency. And. even supposing that the
railroads could suddenly increase their efficiency
enough to offset. such an increased subsidy, there
would still be the possibility of extending the op
erations of the Federal Barge Line to the canalso1
the taxpayers would then not only subsidize the
waterway itself but the cost of operating vessels
upon it as well. Railway engineers and operating
officers are competent men, but they simply cannot
hope to save money as fast politicians can spend
it for the benefit of railway rivals.
Engineering talent can solve, and has been solv-
ing brilliantly the railroads engineering problems
Managerial and operating and accounting genius
have similarly brought the performance of the op-
Grating purchasing, accounting and other depart
ments up to a high standard Of perfection. But in
the political realm, the railroads have Jagged be-
hind and at a time when their most pressing prob
lens are political ... .- .s. ..s
fThe troubles OF the railways, at bottom are 100
per cent political in their origin. 1t follows there
FORE that there cannot be any solution to the diff
fculties which crushing the railroad industry
and its employing power which does not include
the removal of at least some of the unfavorable
political prtssure which is being exerted against
it. No one will deny that knowledge by railroad
employees and the general public of the extent to
which they are harmed by the present handcaps of
the railways would quickly bring demand for the
removal of these handicaps. Never have organized
employees been so receptive as they are today to
the idea that whatever harms the railroads harms
the employees too" ..,... -,a
TRAIToRoUS?
John j., Lewis 70 l;pl,