The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1938-11-17
Monster of Competition
Cuts Railroad Earnings

Of course, road construction was
necessary. It was vital. The ma
tional policy for good highways can
only be praised. Yet, their very
existence is one of the reasons why
the railroads income has fallen off,
or, more properly, the normal in
crease in receipts was not realized.
We see, therefore, a great monster
of competition set up with money
from taxpayers pockets. The rail-
roads long have been the most heav-
lily taxed of any industry, which is
to say they helped pay for creation
of competition.
There was the creation of the in
terstate commerce commission
some years ago as a unit of govern
ment for supervision of the rail
lines. 1t was, and is still, needed.
But its existence, too, has held down
rail earnings. This has resulted
from the control of rates. No rail-
road is permitted to charge more
than rate approved by the I. c. c.
While the competitors were creep
ing forward, under governmental
blessing, the I. c. c. was saying to
the rail lines: "You fellows obey
our orders, or else"
Subsidies out of taxpayers pockets
have gone to build up another COM
petitor, also. I refer to inland wa
terways and to coastwise shipping.
This means of transportation has a
value that hardly can be measured.
1t is as much part of our national
economic life as the highways and
the attendant motor transport. But
it exists, and it is able to operate
as a competitor of the railroads, be-
cause of paternal government that
made things easy and gave help
ing hand wherever it could do so.
Air Transportation NoU
Steps Into the Picture
Lately, air transportation has
been expanding with remarkable ra-
pidity. No nation in the world has
such efficient air service, nor as
safe air service, as is to be found in
the United States. It is carrying
increasing amounts of freight and
express; it is transporting thousands
upon thousands of passengers. These
passengers are of the type, general
ly speaking, willing and able to pay
for the luxury train service which is
profitable when the trains are filed.
These air lines are benefiting from
government subsidy in several
ways. The air mail doesn't begin
to pay its way; the government
makes up the difference by con-
tracts that call for stated pay
ments. And consider the scores of
great air fields throughout the coun-
try! The bulk of them are built at
public expense. True, the air lines
pay for the privileges of the field,
but does anyone think that the air
lines could afford to spend $40, 000,-
900 to build such a field as that which
serves metropolitan New York?
Funds for it came largely from a
federal government grant. The
same benefcent Uncle Sam is put
ting out several millions at the door
step of the national capital here to
build a proper airport.
There are other things that could
be taken up and set apart to show
how the government has helped
competitors of the rail lines in most
practical fashion. Questions of tax
alton, grade crossing construction
of an expensive character forced
upon the carriers, requirements for
terminals of luxury-type construc-
ton and so on. I believe it unneces-
sary to recount them. Those that
have been enumerated serve to
show where the trouble is. 1t does
not show the answer, but believe it
| points the way to an answer. The
answer, as have mentioned above,
certainly can not be found, however,
unless there is genuine study of an
unselfsh sort undertaken by con-
gress.
Western Newspaper Union