Imperial Valley press., 1939-03-02

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coming out about the carriers. 1t
begins to look as though they have
again Weathered the storm.
I do not need TO emphasize the
terrific importance of this indus
try to every man, woman, and chld
in America. I can safely say that
when we have prosperity in the
railroad business it means more dol
lars and cents in the pocket OF
every reader. The fortunes of whole
towns and cities throughout the
nation depend upon the railroads.
Coal and iron mines steel plants,
locomotive and car shops. lumber
mills and paint factories are just
few of the businesses which pros
per when the railroads. prosper
Then, when they pay dividends,
their investors add to the national
prosperity.
Buying and Hiring
Hence, it is significant news when
press dispatches read like this:
Orders for more than 5000 tons
of steel rails and accessories have
already been placed in 1899 Here
! is another: The line plans to take
on 300 men now, with 5000 addi-
tional employees in the summer" 3"
/ Still another: The railroads have
Just made inquiries for 85 new
| locomotives. This all means more
jobs for steel, machine shop, and
railroad workers, better service for
passengers and shippers, bigger
earnings for railroad equipment in
yestorS Railroad employment is still
far below the 1897 peak and some
what under a year ago, but the
outlook promises more jobs this
spring.
What are behind these important
news announcements? Let me list
some of the most important points
l. Studies show the railroads are
not. at this time, losing additional
freight traffic TO trucks and other
competitive means Of Transports
ton.
2. Railroad traffic is per cent
higher than at the low of last June
back to the level of 1888, and above
1882, 1893, and 1894
3. The gain in traffic has boost
ed gross revenues 13 per cent.
4. Economics in railroad opera
tions and curtailed maintenance
expenditures are allowing the road,
to turn this 13 per cent gain il
gross revenues into 100 per cent
increase in net income!
5. In the latest month, most o.
the roads are paying their bills
and taxes, meeting their payrol
and interest charges, and still have
some income left over.
6. Congress seems to be in {
helpful frame of mind There
should be some constructive legis-
lation from Washington this ses-
sion.
I. The roads are under better
management. There is evidence o.
less lawyer influence.
8. Labor costs are high for {
business just keeping its head above
water. Labor leaders, however, arr
showing more cooperation.
8. Service is better. After year.
of tsleep- walking, the roads arr
taking a genuine interest in giving
the best possible service.
10 Savings in cost of operation
through better materials and mor'
efficient equipment are enormous
Some Gloomy Problems
Against this background of bette
news loom some real obstacles
Many people believe they can neve
be hurdled short of government
ownership-or, at least, by the gov
ernments buying first mortgag
8 per cent bond issue on the roads
thus enabling them to reduce in
terest charges so per cent.
/. Taxes are enormous. No re
lief from this score is in sight a
spending mounts day by day Socia
Security is terrific burden, grow
ing each year.
2. History shows that as soon a
some cream, in the form of bette
earnings, rises to the surface labo
grabs it.
! 8. Politicians are putting ever