The Waterbury Democrat., 1941-10-08
Railroads To Face
 Battle For Survival
Traffic Expert Sees Era of Most Violent Competition
 at End of Defense Program

Chicago, H., Oct. e--Amefican railroads face a battle for survival when the present defense effort ends, according to A. F. Cleveland. noted traffic expert who appeared before the Presidents Fact Finding Commission here today.
 Except for the current temporary boom in rail traffic, Cleveland testi- fled that the trend since the first World War had been away from the rails toward publicly Subsized high way, water and air transport. Ac- celeration of this trend was seen after the present emergency If rising freight and passenger rates result from railway labor's demand for 30 percent wage hikes.
 Further acceleration of the trend by the traffic expert in the current expansion of transportation facili- ties in connection with the country's defense effort. Tremendous expan- sion of aviation facilities and person. mel training, construction of huge commercial and military truck fleets, greatly expanded merchant marine, and extended petroleum pipelines were cited as factors contributing to an overdeveloped transportation plant when peace returns.
 Cleveland pointed out that while the roads are handling more ton miles of freight than in any previous year, the revenue is substantially below the previous peak year of 1929. This, he indicated, would necessitate increased rates to take care of ad- ditional costs arising from wage hikes.
 Serious questions of public policy, of possible inflantionary aspects of a freight rate increase were called to the commissions attention by the witness. Efficient railroad trans portation with sufficient power and cars Is necessary, he continued be. cause all other transportation agen- cies combined cannot supply the countrys demands. Adequate service is impossible without adequate rev- enue, the expert declared.
 Elaborate trafflc studies presented in chart form substantiated Cleve- lands testimony. These charts re- vealed that:
 Railroads handled more ton miles of traffic in 1e40 than in 1922 but received $450,00o,0o0 less revenue due to effect of competition upon rates.
 Railroad movement of livestock to 1T principal markets declined from oS.39 percent of the total in l9l6 to 37.e3 percent in l940. During that period truck movement of live stock to those markets increased from i.ei to 62.7 percent.
 Registered busses increased from 10000 in 1919 to l4l,000 in l940.
 Five hundred times more paSseTl- gers were carried In airplanes in l94o than in 1926.
 Inland waterways traffic index figures for le40 were 323 as com pared with i07 for railroads.
 The petroleum production index for i040 was l3I.2 above 1923 while tho railroads ptroleun traffic index declined le.i for the period.
 Adding to the gloomy prospects for American railroads, Cleveland pointed out that production of wealth is diminishing with our war efforts and that new industries are producing materials for the destruc. ton of wealth.
 when the emergency period is over he sees much of the rail carriers present business returning to coaSt- wise and intercoastal shipping and river traffic at present diverted to