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Show R. R. RATES MUST READJUSTED Dean of tho Wharton School of Finance on the Need of Good Railroad Credit. TO MAKE INVESTMENT SAFE. National Authority on Railroad Transportation Trans-portation Says Roads Must Da 8oIf8upportlng or Bcomo Bankrupt In an address on "The Railroad Puzzle," Puz-zle," dellvorod in Philadelphia, January Janu-ary 8, Dr. Emory R. Johnson, dean of tho Wharton School of Finance, and ono of the nation's lcadlnK authorities on rallroud transportation, declared thut "after tho llrst of March the companies com-panies must he self-supporting or he-come he-come bankrupt." ContluuliiK, lie mild: "Can the railroads be successfully financed nud operated when they aro returned to their owners? For two years the government has drawn upon tho public treasury to sustain the credit of carriers. "If the carriers avoid failure their Income must cover operating expenses, maintenance and capital charges; if the companies Bucceed to the extent that Is detnunded In public Interest, they must not only be able to meet unavoidable un-avoidable expenses, they must have some surplus revenue. "If thcro Is no Income to be used In part for betterments and in part for building up a surplus or reserve fund, tho public will uot invest in the railroads, rail-roads, their credit cannot bo re-established and maintained and corporato ownership and operation of the railways rail-ways will fall. "The Incomo of tho carriers is determined deter-mined by public regulation, and properly prop-erly so; but from this It follows that tho country must decldo botwecu u policy of ndequato revenues to the railroad corporations of the f uturo uud a policy of government ownership. "The government is entitled to credit for havlns; given greater unity to rail road operation, both line and terminal, It ha dull much that the carriers were prohibited from doing. The public pub-lic now realize that co-operutlon of the cnrrlers in the Joint use of equipment equip-ment nnd terminals should be encouraged, encour-aged, Instead of prevented. "Tho railroad legislation now pending pend-ing In Congress muHt solve many dial-cult dial-cult questions, but the most critical one Is that of providing for the future regulation reg-ulation of railroads in accordance with a policy that will cause the carriers to secure revenue sufficient to enable them to perform their services adequately ade-quately and with progressive efllclcncy. The railroad business must be made attractive at-tractive to private investments or the country will have to adopt government ownership and operation of the rail reads. There Is no other alterattJv.H |