Show R. R R. R RATES MUST BE ADJUSTED Dean a of f the Wharton School of Finance on the Need of Good Railroad Credit TO MAKE INVESTMENT SAFE National Authority on Railroad Trans Trans- Says Roads Must Bo 80 Supporting Self or Become o Bankrupt The rhe Puzzle In an n address on zie delivered In Philadelphia la January January Janu Janu- ary nry 3 Dr Emory Emor U R Johnson dean of ot the Wharton School of Finance and andon andon on ono of ot the nations nation's leading authorities on railroad tran transportation declared that after the first of March the companies com com- companies panics must IJ bt- bt supporting self-supporting or become become be be- come bankrupt Continuing he said sald Can Cnn the railroads be successfully financed and operated l when they are returned to their owners For two years tho the government has hns' hns drawn upon tho pu public lIc treasury to sustain the credit of carriers If It the carders avoid failure their Income must cover operating expenses expense maintenance and capital charges It If the companies tic succeed to the extent that is demanded In public Interest the they must not only be oe able to meet Unavoidable unavoidable un un- I n avoidable voidable expenses they tIley must lin have 6 some surplus r revenue If there Is no ome im-ome to to be oe used In part for betterments an and In part for building up a surplus or or reser e reserve fund the public will not invest In the rail lail oads their credit cre lt cannot annot be rc re reestablished and maintained mainlined and corporate corporal ownership and operation of or the railways railways rail rail- ways will fall fail The Income of the carriers Is determined determined deter eter- mined by 01 public regulation and properly properly prop prop- erly so but from this It follows that tha the country must decide between i a policy polley of ot adequate revenues to the railroad corporations of ot the future nm and anda a p policy lIcy of ot government ownership The government Is entitled to credit for tor having given greater unit unity to railroad railroad rail rail- road operation both line Une and terminal It has hns done much that the carriers were prohibited from doing The public pub pub- Uc lic now realize that operation co-operation o othe ot of the carriers In the Joint use of equipment equipment equip equip- ment and terminals should be encouraged encouraged aged Instead of prevented The liThe railroad legislation now v pendIng pending pend pend- Ing In Congress must solve e many dim dim- I cult questions but the most critical on onIs one Is that of providing for tor the future regulation reg reg- uJ of ot railroads In accordance with wit witha a policy that will cause the carriers t to secure revenue sufficient to enable them to perform their services adequately adequately ade ade- and with progressive efficiency The railroad bustness must be made at at- to private Investments or th the country will have to adopt government ownership and operation of the rail lan roads There Is ts no other othor alternative e |