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Show R. R. RATES MUST READJUSTED Dean of the Wharton School of . Finance on the Need of Good ' Railroad Credit. . TO MAKE INVESTMENT SAFE. National Authority on Railroad Trans-, Trans-, portation 8ays Roads Must Be Self-Supporting or Become . ''' Bankrupt' - '."''' In an address on t'The Railroad Pus-Kle," Pus-Kle," delivered In Philadelphia, Jann-ary Jann-ary 3, Dr. Emory R. Johnson, dean of the Wharton School of Finance,: and one of the nation's leading authorities on railroad transportation, dared that "after the first of March tho companies com-panies asnst be self-anpportlng or bo-come bo-come bankrupt" Continuing he said: "Can the railroads be successfully financed and operated when they are returned to their owners? For two years the government has drawn upon the public treasury to sustain the credit of carriers. "If the carriers avoid failure their Income must cover operating expenses-maintenance expenses-maintenance and capital charges; IT the companies succeed to .the extent that Is demanded In public Interest, they must not only be able to meet unavoidable un-avoidable expenses, they must have some surplus revenue. "If there Is no Income to be used In part for betterments and In part for building up a surplus or reserve fund, the public will not invest in the railroads. rail-roads. th,lr credit cannot be re-established and maintained and corporate ownership and operation of the railways' rail-ways' wfiT fall. " -- "The Income of the carriers is determined deter-mined by public regulation, and properly prop-erly so ; but from this It follows that the country must decide between a policy of adequate revenues to the railroad corporations of the future and a policy of government ownership. "The government Is entitled to credit for haying given greater anlty to railroad rail-road operation, both line and terminal It has done much that the carriers were prohibited from doing. The public pub-lic now realise that oo-eperation of the carriers in the Joint nae of equipment equip-ment and terminals should be encouraged, encour-aged, Instead of prevented. "The railroad legislation now pending pend-ing In Congress must solve many difficult diffi-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 efficiency. 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 railroads. rail-roads. There Is no other alternative." |
