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Show Railroads Must Stand by Themselves . not oc- b&$? rTMIE conclusion that "in the public1 Interest the railroad Industry must rest upon Its own foundations Tind Its revenues must be so constructively regulated that the operations of the carriers will vproduce enough to pay fair wages, cost of materials, taxes, meet the fixed charges, pay a fair dividend and leave a margin to attract at-tract investors of new capital" Is announced an-nounced by the Joint congressional commission of agricultural Inquiry. This conclusion Is reached by the commission after a study of railroad management and financing, along with other conclusions and recommendations recommenda-tions as follows: That the Issue of tax-free securities securi-ties and large expenditures for nonproductive non-productive purposes by the federal, state and municipal governments be reduced to the smallest possible limits so that the taxes can be decreased and capital funds be allowed to Increase for the use at fair Interest rates by agriculture, Industry and the railroads, and thereby help promote essential Industries. In-dustries. That the railroads establish regional traffic executives and organize public relations departments to bring about closer contact und a better under standing between themselves and the public. That new money for railroad Improvement Im-provement should not be rulsed through constant government aid. That sound railroad finance requires that a larger part of the credit necessary nec-essary for ,rallway construction he obtained by stock Issues Instead of by bond Issues. In reaching Its conclusion and In making Its recommendations, Chair-, man Anderson said today the commission com-mission utilized this basis: "The railroads are not self-sustaining and are therefore not on a sound credit basis. If this condition continues. con-tinues. . transportation service will be crippled and the country will suffer accordingly." |