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Show Railroads, Rates And Finances The freight rate increase, granted grant-ed the railroads by the Interstate Commerce Commission, is not what the carriers wanted. The rail executives ex-ecutives agree that the Increases are not sufficient and that revenue will not be augmented In volume sufficient to setlle the financial problems that confront the roads. There is another side. The Increased In-creased rates may not bring in extra ex-tra revenue. Greater Increases may have resulted in the loss of business busi-ness end consequently in a shrinkage shrink-age of revenue. Motor vehicles get help every time the freight rates go up. The basic' trouble with the nation's na-tion's railroads, however seems to have been touched by Senator Truman Tru-man of Missouri, a member of the Senate committee that has been Investigating In-vestigating railroad financing. He says the only cure is a financial overhauling for the nation's "very sick rail transportation system," which has been the victim of an "lnvestment-'banker policy." Senator Truman points out that the railroads have a "rate structure struc-ture and a classification for the N'crth;&stt.-ra secii'.n cf the coun- , try, an entirely dilfe:ent one fori the Scut.liea.sern Slates and when they come to the MLssissip,.i and Missouri rivets they stirt all over and r.a!:y tangle things up on a '-,rand scale." liwiing his re.rarks on testimony j MCU(..iit cut befo. e the committee the Mi.s.sc, iri .senator remarks that Cf.t-jla lailr'.ads are "terrible examples ex-amples of w. liat can happen when the financiers manipulate then in the name cf consolidation." However, How-ever, with $3,500,000,000 of their b'.nds i.i the hands cf savings Link.-; and insurance companies and abort $7,000,000,000 mere in the hands of the public the obligations -.ar.'t be ' wiped off the slate." We are sympathetic toward the ijilrc?d: in their present plight but not t o sure that basic stability can he gained without drastic steps to establish them on sound financial structures. Tills may mean squeezing squeez-ing s me watee out of the stocks and bonds but in the long run it might be the best course. |