| Show TOWARD ECONOMIC NORMALCY how long can you keep a losing business going that tha t is the problem faced by the railroads and a problem that is not the result of depression but of 12 years of comparative poverty they have kept the machine ingoing going only by the most stringent economy salaries and wages have been drastically reduced and personnel decreased expenditures for materials and supplies have been halved maintenance work has been postponed and for two years no important equipment purchases purchase S have been made now the lines have reached the point where further reductions in the cost of operation are manifestly impossible and only a new transport policy can save them from ruin in 1920 the railroads were returned to their owners after 26 months of government management brought on by the exigencies of war in the law restoring them to their owners was a provision allowing only a moderate return on their investment fixed by the interstate commerce commission at per cent yet in not a single year since then have their earnings been that high today with many lines passing dividends and being unable even to meet fixed charges out of income earnings have almost reached the vanishing point depression or no depression no other fundamental industry has been so restricted by law and regulation in its operation the railroads ask for nothing except a governmental policy that will treat all carriers as much alike as possible and allow them to compete on fair terms it is essential to the public interest that such a policy be conceived and applied it would put hundreds of thousands of men to work pay reasonable dividends to the multitude of railroad shareholders aid I 1 savings banks insurance companies endowed institutions and similar heavy railroad investors in other words it would bo be a step toward economic normalcy A 1933 national highway program to be coordinated with railroads rather than to compete with them will be the keynote of the tenth asphalt paving conference in new orleans december 59 5 9 discussions will center around solving problems of making smaller road budgets fit expanding highway needs by building farm to market roads as logical railroad feeders not more truckling truc truck kline line highways as railroad competitors |
