TO LAY A SPECTRE

The interstate commerce commission is to hold hearings in in appointed by various organizations to information. Governors, business men, the general public--all are discussing the situation. And it is essential that they should, for the financial soundness and credit position of the railroads are dependent upon the character of the merger, the future success of private ownership and operation is involved.

There are some who would have "One Big New England System. They emphasize historical geographical, and sentimental reasons and among the possible financial solutions, a states' guarantee of finances which might; lead to governmental control, operation, or even ownership. That the railroads could be on a by adopting such a plan is dubious. The short New England roads unfavorably situated, cannot make a profit alone when operated under a rate-making schedule which for the larger and stronger roads in the Eastern territory. If they were to charge enough to yield the statutory rate of return upon property value, the rates would be so high comparatively that many industries would be driven from New England and the general situation would become even more precarious than at present.

By joining the various roads to trunk lines which reach the New England gateways, however, the aim of the Transportation Act can be accomplished; the strong lines will be used as the financial backbones and the existing problem of the apportionment of through rates will disappear. All the earnings from one system will go into a main treasury from which the subordinate operating units will receive the necessary support. In this way the railroads of New England will be restored to a sound financial basis and the spectre of public ownership avoided.

There are some who would have "One Big New England System. They emphasize historical geographical, and sentimental reasons and among the possible financial solutions, a states' guarantee of finances which might; lead to governmental control, operation, or even ownership. That the railroads could be on a by adopting such a plan is dubious. The short New England roads unfavorably situated, cannot make a profit alone when operated under a rate-making schedule which for the larger and stronger roads in the Eastern territory. If they were to charge enough to yield the statutory rate of return upon property value, the rates would be so high comparatively that many industries would be driven from New England and the general situation would become even more precarious than at present.

By joining the various roads to trunk lines which reach the New England gateways, however, the aim of the Transportation Act can be accomplished; the strong lines will be used as the financial backbones and the existing problem of the apportionment of through rates will disappear. All the earnings from one system will go into a main treasury from which the subordinate operating units will receive the necessary support. In this way the railroads of New England will be restored to a sound financial basis and the spectre of public ownership avoided.

By joining the various roads to trunk lines which reach the New England gateways, however, the aim of the Transportation Act can be accomplished; the strong lines will be used as the financial backbones and the existing problem of the apportionment of through rates will disappear. All the earnings from one system will go into a main treasury from which the subordinate operating units will receive the necessary support. In this way the railroads of New England will be restored to a sound financial basis and the spectre of public ownership avoided.