The Mason City Globe-Gazette from Mason City, Iowa on April 30, 1936 · Page 17
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April 30, 1936

The Mason City Globe-Gazette from Mason City, Iowa · Page 17

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Mason City, Iowa
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Thursday, April 30, 1936
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·A , MASON CITY GLOBE-GAZETTE, APRIL 30 H 193C SEVENTEEN AMERICAN RAILROADS FACE FUTURE UNAFRAID Interstate Commerce Commission. a matter of fact, the proposed legislation was in the air so lone that by to come out all right. ' Performance statistics, in which red long has been a predominant shade, might, logically be conducive to a less optimistic frame of mind, but there Is no fog of pessimism 'around the top reaches of the Transportation Building, where Pelley is quartered as president of the Association of American Railroads -- sort of clearing house for rail problems. Not that he is tempted to break into cheers over existing conditions. With a quarter of the country's mileage in receivership; with only about BO of 345 class 1 roads (they are those systems whose gross earnings amount to $1,000.000 or more annually) on a dividend-paying basis; with close to the same number failing even to make expenses and taxes; with various Federal-State levies, effective and projected, shooting expenses skyward, and with railroads owing the Government about $500,000,000. congratulations are far from in order, even if business is pick- leg up. f But There's a Cheerful Side. But there's no law against a cheerful appraisement of the future, and that's what Pelley is doing. "The railroads are progressive." he comments; "they're economic. I believe we're going to get an opportunity to meet our competitors as traffic gets heavier, and that's all we ask. Yes, that's all!" The speaker should know, for he has. come a long way in the railroad game, after a start so far down the .scale that he practically had to stand on tiptoe to reach the usual "bottom rung of the ladder.'. 1 6^footer. at that. Small-town Illinois , from Anna, clerk for the Illinois Central there. Afterward a track worker and on and on until the new executive vice president of the Illinois Central was John Jeremiah Pel. ley. Then came the presidency of the Central of Georgia; next the same post on the New York, New Haven A Hartford, and finally, a. few months a-og, the rail chiefs of the United States elected him to his present post. Along with the railroad operations Pelley has directed subsidiary ship and motor lines, which just about makes him an expert witness for transportation. Opportunity Long Sought. That "opportunity to meet our competitors," which he visions as heralding a new era for the railroads, is something they have been advocating for quite a few years -- or since conditions became bad. Truck, bus and water lines are what they've been gunning for, and after sidestepping the issue for the best part of a decade, Congress this last year stepped out and jut. the motor carriers under the And he's a boy, hailing stage the railroads themselves had a very large finger in the bu- pie. and there wasn't a whole lot of argument from that angle. The real battle was over the trucks, but now their rates and -ervices also come under the commission--the act is effective April 1-and ibe railroads, to quote Pelley, look upon it as "constructive." It should be pointed out, he adds, that "equality of competition" is not something designed to make highway--or water--carriers charge S7 for something because the railnds do. but simply to fix their tariffs in line with what the service they furnish actually costs. Under the cut-throat principle that the i-ailroads hope is on its way out, service and cost often were not only not related, but weren't even on speaking terms with one another. A Point in Ulustration. Pelley chuckles over one story that illustrates this condition. The New Haven pioneered in the bus field when People began riding model Ts instead of trains and, along with some competitors, operated between Boston and New York. Eventually there were 10 lines on this route. The fare was $4-- though'pelley is certain even now that it should have been $5. "Well.' : he continues, "another fellow decided he .wanted to run a bus line. I said sure, come on in; the water's fine. We're all losing money already anyway. Well- ' It seems the budding transportation genius made his entry and decided that $3 was enough for a ride from Boston to New York, or vice versa. There was only one way to meet a challenge of that sort, and It wasn't long until a merry little rate war was in progress. By the time fares dropped to ground-floor level the new thre'at was quashed, but the then New Haven head is convinced that there is not much percentage in a proceeding--or series of proceedings--of that sort. So he's glad to see the bus-truck business moving toward stabilization. And that leaves as the next objective the water carriers. An Argument Guaranteed. Speaking kindly of "cheap" water rates in the presence of railroad oper- [ ators is as good a method as any of getting into an argument. When they marshal facts and figures about the "hidden costs," represented by Federal appropriations for waterways development, a bit of doubt is stirred as to just how "cheap" the rates may be. Now there's a bill by Senator Wheeler, Democrat, of Montana to regulate the rates and services of domestic water carriers pending in the Senste and a companion measure in the House. Also, the Interstate Commerce Commission has just recommended that it be empowered to NO. 1--A MODERN PALATIAL LINER NO. 2--AN ELECTRIC TRAIN. NO. 3-REFCEUNG ONE OF THE BIG AIRLINERS NO 4--J. J. PELLEY, PRESIDENT OF THE AMEJ ASSOCIATION. --A. P. Photo. NO. 5-A TRANSCONTINENTAL BUS LEAVING WASHINGTON --btar Stare Photo. ,, _ · --Star Staff Photo. AMERICAN RAILWAY NO. 5-A STREAMLINED COAL BURNER CAPABLE OF 120 MIIES AN HOUR - -A. P. Photo. for an Even Break Desire End of Unsound Restrictions and Proper, but Fair Regulation of Competitors. regulate the minimum rates of water carriers in joint water-rail movements. The A. A. R. is for this program. Recently President Pelley, In an unusual letter "to those whose interest in railroads is more than casual," discussed the railroad outlook, told what the carriers were doing to rehabilitate themselves and urged support for legislation that would help the roads and. by the same token, a fight against additional burdens. Problem Covers Field. "Regardless of the degree of efficiency which may be achieved by railroads, they will not be able by themselves to solve the so-called 'railroad problem, " he said. "In truth, it is not a railroad problem. It is a transportation problem to be solved finally not only bj the efforts of the railroads themselves, but also by the correction ol the unwise public transportation policies which are at the root of the trouble. "I -ay Bolides' because we have actually two contradictory public policies. To one form of transport, railroad, we say, in effect: " 'You shall pay all your own costs, not only the cost of moving your vehicles, but also the cost of preparing the way on which they move. You shall then pay taxes on both vehicles and way. real taxes which go to the support of the Government, not merely contributions toward the cost of furnishing the way you use. Should Government aid you. it shall be by way of a secured loan, which must be repaid with interest. All these costs must be met out of the rates which you are allowed to charge the users of your service, and that service must be rendered under conditions of strict regulation in the public interest.' Way Is Free for Others. "Contrast this with the attitude of Government toward other forms of public transport by highway, by waterway and by airway. They have no problem of finding the money or the credit with which to provide themselves with a way on which their vehicles may move. That is provided for them and maintained for them out of public tax funds, at a cost exceeding whatever they may pay as 'taxes,' so-called, with so large part of their costs of operation paic from the public funds, these agencies of transport are enabled to divert to themselves a considerable volume oi business which could move by rail at a lower real cost. In many instances, failure to regulate effectively the hours of service or conditions of safety among such transport operators has allowed them to hold down even that part of their costs which they do pay, often at the expense of safety. As to' a large part of their operations, they have heretofore been allowed complete freedom to make such rates as would get the business, regardless of discriminations or preferences as between persons or places. "That railroads have been able to stay in business at all under such unequal conditions of competition, and to do the major transportation work of America, is due to the inherent superiority of the rail method of hauling." The emphasis laid on the safety fac-' tor, by the way, is something more than a "talking point," for in 1935 there was not a single loss of life in the millions of passengers carried by the railroads. Another point of attack by the railroads--and Pelley drew attention to this also--is the long-and-short-haul clause of the interstate commerce act which makes rates between two distant points conform to the aggregate of those between its intermediate points, unless the Interstate Commerce Commission authorizes exceptions. The Petttngill bill to knock this section out is on the House calendar for action, with a favorable report from the Committee on Interstate and Foreign Commerce, and the rail lines are hopeful of passage. Here again the waterways Issue enters prominently. When this section, designed to help ntertnediate communities, was put into the act in 1S10. Pelley points out. railroads were the only important :orm of inland transportation. "That was before the Panama Canal was opened and before we had spent billions of dollars on waterways and' highways. Today conditions are en tircly different. Other forms of trai portation using these new public built facilities are not restricted their competition by any long-an short-haul clause, nor is there an thought of applying to them the r strictions which handicap the rai roads in meeting competition. "Freight which moves between 01 coasts by ship and the Panama Cantor which floats on our Improved inlan waterways, contributes nothing to in terior of intermediate communities i the way of pay rolls or taxes. Rai roads, on the other hand, arc em plovers and taxpayers wherever the run. · · · "While the elimination of tli long-and-short-haul clause will allo 1 railroads more freedom in meetin competition, it will not change th fundamental requirements of the in ;erstate commerce act that all rate shall be reasonable and shall not un duly discriminate as between places or persons." In this connection it was rccallei ;hat the railroads have been gcttlnt some support from the Interstat "lommercc Commission in their efforts ;o throw off the long-and-sbort-hau restrictions, -ost notably a short tim ago, when rate parity was grantee with ships for the movement of citru 'ruit from Florida to the East. Such changes require lengthy procedure whereas, under ordinary circum stances, railroads have the right to nitiatc. publish and flic rates will *e I. C. C. before getting its consent And that brings the subject arount ,o what the railroads are doing t help themselves. Points to Improvements. Improvements are all along th line, Pelley says. More attractiv ervicc--the new speedsters appea particularly to him--Is having its ffect on passenger business, anc reight traffic last year showed a 2,_ er cent growth, the movement of 1,518,372 cars being the heaviest nee 1931. The I. C. C. believes the assenger decline has been checked. Store-daor pick-up and delivery, andled by unified truck-rLil opcra- on. is spreading and boosting freight usiness, he said, recalling that roads a score of Southern and Western tales have just filed joint tariffs to art service of this sort lor less-than- arload shipments this month. Trucking interests, by the way, are fighting it. And here Pelley interjects that "the great reduction in the actual cost of moving business in the past dozen years is a solid factor of major importance" that must be considered in any estimate as to the future of- the railroads. In 1921 the average cost of hauling a ton of freight a thousand miles was $10.78. By 1933 that figure had been cut to $6.48. though the volume was curve upward again, he- concedes. But today's figure still is far under that of 1921. Correspondingly, rates havD dropped, and where the average reve-.' nue for hauling a ton of freight one mile in 1921 was 1.275 cents, now it' is under 1 cent--"beyond comparison' the cheapest inland transportation for the average of all commodities, over; all distances, between all points, in all j seasons and Including all elements of cost." But Other Costs Mount. But while the railroads arc cutting costs at one end, they are being piled , up at the other, and tills is a disturbing situation, President Pclley emphasizes. The pension act. once thrown out by the Supreme Court, re-enacted and now challenged anew by the railroads, will add about $54,000,000 annually to their expenses. The social security program also will take its .oil, while the G-hour day, train limit, and "full crew" bills carry a n e w : threat, he adds. "These bills are being pressed as. measures of safety," he says, "al- 1 though their obvious intent and effect would be to 'make work' on the rail-; roads." He estimates that pending) measures of this sort would raise op-' crating costs by as much as a billion! dollars a year--a load that could not! )e earned in the most prosperous- times. Rail employment has been dwin- tling and additional curtailments are a possibility as unification or aban- lonment of lines progresses, creating a problem that the railroads and' abor are now trying to iron out.1 "·regress here is problematical, bub 'clley says every effort will be mado to reach a satisfactory adjustment. Federal Ownership BiscountedL ''.' And as for recurrent talk of Gov-j rnmcnt ownership--he has no fears.' The tncory, he believes, has more- f a political than economic back-j roujd, for, he adds, no one ever has- ome forward with an argument that 1 he Government could operate the' "ilroads cheaper than those now in' large. Some investors, he continues/ avc an idea that Government owner-, hip would meat) getting dollar for ollar for their holdings. That would' ot follow, Pelly emphasizes. "We will not have Government vnership." he said, "unless and until ·ivate industry fails to maintain an dequate transportation system--and at will not happen. Right now e have a surplus of transportation.". He believes, too, the receivership nation will be worked out all right/ though granting there will be finan- al losses. Receiverships, he com- ents wryly, are not new. "You know"--Pelley leans back In rospect--"the railroads are won- rful. Depression, fierce compstition. .'but still they're going. It's the finest' down. Increase in wages and cost of thing I ever saw." materials has probably started the' And it probably is. Rudd Driver Purchases New Lamp Post for City After Cracking Old On A. D. Sewitt, Rudd, purchased new lamp post for the city Thurs day. It .will replace one he shattere as his truck pulled away from th Only a small down payment brings you this b e a u t i f u l « ffounwv f with »upejf.Bif« CAHRENE i NEW 1936 MODELS ?1 1 Q-50 \ f Hi'CED FROM . . . H «?up ; MASON CITY GRUNOW CO. 105 East State Street-- Phone 525 WAKD FURNITURE CO. Clear Lake, Iowa -- Phone 8 KOHLHAAS ,V SKIU.KS lovra curb on South Delaware avenue Wednesday. The truck struck the post and shattered 555.25 worth of concrete, -glass and wiring-. Gale Bartell. 270S Jefferson avenue southwest, was sentenced to attend traffic school on a. charge of double parking. V. L. Brooks. 107'/, First street southeast, was sentenced to school for overtime parking; in a loading zone. Douglas McPeak, 1107 Jefferson avenue northwest, was fined court costs and sentenced to traffic school on a charge of speeding. He was arrested at Fifth street and North Federal avenue at 9 o'clock Wed- nesday evening charged with traveling- 3( miles an hour. Donald DeArraoun. 420 U Polk Place southwest, was fined the court costs and sentenced to attend traffic school on a charge of reckless driving. He failed to stop coming out of Commercial alley on Second street southeast, at 8:30 o'clock Wedncsday evening. Dangerous Fat Cul out f a t meals--you rinn'l ·leed them--cat sensibly of lamb can beef,-fish and fowl. Go light on butter, cream and ugary sweets--eat fruit and vege- ables in variety. Gain in physical charm--look ounger--feel younger. Maryland lady writes: "I've lost xactly 21 Ibs. and am so happy o get rid of that bulky fat. My skin - clearer and I feel so much bet- T." Mrs. N. S. Take one half teaspoonful of Cruschen Salts in a glass of hot ·ater before breakfast every morn- frt - Krusehen cosls but a trifle and sold the world over---try one jar if not joyfully satisfied --money back--Get That Kruschcn Feeling. Broadcast Schedule of Music Contest on Iowa . U Station Announced IOWA CITY -- Broadcasts of group performances in the Iowa high school music festival -from station WSUI. will continue Friday and Saturday. A schedule mere complete than ever before has been arranged because of the fact that groups this year have a choice of selections and all are not compelled to give the same .selection. Hero is the broadcast schedule: Thursday: 7 tn R p. m.--Claps "AA boys' pice clubs; 3:10 1,0 n:-15 p. m.. Class A girls' glee clubs. Friday: ,s to 10.-10 a. in., class A orchestras; 10.--10 to 21:50 a. m.. Class AA orchestras; 1 Lo 2:10 p! m., Class AA girls' glee clubs; 7 to S p. m., Class AA boys' glee- clubs; S:10 to 9:45 p. m., Class A girls' glee clubs. Saturday: 9 to 11:50 a. m.--Class AA concert bands; 1 to 4 p. m., marching bands. Many Strange Calls Come to Firemen in 24 Hour Shift Here All manner of calls were received by the fire department Wednesday evening and Thursday morning. Students participating in the annual class fight of the high school were alleged to have set fire to paper in the city paper cans on Federal avenue about 8:45 o'clock Wdnesday evening in front of the First National bank and the Woolworth store. I Early Wednesday afternoon firemen had extinguished a grass fire at the Chicago, Milwaukee, St. Paul and Pacific railroad ice house in .the 300 Week on Ninth street southeast. At 31:45 o'clock Wednesday evening one truck took a ladder 'to the John Newman home. 1224 Adams avenue northwest, to allow a member of Uic family to reach a second story window to awaken the 11. year old son. \t-ho had gone to sleep and locked out. the family. Last of the strange calls c;ime Thursday morning when a tar keltle boiled over in the Iowa State Highway commission garage at Fourth street and Virginia avenue southeast about 10 o'clock Thursday morning and burned one end of the ;arage. Mrs. Alex Miller and Herring Laud Bravery of Slam Patrolman DES MOINES. (.r.--Of Oran Pape. slim Iowa, highway patrolman, Mis. Alex Miller, secretary of state, said: "He was one of our best patrolmen, one of the most popular, and ia all ways a fine, young man. "We glory in his bravery." The highway patrol is a division of the secretary of state's office. Gov. Clyde L, Herring said: "He certainly showed his courage. | It is a very sad thing he had to die." " Austin Man Kidnaped and Hurt in Crash Is Returned to His Home AUSTIN, Minn. -- Recovering from injuries lie sustained when an automobile crashed inlo a bridge, Victor Tomhave, Austin taxi driver, was brought here from the hospital at New Hampton, where he had been since last Sunday morning-. The accident occurred early Sunday after a bandit kidnaped and robbed Tomhave of $40 and then forced him to drive down into Iowa. When the car crashed into a small cement bridge north of New Hampton, Tomhave suffered head Joice Man Fined $100 for Reckless Driving Ben Lovik. .loicr. was fined S100 and costs Thursday by Police .Indge Morris Lnird on a charge of rock- less driving. Lovik waa arrested by police in the 200 block on South Federal avenue at 9:25 o'clock. Lovik admitted he had been drinking. Tony Klima, transient, and Wilbur J. Johnson. Clear Lake, were each fined S10 and costs on charges of intoxication. A'-thm- G. Harlm'an". Des Moincs. forfeited a SIO bond , posted when arrested on a charge of j disorderly conduct. i PAINT IF YOU WISH · PAPER IF YOU WISH · DO BOTH IF YOU WISH On Our Convenient Payment Plan No\v you can inodemr/.e your home on a convenient Time Pav- mcnt Plan . . . pay as you earn! No excessive charges--no red tape. Come in and ask for details, no obligation! Ralph S. Shepherd PAINTS AND WALLPAPER 16 First Street S. E. Phone 1362 BIRGE AND IMPERIAL WALLPAPERS and back injuries while the bandit escaped. Though Minnesota and Iowa authorities have worked persistently on the case, no clews of importance have been uncovered. A t Observance in Wells. KANAWHA--Mr. and Mrs. Clem Logan and family ot Kanawha attended the fifty-third wedding anniversary of S. L. Logan at Wells, Minn., Sunday. Davenport Man Cuts Wrist to End Life DAVENPORT. i.P)--Frank F,. Carthcy. -IS. railway freight clerk, ended his life Thursday morning by slashing his wrist with a razor blade. Despondency over ill health is believed to have been the reason, according to Coroner W. F. Skel- Icy. April 30 May 1 May 2 REXALL'S FAMOUS 2 Items For the Price of One, Plus Ic 335 South Federal

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