Indianapolis Times, Indianapolis, Marion County, 10 March 1938 — Page 7

RAIL PROBLEM BACK ONF. D. R. AFTER 6 YEARS

Government Leasing Roads to Be Suggested: At Conference.

By MARSHALL M’NEIL Times Special Writer

(Editorial, Page 14)

WASHINGTON, March 10. — A new attack on the railroad problem 18 expected to ‘develop out of President Roosevelt's conference

next week with railway officials and | |

Government experts. The conferees will present widely varying views, but Administration leaders hope these can be distilled into a composite program on which Congress, the President and the carriers can agree. The President will hear that— Railroad financial reorganizations ar the key to the problem, the Interstate Commerce Commission should be given a legal club to induce such reforms, and a special reorga ihizesion court of experts should be set u F ailroad consolidations should be pushed; Z new independent agency should be created to study the whole transporiation field and recommend action to the ICC and: Congress; The office of Transportation Coordinator should be re-created and forified with ample authority to bring about operating economies; Tt e Government should lease the railroads, operate them long enough to »ring about reorganizations and con:olidations, and then turn them bac: to their private owners; and a Railroad rates must be raised another 15 to 20 per cent. Problem Not New Te “railroad problem” of today is very similar to that which existed. whe the New Deal came in. It became acute with the depres-sion:-and in 1932 Mr. Roosevelt devote® one of his major campaign speeches to it. At Salt Lake City, in Sept-omber, he outlined a six-point program for rehabilitating the carriers Since then, various remedies have beén tried. Tk< RFC continued to lend large sum: to the railroads, and PWA alloc=fed a great deal of money for improvement. Th= office of Transportation Coordinator was set up to bring about operz ting economies, but provisions of the law restricting the displacement of labor through such economies made it ineffective. ~The railroads got rate increases, and they got decreases. Railway labor {ook a wage cut, and then cot it back—and more. The carriers, spurred by plane and bus competition, put into operation many fine new trains. As business improved, railroad revenues improved until the late summer and fall of ’37. Then came 8 precipitous decline in traffic— on top of a large increase in operating expenses, occasioned by the wage restoratives, the railréad pension I: Ww, taxes, and rising national

costs. Plight Is Simple Tod:=y, six years after he offered his six-point program, President Roosevelt finds the “railroad problem” back in his lap, and in a more acute ‘orm. Of the total railroad mileage 28 per cent is being operated by receivers or trustees, and the general fear is that unless business improves markedly in the near future, a much greater percentage will be in receivership before the year is out. In at least one case, it is fearcd that abandonment of operation may accompany receivership. Basically, the railroads’ plight can be stated in four words: They haven't enough business. According to railway representatives here, the general freight-rate increase of approximately 5 per cent granted Tuesday by the ICC won’t restore their financial health on the: basis of existing business. It has been estimated that a general freight-rate increase of 20 per cent more would be necessary to give the roads a reasonable profit with their present volume of business. ICC Commissioner Joseph B.

TRANSCONTINENTAL PLANE FORCED DOWN

WASHINGTON, March 10 (U. P.). —The Washington office of the American Airlines announced today that one of its transcontinental planes had made a forced landing

‘The only damage reported was to the ship’s propellors. All seven passengers and the three members of the crew were unharmed.

~The plane was en route to Los Angeles.

increase is only a palliative, and that it runs contrary to good economics in times of depression, thinks that now is the time for new independent agency to re-examine the whole field of transportation. It would try to integrate various types of transportation, recommend rate changes and other regulations to the commission and new legislation to Congress. Senator Wheeler (D. Mont.), Senate Interstate Commerce Committee chairman, and a key figure in any railroad relief program that involves new legislation, believes now is the time to put the carriers through the “wringer,” scale down fixed charges, and to some degree substitute stocks for bonds. He intends to introduce a bill to this end.

Jones Asks Co-ordination

Jesse Jones, RFC Chairman, be-

lieves the problem “may best be solved by co-ordination of operations of roads occupying the same general section.” Chairman W. M. W. Splawn of the ICC leans to a consolidation plan. Experts of] the SEC have their own solutions. Railroad men want an opportunity to increase their rates to a point where the service they give will bring a price that will yield a profit. «+ Executives of leading railroads will meet here tomorrow to discuss their problem, preparatory to the White House meeting. They, or some of them, believe that the best formula for financial health of their industry was the one given? in the ICC's latest annual report, which said: “It will be generally agreed, not only that the railroads are constitutionally entitled to an opportunity to earn a reasonable return on the fair value of their carrier properties, but also 4hat it is imperative that they.be able, in general, to earn such a return under what may be called normal

conditions, if the system of private

ownership of railroads is to function at all satisfactorily.

perhaps not so generally, that if a reasonable return cannot be earned in times of depression, the railreads should have a somewhat core responding opportunity to earn more than a reasonable return in times of prosperity, so that the average

Eastman, who believes that a rate

may be fair.”

} a )

rarzsA BIG

MORE THAN EVE

R NOW IT PAYS TO ASK FOR

drab Or OTe hae

$f KENTUCKY STR Tots ;

NY 2% 3 URBON

£2

Carpenters, electricians and Planinrs, are rushing to complete the new Federal Building addition in time for dedication which has been set. tentatively

two miles north of Richlands, N. C.

“It will also be agreed, although}

for May 21.

Experts Called In Row About Baby's Weight

DETROIT, March 10 (U. P.)— They called in the experts today to settle for the record whether'Donald Lawler weighed 19 or © 12 pounds when he was born three days ago, but Donald just stretched to his full 24 inches and howled. The surprising young man startled medical circles when, just after his birth to Mrs. John C. Lawler in a rickety farmhouse Monday morning, he tipped the family chicken scales at 19 pounds. Since then he has registered 18 pounds on Dr. Carl S. Ratigan’s baby scale and 12 pounds on scales at Eloise Hospital.

The whole affair has caused so much confusion that a scheme is under way to put Donald on the most authoritative scales available in the state. Scale company representatives were called in to aid. Mrs. Lawler thought it was no wonder if Donald has lost weight, what with all the excitement and interruptions in his meals. But she was happy, because she had such a lusty. son and because her husband was back on the payroll at the Ford Motor Co. after an extended period of unemployment.

BOYS’ RIVALRY ENDS

PHILADELPHIA, M: March 10 (U. P.) —Edwin Yagle, 17, tobacco fac-

announced, to the fatal stabbing of a rival during a quarrel over the affections of a 16-year-old girl.

James Fleagel, 16, a Northeast High School student, died in Temple University hospital last night from an abdominal wound. Both youths had been courting Marie Millburn, 16, - police said. Yagle confessed stabbing Mr. Fleagel when the latter started a quarrel as Yagle left the Millburn home last night, authorities said.

'IN-DEATH, POLICE SAY

tory worker, confessed today, police |

Times Photo.

The first floor will house postal departments, while the second and top, fours will include Governmental agencies.

VICTIM OF ROBBERY: NAMES PROSECUTOR

ST. JOSEPH, Mo., Mach 10 (U. P.) —Justice .of the Peace Billy Wyatt instructed George Burge to point out that man in the courtroom who “beat you on the head with a blackjack and then robbed you of $180.” “There he is” said Burge, pointing. “I'm positive.” The complaining witness, however, had pointed at Assistant

Prosecutor Ernest Binnicker and not Glen Reid, the man on trial charged with robbery.

ALLOWANCE

for Your Old Mounting on

2.DIAMOND

iad i TT”

Less Trade-in for 5 Old Mounting peeeee ©

ALL YOU PAY

$12.50

All diamond mounting is “done on our own premises by diamond experts.

USE ROST'S BUDGET PLAN >

Our regular sidewall price on all papers is reduced when border is purchased,

REGULARLY 12 Sidewall ab bee. JT2 22 Border af dee. 66

3 12-01. cans—or—I| 40-01, can.

"Terre Hate, Store Hows;

22 Border at Jesus

10¢ PLASTICS —30" Wide When purchased in proportion with Bordotncinn.

WALL PAPER CLEANER

ROOM LOTS — Clearance Values Sidowall and border for averags size. rooms. 49c w

SAVE 43%

12 66

3ic _19¢

" Other Stores: 7 E. Sth St, | Andessaat’

{clude Emma Gosset, assoc

DEBATE TEAM IN|

MEET SATURDAY

Evelyn Kettner Na Named Head of Shortridge Daily . Echo Edition. ‘Shortridge High School debaters will oppose the Greentown squad

Saturday for the right to compete in the State Debating League finals

at North Manchester®next month. | : Lebanon or Frankfort wit be she |

site of this week's debate. =

The local team is composed of |

Arthur Northup and Richard Stark, negative, and Richard Morrish and Allan Vestal, affirmative.

Evelyn Kettner, Shortridge senfor, has been ‘chosen by faculty to edit the Monday edition of the Daily Echo, school publHcation.

Other Monday appointments ‘editor; Bill Stautz sports editbr, and Elinor Randall, feature editor.

Club Adds Members

Thirteen new members habe been admitted to the Shortridge German Club under. the direction of Miss Louise Reiter, faculty sponsor. They are: Lawrence Kohlmeye Charles Wilson, Frank Kendall, Charles Mueller, Elizabeth Ann Schmidt, Pauline Than, Lois Walker, Phyllis Maierson aed Dorothy Nichoalds. %

STRAW HATS REJECTED SPRINGFIELD, Mo. March 10

(U. P.).—Springfield mail carriers:

want ‘it understood they are no Beau Brummels who dress differently for each season. They voted down a proposal that they wear

straw hats and gray shirts during the summer. ,

fz £5 DOWNSTAIRS

Plenty of Excitement Here T. morrow!

, Sale! Spring Coats and Suits...

Regularly 10.98. . .+On Sale

Reefer coats, swag- _ gers, toppers ...in a perfect riot of. springtime colors « « « In checks and plaids!

Man - tailored suits with a world of zip! Greys, tans, navys, browns and mixtures. Sizes 12 to 20.

BACK AGAIN for Your Convanience.

People’s

MOONLIGHT SALE Friday Night 1 PM. to P.M.

‘MOON LIGHT SPECIAL Friday Night Only 7 to 9

UTILITY "CAB I N E I

62” High, 147 Wide, 1 11” Deep

45 DO WN 500 A WEEK

A dutable all-metal cabinet in green and ivory — Five useful . shelves—You will want one for . your Kitchen for storing dishes or for your bathroom for storing. _

MEN! Let Your Wife or Succtheart Help Select Your.

SPRING CLOTHING OUTFIT

FRIDAY NIGHT SHOES.