RAILWAYS’ GRAVE PLIGHT

Poverty Bay Herald, Volume LV, Issue 17640, 2 December 1931, Page 10

RAILWAYS’ GRAVE PLIGHT

FEARS OF STRIKE IN U.S. PLEA FOR HIGHER RATES FAILS NEW YORK. Oct. 21. The refusal of the Inter-State Commerce Commission to permit the Amciican railways to increase their rates by 15 per cent, arouses grave fears of impending railway wage reductions, am) possihlv nation-wide strikes. The railways’ plan, if granted, would, f ,it is estimated, have yielded an additional £100.000.000 annually, or sufficient to guard the carriers against a further dangerous depreciation in their shares and bonds. The latter are already at a low level, owing to the effects of the general industrial depression and the competition of omnibus, lorry, and water carriers.

An alternative plan suggested hy the commission would permit specific increases for the transportation of certain commodities which are > estimated to bring in additional annual revenues of £20.000.000 t-> £25.000.000.

This money would be pooled under the nlan and used to assist railways which fail to earn their interest charges. Economists declare that the plan betokens a distinct betterment of the outlook for tho future because it would tiring aid where it was most needed. Tho" larger railways, however, would receive no direct benefit, and it is doubtful whether the plan will be accepted.

The commission devoted much of its report to a. general condemnation of the wasteful practice and uncorrecterl inefficiencies of the railway directors.

Wall Street showed its ' disappointment over the decision by moderately heavy stdcli offerings at the opening, with declines of two to six points in rails.