THE NEW ENGLAND SWITCHYARD

Once more the Interstate Commerce Commission has taken up an unjust situation and helped the minority for the good of the country. Since New England is thickly settled it must obtain many staples and most of its raw materials from other states; and it must depend on the railroads to bring them. In spite of their great importance these roads have been in a precarious financial condition for some time. All the roads of the country have had hard sledding recently, but there are three difficulties peculiar to those of New England.

A large part of the railroad receipts is obtained from freight traffic, the best paying freight is that hauled for long distances in long trains requiring no re-switching. But the profits on all railroads are dependent on what fuel costs them. So those railroads having coal beds on their own lines are manifestly at a distinct advantage over those who must obtain their coal from a distance. Freight profits are dependent in part also on running full trains in both directions and avoiding as far as possible the costly "strings of empties."

It so happens that all three of these factors operate to the disadvantage of the New England roads. No road in New England has a haul of more than 200 miles; and most of the freight handled in New England is not from terminal to terminal, but to local points along the various lines. The trains must be made up again at almost every junction and long through freight is unknown. New England is really only a gigantic switchyard.

The fuel cost, too, weighs heavily against New England lines. All the coal must be brought in from outside; and with the advanced freight rates the coal costs have mounted immensely, but wholly to the advantage of the large railroads in whose territory most of the coal lies.

These same "long haul" roads receive all the advantage in the carrying of empties. The New England lines must bring most cars back to one or two junctions to return them westward whether empty or full. But the western roads may send them by any one of several routes to suit the demands of the shippers.

The division of freight receipts in the past has been made wholly without regard for these factors, and the New England roads have had to stand the less. But Tuesday's decision of the Interstate Commerce Commission which allots a 15 percent increased over past receipts to the New England roads in future divisions, will increase their earnings about $7,500,000 annually. Although this does not settle New England's railroad problem, it should materially help the bankrupt lines.