Although Pennsylvania with its heavy coal and iron industries originates upwards of 20% of U. S. railroad traffic, not for the first 45 years that the Interstate Commerce Commission was in action did it have a Pennsylvania member. In 1933 President Roosevelt remedied this state of affairs and did his political ally. Senator Joseph F. Guffey of Pennsylvania, a favor by giving an I. C. C. berth to Senator Guffey's brother-in-law Carroll Miller. Mr. Miller, a lanky six-footer whose lantern jaw, stooped shoulders and pince-nez make him look like a schoolmaster and whose extraordinary drawl and dry wit sometimes make him sound like a Will Rogers type hayseed, hails from Richmond, Va., has spent most of his 62 years running utilities in the U. S. and Japan. Since marrying Mary Emma Guffey in 1902, he has made Pittsburgh his headquarters, is currently president of Thermatomic Corp., has a 245-acre farm at Slippery Rock.
Carroll Miller's experience had given him practically no knowledge of railroads, and railroad men therefore considered him the weakest I. C. C. member. Today they give him credit for being serious and hard-working and since he is now I. C. C. chairman (by virtue of annual rotation of that office) they listened with attention last week when he rose to speak in Salt Lake City's Hotel Utah before 350 delegates to the 49th annual convention of the National Association of Railroad and Utilities Commissioners. "The logical solution of the railroad difficulties," he drawled, "seems to be one national railroad system. Such a system should result in a simple rate structure, no differently rated territories, uniform tariff classifications, transportation wastes reduced to a minimum, and many other manifest benefits. . . ." More significant were other remarks by Chairman Miller on the matter of railroad freight rates. Without particularizing, he declared that the I. C. C. is conducting an intensive study of the rate problem and that he himself favors a new system based solely on costs of operation instead of the present system of what the traffic will bear.
Thus brought to the fore was the most ominous U. S. railroad situation since government operation during the War. Railroad men generally believe that it is impossible to rearrange the rate schedule on the basis solely of operation costs because these vary strikingly in different territories. And some railroaders assert that the traffic may not be willing to bear a sizable rate rise. In any case, as a whole the U. S. railroads are desperately in need of more net income, although last year, after deduction of $500,000,000 fixed charges it amounted to $164,0130,000, a gain of 200% over 1935. This was due largely to a 15% rise in freight traffic. Assuming that this rate of increase would continue, the I.C.C. on January i discontinued the emergency freight rates which had produced about $120,000,000 a year revenue. By last week, however, it was readily apparent that the rate of increase in earnings had not continued and the roads were facing a number of huge increases in operating costs.