Medicine for the New Haven

A complex prescription to cure the ailing New Haven Railroad--and other money-losing roads as well--was drafted last week for the Interstate Commerce Commission. Written by ICC Commissioner Charles A. Webb and Hearing Examiner Richard S. Ries, the prescription is aimed at curing the New Haven's steadily rising deficit (expected to hit $14.4 million this year), but some of its ingredients are bound to leave a bad taste in the mouth of everyone from New Haven President George Alpert to the extra engineer who goes along for a free ride on diesel runs.

Certain to be adopted by ICC unless the New Haven protests (an unlikely possibility), the report urges "a larger and more direct Federal role" in the problems of urban mass transportation. As a first step, the report recommended that New Haven fares should be raised 20% to 30% to make the price of the ride "more commensurate with the cost," but it also insisted that the passenger should get more service for his money. Congress should be asked for legislation to enable all railroads to acquire new passenger equipment under more liberal terms. "We recognize that the public should not pay increased fares to continue to ride in dirty cars," said the report. "Public satisfaction is a priceless asset, and one which the New Haven has not enjoyed for many years."

Follies of Management. While the report came out flatly against the Government subsidy sought by Alpert, it also took a strong stand for tax relief. It suggested that 1) the 10% federal excise tax on fares be repealed, 2) the Federal Government should amend its tax laws to encourage states to give tax relief to the railroads, and 3) ICC should be empowered to rule unlawful any state's taxes on deficit-racked roads when they are excessive compared with those levied by other states (New York State taxes on the New Haven amount to $17,318 a mile v. Connecticut's $1,668 a mile).

The report also hit the "follies" of past New Haven management, said that instead of halting the road's decline, the road's present management has met competition "by an indulgence in loud complaint and self-pity. "The investigators also gave the back of their hand to the "shortsightedness" of the New Haven's employees, warned them that they "have no right to indulge in featherbedding.

Happier Mood. The recommendations got quick action in one field. The New York Public Service Commission, which had previously refused the New Haven a 10% commuter fare rise already granted by three other states, changed its mind and approved the increases. So confident was President Alpert that tax relief now would be "forthcoming early in 1961" that he grandly ordered the road's car-washing and cleaning program, long since cut to a minimum, to be speeded up immediately to put passengers in a happier mood.

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