Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-04-10
Ignorant Mr.. Thorne."


The contentious of Mr.. Thorne. a
recognized expert, have been de-
nounced by the special privilege press
as economic twaddle." He has been
pictured as half baked populist from
the west, upon whose useless theor-
les" the commission was wasting
time. Let us examine some of his
twaddle President Smith, Of the New
Of crisis" Is on the stand, Mr.. Thorne
report runs thus:
@. Can you name one year, prior to
1918, aside from 1910, when your net
was in 1913? A. No.
4. Can you name one year Wnen
your net corporate income, above all
fixed charges and all operating ex-
penses, was as great as in 1918. aside
from the single year 1910? A. No.
@. Is your net operating revenue
average during the past five years
higher or lower than the average for
the preceding five years? A. s72.000.-
600 in the latter period compared to
s55,0oo.Ooo in the preceding period.
@. Was your net corporate income
in 1913 greater or less than the aver
age for either one of these fve-year
periods? A. 1t was greater.
President Rea. of the Pennsylvania.
Jared somewhat better, but the "twad
die" Of the man from Iowa forced him
to admit that the company in 1918
earned 9.e4 per cent upon It's capital,
after payment OF all operating ex-
penses, taxes and fixed charges; and
when asked how much higher he
thought 1t ought to be in order to dis
sipate the crisis" he declined to esti-
mate. Furthermore. Mr.. Rea argued
that the road should be allowed to pay
dividends not only upon capital but
upon the unearned increment OF real
estate. terminals and rights of way.
Vice President Shriver, of the Bal
timore and Ohio. is sure the railroads
are sunk in poverty. but this is what
the ignorant Mr.. Thorne did to him:
O. ask you if. during the five-year
period ending 1913, the railroads do
not show a greater prosperity than in
the five year period ending 1908? A.
They do.
O. And you admit that the year 1913
shows a better average than any 9TH
er year. except 1s1O-better than the
average Of either of the two fave-year
periods? A. Yes.
Here the railroad case apparently Is
wrecked. The year 1910, on which they
based their former demand for In
creased rates, was the most prosper
Gus in their history. And now 1t Is
admitted that 1913. the year selected
for their second attempt. was the most
prosperous in the last ten years, with
the exception Of 1910.
The question to be decided Is wheth-
er the companies need more revenues.
If the commission finds that they have
not proved such need, the demand falls.
If it decides otherwise. then the rem
edy lies between granting the increase
asked or abolishing the wasteful and
indefensible system Of special allow
iances and free services which diverts
millions Of dollars annually from the
railroads treasures.
Readers of privilege-servin newspa-
pers cannot properly form judgment
upon the issue, because they DO not
know what the actual conditions are,
as learned by the commission. They
imagine the question is one to be de-
citied arbitrarily upon the mere
strength Of the railroad plea and OF the
manufactured sentiment behind 1t. But
the truth now is exactly as we stated
! It in these columns on Nov. 26 last:
This is not a matter which can be
settled between the railroads and
| trades organizations, nor by obtaining
the consent Of an easy-going public. II
will be determined upon incontroverti-
BILE facts laid before the interstate
commerce commission.
If the railroads provide proof that
with efficient, economical management
and upon anything approximating hon
est capitalization. they are emitted to
increased rates, whether of or 10 OF
Is per cent, they will receive the de-
sired authority.
If, on the other hand. they are not
better equipped with convinhing facts
showing the need for higher rates tnah
they were two years ago, all their ell
forts to influence public sentiment VII
be futile.