The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1914-10-20
THE RAILROAD.
BY Hon. James A. Hughes of
West Virginia fts

one or the most conspicuous eX-
amples of destroying property under
the pretense of regulating II by gov.
eminent officials is to be found in the
railroad situation. Nearly all the
States have commissions created by
the legislatures, which are given
power to regulate railway operations
within the State. Likewise the Con-
gress has created the Interstate Com
merce Commission, and given 1t au-
thority over all railroads operating
their trains from one State to anoth.
er. Within their respective jurisdic.
tions these commissions fix the
amounts which the carriers can
charge for carrying freight and pas.
sengers They have absolute control
or what is equivalent to 1t, over
the earnings of the railroads. These
commissions have the lawful author
ity to reduce the railway earnings to
any point, short of actual confsca-
ton of property. The courts can stop
the commissions from lowering the
rates to such a point that 1t would
amount to confscation. The courts
are filed with suits to prevent the
commissions from reducing the rates
to a point Of confiscation. The dispo.
sition OF these commissioners Is to
compel the railroads to serve the
public for nothing. OF course, the
most forceful attack that can be
made upon the railroads is to take
from them their earning power by
lowering their rates. .aa,s
Effect Of Hostility to Railways
The necessary and inevitable result
of avowed hostility TO railways by the
State and National commissions Is
shown by the "a deceased earnings,
(2) the destruction of railway values,
go the loss to labor, and "a gener-
al business depression.
First. For the fiscal year ending
June 80, 1914, 20 of the leading rail
roads OF the United States earned
$37 1898 900 less than they did the
preceding year. Another group of
eleven roads earned for the year end
ing June, 1914, $4O,462,O00 less than
they did in 1913. These figures
we're compiled by the Times ANIMAL
list, August 10 and August 3. 1914.
The same measure of loss Is charac-
teristic of the railroads generally as
very few of them show increased
earnings. The commissions have
taken from the railroads In one year
about $3.50, 100000 by squeezing down
existing rates and refusing advances.
Second. To reduce the earnings
in one year by such enormous sums
has had the effect to decrease the
value of the railroads to an extent
exceeding $4,000 100000. The people
who owned the railroad stocks when
Mr.. Wilson was inaugurated have
lost this vast sum of money as COM
pletely as II it had been thrown in
the fire and burned. The majority
of railway stockholders are people
of small means, comparatively, and
This colossal loss falls mainly upon
people who are least able to bear IL.
II Is a great mistake to assume that
the railroads are owned by the rich,
While they are controlled In their
management by wealthy men, the
actual ownership is in the hands oil
hundreds of thousands of people In
very moderate circumstances.
Third. The destruction OF so
great a sum from railway earnings
has operated to bankrupt many rail
way companies and to lessen the
working force, decreasing their abil-
ity to purchase materials and install
improvements and extensions, all OF
which has reduced the demand for la
Dor and caused decreasing employ
ments. Directly and indirectly, the
loss TO labor, through all its ramih-
cations, is incalculable.
Fourth. OF course, taking this
much money out OF the industries OF
the country must have a tendency to
increase the business depression that
is now so keenly felt in every held
of industrial enterprise. Every blow
that Is aimed at the railroads OF the
country, that will decrease their pow
er to serve all the public, including
their own stockholders, in the most
efficient manner, must fall upon the
public who use the railroads.
The action of the Interstate Com
merce Commission on the application
of the various interstate railways 10
increase their rates per cent was
fit example of the lack OF pracucai
knowledge to deal with SUCH impor'
,ant nua,tiona i. ~ A fter MANY months