The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1914-04-13
SAYS THE RAILROADS SEEK
SYMPATHY IN RATE CASE
Continued From First Page.

cxiled them from the field of the in
weston.
This extraordinary campaign ma,
filled the newspapers with headlines
with dispatches, with letters and viii
editorials. Ii has taken possession uI
the magazines cut OF which week aftei
week issue appeals for justice To TN,
decadent railroads ami TO dcspondcut
railroad managers. AMI it gives din
ners and holds public hauuucts where
the eloquence of orators paints lurit
pictures of empty treasures of worm
out tracks of falling bridges and ie-
lupidated equipment"
Refers TO Retrenehment.
Senator Cummins quoted from sew
oral magazine and newspaper stor-
les giving accounts Of how different
railroads had been forced 10 discharge
large numbers Of employees and re-
trench i'm their expenditures.
Il do not assert that the campaign
is being carried on 10 affect the COM
mission" he continued. for the rail-
road companies know that il cannot be
sWerved "A hairs breadth from the path
of its duty. but / do assert that the
movers Of this compaign are trying TO
do an infinitely more objectionable
thing They are irving to mislead
and perVert the Judgment OF the peo-
pie. They are trying tc awaken sym
pathy 10y false pretenses. They are
trying To deceive the country with
exaggerated cries Of suffering and dis
trcss in order To escape the control
which experience has demonstrated
should be imposed upon all corpora
tions which undertake a public serv-
ice"
The senator denied that the people
Of the United states are hostile to
the railroads and said that every one
desired that all railroads be well con-
structed and well operated. He did
not doubt that there were some rates
which should De increased and some
which should be decreased
Senator Cummins recalled that sub
stantially all the railroad rates now
prevailing We're made by the rail-
road themselves and .dded that i'm his
opinion nincty-five per cent of the
freight revenues of the railroads ara
derived from Interstate freight rates
made and p ublishcd without any in
reference upon the part of the gov
eminent He added that he believed
that the physical condition of the rail
roads is better now than ever before
in their history.
Admits Severe Depress
1T follows, of course" he went on.
that the railroad property devoted to
the public service is more valuable ut
this moment than at any other mo-
inent since railroads began. We ought
to understand that we are dealing with
the most perfect end complete RAFT
road system that this world has ever
seen. prepared to render more and
better service than il has ever rem
dcrcd before, and al the declarations
about railroads passing into decay and
becoming unsafe or insufficient is the
rankest, baldest nonsense.
raoads are now experiencing some
what severe depression. the volume
OF traffic is greatly diminished, as COM
pared with that two or three years
ago. The depression began with the
first of October last and has grown
more serious with each month since
that time. 1t is sufficient to say that
for some reason people are not buy.
ing as much as they did; manufacture
ers are not producing as much as they
did, ard consequently there is not
much to haul from one part of the
country to another. hope anC | may
add that il is my belief that thes,
conditions will bc temper
AIRY and that speedily business will
resume it's normal condition"
Senator Cummins said that othc?
industries are suffering as well as the
railroads, and this passing nuctuation
in trade cannot be given rs a reason
why railroad rates should be incrcas-
ed.
Gives Railroad Revenues.
He then took up what rate of re
turn on an investment is generally |
as fair.
Tie said that between 1890 and 1909
representative government bonds paid
an average return of between 2.I3 ana
2.52 per cent i'm the United States be- |
tween 2.SS and 800 in Great Britain.
and between 3.45 and 3.24 in Germany |
Typical railroad bonds i'm 1909. he !
said, paid an average of from 3.S7 t.
ala on the Investment.
Discussing the net revenues of the
railroads the senator said they
to $32S,j67192 in 1880 and
$Sli,33l,Si2 in 1913, a net increase of
1880 per cent over 1890 He added
that the railroads have earned enough
to pay seven per cent upon all their
capital stock, but generally pay no
moro than five per cent.
1t is almost unbelievable that in
the face of these facts" he went ON |
intelliscnt men will continue TO de. |
nouncc the attitude of the govern. |
mcnt toward the railroads as hostile |
or unjust"
He concluded by reading tables |
showing the quotations OF railroad !
stocks I'm recent years to demonstrate,
that railroad StoCks fran, ISae O., tot 4