Evening star., 1914-04-13
Senator Cummins Says Effort
Is Made to Arouse Sympathy
for Rate Increase.
is CERTAIN COMMISSION
WILL NOT BE INFLUENCED
Speaks in Senate and Declares Rail
roads Themselves Made
Existing Tariffs.

Senator Cummins charged on the floor
of the Senate today that a persistent
and Widespread campaign was being
conducted to arouse public sympathy for
the request for q > per cent increase in
freight rates on eastern railroads, nov
pending before the Interstate commerce
commission The senator expressed con
fdence that the commission would de-
eide the question on its merits. but said
the public was being misled by lncor-
rect and exaggerated statements.
Senator CUMMING compared the rail
road situation with the Panama canal
tolls question, declaring that an ad-
vance in railroad rates of per cent
will amount in one year 10 more than
all the tolls paid by all the ships that
will go through the canal in twelve or
fifteen years. and more than American
coastwise ships. if they paid full tolls.
would be charged in half century.
"In connection with the proceedings
before the commission he continued,
hensive. energetic and persistent cam
paign that / have ever witnessed TO
make the people of the country believe
that the effort of the government to
railway practices has resulted in dismal,
disastrous failure; that the government
in its endeavor to protect the people has
Impoverished the transportation COM
panies; that it has destroyed their credit
and rendered them incapable of per
forming the service which commerce
demands: that it has outlawed them
from the confidence of capital and exiled
them from the field of the investor.
Has Filled Newspapers, He Says.
This extraordinary campaign has filed
the newspapers with headlines, with dis
patches, with letters and with editorials.
1t has taken possession of the maga-
zines out of which week after week issue
appeals for justice to the decadent rail-
roads and to respondent railroad man.
ayers, and it gives dinners and holds
public banquets where the eloquence of
orators paints lurid pictures of empty
treasures, of worn-out tracks. of falling
bridges and dilapidated equipment
Senator Cummins quoted from several
magazine and newspaper stories giving
accounts of how different railroads had
been forced to discharge large numbers
of employees and retrench in their eX-
penditures.
u do not assert that the campaign
is being carried on to affect the commits
sion" he continued for the railroad
swerved a hairs breadth from the path
of its duty. but | do assert that the
movers OF this campaign are trying to
do an infinitely more Objectionable thing.
They are trying to mislead and pervert
the Judgment Of the people. They are
trying to awaken sympathy by false pre-
lenses. They are trying to deceive the
country with exaggerated cries of suffer
ing and distress in order to escape the
control which experience has demon
strated should be imposed upon all cor
porations which undertake public serv-
ice.
Not Hostile to Railroads.
The senator denied that the people of
the United States are hostile to the
railroads. and said that every one de-
sired that all railroads be well construct
ed and well operated. He did not doubt
that there were some rates which should
be increased, and some which should be
decreased.
Senator Cummins recalled that substan-
TALLY all the railroad rates now pre-
vailing were made by the railroads them
selves. and added that in his opinion %
per cent Of the freight revenues of the
railroads are derived from interstate
freight rates made and published without
any interference upon the part of the
government. He added that he believed
that the physical condition of the rail-
roads is better now than ever before in
their history.
1T follows, of course he went on,
that the railroad property devoted to
the public service is more valuable at
this moment than at any other moment
since railroads began We ought to un-
derstand that We are dealing with the
most perfect and complete railroad sys-
tenn that this world has ever seen, pre-
pared to render more and better service
than it has ever rendered before, and all
the declamations about railroads passing
into decay and becoming unsafe or in
sufficient is the rankest, baldest nom
sense.
Thinks Conditions Only Temporary.
1T Is beyond doubt that the railroads
are now experiencing a somewhat severe
depression. the volume of traffic is great
ly diminished, as compared 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; manufacturers
are not producing as much as they did
and consequently there Is not much to
haul from one part Of the country to an
other. l hope and l may add that 1t is
my belief that these distressing condi-
tons will be temporary and that speed
lily business will resume its normal con-
ditions.'
Senator Cummins said that other in
dustries are suffering as we'll as the rail
roads, and this passing fiuctuation i'll
trade cannot be given as a reason why
railroad rates should be increased.
He said that between 1880 and 1903
representative government bonds paid an
average return Of between 2.43 and 2.52
per cent in the United States. between
2.Ss and 2.9S in Great Britain and be-
tween 3.45 and 3.24 in Germany. Typical
railroad bonds in 1909. he said paid an
average of from 3.S7 to 4.14 ON the in
veStment.
Net Revenue of Railroads.
Discussing the net revenues Of the rail-
roads. the senator said they amounted
to s32s J76 1872 in 1890 and $S14. .331 s42 in
1912, a net increase of 1870 per cent
over 1890 He added that the railroads
upon all their capital stock. but gener-
ally pay no more than per cent.
1T is almost unbelievable that in the
face of these facts" he went on. intel
igeut men will continue TO denounce the
attitude of the government toward the
railroads as hostile or unjust
He concluded by reading tables show
ing the quotations of railroad stocks in
recent years to demonstrate that railroad
stocks from 1896 to 1914 not only were
higher but steadier than the industrial
stocks or any other securities.