Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1915-01-20

granted some days ago by the Inter
State Commerce Commission to GER
tain eastern railroads has very much
strengthened the plea of the western
lines for an increase in rates is adj
mitted upon every hand. If the east
ern lines, where there is greater
density of tonnage naturally are en-
titled to such an advance-how
much more are the western lines en-
titled to it?
In contemplating the crisis which
confronts the railroads at the pres
ent time, and which was briefly ex-
| planned in last weeks article, it is
| important for the reader to realize
that the railroads and the public
| face each other under radically
changed conditions today from those
which prevailed few years ago. The
abuses and scandals which have been
aired before the Interstate Com
merce Commission during recent
months We're perpetrated for the
most part under the old regime of
a dozen or so years ago, and can
never be repeated under the condi-
tions which now prevail. On the one
hand, the Interstate Commerce Com
mission and the different states, eth
err through their Public Utility Com
missions, Legislatures or Railway
Commissions say what rates the rail
roads shall charge for service. In
addition to this, proposal is now
pending in Congress to give the gov
eminent the right to investigate all
new inters ate securities before they
can be placed upon the market, while
similar authority is already being eX-
ercised within the states by the diff
ferent public service commissions.
This means that the last vestige Of
control over their finances will have
been taken away from the railroads
and that henceforth their fate will
lie absolutely in the hollow of the
PEOPLES hands. In this connection,
we wish to again remind the reader
that the hundreds of honest railroad
officials throughout the country
men who have managed their prop
critics without a breath Of scandal
or public criticism-should not be
condemned because of the misdeeds
of the few. With an aroused public
conscience on the one hand and
scores of railroad officials through
out the country sincerely and active
ly cooperating with the different
public authorities on the other, we
can safely let by-gones be by-gones--
wipe the slate. and with square
deal for the people, the investor and
the railroads alike, start over
again.
Where Railroad Receipts Go.
In order, that the reader may real
ize what a tremendous factor the
railroads are in the everyday bust
ness life of the nation and what they
mean to its prosperity. we wish 70
analyze briefly what becomes OF an
average years railroad income. JUS
as the idea has prevailed In the
minds of many that the railroads are
owned by a few rich men, so the
thought has also found deep root
that they collect millions of dollars
from the public which go into the
Golfers of a handful of millionaires,
and which are permanently with
drawn from the thrift and industry
of the people.
At the close of the fiscal year end
ing June 30, 1913, the records at
Washington show that the railroads
of the United States had collected a
gross income from all branches or
their service amounting to SO, 49,
929,31S. OF this sum, 81 $780,
$50 was paid out for labor-cr, to
put it in another way, almost 5oc
out of every dollar they took III was
Immediately paid out to the hun
dreds of thousands Of men AMI wo-
men whom they employ in the con-
duet of their business. For main
tenance of way, equipment, depots,
etc, they disbursed 1929, 167, f9l---
or almost another thousand million
doilars-and in this vast item the
reader can grasp what railroad pros
perity means to the great steel mills,
the lumber and coal industry the Big
car and locomotive building con-
Germs, and other sources OF railroad
supplies. In taxes they paid out the
enormous sum of $12S,O32,S22,
which helped to maintain the pub
lie schools, public highways and 9TH
er revenue expenses OF every state,
county and incorporated town and
city in the country. After paying
their operating expenses. the inter-
est on their funded debt and divi-
dends on their stock, which averaged
only 4.2S per cent, the railroads had
left in 1913 a balance OF $1S3.7OS,-
547 with which to make improve
ments and to use rs a surplus fund
for emergencies of one kind and an
other. In other words. after the
railroads got through paying for
their labor, steel, coal, lumser, inter
est, dividends and other necessary
expenses the above SlS3, 100000
was all the surplus they had left for
themselves out of an income OF more
than three billion dollars and this,
too, upon properties worth the g'-
gantic sum of twenty billion dollars.
Furthermore, the lions share OF this
surplus was earned by the stronger
roads, while such splendid but weak
err lines as the Wabash didn't earn
enough to pay interest on its rece;V-
ers certificates. Thus it can be seen
that on the basis of the present rates
the railroads pay back to the pubic
in one way and another almost every
dollar they receive for the services
they render to the people
Burning Candle at Both Ends.
AS a matter of fact, II every rail
road in the country had charged OIL