The Leon reporter. (Leon, Iowa) 1887-1930, 1915-01-28

road has just as muCl FlSuL 10 oApcC'
la fair return upon the money 1t has
Invested in a branch line as upon that
(which it has invested in it's main lines
(which is largely supported by inter
Estate business-and when existing
lrates render this impossible, it means
THAT it cannot give to the people the
adequate and efficient service SO nee
essary to agricultural and CONNER,
lcial growth and development. No, 9TH
Ter central state is so we'll supplied
with railroad facilities as is Iowa
there being few points in the state
which are more than a dozen miles
lrsmoved from steam road facilities
lend that It IL of the highest inipor'
ltance to the people that this net work
!of railroads be given sufficient in
leone so they may be maintained in a
Thigh state of efficiency should be ap-
parent to every thinking man.
| AS to whether the railroads OF
Iowa are justified in asking for some
Substantial increase in freight and
messenger rates, we wish to cite the
Irecent decision of the Interstate
lCommerce Commission in granting a
5 per cent increase in freight rates to
|eastern lines-a fact with which the
lreader is doubtless already familiar
lin rendering this decision, the Com
mission took occasion to point out
1.-The precarious financial conditions
which have been brought about by
1.-THE great foreign war, and which
Ihave added enormously to the former
TROUBLES of American railroads. So,
too, the Commission pointed out the
unremunerative passenger incomes
which obtain almost upon every
hand, and especially upon the local
traffic within the different states. II
| the Commission was correct in its
view that the eastern lines were en-
Titled to an increase of per cent in
freight rates-and the decision has
been applauded in business circles
Throughout the nation-then how
Imuch more are the western lines en-
Titled to an increase? The population
lper square mile of Massachusetts, Is
l441, Of New York 204, of Pennsyl-
|vania 181, of Ohio 1872, while in Iowa
lit is only 40. In view of these facts,
lean there be any doubt of the justice
|of the plea made by the railroads OF
Iowa at this time.
NEW YORK AND PENNSYLVANIA.
Four years ago, as Governor of
New York, Justice Hughes of the
United State Supreme Court, vetoed
a two-cent passenger rate law enact
led by the legislature on the ground
THAT it was an arbitrary procedure
which did not take into consideration
a fair return upon the railroad prop
Ierties of that state-and few men
Island higher in the esteem of the
American people than this great jur-
other one man in the country to
|break up illegal and unfair practices
lon the part of large corporations.
| So, too, the Supreme Court OF
Pennsylvania held that a two-cent
passenger fare was unconstitutional
lin that state because it was essential
lily confiscatory. This high court
took the position that capital invest
ed in railroads is entitled to earn
six per cent on a fair capitalization
and that the arbitrary enactment of a
two-cent fare rendered impossible
such a return upon the lines in Penn
sylvania. 1t also took the position
that railroads not only have the right
to insist upon a fair return upon both
local freight and passenger business,
but that it is their duty to do so in
order that one class of patrons may
not be compelled to pay an inequit-
able rate to make up the losses sus-
ltained in another department.
If the arbitrary enactment of a
ltwo-cent passenger rate is unfair to
1.-THE railroads of New York and Penn
sylvania, where there are large CEN
ters of population and where the ma
tion's greatest density of freight tom
mage naturally exists, how much
I more unfair is such rate in pure
lily agricultural state like Iowa?
AS a result of the action of Cover
nor Hughes in vetoing a two-cent
passenger fare bill, in New York and
1.-THE Supreme Court of Pennsylvania
Ideclaring it confiscatory in that state,
1.-THE railroads of both New York and
Pennsylvania are today operating UNI
der two and one-half cent passen-
ger fare, while in Iowa they are COM
PEELED to content themselves with
1.-TWO cents per mile. In the meantime,
lin further confirmation of the DOpu-