The Washington herald., 1917-11-08
RAIL Rates up;
U. S. BENEFITS
Holland Shows Strange
Conditions Existing in
War Times.

some OF lIc eAlBenCleS OGCdSlOneQ
by the war are creating curious and
almost paradoxicaS conditions. For
Instance. when the . mpaign for elec-
ton Of mayor in New York City was
at its height last week and an especi-
ally vigorous campaign against the
candidate of the Socialist party un-
derway, the New York State food
commission. recently created, gave
permission to the city to begin a fea-
tUre OF Socialism OF the kind which
has been strongly advocated by some
of the ablest members of the Socialist
party as, for instance, Charles Ed
ward Russell.
1t so happens that Mr.. Russell, who
vas twice the candidate of the Social
list party for governor of New York
State and four years its candidate for
mayor OF New York City, did not
identify himself with the campaign
made by the Socialists this fall, but
instead supported the nonpartisan
ticket chiefly because it reflected, as
he thought, the best ideals Of Ameri-
CaniSm in these days of war.
The State food commission had the
authority and used it to permit the
city of New York to draw upon pub
lie funds with which to buy and also
TO market food. In normal times
were a city authorized to use public
funds to buy food, to store it and to
become. as was said, the butcher, the
baker, and the coal man for every
one of the citizens. that would be re-
Earded as in perfect line with the
ideals Of the Socialists.
Done In Food Emergency.
.
ure that this permission to use pub
lie funds of New York City to buy
food was given. 1t was an effort TO
aid in overcoming the food emergency.
Its purpose was to assist New York
city in aiding the government in con-
serving the food supply and for that
reason it reflected nothing more than
some of the exigencies which have
been occasicned by the war and which
compelled the adoption of measures
which in normal times would not have
been thought of.
Then again a statement was made
by Il highly competent authority oI
November ]. that the railroads of the
United States would be SIS. 600 co.
short in their net earnings or income
in the present calendar year. The gov
CTnment has leen utilizing the rail-
roads to an enormous extent and
tTaHSr rortatiOn Of commodities as well
Is soldiers has reached the highest
peak ever known in the history of
cur railroad.
Ga course the CrCss earnings have
LC-n very large, but or account Of
C-s-F.-C rJmary eN?t racS net earnings
e. We fallen of 50 that the Inter-
80 Ccr'u-rCe Commission was in
foTEeI Cn November that there
Ju.l be an aggregate decrease in
tfc Hc. income o. the railroads Of
-. goo in 1871. es conn arcd with
tn 20 earnings in the previous year.
.,csc- thC!ess. cUEiouSIy enough, the
.J.-ri.-~-Cat itself through the lower
-s-- L-a BY a statutory enactment
lily decreased the rates chIrgcu
..l. T-.'rs.:d t'aE:sIJfsa tfon, the IN
--.c t--.ruinE On The very day this
o.c vGs made. Not one penny
o.. .-. increase will be to the ad-
a. G. the railroads. Every cent
i, Iii - il.O TIE Fe.,egal Treas
- e. Tash!agsoa. Every person
o. - L-Irht \ TG-!rO-d ticket was
.'s.. CO! q tin rat" OF : per cent more
-. * tn nc wOIId have had to pIy
he d@y tCfore.
Oi course this Is taXo Gon, but it
does s,s:I to many ;ulSOus that if
'he government. through IL" tax laws,
Is able 10 increase the rates for rail-
road transportation ard TO receive
jhat increase as q C.nI' button to the
Federal Treasury in tnr form Cf taxes,
then the government authorities
should in f1.FTC.s provide TOR an e4l'E
increase of rates the advantage Of
which Will go to the railroad rom-
pany.
Furthermore the inCr"ls" sUoulG IH
so great as TO max. it possible to lC-
port in he y-ar is that there aaG
been a fliiing off II tn net e1Inings
of the railroads OF 4 q G9"trr CT a O..-
lion dollars; instead it should be pos
sible to report that instead os loss the
railroads have Gai~ed in net earn
ings. Transportation is the only in
dustry IN the United States ' hiCh
has not gained il me- earnings n re-
cent year.
Although the mOney advances to thu
allies mad? to England by the Treas-
ury Department a few GAYS ago was
in the aggregate Si3j, q. %. yet there
must be n larger a;lyan2e than this II
the Treasury Department is 10 equal
Or-surpass the bankers loan male 10
Great Britain and Erau-a in the fall
of 1915. IRE aggrc.s~t t. Of that iGaE
was $4,000. COO. 1t wa undcrwrltten
by the American banks and was
speedily absorbed
Backed by Ample Security.
There was no greater security be-
hind it than is the security behind
liberty bOnd-namely, the faith