The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-10-31

| FARM BODY IS
| AGAINST new
| RAILROAD Law
Higher Freight Rates Under Priyat.
Ownership Plan of Cummins Bill.
A note of warning against thu
pending Cummins bill maintaining tn.
private ownership of railroads and {
call to action to the people of tn.
nation has been sent out by thu
farmers national committee on trans
portation of the Farmers Nationa
Council in Washington.
With every STROKE of legislation
this bill becomes more vicious. Sat.
urday an amendment was passed pro.
viding for heavy fines and imprison.
ments for striking on the railroads
owned by corporations. The private
interests are being safeguarded in
every way possible and it is now con
coded that freight rates will be raised
considerably.
The appeal of the Farmers Ma
tional Council follows:
"The financial interests of America
have never lost sight of the main
chance during the war. They are de-
termined that the railroads must be
returned to their present owners un-
der as favorable conditions as pos
sible, and that the ships constructed
with the taxpayers money are to be
turned over to private concerns to
make them huge profits.
CUMMIN'S BILL FAVORITE
Senator Cummin's bill for the re-
turn of the railroads seems to be the
favorite bill now and it is asserted
at the Iapitol that it will be passed
within few weeks. This is in the
face of the long record of stock job
bing and stock watering, and finan-
cial manipulation which brought the
railroads to financial straits before
the war; and in spite of the continued
efforts of the owners during the war
to discredit government ownership
through inefficient management and
waste. Congressman Huddleston
resolution for congressional investi-
cation of the practices of the rail-
roads still sleeps in Rules Commit
tee, six weeks after its introduction.
Wall Street has decreed that the
roads are to be returned with a big
government guarantee, and under as
favorable conditions for future mani
pulations as can be gotten through
Congress. Under the terms of the
railroad control act the roads were to
be returned within twenty-one months
following the conclusion of the war,
but owners of railroad stock do not
want them returned under the con-
ditions preceding government con-
troll.
Restores Wastefui Competition
"The Cummins bill provides for di-
vision of the railroads into twenty to
thilty-five systems which are to be
all the, railroads to be
by railroad transpor-
tation board of five members to be
appointed by the President. One chief
breakdown, under private ownership
was lack of credit due to financial
The Cummins bill by
the principle of competition
prevents the economies which are es-
sential, and which made it impossible
Tor the railroads privately owned to
get in strong financial conditions so
IS to have good credit by requiring
Ill the earnings of grouped lines,
above "fair'' rate, which is not de-
ined, to be turned over for other
ines in the group. The railroad
BOARD is authorized during reorgani-
alton to guarantee an operating in
'ome to the railroads not to exceed
he compensation authorized Y
government control was established
With an allowance fos ad,.:',..s for
'etterment and extensions since gov
;rnrlent control started.
Rates Will Be Increased
THE Cumn1ns bill as amended d.
ects the Interstate Commerce Com
mission to fix rates sufficient to in
VIC AeAAAAoduo ICLuTu u SIX per
ent, and provides for the distribution
Il net income in excess of that re-
urn. This return, practically guar
nteed, is upon the total capitaIiza-
ion of the railroads including the
lllions of watered stock. 1t will en-
ourage inefficiency and waste in
Management, and result in tremen-
Gus increase in freight rates. The
abroad executive and stockholders
ssociations admit they expect freight
ates to be increased at least Is per
emit on most lines, and Is to 80 Der
ent on many. The increase will
robably be much larger involving a
otal increase in revenue of close to
alf billion dollars to pay high di-
ldends and dividends on watered
took, and to encourage inefficiency
nd waste. Can the farmers who
ay the freight both on what they
NY and what they sell stand that?
The return of the railroads also
leans that the old discrimination
gainst farmers will start again. Can
armers stand that?"