Evening star., 1919-05-11
Compares Different Roads.


eastern railroads. found, average
5.21 per cent on the capital. That doesn't I
look so bad, but the trouble is that It's
found the Chicago and Northwestern
earned 6.13 per cent and the Chicago
and Great Western 1T per cent. Now
they are doing business in the same ter
ritory and serving the same business
interests. One of these railroads IS
strong and healthy and prepared to go
on serving the public interests: Now
these rates must be uniform. You can
say you can finance the Chicago and
Great Western by raising the rates, but,
the rates being uniform, the chicago ana
Northwestern rates will be raised, too.
Now how are you going to take care
of the sick patient without letting one
get a lot OF revenue to which 1t Is not
entitled. And when the rates are raised
the business men in that territory sur
fer accordingly.
war without taking over the railroads
and we won the war. Now we have got
to pay the price, whatever 1t Is: Rec
ofds show an Increased cost to shippers
and packers OF $500. 900. 900. yet there
was q deficit of $200, 900, 600. Verify, IL
is a stretcher case.
What had we better try to do? Why
and how are we to make the railroads
credit good? We can restore credit by
fixing their capital, and when we have
fixed it give capital fair return on its
money. What do We get by fixing cap
ital? You will remove all the friction
and turmoil that has been going in these
railroad for years.
Against Government Ownership.
'I don't want government ownership
of railroads. want private owners to
run them and operate them in the inter-
est Of the public: But ]. want to stop
| capital shall go into railroads without
government consent. The issuance of
railroad securities should be regulated.
''You know we adopted the Sherman
antitrust law. and, In the main, think
| It is correct. We must protect the pub
! Tic from monopoly, but I've come to the
| conclusion that the sherman antitrust
| law as regards the railroads does not
| function properly. We want to regulate
| these railroads by giving the Interstate
| regulating body complete powers of reg
| ulation. This body ought to have the
power to regulate the intake and to reg
| ulate the outgo."
! In view Of the fact that the republican
majority in the next Senate is two, and
! that q change Of one vote produces a tie
| with Vice President Marshall to cast the
| deciding vote, it is not unlikely that the
railroads problem will be handled as a
| non-partisan question, in which event
derwood will be influential in shaping
| legislation.
Mr.. Underwood himself believes the
peace treaty will be ratified a short
time after It is submitted and that
the railroad problem will be tackled
Immediately thereafter.
Favors Treaty Ratification.
| So far as sentiment in this part OF
the country is concerned. the early
ratification Of the peace treaty is ia
vored. The proposal that the United
States shall agree conjointly with
Great Britain to come to the aid OF
France In case of an 'unprOvoked at
tack" by Germany is approved for
two reasons-hrst, because people
here understand 1t is the purpose OF
the league of nations to prevent "un-
provoked attacks" on any country
and that IL there is any one nation to
whose aid the folks in this country
would rather come when in distress
than any other 1T is France; second
because the United States has just
| aided France, upon whom Ger
many made such an attack. and il the
| United States was right in 1917 they
consistently cannot do otherwise in
the future.
| But briefly. after reading the severe
terms of the peace treaty. especially
the provisions rendering Germany i'm
potent from military and naval
point of view. most people hereabouts
have the feeling that to sign defense
agreement with France against an un-
provoked attack by Germany is like
Underwriting an insurance policy that
will never have to be paid.
fCopyrieht 1914 bv n Y Rvenfn1 Post Tn.