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

FARM B0DYE |
k k&A!EShhi % law
Higher Freight Rates Uader Private
Ownership Plan Of Cunnins Bill.
A note Of warning against the
pending Cummins bill maintaining the
private ownership Of railroads and .
call to action to the people Of the
nation has been sent out by the
farmers national committee on trans
portation Of the Farmers N tional
Council in Warrington.
With every stroke OF legislation
this bill becomes more vicious. Sat-
urday IN 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:
1.-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 rs pos
sible, and that the ships constructed
with the taxpayers money are to be
turned over to private concerns to
make them huge profits.
! CUMMlNS BILL FAVORlTE
! Senator Cummin's bill for the re-
turn of the railroads seems to be the
favorite bill now and it is asserted
at the 1apitol that it will be passed
within a few weeks. This is in the
face Of the long record of stock job
bling and stock watering, and fnan-
cial manipulation which brought the
railroads to financial straits before
the war; and in spite of the continued
efforts of the owners during the wal
to discredit government ownership
through inefficient management and
waste. Congressman Huddlestor
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 thu
roads are to be returned with big
government guarantee, and under a:
favorable conditions for future mani
pulations as can be gotten through
Congress. Under the terms Of TIL
railroad control act the roads were II
be returned within twenty-one month
following the conclusion of the war
but owners Of railroad stock do no
want them returned under the con
, ditions preceding government con
, troll.
: Restores Wasteful Competition
"The Cummins bill provides for di
, vision of the railroads into twenty t.
thi1ty-five systems which are to b
competitive, all the railroads to b
:, administered by railroad transpor
= tation board Of five members to b
appointed by the President. One chic
= breakdown. under private OWNERSHIP
! was lack of credit due to financia
manipulation. The Cummins bill b.
retaining the principle Of competitio
prevents the economies which are es
sential, and which made it impossibl
for the railroads privately owned t
get in strong financial conditions S
as to have good credit by requirin
all the earnings of grouped lines
above "fair'' rae, which is not dc
fined, to be turned over for othe
lines in the group. The railroa
board is authorized during reorgan
cation to guarantee an operating IL
come to the railroads not to excee
the compensation authorized v
government. control was establishe
with an allowance fo> al..'".'s e
bettermcnt and extensions since go,
ernrlent control started.
Rates Will Be Increased
"The Cummlns bill as amended d
reefs the Interstate Commerce Con
mission to fix rates sufficient to il
sure railroads a return of six p'
cent, and provides for the distribute
Of net income in excess of that r
! turn. This return, practically qua
anteed, is upon the total capitalize
ton of the railroads including tt
billions of watered stock. 1t will e.
courage inefficiency and waste
management, and result in tremel
dous increase in freight rates. II
railroad executive and stockholde
= associations admit they expect freig
rates to be increased at least Is p
cent on most lines, and Is to 30 p
II cent on many. The increase "
Il probably be much larger involving
a total increase in revenue of close
a. half a billion dollars to pay high {
!. vidends and dividends on water
:. stock, and to encourage ineft1cien
- and waste. Can the farmers w
- pay the freight both on what tn
~ buy and what they sell stand that
y, The return of the railroads al
~ means that the old discriminate
NJ against farmers will start again. C.
- farmers stand that?"
= |: C0I1NTY R0ITNDIIF