The labor world., 1920-10-02
PLUMB REPLIES :.
TO HARDING ON
RAILROAD BILL
Declares Senator Voted for
Measure He Apparently Knows
Very Little About.
Continued from Page One.

good the amount which the rates
would not earn.
Senator Harding's next statement
is: But this guaranty of 5h per cent
net earnings was limited to the period
Of transition of six months
1.-THE bill says: Provided, that dur
ing the two years beginning March 1,
1920, the commission shall take as
such fair return a sum equal to 5h
per centum of such aggregate vafue.'
But may add half of per centum
thereto in it's discretion.
Knows Little ABOUT 1t.
Senator Harding says that the bill
did provide for the maintenance of
rates for a period of six months which
would guarantee sufficient railway
earning to make possible the financ-
ing Of necessary railway improve
ments under the control Of their own
ers, and its guaranty of 5h per cent
earnings was limited to the period OF
transition of six months Duration
'"The fact is the bill did not provide
rates during. the first six months to
make possible such necessary financ-
ing but on the contrary guaranteed
a certain net income to be paid out of
the treasury Of the United States and
for the remaining year and a half of
the first two years provided for the
fixing. of rates which would guarantee
that income.
Voted For 1t.
<Senator Harding voted for this
bill I cannot conceive that he did
not study the bill and did not know
the truth as to it's provisions. Yet If
he thought the bill was subject to
the construction he placed upon it, he
cannot have read the bill. He says in
his speech, No law of like importance
ever:was so speedily enacted It must
have been enacted. with such speed
that he did not know it's, provisions,
and now justifies his action, by repre-
senting the bill to be that which he
though he voted for. Such ignorance
of it's true provisions conclusively re-
veals his incompetence as a.. legis-
lator On the. other hand, if he knew
the provisions of the bill and now
misrepresents it's provisions to the
trusting American people, he has
proven himself unworthy of that con-
fidence which the citizens of a great
republic should be warranted in re-
posing in candidate for the high Of
fice of President. :.
Toh Some Truths.
Senator Harding inadvertently.
however, told some very unwh olesone
truths for the supporters Of the Cum
Minis Bsch' bill. He said: III the ex-
perrin ent with the railroads and these
communication lines had been sue
cessfu1 it reasonably may be assumed
that the. policy would have been made
permanent Here Hes g. complete ex-
p1anation Of why this experiment was
not successful, 1t was an experiment
whose conduct was necessarily en-
trusted in a large measure to the men
who were more vsta@lv interested in
proving the failure at the demonstra-
ton. It was against their deepest in
terests that it should have been sue
cessful, and they used their utmost
endeavors to see that it failed. -.
Not Failure.
I'm commenting on the alleged fail
ure of this experiment, Senator Hard
ing says:
"It cost America a billion. dollars
to make the government experiment
in war, and no one can say that it
would have cost less to make q like
experiment in peace. During the ex-
pertinent Of government operation the
deterioration in railway property was
a billion more, and the whole ad-
venture brought a crushing obliga-
ton to the government, and the peo-
pie who pay the governments obliga-
tions. All public money OF neces-
sity comes from the pockets of the
American people. Some pay more
! and some pay less, but tho resource,
Of government are the resources: OF
the people. and the humblest citizen
is called upon to pay as wen as the
citizen Of vast resources. This is why
the enormous loss under government
| operation 80 thoroughly disguised the
] country
'Let us analyze this statement and
compare it with the facts as developed
by operation under the Cummins-
Esch law. Assume that it cost Amer.
lea a. billion dollars to make the
government experiment in war-and
this statement misses the truth BY
some two hundred and fifty millions
as the actual deficits to be made ur
were less than seven hundred and
fifty millions for 26 months Of opera
ton. What has it cost during the
first six months since the roads were
returned to their private owners? ]
quote from Senator La Follette'l
statement:
What They Cost.
'The Interstate Commerce commits.
sion estimates that in five month,
already elapsed since March 1 Cup t.
Aug. y the railroads have Taller
$500. 100000 short Of the guaranty
and the treasury report for the month
Of August shows that the government
deficit was increased $130,O0o.o0 IL
/