Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1920-08-09
WHY RAILROADS
NEEDED Money.
increase in RatesWill not
Increase Their lcome;
Shoe on Otter
Foot.
SHOULD CUT TAXES.
Government has cen Pay
ing Deficits, nov up to
Shippers
SHOULD CUT TAXES
BY j. +. JonSs.

decision is one of the most importay
events that has occurred since the W.
lilasmucli as it seeks to place the ~
roads OF the country on IL strity''s'-
ness basis that will enable ''h 70
operate and maintain their yopertles'
pay their workmen the wagy/that have
been fixed by govcrnmy ana other
official tribunals, and <tnrn to their =
owners net opcraG income of 6
per cent on val"Y6" of S1s'"o'ooo'
900.
Nat1f rally, tp/ biggest question i'll
our ind land economic life. has
been tie settlement of the transporta-
ton taSgie After months Of constant
study, the commission has made dis
position of matters that covers all
questiols of financing the carriers.
The railroad deficit of approximately
$7j.OOOlOO "A month, which has been
met by taxation of the public. is wiped
out, and the increased charges to ship
pers pieces the burden where it be-
longs. In other words the taxpayers
load is heightened and the shippers find
that tleir rate has been raised the
amount necessary to meet all financial
requirements of the roads. Thus, for
the first time since the railroads of
the country. have been under public
control. they are in position to sus-
tain themselves, and at the same time
the rates that have been fixed have
been made by !; decision of the com
mission, after hearing shippers repre-
senting every large industry in the
country, all of whom have agreed That
the time, is at hand when the intent OF
the transportation act to make the rail
roads stand o niheir own resources,
must he put into effect. since it repre-
Sents the only commonsense course.
The interstate commerce commission
decision is supported by the state rall-
road commissions to the extent that
chosen representatives OF the latter
sat with the federal body in the hear
ings and oral arguments and joined III
the conferences antcccdrnt to the ue-
termination of the matters in issue.
On the face of all the returns the pub
lie has been thoroughly represented by
its tribunals. In their decision they
have interpreted the Instructions OF
congress to nut the railroads on firm
foundation. which would at the same
time be fair in every respect to ship
pers and tax payers. While no one
likes the higher railroad rates any
more than they want higher prices for
wearing apparel and food, still there
is genuine satisfaction expressed in
all official circles in Washington over
the fact that the railroad question has
apparently been solved, so far as H.
nancing and the relation with the pub
lie and the shippers are concerned.
Put Chloe on Other Foot.
Immediately following the interstate
commerce commissions order fixing
permanent freight and passenger rates
the cry went up that the cost of living
would be increased. As a matter OF
fact the railroads are receiving no
more money under the decision than
they received before, the difference
being that the treasury of the United
States has been paving out of the
peoples money to keep the carriers
going. as was provided in the leSisla-
ton returning the roads to private
ownership. SO that every dollar added
to the cost of living is Il dollar less
to be paid in taXcs-and the LORD
knows that there is nothing that needs
pruning down more than taxes. In
this instance the government guaranty
was no better than subsidy to the
roads. and was given in lieu of their
proper support by their patrons The
condition would be much the same II
the government paid deficits for the
-,
public serving industry. Thus, by thel
recent decision. the government will be,
relieved of this guaranty after Sept !.
and the amounts necessary TO pay
return on the capital invested III rail-
roads will be paid, by those who re-
cpive railroad service rather than by
TIN, tax payers.
$500. OOO. 900 of the increased reve-
nues will be required to pay Increased
wages. and about $500, 100000 is left
toward ..ilet operating income, which
with tn. $2OOOO0.OoO earned by the
roads during the constructive year end
ing oct. 81. 1919, on which their es-
Inmates we're based. would produce the
81. 100, OOO. 900 to which the commission
finds the roads are entitled under the
law.