Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-10-12

misconception Of the meaning the
speakers words convey to his hear
Ors. Nr Porter Is not ignorant OF the
provisions OF the Cummins- Esch
law The Journal has no desire to in
innate that he deliberately uttered al
untruth. 1t prefers to be charitable
and say that he did not intend his
words to convey the meaning his
hearers attached to them. The pro-
vision of the law concerning the
guaranteed income reads:
SEQ. 62-The term guarantee per-
Tod" means six months beginning
March 1. 1920.
Sec. 6e-Thc United States hereby
guarantees
Sec. 61-With respect to any car
rier with which contract has been
made fixing the amount OF Just COM
pensation under the federal control
act, that the operating income OF
such carrier for tho guarantee period
fsix months from March 1. fe2o1
shall not be less than one-half the
amount named in such contract as
annual compensation.
No one denies that act guaranteed
the same income to the roads for the
SIX months period that they were
guaranteed under the federal control
law which was introduced by demo-
cratic members of both branches OF
congress and approved by demo-
cratic president. But that Is all the
law does guarantee,
Mr.. Porter, with tho adroitness of
10 capable lawyer. leaves the impress
sion, Upon those who have not read
Tor studied the Cummins -Esch law
that section 223 guarantees the 5M
per cent income about which he
talks. That position Is entirely con-
trary to the truth and in opposition
to the plain provisions Of the law. 1t
reads:
The commission 1.-THE Interstate
commerce commission as defined in
section Of the law1 shall from time
to time determine and make public
what percentage OF such aggregate
property value constitutes fair re-
turn thereon.
Then follows a provision which
reads:
Provided that during the two
years beginning March 1. 1920. the
commission shall take as such fair
return a sum equal to SIC per centum
OF the aggregate value"
| That Is what. Mr.. Porter would
have the people OF Iowa believe is a
government guarantee Of 5h per
icent income to the railroads. 1t only
allows the interstate commerce COM
mission to permit that income to be
made. If tho roads do not earn that
lamount every intelligent person who
has read the law knows--and GER
ttainly Mr. Porter knows-the deficit
would not be paid out Of the treas
Jury. Section 222 Of the law provides.
'In the exercise Of its power to
prescribe just and reasonable rates
the commission shall initiate. modify
establish or adjust such rates 80 thai
carriers as whole will under honest
efficient and economical management
land reasonable expenditures Tor
maintenance of way, structure and
equipment. earn an aggregate annu-
al net railway operating income
equal as near as may be to fair re-
| turn upon the aggregate value Of the
railway property Of such carriers"
Except for the first two years the
commission may fix the maximum
income as 1t pleases. But the law
contains no provision that If the
reads fail to earn that maximum the
government must pay the deficit
There is nothing in the whole law
which intimates such things as Mr.
Porter left his Siox City audience to
infer it did. 1t guaranteed an income
to roads for the first six months. II
limits the income after that time to
8 u per cent, with an additional one
half of i per cent to be used for the
lbetterment Of the conditions OF the
employees. Mr.. Porter knew these
| things. 1t is charitable to believe he
misled his audience Internationally
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