The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-08-13

under unified control than under the
control of many separate companies,
that the additional facilities which
are so greatly needed could now be
provided more easily and more eco
nomically by public than by private
capital, and that disturbances result
| ing from both rate increases and
/ labor difficulties could be reduced to
a minimum if the government re-
tanned direct responsibility for the
roads.
Labor Should Have Voice
at was also my hope and belief,
if federal control were continued
for a reasonable period, that it could
gradually be developed in the light
of experience and by genuinely con-
Structive measures, into a system of
administration which would preserve
the manifest advantages of unified
operation and direct governmental
responsibility for the transportation
system, avoid the dangers which are
presumed to inhere in governmental
operation by providing manage
ment remote from political influ
! ton, and enlist the cooperation of
labor by recognizing its just claim
to some voice in the management"
Despite the views he had eX-
pressed, Commissioner Eastman said
he regarded it as the plain duty of
the commission to do everything pos
sible to make the plan of operation
adopted by Congress a success.
Service is Chief Point
"Viewing the matter in this light"
said he, Il am impelled to the conclu-
sion that under existing conditions
! lberality in estimating revenue needs
of the carriers is desirable. Poor
service is Gripping our industries,
curtailing production, and raising
prices. As between high rates and
poor service, the former is the lesser
evil"
The views of Commissioners East
man and Woolley aroused the ire of
Commissioner McChord, who object
ed to the injection into the case of
large political questions of govern
mental policy" He insisted that in
fixing the value of the roads the
commission was in no sense making
final decision, and he pointed to
| the language of the decision to sup
port his contention, that the value
was "for the purposes Of this parti-
cular case" and was in no sense
binding on the commission.
Figures That Stagger
Briefly summarized, the decision
provides as follows:
S1,2S3 100000 from increase on
freight rates.
$233, 100000 from increase on pas
senger fares.
SAB 100000 from increase on Pull
man charges.
$4,5OO,OO0 from increases on milk
rates.
S1,4OO,OOO from increase excess
baggage charges.
Eastern roads receive approximate
ly $873, 100000 more per year;
Western roads, $3.50, 483,000; South
ern roads, $135, 298,000.
Per capita tax on increased freight
charges alone is $12 per year fol
every man, woman and child in the
country. Former Director General
Hines says this will be multiplied by
five when shipments reach the ulti-
mate consumer. This would mean an
additional burden of $500 per year
for every family of five in the Unit
ed States, or a grand total of 81 ,50O,-
100000 added to the increased cost
of living by the Cummins-Esch bill
Freight rates are advanced one
third, passenger and milk rates one
fifth, Pullman charges one-half.
Freight rates advanced in the East
40 per cent: in South, Is per cent;
in West, 80 per cent; in Rocky
Mountain-Pa Pacific territory, rs pei
cent.
Given More Than Asked
The increase in passenger, Pull
were exactly those asked by the
roads. Freight increase requested
were 1915 for the Eastern roads
32.03 for the Western roads, and
1891 for the Southern roads. 1t will
be noted that the Eastern and West.
ern roads received more than they
sought, while the Southern roads re.
ceived approximately Ia per cent less
than they had requested. The Com
mission said the financial condition
of Southern carriers was more ia
vorable than that of the lines il
either of the other groups, hence was
not in need of so large an increase
The standard return paid the rail
road owners by the government has
been at the rate of $75,OO0,OO0 6
month, or 1898, 100000 per year, q
rental which Senator Cummins de-
clared to be so high as ''to shock the
moral senses" Now the roads will
receive almost double this amount
1t is stipulated that one-half OF
one per cent of the purchase of addi-
tional equipment. This it is esti-
mated will amount to $94,000,000 pei
year.
Railroad managers, owners anc
bankers are highly elated with the
rate decision. The public will rem.
der its judgment when the increased
freight rates are applied.
THINKS Eio,hf