The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-08-20
RO'rTENNESS OF
THE RAILROAD
ROBBER GANG
(By Charles M. kelley

When the Cummins- Esch bill was
being considered by Congress, Robt.
w. Woolley, member of the Inter
state Commerce Commission, warned
the nation that if it were enacted it
would result in an increase of freight
charges of rs per cent. Mr.. Woolley
was conservative. The increase
granted by the commission of which
he is a member is 40 per cent. The
people are called upon to pay to the
railroads directly approximately
81 500, 100000 per year in additional
transportation charges.
In the opinion of competent eco
nomists, this increase, heavy as 1t
| is, should not, under decent distribu-
tive conditions, constitute an lnsup-
portable burden upon the consumers
of this country. But, if past prac-
tees are continued, it will mean
tax of nearly $7,000,OO0,OOO which
must be carried by eperythiny that
is used by the average citizen.
The former director of railroads, Mr..
Walker D. Hines, estimates that
freight rates multiply eight times
before they are finally paid by the
consumer. That they are eventually
paid by the public no sensible per-
son will attempt to deny.
If merely the increased rate is
added to the public, it will mean
that each average family must be
prepared to take up a new yearly
burden of approximately $50. If the
ratio suggested by Mr.. Hines is main
tanned. it means that each Ameri-
can family must provide at least
$500 with which to pay the heavy
charges that the railroads have de-
inanded and will receive because
Congress ignored a fundamental pub
lie interest.
The Interstate Commerce Com
mission is not censurable for award
ing an increase, but it is open to
criticism for making it so high that
it is certain to prove a heavy load
for the people. It's mandate was
to provide rates that would yield an
average return of not less than 51a
per cent on the estimated value of
railroad properties. This value was
placed by the rail executives at $780,
100000, 900. The commission sub
tracted nearly two billions from this
estimate, but it is widely held that
the sum agreed upon as a fair value
is greatly in excess of the real value
of the properties. The consuming
public is compelled to pay interest
charges on fictitious capitalization,
which now becomes a constant drain
upon the resources of the nation.
Iniquity of Legislation
All these matters were pointed out
to the public when the transportation
bill was under discussion. Mr.. Wool
lev, Mr.. Hines, and other public
spirited citizens declared that it was
a grievous and perhaps irremediable
mistake to turn the roads back to
private ownership when this course
implied unnecessary exploitation of
the people. Mr.. Hines gave it as his
opinion that a very modest increase
of revenue would be required to
maintain the railroads under con-
tinued federal operation, and he was
sustained by many authorities who
had no axes to grind and were So
licitous only that the public inter-
est should be served and safeguarded.
Unfortunately however, Wall street
bankers had a strangle-hold on Con-
gress, and the transportation bill,
with its multiplied inquities and
extortions, was thrust upon the sta
tute books. Now the people are pay
ing the penalty in demoralized trans
portation service, unprecedently high
rates and the contemptuous indif-
ference of railway executives. All of
which is not conducive to the peace,
prosperity and well-being of the ma
ton, nor pleasing to its citizenship.
The rates, high as they are, will
serve as a test of the boosted eff
cheney and initiative of private man.
agement. Having received even more
than they requested, the private
managers will now be compelled tc
. make good, and no excuse will hence