Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-09-17

companies to borrow or otherWlsS
secure during the year 1920 100000
900 new money, compel them TO e1-
pend it in furnishing the new equip
ment and facilities and during the
following year to borrow or other
wise secure q billion dollars and
compel them to use the money for
like purpose.
"The financial situation was furth-
or perplexed by the knowledge that
in every year Of the future many
hundreds of millions of dollars in
bonds would be maturing ana that
these maturities would have TO be
met either by payment or extension
If the railroads were to be kept from
the hands Of court receivers"
How Problem Was Solved.
Senator Cummins points out that
these and other financial problems
were solved by appropriating $780,
O0O 900 to be loaned to the railroads
for period not exceeding ffteen
years at six per cent interest. to
bridge over tho immediate period OF
transition, and we adopted a rule OF
rate making thru which It was not
believed the next income of the rail-
roads, as whole, would be not less
than 5h per cent upon the value OF
the property, considered as whole,
rendering the service. the rule to
continue for two years. accompanied
by the provision that no railroad
should retain for distribution more
than per cent upon the value OF Its
property, and should pay to the gov
eminent all above 61a per cent
An erroneous View. ;,
Senator Cummins declares that It
Is not true, as many have been led to
believe, that the railroad bin requires
the Interstate commerce commission
to make rates that will yield net
income Of at least 8 " per cent to
each separate railroad.
The act requires the interstate
commerce commission" he. states.
EITHER to take all the railroads and
adjust the rates SO that tho aggre-
gate operating income of the whole
number together shall be equal to
5h per cent OF the value of all the
properties or to divide the country
into districts and adjust the rates so
that they will yield q " per cent in
come upon all the properties in the
several Districts
Senator Cummins discusses at
some length that part OF the act
which deals with the settlement Of
disputes between employees and en-
ployers.
"The public can not endure the
consequences Of this war between
the collective power Of labor upon
the one hand and OF capital upon the
other" he states. Transportation
service IL so essential. not only to
the business OF the country but to
the lives and welfare OF the people
that organized society as whole
must find some way In which to
settle in a just and equitable way
the disputes which inevitably arise
between railroad workers and rail-,
road managers and thus avoid the
calamity Of . suspension IN trans
portation.
1.-THE act which I am reviewing
takes q great forward step upon this
subject. Without entering into close
detail It IL sufficient to say that 1t
organizes railroad labor board.
composed Of nine members, all OF
whom are appointed by tho presi-.
dent by and with. the advice and
consent Of the senate. Three Of the
members are to represent labor.
three members represent railroad
companies. and the president selects
them from nominations made by the
carriers. Three members represent
the public and the president appoints
them without restriction or limita-
ton. This board ha the jurisdiction
to hear and decide all disputes with
regard to wages and its decisions are
final"