Mohave County miner and our mineral wealth., 1920-01-03
CONCERNING CUMN|NS
 BILL RAILROAD . LEGISLATION

The Cummins railroad bill had a hard tussle, but finally got through the Senate before the holiday recess. The House having passed the Esch bill, the two measures are now being considered in Conference, by com- mittee representing the two legisla- tive bodies, and there is strong hopes that an agreement amy be arrived at so that the railroads may go back to private management on safe and sane basis. The debate on the re- turn of the roads was eventful in Congressional proceedings, since the discussions were rich in unfolding ev- cry feature of \ the industrial situa- tion, and the controversial points were thoroughly threshed out. When it looked as though the legislation nigh. go over till 1920, Senator Cummins causticely reminded the Senate that it was the known habit of Congress to delay everything until the necessity becomes obvious to even the most in different mind." He warned his col
 leagues that if the railroads were turned back without prospective legis- lation, that chaos would follow, and said that eff the roads should be re- turned without effective legislation they could exist about a month, and then they would fall into hopeless confusion, and two-thirds of them would be in the hands of receivers"
 Senator Kellog of Minnesota, fur nished some Illuminating figures on the railroad situation, and he told the Senate that he had learned from h. terstate Commerce Commission sourc- es that out of 165 Class One rail- roads 108 failed during the first three quarters of 1919 to earn their fixed charges for that period. In other words, instead of earning surplus for the payment of dividends to stock holders, they have not even earned their interest charges and the stock holders would thus be left with a ce- ficit instead of surplus. The bas- ance over fixed charges earned by the remaining 57 roads is not sufficient by $56,O00,00O to overcome the de- ficits of the other 108.
 'These tales show that practically two-thirds of the railroads of the United States must inevitably go into the hands of a receiver unless their conditions are ,improved-and these are not the poor railroads" said Sen ator Kellogg, "they are such lines as the Pennsylvania, the Baltimore and Ohio, the Great Northern, the South ern Pacific, and many others. The Government took over these railroads in a solvent condition, and while, of course, it has paid, during it's opera tion, fair rental for the properties, it has increased the operating expen- ses so greatly that when they are turned back they will be bankrupt and can not from their earnings pay their operating expenses and fixed charges, without one dollar for dividends. A railroads is worth what it will earn.
 "We have no right to take over a public-service corporation and use it for Government purposes, increase its operating expenses so as to render the property valuless, and turn it back without any remedy. Furthermore, should this be done, a financial col lapse in this country is bound to fol- low, and as the bonds of these rail roads are held in savings banks, in surance companies, and by millions of individuals, and are large basis of credit, the greatest care should be taken to preserve their integrity.
 T wish to save the railroad systems of this country from utter bankruptcy, because railroad efficiency is needed on every farm and in every village and in every single industry that ex- ists in the country; and l doubt if Senators realize the serious condition confronting the country. l do not care what basis of value you take; I will take the valuation fixed by any board in the world that is fair. The railroads today are not earning any where near 4 per cent upon their value. Everyone knows, of course, that the bonded indebtedness of the roads is far below, six or seven bill lion below, any valuation which will be placed upon them."
 Senator Kellog pointed out examp- les of large unnecessary expendltur- es under Government operation of the railroads and made a vigorous plea for a return to private operation with out delay, but with legislation which would make possible the gradual over coming of the handicap under which roads would have to labor upon the.r return to their owners.
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