The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-01-31
INSPIRING ADDRESSES
Continued Prom Page one.)


larger way devote all tn" time ;hat X
would he proper for me L. uSc uP"H
such al occasion aS this. - diScuSS'Hh
OF the wonderful development OF the
American railway system a. wh"!e.
and the part that i has played ~ me
building up Of our country and binding
It's far-dIStant parts together INTO one
compact whole. Rut While Sucn re-
cltal might be interesting. II would nav
no necessary bearing upon the problem
tina, IS now CunfruUting US as business
men and citizens. and II seems 70 D.
better that | should c"nrn' NY Discus
sion 20 the c"DdIt:unS thJt cNlSt To-Day
and which confrou: US IN the lmmed'-
ate future.
ION January !. 1915. or 20 ," exact.
On December IS. 1917. the President OF
the United states by pr"Ciamatl"n: took
possession and assumed control or SUD
, stantially ali The railroads IN The nt"I
states. acting under authority granted
him by Congress as 4 war measure. ana
since that time tho railroads. or nearly
all OF them have been under the d'r",'
management and control OF the treSl-
dent exercised through his N1r'"HN
agents. such control centering in the
Director General OF Railroads app";ut"d
by and reporting e. the PRESIDENT
shortly after the l'r.s'dsn' assumed
control Of the properties. congress pro-
vided b. additional legislation TOR INC
payment BY tn, PRESIDENT - the Nhf'-
Gus owning corporations. OF rental
spoken Of In the law as Just comp"n-
satlon"-for the use Of such properties
while in tn" possession or tho govern
ment II stated roundiy that the com
pensation in n" shape OF rental. which
is being pad for the use or the rail-
roads by thu governments IS approx
mately 5000 OO0. 600 per annum. and IS
based upon thr average annual earnings
OF the same railroads for the three
years ending June 80. 1917. known as
the test period
"Since the railroads have been In the
possession OF the government. i genera!
Increase OF approximately 20 per cent
has been made in freight charges AL
over the country. a somewhat larger IN
crease having been made on the lines
east Of Chicago. and passenger tareS
have also increased some 20 or 20 per
cent Notwithstanding these Increases.
however. II Is apparent from figures pub
Iished by the director general. that the
railroads under government control teIl
short during tho year ending Decem-
Der 81, 1919. OF earning the guaranteed
rental by about $500. 00o'000.0o. am
making no reference 10 the results OBJ
tained during the year OF 1918. because
we were then At war and because the IN
creased freight and passenger rates
were not made effective until the year
Was we'll advanced. while wage IN
creases and higher material prices were
effective during nearly the whole OF the
year. On account OF these conditions
and others. the results obtained during
that year and under such circumstances
could not fairly be considered as typical
or helpful in arriving at conclusion
concerning the real merits OF govern
mental or unified control; but during the
year 1919 We were al peace. and the fS-
ures published by the Interstate Com
mcrce Commi Ssion show that during the
hrst eleven months OF that year the
earnings Of the carriers in the United
States as = whole amounted 10 approx
mately S.T30.n04.00o or 5i2 per cent
greater than tn" previous year. In fact:
Notwithstanding the coal and steel
strikes and other Industrial disturb
ances. the railroads as q whole during
the FIRST eleven months Of the last fiscal
year and earned moro than they ever
earned during any similar period Inc
operating expenses. however. increased
l0.6 per cent and the not operating in
come Of the carriers. which was reported
as S5D3. 0O0. 900. was about "a per cent
less than during the same period or the
previous year. II is proper also TO note
that the net results for the year 1919
would have been even NOR" dIsappoint-
ing had tho full effect of the changed
cost basis been realiZed-tor while the
increased rates and fares were in effect
for the full year. some Of the increases
In cost due To higher rates OF pay and
changed working conditions were effect
I've for only portion OF the year.
Maintenance expenses were also less.
as the Director General has eNpla ned.
because owing 70 the steel strike IL was
impossible 70 secure all The rail required
TO fully maintain the properties. and it
IL probable there were deficiencies in
other materials.
Believes Test was Fair.
ct has been urged by thYS" who adj
vocate the cnntinuanc" OF unified control.
that the conditions under which the
roads were being operated during the
rl a
special reference - made 70 tho coat and
steel strikes: but il should be kept in
mind that hardly ever iS there a year
without industrial or climatic disturb
anceS OF greater or less degree and
which are certain To affect adversely the
operations 81 the great transportation
agencies located. "a they must he. in tho
open. and particularly sUhjTCt. as they
must be. o. disturbed coalitions Of an"
charactNr-Clmatir industrial or other
wise. However. tho fact that the gross
earningS Of the carriers were larger lust
Year than ever h"for" in spite II such
disturbances. should he kept in mind and
would seem 70 afford a sufficient answer
to those who urge that the year or 1919
did not afford a fair t"St II would hc
\ mistake 10 base any estimate ut the
future requirements Of the railroads in
the shape of rates ur revenues upon thc
assumption Of cutlr" freedom from in
dustrial and climatic d. Sturhanc.s.
Those are elements entering into the
problem and must b" dealt with.
zone rcaSon-and there nr" many
othcrs-fOr the unsatisfactory financial
results obtained 10y the government
from tn" operation "f ~" railroads dur
ing the year i?l9. was tn" great increases
in cost Of operating IN" railroads which
has taken place III the last three or four
years. and particularly during tho last
two years. Estimates coming from
what seem To- hc rriiaai" sources indI-
changed working conditions granted I"
the railway workers iUr.u% IN" period
~rdcra! control VIII mean an in
creased cost for labor n'ru" 20 tho rail-
RoadS ahnN" Thnt = woutd have been as
conditions w'r, ~ i9l1. "tSarproN'na,
~ Sl.@nh. m"n "u" per :"ar. and tn" high
er prices winch III" rI:lru:uiS ~" r.url,r.
ed 10 pay t"r coal and other materials
above the pr'c"S IN rT~'t previous to
Federal control. would seemingly add
another $500. "u". 400 ar SJnU 900 600 ~
the amount resulting from Increased
wages. II is estimated that the inCrras-
ed revenue Pc"ivcd by the government
from the higher rates and ,hnrGc< mn
in effect. WILL Weld over 81. nuG 600 600
per year on the present bus neSS-su
that the operating costs have increased
somewhere from $a"o.on0 900 o. $7n0.-
Don. moo year nor" than the increase
resulting from hivh"r rates and charges
and this accounts largely II not
altogether. for the inability ~ the gov
eminent TO earn the standard rental
The net income aCCrurrs t. tn" govern
ment in 1919. should as n matter Of fact
have been largely IN "Nr"SS ut thc stand
ard return because the traffic handled in
1919 was largely ~ excess uf the aver
age handled during the three years of
the test period. and also because me
government had expended about $500.
000. OOn for new equipment during the
two years OF Federal control. and had
caused "a ~ spent for additions and
betterm"ntS tu the properties over s7ju-
O00. O0O-al! IL which C"ntr hutcd t. the