The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-01-09
Cummins Bill Would
Increase Bills ---$175
a Year to Each Family

In past years The property invest,
ment account IL approximately equal
to the total OF all outstanding stocks
and bonds As the railroads have
tif 900 900 900 IN bonds on which
they pay an per cent. the guaranty
OF ah per cent on their aggregate
stocks and bonds will give them a
return Of nearly per cent on their
stocks. A 6 per cent guaranty
which may be granted by the com
mission. would Yield nearly per
cent on all railroad stocks. The com.
mission Ia not given adequate power
to control expenditures. 10 that this
guaranty carries with IL all the
evils az the cost.pius system.
Each road viii 10 required 90 pay
into n general contingent FUND
for the benefit OF weaker roads a
part Of any excess earnings over 6
per cent on ia total valuation. the
amount varying from one.hhlf 20
threcduarirra OF such rxccna nc.
cordlnE 20 the rate Of earnings.
This means that no strong. well or.
Eanixcd road will have any incentive
TO practice economies which vii,
cause II to earn moro than f~r
cent. az IL viii b. allowed 10 retain
only fraction % such savings.
Block Improvement
l, Is agreed ny railroad execu.
iisca that this will destroy the
operating efficiency OF the strong
systems and block progressive i'm.
provement OF equipment. They rely
however. on the opinion OF former
Justice Hughes and other eminent
attorneys that the courts will hold
this part OF the act unconstitutional
because confiscatory. This would
leave tho strong roads free from
any obligation 10 part with excess
earnings. while all the roads would
bn assured Of an average guaranty
In excess of any three years Ia
American railroad history. IL In
true that Elihu Root and other
equally eminent attorneys have held
tho provision constitutional. but IL
should 10 noted that all the infiu.
ence OF tho strong roads will back
the Hughes opinion.
No debts Of tho railroads 60 the
government for improvements made
during government control are 10 he
paid for 10 years. aitho tho govern.
msnt IL required TO pay Immediately
all amounts due for tho use Of the
roads during the same period. Tn.
roads viii pay per cent on their
debts 10 the government. amounting
In round figures TO 1900. 900. 600.
Millions 10 &c Loaned
Five hundred million dollars are
appropriated out OF the treasury TO
IL loaned TO the roads.
All tho railroads Of the United
States are 90 bc consolidated into
from 20 10 IS syptema As basis
for such final consolidation any two
or more roads are given the Inn
mediate right to merge subject TO
the approval OF the transportation
board and the interstate commerce
commission.
These consultations will offer un.
preccdentcd pickings for bankers
ana corporation lawycrH- Inc shet.
man antitrust law IL wiped off the
statute books. as far as railroads are
concerned.
The interstate commerce commits
sion IL to be reduced TO n quasi. ju.
dicial body. and all power Of general
supervision over the railroads is to
be placed In new board OF trans
portation." with five members. Al.
tho the terms OF members are to be
10 years. the first appointments are
TO be two for two years. two for
three years. and one for four years.
This insurcs that all the long'term
members will BE- named by the next
administration. which. In the opin'
ion OF those who drafted the bill. will
be republican. safe and sane for the
railroads.