Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1920-10-18
MEASUREMENT OF FACT.

| is in Iowa, made a special plea in his
address here few evenings ago for
independence in political action and
then used his fine oratorical powers TO
imiSrcprcSent the railroad bill and
cast aspcrsions upon Senator Cummins
because the Iowa senator happened to
| be chairman of the committee that
had that bill in charge. His aSsor-
ton that under the Cummins- Esch law
the railroads are now costing the ta>-
payers three times as much as they
did under government ownership is
absolutely false. The operation of
the railroads is not now costing the
taxpayers a cent and there is no pro-
vision of the law that will enable the
roads to recoup losses from the nation
al treasury.
During the six months following re-
turn of the roads to private owner
ship it did cost the taxpayers some
money, but the period Of guarantee ex-
PRED Oh the first of September and
railroad operations are not now cost
ing the treasury anything. During
government control the property had
been permitted to deteriorate. Equip
mcnt had become inadequate and in
bad condition. Congress recognized
the situation and was fair enough to
undertake to deal justly with the
roads for at least six months and i'll
corporated in the law a provision that
the roads should have the same guar
antcc for six months that they had
during government control. The Dem
ocratic congress and president had en-
acted legislation guaranteeing the
roads net income equal to their aver
age during the three year period
prior to government operation and all
the Cummins- Esch law did in that
direction was to extend that guarantee
for period Of six months, in order to
give the roads some chance to get
upon their feet.
If the government should take over
a factory or a farm for war purposes
lit certainly should compensate the
owners for the time the government
held their porperty and make some Of
fort to repair the damage done to the
property while IN the hands of the
government.
Mr.. Healy also said that the pres
ent railroad law guaranteed the roads
six per cent on their valuation of $19,-
100000 when they can be bought
in the market for at least $5,0OO,OO0,-
900 less. That is another absolutely
false statement. There is no such
guarantee and if Mr.. Healy has con-
suited the law he knows it.
The law provides that in establish
ing rates the interstate commerce
committee shall divide the country in
to districts and undertake to fix a rate
that shall yield 5ia or & per cent, in
the discretion of the commission, if
the road is wisely managed, upon the
actual value of the property. Some
roads will make 6 per cent. Some will
make / per cent, some , and some
more and some less. However, if any
road makes more than per cent 1t
is required to pay half Of the excess
into the national treasury for the
creating of fund to be loaned to
roads for improvement purposes.
The interstate commerce commits
sion is appointed by the president and
cratic If it has followed the law it
has not based the valuation Of the
roads for rate making purposes upon
any fictitious considerable but has
taken the actual value
Besides, there was no party division
in congress over the railroad law. 1t
was supported by /. Republicans and
Democrats alike and signed by the
Democratic president. Both the Re
publican and Democratic national
platforms say it should be given fair
trial. But the Democrats of Iowa think
they see an opportunity to discredit
Senator CumminS because of his con-
ncction with that law and are willing
to sacrifice the welfare of the country
to accomplish that purpose.
If the railroad law was such bad
measure why didn't President Wilson
veto it? He certainly has no compun-
sions in using the veto power. He
vetoed the daylight saving repeal bill
and the Volstcad prohibition bill and
would have vetoed the railroad bill
had it not been entirely satisfactory to
him. Some of his blind apologiSts like
Mr.. Healy will say that he had to sign
ii because the roads were going back
to their owners in few days. But
the president had the power to post
pOne the day of the return of the
roads and if it was an outrage to re-
turn them under this bill he ought to
have arose to the occasion and inter-