The Carlisle independent., 1920-08-12
THE NATIONAL CAPITAL
By J. E. Jonesl
The Interstate Commerce Decision

I The Interstate Commerce Commis-
 sion's rate decision is one of the most
 important events that has occurred
 since the war, inasmuch as it seeks to place the railroads ofThe country on a l strict business basis that will enable them to operate and maintain their
 properties, pay their workinen the I wages that have been fixed by Gov | ernment and other official tribunals, and return to their owners net oper- | ating income of six per cent on a val
 uation of S1S,900,00O,O0O.
 l Naturally, the biggest question in
 our industrial and economic life, has | been the settlement of the transpor | tation tangle. After months of con- stant study, the Commission has made a disposition of matters trat covers all | questions of financing the carriers. | The railroad deficit of approximately | $75,000,000 month, which has been | met by taxation of the public, is
 wiped out, and the increased charges | to shippers places the burden where 1t | belongs. In other words the taxpay- CTS load is frightened and the shippers | find that their rate has been raised the
 amount necessary to meet all financial | requirements of the roads. Thus, for the first time since the railroads of | the country have been under public | control, they are in position to sus- | tain themselves, and at the same time the rates that have been fixed have been made by a decision of the Con- -e~,a of 1,,x senting every large industry in the
 country, all of whom have agreed that the time is at hand when the intent of the Transportation Act to make the
 railroads stand on their own resources must be put into effect, since it repre- sents the only commonsense course.
 The Interstate Commerce Commis-
 sion decision is supported by the State Railroad Commissions to the extent that chosen representatives of the lat ter sat with the Federal body in the hearings and oral arguments and
 joined in the conferences antecedent to the determination of the matters in issue. On the face of all the re- turns the public has been thoroughly represented by it's tribunals In their decision they have interpreted the in- structions of Congress to put the rail- roads on firm foundation, which would at the same time be fair in ev- cry respect to shippers and tax pay CTS. While no one likes higher railroad rates any more than they want higher prices for wearing apparel and food, still there is genuine satisfaction ex- pressed in all official circles in Wash ington over the fact that the railroads question has apparently been solved, so far as financing and the relations with the public and the shippers are concerned.
 Put The Shoe On The Other Foot
 Immediately following the Inter- state Commerce Commissions order fixing permanent freight and passen- ger rates, the cry went up that the cost of living would be increased. As a matter of fact the railroads are re- ceiving no more money under the de- cision than they received before, the difference being that the treasury of the United States has been paying out the peoples money to keep the car riers going, as was provided in the legislation returning the roads to pri- N1tS OWHcfSIlp. IoO tIidJ every QOIidT added to the cost of living is a dollar
 ess to be paid in taxes-and the Jor@ knows that there is nothing that needs pruning down more than taxes. In this instance the Government guar anty was no better than a subsidy to the roads and was given in lieu of their proper support by their patrons. The condition would be much the same if the Government paid deficits for the steel mills, coal mines, or any oth- CT public-serving industry. Thus, by the recent decision, the Government
 will be relieved of this guaranty after September 1, and the amounts neces-
 sary to pay return on the capital in- vested in railroads will be paid by those who receive railroad service rather than by the tax payers.
 $600,000,000 of the increased reve-
 nues will be required to pay increas-
 ing wages, and about $500, 1000 10000 is left toward net operating income, which with the $200,000, 900 earned by
 the roads during the constructive year
 ending October 31, 1919, on which their estimates were based, would pro-
 duce the $1 LOG, 0,000,0 900 to which the
 Commission finds the roads are enti- tied under the law.
 That Town Of Boston
 A man named Ponzi lives in Boston.