The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-03-02
THE NEW RAILROAD LAW.

simultaneously with the return of
went into effect the new law governing
their operation and their relation to
the government and the public.
The whole spirit of this new law ap-
pears to be one OF intentional fairness
| to all interests concerned-to the rail-
way companies and their employees.
and also to the general public. For
the first time in the history of govern
ment regulation of railroads IN the
United States. official recognition is
given to the principle that railroad
capital is entitled to a fair return on
its investment, and that rates should
be fixed by government authority so
as to provide that return, regardless
Of whether such rates be uniform or
not. The former mea sure of reason
ableness," which was given to the in
| terstate commerce commission for it's
guide, had no definite meaning and
for years it failed to provide proper
earnings on capital investment The
new policy marks a distinct change in
! this respect.
Under the provision of the new act
the present government rental of the
roads WILDE guaranteed for a period
of six months and for two years there
after the interstate commerce commits
sion will establish or approve rates
which will provide for earnings of 8 Il
per cent on investment, with an al
lowance of another half of one per
cent for betterments chargeable to
capital account. Surplus earnings,
oboye per cent are to be divided
between the companies and the gov
crnment, the latter half to be used in
supporting a contingent fund to pro-
vide operating or equipment loans to
the weaker carriers. In addition the
bill creates .. revolving fund of $780,
! 100000 to aid the railroads during the
| transition period, and provides for the
extension Tor ten years of railroad in
debtedness to the government for bet
terments of equipment furnished dur
ing the war.
In relation to labor, there is a guar
antee against reduction of the pres
ent rate Of wages during the next six
months, to remove the fear that the
first step of private ownership might
be to cut wages. Strikes are not pro-
hibited. For the present reliance is
placed on public opinion and moral
suasion. Provision is made, however
for arbitration by the creation of a
tribunal, equally representative of the
carriers, labor and the public interest
for he
tcrstate scope, and plan is outlined
for the creation of joint boards of adj
justment on individual railroads. II
! the railroad workers are debarred by
public opinion. or by other phases OF
law, from striking, they are given a
court in which they can present their
claims. While avoiding the extreme
policy Of compulsory arbitration to-
ward which public opinion has shown
a strong tendency, it provides a prac-
teal substitute, by which neither the
railroad operators nor the workers
suffer, while the public interest gains
new recognition!
In other details of the new law. per-
hitting consultations. joint use of ter
minals and cooperation between indi-
vidual lines and systems, the plan
shows progressiveness in the direction
of more rein for railroad enterprise
and genius, and altho 1t does not clear
away all the clouds from the railroad
problem. it is start in the right di-
rection. and altho it is likely thai
flaws and imperfections will be dis
covered. these will be remedied and
corrected as the necessity arises.