The Washington times., 1920-07-03

While the great political conven-
tions have been going on and the
country has been boiling with po-
liticsl talk. the Interstate Commerce
Commission right here at Washing
ton has been the stage for a contest
which is likely to have more direct
effect on the pocketbooks OF the COM
mon people than the contests at Chi
cago and San Francisco or even at
the election polls in November.
Since the middle OF May the COM
mission has been holding daily ses-
sions on the application of all the
railroads In the United States for per-
mission TO increase their rates to
degree which will add $1.0l7,OOO,O00
to the annual freight charges of the
nation-charges which must be paid
by the ultimate consumer and repre-
sented by an addition to the purchase
price OF practically every article he
purchases.
EMINENT LEGAL TALENT.
The most eminent legal talent of
the land has been ranged on the op-
posing side OF the case. 1t 10 general
ly recognized that the railroads must
have a rate increase to live. but .
vigorous contest has been waged as
to the amount OF the increase. Until
the increase Is granted the Govern
ment must pay the railroads enough
out Of the Treasury to make up the
deficit under which the roads are
operating. This means that every
days delay costs the Government
81. 900, 900. Yet the hearing OF the
case, which only a small group OF In
terested persons has paid any atten-
| ton to- is considered worth the money
because of the vital issues at stake.
PAY INCREASE CERTAIN.
When on July 20 the Railroad La
Dor Board at Chicago grants the ex-
pected wage increase of about $1,000
900, 900 this sum must be added to
what the Interstate Commerce Com
mission grants in this case. Un-
noticed by any but a few persons, the
case of whether or not $4,000, ,OOO. 900
shall be added each year to the cost
of living in the United States Is being
| tried at Washington. This means
difference of $40 to every man, wom-
an and child in the country per year.
or a difference Of 500 for each fam
lily.
A substantial part Of both increases
probably will be granted; probably a
| total Of from 81 500, 900 900 to $780,
0OO. 900. Decisions in both matters
should be handed down by the end of
this month.
The hearing has produced a vast
| deal OF evidence as to the needs OF
| the railroads and as to the necessity
for low rates on the part OF thes snip-
pers. The last big argument now Is
going on at the commissions hea ring
room, and will continue until about
July or Z. when the case will rest
and the commission will consider Its
! decision.
INTERESTING ARGUMENT.
No more interesting argument will
be made than that of the Southern
shippers in connection with the South
ern railway This system was ono OF
the few in the United States which
declined the Government guarantee Of
5a per cent pending the rate IN
crease 1t preferred to stand on It's
own financial bottom and take the con-
sequences. The story is one or
curious sort Of corporate courage al
most unmatched in American business
history Of recent times.
When the announcement came from
the general offices Of the SoutheT
railway at Washington last MartS
that the Southern would decline tho
Government guarantee and night its
own battle, the whole South was
electrified, and especially the workers
on the road 1t wac explained that
| to follow this course it would be nee
| essary to resort to extraordinary
economies and produce the utmost IN
efficiency. The Southern railway is
to the South what Old Dobbin. the
| family buggy horse, was to the small
town or farm family up to the advent
of the Ford 1t is family affair to
| the South. and the whole economic
destiny of that region is more or less
bound up in the Southerns fate. BY
| far most OF it's workers were recruit
| ed from the States through which the
! system operates, and sort OF COM
munity pride Is felt in the railroad.
This was stimulated by the company's
| decision to disdain the Government
guarantee and show what could lie
done to make a railroad operate even
| in these times Of high prices.
EMPLOYEES COOPERATE.
Operating officials of the Southern
! tell remarkable stories OF what oc-
CURED when the new policy went into
| effect. They say that old employees
came to employing officials and vol
UNFAIRLY resigned their JOBS, saying
they would seek work elsewhere un-
III more prosperous times. The re-
naming employees pledged their sup
mort to work harder to make up for
1
the diminished force.
The result has been that the South
ern Railway. with a greatly dimin-
| ished force, and, therefore, greatly di-
minished payroll. has been giving
more and better service than 1T did
before the change.
This. the Southern shippers contend,
is greatly to the credit of the South
ern Railway, but they also say that
the example constitutes an excellent
argument why rates should not be In
creased by so much as the Carriers
desire. Nearly all shippers are will
ing to pay some increase, but the ex-
annie of the Southern Is pointed to
as showing that IL railroad officials
will be efficient and railroad en-
ployes will be loyal, good railroad
service can be given without the
flarge rate increase asked. What ef-
feet this argument will have upon the
commission must remain matter OF
conjecture until the opinion OF that
body Is handed down, but II Is being
counted upon by the shippers as one