The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-10-22

road costs was substantially less
than would have been necessary if
the roads had remained in private
control and rates had been raised
enough to preserve their credit; it
protected the investments in rail
road properties whereas without fed.
eral control those investments would
have been endangered and it turns
the roads back to private control
functioning effectively with record
of exceptional performance in an
exceptionally difficult winter, despite
the descriptions caused by the coal
strike, and in condition to function
still more effectively with the nor
nal improvements to be expected
in other conditions"
Director General Hines is not the
only authority on the success of
government operation. William B.
Colver, former member of the fed
eral trade commission shows that
under federal control with >substan-
italy the same equipment, as per
cent more freight was handled than
under private control.
If that same degree of efficiency
could be secured today, without the
addition of a single new freight car,
the business of the nation could be
rescued from disaster
Esch-Cummins Bill
Not only did you, and your re
publican colleagues, vote to return
the railroads to private control, but
you passed a bill which places in
jeopardy the leading industries of
your state and nation. This bill con-
tains provisions for the most gigan-
tic subsidy ever granted by a gov
eminent to private corporations.
This grant subsidy results from
the provisions giving railroads pro-
fit of six per cent on the aggre-
gate value of the stocks and bonds,
despite the speculative features of
property values and their absolute
lack of stability.
This provision is the direct cause
of the recent rate increase of % to
40 per cent.
This increase in rates will increase
the cost of living next year four
billion to eight billion dollars, or
$3.50 to $400 for every family of five
Robert M. Wooley, interstate com
merce commissioner, is my authority
for that statement.
No law ever passed by congress
ever placed such an unbearable bur
den on the backs of the American
people.
Lumber Industry
The lumber industry of our state
has received a body blow by this
increase in rail rates. Lumber mills
are closing down because of it. The
weekly report of the West Coast
Lumbermen's association issued Oc-
tober 7,-received from 120 mills in
Observation-Disclosures new business for
the week just closed, of 46,933,S77
feet as compared with peceding
week of 72,190,322 feet.
Production was 1886 per cent be-
low normal. Shipments SO per cent
below normal. Couple this with
full page advertisements of the lum-
bermen on the disaster caused by
from the Esch-Cummins bill and the
story is complete.
Fruit Growers
The fruit growers in Eastern
Washington find themselves as hard
hit as the lumber industry. The
great apple crop of this state, &C
cording to leading fruit growers,
cannot be marketed in the east with
out irreparable loss to apple grow
ers, under the 25 per cent increase
in rates.
Grain Growers
With the price of wheat falling,
the grain growers are appalled, at
the loss to them resulting from this
increase in railroad rates.
Buyers of Building Material and All
Manufactured Goods Suffer
The great percentage of goods sold
in the west are made in the east.
New rail rates have caused a hori-
zontal advance of so cents hundred
pounds in all steel building mater
ials. This is true on practically ev-
cry article we use-shoes, clothing,
hats, furniture and dry goods. The
burden of the Esch- Cummins bill can
not be estimated.
Esch Defeated in Wisconsin
Congressman Esch, one of the
authors of the bill, went down to
defeat in Wisconsin, because Wis
consin farmers, small business men
and workers came to realize the in
|. iquity Of bill guaranteeing six per
cent profit on eight billions of dol
lars of watered railroad stock.
Cummins Facing Defeat
In a rock-ribbed republican state
Iowa-the farmers, small business
men and workers are consolidating
to defeat Senator Cummins because
of the disaster brought to Iowa by
this indefensible railroad guarantee,
foisting impossible rates on both
producers and consumers of the nee
essities of life.
l ask you to explain your vote on
and advocacy of the Cummins-Esch
bill. l challenge you to debate with
me at any time and place this mo-
mentous issue of railroad transpor-
tation and disprove, if you can, the
correctness of my statements.
Private ownership of the railroads
of the United States has failed and
the government should again resume
control.
That is what saved the situation
in the winter of 1917-18 when the
fate of the world was dependent
upon Americas ability to get sup
plies to Europe, and that is the
only thing that will save the trans