The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1920-08-26
THE NATIONAL CAPITAL
BY j. T.. Jones.

i'ohI e'eutS THAT mas occurred
since the war, inasmuch as it seeks
TO place the railroads of the country
on a strict business basis that will en-.
able them to operate and maintain
their properties. pay their workmen
the wages that have been fixed by
government and other official tribu.
mails, n return to their owners a net
operating income of six per cent on
a valuation of SIS, 900, 900, 900.
Naturally, the biggest question in
our industrial and economic life, has
been the settlement of the tr%ansporta.
ton tangle. After months of constant
study, the commission has made a dis.
position of matters hat covers all
questions Of financing the carriers.
The railroad deficit Of approximately
$75,OOO,O OO a month, which has been
met by taxation Of the public, is wiped
out, and the increased charges to ship.
pers places the burden where it be-
longs. In other words the taxpayers
load is lightened and the shippers find
that their rate has been raised the
amount necessary to meet all imam
cial requirements of the roads. Thus,
for the first time since the railroads
OF the country have been under pub
lie control, they are in a position to
sustain themselves, and at the same
time the rates that have been fixed
have been made by a decision of the
Commission, after hearing shippers
representing every large industry in
the country, ali of whom have agreed
that the time is at hand when the in
tent of the transportation act to make
the railroads stand on their own re-
sources, must be put into effect, since
it represents the only common sense
course.
The Interstate Commerce Commits
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 a firm foundation, which
would at the same time be fair in
every respect to shippers and taxpay-
ers. While no one likes higher rail
road rates any more than they want
higher prices for wearing apparel and
ton expressed in all official circles in
Washington over the fact that the
railroad question has apparently been
solved, so far as financing and the re
lations with the public and the ship
pers are concerned.
Immediately following the Interstate
Commerce COMMISSIONS order fixing
permanent freight and passenger
rates, the cry went up that the cost
of living would be increased. As a
matter of fact the railroads are re
c~eiving no more money under tie 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 prl-
vate ownership. SO that every dollar
added to the cost of living is a dollar
less to be paid in taxes, and the Lord
knows that there is nothing that needs
pruning down more than taxes. In this
instance the government guaranty was
no better than a subsidy to the roads,
and was given in lieu of Jileir proper
support by their patrons. The cOndi-
ton would be much the same if the
government paid deficits for the steel
mills, coal mines, or any other public
serving industry. Thus, by the re-
cent decision, the government will be
relieved of this guaranty after Sep
TENDER /, and the amounts necessary
to pay a return on the capital invested
in railroads will be paid by those who
receive railroad service rather than by
the taxpayers.
Six hundred million dollars of the in
creased revenues will be required TO
pay increased wages, and about $780,
900, 900 is left toward net operating in
come. which with the 5000, 900 900
earned by the roads during the con-
structive year ending October 81, 1919,
on which their estimates were based,
would produce the loo, 600, 600 70
which the commission finds the roads
are entitled under the law.
A man named PonZi lives in Boston.
He surely never got that name wished
on him anywhere near Boston harbor.
Ponzi was long-headed enough to plant
large sums of money in different Euro
pean countries, and after he had estab-
lished his banking connections abroad
he began to deal in foreign exchange.
American dollars are of full value.
These he converted into deprecated
foreign currency. Then by switching
his credits from n country TO an