The Carlisle independent. (Carlisle, Ark.) 1905-current, 1920-01-01
THE NATIONAL CAPITAL
Senate Passes Cnmmins Bill
(By j. E. jones'

a hard tussle, but finally got
through the Senate before the hol-
iday recess. The House having
passed the Esch bill the two meas
ures are now being considered in
conference, by committee repre-
senting the two legislative bodies,
and there is strong hopes that an
agreement may be arrived at so
that the railroads may go back to
private management on safe and
sane basis. The debate on the re-
turn of the roads was eventful in
Congressional proceedings, since
the discussions were rich in I'M
folding every feature Of the indus
trial situation, and the controver-
sial points were thoroughly
threshed out. When it looked as
though the legislation might go
over till 1920, Senator Cummins
caustically reminded the Senate
that it was the known habit Of
Congress to delay everything un-
til the necessity becomes obvious
to even the most Indifferent
mind. . He warned his colleagues
that if the railroads were turned
back without prospective legisla-
ton, that chaos would follow, anr
said that if the roads should be
returned without effective legisla-
ton they could exist about a
month, and then they would fall
into hopeless confusion, and two
thirds of them would be in the
hands of receivers.
Senior Kellogg of Minnesota,
furnished some Illuminating figure
on the railroad situation, and he
told the Senate that he had learn
ed from the Interstate Commerce
Commission sources that out Of
1865 Glass One railroads 109 failed
during the first three quarters of
1919 to earn their fixed charges
for that period. In other words
instead of earning a surplus for
the payment of dividends to stock
holders, they have not even
earned their interest charges and
the stockholders would thus be
left with a deficit instead of a sur
plus. The balance over fixed
charges earned by the remaining
81 roads is not sufficient by $780,
100000 TO overcome the deficits
of the other 10S
These tables show that practic-
ally two-thirds Of the railroads Of
the United States must inevitably
90 into the hands Of a receiver I'M
less their conditions are improved
and these are not the poor rail
roads; said Senator Kellogg, they
are such lines as the Pennsylvania
the Baltimore & Ohio, the Great
Northern, the Southern Pacific
and many others. The Govern
nent took over these railroads IN
a solvent condition, and while, of
course, it has paid. during its OPP
Grafton, fair rental for the prop
critics, it has increased the operat-
ing expenses 50 greatly that when
they are turned back they will be
bankrupt and cannot from their
earnings pay their operating ex-
penses and fixed charges, without
one dollar for dividends. A rail
road is worth what it will earn.
We have no right to take over
a public service corporation and
use it for Government purposes,
increase its operating expenses so
as to render the property valueless
and turn it back without any REM
edy. Furthermore, should this be
done, afnancial collapse IN this
country is bound to follow, and as
the bonds or these railroads are
held in savings banks, insurance
companies, and by millions of in
dividuals, and large basis OF
credit, the greatest care should be
taken to preserve their integrity.
/ wish to save the railroad sys-
TENS of this country from utter
bankruptcy, because railroad eff
ficiency is needed on every farm
and in every village and in every
single industry that exists in the
country; and | doubt if Senators
realize the serious condition con
fronting the country | do not
care what basis of value you take !;
| will take the valuation fixed by
any board in the world that is fair
The railroads today are not earn
ing anywhere near 4 per cent up
! -, +lo3,. 20 f,,a Etra,,xrO13o l-uovre