The Washington times., 1920-09-27

+~-~S ~@so s"~Ae~~~~ - 1T
per cent.
Thsss were the only advances In
either freight or passenger rates OF
dered or established BY the Rsilroso
Administration during the t~erty-
six months that II controlisos tns
railways, As the rates Of isio foi
both freight ana passengers assrASsu
the lowsst on record and the only IN
crease In those rates previously 60
tAbiishsd Was the advance OF 10 per
cent ID freight rates only suthori1so
by the Interstate Commerce Comini'-
sion as Of June !. 1917, and as inc
average price OF commodities as
shown by Dun's Index Number IN
creased from 1850 on January i,
l9ls. TO 25s.0lS March !, lsso' OF
about v0 per cent, 1T Is plain that
the United States Railroad Admins
tration succeeded In providing the
American people with the cheapest
they had ever en-
Joyed. measuring the cost or what
In terms OF the com
modities carried. which Is to say that
while the railroads were under the
control Of the Government a bushei
OF wheat or a bale OF cotton or = ton
OF coal or anything else was carried
than ever before In the history OF
the country.
This was the more remarkable
since the increase in the cost OF liv-
Ing made IL necessary and just that
the director-general should raise the
hourly wages of the railroad EN-
ployes an average OF about 100 per
cent over what they were receiving
when the Government took over the
roads, on January /, 1918.
Despite the fact that the advance in
wages was paid as from the LIST OF
January. 1918, while the advance In
rates only took effect five and one
half months later. the net revenue
earned by the. railroads and other
under the control OF the
administration during the
nrst year of Government operation
was only $2381s4.04O less than the
rental paid by the Government
Surely this is q small sum to have
paid for the war service that the
railroads rendered and the enormous
amount of transportation furnished
at a cost that was, as above stated,
the lowest on record.
1t represents the much talked Of
loss" that the Government sustained
In operating the roads during the
war, for the year 1918.
SERVICE CHEAPLY BOUGHT.
Because Of. the Stacking OF bosi-
ness activity that followed the armis-
tice there was less traffic for the
road to carry during the last four
teen months OF Government. opera
ton, and the deficit for that period
was $633,771 ,5O4. The total loss" in
Cured by the Government in opera
ting the roads during the entire
twenty-six months they were under
the management Of the Railroad Id
was. therefore, 3s99,956,4 ,444.
956.444
While it Is doubtful whether any
other war service bought with money
was as valuable or as cheaply OBJ
tanned as that which this sum Sc
cured, 1t is important to note that 1t
includes a loss Of oven $38, ,OOO. 900 in
CURED in conducting the previously
business Of the express
and deficit Of $2,44O, 739
resulting from the operating and de-
velopment of inland waterways for
merly neglected or abandoned. and
) $4,000 spent in developing and
operating coastwise carriers by water.
There are sons thoughtless or in
tentionally untruthful critics who are
fond of saying that the Railroad
has cost the Govern
ment anywhere from one to two
billions of dollars, the amount named
upon the creduIity Of their
audience or their own fervor ip mis-
In support OF such statements it is
alleged that Congress has appropri-
ated altogether 31.0006000. 900 for ths
railroads since January, 1918. and that
it will be called upon to provide "sev-
eral hundred millions more before the
bills are all paid"
Those who would thus mislead the
public omit to explain that 81 ,O31, ,S99, =
451 has been loaned or advanced to
the railways to be spent for equip
ment and permanent improvements
and that for this sum the Government
holds railroad obligations that are
good and payable in ten years avith
interest at 6 per cent. which is below
the rate at which the money could
have been had in the open market,
If, indeed. it could have been obtained
upon any terms
SAVED THE ROADS.
They also omit to explain that the
Government paid a. rental for the
roads equal to their average net ope-
rating revenue for the three most
profitable years they had ever en-
joyed, namely, 1918, 1916 and 1917,
and that the income thus guaranteed
to the proprietor companies enabled
them to meet. interest payments and
continue dividends that were in teop-
ardy thus protecting the invest men t
market against the disaster that
threatened during the trying financial
times of 1918 and 1919,
This is brief and incomplete rec
ord of what the Railroad Administra-
tion accomplished. During the TWEEN
ty-six months of its existence IL cost
the Government $500. .95S. S.444 This is
an average Of $34,60o,000 per month,
or S415 ,2OO. 900 = year. 1t Is less than
cne-third of the sum that the people
must now pay annually to meet the
increase in rates granted by the In
terstate Commerce Commission Au-
gust 1. 1920. This increase. it is
estimated, will yield $1,000, 900, 900 a
year which viii have to come out OF
the pockets of consumers and trav-
elers. 1t includes, 1t is to be ad-
mtted, a wage advance that will in
crease the annual cost OF operation by
S626, ,0OO, 900. but even making allow
ance for this IL looks as IL private