The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-04-22

| yate corporations Personally. | had
much to do with the preparation and
passage OF this law, and while it con-
tains some things which do not meet
my approval and omits some things
which think it, ought to contain, it
is, upon the whole, IA great forward
step IN progressive and constructive
Legislation covering in a compreheu-
sive way the most important subject
winch mas ever been presented to the
congress of the United States. | &C
cept my full share of the RESPONSE.
pillty which attaches to the enact
ment of the law. and I am ready here,
now and everywhere to defend 1t.
Inc hrsts concern of the American
people in both domestic and foreign
commerce is for adequate transporLa-
tlon. Many things have occurred
during the construction and capitali-
cation of our transportation systems
which every right-minded man must
condemn. There is a remedy for
some of these wrongs, but it is obvi-
Gus that some of them have passed
beyond human power to repair. What
we ought to do now is to make it
absolutely sure that these wrongs
will not be repeated and that the pro-
ducers and distributors of the coun-
try are provided with facilities for.
transportation that will enable them
not only. to maintain their present
high place in the commerce Of the
world, but to increase year by year
the volume of production and distri-
button. This is the thought which
was uppermost in the minds of the
men who formulated the present rail-
road law. Remembering that we had
one mind, substantially, with respect
to the return of the roads to their
owners, the next and most vital in
quiry was: How can they be returned
so that the farmers, the manufactur-
ers and the merchants OF the country
can secure the prompt and efficient
movement of the immense traffic car
ried by our railway systems? This
question overshadows all others and
must occupy the first place in the
minds of all the people. A very large
amount Of capital, the estimates
from $4,000, 100000 to $780,
000,000,000 has already been invested
in our railroads. II the problem which
we were called upon to solve had re-
lated only to the capital already In
vested, it would not have been 50
difficult All of US know, however,
that during the year 1920 there must
be expended upon the railroads not
less than $70O,000,000 and that
amount is named not because it is
all that should be expended, but be-
cause it is all that can be expended
The car shortage, the engine short
age, the warehouse shortage, the side
track shortage, all these inadequacles
must be supplied just as soon as il
is possible. l venture to say that
the farmers of Iowa have. In the last
twelve months, suffered more loss on
account of their inability TO secure
prompt and full transportation than
from any other one cause, and they
above all the people of the country,
ought tos~be interested : ii bringing
about such a condition as will pro-
tect them from this injustice in the
future Assuming what everybody
admits, that during the present year
the railroad companies must either
borrow or secure from the issuance OF
capital stock $700,000,00O or more IN
order TO make it possible for them 10
do what the whole country demands
they shall do and that they must have
81 900 100000 next year for like pur
poses and so on for every year, now
are they to get the money? RecoS-
nizing the chaos of the present imam
cial situation, the railroad Dill
short time loans under the
of the interstate commerce
commission, of $500, 100000. After
exhausting this source, they must de,
pend upon their ability to borrow It
from private individuals. The whole
purpose of the law in this respect
was to so stabilize the credit OF the
companies that they couio
secure the money which they must
have. This money is and VIII De III
the hands OF men and women VINO
may or may not invest 1t in railroad
enterprises, according to their plea
sure. They will not loan 1t, of course,
unless they believe that they Will get
a fair return. | impress upon you,
and through you upon the people OF
the state. again the truth that While !,
we can go down to the limit or con
stitutional confiscation with respect
10 the capital already invested ID |
railroads, we cannot compel tnose
who have money to put it into ralt-
road securities; and what we trled
10 do was to make it possible for the
abroad companies TO provide them ,
selves with the funds they must have
r they are to render the, people the
service essential to their safety and
development To accomplish this end,
The law establishes a rule of rate
making for the guidance Of the inter.
tate commerce commission, to CON
tinue during period of two years.
The rule directs the interstate com,
MERGE commission to adjust; and
MODIFY the rates of transportation SO
hat they will, as nearly as pract1c-l
HE taken as a whole,ior for the sew
,ral districts into which the commits
.ion NAV divide the country as a
whole equal to five and one-half per
,ent upon the value Of the railroad
,ronertv. as determined by the inter
tate commerce commission. This
loes not mean that each railroad Will
arm a net income OF five and one