The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-02-21
u. S. Operation Costly,
But Was Worth Price,
Esch Says
DEFENDS BILL FOR
RETURN OF LINES
Warns Of Receiverships
If Legislation Is Not
Passed

WASHINGTON. Feb. Railroad
administration estimates place the net
cost to the government Of federal
control OF the railroads at ss35. 5.oOU.-
600. Chairman Esch. of the Interstate
commerce committee told the house
today In opening debate on tho con-
ference report on the compromise
hill
This ssss. 600 600 viii have TO be
charged on as a war losH." he said.
"One may say Il was expensive. but
u was worth the price Without the
railroads. transportation would have
failed to supply our troops over
sons"
Total appropriations Of approxi-
mRtely ti,y00. .0OO. 900. including those
already made, were tho experience
Of federal control" Mr. Esch said.
but he added that OF these amounts
approximately fl.c5O. 100000 were
investments In the form OF inn
proVemcnts made for the roads and
Tor which they ultimately will pay,
Defends Railway Bill.
Defending the work of congress In
framing the railroad legislation Mr..
EsCh said there had been no slack
ing The conference compromise.
he said. came before the house to-
DAY practically seVch months after
the committee began hearings. The
compromise bill, he asserted was the
original house bill except "one sub
stautive proposition by which q late
basis h fixed with earnings In excess
Of siN per cent ON railroad valuations
being divided between the earning
carrier and the government for the
latter TO use fot weak roads.
referring to present financial
straits OF the carriers, Mt Esch
said that prior 20 government opcr-
alton only sixty per cent ot the roads
earned dividends and paid interest
During federal control. los OF the
115 class one roads did uui earn ut-
trrpst." he added. In 1916 the roads
lacked sixty million dollars Of pa.
ing interest on their iudchtCdnrss,
"Fifly per cent of the roads in this
country would 20 into the hands OF
receivers in three months without th"
government guarantee" MI Esch de-
clHrcd and ! want 20 warn YOU that
rccciNcrships Tor railroads means re-
crINerships for Industrial enterprises
aud other business.
The short lines" ne said. had
been fairly aud generously dealt Win
adding that it they suffered the peo-
pie thcy scr,cd and trunk lines would
suffer.
If~pN i-luns Tor in~~t~.
Details Of the three hundred mu-
lion dollar revolving fund were cN-
planned and the chairman brought a
smile hy announcing that provisions
for free passes for railroad lawyers
doctors aud others stood as hereto
fore.
u expect this one question has xiv.
en- members Of congress more actual
concern thar the most import1n' pro
visions of the conference report h'
declared.
Mr. Esch denied that the govern.
mcnt. under the compromise hll
rutautccd return ut bia per cent
ON railroad investment tie explain
ed that the guarantee was ON actual
value.
Referring to the labor provisions
E-ch declared that the measure con
tanned nothing about compulsory
putting into cncct uf the decisions
Of the labor boards hut that 1T %"
lies ON public opinion. which o
greater than ans legislative DEGREES
Representative Nnrkl"y, democrat
Kentucky. a member of the interstate
(Cuutinurd un page two.l