The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1920-10-08
SENATOR Thinks
RAILROAD LAWS
WISELY FRAMED
Authority on Interstate
Commerce Believes
Present Legislation Ad-
mirably Designed to
Protect People.

Washington, Oct. 7-(Special cor
respondcnce. )-"If there ever was a
statute enacted which not only had
for its purpose the protection of the
people but which has had the effect
to protect them, this is the statute"
Such Is the language used by Sena-
tor Albert B. Cummins, chairman of
the senate committee on interstate
commerce, in characterizing the rail-
road act of 1920 concerning which
many Misrepresentation have been
made Senator Cummins shows in
support under private operation, they
earned q net operating income, for
all the railroads taken together, of
substantially per cent upon the
property investment account, where
as the transportation act of 1920, I'M
der which railroads were returned to
private owners, limits the total net
operating income to 5H per cent and
provides that If any roads shall earn
more than per cent the surplus shall
be turned into the United States treas
ury. Since many roads will earn less
than 5H per cent it is obvious that
the total payments made by the Amer
lean people as patrons of the railroads
will aggregate smaller net operat-
ing income than was realized BY the
railroads in 1917.
In careful review of the trans
portation act, Senator Cummins
shows that It is nonpartisan in its |
authorship although he acknowledges
that the Republican party, being in |
2 majority in both houses Of congress.
is responsible for the legislation. He
points out that two Democratic sena-
tors, Joseph T. Robinson of Ar
kansas, who was chairman of the re-
cent Democratic national convention
and Atlee Pemerene, of Ohio, next
% the ranking Democrat on the inter-
state commerce commission, were &C
tive and effective participants in the
framing OF the act. Moreover. the
measure had the support of Senator
Underwood of Alabama, the Demo-
cratic floor leader.
= Railroad Needs Bic,
Senator Cummins also sets forth
facts showing that in 1920 when the
return of the railroads to private OPP
Grafton was imminent, it was admitted
oy every person interested in the SUBJ
lect that there was immediate need
.or 100000 miles of new rails; ESQ.,
~ new freight cars; 1000 new pas
senger cars; 1000 new locomotives,
Ind enlargement of facilities in cor
responding degree, all of which if
PROVIDED would cost more than ST.
,UU'vOO,OOO. This amount of increased
equipment immediately was deemed
impossible OF accomplishment but il
vas considered practicablev to add,
Turing 1870, equipment and facilities
which would cost some 5000, 100000.
This financial situation" says SEN
tor Cummins, was further perplexedl
y tbs knowledge that in every yearI
y the future many hundreds of mil
ions OF dollars then and now repre-
ented BY outstanding railroad bonds
'ouid be maturing and that these
1aturities would have to be met|
lther by payment or extension if the
ailroads were to be kept from the
ands OF court receivers. While
aturally we wanted to do justice TO
already made in railroad
:curities we were not much concern
about that for we knew that the
ourts under the constitution would
rotect the property already in ex-
tence from confiscation no matter
hat the terms Of our legislation
light be. Our minds were fastened
pom just one inquiry, namely; howl
'uld the new money or capital
as already indicated to at
asst 5000, 100000 in 1920, a billion
'llars in 1921 and billion each year
r many years to come, be secured?
the railroads failed to obtain it
ey would not suffer especially, but
{ people who had commodities for
which could not be
owed on account of shortage in
uipment would suffer beyond esti-
ate. This new money was, and is,
course, in the hands of men and