The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-02-07
THE LIMITATION OF RAIL
ROAD EARNINGS

Hon. EdSar L.. clark. senior m''''''
If IN. ln,crS;a;c commerce" |"hfh'SS'"'''
and regarded throughout tn" cou"''S
an. nf ,hr ahlcSt authorizes OF the
American tranSyortai:cu system "n-
dorsrs section sin Of IN" Cu'a'h'"S o''''
nroy:d:ng for a guaranteed r''"r" v"
railroad Investments. and umt'hg N"e
an,oun, If the return Of .: or per
cent. Mr.. clark = firmly convinced '""'
som. PROVISION OF this kind is necessary
TO prevent bankruptcy "t the raiiro@oS
u,i,biu a short period after their return
90 ,ri,,fr ownership and at the same
,i,,, ,r,tcc, tho public from unfair and
discriminatory rates. Hr believes that
the railroad business OF the country
should be regarded as whole. a great
nuhlic business carried on for the ocn"-
II, Of tho people.
MANY different railroads naturally
tan territories originating dircrent
kinds Of freight. operating under widely
different conditions. and performing
different kinds OF service. \ transport
tation rate between the Ohio river ana
The Atlantic seaboard. for instance that
would be profitable 10 railroad hand
ling a particular lin" Of freight ana
nassing through a very rich and hlGhIy
d.ycIoped territory. might be very un-
profitable to IA railroad going through a
poorer territory. handling pu'N'eF
freight. and operating more costly
line 70 build. and 10 keep in repair let
the railroad going through the poorer
country IS gust as necessary Tor Inc ser
vice to people living IN that section as
the railroad going through the rcher
country is TO those who live along its
line and enjoy KS benefits. Uniform
ratesscanrot be made To bring uniform
returns. and railroad investors must he
assured OF a reasonable return II rail-
roads are TO be kept up and service is
10 be rendered 70 the public Tho only
escape. therefore. from bankruptcy 70
less fortunate railroads on the one
= hand. or from excessive profits TO the
more fortunate railroads on tho other,
* the guarantee Of returns assuring a
& small but reasonable profit TO the weak
.r railroads. and a limitation by tax
ation Of the richer and more fortunate
lines. On this subject Mr.. Clark says;
The only way that the unprosperous
roads can be afforded real relief Is by
hxin1 a limit on tho amount which the
more prosperous roads may retain out
OF their earnings under the established
rates Some say that this is unconsti-
tutlonal But | do not SEQ any great
difference in principle between that pro-
pnsal and the policy We have been Pur-
suing In other directions. For example.
we have been collecting excess profit
taxes on the one hand and lending
money in farm loans on tho other. or We
have been collecting income taxes grad
ed in percentages according to the s'z"
OF the individual income.
Moreover, the plan proposed Is just
what would result IL a single COrp"r-
alton or the government owned all tn"
railroads The aggregate revenues, IN
that case would be spread over all the
properties. although some OF them
would earn more than the average and
some less.
THE necessities for moro ro-ordIa-
ton OF our systems OF transportation
have been demonstrated. and II seems
10 me that the best way OF accomplish
ing this is By having an established
recognized. reasonable level Of rates aud
a limitation on the amount which any
carrier may retain. ! have been and am
AKainst the proposition OF taking tho
excess earnings from tho prosperous
roads and giving them 10 the unprospcr-