The New York herald., 1920-01-30
TAFT SEES MENACE
IN R. R. ATTITUDE
Regards Opposition of Strong
Roads to CumminS Bill as
Shortsighted.
BY WILLIAM III. TAFT.
(SrecfdL Deandfch TO fha HerQLd.l

Especial Despatch to tho HerdldJ
1 PHILADELPHIA, Thursday-The rail-
road bill is still in conference, and the
constructive features of the Cummins
measure are being whitfield down by an
opposition made up of elements which do
not agree with one another and. with very
different motives, are opposing this really
meritorious solution OF the present hope
! less situation
| The strong railroads. which with excep-
| tional properties and exceptional oppor-
tunities have been able to survive the de-
| pressing circumstances of the last ten
or twelve years. do not permit themselves
to see that II is greatly In their INTEREST
1 to consent to reasonable reductlon Oh
! their probable income in order to secure
/ stability fer the whole railway system.
The public cannot be expected permanently
| to submit to a condition in which there
! are a few great lines that can survive and
i in which the great body OF the railroads
will sag further and further into poor
and ineffective service.
l The inevitable result Of tho opposition
Of these great lines. il successful, to any
constructive measure in which they must
! sacrifice something of their prosperity for
j the stability of the whole will be govern
ment ownership. Five and one-half per
cent, they insist. is not enough to attract
investors. The 5is per cent Is to be ap-
piled to the whole value or the railroads.
They have had in times past, and now
have. a bonded indebtedness in which the
interest rate Is considerably less than 5ls
per cent. The difference will be added to
| the dividends Of the stock and give them
! a rate of 6 and per cent. III these rail-
roads object to the uncertainty ot the
security in the expression "as nearly as
may be-" and were to press for words or
greater security in this regard and with
hold their opposition to the Dill, they
could probably secure them.
Valuation May Exceed Vested Capital.
These great paying railroads which
make a larger per cent OF income than
5h per cent will probably find that their
valuation. fairly taken by the Interstate
j Commerce Commission. Will exceed the
amount Of their invested capital as ndi-
i Gated by their bonds and stocks. This
would add to the percentage to DO re-
!, ceived by their bondholders and stock
| holders They object, too. that the valu-
alton of the Interstate Commerce Com
mission has not been completed and would
not, therefore, be available. Propapiy
until that time the property investment
j account which is available could be used
for the purpose in order to set the reform
going at once.
1 Another objection is that the appropria-
ton of the amount over 51s per cent 10
the railroad contingent fund Is an ap-
preparation Of the excess In the case OF
each company. whereas each company
often has to support with guarantees
weaker lines in It's system, and that pro-
1 vision should be made for this, so that the
system could take care Of itself before
i the railway contingent fund receives the
excess. or course, 1t is difficult to dis
cuss the merits Of such an objection or
proposal without a greater knowledge OF
details than is possible for layman to
'Ihave; but II the great railway companies
were in good faith to attempt through
their advisers to help this constructive
measure along in the interest OF the
i whole railway system, rather than from
their particular selfish standpoint. such
adjustments might be effected.
! Another objection to the guarantee Is
j that it lasts only five years, when 1t is
| to be revised by Congress. II no reduc-
ton can be made except by affirmative
action Of Congress, which would include
| the President, this ought to be security
i Of good faith In dealing with the question.
i On the other hand, II is proposed by the
House committee that the Interstate
Commerce Commission shall revise IL at
the end OF five years. 1t would seem to
! be unfortunate not to make the question
Of a revision a question Of sufficient i'm
! portance for Congress to consider and de-
j eide it. One OF the important features OF
i the bill should be to lift the Interstate
i Commerce Commission out OF the haoit
of thought that it has drifted into. and, py
i giving the commission new basis OF
action. to secure greater justice for the
railroads. and so better service, ana SO
better return to the public.
Attitude OF shippers.
i OF course, on the other hand, we find a
body of shippers who are objecting to any
| ,t oil
vide their influence, then we shall nave
the same old situation, with no real help
in the new measure.
Persistent word comes from washington
that the House conferrees are going to
defeat the ant-strike provision. or course
one in opposition to such a reform Is in
q position of advantage In fighting IT,
The courage with which 1t is carried
through the Senate may well form les
son to the hating members OF the House
Let's hope that the provision Will not De
sacrificed in conference and, at least
that It will be sent back to the House 10
make the members record themselves
and show those who have backbone and an
appreciation OF the need of DEFENDING the
lives of the whole public against the
Iduress Of a class not willing to subordi-
mate its class desire to the adjudication
Of fair tribunal.
In these days. when forward move
mentS are necessary 10 Ilecl lhc
cies of the war. when new devices must pe
adopted to achieve the readJustment &c
the new conditions, the effectiveness oi
popular government is on trial II each
selfish interest. that Of the big railroads
that of the shippers, that of the depressed
or bankrupt railroads, Is to have an IN
fluence that shall exert itself in way
to defeat the greater public interest, then
friends Of popular government may wei
be discouraged. OF course. the nature
of our government requires compromise
hut II does not require the compromise
of everything affirmative and progressive
and a yielding to the timidty OF those
who would supply and satisfy crying
need by laying 1t on the table.
, (Copyrighted 1920 by the Philadelpha PUBIC
Ledger Company