The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-12-18

had been as expensive as private OPT
Grafton was during six months after
the return Of the roads, the deficit for
the 26 months of government opera
tion would have been about $4,00O,-
100000, or over four times the actual
deficit.
Who Gets Velvet?
THE interstate commerce commits
sion states that one and three -tenths
per cent of the number of stockhold-
ers in railroads of this country hold
about one-half of the number of
shares of stock Under the Cummins-
Esch law most of the velvet goes to
less than one and one-third per cent
of the stockholders OF the chief rail-
roads-s,301 persons. who own more
1920, on Oct. ?, month after rate
increases went into effect when they
were 1414 points above their low for
1920. 1ndustrials without any guar
antee were then 14.S4 points below
their high for 1920.
Hits Cost of Living.
''Under the Cummins-Esch law
these few stockholders of the railroads
through increased freight rates, and
rob the American people-farmers
workers in the factories, on the rail-
roads, in the mines and in the offices
of most of the benefit they might
receive from the reduction in prices
farmers receive, and from the lower
prices at which many staple commod-
tiles are being sold. The Cummins-
Esch law keeps the cost of living at
least four or five billion dollars
higher than it would be If the raids
were returned to unified government
operation.
Railroads are Favored.
Under the Commins-Esch law
much freight travels the longest route
because every road is seeking to get
all the traffic it can, even 1t the
freight rate or the passenger rate Is
the same for a roundabout trip zoo
miles longer than another route Whlch
is direct. 1t costs to carry freight and
travel that extra 200 miles. Under the
Cummins-Esch law every operating
expense of this sort is paid for and
then the stockholders are guaranteed
six per cent on the aggregate value
of the railroads, which includes sew
eral billions OF Watered STOCK.
Much Waste and no Care.
'Under the Cummins- -Esch law the
greatest waste and the least care i
encouraged because the government
guarantees dividends after all the ex'
penses are met. Under unified gov
ernment operation there is much less
movement of empty freight cars wh1ch
is A. tremendous expense. Under the
Cummins-Esch law scores Of thou
sands Of empty freight cars have te
travel half way across the continent
to get back to the line to which they
belong.
Under the Cummins-Esch law rail
road directors and stockholders do no.
live by railroading alone, They may
earn their stockholders bread tna'
way-little incomes Of $25,OO0 u
$4,000 and up-but they get thei1
cake by being directors and stock
holders in industrial and. financ1a
companies with which they deal a!
railroad directors Sand from which
they buy supplies for their roads. Tnf
public has to pay the entire cost.
How They Inter4ock. -
1.-The interstate commerce. commits
sion discovered the following facts re-
garding the relation Of railroad di
rectors to other railroad companies
and to financial and industrial corpor
atoms, in 1918: :;
Thirteen New York Central Sdirec
Continued on Poge T,oo,,
.. s-, 4. ~ .----..:. s-.:.>.;