The Delta independent., 1920-07-16

income of the roads was virtually
wiped out. The transportation act
was passed only a week before the
railways were returned. Therefore,
almost up to the day they were re-
turned there was such uncertainty as
to the future that the arrangements
could hardly take any important steps
to provide for the resumption Of pri-
vate operation. Considering all these
conditions, including the strikes, the
] railway arrangements have done much
better since private operation was
resumed than might reasonably have
been expected.
1t is, however, far from my purpose
to imply that the problem confronting
the railway companies and the public
| is anywhere near solved. Years of
good understanding and close cooper
alton between the railway manage
ments, the railway regulating author
ities and the public will be required
| to solve it. Probably the factor which
| should give the most concern Is the
great inadequacy of the present facili-
| ties of the railways to the demands
of commerce. Every day that those
who represent the nation in govern
mental affairs delay to adopt the
, measures necessary to enable the rail-
roads to expand their facilities, we
are counting disaster.
The railways need large advances
in rates. but the need for them, Mr..
FELTON, said, is not chargeable to the
railway companies, but to the fact
that under government control operat-
ing expenses increased vastly more
than rates.
While it is necessary in the public
interest that railway rates should be
made adequate in all parts of the
country, said Mr.. FELTON,, 1t is pecu-
Iiarly essential that this should be
done in western territory. This ter
ritory needs much more extensive
railway facilities not only for the
transportation of the commodities that
it is already producing, but to open
up extensive territories which are
now undeveloped. Within recent
years the growth of the railroads of
the west has practically stopped, and
in several states the mileage torn up
or abandoned has been greater than
the new mileage built. Four years
ago, in 1916 the western railways
earned $3.50 900 900 net operating in
come, or an average of 51a per cent
upon their property investment at
that time. The amount required to
yield per cent upon their present
property investment account, and the
amount of net operating income which
/ act-inO f0 allowed Tn
earn. is s53s, 100000. This is but $751;
10000 more than they actually
earned in 1916, and one-half of this
additional revenue is needed to pay a
return upon additional investment
which has been made in their proper
ties since 1916. Only the remaining
$39. .000, 900 is being sought to enable
them to earn a higher rate of return
than they earned four years ago. In
view of the great changes which have
! ocorrSed in financial conditions since
four years ago. it is not obvious that
these western lines must be allowed
to earn higher rate of return than
they earned four years ago if they are
| to be enabled to raise the large
amounts of new capital which they
must have to expand the facilities of
their present lines and to build need
ed new lines?
In my opinion. the decision of the
Interstate commerce commission In
! the present rate case will largely de-
termine the future development of
our railways. and. the future prosper
ity and development of our country.
|