The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1921-08-26

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Here is a brief history of the deal-
ings of the railroads with the gov
eminent recently, which throws light
on the two news items quoted, as re-
cited by Representative Hardy (Dem.,
Tex }, on the floor of the House:
"He (Mr. Fordney) says, and the
other, gentlemen who interrupted him
said, and perhaps correctly, that the
government administration Of railroad
affairs under Mr.. McAdoo and his sue
cessor cost this government a million
dollars day by way of a deficit. Then
want to say that during that time
the railroads did function and carry
freight. l want to say further that
under the Republican bill, known as
the Esch-Cummins bill, those rail-
roads were turned back to the private
owners and operated by the private
owners in March, and that since that
time the rates have been increased, as
stated by my colleague (Mr. Garner)
or the gentleman from Virginia (Mr.
Moore, from 20 to 40 per cent, and
today the people of the United States
are paying not $1O0,OOO,OOO a day,
but, as l said, they are paying more
than $700,000,000 year in increased
freight rates, and no man can escape
the fact that the railroads since gov
eminent control have cost the people
of America far more in freight rates
alone than they cost US in freight rates
and deficits during government con-
troll. .-'.
president Wilson called on the Re-
publican Congress to pass a proper
law by which the railroads could be
turned back to their owners. The Re-
publican Congress dillydallied and de-
layed until finally he had to write a
separate message and tell them that
if they did not pass a law under which
they could be returned he was going
to return them anyhow on the list of
March. Applause on the Democratic
side) And under the stimulus of
that second message, Republican
Congress did pass the Esch- Cummins
bill, and on the LIST of March they
were turned over to the owners under
that law.
"But what was the Esch bill, The
bill first guaranteed the peak of high
prices in profits to Ehe railroads for
six months, after the owners got them
and under that guaranty you first paid
two or three hundred millions to the
railroads, and then you passed another
law calling for some more payments
at once, and before you get through
with it the government will pay the
roads on that six months guaranty
probably over billion dollars"
Mr.. johnson (Dem., Miss.) ~ want
to say, as a member of the Commit
tee on Interstate and Foreign Com
merce, that the government had paid
the railroads $631 100000 under that
guaranty, and in addition to that they
have loaned them $300000,000 and
none of that has been returned. The
railroads owe the Government $721,-
100000. And in addition to that, we
have today a bill before our commit
tee, on which we are holding hearings,
and which the Republican party is
proposing to put through in this Con-
gress, authorizing the Treasury De-
partment to let the railroads have
$4,000 and all this in addition to
the outrageous increase Of freight
rates and passenger fares, which has
cost the American people millions"
Mr.. Hardy. "Then, l want to say
that if the railroads cost the people in
deficits in operation a million dollars
day, or $365,000,000 year, this
Esch bill in guaranteeing the private
owners the profits provided in that
bill has cost the people twice that sum
and more. The Republican bill has
paid them the $600,000,00O, and the
other sums stated by my colleague
from Mississippi; and in addition the
people have been compelled to pay in
raised rates and fares 500, O00, 600 or
$500, 100000 year more than they
paid to the government when the gov
eminent was operating them. tga "a
"The Federal control act. as every
Republican in this House admitted by
his vote, was necessary when it pass
ed. The Esch- Cummins law was
connection of Republican statesman
ship after the war was over, That is
the difference between the two. We
had to take them over; you voted with
US to do it. We administered them
with such economy that they cost the
people even by your say SO only ST.
100000 day, and. you took them
back and gave them to the railroads
on such terms that thew cost the peo.