The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-04-02
RAILROAD LAW FAILS.

RAILROAD LA" FALLS.
After years trial the Cummins-
Esch law is a proven failure. That
much is admitted by the railroad inter-
ests, now preparing for another drive
on congress. Their Hobbies at Wash
ington are framing measures through
which they hope to secure new and
colossal privileges, and their propa-
gandists are turning out a food of ma
terial seeking to establish public
opinion supporting their unreasonable
demands.
The transportation bill has ceased to
serve the purposes Of the financial
group that has played ducks and brakes
with transportation. Under it they Sc
cured approximately a billion dollars
from the public treasury and an in
crease Of freight and passenger rates
which in normal times will net them
more than $1,5o0,0oo,0oo year. In
addition to these subsidies; they have
gathered in other benefits Of great
value. The net result to the public
which has been so generous with the
railroad group is broken down trans
portation system, .demoralized com
mesce, ruined farmers and an army of
five million idle workers.
When the railroads put into effect
the highest freight rates ever enjoyed
by them they were being ofered more
traffic than they could handle. Bust
ness suffered because Of inability to Sc
cure shipments. But the new rates
promptly corrected that condition. They
laid such heavy burdens upon com
MERGE that it staggered and then
crashed. Progressively since Septem.
Der l of last year there has been a
constant dimunition of traffic, reflect.
ing the inevitable. effect Of uneconomic
and unscientifc carrying charges.
The gentlemen who are in control of
the railroads have never been accused
Of undue solicitude for the public.
which has been gouged and exploited
in every MANNER and form that the in
genuity Of the managers. could devise.
Were everything right with the car
riers, there would be no, present de-
mand for new legislation. But. the
short-sighted Spectators who wrought
well but not wisely with the late con-
gress have been forced to realize that
what effects adversely one group of
citizens affects equally all groups. They
are suffering in common with all in
dustry-suhering so severely, in fact
that many railroads are now lettering
perilously on the brink of bankruptcy.
Rates are, as has been said, already
so high that they cannot be increased,
so there is no relief in that quarter.
It is uncomfortable that an effort will
be made to secure additional grants
from the treasury, for there has been
notable reaction against this practice,
overplayed by greedy spectators until
the government finances are in bad
shape.
This brief survey of the railroad
situation leads up to the presentation
Of s. Davies Warfeld, president of the
National Association of Owners o.
Railway Securities, of a brand new
plan to again "save'' the railroads.
He frankly confesses that private own.
ership has broken down and wants to
save the railroads from the ssmenace''
Of government ownership. He would
junk the transportation act with the
exception of the provision that guar
antees six per cent on the highly in
fated book values of the roads. He
has worked out fine scheme to make
everything safe and comfortable for
security owners, but has given mighty
little thought to the stake that the
public is presumed to have in trans.
portation.
Recently Mr.. Warfeld and his asso
ciates organized the National Railway
Service Corporation and secured Del
aware charter. It's authorized capitali-
zation. is $15o,ooo,ooo. Its purpose is
to furnish supplies and equipment to
railroads. In other words, it is to be
gloriied purchasing agent.
Railroad managers, however, did. not
fall for this scheme. They have an
interest in contracts for supplies and
equipments that is soon to be made
tho subject Of official investigation,
when it will in allslikelihood be prove i /