Vashon Island news-record. [volume] (Vashon, Wash.) 1919-1954, 1921-10-28
RATE OF RETURN EARNED
BY THE RAILROADS OF THE
UNITED STATES ON THEIR
PROPERTY INVESTMENT:

II will thus be noted that during the
years when other industries were max.
ing very large profits, when the prices
Of farm products and the wages OF
labor were soaring to unheard OF
heights, the earnings upon railroad in
vestment In the United States were
held within very narrow limits and
that they have during the past four
years progressively declined.
The Roads Handicapped More Than
Other Business.
2-The railroads are responsible to
the public for providing adequate
transportation. Their charges are
limited by public authority, and they
are In very large respects (notably for
labor compelled to spend money on
a basis fixed by public authority. The
margin within which they are per
mitted to earn return upon their in.
vestment or to offer inducements to at
tract new capital for extensions and
betterments is extremely limited. How
ever much the railroads might desire
therefore, to reduce their charges in
times Of depression. it will be perceiv.
ed that the limitations surrounding
their action do not permit them to
give effect to broad and elastic policies
which might very properly govern
other lines OF business not thus re-
stricted.
It has been urged upon the rail-
roads that a reduction in rates will
stimulate traffic and that increased
traffic will protect the carriers from
the loss incident to reduction in
rates The railroad arrangements can.
not disguise from themselves that this
suggestion Is merely conjectural and
that an adverse result OF the expert.
ment would be disastrous not only to
the railroads, but to the public, whose
supreme need is adequate transporta'
ton. Consequently the railroad man.
agement cannot feel justified in plac.
ing these instrumentalities, so essen
tial to the public welfare, at the hazard
OF such an experiment based solely
upon such conjecture.
Farmers Especially Need Lower Rates.
It is evident, however. that exist
ing transportation charges bear in
many cases disproportionate rela'
tionship to the prices at which com.
modities can be sold in the market and
that existing labor and other costs OF
transportation thus imposed upon In.
dustry and agriculture generally bur-
den greater than they should bear.
This is especially true OF agriculture.
The railroad arrangements are feeling
sensitive to and sympathetic with the
distressing situation and desire to do
everything to assist In relieving 1t
that Is compatible with their duty to
furnish transportation which the pub
lie must have.
At the moment railroads in many
cases are paying 40 cents an hour for
unskilled labor when similar labor is
working alongside the railroad and can
easily be obtained by them at 20 cents
an hour. The railroads Of the country
paid In 1920 a total Of considerably
over 1,300.000,000 to unskilled labor
alone. However desirable 1t may be
to pay this or that schedule OF wages,
it is obvious that 1t cannot be paid out
OF railroad earnings, unless the In.
dustries which use the railroads are
capable OF meeting such charges.
The railroads. and through them the
people generally, are also hampered In
their efforts to economic by a
schedule OF working rules and condi.
tons now in force as heritage from the
period OF federal control and upheld
by the railroad labor board.
These conditions are expensive, un-
economic and unnecessary from the
point of view OF railroad operation and
extremely burdensome on the public,
which pays the bill, This schedule OF
wages and of working conditions pre-.
vents the railroads from dealing eQuit-
ably with their labor costs in accord
ance with rapidly changing conditions
and the great variety of local consider.
atoms which ought to control wages In
different parts OF the country. The
railroads are seeking to have these
rules and working conditions abro.
gated.
The railroads will seek a reduction
In wages now proposed, by first re.
questing the sanction Of the railroad
labor board The railroads will pro.
coed with all possible dispatch, and
as soon as the railroad labor board
,b,ll hovo rygvap it- nceart IN tho "a.