Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1921-10-27
RATE OF RETURN EARNED
BY RAILROADS OF THE
UNITED STATES ON THEIR
PROPERTY INVESTMENT.

. . =
It will thus be noted that during
the years when other industries were
making very large profits, when the
prices of farm products and the
wages of labor were soaring to UNI
heard of heights, the earnings upon
railroad investment in the United
States were held within very narrow
limits and that they have during the
past four years progressively de-
clined.
Roads Handicapped More Than Other
Business.
2. The railroads are responsible to
the public for providing adequate
transportation. Their charges are linn
tied 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 permit
ted to earn a return upon their in
vestment or to offer inducements to
attract 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 per-
ceived that the limitations surround
ing their action do not permit them
to give effect to broad and elastic pol
icies which might very properly gov
ern other lines of business not thus
restricted 1t has been urged upon
the railroads that a reduction in rates
will stimulate traffic and that in
creased traffic will protect the car
riers from the loss incident to re-
duction in rates. The railroad man
agements cannot disguise from them
selves that this suggestion is mere
ly conjectural and that an adverse
result of the experiment would be
disastrous not only to the railroads
but to the public, whose supreme need
is adequate transportation. Conse-
uuently the railroad arrangements can
not feel justified in placing these in
strumentalities, so essential to the
public welfare, at the hazard of such
an experiment, based solely upon such
a conjecture.
Farmers Especially Need Lower Rates.
It is evident however, that existing
transportation charges bear In many cases
a disproportionate relationship to the
prices at which commodities can be sold
in the market, and that existing labor
and other costs of transportation thus
imposed upon industry and agriculture
generally, a burden 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 it
that is compatible with their duty to fur
nish the transportation which the public
must have.
At the moment railroads in many cases
are paying forty cents an hour for I'M
skilled labor when similar labor is work
ing alongside the railroads and can be cas-
ily obtained by them at twenty cents an
hour The railroads of the country paid
| in 1920 total of considerably over 81, 300,-
| 100000 to unskilled labor alone. However
| desirable it may be to pay this or that
| schedule of wages, 1t is obvious that it
cannot be paid out of railroad earnings
| unless the Industries which use the rail-
roads are capable of meeting such charges.
The railroads, and through them the
| people generally, are also hampered in
| their efforts to economic by schedule
| of working rules ana conoluons now In
| federal control and upheld by the railroad
| labor board. These conditions are expen-
| sive uneconomic and unnecessary from
| the point of view of railroad operation
| and extremely burdensome upon the pub
/ lie which pays the BILL This schedule of
| wages and of working conditions pre-
| vents the railroads from ueaiinS eQuI-
| tably with their labor costs in accord
/ ance with rapidly changing conditions and
| the great variety of local considerations
which ought to control wages in different
| narts of the country. The railroads are
/ seeking to have these rules and working
| conditions abrogated.
The railroads will seek reduction In
wages now proposed by first requesting
| the sanction of the railroad labor board
| The railroads will proceed with all pos
4 sibie dispatch. and as soon as the railroad
i labor board shall have given its assent
i to the reduction Of wages the general re
i auction in rates win be put into eject