Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1921-05-27

gress is unable to extricate them, no
matter how earnestly 1t may strive to
do so.
When the transportation act was be-
ing considered by Congress the pre-.
Fufcffon was 1nad6 fhdf II eYfacteu II
would not In any measure solve the
problems OF the railroads II was rec.
ognized as an unscientific, uneconom-
ic effort to arfifically influence the
immutable law of sound business. 1t
had for its main object the recognition
of the billions of dollars of fictitious
capitalization that had been ploughed
into railroad investment accounts, and
then 1t set about to guaranty fixed
annual return on all this capitaliza-
tion. Ii directed the Interstate Com
merce Commission to establish rates
that would yield the carriers per
cent annual income upon approximate
ly $19,000,000.000. In obeying it's in
structions the Commission brought
about the ratio of diminishing re-
turns" for higher rates restricted traf.
fic and defeated the purpose that Con-
gress had in view.
There is a difference of nearly a
billion dollars between what the roads
say they must have and what they are
really getting. Unless they can effect
economics that will close this gap,
they must have higher rates,-which
will aggravate and pot palliate their
troubles,-or go into receiyerships.
OF course, railway managers harp
a great deal about extravagant wages
paid to workers, but this is simply
blind to conceal their own incompet-
ency and dereliction. II the workers
are reduced to starvation level the
railroads will not yet have solved their
financial difficulties. They must do
something for themselves and not be
permitted to take out of the pay slip
envelopes of workers the amount
needed to maintain a system founded
largely on extravaganza and graft.
1t must be clear to open-minded stu
dents of the railway impasse that the
only real and abiding way out Is TO
retire private managers and place
transportation under government con-
troll. Two years ago those who urged
the Plumb Plan as remedy contend
ed that it alone could afford real and
permanent relief. They pointed out
the things that would happen to the
OduS IL lHc AOol iOu-
troll over them, and everything pro-
phesied and much more has since
transpired. The railroads are even in
worse shape than their severest critic
had dared 10 forecast. They are break
ing down everywhere, and il is dawn
ing upon the single-minded gentlemen
who are responsible for this condi.
tion that legislation will not help an
incurable malady.
When such astute defenders of
private control as Senator Cummins
is forced to admit that it is failure
and cannot exist, the end of its ruin
Gus rule cannot be far off.
To save the managers the govern
ment viii find il necessary to heavily
subsidize the carriers, and IL is incon-
ceiyable that any politician who is
solicitous of his future will go as far
as that. The stencil OF the billion dol
lar guaranty that was given to the
railroads during the first six months
of resumed private operation is still
in the nostrils of the public. II was
the most malodorous Legislative mis-
carriage that has emanated from Con
gress IN many years. 1t served merely
TO empty the treasury without doing
anything OF real value for the rail
roads. II encouraged a season of riot
Gus expenditures and diversion Of
funds from the railroad treasures in
to locomotive and car plants control