The copper era and Morenci leader., 1921-12-02
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 mak- ing very large profits, when the prices of farm products and the wages of la- ber were soaring to nIiheard 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 progress Sively declined: :t::. e s4,- ! Roads Handicapped More Than Other
 Business.
 2. The railroads are responsible ite the public for providing adequate transpsrtatisn. Their charges are limited by public authority, and they are in very large respects (notably fer labsr) compelled to spend money on basis fixed by public authority. The margin within which they are permitted te earn a return upon their investment CT to offer inducements to attract new capital for extensions and bettermeRts is extremely limited. How ever Much the railroads might desire; therefore, to reduce their charges in times sf depression, it will be per- ceived that the limitatio suFrOund- ing their action do not permit them to give effect to bread and elastic policies which might very properly govern ether lines of business not thus restricted. :: # 7 < It has been urged upon the railroads that reduction in rates will Stfmu- late traffic and that increased traffic will protect the. carriers from the loss incident te 8, reduction in rates The railroad homogeneous cannot disguise fTem themselves that this suggestion s- k6AS verse result of the experiment would be disastrous not only to the railroads, but to the public, whose supreme need is adequate transportation.
 Consequently the railroad manage meats cannot feel Justified in placing these iRstrumentalities, so essential te the public welfare, at the hazard or sack 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 . disproporti0nate relationship ts the prices at which commodities ean be ssld in the market, and thnt exist ing labsr and other costs of transper- tatisn thus imposed upon industry and agriculture generally a burden greater than they should bear. This is es- pecially true of agriculture. The rail- road manasements are feeling sensi- tive to and sympathetic with the dis tressinx situation and desire te do everything to assist in relieving it that is compatible with their duty to fur nish the transportation which the pub lie must have. .5-' s''t1 At this moment railroads in many cases are paying 40 cents an hour for nnskilled laber, when similar lnber is working alongside the railroads and can easily be obtained by them at 20 rents an hour. The railroads of the country paid in 1920 a total of eOn- siderably over S1,3O0,00O,O00 to un- skilled labor alone. However desirable it may be to pay this or that schedule l of wages, it is obvious that 1t cannot be paid out of railroad earnings, unr less the industries which use the rail- roads are capable of meeting such charges.
 The railroads, and through them ] the people generally, are also ham pered in their efforts to econOmize By a schedule of working rules and conditions now in force as a heritage frenl the period of federal control and upheld by the Railroad Labor Board. These conditions are expeA- sive, uneconomic and unnecessary from the point of view of railroad operation and extremely burdensome upon the public which pays the bill! i This schedule of wages and of work ing conditions prevents the railroads i from dealing equitably with their la : bor costs in accordance with rapidly 1 changing conditions and the great variety of local considerations which l ought to control wages in different parts of the country. The rallHoadf are seeking to have these rules and working conditions abrogated. The railroads will seek 2 redHs. tioA iA wages now proposed by first requesting the sanction of the Rail- road Labor Board The railroadi will proceed with all possible dis patch, and as soon as the Railroad Labor Beard shall have given tts as' seHt to the reduction of wages thl general reduction in rates VIII bl Pat into effect.