Evening star., 1921-09-03
Concerning TRANSPORTATION Charges

Senator Capper Of Kansas, voicinS
his viewpoint in the columns of his
farming weekly, holds that the major
Ills of these days through which
America is passing spring from eXces-
sive transportation charges. There are
many who will concur in his iagnosis
of the case. for the effect of freight
rates upon the economic and indus
trial system of a nation is admittedly
powerful and pervasive. Yet when
the senator passes from the functions
Of diagnostician to those Of a remedial
prescriptionist the numbers of thought
full men among his adherents must
dwindle. The President should "com-
pei rate reduction by the railroads,
he states. The guarantee clause Of the
Esch-Cummins law should be repealed
The power to increase state rates
should be taken from the Interstate
Commerce Commission. And so forth.
1t is interesting that, approximately
coincident with the exposition Of this
viewpoint, the current issue of the
halfway age toltdlii Stdlc-
ment of cold facts and figures which
would tend to show the danger, if not
the impossibility, of the heroic treat
ment advocated by the senator from
Kansas. Figures are given which es-
tablish the fact that while the total
earnings of the roads for the first six
months of 1921 were almost 1920. .000,-
900 more than during the similar
period of 1919. the public paid almost
s21,000.000 less for transportation serv-
ice during those months, the explana-
tion of that apparently anomalous
truth being in the fact that in 1919, un-
der government control, the public paid
in taxes for a very considerable part of
the transportation services received
"a large deficit having been incurred.
Figuring upon this basis it is readily
demonstrated that a considerable saw
ing has been made to the public by the
roads during the indicated period. and
this at the expense of very heavy
loses incurred by the owners of the
roads For the net operating income
actually earned by the roads during
the first half of this year was but
s142, ,0O0, 900. only onethird of the net
return they received in the first half
of 1919 under government control, and
s95,OO0, 900 less than mere interest
upon their outstanding bonds for the
period involved.
-
promising figures the advisahility or.
indeed, the need for the drastic meas
ures advocated by Senator Capper be-
comes dubious. They would prove that
for each dollar entering into the cost
Of transportation the public is today
getting more service than it was in
1919-that the roads are seeking, at
heavy cost to themselves, to remedy
a condition of affairs for which they
are in no wise responsible. We've the
earnings of the roads high today, were
profits large and dividends excessive.
the prescription of the senator might
we'll be expedient. But to press that
prescription at a time when the roads
are running on so close margin as
to be unable to meet the interest due
upon their outstanding obligations
would be unwise in the extreme. For,
important and desirable though a re-
duct;on in freight rates undoubtedly
is today, it is still more important and
desirable to find some other means to
that end than one which. under exist
ing conditions. could only result in
the closing down of the roads or near
ly as ba0 a return to government
operation.