The Donaldsonville chief., 1921-10-22
RATE OF RETURN EARNED
BY RAILROADS OF THE UNIT
ED STATES ON THEIR PROP
ERTY TNVESTMFNT

1t 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 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.
Roads Handicapped More Than Other
Business.
The railroads are responsible to the
public for providing adequate trans.
portation.
Their charges are limited by pub
lie authority, and they are in very
large respects, NOTABLY for labor"
compelled to spend money on basis
fixed by pubic authority. The margin
within which they are permitted to
earn a return upon their investment,
or to offer inducements to attract new
capital for extensions and betterments
is extremely limited.
However much the railroads might
desire, therefore, to reduce their
charges in times Of depression, 1t VIII
be perceived that the limitations sur
rounding their action do not permit
them to give effect to broad and elias
tic policies which might very properly
govern other lines of business not
thus restricted.
1t has been urged upon the railroads
that a reduction in rates will stimulate
traffic and that increased traffic will
protect the carriers from the loss inci-
dent TO a reduction in rates: The rail-
road management cannot disguise u from IRON
conjectural and that an adverse result OF
the experiment would be disastrous not
only to the railroads, but the public.
whose supreme need is adequate trans
9ortation.
Consequently the railroad managements
cannot feel justified in placing these In
welfare, at the hazard Of such an expert
ment based solely upon such con-
lecture.
Farmers Especially Need Lower Rates.
1t is evident, however, that existing
transportation charges bear in many cases
a disproportionate relationship to the
IN the market and that existing labor
and other costs OF transportation thus i'm
posed upon industry and agriculture
gaaa b1s asn they
agriculture. The railoard managements
are feeling sensitive to and sympat thetic
with the distressing situation and desire
it that is compatible with theiE duty to
furnish the transportation Which the
public must have.
cases. are paying 40 cents. an hour for
unskilled labor when similar labor is
working alongside. the railroads and can
an hour. The railroads Of the country
% 1863 'as abor aions
ts Il wages ss ei '9 Is
that 1t cannot be paid out of railroad
earnings unless the industries. 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 economize by schedule
Of working rules and conditions now in
force, as a heritage from the period Of
Federal control and upheld by the Rail-
road Labor Board.
| nomic and unnecessary from the point OF
view Of railroad operation and extreme
ly bnrdensome upon the public, which
pays the bill This schedule OF wages and
Of wo,:<lf;;s conditions prevents the rail-
roads fr''n 'iealing eauitably with their
labor costs IN accordance with rapidly
| Of local considerations which ought ia
control wages in different parts Of thu
country. The railroads are seeking to
have these rules and working conditions
abrogated.
The railroads will seek a reduction in
wages now proposed by first requesting
the sanction Of the Railroad Labor
Board The railroads will proceed with
all possible dispatch. and as soon as Tho
Railroad Labor Board shall have given ita
assent to the reduction OF wages, the gen.
fral reduction In rates will 30 put Into
fleet.