The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-22
THE LOGICAL WAY OUT.

In the discussion of the railroad
problem it is pointed out by some that
the failure of the roads to earn ex-
penses is partly due to business de-
preston, but they seem to overlook
the fact that what business depression
exists is due largely to the prohibitive
freight and passenger rates charged
by the railroads. These rates were
none too high when all other prices
were high, but when prices of COM
modities began to fall without a cor
responding decline in other prices it
was inevitable that business depres-
sion would follow.
The customary volume of business
awaits the time when it can afford to
move. The transportation companies.
it is said, are anxious for a downward
revision of rates. because they have
found that present rates retard bust
ness and discourage activities that
would provide more freight and more
revenue. 1t is this, they say. that has
induced them to seek a readjustment
of wages. But the wage readjustment
might come easier if the roads first
would cut their rates
Certain it is that all business de-
ponds very largely upon transporta-
ton. Nothing has any value until it
has been removed from the point of
origin. Most articles need to be
changed in form as well as to be re-
moved from place to place. If wages
are SO high and other manufacturing
expenses SO great as to make the prod
uct too expensive for general use. or if
the cost of transportation is made so
high as to put the finished articles
beyond the reach of the mass con-
sumner, production in that line must
necessarily slacken.
The last increase in freight rates
made the total approximately 20S per
cent of the normal prewar freight
rate. Freight rates of the future. and
wages of the future, must be based
upon the buying power of the nation
to consume the articles made available
by these joint agencies. Capital may
remain out of use but workers must be
employed and railroads must be op-
Grated else the one starves and the
other decays.
Assuming that the freight rates of
pre-war days were comparatively low
and that slight advance might have
been then justified, even this assump-
ton does not justify the enormously
high freight and passenger rates
which the public must now pay fol
this class of service. Railroad bust.
ness must necessarily fall off except
under conditions which will keep the
price level up to the 200 per cent
point. Just now the railroad execu-
tives are proposing that the railroad
labor board shall reduce the scale OF
wages paid to the workmen. The pub
lie will approve this reduction onl,
with the understanding that It's trans
portation service is to be lowered il
cost. If railroad rates are to be KEEP
up to the present levels, then the
public will approve the present stand
ard of wages.
| Railroad executives may as wei
understand that the public will no
approve an assault upon the wag,
scale except with a satisfactory under
standing that transportation rates will
be reduced in similar proportion. 1
wages are to go down as they should
then all other living costs must e,
down proportionately. and anon.
these a very important expense is tina
which is paid for railroad service.
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