The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1921-10-27
RATE OF RETURN EARNED
BY THE railroads OF THE
UNITED STATES ON THEIR
PROPERTY INVESTMENT:

1870 ........-....-..-.....--.....---...U, oLWO
II will thus be noted that during the
years when other industries were max
ing 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
The Roads Handicapped More Than
Other Business.
2.-The railroads are responsible to
the public for providing adequate
transportation. Their charges are
limited by public authority and they
are in very large respects NOTABLY for
laborl compelled to spend money on
basis fixed by public authority The
margin within which they are per
mitted to earn a return upon their in
vestment or to offer inducements to at
tract new capital for extensions and
betterments Is extremely limited How
ever much the railroads might desire,
therefore, to reduce their charges in
times Of depression. II will be perceiv-
ed that the limitations surrounding
their action do not permit them to
give effect to broad and elastic policies
which might very properly govern
other lines of business not thus re-
stricted
It has been urged upon the rail-
roads that a reduction in rates will
stimulate traffic AID that increased
traffic will protect the carriers from
the loss incident to a reduction in
rates The railroad arrangements can.
not disguise from themselves that this
suggestion is merely conjectural and
that an adverse result of the expert
ment would be disastrous not only to
the railroads. but TO the public. whose
supreme need is adequate transporta-
ton Consequently the railroad man.
agement cannot feel justified in plac-
Ing these instrumentalities. so essen
tial to the public welfare. at the hazard
OF such an experiment based solely
upon such a conjecture
Farmers Especially Need Lower Rates.
II is evident. however. that exist
ing transportation charges bear in
many cases disproportionate rela.
tionship to the prices at which COM
modities can be sold in the market and
transportation thus imposed upon in
dustry and agriculture generality bur-
den greater than they should bear
This is especially true OF agriculture
The railroad arrangements are feeling
sensitive to and sympathetic with the
distressing situation and desire to do
everything to assist in relieving it
that is compatible with their duty to
4ch fro a NH nh
lie must have
At the moment railroads in many
cases are paying 40 cents an hour for
unskilled labor when similar labor is
working alongside the railroad and can
easily be obtained by them at 20 cents
an hour The railroads of the country
paid in 1920 a total of considerably
over $1,000 100000 to unskilled labor
alone However desirable II may be
to pay this or that schedule of wages.
1t is obvious that IL cannot be paid out
OF railroad earnings, unless the in
dustries 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 economic by a
schedule of working rules and condi-
tiOHS hUW III lOitC dS hCftld6e ifOiu tn0
period of federal control and upheld
by the railroad labor board.
These conditions are expensive, I'M
economic and unnecessary from the
point OF view OF railroad operation and
extremely burdensome ON the public,
which pays the bill. This schedule of
wages and of working conditions pre-
vents the railroads from dealing equit-
ably with their labor costs in accord
ance with rapidly changing conditions
and the great variety of local consider
ations which ought to control wages In
different parts of the country The
railroads are seeking to have these
rules and working conditions abro-
gated.
The railroads will seek a reduction
IN wages now proposed. by first re-
questing the sanction of the railroad
labor board The railroads will pro-
coed with all possible dispatch, and
as soon as the railroad labor board
shall have given its assent to the re-
duction OF wages the general reduc-
uon in rates will be put into effect.