News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1921-11-16
RATE OF RETURN EARNED BY
RAILROADS OF The UNITED
STATES ON THEIR PROP

1t will thus be noted that during
the years when other industries were
making very large profits, when the
prices Of farm precincts AID the wages
Of laocr were s1&rinS to unheard-of
heights, the earnings u0on railroad
investment 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
2. The railroads are responsible to
the public for providing adequate
transportation. Their charges are linn
tied by public authority, and they are
in very large respects (notably for la
bOr) compelled to spend money on a
basis fixed by public authority. The
margin within which they are permit
ted to earn return upon their invest
ment or to offer inducements to at
tract new capital for extensions and
betterments is extremely limited.
However much the railroads might
desire, therefore, to reduce their
charges in times of depression, it will
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 reduction in rates will stimu-
late traffic and that increased traffic
will protect the carriers from the loss
incident to a reduction in rates. The
railroad arrangements cannot disguise
from themselves that this suggestion
is merely conjectural and that an ad-
verse result of the experiment would
be disastrous not only to the rail-
roads, but to the public, whose SUI
preme need is adequate transporta-
ton. Consequently the railroad man.
agements cannot feel justified in plac-
ng these instrumentalities so essen
.ial to the public welfare, at the haz-
ard of such an experiment based sole
y upon such a conjecture.
farmers Especially Need Lower Rates.
1t is evident, however, that existing
charges bear in many
asses disproportonate relationsh ship to
he prices at which comm ODDITIES can be
'old in the market and that existing labor
md other costs of transport on thus
impose upon industry and "@"iculture
a burden greater than they
hould bear. This is especial rue of
griculture The railroad man gaments
re feeling sensitive to and sympathetic
With the distressing situation and de-
ire to do everything to assist in rgliev-
ng it that is compatible with L r. duty
o furnish the transportation watch the
ublic must have.
At the moment railroads in many cases
re paying 40C. an hour for urskilled
lbor when similar labor is working along
ide the railroads and can easily be OBJ
aimed by them at zoe. an hour. The
ailroads OF the country paid in 1920 a
otal of considerably over 81. 300, 900 900 to
nskilled labor alone. However desirable
may be to pay this or that schedule
f wages II is obvious that il C; mot be
aid out of railroad earnings VI the
Industries which use the ra IS are
apsble of meeting such cha rs.
The railroads, and throug ITEM the
eople generally, are also haHlpered in
1eir efforts to economic by a schedule
+ working rules and conditions now in
,rce as a heritage from the period of
ederal control and upheld by the Rail-
bad Labor Board. These conditions are
1pensive, uneconomic and unnecessary
ON the point of view of railroad opera
on and extremely burdensome upon the
Ibic which pays the bill This sched-
e of wages and of working conditions
event the railroads from dealing
luitahly with their labor costs in ac-
sTdance with rapidly changing copdi-
ons and the great variety of local con-
derations which ought to control wages
different parts Of the country. The rail-
ads are seeking to have these rules and
orking conditions abrogated.
The railroads viii seek a reduction in
ages now proposed by first requesting
e sanction OF the Railroad Labor Board
he railroads viii proceed with all posi-
e dispatch. and as soon as the Railroad
abor Board shall have given its assent
the reduction OF wages the general
duction in rates will be put into effect