Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-10-21


for the fret eight months Of this year.
me L2sest available figures. has been
Is, "a rate Of net railway operating IL
come before providing for interest or
dividends amounting to only 26 Der
cent per AMMAN ON the valuation OF
the caITier properties inside Joy the in
leTstat3 commerce commission 5n the
recent rate case. an amount not suit
cieLt TO pay the interest on their ont
standing bonds
Roads Earnings Far Belou. Reasonable
Returns.
il is manifest from this showing. thar
the rate OF return Of S ~ Or G ner
cent for the first two years after
March /, 1929, fixed in the transports
ton act as minimum reasonable re
turn upon railroad investment has not
been even pproXimated-much less
reached; aud that the present high
rates accordingly arc not due 10 any
statutory guarantee OF earnings, for
there is no 5ugb guarantee.
IN aHalyEing the expenses whicu have
largely brought about this situation. il
oaaoutcs evident that by J3J Cue largest
contributing cause is the labor cost
To-day the railroads pay ont TO labO.
approximately zoe on lle dollar they
receive Tor transportation services.
whereas in 1916, 10 cents OF the dol
lar vent to labor.
On the first day OF January. 1917.
&hen the government took charge OF
wages through the Adamson act. the
.abOr cost OF the railroads had not ex-
caeded the sum OF about 81. 4GS COOS
annually, In 1920, when governmental
luthority made the asst wage increase
Ire labor gusr OF The railroads va
jbnuJ 3369S 390.oG9 aunuallg. or, Il con
inHed throughout the Taar instead Of
or he eight months during which the
wage Increases were in e1faci.
he labor E cost on IN anquai
oasis would have been largely in
excess Of $780, 00, 0QQ $500 an Ia
crease, since the government tool
charge OF railroad wages in the Adam
son act, OF approximately $2450 Q00
GOO annually.
In the light on these figures, j. is
manifest that the recent reduction Of
wages authorized by the labor board
estimated at from 10 to II per cent, IN
no sense meets or solves the problem
OF labor costs, and in no way makes ii
possible for the railroads to afford
reduction of their revenue.
Thousands or Rates Already Reduced
indeed, during the past year there
have been between four and five thou
sand individual reductions III freight
rates On some railroads the reduc-
lions in rates have amounted to more
than the reductions in wages SO far
made, and on many other railroads the
reductions in wages allowed no net
return on operations, but merely pro
yided against the further accumula-
ton OF deficit
The point is often made that agricul-
ture and other industries are also sui
fering the same immediate difficulties
as the railroads. Why, therefore, do
not the railroads take their medicine
like anybody else? The answer lies
IN several facts:
i. The railroads We're not permitted.
as were other industries to make
charges during the years Of prosper
~. making possible the accumulation
OF q surplus TO tide them over the pres
/ ent extreme aCrersity. According to
| the reports OF the Interstate commerce
commission the rate Of return in prop
| erty investment OF the railroads Of the
United States for the past several years
has been as follows.