The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-05
SATURDAY. FEBRUARY 5. 1921.
The Public Taxed for Rail Waste.

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OTro MILLER of Cleveland is quite
right to take exception to the mac
curate terms in which the public
prints, public officers and public
speakers refer to the revenue pro-
visions of the new railroad law as
guaranteeing to the carriers 9 per
cent. earnings. The law of course
does nothing of the kind. 1t requires
the Interstate Commerce Commission
so to adjust rates from time to time
as to yield the carriers as whole,
or as a arhole in certain groups, a
fair. return upon the aggregate value
Of the property used by them in
serving the public. This is 5 " per
cent, to which MAY be added not to
exceed one-half Of 1 per cent. for
improvements, betterments, &c.
This leaves the carriers in posi-
ton where some of them in any or
every group may not be able to make
a penny as practical operation of a
theoretic principle. But 1t puts the
public In a position where 1t may
have its purse taxed out of its very
clothes by higher and higher traffic
rates repeatedly ordered in a vain
attempt to catch up with ever rising
operating costs.
At this very moment the greater
as well as the lesser transportation
systems of the country are not earn
ing profits of 51a per cent. they are
not earning profits of any per cent.
Some Of the biggest and the best Of
them are not earning operating ex-
penses. Others, while earning oper-
ating expenses, are not earning the
interest ON their debts, are not earn
ing even their taxes.
And this record OF bankruptcy and
ruin, in spite OF the increased billions
Of transportation charges piled upon
the public, is the heritage of calamity
which has come down from the two
years Of Government operation of
the roads. The political intrigues and
deals during that Federal administra-
ton plastered upon the roads five
agreements and 49, rules and working
conditions which make wages and
working conditions identical through
out the United States. They apply,
therefore, to territory where there is
scant business as well as to territory
where there is dense business, to
service where the men do little or
no work as well as to service where
they do hard work, to labor classical
tons where slight skill or RESPONSE
bility obtains as we'll as TO classical
tons where heavy responsibility and
high skill are required. And all this,
with no equivalent returned TO the
roads and no commensurate service
performed for the public, is causing
loss OF hundreds of millions of
dollars year.
1t Is loss which must come out
Of the public's pocket. The railroad
law requires that II there Is no other
relief It be thrown back upon the
public by the readjusting of the rates
accordingly. Yet neither the public
nor the carriers can get anything
for It.
THOMAS DE Writ CuYLER. chair
man of the Association Of Railway
Executives, states that in asking TO
cut off this sheer waste the roads do
not propose to change anything but
those ruinous acts perpetrated under
Government operation. He explains
us follows:
The proposition OF the roads that
the Labor Board permit an immc-
date return to the conditions obtain
ing on December 81. 1917. does not
propose a change IN the rate of
wages. does not abrogate the Adam
son act--an eight hour law--and
preserves 20 labor all the peace time
advantages obtaining on the date
named as the result OF years OF coll
lective negotiation. conference and
arbitration.
1.-THE railroads feel II 20 be Inn
perativc to remove the waste and
ineffIciency forced upon them by the
rules and working conditions en-
bodied in the eo-called national agree
mcnts.
1T Is an essential preliminary step
In any effort toward the realization
OF conditions which may make pos
sible revision OF freight and pas
senger rates"
In any event, either the wnnion
throwing away Of those hundreds Of
millions Of dollars yenr must be