The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-03-04

] 7 Ollttlts vi W lStOilSlIls utCldIGu lIldl
the railroads of the country should
be required to repay to the gov
? ernmont the enormous debts which
they have incurred under the
, bounty of Congress- instead of be-
ing permitted to collect several
hundred millions of an additional
gratuity from the Government in
such a manner that "they would
leave the door of the treasury ajar
so that they may come back year
after year, ryramiding new claims
upon the old, adding fresh items Of
loss, unearthing new indemnities,
and gradually swelling the total
amount of Congress generous gift
of public money in taxes from the
people until that gift, instead of
being $631 100000, will reach bill
lion and still not discharge the
claim"
Senator LaFollette presented fig
ures to show that the railroads are
now indebted to the government to
the sum of 81 100000, and said
that it was doubtful if they could
ever discharge the debt.
"The question raised by the Wins
low Townsend BILL" said the Sena-
tor from Wisconsin, els: "Shall we
present the railroads with a gift
from the public treasury before the
gift promised is due, under circum-
stances which will enable the rail
roads vastly to increase the magni-
tude of the gift any while the rail
roads are under investigation for al
legged violation of the contract I'M
der which the gift was made. l am
astounded to hear Senators reproach
the government for not paying its
debts. Debt? The government is
not the debtor of the railroads.
"The advocates of the Winslow-
Townsend bill assume that the Gov
eminent owes three hundred and
seventy million dollars to the rail-
way companies, that the amount is
now due, and that the Government
refuses upon a mere technicality
to pay the debt.
"The assumption is wholly false
and the bill should be defeated.
Secretary Houston denies that the
private claims pending against the
railroads are substantial factor
in preventing the railroads from
presenting a final claim for pay
ment in full. Secretary Houston
adds the significant comment, that
the Transportation Act in it's pres
ent form is unusual in emitting
such a provision of Imitation
'If such a limitation is not set,
and if Congress passes a measure
authorizing partial payments, Sec
reary Houston truthfully declares
that it would render it impossible
for the Interstate Commerce Com
mission ever to make a certificate
which would be final
"There you have the reason why
the railroads are unwilling to pre-
sent final claims for settlement of
the guaranty at this time. The
powerful interests which own the
railroads see in these claims an
opportunity to drain the public
treasury for years to come. Hav-
ing already eXacted $260,000,000 of
the $631 100000 gift voted to them
5y Congress, they are unwilling to
accept payment in full of the bal
ance of $370,000,000 They seek
now to collect several hundred mil
lions of this money, but they would
leave the door of the treasury ajar
so that they may come back year
after year, pyramiding new claims
upon the old, adding fresh items of
loss, unearthing new indemnities,
and gradually swelling the total
amount of Congress generous gift
of public money collected in taxes
from the people until that gift, in
stead of being 1851 100000, will
reach billion and still not dis
charge the claim.
"Mr. President, l opposed the
guaranty in Section 209 when it
was proposed in this body. l be-
lieved then, as l believe now, that
it was policy which could only
result in the unjust enrichment of
the interests which exploit the
transportation facilities of the coun-
try for excess profits. 1t was con-
tended that the guaranty would en-
able the railroads to give the public
improved service. 1t had no such
effect in practice. This guaranty
proved an invitation to fraud and
extravaganza. 1t encouraged the
railroad owners to commence a
ruinous policy of smashing the la
Dor organizations of their en-
ployees.
"The least Congress can do, as
the trustee of the peoples money,
is to stand upon the contract
which was made by the enactment
of the Transportation Act of 1920.
The courageous policy would be to
repeal the law by which this gift
was made. There is no question
of the power of Congress to repeal
the guaranty, because it was not
compensation for any services rem
dered, but a pure gift, in reliance
upon which the railroads did moth
ing they would not have been bound
to do without the guaranty.
"The advocates of the Townsend
Bill contend that the Government
is at fault in not making prompt
payment of a debt" The conten-
ton is wholly without merit.
"The Government owes the rail
roads no debt. 1t promised a graf
uity upon certain conditions. The
railroads have not complied with
the conditions. Until they do so
the railroads are without the
shadow of a claim.
"The railroads are at this hour
indebted to the Government in so
many millions of dollars that it is
doubtful if they can ever discharge
the debt.
"Under Section 210 of the Trans
portation Act revolving fund of
$300,000,000 was appropriated from
the Treasury to be loaned to the
railroads. The Bureau of Finance,
of the Interstate Commerce Com
mission, informs me that there has
been certified to the Secretary of