The Butler County press. [volume] (Hamilton, Ohio) 1900-1946, 1921-06-03
Senate Committee Told A Few Roads
Pay Pull Through But rlany Un-
able TO Solve Problem; Mis-
management Is Cause

buZZing about the national capital
which is the storm center of all rail
road discussion. They have been call
ed here to give a statement of re-
suits gained under the transportation
act, written after their dictation, and
to offer to their supporters in con-
gress, if they have anything of that
sort to offer, some hope and consola-
tion for the future The net result
of their effort so far has been to in
crease the pessimism of statesmen
and force them to admit, reluctantly
that all their finely-laid plans to save
private ownership have gone fol
naught.
The simple fact is, and railroad
managers cannot deny it, that pay
day has arrived in Wall street anc
the neutrality-suspicious. who have
been looting the transportation system
looting the transportation system
are unable to make good They fine
it absolutely impossible to liquidatt
the excesses of more than half cen
tury of vile management, featured BY
every species of looting and graf
that ingenious minds could devise.
In other words, the railroads are
caught in the economic net that the
managers have been spinning anc
congress is unable to eXtricate them
no matter how earnestly it may strive
to do so.
Railroads Are Whipsawed
When the transportation act was
being considered by congress the pre-.
diction was made that if enacted il
would not in any measure solve the
problems of the railroads. 1t was
recognized as an unscientific, uneco-
nomic effort to artifcially influence
the immutable law of sound business
1t had for its main object the recog-
milton of the billions of dollars OF
fictitious capitalization that had beer
ploughed into railroad investment ac-
counts, and then it set about tc
guaranty a fixed annual return on all
this capitalization. 1t directed the
Interstate commerce commission to
establish rates that would yield the
carriers per cent annual income
upon approximately $19,000,000, 900
In obeying it's instructions the com
mission brought about the ratio OF
diminishing returns" for higher rates
restricted traffic and defeated the
purpose that congress had in view.
There is difference of nearly bill.
lion dollars between what the roads
say they must have and what they
are really getting. Unless they car
effect economies that will close this
gap, they must have higher rates
which will aggravate and not palliate
their troubles-or GO into receiver.
ships.
Of course, railway managers harp
| great deal about extravagant wages
paid to workers, but this is simply 6
blind to conceal their own incompe
tency and dereliction. If the workers
are reduced to starvation level the
railroads will not yet have solved
their financial difficulties. They mus
do something for themselves and mo-
| be permitted to take out of the slim
pay envelopes of workers the amour
needed to maintain a system founded
largely on extravaganza and graft.
| 1t must be clear to open-mindet
students of the railway impasse tina
the only real and abiding way out il
to retire private managers and plac'
transportation under government con
troll Two years ago those who urge'
the Plumb plan az remedy contend
ed that it alone could afford real AM
permanent relief They pointed ou
the things that would happen to tn
railroads il the government lost con
troll over them, and ev"ryIring proph
esied and much moe has since trans
pired. The railroads are even i
worse shape than their severest criti
had dared to forecast. They ar
breaking down everywhere and it ,
Iawping upon the single-minded gen
tlemen who are responsible for thi