Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1921-11-03
RATE OF RETURN EARNED BY
RAILROADS OF THE UNITED
STATES ON THEIR PROP

It will thus be noted that during
the years when other industries were
making very large profits, when the
prices Of farm products and the wages
Of labor were soaring to ~unheard-of
heights, the earnings upon railroad
Investment in the United States were
held within very narrow limits and
that they have during the past foui
years progressively declined.
Roads handicapped More Than Other
Business
3. The railroads are Responsible to
the public for providing adequate
transportation. Their charges are lin.
tied by public authority. and they are
in very large respects (notaoty for La
bor) compelled 10 spend money on a
basis fixed by pubic authority. The
margin within which they are permit
ted to earn a return upon their invest
ment or 10 offer inducements TO at
tract new capital for extensions and
betteFments Is extremely limited.
However much the railroads might
desire, therefore, to reduce their
charges In times of depression, Il will
be perceived that the limitations BUR
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 a reduction In rates win 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 con5ectural and that an ad-
verse result Of the experiment would
be disastrous not only 30 the afl-
roads. but 20 che public, whose So
preme need Is adequate transporta-
ton. Consequently the railroad man
agemenks cannot feed 3usttnhad IN plac-
ing these instrumentaifaeS 80 essen
ttAl TO the public velfarA q tha bar
ard Of soeh an expartmenk AAed eoAe-
U upon such q ~ocuteotrSa.
ps~w1-s sspsnaR0 hDe k~O Nsss>
II b svsdenk hovo~A oA e11sttns
Transportation charges ha1 IN many
nses q dfspquporttons3s pu1nGSsnse<p 30
tho prtces at which commodities can be
Sold tn cho market end that existing labor
and other costs 0 transportation thus
impose upon industry and a~grtuufture
gsoerufty a burden SDeoeY than they
shoutd bear. rhts = espsrAsRy 70 Of
~agrtcufture> fha raflsoad 0nnaeemrnts
are feeling seestt1vo TO and svznpakheeic
With tho distressing sfeuacpa and do
sire to do everything 70 sAsAe m reftev-
ing II that IS couspst,bAs eth cAe<r duty
10 furnish the transpnreBC1on witch tho
public must hava.
Al tho momeot nafhoafS - many cases
are paying $oc- an hour Dor unskf1led
labor when sirrftar h,ho< b voskfng along
side tho railroads and can easily BIO OBJ
tanned By them at 2ou- sn hour The
railroads Of the COUNTRY HsAd IN 1890 a
total OF considerably o~W n Soo, ooO, 900 to
unskilled labor alone. However desirable
It may be to pay this or hat schedule
of wages, It is obvious that II cannot be
paid out of railroad earnings unless the
industries which use the railroads are
capable OF meeting such charges,
The railroads, and through them the
people generally, are also haInpered In
their efforts to economize By a schedule
Of working rules and conditions now liz
force as a heritage from the period OF
Federal control and upheld by the Rail
road Labor Board. These conditions are
expensive. uneconomic and unnecessary
from the point Of view OF railroad opera
ton and extremely burdensome upon the
public which pays the bin. This sched-
ule Of wages and Of working conditions
prevent the railroads from dealing
equitably with their labor costs in ac-
cordance with rapidly changing condi-
lions and the great variety of local con-
siderations which ought to control "a
In different parts Of the country. The rail-
roads are seeking to nave these rules and
working conditions abrogated.
The railroads win seek a reduction In
wage now proposed by first requesting
the sanction of the Railroad Labor Board.
The railroads will proceed with all posi-
Bile dispatch. and as soon ~ the Railroad
Labor Board shall have given fts assent
10 the reduction OF Wages The genenI
tsduotLon N Raass ~ ba pc tnto edect