The Hartford republican. (Hartford, Ky.) 18??-1926, 1921-11-11
RATE OF RETURN EARNED
BY RAILROADS OF THE
UNITED STATES ON
THEIR PROPERTY
INVESTMENT

1t 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 four
years progressively declined.
Roads Handicapped More Than other
Business.
2. The railroads are responsible to
the public for providing adequate
transportation. Their charges are
limited by public authority, and they
are in very large respects (notably
for labor compelled TO spend money
on a basis fixed by public authority.
The margin within which they are
permitted to earn a return upon their
investment or to offer inducements to
attract new capital for extensions and
betterments 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 sur.
rounding their action do not permit
them to give effect to broad and
elastic policies which might very
properly govern other lines of bust.
ness not thus restricted.
II has been urged upon the rail-
roads that a reduction in rates will
stimulate traffic and that increased
traffic will protect the carriers from
the loss incident to reduction in
rates. The railroad arrangements
cannot disguise from themselves that
this suggestion is merely conjectural
and that an adverse result of the ex-
pertinent would be disastrous not
only to the railroads, but to the pub
lie, whose supreme need Is adequate
transportation.
Consequently the railroad manage
ments cannot feel justified in placing
these instrumentalities, so essential
to the public welfare, at the hazard
upon such a conjecture.
Farmers Especially Need Lower Rates
1t is evident. however. that existing
transportation charges bear in many
cases a disproportionate relationship
to the prices at which commodities
existing labor and other costs of trans
portation thus imposed upon industry
and agriculture generally burden
greater than they should bear. This
is especially true Of agriculture. The
railroad arrangements are feeling
sensitive to and sympathetic with the
distressing situation and desire to do
everything to assist in relieving IL that
is compatible with their Auty to fur
nish the transportation which the
public must have.
At the moment railroads In many
cases are paying 40c an hour for UNI
! skilled labor when similar labor is
working alongside the railroads and
can easily be obtained by them at zoe
an hour. The railroads Of the coun-
try paid in 1920 total Of consider
ably over $1,000, 100000 to unskilled
labor alone. However desirable IL
may be to pay this or that schedule
OF wages, it is obvious that IL cannot
DE 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 hampered In
their efforts TO economize by a schedule
Of working rules and conditions now In
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
tion and extremely burdensome upon the
public which pays the hill. This schedule
OF wages and of working conditions pre-
vents the railroads from dealing eduitably
with their labor costs In accountance with
rapidly changing conditions and the great
variety of local considerations which
ought TO control wages In different parts
OF the country. The railroads are seeking
to have these rules and working condi-
lions abrogated.
The railroads will seek a reduction in
wages now proposed by first requesting
the sanction OF the Railroad Labor Board.
The railroads will proceed with all pos
sible dispatch, and as soon as the Rail-
road Labor Board shall have given its
assent to the reduction OF wages the gen
eral reduction in rates will be put into