The Hayti herald. (Hayti, Mo.) 1908-1922, 1921-11-04
RATE OF RETURN EARNED
BY RAILROADS OF THE
UNITED STATES ON
THEIR PROPERTY
INVESTMENT.

1917
1919 ..................................
l9to -.......-................2.46Gs
lSGV O.S2Wp
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.
q The railroads are responsible Ia
the public for providing adequate
transportation. Their charges arc
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 ara
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, It 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.
hess not thus restricted.
II has been urged upon the rail.
roads taht reduction in rates will
roads that 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
Tic. 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
of such an experiment based solely
upon such a conjecture.
Farmers Especially Need Lower Rates
1t is evident. however, that existing
transportation charges bear in many
cases. disproportionate relationship
| to the prices at which commodities
can be sold in the market and that
existing labor and other costs of trans
portation thus imposed upon industry
and agriculture generally a burden
greater than they should bear This
/ to, al xF 20, ~ nsvrfo Ittvrn Thp
| railroad arrangements are feeling
sensitive to and sympathetic with the
| distressing situation and desire to do
everything to assist in relieving it that
is compatible with their duty to fur
nish the transportation which the
public must have.
At the moment railroads in many
cases are paying 40c an hour for un.
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 ii
may be to pay this or that schedule
lof wages, II Is obvious that il 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 hampered n
their efforts to economixe by q schedull
Il OF working rules and conditions now In
e rec as heritage from the period q
Tread Labor Board. These conditions an
expensive. uneconomic and unnecessary
!, from the point OF view Of railroad opers.
ton and extremely burdeasome upon thu
pUbhc which pays the bill This schedule
! q wages and q working conditions pre-.
yeats the Railroads from dealing equitabl,
v1Ih their labor costs in accountance witt
. ra1Sdly changing csAdittons and tie real
v09S1sy a. lool 0oost0egeklons which
. ts0A1 u ceqtso1 NaSas IN 1t9srsnt part
IL the eossAtfy.' AThs railroads are 1ssskinl
p havs - - and vossdas oondi
II TSs TwiEos1s YIN seek . rsAssttea. 1,
yAgs new pcoeose1 ~ Orr rsttnI
: the nnction Of the Railroad Labor Doard
The railroads WIN PROCESS WIN Al pos
IN dluDAtch. and e. soon - ~ Rail
~ Iakor Board shall have giveA II
aGDonf u The Reduction ~ yageD Tie gen
4d gsAnseADo n reess ~ - pSt ~