The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-10-28
Railroad Ne1us of Week
VERNON E. BUNDY
ANSWERS SENATOR CAppER
Charles Dillon, Assistant to
Chairman of Western Committee
on Public Relations Association
of Railway Executives, Criticizes
Kansas Senator.
Railroad Editor, Topeka State Jour
nal, Topeka. kansas.
E. BUNDY

Railroad Editor, Topeka State Jour
nal, Topeka, Kansas:
do not believe that Senator Cap
per intends deliberately to inflame
the minds of his farmer readers
against the railroads OF this country
but some of the material he is using
is likely to have just that effect. Our
difference of opinion I believe rises
from the fact that Ill my figures are
taken from governmental reports III
source of Senator Capper's informa-
ton is not always quite so clear. The
person who gathers the supposed in
formation for Senator Cappers ar
ticles shows considerable prejudice
When the senator tells the farmers
that the railroads are likely to earn
a net income e 900 million dollars
in 1922 he makes a very dangerous
appeal to a class already pfejudiced
largely thru misinfofmation. 1t
would have been only fair for the
senator to say that even if the rail-
roads earned 500 million dollars net
this year that would be mitch less
than per cent on the valuation of
the properties.
I shall be grateful if you will per-
NIT me to set before your kansas
public the actual record and my own
opinion based On facts easily ascer-
taihable. During the first six months
of the year The railroads net oper-
ating income was $54g, O92,944 The
following month, July, the net oper-
ating income was ONLY s6g,23g,00 and
in August it mad declined to S52,579,-
799. This August net is on an annual
basis of only 2.65 per cent. When it
is considered that the net operating
income in the first eight months of
the year has been only $471, O00,1S3
it cannot reasonably be estimated that
the net operating income in the re-
naming four months of the year will
be greater than it was in the first
eight. There are other factors indi-
eating that the remaining four months
of this year will not produce an in
come greatly in excess of that aecru-
ing from the eight months of opera
ton. Among the most important are
the added expense of the shopmen's
strike, the rate reduction which be-
came effective July /, and the siren
uous efforts the railroads are putting
forth to get their equipment into con-
dition to meet the enormous traffic
demands of the country.
Senator Cappef says further that
mine hundred million dollars net in
come equals 5 per cent on 1S billion
dollars, the total property value of
the roads" The tentative valuation
of the roads fixed by the interstate
commerce commission for the pur-
pose of rate making was not IS bill
lion dollars. 1t was 100000, 600.
The interstate commerce commission
has named AZ per cent on this ten
tative valuation as a fair return"
as directed un,.er the terms of the
transp ortation act. Even if the rail-
roads do earn 900 million dollars thew
would still be s1s6.750.0OO short of
this fair return
what the farmers of this country
need right now is not lower rates.
They need freight cars. and they
want those cars moved promptly. The
reason there are not enough cars is
fothd in just such regulation, state
and federal. as is advocated by Sen.
ator Capper,~ and a few others who
lack his sincerity of purpose.
The senator is not consistent In
the first part of his latest attack OF,
the railroads he proves to his own
satisfaction the nationwide revival of
business in order to show that the
railroads are handling a tremendous
volume of traffic and, can therefore,
easily stand reduction in rates He
gives accurate statistics on car load
ing and production, and after devot-
ing two-thirds of his space to an eff
fort to show that the big business re.
vival is already under way closes with
the statement that the repeal of the
rate-making clause of the transport
tation act would make possible the
return of good times and a general
revival of business" Section 15-A
is still in existence and as Senator
Capper shows, business already has
Senator Carper says the farmer ia
not participating in this revival. From
January /, this year, to July 8, the
railroads loaded and moved 1,14229S
cars of grain and grain products as
compared with 1,031.195 cars in 1921
when the rates were much higher:
HS9&14 in 1904
1919. The average weekly loadings
OF grain and grain products during
this period were more than 1000 cars
heavier than they have ever been
since carloading records have been
Kept. Coming into the grain loading
season the railroads handled between
July and September 8, 493,932 cars
OF grain and grain products as COM
pared with $40. 343 cars in 1921; 1884,
400 cars in 1920 and 446,174 in 1919.
The total loadings Of grain and grain
products January 1 to September Q
this year have been almost 100000
cars greater than they have ever been
in the past.
Julius H. Barnes. president of the
United States Chamber of Commerce
directing head of the United States
grain corporation during the war, in
speaking few days ago to the Edi-
torial Conference of Business Papers
in New York said:
Transportation facilities today in
the United States are totally iuade-
quate. From September 1 to october
l, IN the height of the crop-moving
period, the main channels from Buff
falo to New York virtually were
closed. The four great trunk lines
did not move any grain. 1t was re-
eeived from tie west until it ex-
hausted the elevator capacity of Buff.
falo, 100000 bushels. Lake rates
rose from 2 cents a bushel to 6 cents
because of lack of cars.
The value of 100000 bushels of
grain in the United States is at leas,
II per cent 3elow the European mar
kets That situation, If it extends
thruout the year. will mean a loss of
$500. 100000. That is the minimum
loss in farm spending power and its
influence will be felt by the other in
dustries of this country.
1T is due TO an oyer-rigid policy of
regulation of our railroads in the last
ten years The earning power of our
railroads has been destroyed and their
credit has been undermined so that
they cannot maintain their euaip-