The Lexington progress. (Lexington, Tenn.) 1884-current, 1922-02-24

Inc 1IdHopOIkdIlOH ACl Vi lJGu has
proven to be signal failure both as
TO service and as to revival of railroad
credit. Under its operation freight
rates and passenger fares have been
higher than ever before known in this
country while railroad credit has not
been strengthened, but if any change
has taken place in railroad credit it
has been in the direction of weakness
rather than strength.
1t appears from the last annual re-
port of the interstate commerce COM
mission that the railway operating
revenues Of the reporting roads for
the year 1920 was s6,178,192,420. 1t
also appears from the last annual re-
port of the secretary of the treasury
of the United States that al the rev.
enues collected by the United States
from taxes of all kinds for the fiscal
year 1921 amounted to $4,SS7 1885,
7t1.23. So it appears from official
information that the operating reve-
nues Of the railroads for one year ex-
ceeds all the taxes collected by the
United States for one year by 81 ,270,-
103,717. 1t is evident, therefore, that
the burden of federal taxation for oil
purposes was much lighter than the
burden of freight and passenger
charges imposed on the people by
railroads under the existing transpor-
tation act for the same period. s1
Since operations under said Trans
portation Act began March Let, 1920,
conditions regarding the farming in.
dustry have become deplorabls, and
are now such that no mere temporary
palliatives or emergency relief meas.
1res will save the situation. With the
prevailing low prices for farm prod
ucts, the present freight rates are
practically confiscstory while town
and city consumers Of these products
have to pay prices for them out Of oil
proportion to those received by the
farmers.
The existing high freight rates and
passenger fares were fixed In the
summer Of 1920 when war prices
were at the peak for farm products,
wages Of labor and costs Of railway
supplies and materials. Rates and
fares a. then fixed were not unreas-
onably high, but measured by the
present prices Of farm products are
simpy Obstructive Of the industry.
These conditions apply In varying
degrses TO all Industries. The effect
Of which has been to depress business
generally, and to thus reduce The rev
enues Of the railroads and further
weaken railroad credit. %Ft'
In order that the rail carriers may
make the net return provided Tor
them on the value Of their carrier
property under the present Transpor.
tasion Act, rates and fares must re-
main substantially at the present lev
els. But if the present levels Of rates
are to continue, farming and many
other industries will be practically de-
stroyed.
Railroad credit ct this time is SC
weak that in all or nearly all refund.
ing operations, new railroad securities
must carry substantially higher rate
Of interest than was carried by the
obligations refunded, thus automati.
cally increasing the fixed charges Of
the issuing railroads.
The Federal and State governments
through taxation are supplying hun.
dreds of millions of dollars for the
Improvement of the facilities Of wa.
terway transportation Of all kinds
ocean, lake and internal waterways
These governments are also supply
ing, through taxation, hundreds OF
millions Of dollars for the construc-
ton and maintenance of highways
and other forms Of land transporta-
ton facilities. All these government
constructed and maintained facilities
Of transportation compete for traffic
with the railroads and materially re-
duce their gross and net revenues.
This form Of railroad competition
is increasing and will in the not dis
tant future, become much more for
midable than it is at this time. In
many localities motor trucks do near
ly all the short haul business that was
formerly done by the railroads.
What is imperatively needed in the
public interest, is q general and sub
stantial reduction in freight rates
and passenger fares and as n means
to this end a general reduction in the
expense Of operation and fixed
charges, including interest on new is
sues Of railroad securities, and not
merely temporary measure Of some
kind to tide over some pressing need
Of the carriers for the moment, but .
practical, permanent, workable trans
portstion policy should be formulated
and put into operation ~ soon rs pos
sible.
The pertinent question now press
ing for answer il what should Be don't
that win give the relief sought and
that win b permanent !?
After twelve years u service on The
Committee on Ih1ertt13e end Foreign
C6usmsrcS Of the House Of Represen-
tatives and after service on the Joint
House and Senate Committee, created
TO make On investigates cid study Of
the whole field u railway trsnspor-
tAtisn service, and economics CON-
msnly called the Newisnds Commit