Daily Kennebec journal., 1922-07-19
Truth About r. r.
Government Still
In COntrOl-Dillon

Spokane. Wn., July 1S.-Many per-
sons suppose that the railroads were
turned back to their owners and man
ayers in 1920. but this is only one Of
the half-truths that will not bear in
vestigation." declared Charles Dillon,
assistant to the chairman Of the west
ern committee on public relations of
the Association Of Railway Execu-
tives. in an address before the Cham
Der of Commerce here today.
Mr.. Dillon also asserted that moth
ing could be further from the truth"
than the impression that the railways
ARE trying to break down the unions,
! and that they are eager to reduce the
mems wages"
THE truth is we have about all the
: government in railroads right now
that the business wifi stand. 1t is the
i government which says what the rates
are to be and how much the roads may
be permitted to earn il they can do it.
it is the government which CONTROLS
wages and it controls the conditions
under which the men shall crk All
! the reports are made and the bookkeep-
| ing of the railroads is done according
| to the rules of the United States gov
eminent through the Interstate Com
| merce Commission and upon forms
prescribed by that commission. There
ic scarcely any item of mana cement
not directly under the scrutiny of the
government at Washington or Chicago.
| 1--WE are now facing an entirely new
order, new labor condition. When
the United States Railroad Labor
Board made the largest advance in
wages ever recorded. amounting, in
deed, to more than s72O.O0O 600 a year,
the railroads accepted The decision
without resistance. The men at that
time did not question the jurisdiction
of the board in making this enormous
advance.
| THE railroads promised. last Octo-
ber. to pass on to, the public in re-
j duced rates any savings in operating
| expenses resulting from wage cuts.
Rates have been reduced since last
January 100000, ,0O0-s265, 900, 900, ap-
proximately, more than wages hav-
| been cut, based on the earnings in 1921,
or s5O0.00O.OOO if we compare with
1920
IF total earnings do not increase
very materially, the rate reductions
and the recent wage cuts will allow the
railroads about 81 per cent. on their
valuation. There is difference Of
about $443,00O.Oo0 between this 81 per
cent. and the IS per cent. which the
Interstate Commerce Commission says
the roads may earn.
IF the net return from your busi-
ness were reduced as the net return OF
the roads has been. you probably would
close it out.
your business will prosper largely
according to the volume the roads can
handle promptly. The whole present
controversy. therefore, becomes as
much your concern as it is the concern
of the railroads. because unless invest
ors are assured a reasonable reward
new capital will not be available
and without this 1t will not be pos
sible to provide adequate facilities.
"The tie that binds this people to-
gether in national unity is the rail-
road tie and if it isn't kept in good
repair the neglect can easily create a
national calamity for which every man
and every family will have to pay"
The public, the speaker said. win be
benefited by the recent rate reductions
only as these reductions, in part, are
reflected in lower prices instead Of in
increased profits.