The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-04-15
As Others See 1t
BETTER REPEAL THE LAW
Orlando Reporter-Star.)


Farmers organizations of the west are investi-
eating the operation of the transportation act of
1920 When this law was first passed many peo
pie looked upon it as measure of virtue that
would build up efficiency in railroad operation
and give the public better service. Results, how
ever have been disappointing, and organizations
of farmers and manufacturers are beginning to
see the full significance of the act
BY that law it is made the duty of the Inter
state Commerce Commission to allow railroads to
charge rates that will pay reasonable" return
on the investment Now it is discovered that this
works greatly to the disadvantage of the public.
No matter how lavish were the expenditures in
the promotion and building of the road, or how
eItravagant the cost, a reasonable" interest
must be paid on that investment.
The worst part of the law IS the fact that COM
petition is entirely eliminated All lines must
charge the same rate If a competing line has
been more conservatively built and with less ex-
travagance, and is more efficiently equipped and
operated that it would operate on lower rate
than the line over-capitalized it is prevented by
this law from making rate lower than the road
that must have a higher rate in order to have
reasonable" return on it's capitalization Under
this law, the road that Henry Ford took over in
Ohio, after its former owners had found it I'M
profitable, and which under Ford efficiency be-
came a revenue producer was not permitted to
reduce rates though the officials petitioned for
permission to do so. Others are in like circum-
stances. Still under this law shippers must keep
on paying tribute to the over-capialized railroads
of the country
This law was made in the interests of railroad
investors entirely, The propaganda so ingenious.
ly spread broadcast by railroad managers and
their publicity organizations, made it appear that
this law was in the interest of efficiency which
would mean reduction in rates. Now it is found
to be means of strangling competition and COM
petitive rates. If there has been any improve
ment in railroad management any more efficient
methods introduced or any better economy put
in practice whereby operating costs are reduced
nobody has heard Of it.
At the close of the war, when the reads were
turned back to the companies it was claimed that
the roads were in a rundown condition and short
OF equipment and must have higher rates to re-
habiltate transportation. The law gave them all
they asked Transportation has not been i'm
proved. Now it follows that the government had
during it's operation, added much new equipment
and that the roads in better shape when
turned back than when taken over But these
shfty managers get around the situation by now
pointing cut the falling off in traffic Facts are
that the policy pursued by these short-sightcd
over-reaching managers has killed off traffic and
killed off business generally. Nothing has con-
tributed more to the slowing down of industry
han the exorbitant railroad rates. Factories and
mills soon clcaed down after this law was passed
and it became certain what the operation of the
Jaw would mean. 1t compelled farmers to oper-
ale at loss; no enc was ready to see that the
farmer was guaranteed a reasonable interest on
his Investment" so he just had to go on operating
at les and so far this law and railroad man.
ayers are concerned he will continue to operate
at loss. The road to normally does not lead
along the railroad tracks while this law is in
operation