The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1922-02-02
FICTION OF GOVERNMENT GUARANTEE" EXPOSED
BY GOVERNMENT RECORDS.
Railroads Didn't Earn Per Cent and Government Is NOT
Paying them One Cent to Make Up Deficit.

which kept alive in certain quarters
the effect that the United States government under the
of the Ech Cummins Transportation Act guarantee
the railroads minimum income of per cent their in
vesmen is given very cold by the Interstate Com
Commission records.
The reports filed with the Interstate Commerce Commission
for the first IL months of 1921 show the net operating income
of the 200 odd railroads have been $56 608 Based
the valuation of the railroads. fixed by the Interstate
Commerce Commission for rate making purposes this net
gives the railroads return of only 33 per cent
their valuation 1t lacks $64 5000 little less than half
of earning per cent upon the valuation of the roads The
figures for the month of December will not improve the stu
alton from the standpoint of the railroads. traffic for
that month less than in months of 1921 which will
lower the average for the year.
The reports show that nearly oneforuh of all the railroads
of the country during the first II months of 1921 operated
deficit The average of 33 cent income for all the roads
obtained because of the stronger carriers earned
very high percentage upon their valuation
Proof of the aty of the charge that the government under
the transportation act guarantees the railroads minimum
return OF cent their valuation is furnished by the
evident fact that the is not going give
them cent toawrd making the difference between the
1873 per cent they did and per alleged guarantee
Moreover approximately so of the 200 railroad systems
Cured actual deficit during the year 1921 and the govern
ment is not obligated to- does intend any of these
roads cent in order to relieve them of their deficit much
less to enable them to show net ncom of their
valuation
These figures should put end to the persistent charges
that have been made largely for demago purposes that
railroads being guaranteed any income by the federal
under the provisions of the transportation act
through rates fixed by the Interstate Commerce Commission
been reckless to call the railroads preferred creditor
of the government under the provisions of the transportation
act
As has been repeatedly shown what the transportation act
really did to authorize the Interstate Commerce Commits
sion to group the railroad systems of the country geogaph
cay and to fix for each group that would enable that
group whole the basis of business being carried at
the time the rate fixed august 1920) 10 fair
turn the aggregate value the railroad property that
group This fair return fixed by law not per
cent But the law in place directs the
Commission to fix rate that would the roads
per cent and in place does pledge the
antee or to nicke to any railroad earning less than
per cent.
Ii railroad under the rates fixed August 1920 fail to
make per cent its valuation that is its can not
look to the government call the for any help
Those who persist in circulating the report regarding gov
eminent guarantee of railroad income certainly know that
such statements Misrepresentation absolutely
trary to the law and the facts in the case.