Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1922-08-10
TIL ETRUTH ABOUT THE TRANS.
FORMATION ACT

WASHINGTON, Aug. 7.-"PrObab-
ly no piece of national legislation has
been more misrepresented than the
Transportation Act under which the
railroads were returned to their pri-
vate owners" declares the Republican
Publicity ASSOC alton, through it's
President, Hon. Jonathan Bourne, Jr.
"A few agitators who find it to their
interest to curry favor with shippers,
have represented that che Transpor-
tation Act increased freight rates.
A few radical labor leaders repre-
scented it as imposing injustice upon
railroad employees. Thus there is
studied effort to create q widespread
public prejudice against the Act, part
icularly among wage earners and
shippers.
There are few outstanding and
incontrovertible facts which every citi-
zen should keep in mind. One Of
these is that during the twenty-six
months Of political management of the
railroads under the Democratic adj
ministration, the expenses of operat-
ion were increased far in excess of
he increase in revenues, which the
result that the roads were operating
at loss Of 10000, 900 per month or
$3.50, 000, 900 per year. The Demo-
cratic administration took over the
roads when they had in their trea-
suries money operating expenses. 1t
turned them back to their private
owners with their treasures empty
Instead Of increasing freight rates,
the Democratic Railroad Administra-
ton drew upon the Federal Treasury
for part of the deficit and left the
remainder of the deficit to be paid by
the Republican admin stration.
Notwithstanding the roads were
being operated at loss, the represen-
tatives of the employees filed oppli-
cations for increases in wages six
months before the roads were return
ed to their private owners, which in
creases, if granted, would have inn
posed an increased expense upon the
roads of $8O0,000,0O0 per annum.
The Democratic admi. Cstration took
no action upon those applications,
but after the roads were returned to
their private owners, the Railroad
Labor Board, because of the increased
cost of living, granted wage increas-
es which added $3.50, 900 per year
to the expenses of the roads. This,
together with the previous rate of
deficit, meant that the roads would
be operated at loss of 100000, 900
per month or more than $1,000 900,
900 per year.
"That is the reason why increases
in freight rates were necessary, and
an increase would have been necess-
airy regardless of the Transportation
Act. It has been repeatedly stated,
though falsely, that the Transports
ton Act guaranteed the roads an in
come which would enable them to
pay dividends of 5hRo. The fact is
that the bill merely authorizes in
creases which will, on the average
amount to not to exceed 51aR on the
actual value Of the property. No divi-
| dends whatever are guaranteed, and
the fact is that some Of the large and
important railroads of he country
are paying no dividends whatever
If the Transportation Act had made
no reference to increases in freight
rates. the exigencies of the situation
would have made it imperative fol
the Interstate Commerce Commission
to grant increases which would en-.
able the roads to pay their operating