South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-09-13
REPEAL RAIL LAW,
BROOKHART STAND
Progressive, Iowan Candidate
for L. 5. Senate. Chal-
lenges Cummins.

DEs MONIES. Ia Sept I2-B,.
peal of the transportation act. which
hc declares opened up untold ave.
aues for waste. is the principal is
sue upon which Col :. w. Brook
hart. republican candidate for
United states senator from Iowa. Is
making his campaign for election.
Sen. Cummins. senior senator from
the same state. is co-authOr OF the
act which Br0okhart denounces.
Col Brookharts nomination wac
hailed by progresslves as "a singular
victory
The railroad law should never
have been enacted and 10 should be
Immediately repealed" Col Brool1-
hart declared 10 a representative OF
The News-Times.
1T Iegalized the capitalization OF
about seven billion dollars Of water,
and provided legislative guaranty
of 9 ID percent on this fictitious
capital
AT The very time that the inter
state commerce commission was fix
ing the aggregate value Of the rail-
roads at Approximately 10 billion
dollars an the railroad stocks and
bonds Of the country could have been
bought for about u billion dollars.
About 10 billion dollars Of this bond
cd capital was procured by the rail-
roads at approximately IL per-
cont. making a bonus Of more than
$50 million dollars a year difference
between this interest rate and tire
guaranty rate The guaranty pro-
visions OF the law, which are Ia ef-
feet a 'cOst-plus' system. opened up
untold avenues for waste in the
furnishing Of material and supplies
All of these items increased the cost
NJ transportation by over a billion
dollars year.
Wages have been reduced more
than 400 million dollars n year. not
counting the cut involved in the
present strike. but there has been
100 corresponding reduction in rates
one result is that some roads have
failed to earn the guaranty. while
others have paid extortionate divi-
deuds
The evils Of this law will live
long after il is expunged. but it
ought 90 be replaced at once. and a
law passed which will prevent the
foisting of such an unjustiiably high
valuation upon the people, on which
they must pay dividends in the form
Of excessive freight rates. For ex-
ample, we should not permit the
railroads TO capitalize the unearned
f.- q g lie
of millions of dollars a year on land
which they received free from the
people Under such a system the
more we gave them to start with,
the more we owe them now"
Replying to a recent statement by
Sen. Cummius. that If Col. Brook
harts power were commensurate
with his apparent desires. this gov
eminent would not last a fortnight, ="
Col Brookhart said:
Either Sen. Cummins is right
and I am wrong or vice versa. The
voters Of Iowa will decide the ques-
ton in November. If am defeated
l am out. II I am elected, Sen. Cum
minis should quit. as it will then be
apparent that he is not in line with
the views Of the people Of this state.
Sen. Cummins should be willing to
risk two senatorships on this cleo
ton. Therefore propose that he
submit his resignation to the COVER
nor OF Iowa. 10 take effect the day
T am elected United States senator,
and permit the governor 70 appoint
some one i'm his place more in har-
mouy with the views of Iowa
voters"