The Omaha morning bee., 1922-11-26
Railroads S Must
Have Fair Returns.
Asserts Speake er
Charles Dillon Of Association
Of Railway Executives Says
Misunderstanding Ancnl
Carriers l. Prevalent.

Charles Dillon, assistant TO th'
chairman Of the western committee on
public relations. Association Of Rail
way Executives. addressed the Trans
missouri Passenger club FRIDAY night
NJ the Chamher ~ Commerce on "The
Railroad Situation and the Esch cum
Minis Law
Mr. Dillon asserted TINT consider
sble mlsinformston had been broad
csst and Misunderstanding expert.
enced auent the railroad situation
With respect TO earnings and IN par
ticular 10 guaranteed earnings IN the
railroad hw
When sou tell tho farmers that
tie railroads aro guaranteed certain
incom - they naturally become 5ntag.
onistic." lie a0id. IAN that the In.
terNtate Commerce commission liz EN-
powered 10 do il 10 establish rates
that VIII yield q fair return under II.
fcient management The average
rate Of return ~ oil railroads from
September I, 1890. when the Ruaran.
teed income was stopped, to septem.
beri, 1922, was 3T per cent. which
vas s431 100000. less than 5 3t per
cent. How can man say that the
railroads are guaranteed something
which they do not rcceiye?"
Run by 30 Bodies.
lie stated that there are 20 rcglla.
tive bodies in this country running
the railroads, beginning with congress,
the Interstate Commerce commission,
then the railroad labor board and
down TO the state legislatures and
pubic utility commissions. There are
more than 1000 laws IN the country
affecting railroads he noted The
speaker added that the Interstate
Commerce commission reports show
that for tho period Of nine months
which ended September 30 Of this
year all railroads earned 3.96 per
cent on valuation and that during the
pame period the western roads earned
$40 per cent. lie stated that earnings
are falling of.
"Tho railroad business as far MS Dc.
yelopment is concerned has stopped,
The railroads az whole will not be
nble to meet the transportation re.
ouirements of the country unless
there is fairer attitude on the part
OF the public and they are permitted
10 earn fair return" he added
Rates Lower Here.
Mr.. Dillon quoted statistics to show
that passenger rates are much lower
in this country than In Europe and
service better. lie deprecated the
statements OF politicians who abuse
the railroads for political expediency.
when the facts OF the case would
make a different showing.
In discussing the proposal OF Sena-
tor.elect r. 3. Howell TO take over
enough railroads TO make one trans
continental line 10 force down freight
and passenger rates by competition,
Mr.. Dillon said privately owned lines
should show profits in the face OF
such opposition.
THE only thing private railways
have TO fear from such a demonstra
tion." said Dillon, "is that the gov
eTnIneUt fHHNHy WOulu IlS TdLcs anu
incur operating expenses with a
reckless disregard for the losses that
would result and that would have to
be paid by the taxpayers.
Canadian Road Pays.
As an example, the Canadian gov
ernment's experience in government
competition with private lines was
given by Mr.. Dillon. The Canadian
Pacific railroad, charging the same
rates as government railways, has
been able 10 pay dividends contlnu'
ously while government roads have
added to the public debt more than
$500 goo 900 since 1914, he said.
Anyone sincerely concerned In i'm.
proving the transportation facilities
OF this country should find no diff
Guilty In discovering that the present
situation is the result OF l2 TO Is
years regulation by federal and state
governments he said. These regu.
lations and laws and agreements with
labor have cut down income while in
creasing the outgo and have served
TO discourage investors to the point
that roads most in need of 1t have
found IT almost impossible to obtain
new capital for development"