Milford chronicle., 1922-08-11
THE TRUTH ABOUT THE TRANS
PORTATION ACT

Probably no piece of national leg
islation has been more misrepresenteC
than the Transportation Act undel
which the railroads were returned tt
their private owners" declares the
Republican Publicity Association
through it's President, Hon. Jonathan
Bourne, Jr. "a few agitators who finG
it to their interest to curry favor with
shippers, have represented that the
Transportation Act increased freight
rates. A few radical labor leaders rep
resented it as imposing injustice upon
railroad employees. Thus there is
studied effort to create a widespread
public prejudice against the Act, par
/ ticularly among wage earners and
shippers.
There are a few outstanding and
incontrovertible facts which every
citizen 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 opera
tiOn were increased far in excess of
the increase in revenues, with the re-
suit that the roads were operating at
a loss of $4O,000,000 per month or
$480, 900, 900 per year. The Democratic
administration took over the roads
when they had in their treasures
money for operating expenses. It
turned them back to their private oW-
ners with their treasures empty. In
stead of increasing freight rates, the
Democratic Railroad Administration
drew upon the Federal Treasury for
RI Of AIo 11Go al 10eA
mainder of the deficit to be paid by
the Republican administration.
Notwithstanding the roads were
being operated at loss, the represen-
tatives of the employees filed applica-
tiOns for increases in wages six
months before the roads were return
ed to their private owners, which in
creases, if granted, would have impos-
ed an increased expense upon the
roads of $S0Q,000,000 per annum. The
Democratic administration 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 increases
which added $65O,OOO,O0O per year to
the expenses of the roads. This, to-
gether with the previous rate of de-
ficit, meant that the roads would be
operated at a loss of $9G,000,000 per
month, or more than $1,000, 900
per year.
THAT is the reason why increases
in freight rates were necessary, and
an increase would have been neces-
sary regardless of the Transportation
At 1,oe, A15
though falsely, that the Transporta-
tiOn Act guaranteed the roads an in
come which would enable them to pay
dividends of 51a per cent. The fact is
that the bill merely authorizes in |
creases which will, on the average, |
to not to exceed 51s per cent |
on the actual value of the property. |
No dividends whatever are guaran-
teed, and the fact is that some of the
large and important railroads of the
country are paying no dividends what
ever. If the Transportation Act had
made no reference to increases in
freight rates, the exigencies of the
situation would have made it impera-
tive for the Interstate Commerce
Commission to grant increases which
would enable the roads to pay their
operating expenses. Instead of impos-
ng a burden upon shippers, the
transportation Act in reality pro-
ects the shippers by limiting the in
;reases to such a rate as will pay
he roads on the whole 515 per cent
IN the actual value of the property
lsed in railroad operation.
ut is an amazing thing that the
Democratic party, which was chiefly
'esponsible for conditions which
brought the railroads to the verge of
bankruptcy, should now charge the
republican party with responsibility
or the freight rates which their mis-
management made absolutely newt
ble."