The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1922-12-06
GBHHINS DEFENSE
OE Freight RATES

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just about a month ago, speaking
at Des Moines, Iowa, Senator Cum
chairman of the interstate COM
merce. committee, explained in detail
the provisions and operation of the
transportation act and asserted that
such act is in no way responsible for
high freight rates. In the month that
has elapsed since that address was. de-
livered and widely published, no one
has undertaken 60. controxert it's
statements.
In his address Senator Cummins
outlined those provisions of the act
which relate TO the fixing of freight
rates. Among those provisions were
sections which required that the inter-
state commerce commission, in the ex-
ercise of its power to prescribe just
and reasonable rates, may from time
to time establish rates so that the ar
riers as a whole, or in rate territor-
les, will, under honest, efficient and
economical management, and reason
able expenditures for maintenance of
way, structures and equipment, a
an aggregate annual net railway op-
Grating income equal as nearly as may
eh, to a fair return upon the aggre-
gate value of the railway property
of such carriers held for and used in
the service of transportation. An
other provision required that during
the two years beginning March /,
1920, the commission shall take as
such fair return a sum equal to 5h
per cent of such aggregate value, but
may in its discretion add thereto a
sum not exceeding one-half of l per
cent to make provision in whole or
in part for Improvements, betterments
or equipment.
Those are the provisions of the
Transportation Act which have been
charged with being the cause of high
freight rates.
The Constitution of the United
! States declares that private property
shall not be confiscated. The court:
have construed that provision of the
Constitution to prohibit any govern
! mental limitations which prevent th'
owner of property from receiving
: just and reasonable return thereon
Even il the Constitution had not thu
safeguarded rights OF property, ever,
= man will agree that confiscation i
: wrong morally. Furthermore, ever,
: man will admit that to impose a lega
restriction which prevents a reasona
bic return On property amounts t
confiscation.
We do not recollect that anyone ha
: asserted that a rate of 5h or s De
+" cent is ~unreasonably high. In faci
there has been no occasion for an
: one to raise such a question, for tn
records of the interstate commerc
commission show that the highest ar
nual rate of return since the Tran;
= portation Act was passed amounts t
. only an average of 3.3 per cent o
the property used in railroad tran:
"a p~ortation.
"a When all these facts are taken int
IL consideration it is readily apparer
d that no one can controvert, as no or
has attempted to controvert, til
10 statement made by Senator Gun
minis, that the Transportation Act
not responsible for high freight rate
Since the roads are entitled to a rea
enable return, and the present freigl
rates r yielding only 3.3 per Ger
and 3.3 per cent is less than a reaSol
able return, then it necessarily follow
be that the law which fixed the standal
upon which rates shall be based
G. not responsible for high rates.
in 1t is safe to assert that certa
n newly elected and reputedly radio
of members of Congress who promised
urge the repeal Of the Transportati,
RS Act, will not undertake specifical
TIL to demonstrate that high freight rat
are caused by the Transportation Al
tie In a political campaign they were al
27 to make votes by denouncing hi,
SO freight rates and the Transportati
Act in one breath. A definite a
specific analysis of the provisions
> the law and the income of the ra
I'm roads will not support their carnpai
8 assertions. The fact of the matter
& that high freight rates are due to t
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