The Tomahawk., 1922-06-08

| Washington, D. C.-Freight reduc
terstate Commerce commission to be
effective July LIST, will not apply to ag
ricultural products nor will they eff
feet passenger and Pullman fares.
| Thus the farmers can gain by the
new decision only on materials which
they buy and it is likely that increases
in prices will absdfb the decreases ir
freight rates on those commodities.
The reason given for not getting
the rate on agricultural products is
that reductions effecting these prod
ucts have already been put into eff
| feet. The commission refers to the
| lower rates on coarse grains and hay
and to the voluntary reductions in
| agricultural products, which were tc
| last for 6 months unles large re-
| auctions were made in the wages of
railroad employees.
Another part of the decision fixing
| 5.75 per cent has reasonable rate OF
return on actual capital invested also
has immediate bearing on the farm
ers. The guarantee which expired on
| March list fixed the rate as per cent
This new rate is undoubtedly too
high in view of the fact that many
conditions point to a per cent rate
on call money in New York and AZ
If the public is to guarantee rate of
return, it certainly should be no more
than what is paid on good private Sc
curity.
In addition the railroad executives
have full power to pad costs and thus
make hidden profits as they have in
the past. Wide open cost padding will
flourish until the public gets actual
control over costs to public owner.
ship. The interstate commerce COM
mission has to take the figures of cost
of operation as presented by the COM
panies and allow freight rates which
will give a reasonable amount Of re-
turn after paying all these costs. Ev-
en- corporation income taxes are SUBJ
tracted before profits are figured and
hence the earnings allowed are really
something over per cent.
Commissioners McChord, Lewis, and
Cox, who have all taken progressive
attitude, urged sharper reductions.
Chairman McChord likewise dissented
from the SIS per cent profit and
Commissioner Potter wanted reduc-
tions in passenger rates.
The addition Of ex-Congressman
Esch to the interstate commerce COM
mission, who helped frame the Esch-
0,,,,or IN ~ r.
the commission a reactionary major
ity.
The decision is worded in such
shape as to allow conservative organ
i1ations to make extravagant propa~
ganda claims to- the farmers but as
a matter of fact the farmers get no
reductions in rates and on the other
hand have a new profit guarantee
forced upon them practically equiva-
lent to the old guarantee. In fact It
is worse because the present money
rates are at least per cent lower
than they were when the Esch-Cum-
Minis act was put into operation.
Farmers can hardly expect any Diff
ferent treatment so long as Wall
Street financiers are given a free
hand to manipulate our vital trans
portation system.
g.
COAL SITUATION GRAVE.
Full realization of the import of
the coal production suspension" says
President Lewis of the Mine Workers
'has not yet dawned on the American
public. The accumulated coal re-
serves of the country are being rapid
ly diminished and the much neralded
non-union production is totally made
quate to carrying for the nations
needs. In the anthracite coal fields
$4,000 men are on strike and produc-
ton of anthracite coal is completely
suspended"
The country is beginning to realize,
however, that the strike is mine op-
orators strike against the public rath-
er than a miners strike against the
operators. The operators forced the
strike in the first place by being un-
willing to live up to the terms of
their contracts with the employees
and by continuing to refuse, since
that time, to have any dealings with
IT these employees.
It is probable that the miners
would have consented to some reduc-
ton in pay, but the operators have
absolutely refused any negotiations
looking toward that end.
OF course the strike enables the
coal operators to force new contracts
from consumers at prices beyond
what would have been warranted by
cost production and the supply of the |
coal available.
AGAINST FILLED MILK.
Under a special rule the house push. |
ing the Vofgt bill to forbid shipments |
Of imitation milks in interstate COM
merce, a measure which congress has J
been sidestepping for months. The |
act also bars export traffic in such
products.
Organizations Of women and farm