The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1922-08-08
iTRANSPORTA1lO
A | SAID TO 0 b Be:
N|SREPR.E:.S | |:
Democrats Assailed for Max Nal
ing Charges On Condition
of Railroads.

=
legislation has been more misrepSs
resented than the Transportation
Act under which the railroads
were returned to their private
owners declares Jonathan
Bourne. Jr., president of the
Republican Publicity Association.
"a few agitators who find It to
their interest to curry favorWltA
shippers, have represented that
the Transportation Act increased
freight rates. A3few radical lab or
leaders representa- it as i'm posinS
injustice upon railroad EN- 2loyes.
Thus there is studied effort to
create a widespread public pre-
JUDGE against the act, particular
ly among wage earners and ship
pers. gHts
s 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 Dem ocratic administra \
ton, the expenses of operation
were increased far in excess oftha
increase in revenues, with the
resultGthat the roads were operas-
LII 4OSS VI = W OcV,VOVs pa
month or S4SO,O0O,OOO per year,
The Democratic administration
took over the roads when they3had
in their treasures money for oper~
Eating expenses. It turned them
back to their private owners vito
their treasures empty. instead
of increasing freight rates, the
Democratic Railroad Administra-
ton drew upon the Federal Trea
sury for a part Of the. deficit aud
left the remainder of the d elicit to
be paid by the Republican admins
stration.5 5
Notwithstanding the roads
were being operated at loss, the
representatives Of the employees
fled lapplicationsf for increases ia
wages six, m onths before the roads
were returned to their private
owners, which increases. if gran y
ed. would have imposed an in
creased expense upon the roads OF
$8O000O,O00 per annum. Ths
Democratic ADMINISTRATION tooS
no action upon those applications,
but after the roads were returneS
to their private owners, the Rail X
road Labor Board; because of the
increased cost OF living, granted
wage increases which added
S$650,0OO,OOO per5yearG to the ex
penses Of the roads. This, togo
Their with the previous rate OF de
Ificit, meant that the roads woulG
be operated at a loss of 100000 IS
900 per month, or more than q
gS1.000.OOO,OOO per year.
.That is the reason why in-t
creases in freight rates were
necessary, and an increase would
have been necessary regardless OF
the Transportation Act It has !
been repeatedly stated, though
falsely, that the Transport
Act guaranteed the roads an. in !,
come which would enable them to
pay dividends of 511 per cent. The !
fact is that the bill merely alt- !
thorizes increases which will on
the average, amount to not 20 /
exceed 5 II per cent on the actual i
value Of the property No divt~
dends whatever are guaranteed>i
and the factsis that some of the
large$and important railroads OF |
the country are paying no ,dlv1>
dends whatever If the Transport
tation Act had made no reference
to increases in freight rates, thu
exi gencies of the situation would |
nave nduevS1L 1ulPel dliY - 80 III I
Interstate Commerce Com missionsl
to grant increases which Would !
enable the roads to pay their opero,
ating expenses. Instead 9 impoaS7
ing a burden upon shippers, the
Transportation Act in reality pros
teits the shippers by limiting the
increases to such rate as will !
pay the roads on%the hole S ",
per cent on the actual value OF the i
property used in railroad opera
ton.
s7 "Itis an amazing thing thattbel
Democratic party, which was
chiefly responsible for conditions
which brought the railroads to the
verge OF bankruptcy, should now
charge the Republican party WITH !
responsibility for the freight rates
which their Management mace
absolutely inevitable.