Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1922-12-13
WEDNESDAY, DECEMBER 10, 1922
OUR SLOGAN:
The Evening Journoi-the First
Paper of the First City of the First
State.
RAILWAYS SHORT sf,f4oOo OF PER GENT
RETURN UNDER TRANSPORTATION ACT

RAILWAYS SHORT s1,f4o,Ooooo0 OF PER GENT
RETURN UNDER TRANSPORTATION ACT
TIME Railway Age shows editorial in its current
issue that thirty-one months OF operation OF the
Transportation Act up to the end Of September. 1922
the railways failed by st14soooooO TO receive net re-
OF per cent. their valuation. That should
interest the people OF Delaware.
Commenting upon the widespread agitation for
amendment repeal OF the transportation Act, the
Railway Age expresses the opinion that contrary TO the
widely prevalent opinion the transportation Act thus
FAR has done the railways as much harm good.
Analysing the returns the railways have received
since the Transportation Act mo effect the Rail-
way Age says: THE rate making provision directed the
Interstate Commission fix rates that would
enable the railways to fair return upon their
valuation directed II 10 take measure OF fair
return for the two years ending 1sga not
less than 5 \ per The Commission ruled IN the
that fair return that tire wouA Be
cent. and in the 1922 reduced rate case. that
fair return would be 5x per cent.
What have the railways actually got? IN the first
year their private operation that ended
on March /. 1891 they had a return. including
guarantees six months OF that year OF only
s1s per In the year ending March l. 1924 they
mad net return s.e5 per The average for the
years s.57 per cent For the entire two years
1t 600 less than return of cent on
valuation and zoe less than the ~ per
expressly mentioned in the law.
spite the fact that the railways during these two
years received $3.50 ooeooo less than the very minimum
mentioned by The law. the Commission inmed-
stey the termination Of these years yielded
public demand and made general reduction OF freight
and during the seven months those ending
September 1922 net averaged less than
cent and IN August and September averaged only
~ per The net which railways have
entire thry-one nce the Trans
portston Act into effect for which have COM
piete figures has been si.14soo0ooo less than per
cent $50 100000 less than 4 per cent Il has
been fact IN spite OF the provisions this act the
smallest they have received any equal
period since statistics for the railways whole
been kept.
It is inconceivable that the act had never been
passed. regulation would have could have restricted
them lower return than this But while the rate
making provisions thus far have the railroads
good. they have in respect done them They
have afforded pretext for the widespread dissemna-
ton OF propaganda to the effect that the railways
guaranteed" return OF y or per cent. and this 1
propaganda has done much TO createz hostile public
sentiment. The making provisions are doing harm
in another way. They provide that any railway which 1
than per hand one-half OF this
amount 10 the Interstate Commerce Commission
Now while the railways a whole have not earned
anywhere the specified by the law and ex-
pected by them Commission taking steps to col
lect this excess return the prosperous
railways Plainly the making provisions up TO this
time have done the railways more harm than good
With respect TO the labor provisions the Railway Age
"The second decision rendered by the Railroad
Labor Board caused. May l. 1920 the largest ad-
On the OF railway employees ever given TO
any class Of workers It put the railway wages
far higher than It during the Just when the
greatest decline OF business in history beginning
The board subsequently reductions OF wages
but they made long after extensive re-
ductons had been in almost every other industry
and then left railway higher than those in
other industries Thus during period Of acute bust
ness depression the railways under Transportation
Act. were compelled pay excess Of what
they probably would have paid II the Railroad Labor
Board had never been created.
The principal purpose for which the Labor Board
was created to prevent strikes creation did not
however the and costly railway
strike that ever occurred IS railway
employees have been benefited from passage of the
labor provisions but difficult to see how the rail-
ways have been benefited by them.
The truth IS that the only provision OF the Trans
portation which have thus far done the railways
any good whatever those which continued the war
during the first six months OF private
operation and those which resulted being made
10 the railways by the government to carry them
through the period of transition from government to
private operation"
The Transportation Act on the whole is a good law Ii
but good law is better than law If It is not
backed by public sentiment carried in the spirit b
IN which # enacted The principal purpose those lin
who framed the Transportation Act 10 give the
country law which would end the near-conhscation
policy Of resulson which prevailed for more than ten