The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-05-05
Frederick Haskin's Letter
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A REMEDY FOR THE RAILROADS

| cent He points out that railroads
like all Other enterprises. INNS,
pass through periods of prosperity
and depression. He says that IN
the natural course of business ths
individual or the company is ahIs
In good times to earn enough mon
ey to permit of laying aside a sp--
plus. This surplus is drawn Dnor
when hard times come and earn
ings dwindle. This is the policy
which kept alive many great cor.
porations and many small arms
during the last year of two of bust
ness depression.
Now. DR.. Muller points out. II the
law limits to low figure the
amount Of money which a railrns5
may earn. how can it lay a surpIUs
aside for q period of diminished in
come?
The natural course for a railroad
to taxa In hard times would be IA
reduce rates. All merchants do
this. In prosperous times. thav
can get high prices. In hard tfmas.
they must cut. By such a coarse
business is stimulated. BARGAINS
trade Is enlivened to such an extent
that profits begin to resppear and
prosperity returns. The same rule
would affect railroads. II. when
times are hard, the railroads could
cut freight and passenger rates and
offer bargain transportation, traf-
fic would be stimulated. But under
the earnings restriction rule, Dr..
Muller points out. the railroads
must run counter to the natural
trend, and, In hard times, increase
their rates.
Sees Suicide for Roads.
ALI business men and economists
know that when rates go up. bust
ness decreases The railroads thus
are put in a suicidal position.
DR.. Muller believes remedy ex-
lists for this situation but not in the
transportation act as now drafted.
He favors the consolidation Of the
railroads but declares the personal,
competitive element muse be re-
stored.
It will be remembered that a
couple of years ago the country
was hearing much about the Plum
plan. This vas plan whereby the
railroad union workers would
share in the earnings of railroads
DR.. Muller proposes a plan which
Is somewhat reminiscent of this.
He would permit the railroads TO
earn as much as they can in pros
porous times. They would be reg
ulatAd. especially to prevent the
cutting of melons and the distribu-
ton of dividends to stockholders 10
the extent of impoverishing the
surplus laid by for the rainy day.
But otherwise they could go ahead
and make what they could under
the regulation, as TO general rea-
sonabIeness, of the interstate com
merce commission. In hard times
they would depreSs their rates IN
til business was attracted and slim
ulated once more.
The vital point of DR.. MUIler'5
plan seems to be that as rates and
earnings went up or down, wages
OF workers would also. This, he
believes, would create an esprit de
corps in railroad systems which
would make for the highest order
of efficiency. There would be
sort of profit sharing element in
the plan and the worker would
know that his chances of keeping
his wages up and earning good
dividends would be in direct ratio
to the excellence of the service he
rendered. DR.. Muller admits that
such a plan would take uniform
lty out OF railroad wages, one svs-
tenn earning more than another.
But he sees no fault there, friing
this the fortune of business which
tends to create a healthy rivalry
among workers which would inure
to the benefit of the public and the
state.