Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1922-05-04
EDITORIAL
ASKS A FAIR TRIAL.

ASkS A AK 1 NAL
I'm a letter to the employees of the
= Central of Georgia Railway, Presl-
dent W. A. Winburn sets about In
clear and concise manner to inform
them concerning the transportation
act and the proposed changes in it,
so that they may be able to discuss
it intelligently. In it he makes a
plea for a fair trial for the act be-
fore an attempt is made to amend it..
The letter is of value because it
gives in lucid form the essentials
of the act as at present Constituted
and the basis of the proposed
changes. These proposed changes
have to do with restoring to the state
commissions absolute control over
common carriers within the state Dor
ders, including the fixing of rates.
That this cannot be done in fairness
to the roads or to the country itself
is adequately shown by Mr.. Winburn.
Here are some illuminative extracts
from his letter which we recommend
to all persons to read:
"The pending legislation proposes
two attacks on the existing law: first,
to repeal that portion of the trans
portation &C. which enables the Inter
state Commerce Commission to fix
rates which will permit the railways
to earn a definite return on their
valuations, and, second to repeal the
clause which gives the Interstate
Commerce Commission power over
interstate rates insofar as these rates
amount to a discrimination against
interstate commerce.
"The transportation act as it now
stands simply declares that railroad
facilities must be adequate to meet
the commercial needs of the public.
That in order to insure this ade-
quacy the revenues derived from
rates and charges shall constitute a
fair return on the actual value of
the property used in performing the
public service. That the Interstate
Commerce Commission (the govern
ment's agency shall determine how
much revenue constitutes a fair re-
turn on the value of properties, and
shall also determine that property
value. The public mind should be
disabused Of the most common mis-
conception of the law-that it guar
antees the railroads return of 6
per cent on their value. Had there
been such guarantee the govern
ment would owe the railroads ap-
proximately $5OO,OOO,OOO loss esti-
mated in operations during 1921. Of
course, the railroads are making no
claim for this loss. The law does
instruct the commission to fix rates
with view of enabling the railroads
to earn fair return on their prom
erty and stipulated per cent as the
maximum rate of return for the tive
year period, ending February %,
1922, but the rates so prescribed
under the law failed to yield anv
such rate of return and since August
81, 1920, the borden of these losses
has fallen upon the railroads.
1T ought to be made perfectly
clear to our patrons that rates I'M
der the act are based on fair re-
turn on the actual value of the rail-
road property used in public service
and that the Interstate Commerce
Commission fixes this valuation. Can
italization Isl not the measure and
there is no danger that the public
will be required to pay on so-called
"w0terel stoct. .
The main contention arises, how
ever, over the enlarged authority of
the commission to remove discrimina-
lions as between state and interstate
rates. This has been criticised as an
invasion of state rights" or the de-
NAL of the right of "self-determina-
t1on" on the. part Of the state COM
missions.
For many years laws have been
in force prohibiting favoritism and
special advantages to certain railway
patrons. The purpose of the law is
to place them on an equal footing.
Ii 1t is wrong for the railroads to
give certain patrons undue advantage
over Others, it would be equally