Evening star., 1923-12-18
In TODAY'S SPOTLIGHT
BY PAUL Y. COLLINS

against being put out Of business by
, rates which might produce suniciens
, profit for the strong roads but not
! make expenses for the wnak ones. The
| policy Is based on tn. right OF COM
munities served by the weak roads to
have their transportation facilities
/ protected against the overcompetition
| OF the strong lines
To guard against excessive profits OF
the strong lines (Which would accrue II
the rates were fixed upon the needs OF
I the small 1ines), IL Is provided that al
profits in excess of 8 per cent shall be
divided into two funds and half Of the
excess shall be paid TO the Interstate
Commerce Commission. to be used at
| Its discretion In helping the weak lines
! OF that particular group. This help
ma"t and LEASING II to the weak lines.
The other ha'f of the excess over 6
J per cent Drof1t must be held bv the line
earn'no 1t. in special res@rve fnnd to
be used to cover losses in '1aan" years:
or special needs In eqninmnnt or i'm
provement approved by the commission.
II capno- fo,rn ir dividends to stock
holders. Stockholders do rnnaive more
than per cent on their individual in
vestmentS when thev buy shares at
toss than par The Chicago and North
W"starn road one ~ 'ha STRONGEST In
the country. is now earn'no onlv par
cont on par b"t its stool has been
selling. nrono~tionate'y at less than 60
per cent OF par value.
! T"at prn.-ioior roncarnt,e nynass
/ profits over s per cont. wh'"h is tArhni-
caiiv known as the "~anant"ra clause "
| 10 challenged nv snrne OF TIE roads. and
there fs now Dardino in the United
S-afes Srr-er,e Tov-t .-pea' made
hv the Tnteretate Cornrnnr Comrn's =
sion IN he TovaS casa Lnown ~ fine
rNa'-ton Goose r~eat case basad on this
,alN H.. ~.
was arrued a fnw davs aan and O de-
cision is expected next month.
X X X X
: None Of the opnonents of the law
objects to s per cent income to the in
vestors but the criticism lies against
the valuation on which that rate OF
income is based. How to value a road
is one Of he most complicated ques-
tions known to engineers.
1t Ia claimed in defense Of the COM
mission thnt the farmers are without
anv data as to the valuation Of rail-
their oniv viewDo'nt is a wish 70 low
er costs to themselves in getting their
products to market.
The hmn~tc"n Federation Of Labor
objects 70 the Drovisions of the 'aw on
the ground that the companies are
mum efficiency" AS the law requires,
since In some cases they refuse TO re-
ins.atn strikers who belong to unions.
The American Federation of Labor
also objects to the Railroad Labor
BOARD on the ground that since it
cnnr,r'ses three representatives of the
emnlovas three Of the employers and
three of the nuh'ic. Vt is three against
| six-on the assumption that the pub
80 would a'wa-s side with the am-
| blowers against the men. President
Gomners also contends th"t the com
| nu'sory arbitration clause" and the
mower of the courts TO stop strikes ny
/ in junction. instead of trial by jury,
| makes a continuation of strike con-
| tempt of court.
These are not all of the objections
cited by various opponents OF the law,
! hut are noted simply TO indicate the
| nature Of the opposition, upon which
| is now staked the organization OF the
chairmanship and personnel of the
| strategic committee on interstate
| commerce, and on which will un-
| doubtedly rest one of the major is
/ sues of the coming campaign. on the
outcome. say he leaders Of the oppo-
| sition, may depend the lineup TO u
large extent Of the farm and labor
vote.
Copyright. 1923. by Panl V. Collins.l