Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1923-01-19
q, LEVI STEPHENS LEWIS.

y :, i true as Secretary Hoover
s.i,res in his annual report that
ss>..'',oyaation facilities are crippled
~ -ssult Of 'long-continue finan-
a. stsryationp of the railroads, and
l. also true, as he further de-
that commercial progress IS
s.lo5 because of this alleged long
.aatf,ued policy of financial starva-
-. and that railway equipment
@..sfore is entirely insufficient
=. present needs, then the facts OF
- natter should be made plain, Tor
- is overwhelming official evi-
- that nullifies and contradlcts
any such claims. =.
~ advance sheets of his forthcom-
- annual report, that railway
earnings under present conditlons
aYe obviously not large enough to
aszure railway expansion.
Concerning this last claim 1t Is SUI
fr,ent to refer the Secretary to the
"statistics of Railways In the United
states" from which 1t appears that
tbe clear net profits OF the railroads
&diyjded and undivided-averages,
according to these reports, IN excess
of ten per cent per annum on the
nar value of all outstanding railway
ffoeks and bonds, over and above
operating expenses and taxes, during
tie four calendar years l9l6-l9l9,
which as | have already pointed out
in former treatise, Is obviously
fxenty-fye per cent ner annnm at
least on the present cost value of the
enfire system of American railways.
Shows Big Surplus.
If the Secretary will further study
the Statistics of Railways IN the
limited States, published by the In
terstate Commerce Commission, he
will discover from the reports of In
come and Profit and Loss" therein
contained. that the carriers had on
hand December 81, 1919, more than
bree billion and two hundred mil
lion dollars of surplus (which means
of course undivided proflts) when is
a sum sufficient to build and equip
a first class line of railroad covering
a distance more than the entire cir
conference Of the globe on which we
live and move and have our being.
These figures cover all lines, namely,
roads under Federal control-cor-
porate and Federal--and non-con-
troled, and they may be verified by
reference to pages al, az and rs of
the aforementioned publication.
And still further: it apears from
this same report (l9l9) that includ-
ed in the operating expenses of that
year of class one roads only, the sum
alleged to have been paid for repairs
to rolling stock only exceeds one bill
lion dollars during these twelve
months which is also an amount suf-
ficient to build and equip ten thous-
and miles of first, class line. And
jplease note here that these figures
represent only the cost of repairs to
the rolling stock of class one roads.
The expense for such repairs for class
two and class three roads appear not
to be included
A 40,000-Mile Road.
So it appears from these official
reports that the undivided profit then
IN the hands of the stockholders, the
owners, December 81, 1919 plus the
sum alleged to have been paid out
for repairs to the rolling stock on a
part Of the system only, during that
one year, represents a total sum
sufficient to build and equip more
than 10000 miles of first class line of
railroad
And from this undisputed official
data it appears to be very "obvious
that Secretary Hoover has disre
garded the Statistics of Railways in
the United States in his annual re-
port, or that he has some inside
information" that nullifies and con-
tradicts these reports, which reports
BY the way cost the people of the
United States several million dollars
year. | am aware of course that
the complaint has frequently been
advanced that mo reliance what
ever can be placed on official rail-
way reports in order to determine
now much profit, or how little, is
realized from the operation of Ameri-
can steam railways but nevertheless
tne Interstate Commerce Commits
sion Is accepted far and wide as the
highest authority in the land con-
eeernlng railway statistics. If the
secretary or any other individual has
any authentic information that rem
GERS the publication of the Interstate
commerce Commission null and void,
should be made public.
Great National Problem.
IN conclusion | take the liberty to
pSfaphrase the two last paragraphs
ei the Secretary's learned treatise
Ier II Is very obvious that the rail
toSa problem looms up now as never
before IN the history of the country,
as one Of the paramount if not in
9esa the paramount political issue of
There can be no question that
aedon IN some direction is impera-
I'VE. In the various problems af-
eeeeahg the railroads of the United
state the whole business organism
" the country-industrial, CONNER
els'' and fnancial--is involved, and
aa understanding of these problems
oH me part Of the general public is
ootlously essential to their proper
solutiOn.n
u industry and commerce is to be
ssonaucted to promote the general well
ere and to establish Justice, for
fl.1eh purposes the constitution of the
t..seu states was written, then the
l40' the whole truth and nothing
-. me truth must necessarily be
revealed
HE sins of railway finance" aps
ssaf iE to be no less uncomfortable in
shs less twentieth century days than
ne Ne are admitted to have been in
~ ~ generations and it is not credit
1o.s. 9o.s 20 either the intelligence or the
-. s,,..'oIism Of the American people
FVr,Lyh M ,Lyhey haven't appreciated, mot
i ~ ~ FAMILY" all that's involved
- ne neranrinl nn..as.A - IL -.