Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1923-05-09
IN DEFENCE OF THE TRUTH
Reprinted from the Capital Times of Madison. Wis
By THE Rev. H. C. HENcELL, Pa. D.

per cent to any railroad in the coun-
try. If, in the face of constant gov
ernmental regulation and revision oe
rates and wages any railroad is SO
maryelously well managed as to b0
able to show a net return of 5% per
cent with which to pay interest on its
bonds, etc., it is, under the Esch- Cum
minis act, entitled to the 81 per cent
but no more, no matter how efficiently
it may be managed. Thus, while the
Esch-Cummins act limits the possible
net earnings of the railroads to q
maximum of 5A per cent, it no more
guarantees anything to the railroads
than the Volstead law guarantees one
half of one per cent alcohol to tina
users of near beer.
We are further told that the rait-
road stocks are largely ''water" ana
that the poor, long-suffering public ID
expected to guarantee 5A per cent
return to this water" This charge
is also false.
The physical valuation, without ref
erence to stocks or bonds (capitaliza-
tion), made under the LaFollette valua-
ton law of 1913, plus actual cash In
vestments made since, less depreci&-
ton, is greater than their capitaliza-
ton by millions of dollars. In other
words, there is no room for the ak
legged water in the railroads even
under the Eighteenth amendment.
1t may be true that shady deals In
over-capitalization (watering) Of rail-
road securities may be proved in some
notorious instances, but these cases
should be specifically named and con-
demned without involving all the rail-
roads. 1t is unjust to make sweep
ing generalization preparing to deprecf-
ate the value of railroad securities to-
the value of German marks, a process
which amounts to ruthless confiscation
of the property of railroad stock and
bond holders. Russian sovietism goes
no further than this.
A further lie against the railroads
that deserves to be nailed is the
charge of excessive freight rates, oe
rates so high as to rob the farmer
and other producers and the consumer
alike.
Records show that the average
freight rates on western railroads are
only about 40 per cent higher than
they were seven years ago, while wages
are 80 per cent; taxes 90 per cents
fuel 100 per cent higher than they
were at that time. Stories of freighE
rates higher than the total price re.
ceived for wheat, etc., are pure bur-
combe. In January, 1923, wheat was
S1.25 a bushel at Minneapolis, that
is, 40 cents higher than in 1913. The
freight rate from points as far as
South Dakota was only four to FIVE
cents higher than in 1913.
I hold no brief for the railroads
or for any other industry, but I loUe
fair play and detest umfair propa-
ga1oda. [ am a Catholic priest, baG
I mrite neither as a priest nor as a
Catholic, bat as an American Citi-
zen Uho q1eaUs Uitb alarm the creo-
ton of prejudice and class hatred
By men and organizations, not rec
ognized as socialists or communists
but inabuedwitb the same destructive
philosophy, and pursuing the same
ruthless methods. Ignorant or ma
lcious, they are endangering Amer
iconn ideals Of freedom ofopportunity
IN faUor Of the servize state IN phick
citizens IN business as meH as poll
tics, wiU be the prey of scheming
politicians. advertisement