The Miller press. [volume] (Miller, S.D.) 190?-current, 1923-05-03
IN DEFENCE OF THE TRUTH
By THE Rev. HI. C. HENcELL, PHI. d.

per cent to any railroad In tie coun-
try. II. In the face Of constant gov
erRmental regulation and revision of
rates and wages any railroad la SC
marvel0usly well managed as to be
able to show a net return of So per
cent with which to pay interest on Its
bends, etc., II Is. under the Esch-Cum-
RiHs act, entitled to the 5A per cent.
but no more, no matter how efficiently
1t may be managed. Thus, while the
sch-Cummlns act limits the possible
net earnings OF the railroads to a
maximum of So per cent, 1t mo more
guarantees anything to the railroads
than the yolstead law guarantees one
half Of one per cen alcohol to the
users of near beer.
We are further told that the rail-
rocd stocks are largely water and
that the poor, long-suffering public Is
expected to guarantee So per cent
return TO this water" This charge
is also false.
The physical valuation, without ref
erence to stocks or bonds (capitaliza-
llbl1D, HlduC uliiltI lliC Lar OllCNtt Nuiud-
ton law of 1913, plus actual cash in
vestments made since, less deprecla-
ton, is greater than their capitaliza-
ton by millions OF dollars. In other
words, there is no room for the al
legged "water" In the railroads ever
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 depreci-
ate the value Of railroad securities to
the value Of German marks, a process
which amounts to ruthless conflscation
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, Of
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 so per cent; taxes 90 per cent:
fuel 100 per cent higher than they
we're at that time. Stories of freight
rates higher than the total price re-
ceived for wheat, etc, are pure bun-
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.
/ hold no brief for the railroads
or for any other industry, but I love
fair play and detest unfair propG-
ganda. / am a Catholic priest, but
! mrite neither as a priest 0 as a
Catholic, but as an American Citt-
zen who mews NTH alarm the cred-
ton of prejudice and class hatred
By men and organizations, not rec
ognized as socialists or communists,
but imbuedWih the same destructive
philosophy. and pursuing the same
ruthless methods. Ignorant or ma
hcious. they are endangering Amer
ican ideals of freedom ofopportunity
in favor Of the serviIe state in which
citizens in business as peH as poll
tics, wiH be the prey of scheming
| Observation-Disclosures emit.