The Birmingham age-herald., 1923-12-02
Guad WW Be Victor In Congress Organzationut WW Pay

ton In their valuation? Or, is 1t this: That the railroads are fearful that Congress will so amend the transpor- tation act as to restore to the states the right to fix and prescribe reason able rates on purely intrastate traf- fic, and deprive the interstate com merce commission from setting aside a whole body of state-maid rates upon petition of the railroads, and to eliminate the provision in the trans portation act, which undertakes to assure the railroads in each group regardless ofoperating expenses, the volume of traffic handled, agricul- tural, industrial and labor conditions, regardless of operating expenses, the home and abroad, regardless of taxes and every other element-a fixed re- turn on the valuation of railway property each year?
 There is a widespread demand for some modification of the transpor- tation act in these respects. The state commissions contend that the power possessed by the sovereign states prior to the transportation act should be restored, so that they can make rates within the borders of their own states to fit local condi- tions, subject only to the power of the interstate commerce commission to change them upon complaint of shippers, as was the case prior te the passage of the transportation act State commission scomplain that after making reasonable rates to meet local conditions, the action of the states should not be set aside merely upon complaint of the railroads that such rates do not correspond to some in terstate rates applicable in the same general territory.
 Farmers Side Of It.
 Agricultural interests. particular ly in the west, have complained that Congress should not single out the railroads and undertake to assure them a fixed income above all oper- ating expenses and taxes, and ignore their own demoralized and depressed economic condition. They contend that the railroads should not be a favored class, and should be required to operate under the economic laws of the country, such as affect every other industry, without subsidies, guarantees or assurances through any mandate upon the interstate com- merce commission. They claim that under the law, the interstate com merce commission Is compelled to fix rates designed to yield a definite re- turn on the valuation of railway property, regardless of whether or AlCl t6 lSuAloi ot Ph O0dS |aAg OA Ndi' not, stand the general level of rates so arbitrarily fixed. 1t is the view of these interests that rates should be made so as to encourage the free and easy movement of agricultural prod ucts and all other products at all times, but particularly when prices of agricultural products are at their bottom, and that an unyieldins freight rate structure that does not go along with the fluctuations in commonly prices and economic con ditions is paternalistic, and prefers one class-the railroads-to the prej- udice and disadvantage of alf other industry; that it deprives railroad owners of every human incentive to operate economically, or to put forth individual effort to attain success and reward,
 Carriers, Inconsistency.
 'It Is interesting to note that while the railroads claim that this sc-called rate making section of the transpor- ation act is not guarantee, and that if they make over per cent the gov ernment takes one-half of such eX- cess, the individual railroads have never paid the government one-half their excess earnings above per cent On the contrary, while oe- II. .anding that no change be made in the transportation act, the railroads are claiming in the United States su rreme court that the clause providing for recapture of excess earnings is unconstitutional and void; that they have a right to retain any and all amounts earned in excess of per cent. The inconsistency of the car riers in respect to the rate section Is obvious.
 Whf1a tho Cnlttharn na0nIA are traditionally opposed to government ownership, and now oppose efforts to reduce the valuation of railroads fixed by the government, 1t is never th eless true that the entire southern delegation in Congress, with minor exceptions opposed the rate-making section of the transportation act, and the added power given the federal commission in intrastate rate regula- tion. They will, doubtless, at the coming session of Congress. under take the repeal of these sections passed by a former Congress over their opposition.
 Oppose State Regulations.
 "The southern people would un- doubtedly be willing for the trans portation act to remain unchanged and given further trial, were it not for the fact that notwithstanding the unusual present prosperity of south crn railroads, the carriers are de- manding, before the southern state commissions and before the inter- state commerce commission, increases in practically all rates which they are now revising to conform to the long and short haul provision of the interstate commerce act and with the view of making state and interstate rates the same. Some of the rail roads operating in Alabama and in Georgia have announced that they in tend to appeal to the interstate com merce commission to set aside re- cent orders made by the Alabama and Georgia commissions, fixing rates on cotton in the two states. If they take this action as to cotton rates they
 will undoubtedly take the same in respect to all other rates fixed by
 these state commissions, which do not carry as great an increase as the railroads are petitioning for. The shippers in Alabama and Georgia will not stand for the enormous and
 wholesale increases In the intrastate rates which are being demanded by the railroads on cotton, fertilizer, lumber, iron and steel articles and all other basic commodities produced
 in these states. Some of the in creases demanded on these commodi-
 ties, in these states. range from 50
 to 100 per cent and if the carriers insist upon securing such enormous
 increases by appealing to the inter
 state commerce commission, under
 the provisions of the transportat$pn act in spite of their splendid finan-
 cial condition, then the southern
 shippers will doubtless demand a re-
 peal of that section of the trans
 portation act which gives the rail
 reads the right to take whole bodies
 of intrastate rates, fixed by the state
 commission, to the interstate com
 merce commission and have them set
 aside.
 Tc my own knowledge until the recent threat of some of the Geor-