The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-02-01
RAILROADS Want
TO BE LET ALONE
SANTA FE PRESIDENT SAYS TAR
IFF, HIGH LABOR, TROUBLE
CAUSE-RAPS EVERYBODY.

Kansas City, Mo.-(A. P.)-Give the
railroads credit, let them earn a fair
return on their investment and then
let them alone, are the three cardinal
points emphasized by William B.
Storey, president of the Atchison, To-
peka, and Santa Fe railroad, in tell
Ing the Kansas City chamber Of COM
merce members here how to over
come the ills that are interfering with
the prosperity of the country.
Mr.. Storey blamed high labor costs
as being responsible for the present
condition Of the farmer and attri-
buted high labor costs to the re-
strictive immigration laws and high
tariff wall.
"The railroads are not healthy.
They have too many doctors and too
much medicine" said Mr. Storey.
"First came the United States govern
ment with the interstate commerce
commission. Then came the state
commissions, and gradually the med1-
cine applied became stronger and
stronger. Finally when the war
came the railroads were unable to
function properly. Instead of chang
ing the medicine, the government
seized the roads.
Government control raised costs,
decreased the efficiency, and nearly
ruined the roads. But it convinced
the people that they wanted no gov
ernment ownership and it led to the
enactment of the EschCummins bill,
the Transportation Act 1920. This
law was the first really constructive
vnaaaura attempted
" 1t recognized, first, that credit IS
absolutely necessary to the roads.
This credit had been gradually under
mined during the long period OF doc
toring when the enormous business
and need for good transportation
manifested itself, the railroads had
not enough equipment. They were
short of everything that goes to make
ND q complete railroad.
81 The only cure is credit. Establish
the ability of the roads to pay interest
on the money invested and the money
necessary will flow toward the roads.
The transportation act attempted TO
meet this situation and this was at
tempted by the. commission when 1t
made the rate increase in 1920, but
their figures were based on certain
volume Of business. Unfortunately,
the slump of 1921 came on, the vol
ume was not there, and the roads
earned that year net of 81 per cent
an their valuation But the business
OF the country had started on the up
grade when the interstate commerce
commission, acting under poltlcal
Dressure, made horizontal reduction
Of 10 per cent. The result has been
that in 1922 the railroads have been
unable to earn over Az per cent.
This reduction checked railroad buy
ing. it retarded railroad spending.
ave feel, however, that if. the pro-
spects for 1928 are fulfill>1, we stand
q chance of earning "a fair return
Rut we are certain that if the many
nostrums that are now proposed are
administered we shall be in worse
condition at the end of the year.
"To show you what those cure alIs
consist of, | might cite the bill by
Mr.. Gooding of Idaho, to reduce all
freight rates on agricultural products
33 per cent; Senator Johnson's bill to
prevent dividends until the necessary
cars are provided; Senator Brook
hart's opinion that seven or eight bill
lion dollars should be squeezed from
the valuation of the railroads; the
American Farm Bureau demand that
all guarantees be taken out of the
act there are in reality no guaran-
tees).
"The farmer is demanding lower
freight rates and Senator Capper is
backing him up In this demand. Sen
ator Capper has made statements on
the floor of the United States senate
which he cannot substantiate.
"None of these things will help
restore the credit of the railroads.
"The president of the United
states advocates making the question
of wages function of the interstate
commerce commission. Gentlemen,
the interstate commerce commission
has more than it can attend to now.
Don't give it any more.
OF first Importance, however, is
the necessity for credit. If we can
get money, we can supply you with
the right kind of transportation and
without it we cannot. Rates cannot
be raised or business will be checked.
Certainly reducing the rates will not
help. The farmer is having hard
time; he should have help, but bank
rupting the railroads will not help
him, and reduced rates means just
now bankruptcy for the roads.
If you can get lower labor costs,
you can reduce the price of steel, of
lumber, of cement, or cars, of locomo
tives, of coal, and of everything that
enters into the operation of either the
farmer or the railroad. And, as long
as we have the restrive immigration
law in effect and high tariff wall
about us, just SO long must labor
costs stay up If the country wants
these things it must be content to do
business on the high price plan on
which we are now doing it. But the
farmer should be taught this and he
should decide what he wants High
labor costs are responsible for the
present condition of the farmer, and
not the railroads.
What we want seems simple We
want to be let alone. We want to
have the transportation act of 1920
o{uoy q ohanoo. wo fhjyl1x II will morlx |