The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-07-12
RATE
GUT SEEMS
CERTAIN
Eastern Roads Making Money,
But West Not So Pros
porous, Records Show.
By WILLIAM HARD.

Now the poor railroads are in hot
water again through getting too eff
ficient. Several members of the In
terstate Commerce Commission are
bending their minds to the reducing
| of freight rates. It can be conf
IDENTIFY and authoritatively stated
that freight rate reduction is now on
the administrative carpet, and that
reduction will happen unless the rail-
roads stop making so much money.
In 1920, when the railroad man
ayers made less than one.tenth of
l per cent on the valuation Of their
| roads, they were in hot water be-
cause they were charged with gross
Incompetence and incapacity. Now
when in May Of this year they made
money at the rate of $50 per cent
| on their valuation, they are in hot
water again because Washington
| now sees an indirect chance to do
| something for the honest North
western farmer who has to have
lower rates on his commodities If he
is going to be kept out of the poor
house and the Farmer-Labor party.
Roads Making Money.
regulators is wrinkling it's brow to
figure out just how this indirect
chance can be utilized. The indi-
rectness of it lies in the sad fact that
gone and made most money where
there is the least demand for lower
freight rates, and seem correspond
ingly to have gone and made least
money where there is the most de-
mand an dthe most need for lower
rates.
1t is noted that in the Eastern
Region in this year to May 81 the
railroads have been earning at the
annual rate of 6.6 per cent on val
uation and that in the Southern
Region" they have been earning at
the rate of 81 per cent, while in
the western Region" where the
! rural radicals and the Farmer-La-
borites are doing their highest rag.
ing, the railroads have been earning
only at the rate Of AZ per cent
This sadness becomes still more
profound when the Western Re
gion" Is analysed out into it's several
parts and when the northwestern"
part is considered by itself
In the northwestern" part the
condition OF the farmer is worst
and his political radicalism is also
worst. Therefore. Washington
would like to rescue him in par
ticular and at the earliest possible
| moment.
Western Roads Earn Less.
The railroads, however, in the
northwestern part Of the West
! ern Region" seem to be making
| less money than the railroads in
any other part Of it, In fact, on
their investment. they have been
| making during this year a return
of less than 2 per cent.
A similar tragedy is observed in
the case of the railroads of New
| england. They are within the
| Eastern Region" The Eastern
we'll with it's rate Of 66 per cent on
valuation but the New England
| roads, on their investment, have
been earning this year to Nav 81 at
the rate of less than per cent.
New England supremely needs
| lower freight rates on manufactured
goods in order to bring the factories
| of its corner of the country into
cheap touch with our main markets
The Northwest supremeIy needs
lower freight rates on agricultural
goods In order to bring the farms
| of its remote stretches into chean
territory.
These are two most deserving
parts OF the country from the stand
point or the benlgnant rate reducer
| and yet they are precisely the two
parts of the country where the rail
! roads seem least able to endure re.
| auctions.
This situation gives ammunition
to the people who would like tn
see all the railroads of the country
! put INTO one vast consolidated uni
fled system. They say:
We today could reduce rates in
New England and in the northwest
If the loss could be spread over the
railroads now making more than
the standard return in the central
east and in the south"
Reduction Is Problem.
1t is believed here that the prob.
lem of reducing rates in such a
way as to help the most crippled
| districts without still further Grin
| ping the most crippled railroads
| viii require all the mental energy
| OF all the eleven members of the
| Interstate Commerce Commission.
| They already are In the habit of
toiling far into the night and It is
feared they will have to toll till
| breakfast before they get this
! puzzle worked out.
| The general anticipation is that
r present earnings continue 20
he taken in by the railroads as
| whole there will presently be reduc-
tlons of freight rates in certain
central territories in the hope that
! tratflc in general may thus be stirnu-
lated and that the benefits of this
stimulation will spread finally 10 all
territories, including New England
and the Northwest.
! Copyright, 1923 Washington Press
Service