The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-08-23
E. F. Flynn, Speaking at State
Bar Association, Says Lines
Are Making Progress
ARE ERIN
Blames Government Owner
ship During War for Many
of Lines Present Ills
Especial to The Tribune.)

are working harder than ever to i'm
prove this service that there should
be talk Of government ownership
said Edward F.. Flynn Of the legal
department of the Great Northern
Railway, formerly Of Devils Lake,
before the convention Of the North
Dakota Bar Association here today.
1.-THE railroads have practically re-
covered from the effects of war time
government operation and this de-
spite the fact that they are handicap
ped by restrictions and regulations
such as are imposed on no other uti-
lity," continued Mr.. Flynn in his
discussion of the railroad situation
and taxation. "Were it not for the
fact that the RAILROADS are giving
such efficient service and are add
ing to this service week by week, it
might be idle to argue that the false
propaganda being used against them
has been launched for political pur-
poses," said the speaker az contin-
ued in part as follows:
To-day We hear political agitators
refer to the fact that the railroads
are guaranteed certain income by
the government. Of course, you gen.
tlemen know that this is not SO; that
not only are the railroads not guar
anteed anything, but they are pre-
vented from earning for their own
CT to exceed ga per cent by the
transportation Act of 1920 known as
the Esch Cummins Law.
Talks About Water
al! this discussion and agitation
cgarding valuation Of the countrys
railroads came about because for
m1ny years it was said the railroads
were greatly olSrcapitalized and were
baa.nl their rates 10 pay dividends
IN this over capitalization,. or as they
called 1t water
The experiences Of other countries
which have government ownership
proFo that governments cannot oper-
ate railways is efficiently as can the
private owners, AS a proof Of this
it IL only necessary to refer to the
Tact that Canada's government owned
railways cost its patrons in taxes
during the past ten years nearly one
bin Oh dollars.
If he uiled States should take
over the country's transportation sys-
tim aad pay its reasonable value. it
would cost the government 10 billion
dollars which added to the already
heavy Indebtedness Of 20 billion dol
lars would burden the tax payers OF
this country for term of years i'm
possible to estimate. 1t would also
cost the people of the United States
an additional sum of 75O million dol
lars in taxes annually fot railway
betterments and improvements, and
the 304 millions paid in taxes ~ the
railroads in 1922 would have to be
paid by the people"
Taxation experts say that taxation
on the net income is the best criter-
ION for taxing going business it
was pointed out by the speaker, but
that net income as measure Of
value is condition on the operations
Of the bushes FIR purposes of pro-
fit
Purpose of Body
The speaker pointed out that the
purpose of the taxing body when
evylng taxes was to bring all kinds of
tangible and intangible
within the scope of the levy; ana that
The general property tax levied on
real property which included land
and the buildings thereon; and per-
sonal property whicn may include
such things as household furniture.
money, goods, bonds, etc.
He pointed out that there were
customs duties levied upon things
imported from foreign countries; ex-
Uses or internal revenue taxes levied
lpon domestic manufacturers; the
income tax levied upon the clear or
let annual income of a person.
The fact that there were private
corporation taxes, inheritance taxes.
md numerous other methods Of OBJ
aiming money was emphasized.
Conclusions
In concluding Mr.. Flynn said:
Whether our railroads are owned
privately or by the government they
re entitled to and must receive such
reight and passenger rates as will !
Fable, them:
"First-to give the public ample
nd satisfactory service at the low
st rate possible;
4 ss's-,eeond-to pay their EMPLOYEES
. q scale that insures rightful COM
ai1satlon for work done and proper
VIM conditions;
'Third--to assure to their owners.
no are largely sen and women of
z conditions, Reasonable return
the money they have intrusted to
ieinss
The american public should be in
'rested not only in these things.
Y should also be interested in the
sxss pays. +
sthe present time there are 40
admissions Oh other railroad reru-
ting bodies, state and Federal. in
e.stlaited States deriving their now
= over five thousand separ-
{ laws.
!. BIZ railroads contend that II thew
e not further restricted or rerulat-
:ssSltd if they are allowed 70 pper-
without the repeal Or amendment