Evening star., 1923-06-03
FIGHT OVER RAILWAYS
In CONGRESS LIKELY
Operation of Roads and Transportation
Seen as Matters Most Considered
by the People.

freight rates. passenger rates. etc
dividends to the railroads on approx
mately $4,000, 100000 of unearned in
crement-on $4,000, ,00O,0 900 that had
never been invested in the properties.
This. it is said. means an increase of
at least $500. 100000 a year in freight
and passenger rates; it means that
no matter what fiuctuation there may
hereafter be in the cost of reproduc-
ing railroads. they will be entitled to
demand returns on a basis of the val
uation while prices are at their pres
ent high level.
The attack made by the progress
sives upon the Interstate Commerce
commission, which has been regarded
for years as a judicial tribunal. is
one of the most severe that has ever
been made.
Argument of Railroads.
The railroads on the other hand are
seeking to justify the operation re-
suits under private management dur
ing the last three years, and insist
that they are not now getting fair
return on their property. They point
out that when the railroads were re-
turned in 1920 to private operation
there were long-standing unsettled
demands for numerous wage in
creases; that railroad revenues were
admittedly insufficient to meet op-
Grating expenses and pay to the rail-
roads the standard return which had
been agreed upon by Congress; that
the so-called national agreements on
rules and regulations affecting ,rail-
way employees were still in effect. All
of these conditions, they say. had to
be met and overcome. In 1921 the
country went through tremendous
period of business depression, they
point out, and the railroads suffered.
too. Wages, they say, were first
raised in 1920, and then freight rates,
and then in the following year were
ticularly to the reductions made in
freight rates since it appears to be
the demand by shippers for lessened
freight rates that is causing much
of the uproar against the roads just
now. The total effect of freight rate
reductions since August, 1920, when
the rates We're advanced by the COM
mission, 1t is estimated by the roads,
has been to reduce revenues to class
one railroads from the level then es-
tablished by at least $500, 100000 a
year.
Cite Labor Disturbances.
The roads are pointing also to the
1oh 1{ctt1 40 q
shopmen's strike of last year, as
hindrances to their progress in the
three-year period since the return of
the roads to private operation.
The Interstate Commerce Commits
sion in it's rate decision of July 20.
1920. effective August 26 of that year,
concluded that the roads should re-
ceive as a fair return net operating
income of 6 per cent on a tentative
valuation for rate making purposes
of S1S,900, ,000,0 900. A later decision
set the rate at 534 per cent on an
adjusted tentative valuation. During
the three years ending with 1922 the
roads, it is estimated, received a total
of $4,000, ,ooO,0 900 less than the statu-
tory return. The net operating in
placed at S17,226,9O2. during 1921 at
$600,SSS,351 and during 1922 at
$3.50, ,946,0O0.
Complaints are Likely.
That is the other side of the ques-
ton. But there is no doubt but what
Congress will hear great many COM
plants against freight rates, and
many demands that something be
done to lower them.
At the time of the shopmen's strike
and the coal strike last year, there
was an insistent clamor that some
thing be done to protect the public
against the suffering brought about
by these industrial disturbances. That
is another phase of the railroad ques-
tion which will be considered. it is
understood, next winter. Efforts will
be made to strengthen the law so as
to compel the railroads and men both
to pay attention to the the decisions
of the railroad labor board.