The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-10
ASSERTS RAIL
ACT BENEFITS
ALLSHIPPERS
Northern Pacific Representa-.
tive Speaks to Employees
Here on Subject
HOW THE ACT WORKS

Adequate railroad service for the
people of the United States is the
object of the Transportation Act.
This is the main provision of the
measure and all other provisions are
merely auxiliary to it, The Act also
Limits railroad earnings and pres
erlbes doctrine Of efficiency and
economy of railroad management"
NJ. NJ Goodsil, assistant to the
wee president of the Northern Pa
ciflc railway, summarized the Act
thus in an address to Northern Pa
clflc employees here last night, at a
Injecting of the n. d. Booster Club.
1T will be. remembered that the
railroads were turned back to their
owners in 1920, after most disas-
trous experience with government
operation, he continued. This ex-
perience had continued during Il
period of twenty-siX months at an
paverage monthly loss to the taxpay-
ers of $45,000,000, not to mention
Xthe fact that there was widespread
Ncomplaint of unsatis factory service.
Confronted by this situation Con-
gress set about the passage of a
law under which the roads might be
privately operated and the present
Transportation Act was the result of
its deliberations.
Principles Held Sound
J. Under this law the roads have
been operated for something over
three years, long enough to demon
strate that the principles upon which
the law is based are economically
sound and that, if congressional
! tinkering with it can be prevented,
[ the roads will be able to rehabilitate
themselves to such an extent as to
promptly meet every demand of our
constantly eXpanding commerce.
In view of these facts i ask whe
Their or not it would be the part Of
wisdom to destroy the good already
demands of those who are always
Iwantng to change horses in the
Vmdde Of the stream.
1T would BE splendid thing if
the people generally could be in
duced to study the Transportation
Acts without prejudice, until they
colp to understand it. 1t is an en-
tirely new thing in railroad legisla-
ton. provides for departure from
old methods in rate making, and APP
plies such sane principles ITO the
solution Of one of the greatest and
most complex problems with which
the nation is confronted that it
should be protected from those who
t1vould destroy it for purely factous
reasons.
Previous Efforts
During all our previous efforts at
railroad regulation the plan was to
reduce rates to the very lowest fig
ure possible without absolute confis-
citbn. The new act declared that
the roads were, entitled to Il rea-
sonable return on the value Of their
property and instructed the Inter
state Commerce Commission to fix
rates under which the roads might
earn such a return. The commission
estimated 5M percent as a reasonable
return and began fixing rates with
hthat in mind. The roads hoe never
learned that return, but they are do
ing better each year, and, no doubt,
will earn it in time. When they do
earn it the rates they now charge
will have to be reduced, for the law
does not contemplate that they shall
earn more, although should any one
of them earn in excess Of 6 per cent
provision is made for the recapture
/ by the government of so per cent
of the surplus, the other so per cent
going into a special fund for i'm
provement purposes.
THE second new principle in this
Act is that embodied in Section 15A.
which instructs the commission in
making rates to give due consider
alton to the transportation needs of
the nation. now and in the years to
come. In view of the fact that the
railroads had not been able to meet
the demands uopn them for some
years some such provision as this
seemed necessary. Under it the ere
dit of the carriers has been revived
to such an extent as to enable them
to obtain new money, more than a
billion dollars of it last year, to ex-
pend on capital account for improve
ments and betterments and to in
crease their carrying capacity.
mo previous railroad legislation
contained anything like so important
provision as this. Congress seems
to have previously given thought
only to restrictive regulation. 1t has
been conservatively estimated that
from S750,C00,O0O to $1,000,000,O00
must be expended on capital account
each year during the next decade by
the carriers if they are to continue
their present efficiency and meet the
ever-increasing demands upon their
capacity. | should like to have some
radical member of Congress tell me
how they are to obtain this money
lnloss they are able to give rea-
'sonablc assurance that fair return
will be paid thereon.
Returns Are Paid
And l want you to know that
these returns are paid, not to Wall
street, as SO many seem to imagine
but to hundreds of thousands of in
dividual investors scattered through
out the length and breadth of the
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