The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-09-23
RAISE $500
FOREACH !.
FAMILY
Progressives Give Figures TO
Back Up charges-Jokers
Barred IN Act

The Esch- Cummins railroad law,
which Is denounced by the Pro-
gressives as "a legislative crime"
and "the railroads postwar char
ter of privilege" increases the cost
Of living Of the American people
$4,000, 100000 a year, or $225 for
each Of the 100000 families in
the United States, according to the
La Toilette Wheeler Campaign
Handbook.
"Under the terms Of this law,
freight rates were raised, accord
ing to the Interstate Commerce
Commission estimates, $500, O0O,-
600 a year." the Handbook de-
clares. "This means a burden Of
SIS a year in freight rates alone
on each Of the 100000 American
families; but former Director Gen.
eral Of Railroads Walker D. Hines,
who was formerly chairman Of the
board Of directors Of the Santa Fe
railroad, is authority for the state
ment that every increase in freight
rates is multiplied at least three
times by wholesalers, middlemen
and retailers before it reaches the
consumer. This means that the di-
rect increase in the cost Of living
Of the American people attrib-
utable to the Esch-Cummins law is
$4,60O,O 100000 a year, or 1926 for
each American family" the hand
book states.
Pledged for Repeal. -
"In the four years the law has
been in effect 1t has cost each
American family $500 directly in
higher freight rates and 5000 in
increased cost of living"
The Progressives are pledged to
the repeal of the Esch-C ummins
law, every important provision of
which was drafted, either by the
railroads or by the United states
Chamber of Commerce" The cam.
paign for the passage Of the act
) cost the railroads 5000. 900 for
publicity, the PrOgressives state
one single assessment Of 81 ,6OO,OaO
having been levied by the AssOcia-
ton Of Railway Executives.
The law guaranteed to the rail-
roads for the first six months under
private operation the same rate OF
net income which had been paid
under Federal control. This guar.
0ntee, which Senator Cummins
wrote into the act" the handbook
says, was the same which he had
denounced in 1918 as at least
5000 200, 900 too much. declaring that
It shocked the moral sense o.
mankind
McAdOo's Testimony Quoted.
"Under cover Of this guarantees
the railroads entered upon an orgy
of waste, corruption, and graft,
the handbook charges. William G,
McAdoo testified before the Senate
Committee that the railroads wasted
$402. 758, 900 during the six months
guarantee period on maintenance 0i
way and equipment.
and enrich insiders the railroads
ordered locomotives and cars re
paired. in outside shops in which
their directors were interested al
from three to 81 times the legiti
mate cost. The Interstate Com
merce Commission found that thu
Pennsylvania alone made unjuSti
fled expenditures Of $3,OOO,O0O fol
locomotive repairs. Contracts were
given to the Baldwin Locomotive
Company for $4,000 for repair jobs
that the railroad shops regularly
performed for $4,000, are among
some Of the charges made.
Pointing out that the law Is full
Of "jokers" in the interest of the
railroads, the handbook states:
JOkers in the Law.
''The rate of 5.S4 per cent fixed
upon an excessive aggregate value
Is in itself deceptive. The Inter
state Commerce Commission permits
the deduction of Federal income
taxes before this rate is computed
so that the actual rate is 6.57 pc,
cent. But this Is only a part Of thu
deception.
THE 6.67 per cent applies to al
the property Of the carrier; but more
than half Of the property Of thu
railroads is represented by bonds
which pay on the average only AS;
per cent interest.
This means that the 2.19 per cen
saved on the bonds is applied to tn,
stocks, making the rate on tn,
stock S.76 per cent. AS a matter
Of fact many of the railroads ar,
earning far more than this.
Railroad propagandists will at
tempt to make the people believ,
that under the Esch- Cummins Law
the profits Of the railroads are lin
Tied to per cent and that all abov,
d this amount has to he divided witt