The Winslow mail., 1926-07-02

not use Pullman sleepers or par
lor cars.
This argument would not be
without force of it were fo@nded
on a fact. It is evident that the
roads must receive adequate COM
pensation for their services, what
ever may be the burden on the
public. But the fact that the roads
are generally in a very prosperous
condition, and that their position
is being steadily strengthened.
That is particularly true of the
western roads, as was shown by
Mr. J :. E. Benton at the recent in
terState commerce commission
hearing of the application of those
roads for a five per cent increase
of freight rates.
The Transportation Act limited
or it was supposed to attempt to
limit, the earnings of the roads to
six per cent, and in some cases to
five and half per cent, of their
valuation as fixed by the commits
sion. There was a provision in
the "recapture" clause of what is
known as section 15a of the act
under which any amount in ex-
cess of those limited earnings would
be turned back to the government
to be used in aid of weaker roads
within the group, and which were
so situated as to be unable to reach
tho limit of oarnipOc
Mr.. Benton disclosed that the
earnings of practically all of the
western roads, as well as nearly
all of the stronger roads through
out the country, were in excess of
the limit fixed by the Transporta-
tion Act Yet it is stated that un-
der the operation of section 15a
the recapture clause had been
evaded, so that no part of the ex-
cess earnings has ever been turned
back to the government
The valuation on which the al
lowed earnings are based is, as we
have said, fixed by the commission
This valuation is said to exceed by
more than five billions of dollars
the market value of all the rail
way securities in the country. The
valuation so fixed is the amount
that would be required to replace
the road, however bad or indiffer-
ent it may be, with a good road.
1t is applicable to any two streaks
of rust over which railway trains
may be operating, as we'll as to the
well-equipped roads of our own
region. Excess earnings of the
stronger roads may be set aside for
the rehabilitation of such roads.
The Pullman surcharge amounts
to half as much as the Pullman
company's charge. This revenue to
the western railroads amounts to
SIS, 100000 annually. 1t may be
added, though, that bears no par
ticular relevancy to the subject in
hand, that the five per cent increase
in freight rates for which these
roads have applied would amount
annually to the neighborhood of
100000.
The Pullman rate, standing alone
has always been regarded as an
exorbitant tax upon the travelling
public, quite out of line with the
value of the service rendered and
for which no satisfactory pretext
has ever been advanced But it
has always withstood any attempt
on the part of complainants to Sc
cure modification of it. The sur
charge was accepted by the public
because the government imposed it
and it was generally regarded as
a patriotic contribution to the ma
tiOn at war.
The traffic bureau of the Phoenix
Chamber of Commerce, despite the
declaration of the railroads, that
the alternative of the surcharge
must be an increase of freight
rates, has taken a strong stand in
favor of the Robinson bill and has
urged Arizona's senator's and our
in congress to aid
in the passage of it.
1t is not expected, of course, that
final action on it will be taken in
he present session of congress, or
hat it will even reach cOnsidera-
ion on the floor of the senate, but |
We trust that at as early a date as |
possible congress will remove this |
ak which we believe to be no long |
,r cusable.-Phoenix Republican. :