The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-12-16

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in operation), of fuel, material and
supplies declined sharply during the
depression years and never has re-
turned to anything like normal.
Railway purchases in 1929 and 1880
amounted to 81 ,184 OFT 900 in each of
the two years. In the five years
from 1881 to 1885, the average per
year was about $559, 100000. In 1886,
the expenditures in this direction
were up to 1903, 421 900. Figures
for 1887 are incomplete but there
has been another decline because of
necessary curtailment of buying)"
DR.. Parmelee turned to the ques-
ton of railroad receipts for their
services. He told the commission
that the depression years had left
the railroads without any reserves.
For seven years, he said, the rail-
roads have been barely getting by,
and pointed out that at no time be-
tween 1881 and 1887 had they earned
more than 2.57 per cent on their
investment as it is appraised by the
commission. In three of those sew
en- years, the records show, the
railroads receipts did not amount to
as much as their fixed charges,
term which includes interest on
their debts, taxes and required
amounts for paying off parts of their
debts. In other words, all they
earned in those years was just
enough to pay the people who work
for them and buy the necessary fuel
and operating supplies.
The argument to the commission
is predicated, therefore, upon rising
-. costs, general ex-
NiSing penses, and the
Costs dozen or so rail-
way presidents
who testified before the commission
stressed the fact that these expenses
are out of control by the railroad
authorities. DR.. Parmelee figured
that these higher costs of fuel, sup
plies, wages and taxes had laid a
burden on the railroads that is
greater this year by 1854, 789, 900
than it was in 1888. The companies
hope to get 1857 ,287, 900 of this sum
from the Is per cent increase in
freight rates, and the railroads of
the East are asking that passenger
fares be increased from 2 cents to
212 cents a mile, which they think
will bring in an additional SAT, $780,
900. From this it is seen that the
carriers still will fall short of the
full amount needed, but their ar
gument, as I understand it, pro-
ceeds on the theory that they should
not seek more of an increase than
is sufficient to keep them from 60
ing broke. If the new depression
conditions subside, there will be a
larger volume of freight next year.
That will enable them to make a
profit. That is, a greater volume of
business with the new rates will
provide a profit unless there are
new government taxes and other
burdens laid upon them. In this
connection, I looked up the effect
of the social security and carriers
taxing act. Commission records
show the rail lines are paying SILL.
600, 900 in taxes annually under
these two levies alone, a burden the
companies did not have two or three
years ago.
So it is evident that the rail lines
are in a bad fix. They are con-
fronted on the one hand with mount
ing costs of operation and on the
other by declining receipts from
the smaller volume of business. At
the same time, it seems to me, the
country has more than a passing
interest in their plight. This is so
because during the last two months,
for example, close to 10000 railroad
employees have been laid off-out of
work, in the rail industry alone.
With the decline of purchasing of
supplies by the rail lines, other in
dustry has suffered, has laid off
men.
Looking at the thing another way,
one might call attention to federal
appropriations for relief which have
been in excess of three billions a
year during the last several years.
The figures given above show that
the railway purchases-just one in
dustry-have fallen off more than
500 millions, or about one-Sixth of
the relief appropriations. If the APP
preparations to aid all unemployed
are only six times as large as the
drop in railway expenditures, it is
easy to see what an influence is
welded and why have taken the
position that it is necessary to con-
slider the railways petition from the
standpoint of the country as a
whole. We, as citizens, have a bur-
den to carry whether it is done
through the railways or through
some other avenue. None of those
rail workers wants to be without
job, I am sure.
It appears to me to be fortunate
that the railways can present their
problem to qua
ruftie si-judicial agency
Congress like the interstate
commerce COM
mission rather than to have to de-
pend upon congress for action. By
this time it ought to be demon
strated clearly that congress is
moving about in circles and accom-
plishing nothing. The senate is
largely leaderless among both Dem
ocrats and Republicans, while the
house is split into score of fac
tons that BODIES i'll.
Frankly, it appears that the house
| is unwilling to take a bold stand on
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