Salt Lake Telegram | 1928-01-01 | Page 13 | Great Problems Discussed by Authorities

v I Gre Great t Problems Discusser by Authorities I 4 THE PORK BARREL AND TH THE THE RAILROADS By FRED W. W SARGENT President Chicago Northwestern Northwester ri Railway Company Demands Demand fo for tM radical llo i threaten the tha transportation act t of ot b before rore It Juts has be been n given a a. tho rough tue-rough rough h tria Wa I. I Mr Sargent nt In this article views these thes Ware re d demands ands s a-s I unsound fund explains these th the e n need ed for the he railroads to earn a surplus during good years to tide them ove over periods o ot depression Over a century ago the first e to give tile give the federal government power pow er to regulate comm commerce was made i That power is now well established L. L Jt it is to be wisely exercised exercise exercised I remains to be seen Tho The problem problems S Sare are numerous and we have alwa always alway 5 with us the left eft wing that think thinks S SIn in terms of Immediate political galland gall gaIn I and seems unable or willing to se so seany see 0 any great good that might corn come e through a national stable policy c cf f friendly lather rather than hostile railway V regulation Up to 1920 most of the national I and state legislation had been of i a a. restrictive and repressive character The transportation act of that yea year r manifested a a. desire on the part pait o of I tire the national government for a constructive constructive con con- policy th that t would give t to 0 the government a a. national transportation trans system so 80 essential 1 if w ware we weare e eare are to go forward under a a. polk y of permanent progress REVIVES METHOD l Demands remands are being made in som some e quarters for the appointment of in commerce commissioner commissioners S by regions with the purpose o 0 of 01 1 making railroad rates the subject ct o of 1 political barter This is nothing buan bu but butan t tan an atte attempt pt at the revival of th the e pork barrel method met of tion with the owners of the property i left ultimately with the empty empt y barrel L The railroads have has already been bee n legalized out of tire tire- Panama cana canal 1 and off the Great Lakes Through i taxation the railroads helped build buth S the canal which they are now now nos r prohibited to use They are also aisi prohibited from competing for th the a business that th the canal takes awa away from the them It Jt Is to bo be 1 0 hoped that tha at some time the American people 0 will realize the injustice justice of suds such a a policy and take steps to correct iti it i The Present Policy upheld by b v the influence of ot certain regions region S which insist that if the railroads railroad S compete for the c canal n l business the they should be expected to make water wate rates to the territory before before- bein being permitted to participate in the tonnage tonnage ton- ton f nage is ai talen ak n from them by b the canal M dIffIcult to un understand U UNFAIR fArR TO INVESTORS Already we hear demands for for- modification and repeal of at the transportation act which if suc sue would open the way for rate fixing authorities to establish rates lates on on a basis that would not produce pro pro- pro produce duce a a- fair fall return for the Individuals and institutions institutions' whose investments invest invest- ments have made the railroads sIble possible pos- pos It is essential that railroads be c permitted to earn ern something 8 more than terest erest barely bare enough n gh to pay pa t the e interest Interest In- In on their bonds and a fair re return re- re turn to their their- st stockholders ProvIded provid- provid ed o ot course th that tt t able rates eUrSe just and reas reasonable reason reason- n- n measured by what the traffic can canwell well bear will wUl produce allowed such a 7 result in the good Railroads must be a a. surplus S that hat years to earn periods will WJ tIde them over oVeT Ve of ot depression They TIrey should earn a yearly early ea ly surplus eur sufficient to take ake care of f res expenditures lie lic character of a public pub- pub selves add which In ln and of of- themselves them them- themselves nothIng to earning Capacity ca- ca To Insist On a a. policy that reduce ruce rates as rapidly carrIers as the improve their fInancIal conditIons is to head toward state a ot of Inefficiency lne oPpOsed to tile the Interest of public welfare Copyright 1927 00 sm os' os per Syn Inc