Railroads

The sponsors for the Esch-Cummins transportation act of 1920, at the time of its presentation to congress, stated that it had for its purposes the reduction of the cost of transportation, the improvement of service, the bettering of labor conditions, the promotion of peaceful co-operation between employer and employe, and at the same time the assurance of a fair and just return to the railroads upon their investment.

We are in accord with these announced purposes, but contend that the act has failed to accomplish them. It has failed to reduce the cost of transportation. The promised improvement in service has not been realized. The labor provisions of the act have proven unsatisfactory in settling differences between employer and employes. The so-called recapture clause has worked out to the advantage of the strong and has been of no benefit to the weak. The pronouncement in the act for the development of both rail and water transportation has proved futile. Water transportation upon our inland waterways has not been encouraged, the limitation of our coastwise trade is threatened by the administration of the act. It has unnecessarily interfered with the power of the states to regulate purely intrastate transportation. It must therefore be so rewritten that the high purpose which the public welfare demands may be accomplished.

Railroad freight rates should be so readjusted as to give the bulky basic, low-priced raw commodities, such as agricultural products, coal and ores the lowest rates, placing the higher rates upon more valuable and less bulky manufactured products.