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to demand the same benefits from them as from the bigger roads. I think you can appreciate it, Congressmen, that about the only financial assistance that can be extended to the short lines is through the division of tariffs guided by some such rule as I have suggested. It is out of the question to put the level of rates so high in any one district so as to ve a fair return to the weak short lines because, if it was done, it would give an unwarranted return to the larger and more fortunately situated roads; hence my amendment for the division of tariffs for this remedy.
On page 13, line 13, Senate bill 2906, known as the Cummins bill, it will be necessary to strike out the words "other short line or lines” for the reason that I am afraid that if the phraseology is as stated that it will prevent the short lines from being consolidated with the trunk lines. It may not be the intention of this bill to exclude these short lines but if it is not made clear and so stated in the Congressional legislation that it is the intention to include these short lines, these same short lines will be left to shift for themselves; which means, of course, that with labor demanding its maximum benefit under this bill regardless of the length of the railroad and with the many handicaps that these short lines have to operate under, they will fast fall into financial difficulties and go into the hands of a receiver.
I point out the above thoughts and ideas to you because they are true as to conditions surrounding the short lines. In the past the trunk lines have made the life of the short lines hard at best, and we persons now interested financially in the short lines look to you Congressmen to see that this injustice is corrected.
In closing I wish to commend you and your committee on your bill as a whole, and with the one modification I speak of it will meet in general the needs of the short lines of the country.
At the present time there are many short lines located in your State owned by several thousand stockholders, all of whom are looking to you to see that their interests and these short lines are protected I hope that I have been able to convince you of our desperate situation with reference to these short lines. I do not care to burden you with thousands of letters from these people, because I realize that your time is very valuable and is taken up with your many duties.
Kindly again give this matter your consideration. I sincerely hope that you will grant relief as I ask for.
I hope that in case the short-line people wish to appear before your committee that you will be kind enough to grant their request. Yours, very truly,
E. D. Lrce
LETTERS SUBMITTED BY THE BOOSTERS' CLUB CO., OF
CLEVELAND, Ohio, August 21, 1919. Mr. John J. Esch, Chairman Committee on Interstate and Foreign ('ommerre,
House of Representatives, Washington, 1.1. DEAR Sir: Following our letter to you, dated August 12, regarding testimony of Warren S. Stone, grand chief of Brotherhood of Love motive Engineers, before your committee, that from 10 to 25 carloads of fruits and vegetables were dumped daily in Cleveland for the purpose of maintaining prices, we attach hereto copy of our letter to Mr. Stone dated August 12 and copy of his answer to us showing the source of his information from which he gave his testimony as quoted.
We are certifying under oath to this copy of Mr. Stone's letter; and if possible, we should like to have our letter to you dated August 12, our letter to Mr. Stone same date, and Mr. Stone's reply, all as shown in the certified copies hereto attached, admitted as testimony in denial of Mr. Stone's charges. Thanking you for your attention to this matter, we are, Yours, truly,
THE BOOSTERS' CLUB Co.,
(The letters referred to by Mr. Smith are as follows:)
CLEVELAND, OHIO, August 12, 1919. CHAIRMAN OF THE HOUSE COMMITTEE ON INTERSTATE COMMERCE,
House of Representatives, Washington, D. C. DEAR SIR: We have been advised that Mr. Warren S. Stone, grand chief of the Brotherhood of Locomotive Engineers, in testifying recently before your committee, stated that there were from 10 to 25 carloads of fruits and vegetables dumped daily in Cleveland, Ohio, solely for the purpose of maintaining prices.
If Mr. Stone was quoted correctly, we wish to go on record as denying his statement and inviting him or anyone else to investigate conditions as they really exist in the Cleveland produce market and not as they are stated to exist in the Cleveland papers.
The Boosters Club Co. is the produce association of Cleveland, and as such we can assure your honorable body of the fullest cooperation in an honest investigation, and the books of our members will willingly be shown to any proper investigator without legal proceedings being necessary.
Realizing from our own experience the inaccuracy of the newspapers, we do not want to do Mr. Stone an injustice, and, if consistent with the rules of your committee, we would like to have you send us a copy of Mr. Stone's testimony as given before your committee recently in which the above-mentioned quotation did or may have occurred. Thanking you in advance for your consideration of this letter, we are, Yours, truly,
THE BOOSTERS CLUB Co.,
Manager. STATE OF Ohio, County of Cuyahoga, ss :
Before me, a notary public in and for said county, came George B. Smith, who, being sworn according to law, deposes and says that he is the manager of the Boosters Club Co. That the above is a true copy of the original letter as shown, the copy of the original being on file with the Boosters Club Co.
GEO. B. SMITH. Sworn to and subscribed before me this 22d day of August, 1919. (SEAL.)
F. C. PROBECK, Notary Public as aforesaid.
CLEVELAND, OHIO, August 12, 1919. Mr. WARREN S. STONE, Grand Chief Brotherhood of Locomotive Engineers,
Cleveland, Ohio. DEAR SIR: We have just been advised that you testified before the House Committee on Interstate Commerce at Washington recently that from 10 to 25 carloads of fruits and vegetables were dumped at Cleveland every day simply in order to keep up prices.
of formulation but not officially presented, will, in the instance of the four brotherhoods, amount to approximately $300,000,000 per annum, and that the requests of other units of railroad workers who have already asked increases, and those who are preparing to do so, will amount to an additional $500,000,000 per annum, or a total of $800,000,000 per annum-a startling amount in the face of existing deficits of railroad operating income.
During the periods named rates have averaged as follows:
Revenue per ton per mile (mills): 1916, 7.07; 1917, 7.15; (increase, 1 per cent) ; 1918, 9 (increase, 26 per cent).
These rates compared with those which obtain elsewhere, show that our people enjoy a much lower charge for freight than any other country in the world, and the statenent that our rates for transportation are extortionate is not justified.
The figures for 1918 given above also reflect the increase of passenger and freight rates made under Government operation to meet the increased payrolls, and the Director General of Railroads has recently stated that these increased rates are not sufficient to meet the existing railroad pay rolls, and that a further increase of approximately 10 per cent will be needed to offset the continued deficits of operation.
We respectfully suggest that the above figures refute the statement of the brotherhoods that they are suffering from inadequate wages. Our investigations show that railway wages have increased faster than the cost of living, which is contrary to the statements made by the brotherhoods. The cost of living from 1914 to March, 1919, has increased 61 per cent, whereas all railway wages have increased 92 per cent. We respectfully invite your attention to an accompanying diagram which graphically shows the trend of rail. way wages, rates, and the cost of living.
(5) Mention is made of “The railroad profiteers * * * of Wall Street." This is a generality that hardly needs refutation, but is, however, deserving of criticism.
In 1916 there were 30,706 miles of railroads in the hands of receivers, showing to what low ebb railroad credit had sunk, and the consequent finan. cial condition of the alleged "profiteers.” Statistics show that the great bulk of railroad securities is not held in “Wall Street," as the term is commonly used. On the contrary, there are no securities of our commonwealth more broadly held by our people than our railroad securities, excepting war issues of Government bonds. There are, approximately, 700,000 stockholders of our railroads whose holdings average about $13,000 par per stockholder. From the records obtainable in respect to the distribution of railroad bonds, we find that the savings banks of our country own about $1,214,000,000 and the other banks about $472,000,000, making a total of $1,686,000,000. There are more than 11,000,000 depositors in the savings banks who are directly interested in these bonds because their savings have been invested in them. In addition, our insurance companies hold bonds of about $1,520,000,000 and there are 34,000,000 insurance policy holders whose policies are in no small measure secured by these investments. As there are, according to the last published report of the Interstate Commerce Commission about $10,000,000,000 worth of railroad bonds in the hands of the public, then $3,206,000,000, or 32 per cent of them are held by insurance companies and banks in which the public has a direct and personal interest.
Another point of public interest it seems to us is the fact that the four brotherhoods have, according to the American Federation of Labor, & membership of 480,000, all of whom are not, however, employed upon the railroads According to the last Interstate Commerce Commission report about 322,000 trainmen are engaged upon the steam railroads, as compared with a total number of all railroad employees of 1,800,000. It is, therefore, plainly seen that the powerful and well organized labor organizations which bespeak your consideration and that of Congress in favor of their solution of the railroad problem, and their threatening demands in respect to an immediate increas in wages, comprise only about 18 per cent of all the railroad workers. For your consideration, and to show that the railroad workers are a comparatively small proportion of our total citizenry engaged in gainful pursuits, we submit the following from the latest census reports :
uation and believing that some of the drastic legislation that is being proposed will not remedy the condition, but will really make conditions worse, we urge that you use your influence in having the railroads turned back to their corporate owners as soon as proper legislation can be enacted, firmly believing that better transportation can and will be given where there are competitive conditions.
We also urge that power be given the Interstate Commerce Commission to initiate and suspend freight rates. Thanking you for your consideration, we beg to remain, Yours, very truly,
John STAGMAIER, President.
LETTER SUBMITTED BY MR. F. P. HIXON.
LA CROSSE, Wis., August 25, 1919. Hon. John J. Esch,
Washington, D. C. MY DEAR MR. Esch: I take the liberty of inclosing herewith a memorandum setting forth the views of the Western Association of Short Line Railroads with reference to changes in the act to regulate commerce.
Without doing violence to any principle or ignoring the just rights of the trunk lines and all others in interest, these suggestions seek to safeguard in a reasonable way the interests of the short lines and the industries and communities located on them.
I do not know that you will find any part of these suggestions new or novel, but I wish to draw your attention to the particular purpose for which they are designed, and from that standpoint to solicit your favorable consideration. Yours, very truly,
F. P. Hixon.
(The memorandum referred to by Mr. Hixon is as follows:)
MEMORANDUM REGARDING SUGGESTED AMENDMENTS ON THE ACT TO REGULATE
First. All rates, both State and interstate, and the divisions of such rates, to be placed under the supervision of the Interstate Commerce Commission.
Second. All rates, fares, charges, and practices affecting the transportation of passengers or property at the time of the passage of this act are hereby declared to be prima facie reasonable, just, and lawful, and no common carrier shall be required to reduce or to modify any such rate, charge, classification, regulation, or practice except upon an order of the Interstate Commerce Commission requiring such change, except as is otherwise provided in this act.
Third. It shall be the duty of every carrier subject to the provisions of this act to provide and furnish such transportation upon reasonable request therefor; all carriers subject to the provisions of this act shall be required so to unite their lines that they will constitute a single national transportation system, and to that end to establish through routes and just and reasonable joint rates applicable thereto from and to all points reached by their respective lines between which through traffic is offered, or may reasonably be expected to be offered, for transportation, to provide reasonable facilities for operating such through routes, and to make reasonable rules and regulations with respect to the exchange, interchange, and return of cars used therein, and for the operation of such through routes and providing for reasonable compensation to those entitled thereto.
In establishing joint rates applicable to the transportation of traffic over the through routes herein required to be established, no differences shall be made in the amount or measure of such rates by reason of differences in the owner. ship or control of any of the lines or portions of lines embraced within the through routes, it being the intent and purpose hereof that like rates shall be maintained for like or substantially similar services of transportation, irrespurtive of the number of common carriers participating therein and irrespective of relationship of such common carriers: Provided, That the commission shall have the right whenever a through route is shown to be unreasonably long as compared with another practicable and existing through route between the same points, to grant relief from this requirement upon the application of any carrier or carriers, and to fix the conditions upon which such relief may be afforded.
The proposed amendment is suggested by a decision of the Interstate Commerce Commission in Missouri & Illinois Coal Company v. Mlinois Central Railroad et al. (22 I. C. C. 39; case No. 3690). The purpose of the amend- ment is to provide a national system of railroads, for purposes of rates and wervices, which shall be such in fact, and to prevent the imposition of dis abilities upon any traffic by reason of the accidents of railroad ownership.
Amend section 15 of this act by striking out the fourth paragraph of sectie 15, which limits the power of the coinmission to prescribe through routes.
LETTERS SUBMITTED BY THE AMERICAN INSTITUTE OF CONSULT
ING ENGINEERS (INC.).
New YORK, August 25, 1919. Hon. CHAIRMAN COMMITTEE OF INTERSTATE
AND FOREIGN COMMERCE,
House of Representatives, Washington D.C. Sir: The radically expressed statement appearing in the public press on August 3, 1919, over the signatures of the presidents of the four railroad brotherhoods and of a representative of the American Federation of Labor, caused this institute to address the Presdent upon the subject under date of August 19, 1919.
The brotherhoods presented a plan for the solution of the railroad problem, which is so unsound and inappropriate to our institutions of Government that we feel an expression of our opinion should be presented to the Congress through the proper committees of the two Houses. A copy of our communication to the President is therefore, filed with you with the request that you give consideration to that portion of it which relates to the so-called Plumb plan for the solution of the railroad problem. So much of our statement * has to do with the demands for an increase of wages for the railroad employees is a matter solely in the hands of the President and doubtless, he will give due consideration to our expression upon that subject.
We are speaking entirely for the public welfare and without selfish ends. We offer the services of the institute and its members toward a further discussion of the subject of a permanent solution of the railroad problem. Very respectfully,
A. E. MOLITOR, Secretary.