The Nonpartisan Leader Newspaper, September 19, 1921, Page 15

e How Can the Farmer Prosper Unless the Railroads Prosper? THE development and prosperity of farming in the United States ilave in the pasi: gone hand in hand with the growth and development of the- railroads. or beside the courageous pioneer has gone the railway. - Ahead of The railway is dependent on the farmer for-the tonnage.which enables it to live and conduct its business. Likewise.the farmer “is dependent on good and adequate service by the railway as the means of getting his products to the markets of this coun- try and the world under conditions which will enable him to prosper. Railway Development at a Standstill The development of the railways has - been practically at a standstill for some years. No industry can grow unless it can get people to put new capital into-it. No industry can get people to invest capi- tal unless it can pay a return on this addi- tional capital. Stagnation in the railroad industry is a menace to the farmer. The products of the farms are constantly increasing. Without increased means of transporta- tion these increased products of the farms cannot be carried to market. The Earning Power of the Railroads Was Practically Destroyed During the War They are now trying ‘to get it back. They want to get it back so they can pro- vide additional locomotives and cars to handle the increase in traffic and provide for the future development of the country. They must raise large amounts of new capital to provide these facilities. Not Asking Return on “Watered” Stock Every farmer and business man knows it is impossible at present to borrow large amounts of money -for even 6 per cent. How can the railroads be expected to raise “new capital for new facilities if they are not allowed to earn at least 6 per cent, which the Interstate Commerce Commis- sion has held they need? : Is this 6 per cent on “watered” stock? No. It is not based on stock at all, or on bonds either. -It is based on the minimum value of the property which the railways devote every day to the public service in transportation—tracks, stations, locomo- tives, cars, shops, and so on. This valu- ation has been made by .the Interstate Commerce Commission under the Valu- ation Act fathered by Senator LaFollette of Wisconsin eight yearsago. It is not based on what it would cost to rebuild the railroads at present high prices of materials and wages, but on ° what it would cost to rebuild them at pre- war wages and prices as they stoed in 1914. A valuation based on present wages and prices would be twice as great. ' Some railroads are “overcapitalized.” Many, including most of the big systems, are undercapitalized. - But neither in the one case nor the other does this affect the basis on-which rates are made. : What Regulation Can Not Do The farmer has just lost a friend and the country a valuable citizen by the death of ex-Judge C. A. Prouty. He was for seventeen years a member of the Inter- state Commerze Commission. He was in charge of the valuation of the railroads -£from the time it was begun until his death. He said: “We can regulate the railways. We can- not by legislation force one single dollar of private capital into railway investment against its will.” The farmer, by favoring regulations that will help the railways to regain their reasonable earning power, can help them to attract hundreds of millions of dollars needed for rehabilitation and enlargement of railway facilities and for increased and improved transportation. service to the - farmer. The further development of the coun- try will be arrested and the farmers and -all other classes seriously injured unless the railways are given opportunity ' to raise the capital needed to enable them to make their service better and more ade- quate. ; ~ Association of Railway Executives 61 BROADWAY" NEW YORK 764 TRANSPORTATION BUILDING CHICAGO, ILL. 3 MUNSEY BUILDING Those desiring further information on the railroad situation are reguested to address the offices of the Association or the presidents of any of the in Mention the Leader When Writing Advertisers ividual railroads. . PAGE SIXTEEN WASHINGTON, D. C. | Get ItNow | ADVERTISEMENTS a'Dollai' “TheStory of the Nonpartisan League,” by Charles Ed- | ward Russell, cloth bound, illustrated, retails for $2. We have been seling it, separate from Leader sub- scriptions, for $1.25. But there is a way you can get this great book for A DOL- LAR, half its regular book- store price.- ‘How? First, Something About the Book The book is the story of A. C. Townley and the Non- partisan League, written by one of America’s most noted writers on - political and economic subjects. It- is published by Harper & Bros. Mr. Russell has been in personal touch with af-: fairs in the states where the League was organized. He speaks from first hand knowledge. His book answers such questions as these: Was the League disloyal in the war? Has the League been autocratic in- management? Is A. C. Townley a crook? His answers are NOT answers that the League would give, nor yet that League enemies would give. They are his best, impartial judgment. Enemies of the League- have quoted this book to prove their points. Leaguers have been pleased with the book. YOU ought to read it and OWN it. Kill Two Birds With One Stone Renew your Nonpartisan Leader subscription for two years, at $1.50 per year, which makes $3.° Add ONE DOLLAR to your check, making it total $4, and you get the Russell book . besides two years of the Leader!_ You are going to renew your Leader subscription anyway, be- cause you must have the infor- mation that no other farm pub-. lication outside of the Leader can give you. So just add $1 to that $3 check you are going to - send us for the Leader and get by the next mail the book no farmer should be without. - The Nonpartisan Leader Box 2072, Minneapolis, Minn. Use the Following Blank: o ——— ———p——— v -~ I Nonpartisan Leader (Book Dept.), | Mention the Leader When Box 2072, Minneapolis, Minn Gentlemen : \ Inclosed find $4 (check, currency, money or@er: draft) for which extend my subscription to the.Leader for TWO years, and in addition send me Russell’s “The Story of the Nonpartisan League,” 333 pages, cloth bound, illustrated. Name ...ceose Postoffice svveecesesrcassercncccsnnens Streetor R. F. D. ......... State %4 Write plainly *eeesecntesstrenetnrns Writing Advertisers | I i | | 1 F | | | | | M | 1i | | |