CAPITAL AND LABOR
THE past record of the railroads with both capital and labor has given ground for justifiable criticism. Fortunately for everyone interested in or dependent upon the railroads, that chapter of their history is closed.
Alba B. Johnson, former president of the Baldwin Locomotive Works, once asked and answered the following question:
"Have American railway companies issued stock as a bonus with bonds?" The answer is, "Yes, because it was then necessary to attract investors and it was consistent with the business standards of the time; the practice was once general. . . ."
All this is of the past, however. With only one or two exceptions there was no evidence of dishonest financing of railroads and no conniving between railway managers and their fiscal agents during the decade 1910-1920. Since the Transportation Act was passed in 1920 there has been not a single one. The important question is, "What are conditions today?"
The Transportation Act gave the Interstate Commerce Commission complete authority on the sub-