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The railroads of the nation over a ten-year period prior to 1930 spent an annual average of more than six and a quarter billion dollars for interest, debt retirement, expansion, administration and operation. During this period, the people paid an average annual rail transportation bill of a little over six billion dollars. The railroads borrowed the difference on the hope of a fair return held out to them by the Transportation Act of 1920 (Nelson).
The federal government spends annually on past wars and the national defense approximately two and three-quarter billion dollars. The railroads for the ten years preceding the present depression paid their employees nearly three billion dollars annually, an amount somewhat greater than the government each year spends for past wars and national defense...
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