The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1913-10-03

HOWARD ELLIOTT, PRESIDENT NEW YORK,
NEW HAVEN AND HARTFORD RAILROAD
COMPANY AND CHIEF EXECUTIVE OF THE
NEW ENGLAND TRANSPORTATION LINES
England is just as important to her flu
ture growth as to have adequate banking
facilities, adequate commercial organiza-
tons and a sensible sane and honest pub
lie opinion that will be reflected in a gov
eminent that will not be swayed by the
whims, prejudice or fads Of the moment.
To solve 1t right will require much pa
thence, work and money from those both
in and out of the railroad service, and the
problem appealed to me very much when
some of my friends paid me the very high
compliment of asking me to come here and
help.
Management by Owners.
Some of the difficulties and inadequacies
of the transportation machine of the Unit
ed States today are the result of drifting
away too far from the idea that transpor-
tation is business, which in the long run
must be governed by the same great hu-
man and natural laws that affect all hu-
man affairs. In saying this do not wish
to be understood as meaning that there
should not be supervision and regulation
of the great public service corporations
and that changing conditions do not make
necessary changes in method and in law.
But 1 do say that care should be taken
not to have that supervision and regula-
ton go so far that Il practically takes the
real power of management away from
those who have invested their money in
the business So long as they have their
money invested, so long as they are re-
sponsible for the financial results, so long
as they give adequate, reasonable and
safe service at rates that will permit of
gross earnings sufficient to pay expenses,
taxes interest on debts, take care of
depreciation and obsolescence and pay a
reasonable return to the owners, they
must have the right to decide many i'm
portant questions, particularly those re-
latng to the details Of service, the or
ganization OF the staff and the rules and
regulations under which the stan and
employees must work to produce the
greatest efficiency and safety.
Regulation and Ownership.
During the last five years 1 have tried
throughout the west TO present the railroad
side Of the transportation question. But
also had in mind a much broader question
namely that the country cannot attain
its best growth unless the people can be
made to see that adequate and safe
transportation Is absolutely necessary
and that II cannot be obtained through
private ownership unless. under honest
management, enough money Is earned to
pay approximately the same return to the
investor as IS received by investors in
other classes Of business in the same
territory. and in addition lay up a fund
TO provide for bad times-when earnings
are poor.
The policy OF the recommendation
and state-during the last twenty-five
sears seems 10 have been 10 decide rate
questions in the great majority Of cases
in such a way that rates were rarely ad-
,-auced and generally were reduced. and
10 introduce rules. regulations and meth
DDS that increased expenses. I do. how
ever. want 20 make q plea that. coupled |
with restraint and control there should !
be protection 10 the owners Of the Sc
curfties The commissions % both state |
and natfonal-naturally feel the great |
pressure 81 the millions Of users Of the |
railroads for reduced rates and increased |
facilities But II the rates continue TO /
decline or even remain on the present /
level and n expenses are increased by |
higher wages and cost Of materials. and /