Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-13
u. S. OWNERSHIP
HIT BYP.R. R. HEAD
Samuel Rea Says Government
Control of Railroads Would
Be WastefuI.
ASSERTS COUNTRY Is
CONDITION OF UNREST
Takes Issue With MelIen.
Points to Vast Expenditures
Without Returns.

NEW YORK, Nov. 13.-Follow,ne
the statement of Charles S. MelIen.
former president of the New Haven
system, which predicted the early ac-
QUESTION of railroads by the govern
ment--in other words. government
ownership-many railroad men have
expressed their opinions Among these
Is Samuel Rea, head of the great
pennsylvania system, whose commu-
nieaton follows:
There is bound to be a divergence
or opinion regarding government
ownership of railroads. We are III
a period of dissatisfaction and critic
ism of the entire political and social
structure and sound conclusions can
not be reached without clear thought
and careful consideration.
There are two sides to the aues-
ton. Government ownership is bound
to come quickly II by continued state
and Federal legislation and commits
sion orders railroad control il as
sumed without the responsibilities OF
management. The results are evil
denced by restriction of railroad earn
ings. by Increase of railroad expenses
over which the railroads have no con-
troll, by laws ordering extra and I'M
necessary train crews. elimination of
grade crossings without the States or
municipalities cooperating and par
ticipating in the cost, the public i'm
provements demanded by way of steel
cars. station improvements and better
facilities. the heavy Increase in taxes.
higher wages and greater cost OF
everything pertaining to railroad
operation.
Expenditures Earn Little.
Therefore, while the railroads have
liberally furnished large amounts OF
capital for improvements it is a facr
that these large expenditures in the
past few years have earned little If
any. return, and unless conditions
change and the railroads are impair
TALLY and fairly dealt with private
capital cannot much longer be in
duced to provide the tracks, terminals
and equipment demanded by the busi-
ness OF the country. Railroads must
consequently restrict their program of
improvements and operations to ac-
cord with that condition. Then.
whether the results are justifiable or
not UNIVERSAL demand may come
for the naturalization and railroads
by compelling the government to do
what private capital can no longer be
induced to do.
There is a strong other side to the
question; the constructive side of the
sober judgment of the country will re-
assert itself. Within a comparatively
few years there would, in my judg-
ment, be demand to return to pri-
waite ownership and management of
the railroads of this country, because
believe the venture would be un-
successful and wasteful. and because
| poU t1d
would, in view of the worldwide de-
mand for capital, be found insufficiepf
to meet the pressing demands fro
every part of this large and growing
country to improve living and agri-
culture conditions foster commerce
and other measures to insure national
progress.
Government Would Fail.
"All intelligent citizens realize that
government ownership could not more
effectively control the railroads than
present strict State and Federal regu-
ton, accepted and supported in good
faith by the railroads. The nation at
large will demand similar control by
the Federal, State and municipal gov
ernnents against the extravagant ex-
pcnditures for productive prof.
ects. which are afterward expensive
to maintain Public opinion will
finally assert itself by repeating un-
necessary. punitive and unwise leeis-
lation against the best interests of the
railroads their employees and the pub
lie. Time will bring a true apprecia-
ton Of the great work, and of the
present honest and efficient manage
ment OF the railroads and their great
share In malsing and continuing the
prosperity of the country conf
IDENTITY hope that the earliest evidence
of public confidence will be unanimous
approval of the small rate increase
now requested by the railroads"