Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-12
RAILROAD ISSUE
IN CONGRESS
Some Problems Which Senate
and House May Have
to Consider
speoioi Correspondence Evening Public Ledger

Speoidi Correspondence Evening Public Ledger
WASHINGTON. Dec. II.
COME years ago the late John c. johnson,
~ than whom perhaps no other lawyer in
America was more sought after by railroads
and holders OF railroad securities, predicted
that unless great caro- was exercised in tho
matter Of railroad legislation the day would
come when the value OF all railroad sccurl-
ties would be seriously affected.
Mr.. johnson had beon discussing certain
railroad litigation before the Supreme Court
of the United States and was deeply con-
cerned about the trend Of trust and labor
legislation as II was then limiting the scope
of railroad operations. This was long before
the war In Europe. and was wholly apart
from the new problems which the war In
europe. as II has been transplanted to
America. presented TO plague the managers
Of our great transportation systems MIR.
Johnson's fears as to the future value Of Sc
curitics was due not only to national legisla-
tion. but to tho Legislation Of forty-eght SOW
ereign States through which the railroads
had been constructed and to whose laws.
regulations and systems of taxation they
must submit.
II was long after tho 1907 car shortage.
and subsequent also to the repeated publica-
ton OF JAMES j. Hills estimate of $500, ,OoO.-
600 as tho figure necessary to bring tho rail-
roads of the country up to the requirements
of transportation.
That so active and well-informod n cor
poraton lawyer should then have anticipated
tho troubles confronting the railroads is
ipfA Dctln
Commerce Commission, due partly to war
conditions, but because the outcome was In
evitable. has actually recommended the Cow
ernment operation of railroads, or their CEN
tralization under one head. with tho sugges-
ton that not $500. 100000 rs quoted by Mr..
Hill, but twice that amount, shall bo loaned
by the Government to put the railroads in
WorkSb up-to-date condition.
Securities Holders Giving Heed
That the railroads have fallen down In the
great task imposed upon them by the war Is
self-evidont. They have been groaning under
their burdens, and while giving the best serv-
Ice of which they are capable, considering
the quality Of their equipment, their lack of
engines and ears and their failure to keep
pace in trackage with modern commercial
demands, 1t is no reflection upon them or
their managers to admit the facts AS they
now appear.
To Il certain extent, the railroads by sitting
competition. which has included the bottling
up of waterways as AN adjunct TO transpor-
tation, have themselves been responsible for
the sorry plight they are now compelled to
face. They have been fretting under legis-
lative conditions for years and exercised
just enough influence with legislation to lead
to the hope that they would be able to weather
the storm. Since the war. however, all condi-
tions have changed for the railroads, just as
they have changed for other businesses, and
at last the issue had to be met. Through
the Interstate Commerce Commission the
case has finally been stated more effectively,
perhaps. for the country now at war, as well
as for the railroads trying TO keep up with
war necessities, than tho best railroad law
yers could have stated it themselves.
The railroads overdone and in some
instances run down. They need money. IL
is the estimate of the commission that $1,000
100000 could be proiitably loaned TO the
railroads TO get them started right. The
President Is now in position to take Il hand
in adjusting the transportation problem; in
deed he has really had the power To take
over the railroads for purposes for
some time. Congress will also be called upon
to act, especially IL railroad loan is con-
templated although this will depend largely
upon such suggestions as the President may
make. That security holders are deeply in
terested is shown in the discussion of that
phase of the Interstate Commerce Commits
sion's report which suggests Government
ownership. II Is believed that some railroad
managers ii retained in their present posi-
tions, would not object TO Government own
crshp. They probably would II II were left
to Congress TO fix their salaries.
Among the security holders giving close
attention TO the whole matter Is the Associa
tion Of Life Insurance Presidents, which
claims TO represent approximately Sl,oOO,-
000, 900 of railroad securities. AS that sum
is equivalent to one-fourth of the total assets
of the life insurance companies of the nation,
II is easy to understand how watchfu these
investing directors are Of the outcome or tho
new issue In their behalf it is claimed that
no fewer than $4,000, 900 persons are directly
or indirectly owners of railroad securities.
Waterways Coming to the Front
While the President Is threshng over tho
troubles of the railroads it is apparent to
those who have watched the wheeling engines
draw their lengthy trains of cars generally
behind time, and especially SO as to heavy
freight, that not only must the railroads be
re-enforced by new tracks and new equip
ment, but that the long-negected inland wa
terways must be opened up for public use as
a relief measure. Secretary Redheld, of the
Department of Commerce. tells us bluntly
that Government neglect in this regard has
almost approached the criminal stage.
Thomas A. Edison. now dedicating his
service to the Government at Washington,
told the writer ten days ago that such
Canal ought to be seized, and that 1t should
be opened to a ships depth along with the
proposed canal across the state of New Jer-
sey from the Delaware River to the Raritan
Bay Mr. Edison discussing the pro-
priety of drawing even the small canal barges
from the upper waters of New York and
bringing them dowr. below the ice belt, SO that
they might be put to instant use II neces-
sary on such miserable inland canals as now
exist He contended that there should be no
hesitation In creating a ship passageway in
land all the way from Narragansett Bay to