Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-27
EXPEkTS HAIL FEDERAL
CONTROL LOFRALROADS
Means End of Many Growing
Troubles for Them,
They Believe
TO KEEP LABOR IN LINE
Finances Also Viii Be Solved by
Governments Taking Over All
Lines

LILIES
-----------.-
Government control of the railroads
under the terms outlined by President
Wilson Is welcomed by local railroad ex-
per,s, officials and investors. 1t. is
ereeted as the means of bringing to an
end a lot of troubles which have been
growing and growing and threatening
various degrees Of disaster since this
country entered the war.
First of the problems which has been
worrying the officials and operators Of
the roads is that of keeping the railroad
brotherhoods working. 1t Is generally
accepted that the Government will be
able to keep down labor troubles among
the men operating the roads better than
the railroads themselves. This view is
taken due TO the recent successes of
President Wilson in keeping the men
in line as a matter Of patriotism.
Next to this problem comes that of
finances, and this Is as far-reaching as
the labor proposition. The Presidents
proposal to guarantee the roads earn
ings IN proportion to the earnings of the
past three years Is greeted as being one
OF the most liberal and fair agreements
the Government has made since the
declaration of war. II Congress passes
the law ratifying this section OF the
Presidents proposal the railroads will
havo had their difficult financial prob
lem settled at n stroke, and they can
go ahead with their programs of eNpan-
sion and Improvement. In manner
Wbif N 1Cou1I ha hapn I'm 1npegiblp nnGpr
present conditions.
WILL STEADY STOCK MARKET
This financial arrangement Is also eS.
peetcd to entirely settle the railroad
stock market, and thus will have trc-
mendous effect upon the future sale of
Liberty Bonds. The unstaple condition
OF railroad stocks at the beginning of the
second Liberty Loan is asserted to have
been the cause Of the loan not moving
along as quickly as the Government
hoped. Most railroad stocks are now at
least $40 under par.
With their net earnings guaranteed
the railroads can proceed to sell addi-
tional stock for purposes of expansion
for tho stocks are expected to rise Inn
mediately to par or better, the figure
1T which they are allowed to sell stock
tie law. Ht
road, for instance. has virtually beer
waiting for its stock to rise to par OF
better in order TO issue between $780,.
100000 and s60,0o0.000 for expansion
and maintenance. The railroads car
also depend upon the Government to as
slst them financially. with the Govern
ment managing the roads.
Railroad men do not expect to see tn,
railroad bill passed by Congress giving
the Government power to carry out tn,
financial issues proposed by the presi
dent without a severe struggle. They
expect it TO meet much opposition.
President Rea. of the Pennsylvania
was called to Washington late last nigh
and President Dice, of'the Philadelphia
and Reading, who was in Pittsburgh
started for the capital Immediately afte
announcement by the President that tn,
roads would be taken over.
DIRECTOR PRAISES PRESIDENT
c. stuart Patterson. president of tn,
Western Savings Fund, and an activ,
director of the Pennsylvania Railro I'd
said President Wilson has exercised
good judgment in taking over the roads
He said:
"The President patriot,caly has don
country. There will be no attempt oil
the part Of railroad officials to criticiz
the President. On the contrary, fec
certain the railroad officials will co
operate with the President to the fullcs
extent.
~ have not had time TO read all de
tails of the railroad plan. can sa,
at this time that the Presidents actioi
will tend TO stabilize the value of rail
road securities II will insure the great
est unity of action. The railroads vii
remain about as they are, with the OK
ception that they will be conducted Il
An operating capacity under the directlo
of a central authority.
".'he railroads have always done wha
the Government has asked, and this
especially true since Americas entranc
into the war Everything has given wa
to the Governments desires.
Preferential freight has been give
the right Of way. troop movements an
the speedy moving of munitions are tn
first consideration. and the railroad
have done everything possible to aid tn
Government.
Under the Presidents plan there wi
be one department doing a certain thin
instead Of a dozen departments doing
similar thing. This promotes efiicienc
prevents overlapping and expedites unit
Of action.
president Lincoln did the same thir
In a small way during the civil Wa
Lincoln co-ordinated several railroad
and President Wilson has carried o.
that plan on 4 nationwide scale. II
President may be assured we Will {
everything he asks"
PLAN LIKELY TO SUCCEED
President Wilson's plan Is consider'
far more likely to be aggressive thi
. that adopted by the English and ther
fore more likely to succeed. The En-
lish plan involves a director, with, Vel
little power. but a voluntary commit
Of railroad men in actual control. tn
plan has had its railroad strikes al
nearly all Of the other troubles OF q
railroad Of ordinary peace times. II
plan adopted by President Wilson Is c
pected TO produce harmony as respec
the operating employees such as .trai
men, but Is not expected to overcor
the troubles experienced In obtainii
shop and track men, as this is matt
Of labor scarcity rather than demai
for increases Of wages.
The Government is expected to owe
come the greatest difficulty of keeiI
shipping moving by removing the que
tion of earnings and division of ear
ings under the Presidents guarantt
1t is expected that the roads will
used for the purpose for which tn