The Washington herald., 1917-12-09
The Railroad Problem.

There are so many phases of the railroad situation
Bidding for analysis at this time that exhaustive re-
view of the whole problem can hardly be confined to
single editorial yet there is wha outstanding fea-
fures which can in general way be brought more
clearly within the limits of common understanding.
Out of the great realm of uncertainty which sur
rounds railroading at present something definite will
probably eventuate through the alternative recommen
,dations of the Interstate Commerce Commission to
congress.
4 The railroads are urging immediate increases m
freight rates. while the shippers doing their best to
defer consideration of those increases. The govern
ent faces the task of Transporting troops and sup
plies incidental to activities and naturally
Jocks for the most efficient handling of the work
Then there is the labor element which is chafng under
the yoke of Insufficient salaries cope with wartime
prices And the general public like sheep camors for
public ownership of the roads.
The nations course regarding these problems will
BE one Of if not the most vital decision of our par
ticipation of the
zSYie administration of the War Boards unifcation
Tor operating purposes while pleasing alike to the rail-
roads and the public gives encouragement to the plan
for broad Federal control. And yet such expert
nent those brought about the most scientific
plan and with the ablest of railroad brains assisting
might not solve the problem effectively advan-
tageousy as alternative plans that have been offered
As outlined by Ordway Tead in the New Republic
they are: First, to restore prewar competition and
allow the railroads to operate upward of Goo sepa
Interpretations Allow rate increases sufficient to
create earnings which will strengthen the security
let and make it possible to float issues basis
Of these individual competitive needs. This will be the
most expensive procedure from every point of view
Second, to retain the economy of operations as
national unit change laws create FIVE six
Enge sectional systems under Federal Incorporation;
give the Interstate Commerce Commission complete
5ower over the issuance of securities and rates.
drus guaranteeing governmentaly certain percentum
e aabasis of past earnings and put representative
of sthe government with veto power upon each sys-
teia,s Directorate Should this pan-suggestedI by
railroad president-be followed the question of rate
increase could be held in allegiance for the present and
the issue of securities would be carried under
proper safeguards.
The third alternative differs from the second in that
instead of having the government guarantee earnings it
provides that the government finance outlays by
its own bond issues. 1t would then preferably and
rent the new equipment to the railroads. This sugges
ton combines the advantages of private operation with
the economy of securing funds on government credit.
And it places the government in position of the
closest possible working alliance and progressive
troll over renewals and extensions. The government
would find itself in the possession of more and more
equipment the cost of which known, and
basis of which payment for the whole could, when
government ownership broached, proceed with bet
ter satisfaction to all parties
Congress looks to the executive department for ad
vice before it will proceed upon any radical course
but the whole question offers many knotty
problems that the Capitol discussion should result in
comprehensive analysis of all plans and the choice of
the remedy that best fits the existing evils