The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1917-12-08
CONGRESS AND THE RAILROADS

AT the coming session of congress the railroad SITUATION
will probably receive consideration. our ahrod "n,"o
inadequate to meet the requirements OF the u du ."O
time to satisfy commercial demands. Some of our law max
ers favor government ownership and operauoh' o"oi' ""
the government should take over and operate "e ri0ip' 'N"
roads during the war. Another proposal is for the government
TO give the railroads financial assistance. Ihe slhpieS' pan
three years and the railroads can neither porro" """'' nv
sell securities because their net incomes + ms
their traffic and gross receipts increase. PAU NJ III
the federal reserve board, as good an authority Is any vi No
subject. estified before the interstate commerce omnis'icn
few days ago that the shrinkage in market values u ei0
railroad securities within a year amounts to SSoooooVOO, au
that the railroads are travelling in a vicious circle OF 1 : a.
costs of labor and materials, and he suggested as a remedy ud
the government. fix the wages of railroad LABOR 5 1t hd' iA0u
the prices of steel products.
Government ownership and operation will add to the cost
of railroad service, will create an army of two million PUBIC
servants, bent on getting still higher pay, and VIII increase
either taxes or transportation rates. Government ana ior AL
roads, in the form of loans or exchange u Dohos, ouA iaAs
in view of Canada's experience with the Canadian Northern ana
Grand Trunk Pacific railways. 1t seems inadvisable to add a n
unnecessary dollar to the governments obligations "heh "e
war must be financed at the same time.
If it will help the railroads to grant them federal charters
in place of the state charters under which they no" opera.e'
the states should not oppose the change. This brings up the
perennial dispute about state rights which would probably
have to be settled by the United States supreme court. IL
would be a sort of war measure, but winning the war Is W 1
first business of the country and all else must be suDoroinateo
to it. Some object that federal incorporation would put the
necks of all the railroads in a moose with which the federal
government might strangle them. This fear seems far-fetched.
me rallrOa0S ae now peSlefeu by TIE oHllIctlhS ou1hOiNy VI
congress and forty-eight individual states, most of which have
railroad boards clothed with power to make rates and traffic
regulations. By making the federal government responsible
the issues would be simpler and more easily settled. me ex-
listing system is not working well. The federal government,
for war purposes, has thrown the Sherman law and the anti
trust laws into the discard to increase railroad efficiency, and
the new pooling arrangements would work splendidy If the
railroads possessed the necessary equipment and criminal IA
cilities. Why not take another step and incorporate the rail
roads under a federal law that would make them more efficient,
and that would keep their requirements before congress and
the public? Congress is responsible for the impairment OF
railroad service and credit and should deal with the railroad
situation as a whole NewYOrk Commercial.