New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-19

with the National Association Of Rail-
road Security Owners he is promoting
every effort on the part. Of the rail-
roads TO obtain higher freight rates. 1t
seems to me that these activities are
so plainly superficial in their effect as
to hardly merit the consideration OF
: the public which is concerned with the
railroad transportation problem, to say
nothing of the Interstate Commerce
/ Commission, which has TO hear these
arguments.
II we consider but one factor. e.,
: the tremendous aggregate Of railroad
mileage which has been in the hands
Of the courts during the past three
years, each Of the companies claiming
/ that its plight was because Of high
operating costs and insufficient rev.
enues--we should also consider the
other railroad systems which have con-
tinued to prosper during this same pc
riod with practically the same rates in
effect and governed by substantially
the same operating costs. The public
/ is asked to carry the burden of rail-
way inefficiency. not so much fault Of
I the individual systems, but because
/ the railroads are not allowed to oper-
ate as a unit
! If we should attempt to split up our
postal service into twenty-five or fifty
distinct organizations, it would take
very little imagination TO see what
chaotic condition our mail transporta-
| ton would be In. Mr.. Vsnderlip stated
/ but a short time ago that this country
was not drifting toward socialism, but
sailing toward it," Mr.. Vanderlip ap-
parently recognizes an inevitable re-
suit and he undoubtedly referred to
| the continued demands on the part OF
labor for higher wages which the EN-
ployers particularly referring to the
railroads. attempted to collect from
/ the public in its usual semi annual
appeal to the Interstate Commerce
3
If the United States government, in
its attempts to supervise railway trans
portation, can recognize the inevitable
result of the conditions which we have
been experiencing a centralized ma
tional railroad operating board will be
created. This board will consist of,
say, five of the most experienced rail
road executives, and will provide that
each Of these members will receive a
salary commensurate with the brains
and ability Of the individual. We can
not expect successful governmental
control from the hands of the small
politician or the expert lawyer.
The American public is gradually
learning TO realize that the primary
function of the railroad is TO provide
transportation; its secondary purpose
is to make money. This order has,
however, been plainly reversed in the
past and the railroads themselves
(meaning, of course, the security hold
ers also) are to-day facing the in
evitable result. The credit Of the rail-
roads has not been injured By the gov
eminent nor by the shipper, but it has
been practically destroyed by the in
iquitous administration of almost
majority of the American railroad
mileage.
To ask the government to now come
in and practically guarantee an issue
of railroad obligations TO restore, or
rather maintain, the operating efficiency
of the roads is the last word in ANA
teur finance. All that can be said
against government control or abso-
lutte government ownership of rail-
road properties is more than offset By
the dollars and cents position Of the
owner of railroad securities who has
held his investment over a ten-year
period.
Let US take, for instance, the rela-
tive position of the New York, New
Haven G. Hartford and New York
Central systems. Both of these organ
izations operate in territory Of ex-
traordinary traffic density, and operat-
ing results are or should be upon a
very fair comparative basis. Rates OBJ
tanned by each of these systems are
practically the same and the problems,
generally speaking, which have had to
be met by both systems have been very
much the same. During the past ten
years the value of the New York, New
Haven & Hartford system has declined
TO a point of receivership discussion
and, as we all know, greatly to the ex-
pense of majority of the residents
of New England states who have held
the securities of this system. During
the same period the New York Cen
trail lines have prospered, expanded
and are to-day in as substantial posi-
ton as any of the American railroad
systems, Notwithstanding the fact that
the economic conditions have been
practically the same with this system
as with the New York, New Haven &
Hartford.
This example might be extended to
any number of other cases and an open
minded discussion Of the basic reasons
for the present plight of the American
railroad systems cannot help to bring
about the only lasting solution; that
is, complete governmental supervision
or the absolute governmental owner
ship from a centralized board of able
executives-not politicians.
c. EDMUND FAY.
New York, Aug. Ia, 1917.