South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-12
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Enrnlrn AlunrtI.Il.-
DECEMBER II, 1917.
RAILROAD POOLS AND SUBSIDIES

Failure of the railroads get together or to meet
the requirements of the country, incident
war bringing us and nearer TO govern
ment ownership. least government control. The
presto has refused recommend railroad subsidy
same he has stood against ship subsidy, and
in that president is right Financing private en-
erprises operated profit no part of the gov
sralnents business railroad subsidy virtually
what the proposal Of the railroads would have amount
81 specuIated away their day OF
srace rather the railroad magnates have using
heir speculative footballs instead Of
preparing them for public service which for
heir present inetciency, predicament which
hey find themselves.
Because Of The ultra-specuIative moods of these
nagnaes. have heretofore compelled the railroads
o compete with each other thinking it would remedy
he abuses growing Of greedy arrangements We
have thought that competition would keep down rates
nd compel service improvements in order to get the
business but not so Every attempted pool
looking to the elimination of competition any
has been checked by rigid application of the anti
rust laws. Now suddenly the revou-
ionary spectacle of all tine railroad systems oB
Chicago cOnsoldatng their management and cars and
rackage. coming under federal board The move
recognized necessary measure, and if there
any new legislation to Iegaze it, congress
may be depended to supply it,
Great changes are already under way The pooling
Of makes possible their continuous and thus
Increases the available carrying power The pooling
Of trackage makes it possible freight by the
shortest routes regardless of the ownership of the
routes. Thus certain lines viii be devoted almost
wholly 20 freight traffic and passenger traffic viii be
concentrated ether lines.
The whole vast network Of tracks rolling stock
repair shops. of the thicky eastern
ton of the Continent viii be operated it were
single railroad system. Southern railroads will be
utilized for role to which they especially suited
the carrying OF foodstuns seaports expectation
The lines will be expected release whatever
equipment they spare. and to help the eastern
ines with their repair facilities
All this amounts to government control of the ma
lions railroads The actual operation in the hands
OF practical railroad men, but the government may
pave to directing power. 1t is the vice pres,-
kdents Of the eastern roads dividing up their
pooled resources routing traffic and arranging the
complicated accounting required by the system
and over them is the railroads board composed
OF the abIest railroad the country. working
Voluntarily for the government.
Al first the railroad pool represented a triumph Of
voluntary cooperation the part of the railroads
themselves. seemed a demonstration OF intelligent
aud patriotic public which should receive its
need Of appreciation from every American but then
developed the old greed as battling problems continued
TO arise the sharing Of profits for instance and the
need of fnancing a big scale to provide adequate
Equipment need merely postponed by past meas
s lures
The government may be compelled soon to assume
fun responsibility for the railroads That may mean
public control with private ownership or it may mean
public ownership At present, nobody knows And no.
body need very about What we do know is that
whatever innovations may come in this field as in
others, VIII be natural and inevitable We will make
the grade somehow The president wise in his posi-
ton. too that there shall be profteering or
the part OF the railroads with government subsidy
That old degree of that railroads have
kept mp while pretending patriotic cooperation for the
seeming purpose OF forcing the subsidy has appar-
emily not been taken Over-serously-or rather has
and has failed