Evening journal., 1917-12-01
AID FOR RAILROADS
URGED As US DUTY
National City Bank FavorS
Credit, but Not Govern
ment Ownership
SAY LATTER IDEA
Is ONLY THEORETICAL

NEW YORK. Dec. IA broad con-
structive program FOR the transporta-
ton system Of this COUNTRY the Co
operation Of an interests concerned. the
taking over Of the weak by the strong
10 the benefit Of both. and possibly
the extension Of a grant of credit by
the Government. but not Government
ownership. are few Of the suggestions
contained In the December circular ot
the National City Bank on tho railroad
problem. The circular says I'm part
In brief the situation In the last
ten years has not been such as 20 at
tract capital TO the railways in tho
amounts required 10 enable the com
panics TO plan for the future In an
adequate manner They have borrowed
large sums for immediate needs, but
traffic grows very fast in This country
and 10 make proper provision for ii.
and do so economically expenditures
should he made In advance of immedi-
ate needs.
such expenditures cannot be made
unless present earnings show reason
able surplus above current require
ments Tho upshii is What in the face
Of a great emergency the railway facili-
ties Of the country are not equal iO the
demands upon them. Moreover with
the Government taking all ihc capital
in sight and with construction and
operating costs mounting higher and
higher and higher the outlook for an
adequate program of development in
the future is not encouraging.
THE objection to a proposal for Gov
erument assistance 20 the roads is that
In some quarters 70 will stimulate ihe
agitation for Government ownership
and management 10 will DE said that
II the Government Is to aid the roads
10 should own them. but that doe. NOT
necessarily follow. 10 is not suggested
that the Government should aid ine
companies for the sake Of their share
holders, but because the railway prob
lem has become national in IFS scope
and interest. because the government
By It's exercise of control over charges
Us an essential factor in it. The atti.
tude OF the Government affects thf
ability Of the companies 10 finance
themselves on the sale required.
"The argument for Government own
ership Is q purely theoretical one. j
assumes that the roads will be operated
by the Government AS efficiently al
. under private management, hut th
conditions are against that result. Their
is a mystery about the powers of ih
Government which is misleading II
many people The Government has th
power that goes with authority, but
does not have the ability 20 operate 4
farm, q factory cor "a railroad mor
economically than private owners.
ION the contrary, The condition
J under which public business must b
r done place Government operations at
- disadvantage There Is division %
D authority and responsibility and wan
4 Of continuity I'm policies which proven
b. the best results. The final authority j.
with Congress. a constantly changin
: and cumbersome body, and cvcrybod
J below Congress works under limila
tions.
In short the qualifications of Oh
Government are much better for super
vision and criticism than for initiatiY
and management The Government
oversight and authority are needed Il
dealing with the railway situation, bu
} 20 Is not necessary for the Government
ITO assume an the functions Of a pro
prietor. The most economical and sat
: isfactory results will Doe gained hy com
bining public supervision and co-opera
iione with the neyibiliiy and enlcienc
. that are best obtained under prlvat
7 administration