The Washington times., 1917-12-07
AMERICA SHOULD
OWN RAILROADS.
SAYSUNTERMEYER
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end they will cost more without Civ
ing anything substantial in return.
Unless we allow ourselves to be
| fooled now, We can secure full value
for all we pay for the property that
We would acquire.
Il have carefully studied the vari-
Gus plans that have been advanced.
None of them is sufficiently compre-
hensive to be practicable or workable.
| All of them will involve vast expendi-
lures and untold financial commit
ments by the Government without
| corresponding returns. They will give
us the burdens and responsibilities OF
ownership without any Of the accom-
| panying benefits
Railroad Inspired Talk
There Is much loose talk. largely in
spired by the railroad interests, about
the hopelessness OF Government owner
ship from the standpoint Of efficiency.
but l cannot visualize a situation in
which more blunders or greater short
sIghtedness could have characterized
problem in financing and management
than have occurred. under the manage
ments under which we are now suffer-
ing.
Most Of our present troubles are, due
have starved and deprecated the prop
critics and have allowed their equipment
to deteriorate. Under a proper system
OF accounting a substantial proportion
OF the roads are bankrupt Dividends
have been paid by borrowing and out Of
capital
Rates Are Inadequate.
at is quite true that rates are in
adequate and that the Interstate
Commerce Commission has in some
respects been as short sighted as the
roads. The commission should have
asked for and been given and exer-
cised the power to make increases
conditioned upon the increased net
revenues being devoted to the i'm
provement of the properties and the
purchase OF adequate equipment The
people would not have opposed gen.
eral increases properly applied to
securing greater efficiency and
economy in operation.
at is folly for the Government to
finance the railroads when by. the
expenditure of more money 1t may
now own them and make them self
supporting and vastly more efficient
II we once get ourselves enmeshed In
this business Of having the Govern
ment furnish equipment we shall new
er get out OF il. 1t will get to be
running sore.
OId-Tine Fears invoked.
The people have been so long ed
ucated to take counsel Of their fears
rather than of their courage on this
particular subject that the old, time
worn argument that as a result OF
Government ownership the railroads
will lose the benefit OF interested
management Of these great properties
by those financially interested In
them. is still made to pass muster.
The management OF these prop
critics by their owners has long been
a thing of the past. except in one
or two isolated instances. They are
operated and controlled by men who
have, as a rule. little or no financial
interest in the properties and who
are, in effect highly paid clerks I'M
der the direction OF few great bank
ing houses. The latter dominate the
railroad situation OF the country
without having themselves any very
substantial financial interest In the
properties. This situation is brought
about mainly through the supineness
OF investors supplemented by Vici-
Gus proxy system OF voting stock
that il lying around included in
speculative accounts IN the OInces OF
brokers who merely register the will
OF the bankers at corporate elections
for directors.
No Loss Of Talent.
There is no reason why this prac-
teal railroad talent should not be
at the disposal of the Government II
IL Is willing to pay the salaries they
are now being paid.
The greatest difficulty I see al
the moment in the way OF Govern. |
ment ownership and operation arises
from the fact that Congress may not
be willing to allow these men to be
paid the salaries which II is neces-
sary to pay them in order TO secure
the highly specialized order OF ser |
vice requisite in railroad operation.
These are times when great events
ere following one another In bewilder-
ing stiffness. Courage and vision are
the qualities most needed. Old prob
lens must be approached from a new
point OF view This problem is sim /
pie IL we can cut loose from the old |
viewpoint Of prejudice against Gov
eminent ownership. Any nation that
can in eight months lay the founda-
lions for and set up q war machine
such as we are building need have no
fear of 30 comparatively simple q
problem as that of taking over and