The Washington herald., 1917-12-04
RAIL SITUATION
VITAL INWAR
Managers, Reluctant to
Talk, concede Gravity Of
Problems, Says Holland.


Problems, Says Holland.
Railway managerA notably those
who are members OF the Railway
War Council, 20 called. hesitate and
frequently decline to speak for pub
location upon the railroad situation.
In private conversation with those IN
whom they have confidence they are
more out-spoken. all Of them making
Il clear that they look upon the rail-
road situation a. possibly the most
Important immediate factor In war
preparation. They are also persuad-
ed that whatever may be done now
To relieve the situation will remain In
part At least II not entirely, the law
Of the land 20 far ~ the railroads OF
the United States are concerned
Frank a Vanderlip and President
Ripley Of the Atchison railroad. have
been quoted as saying that it 10 their
conviction that government owner
ship u inevitable. Quotations OF this
kind, however, should be accompanied
Win ulouluCo VI C1PAaAA1NOAy ASAAeA ~
Mr.. vanderIip does not believe that
government ownership Is inevitable
unless certain factors and influences
that now prevail are nodded and un-
less the law Of the land Ii 30 perfect
ed a. to make possible excellent CO.
operation between the railroads and
the people on one hand and on the
other equal cooperation with the
railroads on the part OF the people.
President Ripley IL suspected OF bas-
ing In part his forecast Of probable,
II not inevitable, government owner
ship Of the railroads upon the rela-
tfon OF tia vast body II railway en-
ployes Of the United States to the rail-
roads. II that puzziing proposition
can b satisfactorily met then the
probability of government ownership
Of the railroads might become re-
note.
On ths other hand. the suspicion is
becoming each day stronger and
stronger that the able men whose in
nusnes dominates the various rail-
road employees unions are now occu-
pied win such labor organization
strategy a. will make inevitable gov
srnment ownership, for some, II not
an Of these leaders are convinced that
under government ownership labor Of
ell kinds throughout the United States
would sooner or later become a pre-
dominant factor in the legislation
adopted by Congress whereby gov
ernment ownership can be perfected.
Question of Pooling.
Pooling Is no new thing. It was
adopted nearly seventy years ago by
John N. Forbes, of Boston. Mr..
Forbes was. II not the creator, at
least the real builder Of the Michigan
Central railroad. The volume of
transportation which was offered to
his road after Mr.. Forbes put the ter
minal at Chicago, was so great as to
prove an Irresistible temptation to
New York capital Mr.. Forbes OBJ
tanned his capital IN Boston. This
New York capital was invested In the
building and operation OF q railroad
whose eastern terminal was at Buff
falo and the western one at Chicago.
II ran almost parallel with the Mich
igan Central, although its line was
south OF Lake Erie. while the Michl
gan Central was north When the
road was completed its managers
were convinced that competition was
the life OF trade for railroads as well
as for other business. Competition
upon a staggering scale was main
tanned 1t went so far that 1t became
evident that it might bring both roads
to bankruptcy.
Then Mr.. Forbes suggested the pool.
His plan was adopted. Competition
that was suicidal ceased and both
companies became prosperous. At the
time Of the civil war it was necessary
to perfect certain cooperation between
the railroad companies which involv-
ed . form Of pooling. It was accepted
by the government without protest
and by the public as = reasonable
thing to do.
Years later the POOL was again
adopted in order to put an end to So
called out-throat competition which
the trunk lines had maintained for
some years The plan went so far
as to allow differentials to certain of
the railroad lines running from New
York or Boston to Chicago and other
points IN the West Congress. sup
plemented by the decisions OF the Su-
preme Court put an end to this method
Of cooperation. Yet at the time the
law was passed there were some who
asserted that IL the government regu-
lated or supervised the railroads and
had authority over rates then there
was no reason why pooling should
mot be permitted.
More for Supervision.
Now suddenly. with almost the
sviftness Of lightning. the govern
ment and railway managers realize
that some method of this kind must
Be adopted, subject to government su-
psrvision and regulation. II the rail-
roads are to meet the sxigencics OF
the war situation. But IL 1t be adopt
ed and works well. as in fact II has
already been partially adopted with
most gratifying results, then. railway
managers believe, the object lesson
thus taught will persuade the people
and Congress that 1t il not only the
wiser but the inevitable part to per-
NIT these methods to be continued in
days Of peace. That may. railway
managers In private confress. elimi-
nate what they regard as the danger
Of government ownership of the rail-
roads, for there Is not q railroad man.
ager In the United States, and few
II any leaders Of industry, who are
not convinced that It will be much the
better part for the railroads to be op-
Grated a. heretofore by private au-
thority. subject to supervision. and
wise regulation under the authority
Of the government. There are prob
lena many Of them very dificult to
solve. before government ownership
can Be accepted as the true and In
fact the only remedy for the railway
situation IN the United States.