The Washington herald., 1917-08-27
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Counhy's Best Newspaper.

WHICH III lue WOTlQ OF undnCc u eQudl
to the knowledge that Washington
possesses. that anything he may say
for publication is read with interest
and usually occasions much comment.
Mr.. Vanderlip is quoted as having said
that the first steps. from which there
will be no retreat. toward the gov
ernment ownership OF railroads have
teen taken, and that in all probability
after the war is ended. the people Of
the United States. through the gov
ernment, will be in complete owner
ship of the railroads. This prediction
Is made by Mr.. Vanderlip with great
er assurance than have other predie-
tions of the same kind been made
which have been privately offered BY
men of large affairs. Yet when the
attention of one OF these men was
called to Mr.. Vanderlip's prediction he
said that there is no doubt that the
perfect coordination and cooperation
of the railroads OF the United States
and the symmetry of these operations.
whereby great results have been OBJ
tsined, will impress the people with
the economic value of such MANAGE
ment and control as now characterize
the railway systems OF the United
States. although that is done solely TO
aid the government.
But, this man added. there are sew
eral other points of view from which
a study of the present situation and
the relation OF that situation to gov
ernment ownership OF the railroads
must be considered. There are now
working for the government ten or
fifteen railway managers who are
numbered among the master brains Of
railway direction. Several Of them re-
ceive a salary of at least $4,000 from
their railroad companies. Others re-
ceive less, and yet the salaries paid
TO them are greater than the govern
ment rays to any one In its service
excepting TO the President.
Daniel willard, Howard Elliott,
Fairfax Harrison are presumed TO
be $4,000 men. and they have
earned their salaries in the opinion
of their directors and stockholders.
But these men and others are now
working for the government for
nothing. They will continue that
service until there is no longer
need for it.
Would the government. this man
when the railroads pass
into its possession, be willing to
pay anything like the salaries
which these men OF unusual ability
can command in railroad or in
other service? That the railroads
of the United States were able un-
der the direction of a little group
of railroad managers who are Civ
ing their services for nothing so
swiftly to accomplish the wonder
full results they have secured is in
itself a tribute to the ability of
these railway men. How different
their activities so far as results
are concerned from anything which
followed the discussions before and
decisions by the Interstate Com
merce Commission. Today this little
group Of railway men is more pow
erful than the Interstate Commerce
and its power has been
swiftly and accurately concentrated
10 secure good results.
The best minds in the railroad
world are confirmed in the view
that the ideal relation Between the
railroads and the government,
which would permit great freedom
To railroad managers accompanied
by sufficient publicity and adequate
as well as highly expert govern
ment regulation. It was reported
that President Roosevelt at a time
when it devolved upon him to fill
a vacancy in the Interstate Com
merce Commission said to those
who were urging him to appoint
railway man that he
presumed they would be glad IL he
would appoint James J. Hill a mem
J. nvv
was instantly made II you were
to appoint Mr.. Hill a member Of
the commission and IL he were to
accept he would bring to that body
the same energy. the same accurate
tuitive judgment OF conditions
which enabled him TO build up
from nothing one Of the greatest
railway systems in the world"
President Roosevelt did not take
issue with this statement.
The best opinion here seems to he
that instead OF government ownership
OF the railroads there will follow as a
result of the experiences through
which the government and the rail-
way managers are now passing, the
repeal OF certain statutes and the
and in place of them a broad and
comprehensive statute or possibly a
constitutional amendment whereby
exclusive governmental control OF the
railroads Of the United States may be
secured, but the management Of the
railroads will remain in the hands Of
the officers elected by the officers and
Thereby Individual di-
rection could be maintained while the
public would feel assured that both
they and the railroad would receive
fair treatment.
Judge Lovett, to whom has been
given authority TO control shipments
OF coal, has been able. by reason of
that authority. to give directions to
nearly fifty railroad companies which
they must obey as faithfully and will
obey as loyalty as though they COM
prised a single system of which Judge
Lovott was the executive head. But
1t is the extraordinary ability Of Judge
LOvett, his long and detailed expert
cnce, his triumphs in railway mana ge-
ment, which justified the paying to
him of one of the very large salaries
of the day, which made il possible
upon the instant to coordinate the
services of these railroads to that
within day or two he felt assured
that all danger of coal famine. espe-
cially in the Northwest would be
ended.
When the late George Westinghouse
was one of the trustees. former Presi-
dent Grover Cleveland being another,
to whom was committed the RESPONSE
bility of the affairs of the Equitable
Life Assurance Society, he was accus-
toned to say to his friends that he
could not see how there could be COM
plete naturalization of this society I'M
less the disposition OF the policy-hol-
ders was changed. For he had learned
from many policy-holders that they
regarded the great accumulation of
resources as belonging to them and
not to the stockholders. They would