New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04

railroads Immediately the railroads
became indispensable instrumental.
ties for the prosecution Of the war.
The change in attitude, however,
could not wipe out the long continued
policy of repression. 1t could not
restore the credit of the railroads. II
could not raise the price Of their Sc
curities. 1t could not make instantly
attractive to the investing public a
type of security which had been
frowned upon and officially de-
nounced as probably watered if not
actually dishonest. Even if the credit
Of the railroads had been destroyed
it could not be translated over night
into new tracks, enlarged terminals
and increased equipment.
1t was necessary, therefore, TO
make the best possible use Of the
facilities in existence. The railroads,
at the sacrifice Of everything in the
way of self-interest, gave themselves
to the new task. They constituted a
joint committee, called usually the
Railroads War Board, and clothed
it with practically complete powers
to cooperate with the Interstate Com,
merce Commission and the Federal
Trade Commission. There was con-
siderable latitude allowed under this
arrangement. It is of Importance in
the history Of railroads and Of the
war that on April II last 631 of them
agreed with the government Of the
United States, with the governments
Of the several states and with one
another" that they would Coordinate
their operations in a continental rail
way system, merging during such
period all their merely individual ard
competitive activities in the effort to
produce q maximum national trans
portation efficiency" For this pur-
pose trey agreed 80 create an or
ganization which shall have general
authority to formulate in detail and
from time to time a policy Of oper-
alton CT all or any Of the railways.
which Lolicy when and as announced
by such temporary organization shall!
be accepted ard earnestly made eff
fective by the several arrangements
Of the individual railroad companies
here represented"
All the Advantages OF
Government Ownership
BY this action in placing all their
facilities under the direction Of a
single committee of five these 63l
railroads become, to all intents and
purposes, a single system. At the
same time the service of this greatest
of railway systems was placed unre-
servedly at the service of the govern
ment. The government is, therefore,
as well equipped as if it owned the
railways, and the railways are very
much better managed than they
would be if the government actually
owned and operated them
This action on the part of the rail-
ways was entirely voluntary. No
consideration or compensation was
offered by the government. There
was instant assurance that military
movements would be cared for and
that transportation efficiency would
be increased SO that commercial
traffic would not suffer. despite the
strain caused by military operations.
The physical results arc well known.
In the calendar year of 1916 the rail.
roads handled 81 per cent more
freight than in 1915. The increase
for 1917 is estimated at 20 per cent
over 1916, making the increase in
freight moved in 1917 over 1915
presumably a normal year-5l per
cent. This accomplishment has
brought into use only a negligible in
crease in trackage or equipment.
Naturally first criticism will be
that in these figures is proof of rail-
road inefiiciency in 1915. 1t may be
answered briefly by saying that il
there had not been greater efficiency
in 1916, advancing wages, prices and
taxes. together with rate regulation,
would have left them all bankrupt.
The obvious reason for the improved
efficiency in 1917 is that, for the first
time. they had an opportunity to use
their facilities in the most economic