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

TT is admitted that the situation
in which the railroads Of the
Il country find themselves consti-
tutes a problem Of national import
There seems to be no difference OF
opinion in this regard. The varia-
tions in sentiment are concerned
rather with the remedy. The advo-
Gates of government ownership OF
railroads profess to find themselves
| in the delectable position Of having
proved their contention that tho
transportation task is too great for
private enterprise if adequate ser
vice is to be given. The advocates
of private enterprise point resolutely
TO government interference as the
cause of all the trouble, and declare
that il greater freedom is not a.
lowed the road. government owner
ship is perhaps the only alternative,
Objectionable as it is. Railroad man
ayers cannot see the continuance OF
service without new capital, which
the restraints Of innumerable regu-
latory bodies make it more difficult
to get, and the control of rates makes
more and more costly If it can be got
Certain experts and statisticians
point to the rising net earnings as
showing the appropriateness Of all
the arguments, but they seem to for
get that while the "curve of net rev.
enues" and the curve of operating
cost" are both running upward, the
"curve Of investment" is fiat. In other
words, capital investment Is not
moving with the others, which means
that extensions arc not only not keep
ing pace with the extensions of in
dustry and agriculture, but that
equipment Is wearing out, with small
chance of the requirements needed.
Herein lies the great force of the
argument for increased rates as the
remedy Of the moment--the remedy
which will be Immediately effective
to prevent impairment Of service at
a time when the railroads are finding
the greatest difficulty in meeting the
demands upon them.
Arguing in
A Circle
In the meantime, while all these
arguments are showing a disposition
70 move around in a circle, great
things are happening in the economic
world. Changes wrought under the
dire compulsion of war necessity
have not yet impressed themselves
indelibly on the economic status or
effected a permanent change in the
economic order, but the prclongation
of the war may force the recognition
of new ways and new rules in ad-
ministcring the enterprises which
lend themselves TO what is known as
public service. The force of the
methods coming into use may soon be
felt by enterprises not now classed
among those contributing anything
in the way Of public service and ex-
ert a potent influence on the ways of
securing profits, although probably
not on the size Of them. Underlying
oil this is the matter of price and
the growing disposition, tendency or
necessity to override its fluctuations
ard tho influence of the law Of sup
ply and demand.
1t is a new idea in the scheme Of
things that the one who has should
not get for it all that he can. But
whether or not il is new and strange
ard unprecedented, it is recognized
that, under existing circumstances at
least, the rule shall not apply. No
sooner is there sugar shortage or a
coal shortage than efforts are made
BY duly authorized agencies to pre-
vent the inordinate resultant demand
from exerting the customary inhu.
encc on the price Of sugar and coal.
The danger Of famine, near or re-
mote. Is an incentive which makes for
the disregard Of precedents, and fam
inc Is no longer defined as lack Of
mere foodstufYs. The notion has been
extended so that it is no longer
thinkable that one nation may safely
ond legitimately enrich itself at the
expense Of another. The world is