New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-06

| try was drawn into that war. it has
become increasingly clear that uni
fcation in the operation of our ra J.
roads during the period of conflict IS
indispensable to their fullest utiliza-
ton for the national defence and well
fare. They must be drawn, like the
individual, from the pursuits OF peace
and modified TO win the war. inns
unifcation can be effected in ore Oh
two WAYS. and we see but two.
Operation as a Unit
"The first is operation as a UNI. by
the carriers themselves. In the ehorV
along this line initiated early IN TINS
year they are restricted by state ana
FeGer raj law, and the idea is the an
tithegis Of that which heretofore has
controlled their activities. Their past
operations have been competitive, al
though. since the Hepburn act, and
especially since the Mann-Elkins act,
the prescription BY this commission oil
reasonable maximum rates and charges
for rail carriers subject to the act,
and the exercise OF its power to re-
quire abatement of unjust discrlmi-
nation or undue prejudice, have IN
great degree restricted that compe-
tition TO the field of service.
"But whether or not perpetuatlon
of the competitive influence is desir-
able under a system OF government
regulation. it is apparent that opera
tion of our railroads as a unit involves
the surrender by each of exclusive use
Of terminal facilities. surrender at
times of profitable traffic to other car
rers, and acceptance of less profit
able traffic, with resultant loss of
revenue. wherever economy of move
ment or greater freedom from con-
gestion would dictate that course IL
the various carriers were in fact but
one.
Possible Operation by President
"Thc alternative is operation AS a
unit by the President during the period
of the war as a war measure under the
war powers vested in him by the Con-
stituton and those which have been or
may be conferred by the Congress.
"As bearing upon the alternatives
thus stated il will be recalled that since
the beginning Of the war in 1914, the
traffic offered to and moved by the rail
roads has increased enormously. Prior
thereto there had been occasional pc
RODS Of car shortage, usually restricted
in territory, but it may be said that
from 1907 down to 1915 the number of
cars in the country exceeded the de
mand. This subject is treated in our
annual report.
"The sudden, unforeseen and UMPIRE
cedented demand for transportation
occasioned by war placed a strain upon
the facilities and equipment OF the
railroads which they were not and arc
not prepared TO meet. There was Great
ed a need for immediate and extensive
additions to existing facilities and
equipment. This need is coincident
with demands upon capital. as well az
upon labor. manufacturers and natural
resources. such as we have never
known. Important additions and bet
terments will require new capital.
Railroads Proposals
"The railroads propose essentially
that we allow increases in freight rates
OF such magnitude that their increased
earnings will attract investors, by divi.
dends declared or by the prospect OF
dividends. in competition with securl-
ties issued by Federal. state and NUM-
cipal governments, public utility cor
porations and industries organized and
operating primarily for gain as dis
tinguished from public service. Some
OF the latter have yielded large profits
since the outbreak OF the war.
AN attempt 10 secure new capital
would come at a time when the rising
cost of living has made il difficult for
those dependent for support upon their
earnings 10 meet their current eX-
penses: after the absorption by Amer
lean capital of two-thirds Of the
American securities owned abroad
prior 20 August /. 1914, the railroad
securities returned 10 this country
alone amounting to from sl.700 900 .0O0
TO $4,000, 900 900 after financing in this
country of loans TO our present allies
and after subscriptions for almost &c.
600. 900 900 for Liberty Loan bonds.
even il the railroads have more
money the Immediate construction OF
necessary facilities and equipment
could not readily be effected. Labor is
scarce and the cost is mounting. So
with materials and supplies. car and
locomotive builders are largely en-
gagged in producing equipment needed
abroad, both by our allies and by our
own forces in the conduct of the war.
"The steel and other materials needed
for such constructions, as we'll ns the
labor. arc also needed in other phases