Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-10-18
determined to have. is the destruction, root and branch,
of the German military power.
RUNNING THE Ii RAILROADS

IL 1871 Fs&EN"ET&
Before the war the railroads Of this country were
operated a. private enterprises. The history o. railroad
development in this country. like thu history Of every
other great enterprise. 10 a oheckered one. At the begin-
ming the railroad was regarded by the masses with the
suspicion with which the masses commonly regard enter-
prises involving a departure. from established customs.
The term masses used in this connection, means the
great public taken as a whole. and includes not only those
OF small means and obscure station, but the great bulk OF
the business men Of the country, those who have at their
command comparatively large sums with which 1t would
be possible for them to finance understandings, OF consider.
able size.
Capital with which to build and equip railroads was
difficult to obtain. The, people did not believe it possible
that the transportation business of the country could sue.
cessfully be transferred from the wagon road and the
canal boat to iron rails, and they were reluctant to risk
their money In the promotion. Of such an enterprise. There
were individuals who had faith There were those who
were willing to take a chance. Little by little money was
found and railroads were built. Fortunes, large for those
early days, were made. and other fortunes, equally large,
were lost. Gradually the business grew. Experience
taught the promoters where danger lay and where safety
was to be found. The constructive genius, the specula-
tor. the enthusiast, the visionary and the rank scoun.
drel all found a field for their activities in the new enter
prise, and out Of the enterprise. the faith, the prudence,
and the ignorance Of our people the great railway systems
Of the country were evolved. y
From an enterprise Of doubtful utility the railway
came presently to be recognized as q public necessity. Its
own existence had developed new needs which only itself
could supply. and there began the contest between the
conception expressed by a Vanderbilt in the famous
phrase: 1.-THE public be damned" and that Of the rail-
roads as a public service. to be controlled by the public
in accordance with public need.
With the recognition Of the new and just conception
came the application Of control in a manner which men
laced the very eXistencA nf tho roilrooAs - hra,.~a <hn.
the very public interests which their regulation was in
tended to protect. Railroads were ordered to compete
with each other, to lower rates. to increase service, to ad-
vance wages. apparently without thought Of the fact that
railway service costs money, and that only out Of the re-
ceipts for service could service be maintained, and wages
paid. With. their revenues brought near, and sometimes
actually below their necessary demands for operation ana
fixed charges, many roads found it impossible to accumu-
late funds with which to extend their lines and. maintain
their property, and with no betterment Of this condition
in sight they were unable to borrow for contemplated ex-
tensions. Very many roads were forced into bankruptcy,
the process being fastened in not q few cases by incom-
|petence, extravaganza and downright dishonesty on the
part Of those responsible for their management.
When the war came we had reached a sounder uh-
Outstanding Of the facts in the situation than had ever
obtained before. We were beginning to understand some-
thing OF the utility of attempting to force competition in
a business which. from every standpoint of public interest,
fought to be conducted as a unit, and to see that with CO.
operation and coordination under rational public control.
competition was a useless and wasteful factor. We had
come to some understanding Of the fact that when, with
due economy and efficiency in management, a proper re-
lation had been established between income and expendi-
ture, additional costly service, and additional wage charg-
es were possibly only through additional charges for ser
vice. And there had grown up a rather well-defined opin-
ion that If the railroad companies were to extend their
lines and improve their service, to keep pace with the de-
velopment Of the country and the increasing demands of
the population. they must be enabled to raise money with
which to pay the bills. - < ~
Then came the war, and under the pressure Of war
needs 1t became apparent that the whole structure Of RI
valries and competitions which we had labored so sedu-
lousy to build and perpetuate must be swept away and
that in its place must come unity Of purpose and direc-
ton. There was no. time to evolve this unity through nat
ural processes, and the government, perforce, took con-
troll. The governments first step was to abolish thA COM
petition which had at one time been a fetish with US. Had
that been permitted and enforced under private manage.
ment, enormous economies would have resulted. The next
step was to advance wages. The next was to advance
rates in order to raise the money with which to pay the
increased wages. Today the government is operating the
railroads, and today the American shipper is paying high
er rates on his freight. and the American traveller Is pay
ing more fare per mile for his ordinary travel, and Inn
menseiy more for his sleeping car accommodation, II he
uses them. than he did under private management. And,
Notwithstanding the economies which ought to have re-
suited from the elimination Of competition are the cur
tailnent Of service. no funds are being accumulated for
the extensions which will assuredly be needed with which
to meet the growing needs Of this growing country.
AWAY WITH BOTH AUTOCRACIES
Autocratic government in itself is a thing not long to
o.. endured by an intelligent. ana self-resbecttng people.
It is true that an autocratic government may take on
such q form that the odious features which are really In
herent in nAre somewhat disguised. The ruler may be 60
wise and so benevolent that neither hs nor his subjects