New-York tribune., 1918-01-13

iic anu duaSi-puDiic utilities. h.
lieve in such programme after NJ
ture reflection. / take this v;es
that there are deadly dangers in On.
ernment ownership, but that W.,
the government engaged in reo,,,.
tion, as it must be, I feel that y.
must choose the least Dangerous
That is, government operation ~.
ownership. The sentiment in th,.
direction has grown steadily. As,
bricklayer would say, settlement =,
the strike is Just another course !.
the structure.'"
Other labor leaders feel that ~.
loss Of their power Of collective h,,
gaining would not be compensate
by the increase in their political in.
fiuence, and by the further fact thu.
it is certain that under governme,.
ownership there would be no NJ.
ferred classes Of railroad WORKER,
and that the wage scale would not +.
adjusted under duress Of strike
The Huge
Financial Problem
The tremendous financial problem
faced in any attempt to take ore,
twenty billion dollars worth of pron.
erty through the issue Of governmer.
obligations under the existing stra;,
Of war finance is overwhelming in i,
magnitude. The suggestion is freely
made by the advocates Of govern.
ment ownership that these roads
could be financed by the government
on low interest basis, which would
mean substantial saving in fixed
charges. But by what right could
the government force the exchange
of per cent and per cent obliea.
tions for those netting, say per
cent? Or, further, what right have
we to suppose that the addition Of
twenty billion dollars of obligations
10 our national debt could be made
without greatly increasing the inter.
est rate?
Already we have seen the interes.
rate on government offerings rise
from 3 Z TO 4 per cent in two rea.
lively small issues. With larger war
issues certain to follow, at possiby
increased rate, it is not thinkab.
that the government could fnalce
the purchase of the railroads at an
interest cost materially less taan
that now borne by the roads direct
The earnings allowed by the govern
ment to the railroads, under its rate
fixing powers, to-day show on
slightly more than a 5 per cent?
turn on their property Investment
1t is reasonably certain. in th
light Of experience, that such econp
mics as might be effected by co6rd.
nation would be fully offset by The
attendant increasing costs and
wastes of government operation.
Opportune Hour for
Railroad Statesman
What then, it may be asked, is the
solution of the problem? If private
ownership has failed, both when IN.
regulated and when overregula:ed
and government ownership gives no
+ promise of success, what plan Offers
, for meeting the situation?
Some weeks ago in these columns
l briefly sketched the history Of tie
, railroads of this country througi
E successive periods of constructs
competition and regulation, and e.
o pressed the hope that a fourth r
q 1iod Of cooperation might be davH
ing, in which the evils of the pre-
ceding periods would be eliminate
and fairer basis found for all d.
terests to rest upon.
It 1t ought not to be impossible fo'
d constructive craftsmanship to WORK
r cut some plan which still retains the
: merits of private ownership and prl'
vite initiative under proper govern
o ment regulation which will protecs
J. the public interest and meet the &C.
= mands for service made upon It.
q Various suggestions Of cen'fal
& Federal corporation, regional h0lu-
y, ing companies, government guaran'
l. tees and plans calling for pron'
20 sharing with the government aoo'e
l. a fixed return have been frequeh's
< made. Somewhere along this line o.
3 thought lies a rational solution !.
e. is very certain that the old days
Is enforced competition, antitrust lss''
If anti-pooling laws, conflicting s'sS
If regulation, wasteful competition o''
is plication of service viii not be ps''
E. mitted by a public alive to It's o''
" interests.
1t seems equally certain that sO.
l. ernment ownership would not De l.. *.
rt mitted if the public were equSD'
4 alive to its real interests. Inc h.'
1t has arrived and is row at haho ~
l. railroad statesman to suggest so'