Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1918-12-30
Republican Party to Settle
Railroad Problem


George Harvey in North American War Weekly
We were not of those who jeered when the
president confessed to congress that he was
stumped by the railroad situation. Indeed, we
found his frankness refreshing. 1t was his first
admission in recent years of inability to form
"a confident Judgment OF his own mind and,
as such, it constituted disavowal of that omni
science, persistently claimed for him by his
sycophants and tacitly sanctioned by himself
which has proved so mischievous. His recogni
ton of the fact that it was real problem
which could not be solved otfhand, but must
be studied, studied Immediately and studied
without bias or prejudice" by those directly re-
sponsible for its solution, particularly en-
couraging. So, too, was his consignment of the
whole matter to the legislative body, where
clearly it belonged. No matter if he did wish
to wash his hands OF the perpleXities involved
in order to free his mind for consideration of
personally delegated delegation to the interna
tonal conference; the net result of his passing
the buck to the direct representatives OF the
people was highly desirable. Hence our satisfac
ton. t.a...
And yet, during this busy week he found
time to analyze the complexities which-he had
just pronounced insoluble and reached definite
conclusion. How he did it and how he con-
veyed the information to Washington can only
be imagined. 1t may have been by carrier
pigeon or by wireless or-and this is by far hte
most likely suppostion-by telepathic sugges-
ton. Perhaps it doesn't matter. In any case,
we have Director General McAdoo's word for
it that "the president has given us permission
to say that this (his own) conclusion accords
with his own views of the matter" thus evidenc
ing the intention of the administration to adhere
to the director generals quite rigid determine
ton. even after the director general himself
shall have retired to private life, presumably
fortnight hence.
What, then is the program so precipitatey
evolved from the hitherto hidden recesses of
executive cogitation? But three courses, Mr..
McAdoo assures US, are open: CD Government
operation of the railroads for one year and nine
months. following a proclamation of peace.
which would mean in his judgment. government
operation for period in no event longer than
two years and three months; (2) the prompt re-
turn Of the railroads to private control; or (O
extension Of the period of federal control to
five years.
Although the director general strongly urges
the adoption of course No. 3, continuing federal
control to January l. 1924, the proposal need
not even be considered since congress has al
ready made plain the certainty that it will not
be entertained for a moment So pronounced
indeed, is the unanimty in opposition that no
measure to that effect is likely even to be intro
duced.
Course No g. threatening immediate return
Of the railroads to their owners without remedial
legislation. is equally unworthy of serious con-
slderaton upon both practical and moral
grounds The increase in wages granted by the
director general total the huge sum of $700000,-
OOO and, according to Chairman Sines of the
wage board, there are remaining over 100000
employees who will be included in orders to be
issued in the near future" thus making the "av-
erage increase in wages nearly, if not quite so
per cent, Dspite the increase in rates. now
incidentally in process of reduction, therefore.
present operation is producing an enormous
deficit. Obviously the throwing back of prop
critics upon their owners under such conditions
would be disastrous beyond calculation. Prob
ably not one-ffth of the railroads would be able
to meet their fixed charges. to say nothing OF
dividends, with the inevitable result that four
hfths or more would be plunged into bank
ruptcy.
What this would mean, in view of the bill
lions of railroad securities held by insurance
companies, trust companies, savings banks, trust
funds and millions of investors, one hesitates to
contemplate. Depreciation in values, of course,
upon scale so vast that, almost to certainty,
in the very time of its greatest possessions the
country would be engulfed in panic such as
has never been dreamed Of
Whether the president, in even tentatively
approving SuCn prOpOSluOfl, appreciated It's
gravity, especially in recollection of his pledge
of December 81, 1917, that investors in railway
securities may rest assured that their rights and
interests will be as scrupulously looked after
by the government as they could be by the
directors" may we'll be doubted; but surely Mr.
McAdoo was awake to its dangers and probably
for that reason, it was taken none too seri-
ously, but rather as goadng of congress into
action.
There remains, finally, course No. l. namely
Government operation for one year and nine
which would mean in my judgment, govern
ment operation for period in no event longer
than two years and three months"
Strange to say, Mr.. McAdoo discards this
quite natural procedure, prescribed by the ad-
ministratons own act, as wholly impracticable
Why? Because, in the first place. less than
three months of the present congress remain
an. insufficient time for providing permanent
solution" This, as statement of fact, is unde-
niable. Most assuredly the present incapable
congress will expire on March ;, greatly to the
is laborng under an hallucination if as it would
seem. he thinks the world is coming to an end
or legislation is going to cease simultaneously.
We fully agree that sane solution of this or
any other problem could not be expected from
this congress in three months, or in three years
or ever. That is why the people took our
advice and booted it out Of existence.
But there is another congress coming in on
March 4, when it should and probably must be
called into action. And that is the congress
which, Mr.. McAdoo seems to have forgotten,
was chosen deliberately as a reconstruction
congress and charged by the country with the
responsibility of solving this and all other prob
lens bearing upon readjustment. If it should |