Evening journal., 1918-05-17
FRIDAY, MAY II, 1918.
WHAr IS THE rrruRE oF THE RNLRoAns2

WHAT IS THE FUTURE or THE RAILROADS.?
NONsIDERABLE interest has been aroused IN pongr'ss
~ and elsewhere by Senator Warren Hardings predic-
zion that the passing Of the railroads into the hands
Of the Government end TO private control OF
railroad enterprises in this country. The senator de-
ciared recently in commenting upon the way the form
of our Federal Government being altered under the
guse Of war necessity
II have already said this floor that in the name oil
war we have seized the transportation lines Of this
country and stake my reputation as prophet OF as
an observer Of American tendencies and say now hat
you will never seen them returned
Recently prominent railroad man made the state
ment that consistently, The United states must an
thorze rate increases 90 Offset any advance IN wages
may conoede II this is not done the railroads VIII DC
working at loss which must be made up from taxation
such course would at transfer the support OF the
carriers to tho people and would destroy the system
whereby revenues from railroad operation pay the COSTS
OF course an In freight rates VIII be PAID py
the public just much as would taxation to make up
losses of operation although the burden would not be so
widely distributed
It is recalled how loath the Administration was 70
accept the Congressional amendment TO the railroad
control bill which limited that control to eighteen
months after the cessation Of the since the passage
OF that law the drecorgeneral Of the railroads mas Deem
confronted with tho problem Of advancing wages IN
creasing freight rates, paying dividends and showing
credltable balance sheet all without playing one class
against another. It is tough job. Golfers writer,
some time ago, published interview with Director
MeAdoo in which he was quoted saying; III during
the period OF Government control the railroads are at
all well managed and show marked Improvement over
the old system the American public would not want the
roads TO so back 10 private management But II the
roads are IN managed that s II attempts arc made by
railway ocials so to the roads that Government
control is shown in a poor light do they suppose
won't have common sense enough 10 sec II or send
enough TO change them as well the condtons7" 1t
vsas pointed out at the time This statement was pub
sbed that the director stood TO win either way. Good
results would be credited 70 him; his failure to show
sood results would be blamed TO tho ohcias Of the
railways.
Recently Senator sherman Of Illinois, discovered IN
the railroad bill an attempt artihcialy 20 add TO RAILROAD
revenues 80 that the receipts might be increased by an
amount estimated aggregatlng nearly S2OONOOU
without an apparent in rates. In case II was
proposed to charge 81 for placing on an industrial
siding additional charge Of 81 for spotting IT, or
placing It particular point the siding, service
which, under private control included in the freight
charges addition to this the States earnestly
requested by Mr. Adoo 10 refrain from taxing the rail-
roads within their borders.
Possibly the railroad above referred TO has un-
consciously the situation for Mr. McAdoo by h.'
statement; unless rates are increased the railroad
lines win reach position where the companies will no
want them back. II they operating at loss, due &
the divergence between the Governments wages ant
rate policies their return would force the compane
into bankruptcy" II Mr. McAdoo wishes to keep tn
roads after the war there is his cue provided he wi
accept the responsibility involved