Evening journal., 1918-05-06
1t fhe Railroad Managers Were
Sure of Getting Fair Rates
Then the Forehanddness of Would Be the Rule With
All the Carriers
IFrom Pc New York sun.l

Lsokawanna, the sun pointed out in
an editorial article on May /, by con
trsoting for rails in time OF depression
realized such a price advantage that
upon delivery In time Of industrial ac-
tlVity rails replaced sold a. SCRAP
Drought S3z,29932 more than the new
rails cost.
Commenting upon this incident the
sun suggested that not all railroads
nave been so wise and that not all have
Deen financially in position to exercise
such wisdom.
This episode illustrates a highly i'm
portant aspect for us 10 consider in de-
terminlns what sort OF railway system
the united states shall have upon the
termination OF government control.
You could doubtless specify railway
managers who in the years preceding
i9O' hao the resources and the credit
70 make additions and improvements
Wnen labor and material were plenti-
iul ana yho did not maintain that nol-
10y. Undoubtedly the fun benefit TO the
country from policy OF fore-handed-
ness would require some regulatory
prodding. Some railway managers. Ike
the run OF men. are more tlmid than
others and there is use for q discourager
of hesitancy.
On the whole. however. I believe that
. substantial proportion OF those roads
tnat were able before 1907 made large
plans well In advance with a view to
taxing advantage Of the market and OF
osher favorable circumstances In time
OF slack trafllc. and that subsequent TO
10 large outlays In years OF low rail-
way earnings tended to spread wider
ana wider among managers.
Hardly any one concerned can be
cited who would not be benefited II
transportation facilities could he cred
lied and extended when general busl-
ness Is dull. Most vital OF ali Is the in
terest OF the wage worker. This an
plies In some degree to men actually
engaged In labor for the railroad IT,
self, either upon track and structures
or IN the construction and repar shops.
but much the larger number OF those
euected are employees Of Industrial es-
adjustments whose goods are consumed
by railways. and employees Of mercantile
concerns whose trade depends upon the
Industrial payroll In the communities
where they are located. Indirectly the
prosperity or adyersity Of these people
nushes or dries I'D the channels OF
all Industry and all trade, so great a
proportion railway purchases are OF the
country's aggregate transactions.
Since 1907, the date when Congress
gave the Interstate Commerce Com
mission authority over rates. and espe-
cially since 1910, the date when Con
gress sdded power to suspend rate ad-
Vances pending Invest CATION. business
In these special industries and commu-
nitles has been done In extremes OF
feast or famine. BY a coincidence rig
idlty OF rates was introduced at Tie
exact moment when the railways had
about reached The limit in major econ
omies TO Offset advances In wages.
Hence all managers save a few Ike
President Truesdale Of the LackaNanna
entered upon an era Of living from
hand TO mouth. Petitions for new
rates were considered IN the light. OF
past figures instead OF IN the nght OF
future needs. 10 was quite as possible
for managers under the new dlspensa-
tion as under tie old TO draft projects
for expected increases in traffic but no
man was wise enough 10 predict wheth-
er or not he would have the funds for
the purpose
To the wage worker the result was
an aggravatlon Of one OF The most pain
ful phases OF modern life. When traf-
flc after a depression resumed its |
growth and railway earnings increased, /
a largo number OF roads simultaneously /
made demands upon the equipment I
companies, and they IN turn upon the /
material and appliance purveyors. Facil- /
tiles had 10 be obtained in a hurry. be- /
cause here was the tonnage and not I
enough advance provision had been
made. Equipment material and appl-
ance concerns built up their organlza-
tions as rapidly as they could and for
a greater or less period large numbers
Of men were steadily at work in the
enjoyment Of high wages and earning
10 live on a scale corresponding Then
came the slump. General business sud
1enly fell on, and these hundreds Of
thousands of men employed In equip
ping the railways were thrown out Of
heir Jobs. They were exceedingly
ucky TO flnd work elsewhere. since the
'erY circumstances which had toppled