Denver labor bulletin., 1918-12-28

II cannot De 100 OILell Ut lOO GILL
phatically stated that what we have
now is not the public ownership of
railways 1t is government control.
The control is more complete and far
reaching than anything ever before at
tempted in this country-but it is not
government ownership.
Public ownership would mean not
only that the government would con-
troll and operate the roads, but it
would also draw into the public funds
the earnings derived from the owner
ship of the roads. As it is, the gov
ernment is compelled to carry all the
burdens of control and operation and
does not get the advantage of the
earnings of the roads.
Not only does the government
shoulder all the burdens and respon-
sibilities of control, direction and op-
Grafton, but it has also assumed other
and even greater burdens. For ex-
ample, it has assumed the terrific bur-
den of rehabilitating the roads, of re-
constructing and repairing the lines
and rolling stock, of making exten-
sions and Improvements of the sys-
tenn that had been SO neglected and
plundered for years by private owners
that they were almost completely
broken down. For this work of re-
habilitation the government has al
ready advanced or arranged to ad-
vance 5000, ,OOO, 900 to the various rail-
road companies.
Moreover, the government upon
taking control of the railroads had to
shoulder another very serious burden
that the private owners could not han
dle-the labor problem. A very Sc
rious situation confronted the rail-
roads of the nation before the govern
ment took charge The railroad en-
ployes were very insistent in their
demands for increased pay and better
conditions. The companies were equal
I ly determined not TO grant the de-
mands A disastrous strike seemed
inevitable. The government inter
vened, raised the wages and solved
the problem.
over $500 ,OOO, 900 Of the peoples
money has gone into these increased
wages. That in itself is a splendid
achievement. In the widest dream
/ that the writer has indulged on this
subject during the last twenty years
I in advocacy of the public ownership
of railroads, he has urged that it
would be possible to raise wages
/ 500, 900 a year. Mr.. McAdoo has
gone US far better and made it three
times that amount.
Great Burdens Assumed
/ And still further the government
has assumed another burden greater
/ by far than any of these-it has guar
anteed the owners their income based
upon the average income for the three
years period preceding the govern
ment control The owners of the rail-
roads are assumed that they have not
need to worry-that they would get
their earnings just the same as be-
/ fore. And here again the govern
ment has assumed burden under
which private ownership was break
ing doyn. II is very serious ques-
tion whether If private ownership had
I continued another year, the railroads
could have paid anything like the divi-
dends they had before. 1t is practi-
cally certain that they could not. And
many an investor in railroad stock
was very nervous about it. The gov
ernment steps in, shoulders the whole
responsibility and with a stroke OF
the pen guarantees the whole busi-
ness. That means over q billion dol
lars year of interest and dividend