The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-08
DRAW LINE BETWEEN
INTERESTS IN R. R.
troll OF Physical Property Is Being
More Sharply Defined.
NEW REGULATIONS MADE
Railroad Administration Feels That
These Matters Must be Entirely
Observation-Disclosures Slow to Realize
Priority of Government.

Washington. July THE line be-
tween the corporate interests ana
federal control of the physical proper
ties of the railways is being more
clearly defined and sharply drawn
each day The railroad administra :
ton believes the two interests must
be entirely divorced on the ground
that they are conflicting tnteresls
and new rules and regulations are
being promulgated to bring TINS aDout'
Railway officials. as the natural ex-
ponents OF private ownership ana con :
troll. have been slow TO accept the tact
that the government is actually In
contro, Of the properties and Will run
them on a unified basis as depart
ment of the government. They chung
to the opinion that the government
would take over superficial charge
Of the properties. but leave their
management and control to the orh-
Gals selected bv the corporated bodies.
Constant hammering and the eh'ire
severance OF their connections WIN
the control of the physical properties
of the railways has Jared them loose
from this opinion.
The railroad administration has
taken another step which cannot help,
but be painful to these earnest 7d-
vocates of private ownership and con-
troll II has served notice that they
cannot carry on a campaign against
government ownership or in favor OF
the corporate interests with the
peoples money. as paid into the rail-
roads during the period of federal
control They must use the corporate
funds to protect the corporate in
terests II they believe those interests
rrNrA1 govern M q n Z
agency or program
Now that the railways are under
federal control. the big question that
must be met and settled IN due time IS
whether they shall remain under fed
eral control through government
ownersfrips-or whether they shall pass
back under private control and con-
tinued privated ownership
Valuation on Lines.
One of the biggest phases Of this
question is the valuation to be placed
on the railroad properties of the Unit
ed States-how much the government
should pay the owners for their prop
critics,
Federal control Of the railways will
enable the government to place an
exact valuation on railroad properties.
1t will be the greatest possible aid
TO the interstate commerce commits
sion IN It's giant ISAk III f4AtiHk -
valuation on the railroads for the
government. and the railroad admin
fstration does not intend that tho
operatipg funds Of the railroads SHAH
be ~-~u 70 attack or defeat fair
valuation.
The first order and warning 20 rail
road officials that the corporate IN
terests alone must carry on any cam
paigu against government ownership
and pay for Il out OF corporate funds
has already gone out. and Is now 81
fective other orders may be eN-
pected 10 block any attempt at cam
paiRn Of this kind through railway
operation. The railroad owners must
fight their own fight against govern
ment ownership outside OF railway
operation ms long rs the railroads are
under federal control.
Director-General McAdoo has de-
ciared he will pay as a part OF operat-
ing cost whatever expenses may he
necessarily incurred by carriers in
making the valuation that is now
being made by the Interstate com
naerce commission. but that he will
not pay expenses incurred to test
the accuracy Of this valuation or 10
test the same before the commission
Ea