Arizona republican., 1918-12-14
The French and Their Railroads

Neither the railroad owners the public will favor the advice of Mir McAdoo for extension for five years of the governments direction of the rail- roads. Though the government has labored under many disadvantages and unusual conditions in the last year the people are pretty well convinced that it can not successfully operate, direct the operation of the railroads.
 It is on this point only that the public and the railroad probably be brought to agree After that they will sharply divide to any system of govern mental control that may be devised. The will want the greatest freedom possible and the people will want the government to be in position instantly to stop any abuse that may grow out of private management
 One of Alr. McAdoos reasons for continued gov ernment administration is'that the railroads may be kept out of politics Under any reasonable system of governmental control the roads may easily be kept out of politics. But under an interruptions national administration, of abnormal partisan tendencies railroads might be made dangerous political machine,
 That there should be a regional plan of dealing with the roads, as favored by President Wilson and all others who stand for continued Government di- rection. those who favor Q rigid government control lover the private direction of the roads will agree. There are many kinds, at least more than kind, Of regional plans, and do not have to cudgel brains to eselect good
 We have before the tested French system Of railroad control which has proved very successful We would be understood to say that the French or any other European roads may be compared with to efficiency and comfort, any kind of control or lack of control we have ever had. The French and all other systems of operation have been inferior to But the French system of govern mental control is admirable one, Before any railroads were constructed in France the government made its plans. It made surveys and locations Then it invited groups Of capitalists to build these roads. Each group was allotted region in which it granted a monopoly subject to the condition that other construction would be permitted if public necessity or convenience demanded it. The government reserved the right regulate both charges and services but it assumed no responsibility Accordingly it guaranteed the interest on bonds of the railroad companies in consequence of which they were floated at a very low rate In addition it guaran teed definite dividend on the stocks and provided that it should receive all profits above certain maxi mum.
 Thus, the French government provided in advance against wasteful competition and useless mileage It provided against excessive charges and profits bat still left scope private enterprise It reserved absolute right to experiment with the railroads as it might choose but it accepted the responsibility for such experimentation.
 It will be observed that certain features of the French system were adopted by national railroad administration and they and all other features to give the government absolute control, but not the direc-
 on, of operation, should be retained by the govern ment not merely for five years but for all time
 There some difficulties in the way of a sweep ing adoption of the French system. We shall have much to undo to make wholly applicable in the way of unvaterins the stocks of roads so as to have a just basis for guaranteeing dividends.
 But that done, the railroads will be taken permanently out of politics to be played either by the owners of them or by any national admnistra- ton which may be in power They would also be taken ouf the realm of speculation for Wall street would have incentive for the attempted manipula- ton of properties whose earnings are guaranteed and whose earnings could be increased.