The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-10
What the Railroads Are Doing Under
Government Management and
What II Costs.

Director. General McADoo's report to
the President, as he himself virtually
states, settles nothing Of the question
about the success or the failure Of the
Governments operation of the rail-
roads, The whole thing is yet on
trial. The process of evolution and
revolution still continues. The future
is uncertain. even to mystery.
Taking the desperate situation as 1t
was thrust upon him, Mr.. McApoo
dealt with it powerfully and effec-
lively. He has made out Of the rail-
way system a great war machine; but
In many respects it Is n worse public
servant than before. 1t has cost us
fabulous sums. BY dismissing num-
bers Of the railway officers drawing
salaries of 5000 year or more, and
by cutting the pay Of others, his man.
agement has made saving in such
salaries Of some. $4,6OO,O00 year.
Expenses of the Law Department have
been reduced about 81, SOC, 900 a year.
But this amount-no more than petty
cash In the vast expenditures of the
railways-will be sucked up by the
never ceasing demands of the rank
and file of railway employees for
wage increase on top of wage increase,
rs great pump At to dry flooded
mines sucks up pint of water.
The Government saves $4,000, 900
year in the salaries of officers. But
the wage advances Of the general rail.
way labor already run up into the
hundreds Of millions. The total pay
roll of railway officers In excess Of
5000 a year amounts to $16,7OO,OOO
But the payrolls of the railway rank
and file total two and quarter BILL
ions year.
If Mr.. McADoo could wipe out every
penny OF salary paid to officers now,
receiving more than 5000 year, IL
he could cut every one Of them of the
payroll for. good and all, what would
that saved $18, 100000 look like COM
pared with mere 10 per cent. wage
increase on the So, 700, OO0, 900 payroll?
and, though that mere 10 per cent. In
crease would mean an added $780,
100000 as against the 100000 of
all officers receiving $1,000 year or
more put together, who is there that
dreams that, though they already
have had hundreds Of millions in ad-
vances, 10 per cent, or 20 per cent.
more is ever going to satisfy the rail-
way employees now under Govern
ment management, with their political
power rampant in every State in the
Union.
If, with stroke of the Director
Generals pen, the Government could
save some of the American railway
system from imminent bankruptcy by
decreeing Is per cent, % per cent.
traffic rate increases, can 1t go on
doing this every few months without
breaking the back of the public?
If, with stroke of the Dlrec-
tor-General's pen, the Government
could decree arbitrary routing, hith-
erto forbidden by the law; could de-
cree pooling, hitherto forbidden by
the law; could brush aside every re-
striction with which the private man.
agements had been strangled by the
Interstate Commerce Commission
v uis Government could do all that,
and did do 1t, 1t cannot do any of
1t again. Those things are now all
accomplished facts, with no further
financial or other benefits to be de.
rived from them. But the rank and
file of railway labor now exacting
some to and quarter billions a
year in wages can and will go on ex-
acting more ana more.
! Mr.. McADo0's head is too clear for