New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-29
II. II. Experience
In 1913 Argues for
Private Operation
Loss of S25O,OOO,OO0 and
Dissatisfaction ofRusiuess
Men Necessitate Prompt
Settlement, Observer Saws


Maaag'M9 Editor The Rallooy Age
n REAT BRITAIN, in taking over
~ the railways during the war,
left their direction in the hands
OF skilled railway executives, and guar
anteed financial returns on the basis Of
the year 1918. History will undoubt-
cdiy show that Great Brtain's rail
ways made better record during the
wax than did the railways of any other
nation.
Five days after the entry of the
United States into the war the railroad
executives voluntarily placed the roads
IN the hands of the Railroads War
Board. Although this board was in
charge only from April II to the end
OF the year, il made record which is
httle less than miraculous, considering
ehe then existing conditions The gov.
ornment gave no financial guaranteed
IS in the case Of Great Britain. and the
interstate Commerce Commission, look
ing backward rather than forward. re.
fused to grant any increase in freight
rates.
The government finally took over the
reads on December 20, 1917. This was
done principally for two reasons-.he
severe and continued freight congestion
on the Eastern seaboard due to lack Of
coordination on the part OF those issu-
ing priority orders and over which the
railroads had no control, and threat
cned financial disaster to the railroads.
What WAS Expected
When the President took control Of
the roads it was thought that fthe OPP
Grafton would be left in the hands Of
the railway executives and that gov
ernment control would make it possible
20 insist on coordination Of priority
orders; would relieve the roads of re-
strictivc and conflicting orders on the
part OF Federal and state regulating
authorities; would make possible unified
operation, which was not permitted by
| the Sherman law, and would protect the
! roads financially by means of the gov
! oTnment guarantee.
Director General McAdoo soon inGi-
Gated thaJ he proposed to run things in
his own way. Railroad executives and
the Interstate Commerce Commission
were pushed to ore side and the roads
were entirely reorganized along radical
lines-a mighty risky proceeding under
the stress OF war conditions.
Many favorable reports have been
given out during the year as 90 detail
savings under government control, but
the me- results for the year will show
that very little more traffic was handled
than during the preceding year, and at
2 net loss to the government Of about o
quarter Of billion dollars en- its guar
antec. That the public has not av-
preciated the service is indicated by
the fact that shippers and business men
generally are going on record for the
return Of tAe roads TO their owners as
quickly as possible. Director General
McAdoo in his letter TO the Senate and
house committees admitted that to con-
tinue 20 operate under present con-
dtions would be to invite failure, and
he asked for q five-year extension OF
government control to keep the roads
ont Of politics and to provide an oppor-
.unity TO prove that unified operation
could be made . success under peace
or normal conditions. II will, there
lore, be necessary FOR the President 20
call an extra session OF the new Con-
gross TO take the problem in hand. It's
Importance TO the country at largo viii
surely justify such action.
Fear of Politics
Director General McAdoo and many
others fear that politics is liable to
enter too greatly into the consideration
of the question. There is, OF course, &
certain amount Of danger in this direc-
ton, but 1t is we'll to realize that the
business and industrial interests have
awakened quite fully to the seriousness
of the situation and that they propose
to have a hand in the final settlement
OF the question.
The public, the stockholders and Sc
curity holders, the railroad employers
ana tHc railway heterogeneous nave All
got 30 be considered. Congress, as the
representative Of the people, must make
the necessary laws, but it must care
fully study the needs Of the various
groups involved. The great difficulty
will be to so adjust the measures as TO
give the public first and then each OF
the other groups The amount of cor
siaeyation 10 which they are justly en-
titled.
1t viii be exceedingly unfortunate Is
too much experimenting IS done-the
railroads and the public have had
enough Of this to last for a long time to
come. Federal Incorporation is OBJ
viously one of the first steps to be
+ol-an-+hic tn centralize contrO, elm